US-Korea Begin FTA Negotiations -- This week the United States and Korea began negotiations on a free trade agreement (FTA) between the two countries. The goal is to complete the FTA by the end of the year. Contentious issues will be automobiles, rice and beef.

AG Groups Tell Administration No Further Cuts in WTO Negotiations -- A number of farm organizations sent a letter to President Bush indicating they would not support any administration proposal to offer additional reductions in domestic farm programs unless other countries agree to reduce their farm subsidies and tariffs. Regarding the WTO negotiations, the agriculture groups wrote, "Mr. President, we believe that it is important to make clear that American agriculture will not support any deeper cuts in domestic support than those already proposed by the administration. If negotiators are forced to scale back the level of ambition from the U.S. proposal on agricultural market access in order to reach an agreement, the level of ambition in cutting trade-distorting domestic support must be commensurately reduced from the U.S. proposal." The United States has proposed a 60 percent reduction in farm subsidies. Those signing the letter included the American Farm Bureau Federation, American Soybean Association, National Association of Wheat Growers, National Corn Growers Association, National Cotton Council, National Milk Producers Federation, and USA Rice Federation.

Ban Japanese Beef -- Senator Ben Nelson (D-NE) has introduced legislation (S. 3364) that would discontinue the importation of Japanese beef into the U.S. until Japan reopens its market to U.S. beef. Senator Nelson said, "My plan is very straightforward. Either Japan has to once again accept US beef, or we will no longer accept Japanese beef. This is about restoring fairness with regard to beef trade with Japan."

Incentives to Complete EQIP Practices - Deadline Extended -- USDA announced the deadline for completing environmental projects to qualify for the Environmental Quality Incentives Program (EQIP) energy cost assistance will be extended to September 1, 2006. Secretary of Agriculture Mike Johanns said, "Farmers and ranchers have put various conservation practices on hold because of the recent increases in the cost of energy. As part of our commitment to help mitigate the impact of high energy costs on agricultural producers, this cost adjustment and time extension will lessen the impact of energy prices on farmers and ranchers, while protecting our natural resources." The original deadline for completion of the EQIP projects was June 30 to receive incentive payments. For more information go to http://www.nrcs.usda.gov.