That's why Michigan fruit and vegetable growers are making a major departure from their traditional stance and preparing to ask Congress for inclusion in the next farm bill. Current U.S. farm policy will expire in 2002.

"In the past, the fruit and vegetable industry had taken somewhat of a noble attitude in its desire to get its money from the marketplace," said Nye. "But with today's problems in U.S. and international markets, the industry can no longer afford to do that, and it has made a pretty clear indication that it wants to be part of farm bill discussions and federal farm programs in the future.

"Growers are saying, 'We've got to have some help now and fairly fast, or we're going to have some real dramatic changes within specialty crop agriculture.' This is a pretty earth-shattering change in the opinion of these producers, but it's a reflection of the difficulties they're facing."

Nye said several factors are to blame for the fruit and vegetable industry's current economic state. Among the problems are flattened exports that are further weakened by a high-value U.S. dollar and a high concentration of domestic buyers, which has limited sale opportunities for small producers in particular.

According to the Michigan Agricultural Statistics Service (MASS), the production value of all Michigan vegetables totaled $178 million in 1999, down 3 percent from the previous year. And apples, the state's primary crop in the fruit arena, had a 1999 production value of $102 million, up from $83 million in 1998 but down from $120 million in 1995.

While federal aid accounts for about half of net farm income, little - if any - assistance goes to the fruit and vegetable industry. Most, Nye said, helps the food and feed grains industries.

With today's government programs free of requirements to reduce acreage and other burdens, fruit and vegetable producers believe now is the time to reconsider participation. "They're saying, 'We might as well be part of those types of programs because there are not the consequences like there used to be,'" said Nye.

Approved by MFB's board of directors and supported by existing MFB policies, the MFB Fruit and Vegetable Advisory Committee recommends the next farm bill include:

• Market loss assistance payments for all fruits and vegetables affected by import competition.
• An expanded and refined Adjusted Gross Revenue insurance program.
• Payments to help producers offset costs of complying with federal regulations, such as pesticide recordkeeping, conservation practices and employee housing.
• Disaster assistance based on realistic price and production levels.
• The elimination of payment caps or an increase in allowable maximum payments.

The approved recommendations will be presented this weekend in Yuma, Ariz., at the annual meeting of the American Farm Bureau Federation (AFBF) Horticultural Crop Advisory Committee.

"We think our plan has some real merits in terms of being progressive and positive, and we think it has items that are politically achievable. But, we'd like to see what the other states think," said Nye of sharing the ideas with the national committee.

Any recommendations of the national committee, he said, would go to the AFBF board of directors for approval. Nye said the MFB committee would like an "aggressive plan" ready by spring for congressional budget talks.

Without federal aid, the agriculture industry could see an escalated decline in the number of fruit and vegetable growers - a consequence that could have a domino effect on agribusiness suppliers and even the economies of individual communities. Nye said that's of particular concern in Michigan, which prides itself in having a diverse farm economy.

"In the past, we always thought that having a diversified industry was a true advantage," said Nye. "For instance, during the tough times for agriculture in the '80s, our diversity was a real boon to us. We saw the major commodity areas have some real difficulty, yet fruits and vegetables stayed relatively strong and helped Michigan get through some of those difficult times.

"Today, the situation has changed. We've seen a lot of combined factors that have reduced income for fruit and vegetable producers. When those same factors are applied to the major crops, such as corn or wheat, the difference is made up in terms of federal farm payments. But our specialty product growers have not gotten that same help. We're looking at a situation now, where if it continues, diversity is actually a disadvantage to individual producers and to the entire state."

Farm income and government aid
The U.S. Department of Agriculture (USDA) last week said farm income will fall about 10 percent this year without supplemental federal assistance. USDA predicted net farm income will drop to $41.3 billion this year, $4.1 billion less than 2000. The decline is attributed to the net effect of a $5.9-billion increase in value of the sector's output, an $8-billion decline in government payments, and a $1.9-billon rise in expenditures.

Net farm income grew to $45.4 billion in 2000, thanks to $8.9 billion in emergency assistance from Congress. In the 1990s, farm income annually averaged $45.3 billion. Last year marked the third consecutive year

For the past year, interested growers have tried to negotiate the acquisition with Michigan Sugar's parent company, Texas-based Imperial Sugar Co. Growers had hoped to finalize the deal for an undisclosed sum by March 31, 2001, but delays on Imperial's part have pushed that timeline to later in the spring.

A significant delay was the uncertainty of whether Imperial would file for bankruptcy - a question that left growers wondering whether they should leave sugar beets in this year's rotations, buy seed and so forth. Growers interested in buying a stake in the operation farm between 127,000 and 132,000 acres of sugar beets.

Imperial this month filed for Chapter 11 bankruptcy protection in a Delaware court. For the year ended Sept. 30, Imperial posted a loss of $34.7 million and a 5-percent decline in revenue. The company listed assets of $1.1 billion and liabilities of $775.1 million, including $456.4 million in debt.

"This bankruptcy was not surprising, it's just that we didn't know when it would happen. Now that it did, it allows the conversation to go on more openly," said Don Sutto, a Saginaw sugar beet grower who is a member of the Great Lakes Sugar Beet Growers Association and the Michigan Farm Bureau (MFB) board of directors.

The bankruptcy filing also provided some immediate relief for growers concerned about receiving payment on their 2000 crop, said Dick Leach, executive vice president of the Great Lakes Sugar Beet Growers Association.

"There certainly was a cloud that hung over the heads of growers about payments, but we've been assured that's been taken care of," he said. "Growers were assured by the court's approval that they will get the rest of their payments from the 2000 crop in the normal pay cycle."

Payment is important because sugar beets historically have provided Michigan farmers with profits above other mainstays, such as corn and soybeans. And with prices for those other commodities now slumped, keeping Michigan Sugar in business is more important than ever.

Imperial blamed its financial hardship partly on a lingering trend of low sugar prices on the world market. Leach said growers will evaluate Michigan Sugar's assets and determine what sugar price could earn a profit.

Sugar beet prices, he said, "are not where they were several years ago, but they've come back a couple cents from where they were six months ago. That's not great news, but people tell us it hit the low cycle, and may be coming back. At least they're headed in the right direction."

And having control over the end product should put more money in farmers' pockets, he said. "This would put growers in charge of their own destiny in Michigan," Leach said.

"By owning it, we're looking at 100 percent of the proceeds from selling sugar, pulp and molasses, instead of 53.5 percent, which is our present contract. We'll also share in the expenses, but we won't have to provide as great a return on the investment as a publicly-owned company has to do."

For now, though, Leach said growers are concentrating on what it will take to close the deal.

"There is a minimum number of acres at which the plan won't work, but the more acres we have, the easier it will be for everybody," he said. "There's also a maximum number that will provide more acres than can profitably be maintained. But the first concern will have to be that Michigan Sugar has to make its own payments."

"While the MLE flag will no longer be flying in Michigan, this should strengthen MLE's position in the livestock marketing and livestock financing arena," said Ernie Birchmeier, Michigan Farm Bureau dairy and livestock specialist. "It also should provide some long-term marketing stability for Michigan livestock producers."

According to a Southern States announcement, UPI of Columbus, Ohio, also will provide livestock credit services through UPI's subsidiary, Producers Credit Corp., and provide services to livestock producers from the Midwest to the Southeast.

Unlike Southern States which operates several agribusiness divisions, UPI's primary business is livestock marketing and credit services, said Ray Ramsey, director of livestock marketing for the farmer-owned Southern States cooperative.

Teaming Southern States' Richmond, Va.-based livestock marketing division with UPI, said Ramsey, should result in a "more efficient" business and a "more regional focus for our farmers."

"You only have one backroom shop, one accounting system and so forth instead of two," he said. "We felt this was in the best interest of our farmers to have those two marketing companies working together in tandem."

MLE customers probably will not notice any changes in day-to-day business as a result of the partnership, he said. "The two companies were very similar in their approach."

The agreement gives UPI an option to purchase Southern States' livestock marketing division, but Ramsey was unable to speculate on when that might occur if pursued.

Producers with questions or concerns about the alliance are encouraged to attend a leadership conference scheduled Feb. 24 in East Lansing, Ramsey said. The event takes place from 8 a.m. to 1 p.m. at Michigan State University's Kellogg Center. The meeting is open to any producer who has marketed through MLE within the past 12 months. Producers wishing to attend should make a reservation with their local MLE auction place.

"We're thrilled about giving out such a large amount of money this year," said Josh Merchant, Michigan FFA Foundation executive director.

"On behalf of the Michigan FFA Foundation and the Michigan Association of FFA, we're very excited to continue to promote agriculture and natural resources education and leadership initiatives and impact communities that might not otherwise have those opportunities."

Operated by the Michigan FFA Foundation, the Glassbrook FFA Endowment funds agriculture and natural resources education and leadership initiatives for traditional and non-traditional K-12 programs. Recipients range from rural and urban schools to county Farm Bureaus and local FFA chapters.

Nearly 40 applications were submitted for this year's giving. Awardees will receive the grants prior to the March 5-7 State FFA Convention.

A grant review committee appointed by the Michigan FFA Foundation board of directors selected recipients based on criteria, such as financial need, targeted population, and a program's uniqueness and sustainability. As well, the committee also gave strong consideration to proposals that teamed applicants with other organizations, Merchant said.

"Also, we look for programs that might not have another opportunity to promote agriculture and natural resources, especially those targeting youth who may not have a strong understanding or grasp of agriculture and natural resources," he said. "It's really nice for us to see programs that have a lot of impact and are hitting a diverse group of individuals."

Pauline Glassbrook, a former state employee for the Michigan FFA office and a longtime FFA supporter, established the endowment six years ago with a $100,000 donation. The Michigan Department of Agriculture in 1996 provided a $500,000 matching grant.

Grants are funded through interest earned on the endowment's balance. Merchant credits this year's giving to the generous contributions of FFA Foundation donors and supporters.

Recipient	Program	Amount	Contact
Baxter Community Center Wexford County	"Growing Together" Intergenerational gardening	$2,500	Virginia Brown (616) 691-7622
Durand High School Shiawassee County	Durand Agriscience & Natural Resources Wildlife Preserve	$2,200	Carrie Preston (517) 625-5559
Fowlerville Junior High School Livingston County	Butterfly garden	$3,245	Steve Vowles (517) 223-6216
Gladwin County Farm Bureau	Mobile "Red Barn Library" (Grades 1-6)	$800	Nancy Buzzell (517) 426-7202
Gladwin County 4-H/FFA Livestock Advisory Board	4-H/FFA learning kits	$600	Nancy Buzzell (517) 426-7202
Gunnisonville School Clinton County	Gunnisonville Garden Project	$2,100	Laurie Thorp (517) 349-4686
Hopkins FFA Chapter Allegan County	Nature trail identification posts and brochures	$760	Robert Brown (616) 672-5723
Ingham, Eaton, Clinton &Livingston County Farm Bureaus	Classroom materials for Project R.E.D.	$1,100	Ann Arensmeier (517) 349-0972
Kalamazoo Valley Community College	Careers in agriculture & natural resources (Grade 8)	$5,000	Brigette Leach (616) 746-4648
Kent County MSU Extension	Youth Land Use Learning Series implementation	$2,500	Kendra Gunter (616) 458-6805
Lenawee County Farm Bureau	Mobile "barn" for agricultural education displays	$2,580	Norman Emmons (517) 436-3534
Michigan 4-H Foundation Osceola County	Michigan 4-H Youth Conservation Council	$1,000	Andrea Grix (231) 829-3421
Michigan Farm Bureau Promotion & Education	Elementary Agriculture Unit Development (Grades 3-5)	$5,000	Deb Laurell (517) 323-7000
Montague High School Muskegon County	"Exploring Aquaculture Agriculture" lessons	$5,000	Kyle Fiebig (231) 894-2661
Ogemaw Conservation District Ogemaw County	5th-grade conservation/farm tour	$700	Karen Miller (517) 345-7153
Ogemaw County MSU Extension	"Grow With Our Garden" Horticulture & landscape plots	$4,730	Dan Janzen (517) 345-0692
Springport High School Alcona County	Carl Sharp Animal Research Center	$5,000	Patrick Henne (517) 857-3475
Unionville-Sebewaing Area FFA Huron County	"Planting for the Future" Plant propagation	$662	Leigh Fluegge (517) 883-2534

A federal judge in Michigan has granted a temporary restraining order preserving the national pork checkoff and preventing its termination until a preliminary injunction hearing is held Feb. 2.

The action is in response to a suit filed Jan.12 by the National Pork Producers Council, the Michigan Pork Producers Association and a group of independent pork producers. The plaintiffs' suit questions the manner in which the U.S. Department of Agriculture ran a September 2000 referendum on the checkoff and accuses USDA Secretary Dan Glickman of having no legal authority to call the referendum in the first place.

In January 2000, Glickman said a petition drive calling for the referendum fell short of obtaining the required number of signatures.

A month later, however, he called the referendum himself. The vote produced 15,951 ballots favoring the checkoff's termination and 14,396 opposed.

The program generated about $50 million annually for hog research, pork promotion, and farmer and consumer education.

Contact: Ernie Birchmeier, (800) 292-2680, ext. 2024.

The settlement agreed to by the Natural Resources Defense Council and EPA "would allow EPA to bypass many of the procedural steps needed to ensure that decisions on pesticide registrations are based on science, not politics," AFBF President Bob Stallman said.

In 1999, AFBF, the American Crop Protection Association and other industry groups sued EPA, claiming the agency used of FQPA, claiming the agency failed to meet deadlines in regulating specific classes of chemicals.

"It is unfortunate, but telling, that EPA has chosen to selectively settle just one of the FQPA lawsuits," said Stallman.

"We have made several reasonable attempts to settle our suit almost from the beginning but have gotten nowhere."

Contact: Ken Nye, (800) 292-2680, ext. 2020

Michigan Farm Bureau and other state agricultural leaders want the same and had the need driven home during last November's agricultural trade mission to Cuba.

Powell said the country's use of embargoes and other sanctions "shows a degree of American hubris and arrogance that may not, at the end of the day, serve our interest all that well." Powell, during his confirmation hearing, urged Congress to consult him before any new sanctions are approved.

About 75 of the world's 193 nations are currently subject to some form of U.S. sanctions. Cuban officials told a delegation of Michigan farmers looking to expand the state's dry edible bean exports not to expect any additional export business to the country until Congress delivers on additional reforms to remove travel and financial restrictions.

Contact: Wayne Wood, (800) 292-2680, ext. 6553

EPA approved StarLink for commercial use in May 1998, but restricted it for non-food uses only. StarLink, an insect-resistant grain, came under fire last summer, when traces of the genetically modified organism (GMO) were found in taco shells, prompting recalls of 300 corn-based foods and rallying consumer groups opposed to GMOs.

Also, Aventis has agreed to a four-year agreement with 17 states, requiring the company to pay corn growers up to 25 cents per bushel for tainted corn and reimburse them for other losses. The deal does not prevent farmers or others from suing the company. The cost to Aventis is expected to range from $100 million to $1 billion. States signing the deal were Iowa, Alabama, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Minnesota, Mississippi, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota and Wisconsin.

Meanwhile, Japan's Health Ministry said that for the third time in about a month it has found traces of StarLink in one of five samples of U.S. corn destined for food use in Japan, despite the sample testing negative by U.S. officials.

Contact: Bob Boehm, (800) 292-2680, ext. 2023

Representatives with Vector Tobacco are looking for a few farmers in Southern Illinois to grow a biotech variety of burley tobacco low in nicotine. The product is said to be for "people who may be trying to get off cigarettes - who may want to have a cigarette when they go out for drink, but don't want the addictive part of cigarettes. Officials with Vector Tobacco, the nation's fifth largest tobacco company, said that each of the 10 to 15 farms selected for the project will be about 10 acres in size and will produce up to 2,500 pounds per acre of the biotech tobacco variety.

Shrimp farming in the desert? It's happening in the middle of the desert near Gila Bend, Ariz. Desert Sweet Shrimp is an expansion of Wood Brothers Farm, which produces irrigated cotton, olives, wheat and other crops on more than 1,000 acres. The farm is now irrigating the land with shrimp effluent containing about 25 pounds of nitrogen fertilizer per acre-foot of water. The Furrow magazine reports the practice is free fertilizer for the crops but also good for the shrimp, which do better in well water than ocean water.

Food packaging is a constantly evolving business, and milk packaging is no exception. In 1884, dairy plants started using glass bottles to store milk. Before that, jars, pails and cans were used. The first paper milk carton was used in 1906. Plastic milk jugs were introduced in 1964.

Americans get far more vitamin C from oranges and their juice than from any other food. But the following contain at least as much vitamin C as an orange: one cup of strawberries, one green bell pepper (red and yellow bell peppers contain more), one kiwi fruit, or one cup of cooked broccoli, cauliflower or brussel sprouts.