Chinese 2011 corn production may be overestimated by its government by as much as 14%, and may lead to increased corn demand by that nation from a world market already struggling to deal with severe drought in South America and the lowest U.S. stocks in 16 years, according to a Reuters news service investigation published this week. The wire service said Chinese corn imports are likely to increase, along with wheat imports to backstop corn supplies unavailable or priced too high for China's feed and food purposes.  

China's National Bureau of Statistics said that nation produced a record corn crop in 2011 of 191.8 million metric tonnes, but Reuters cites private analysts and other ag sources both in and outside of China who are skeptical of the government figure, figuring the estimate is overstated by 6.8-24 million tonnes. USDA says the Chinese record corn crop and about 4 million tonnes in imports will meet China's domestic demand, but competition between the government and private corn processors for available supplies is already pushing prices higher, Reuters said, adding that two weeks ago China purchased 120,000 tonnes of corn, its first since harvest was completed in 2011. An Australian market analyst is quoted by Reuters: "We see a year-on-year increase in corn imports, just as we did with soybean imports."

In an effort to explain agency policies on confined animal feeding operations (CAFOs), EPA announced it will hold a March 13 public meeting in West Point, NE, for livestock producers in Region 7. The meeting is part of EPA's enhanced "national emphasis" on preventing CAFOs from polluting streams and rivers through runoff, and Region 7 has been a target for the agency since it includes heavy cattle production areas in Iowa, Nebraska, Kansas and Missouri. The focus of the meeting will be to explain the importance of EPA inspections, along with aerial overflights to assess CAFOs, winter feeding areas, manure stockpiling and nutrient management plans. Details of the meeting can be found at www.epa.gov.

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Calling for an "all-of-the-above" energy plan, House Agriculture Committee Chair Frank Lucas (R, OK) this week challenged President Obama to join House Republicans in pushing for a national energy policy that reduces costs for farmers and ranchers, creates jobs and works to ensure U.S. energy security. Lucas chided Obama for talking about a program, but offering no specifics or "new solutions." Lucas pointed out how energy-dependent agriculture and ag processing are, citing rising costs of machinery fuels, heating oil, fertilizer, petrochemicals and seed, as well as the energy cost of planting, harvesting, processing and transporting production. Lucas took a shot at the Administration's rejection of the Keystone Pipeline from Canada, as well as decisions to restrict energy exploration.

Nearly $20 million is available through USDA disaster assistance to communities ravaged by flooding, drought and other natural disasters, Secretary of Agriculture Tom Vilsack announced this week. The new monies come on the heels of $215 million already distributed to 26 states to assist in disaster recovery. The dollars are partnership money; USDA pays 75% of the cost of reconstruction while a local or state government pays the remaining 25%, Vilsack said. Projects include clearing clogged waterways, reseeding burned or eroded areas, and in some cases, purchasing floodplain easements on eligible land.

Faced with a looming March 31 expiration date, the House surrendered this week on voting on its own highway bill, despite the House Transportation & Infrastructure Committee's approval of a five-year, $260-billion package. Instead, House Speaker John Boehner (R, OH) signaled he will accept the Senate's version of the federal highway/urban commuter program spending package. Boehner had earlier given his GOP caucus a choice: Vote for a modified five-year House package many in the House oppose, or accept the Senate's $109-billion two-year bill. Budget hawks in the House oppose the committee-passed bill because it requires Treasury funding for at least a portion of the program rewrites, but leaders continue to try and fix the bill to make it politically palatable so the House can send its own version of the highway reauthorization bill to conference.  

One option was for the House to pass a short-term extension of current programs to allow itself the time to cut a deal. However, the Senate, having reached an agreement this week allowing 30 amendments to its highway package, and targeting March 13 for final passage, is unlikely to go along with the move. Among the amendments the Senate rejected this week was a series of changes aimed at curbing gas price increases; an amendment by Sen. Susan Collins (R, ME) to curb EPA regulatory authority on boiler emissions, and separate amendments to approve the Keystone pipeline and ban export of oil brought down from Canada via the pipeline. Pending is an amendment by Sen. Debbie Stabenow (D, MI) to extend several energy tax breaks, including those for biodiesel.