U.S. Department of Agriculture’s Natural Resources Conservation Service Chief Dave White says proposals for conservation projects addressing water quality and wetland conservation in the Mississippi River Basin are due by March 19, 2012. Accepted projects would support conservation efforts already underway on agricultural operations in the basin, improve the overall health of the Mississippi River and help reduce hypoxia in the Gulf of Mexico.

Through this request for proposals, NRCS is providing up to 37-million dollars in new financial assistance through the Mississippi River Basin Healthy Watersheds Initiative,  for projects in 54 priority watersheds in Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Ohio, South Dakota, Tennessee and Wisconsin.

These projects will compliment actions to be carried out through the new Gulf of Mexico Initiative, an effort that focuses up to 50-million dollars in conservation assistance over three years to farmers and ranchers in priority areas along seven major rivers that drain into the Gulf.  

The U.S. Food and Drug Administration has issued an order that prohibits certain uses of the cephalosporin class of antimicrobial drugs in cattle, swine, chickens and turkeys effective April 5, 2012. FDA says it is taking this action to preserve the effectiveness of these drugs for treating disease in humans. Cephalosporins are commonly used in humans to treat pneumonia as well as to treat skin and soft tissue infections. Alternative drugs are not as effective or have greater side effects.  

Antibiotic injections into unhatched chicken eggs are among uses prohibited by the order. FDA spokeswoman Siobhan DeLancey says the antimicrobial drugs can only be used to treat animal illnesses – under specific conditions, –  and can’t be used for disease prevention. The ruling leaves untouched an older type of cephalosporin called cephapirin that FDA says is unlikely to fuel antibiotic resistance.

American Veterinary Medical Association official René Carlson is calling  for caution in placing restrictions on antibiotic use in food animals. Carlson points out, – to restrict certain uses of antibiotics without careful consideration of the risks and benefits to both humans and animals removes a very valuable tool in the veterinarian’s medical bag for preventing and minimizing animal disease and suffering while also ensuring a safe and wholesome food supply.

The Environmental Protection Agency is proposing action to identify additional qualifying renewable fuel pathways under the Renewable Fuel Standard Program. This proposed rule describes EPA’s evaluation of biofuels produced from camelina oil, energy cane, giant reed, and napiergrass; it also includes an evaluation of renewable gasoline and renewable gasoline blendstocks, as well as biodiesel from esterification, and clarifies the definition of renewable diesel.

The EPA says we have published a direct final rule that describes our rationale for identifying these additional fuel pathways, including GHG lifecycle analyses, in the “Rules and Regulations” section of this Federal Register because we view this as a noncontroversial action and anticipate no adverse comment. Written comments must be received by February 6, 2012. A request for a public hearing must be received by January 20, 2012.

Part of the proposed rule approves camelina oil as a feedstock under the Renewable Fuel Standard. Anne Steckel, vice president of federal affairs at the National Biodiesel Board, says – we’re pleased to see the EPA recognizing camelina as yet another feedstock that meets the agency’s standards as an Advanced Biofuel. The EPA’s proposal shows that biodiesel produced from camelina oil reduces greenhouse gas emissions by at least 50 percent compared with diesel fuel.

When it comes to big gainers, milk outgained gold, oil and other more popular futures contracts in 2011. Milk futures rose about 35.7 percent in price in 2011 to close at 18.77 cents per pound. That compares to an 11.7 percent rise in the price of gold and a 10 percent rise in crude oil prices. According to CNN, – it also blows away the more modest gains of the higher profile food futures, like pork bellies, corn and coffee.

However, the milk futures price doesn’t represent that gallon of milk consumers purchase at their grocery store. Instead, it represents a class of milk that is typically powdered or condensed and used in production of other products such as cheese. Milk futures cover just a little more than half of the 195-billion pounds of milk produced in the United States annually.

The Consumer Price Index shows a 9.8-pecent rise in the price of the liquid milk consumer purchased over the12 months ending in Novembe

According to the American Farm Bureau Federation’s latest Marketbasket Survey – consumers paid a little bit less for groceries in the fourth quarter of 2011. The informal survey shows a seven-percent decrease to 49-dollars and 23-cents from the third quarter survey of the total cost of 16 basic grocery items. Still – that’s an increase of five-percent when compared to one year ago.

Farm Bureau Senior Economist John Anderson notes the trend of higher prices quarter-to-quarter on a broad range of marketbasket items that started the last quarter of 2010 appears to have reversed – suggeting that food price inflation is slowing down substantially.

About half of the quarter-to-quarter decrease is attributed to meat and dairy products. Prices for sliced deli ham, shredded cheddar, bacon, sirloin tip roast, ground chuck and boneless chicken breasts all decreased. Russet potatoes, Red Delicious apples, flour, vegetable oil, bagged salad, orange juice and toasted oat cereal also went down in price. Of the items included in Farm Bureau’s survey – only milk and bread increased in price.

While retail grocery prices have increased gradually over time – Farm Bureau notes the share of the average food dollar that America’s farm and ranch families receive has dropped. Anderson says farmers – on average – received about one-third of consumer retail food expenditures for food eaten at home and away from home in the mid 70s. That figure now stands at about 16-percent.

Fifty-three volunteer shoppers in 18 states took part in Farm Bureau’s Marketbasket Survey for the fourth quarter. It was conducted late October-early November.

Jose Graziano da Silva, Brazil’s former food security minister, has taken over as director-general of the Rome-based Food and Agriculture Organization.  He says the organization’s top priority will be to make good on the agency’s mandate: eradicate world hunger.  Still Silva expects food prices will stay volatile this year and more people around the world will go hungry.

Meanwhile, Purdue University Agricultural Economist Chris Hurt says U.S. hog producers – remain cautious about their future. Hurt notes, this is evidenced by the modest expansion of the breeding herd as reported by USDA at the end of the year. Hurt says modest expansion is a – prudent path to take – until more is known about 2012 crop yields and feed prices.

U.S. exports are expected to remain strong as pork production is expected to rise by 2 to 2.5 percent in 2012. Hurt expects another year of profitability as demand should remain favorable for pork. Current forecasts are for 2012 live hog prices to average about 65-dollars. Costs of production this year are expected to be similar to 2011. However, 2011 profits of around 15-dollars per head are expected to drop to about 10-dollars per head this year.

American Farm Bureau members will be asked to reconsider the organization’s position on several issues expected to be addressed in the next farm bill when the organization begins its annual meeting in Hawaii this Sunday. According to DTN Ag Policy Editor Chris Clayton, – Farm Bureau’s present position went largely against the grain, – when the Super Committee failed to get a deal done in November.

Revenue loss is a top issue already being discussed. According to Clayton, – traditionally, farm programs help farmers with the catastrophic or ‘deep losses’ and farmers buy crop insurance to cover losses for commercial-size producers. Farm Bureau leaders argue that the federal government should help with the steep losses but producers should manage the shallow losses.

Farm Bureau President Bob Stallman says – we think that moving forward with the Systemic Risk Reduction Program is the way to go in terms of our future farm policy. Stallman says – it’s scalable, it’s a lot simpler and not as complex for administration, it has the opportunity to be consistent across all commodities.

District Court Judge Naomi Buchwald will hear oral arguments on January 31^st in the case of the Organic Seed Growers and Trade Association VS Monsanto.  Buchwald serves the Southern District of New York and will decide on Monsanto’s motion to dismiss the Association’s case. The landmark lawsuit, filed in March 2011, challenges the validity of Monsanto’s transgenic/GMO patents and seeks court protection for family farmers who may become contaminated by Monsanto seed.

Jim Gerritsen, President of lead plaintiff, OSGATA, says – last August we submitted our written rebuttal and it made clear that Monsanto’s motion was without merit. Our legal team, from the Public Patent Foundation, is looking forward to orally presenting our position. Gerritsen adds – we are anxious that this case go to trial as soon as possible so that our innocent farmers may receive Court protection.

The 83 family farmers, small and family owned seed businesses, and agricultural organizations comprising the organic plaintiff group represent over 300-thousand individuals.