The long anticipated ruling on the revised Country of Origin regulations put in place in May 2013 by the Obama Administration has been released by the World Trade Organization- and as critics of the COOL Rule were predicting- the trade body has sided with Canada and Mexico in saying that this move by the US government to fix the original COOL rule fails to address the discrimination against Mexican and Canadian Cattlemen.


Specifically, the WTO has said in their Monday morning ruling "In particular, the compliance panel concluded that the amended COOL measure increases the original COOL measure's detrimental impact on the competitive opportunities of imported livestock in the US market, because it necessitates increased segregation of meat and livestock according to origin; entails a higher record keeping burden; and increases the original COOL measure's incentive to choose domestic over imported livestock."


The WTO says in separate statements that both Mexico and Canada have been harmed economically by the US rule because " it accords imported Canadian livestock treatment less favorable than that accorded to like domestic livestock, in particular because the amended COOL measure increases the original COOL measure's detrimental impact on the competitive opportunities of imported Canadian livestock." (put Mexican in place of Canadian for the statement about harm to Mexico.)  

Click here to read more reaction from Canada as well as the National Cattlemen's Beef Association and US Cattlemen's Association.  

Mixed Reaction Over WTO Panel Ruling Over Country of Origin Labeling

Chairman of the House Ag Committee, Oklahoma Congressman Frank Lucas said in a statement:  "Today's announced decision by a WTO compliance panel underscores what many have known for some time," Lucas said.  "The United States mandatory country-of-origin labeling law for beef, pork, and chicken is a failed experiment. It is time for the Administration to put this case behind us by exercising leadership in order to achieve a lasting compromise that is satisfactory for our producers, processors, retailers, consumers and our trading partners."  

U.S. Senator Debbie Stabenow, Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry issued the following statement.  "The World Trade Organization has once again ruled that consumers have a right to know where their food comes from," said Stabenow. "We can spend decades litigating this issue at the WTO, or we can work together to find a solution that encourages international trade and gives consumers what they need to make choices for their families."   Click here for more from Senator Stabenow.

American Farm Bureau Federation President Bob Stallman said in a statement:  "Americans prefer to buy food products that they know were grown and raised by America's farmers and ranchers, and AFBF supports a country-of-origin labeling program that conforms to appropriate parameters and meets WTO requirements," Stallman said.  "A World Trade Organization compliance panel ruling that U.S. COOL regulations are not in compliance with previous WTO decisions means that there must be further work to craft an accepted COOL program."  Click here to read more from AFBF.

R-CALF USA CEO Bill Bullard responded by saying, "While we will be reviewing this lengthy decision to determine what, if any, additional modifications should be made to COOL, we urge the United States to exercise its right to appeal this decision and we fully expect that this dispute over COOL will continue at the WTO for many more months if not years," Bullard said.  Click here for more from R-CALF.

American Soybean Association President Ray Gaesser has called on USDA Secretary Vilsack to suspend COOL immediately adding  "mandatory country of origin labeling in its current state is an unworkable burden on soybean farmers' largest customers-the animal agriculture industry," Gaesser said.  Click here for more from ASA.    

NCBA's Colin Woodall Expects US to Appeal Latest WTO Ruling Against COOL- and to Lose Again

Veteran Cattle Industry Lobbyist Colin Woodall told me yesterday morning that his group fully expects the Obama Administration will appeal this latest decision from the Dispute Panel. He says he believes that they have too much invested in the current rule that has been in place since last May to not exhaust all appeals and drag out the final step in the WTO process, which would be retaliations by both Canada and Mexico.

We also talked about how Congress needs to respond- that NCBA is looking for repeal and then hopefully a market based voluntary program to let consumers know where their meat comes from- if that information is of value to them.

Woodall is our guest today on the Beef Buzz- and you can hear our visit with him by clicking or tapping here- you can also read more about the Dispute Panel ruling in our webstory that goes with the audio.  

Cotton harvest has gotten underway in Oklahoma. In the latest crop progress report from the US Department of Agriculture reports seven percent of the crop was harvested. Corn harvest reached 76 percent complete, sorghum was at 92 percent, peanuts were 54 percent dug by Sunday and soybeans were 22 percent harvested.

Winter wheat seeding was 84 percent complete. Emerging wheat jumped 14 points in the past week to 66 percent which was ahead of the five year average of 54. Farmers in central Oklahoma are reporting increased armyworm infestations. Rye seeding was 85 percent done and oat planting was 70 percent complete. Seventy percent of the canola crop has emerged.  Click here for the full Oklahoma report.

Fall wheat seeding and harvest were in full force in Kansas this past week. Corn harvest reached 66 percent, equal to last year but behind average of 75. Sorghum harvest was 25 percent complete, behind last year and average. Soybean harvest was 31 percent complete, well behind 58 last year and 57 average. Cotton harvest got started with two percent of the crop picked.  Wheat planting was 78 percent complete, behind last year and the five-year average. Wheat emergence was on track with average with 58 percent emerged.  Click here for the full Kansas report. 

Nation's Corn Harvest Progressing- But WAY Behind Five Year Average

The nation's corn harvest continues to be behind normal. The latest US Department of Agriculture report has corn harvest 31 percent complete. That's slightly behind last year, but 22 points behind the five year average of 53.  Crop quality remained unchanged this week versus last at 74 percent rated good to excellent.

"While farmers are eager to get into their fields, wet conditions have made it difficult to do so in many areas," said National Corn Growers Association President Chip Bowling, a farmer in Maryland. "Harvest may run later than normal this year, but it still looks like we will break corn production records when it does come to an end. While we work tirelessly in our combines, we must also work to grow markets and to ensure we have the robust infrastructure necessary to move our crop so that farming remains profitable for the hardworking men and women in rural America."

Progress fell an additional three points behind average over the previous week, with the gap now a full 22 points. Iowa, Minnesota and North Dakota have seen the least harvest progress with all three states lagging 30 or more points behind the five-year average.  

Soybean harvest remains behind last year and the five year average of 66 with harvest reaching 53 percent complete nationally.

Cotton harvest was underway across all 15 states with 29 percent of the crop harvested. That's close to the five year average of 31. Overall maturity was slightly behind average.

For the full USDA report, click here. 

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow/Calf Corner newsletter


The price of 475 pound, Medium and Large Number 1 steers in Oklahoma have averaged $281.81/cwt. the past six weeks. This includes the latest weekly average price of $294.80/cwt at the seven federally reported auctions in the state. This price compares to an average of $183.15/cwt. in late September and early October one year ago (no price reported in much of October 2013 due to federal government shutdown). Prices this fall are up almost $100/cwt. or 54 percent over last year. So far this fall, prices have shown no seasonal tendency to decrease from September to October and, in fact, the most recent price is the highest in the six week average.


Cow-calf producers will sell weaned calves this fall for record revenues by a large margin (revenues are up $500-$550 per head over last year) and will, in the majority of situations, receive record profits, at least on a per head basis. In some drought areas, total ranch profits may not be up as much due to reduced due to reduced animal numbers. The market is begging for animal numbers so selling calves at weaning is a very profitable strategy now. 

Right now there is a lot of volatility in the market.  Click here to read more as Peel explains all of the external factors that could impact beef markets this fall and if it makes sense to retain ownership of calves.

Oklahoma State University Ag Economist Dr. Jayson Lusk has written an extensive defense of transgenic breeding of plants- the result otherwise known as GMOs. His article, entitled In Defense of Frankenfoods, has been published in the Fourth Quarter 2014 edition of the Milken Institute Review. Dr. Lusk begins the article by pointing out that US farmers adopted GMO technology faster than any other technology in recent memory- "More than a quarter of American farmers snatched up seeds for genetically engineered soybeans, corn and cotton (the source of cottonseed oil) within three years of their commercialization. By contrast, it took more than 13 years after the cellphone was available for a quarter of Americans to own one, and 26 years after the widespread availability of TV for it to achieve that same feat. Last year, 90 percent of corn and cotton acreage was planted with a genetically engineered variety; at 94 percent, soybeans managed even greater market penetration."


Dr. Lusk goes on to say that it is most accurate to call these crops "genetically engineered" rather than genetically modified- as nature has been modifying the genetics of crops and animals for centuries.


"While it is possible to be pro-biotechnology without being pro-Monsanto, such a nuanced position is difficult to maintain in the current atmosphere. It seems that many suffer from what might be called Monsanto Derangement Syndrome, buying into all sorts of conspiracy theories. Yet genetically engineered foods are no more synonymous with Monsanto than hamburgers are with McDonald's. When anti-Monsanto became de facto anti-biotechnology, many left-leaning commentators chose to swim with the tide. Thus emerged a (justifiable) belief that many on the left were anti-science on the issue of biotechnology. In the words of journalist Keith Kloor (writing for Slate), opponents of genetically engineered food "are the climate skeptics of the left." Although there is some truth to this observation, the political reality is more complex."  

Click here to read more of Dr. Lusk's defense of genetically engineered crops. It's 12 pages and is really an excellent rebuttal of those who want to pull agriculture backwards by fifty years or more.