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Business news and notes Tuesday, November 21, 2006
BASF Corp. pays $62 million judgment
MINNEAPOLIS -- BASF Corp. will pay a $62 million judgment this week, finally resolving a class-action lawsuit that accused the chemical company of defrauding farmers through its marketing of herbicides, a company spokesman said Monday.
Farmers who bought Poast herbicide from 1992 to 1996 are eligible to share in the judgment. Douglas Nill, an attorney for the plaintiffs, estimated that several thousand farmers are eligible, and said he hopes the money can be distributed to them within the next six months.
The U.S. Supreme Court last week declined to consider Florham Park, N.J.-based BASF Corp.'s appeal of a decision in March by the Minnesota Supreme Court that reaffirmed the judgment, which was handed up by a Norman County jury in 2001, thus ending a long legal battle that included several appeals.
"While we are disappointed by the Supreme Court decision not to review the case further, we will abide by the judgment," BASF spokesman Mark Stephenson said.
BASF will pay the $62 million into an account set up by the plaintiffs' lawyers, Stephenson said.
USDA admits making improper payments
WASHINGTON -- The Agriculture Department last week acknowledged making improper payments to farmers worth more than $2.8 billion last year.
Officials explained that most of the payments involved missing or incomplete paperwork.
"We take this very seriously," said Chuck Christopherson, the department's chief financial officer. "We know this is something that we can address and that we can fix."
Federal law requires agencies to track erroneous payments, such as checks sent to farmers who were not eligible for a particular program, or payments for the wrong amount of money.
The amount of improper payments in fiscal 2006 was about 11 percent of farm program payments, the department said. The fiscal year ended on Sept. 30.
Cargill expanding its presence in Russia
MOSCOW -- Cargill has started construction of an animal feed mill at its Efremov site in the Tula region of Russia.
The mill is part of a $10 million investment in the production facility. Production is expected to start in 2007 with a capacity of 250,000 metric tons per year of feed.
Cargill acquired the Efremov corn sweeteners plant in 1995. In recent years, the company has developed the site by investing in a malt plant.
The mill will employ 30 locally-hired staff, including a sales and marketing team.
Pork council praises trade deal with Russia
WASHIINGTON -- The National Pork Producers Council last week praised the bilateral trade deal reached Nov. 10 between the United States and the Russian Federation concerning Russia's accession to the World Trade Organization.
The agreement will give U.S. pork producers even more access to Russia, which in September 2003 reached agreement on a country-specific quota for U.S. pork that allowed some access to its market.
The so-called down payment has allowed U.S. pork exports to Russia to increase from $8 million in 2003 to $72.2 million in 2005, making the country the sixth-largest export destination for U.S. pork and pork products.
USDA provides $200 million for trade
KANSAS CITY -- The USDA has provided $200 million to 67 U.S. trade organizations to promote agricultural products overseas.
Once final numbers are tallied, U.S. agricultural exports for fiscal year 2006 are expected to be $68 billion, up from the previous record of $62.5 billion last year.
Fiscal year 2007 exports are expected to reach $72 billion, which would be a record.
The fiscal year 2006 allocations will be administered under the Foreign Agricultural Service's Market Access Program.
Wholesale inflation down in October
WASHINGTON -- Inflation at the wholesale level plunged at a record pace in October, led by big declines in the price of gasoline and new cars.
Wholesale prices fell 1.6 percent last month, tying the record decline set in October 2001, the Labor Department reported Tuesday. It was the second consecutive big decrease, following a 1.3 percent fall in September.
Both months were heavily influenced by falling energy prices. But underlying inflation pressures were held at bay last month as well. Core inflation, which excludes energy and food, dropped by 0.9 percent, the biggest one-month fall in 13 years. That reflected big declines in prices for new cars and sport utility vehicles as dealers brought back sales incentives.
In other economic news, retail sales dropped by 0.2 percent in October, the second consecutive monthly decline following a 0.8 percent fall in September. Much of the weakness reflected falling gasoline prices, which pushed sales at service stations down by 0.6 percent in October.
Stika will lead Certified Angus Beef
LOUISVILLE -- John Stika of Creston, Ohio, has been named president of Certified Angus Beef by its board of directors.
The board appointed him Nov. 11 during the American Angus Association's annual convention held in Louisville.
"I look forward to working with our licensees, producers and staff along the same successful path that has maximized CAB product quality and integrity since 1978,'' Stika said. "The demand for CAB products will continue to grow.''
Study: Biodiesel good for the economy
A recent study by the National Biodiesel Board found that biodiesel significantly contributes to the economies of both Iowa and the United States.
It's estimated that biodiesel production will create more than 39,000 new jobs by 2015 and $13.6 billion that would have been spent on foreign oil will remain in the United States.
The biodiesel industry will also have a positive influence on farm prices.
The added demand for soybean oil to produce biodiesel will increase the need for soybeans and raise soybean prices and revenue for growers. A study by the United States Department of Agriculture shows that every 50 million gallons of biodiesel raises soybean prices 1 percent. |
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