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Cattlemen's Capitol Concerns Archive
Contact:
Bethany Shively,
The Cattlemen's Capitol Concerns (CCC) is a weekly report from Washington, D.C., giving an up-to-date summary of top policy initiatives concerning the cattle industry; direct from the National Cattlemen's Beef Association (NCBA). Please feel free to reprint in full or in part. If you would like to include NCBA's logo, contact us at 303-694-0305. | |
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NCBA Asks Administration to Oppose Increase in Ethanol Blend Percentage
On Tuesday, the National Cattlemen's Beef Association (NCBA) sent a letter to members of President Obama's Cabinet opposing an increase in the ethanol blend percentage for gasoline.
The letter was sent to Secretary of Energy Steven Chu, Secretary of Agriculture Tom Vilsack, Environmental Protection Agency (EPA) Administrator Lisa Jackson, and Assistant to the President for Energy and Climate Change Carol Browner.
The blend percentage is currently set at 10%, which is causing significantly more competition for corn and driving up feed costs for cattle producers.
The text of the letter follows:
"Dear Secretary Chu, Secretary Vilsack, Administrator Jackson and Ms. Browner,
"The National Cattlemen's Beef Association (NCBA) and its members urge you to oppose any administrative or legislative efforts to increase the amount of ethanol permitted to be blended with gasoline. Before the Administration or Congress proposes an increase in the ethanol blend percentage, a comprehensive assessment needs to address how such an increase will impact the market and if production will be able to accommodate a higher blend percentage.
"As you know, current corn-based ethanol production is capped at 15 billion gallons, which is the equivalent of 10% of the U.S. projected gasoline market. Increasing the blend percentage to 15% would mean the immediate addition of 4.5 billion gallons of ethanol, and would require an extra 1.6 billion bushels of corn. Based on 2008 yields, to reach this level an additional 10.4 million acres of corn would need to be planted.
"Corn ethanol production is significant to the cattle industry because of its impact on feed grain prices. Since January of 2008, cattle feeders have lost a record $4.3 billion in equity because of high feed costs. The additional 1.6 billion bushels of additional corn needed for an E15 blend percentage is equivalent to the entire amount of corn the cattle industry utilizes in one year.
"Cattle producers support energy independence and the development of the renewable fuels industry. However, this energy commitment has created opportunities and challenges for agricultural producers. NCBA's members continue to advocate for a market-based approach when building any industry. The marketplace offers many adequate risk management tools, which when combined with good business practices, help build a competitive and strong industry. Cattle producers do not support government interventions via subsidies and mandates; these practices disrupt the market and are never substitutes for good business practices."
Going along with this commitment, earlier this week, NCBA Senior Vice President Burton Eller served as a responder at the 25x '25 Renewable Energy Summit, a meeting between farm, ranch, livestock, conservation, wildlife, and forestry leaders; state alliance leaders; environmental leaders; renewable energy industry representatives; and congressional staff and federal agency representatives supporting the goal of meeting 25% of U.S. energy needs with renewable sources by 2025. Eller reiterated the importance of using a market-based approach to drive renewable energy development, and ensuring that the necessary technology is in place before moving forward with renewable energy mandates, including changes to the ethanol blend percentage.
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NCBA Continues to Push for Delay of Enhanced Feed Ban Rule
NCBA continues to urge the Food and Drug Administration (FDA) to delay implementation of the "Enhanced Feed Ban." As the April 27 implementation date quickly approaches, we are growing increasingly concerned that the FDA will move forward despite requests from Congress and industry that the rule be put on hold until serious outstanding concerns are addressed.
NCBA producers are already suffering negative consequences of this rule months before it goes into effect. Beginning as early as December 2008, many renderers discontinued picking up dead livestock because of the severe economic realities of this proposal. For several months, NCBA has received numerous reports of producers having difficulty in getting dead animals picked up, and if they are able to find pick-up services, the prices charged by the haulers and renderers is significantly higher than it ever has been.
Since 1997, the U.S. has prohibited ruminant feed from including parts of other ruminants. This proactive "ruminant to ruminant" feed ban, combined with other government and industry safeguards, has proven to be highly successful in preventing the occurrence of Bovine Spongiform Encephalopathy (BSE). The "Enhanced Feed Ban" would prohibit certain cattle-derived risk materials from all animal feed. While the enhanced ban would provide negligible benefits to animal health or food safety, it would create tremendous costs, exacerbate disposal issues, and generate environmental concerns.
FDA estimates the new regulations would generate an additional 28 million pounds of prohibited cattle-derived material at the slaughter plant level and will create an estimated 26.2 - 41.6% decrease in cattle carcasses being picked up by rendering services, which translates into an additional 369 - 577 million lbs annually that will have to disposed of by some other means (this is in addition to the approximately 3 billion pounds of ruminant carcasses resulting annually from natural causes). While FDA acknowledges these very real concerns, it has yet to identify any viable solutions.
These concerns have been echoed by a bipartisan group of members from the Hill. In February, 18 Senators joined together in sending a letter to the FDA requesting the rule be delayed for 60-days and the comment period re-opened.
"Many in the agriculture industry are concerned that the final rule will be implemented without regard to viable alternatives for safe, economical disposal of deceased livestock," the letter stated. "While the safety of our food supply is the top priority for all of us, we are concerned about the potential for this rule to cause unnecessary economic hardship for farmers and ranchers."
This was followed by a similar letter last month, signed by 30 members of the U.S. House of Representatives, urging the FDA to "suspend implementation of the rule until a disposal plan is implemented."
NCBA has been opposed to the enhanced feed ban since it was originally proposed in 2005. We continue to urge the FDA to delay the implementation of the rule to allow time to fully evaluate its impacts.
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Cattle Producers Call for Transportation Infrastructure Reform
NCBA members from across the country visited Capitol Hill this week to urge support for legislation to increase the efficiency and productivity of our nation's transportation infrastructure.
"Cattle producers want to do business as safely and efficiently as possible, but non-uniform transportation regulations are having a severe impact on their ability to run productive operations," said Jill Davidsaver, manager, NCBA legislative affairs. "While highway safety remains our top priority, agricultural commodities compete in a world market against other countries which enjoy less stringent government regulations, giving them a competitive advantage in many areas including trucking efficiency."
Currently, a number of states have varying truck load limits that hinder the interstate hauling of cattle. By increasing load-limits, truckers would be able to decrease the number of trips required to haul their goods, thus saving on fuel and shipping costs. These savings would be passed on to U.S. manufacturers, farmers, retailers and, ultimately, consumers.
Additional axles and braking capacity used in new trailer designs would offset the extra weight, and eliminate any additional safety concerns and negative impacts on pavement.
The cattlemen were joined in their Hill visits by representatives from several other industries including beer wholesalers, agricultural products, food manufactures, and forest products in pushing for reform and standardization of our nation's truck weight regulations.
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PLC Applauds Congressional Letter on the Endangered Species Act
The Public Lands Council (PLC) applauded a letter sent by members of Congress to Secretary of the Interior Ken Salazar, urging commonsense action on the consultation process for the Endangered Species Act (ESA).
The letter, signed by a bipartisan group of 19 Representatives, expressed concern with language in the recent omnibus spending bill calling for review of a December 2008 regulation to streamline consultations under the ESA.
"We have been working closely with Congress on this issue," explained Skye Krebs, PLC President and rancher from Ione, Ore. "We appreciate that these 19 legislators joined our effort to ensure that the Endangered Species Act is as efficient and effective as possible."
Under the recently overturned regulation, proposed federal actions that are determined to have no effect on a species listed under the ESA would no longer be required to be approved through consultation with the Fish and Wildlife Service (FWS). Relieving the FWS of the duty to be involved in actions unlikely to impact a listed species will free-up its scarce resources to address more of the actions that are likely to harm species. Additionally, the regulation would limit consultation under the ESA on climate change. The ESA was never intended to address greenhouse gas emissions and it should not be used for this purpose.
"The regulation was designed to improve the consultation process for the Endangered Species Act and free the Fish and Wildlife Service from unnecessary work," said Krebs. "Overturning it only hinders our ability to protect and conserve endangered species."
The letter sent by members of Congress urged Secretary Salazar to complete the review of the December regulation as soon as possible and reinstate its provisions.
"These Representatives understand that needless red tape is detrimental to the goals of the ESA," said Krebs. "Improving the consultation process helps preserve listed species and allows for faster decisions on issues important to western ranchers."
The signatories on the letter included Representatives Joe Baca, Marion Berry, Rob Bishop, Dan Boren, Paul Broun, Dennis Cardoza, Jason Chaffetz, Mike Coffman, Jim Costa, Elton Gallegly, Doc Hastings, Dean Heller, Wally Herger, Stephanie Herseth Sandlin, Ann Kirkpatrick, Betsy Markey, Jim Matheson, George Radanovich, and John Salazar.
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NCBA Hosts Beef Safety Briefing for Hill Staff
Last week, NCBA hosted an educational briefing for Congressional staff on beef safety. The discussion focused on the beef industry's commitment to safety, the challenges that lie ahead, and the industry's proactive approach to improve the safety of beef products.
Cattle producers have invested more than $27 million since 1993 in beef safety research, leading to enhanced knowledge on pathogens, the development of interventions, and best practices which have served as a road map in reducing Escherichia coli O157:H7 and other bacteria in beef products.
NCBA's top priority is to produce the safest and highest quality beef in the world as evidenced throughout our industry's history and in our long-term efforts to continually improve our knowledge and ability to raise healthy cattle.
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PLC and NCBA meet with Agriculture Secretary
On March 27, the Public Lands Council (PLC) and National Cattlemen's Beef Association (NCBA) met with United States Department of Agriculture (USDA) Secretary Tom Vilsack and Deputy Chief of Staff Carole Jett.
The meeting focused on priority issues for the beef industry and livestock ranchers on federal lands, including trade, animal identification, and conservation.
"We had a positive and productive discussion," said Skye Krebs, PLC president and rancher from Ione, Ore. "It opened the door for a constructive relationship with the new leadership of USDA."
NCBA President-elect and producer from Astoria, Ill. Steve Foglesong also attended the meeting. "Secretary Vilsack made a point to emphasize his commitment to increasing trade," Foglesong said. "We appreciate that he understands how critical it is to open markets for beef and remove unscientific trade barriers." Trade adds approximately $180 to each head of cattle marketed by U.S. producers, and export markets are integral to the strength of the American beef industry.
The representatives from PLC and NCBA also discussed animal identification. "Secretary Vilsack assured us that the National Animal Identification System must be workable for ranchers," Foglesong said. "We understand the need for an animal identification plan that is an effective disease surveillance and monitoring tool, but it must also serve the needs of our livestock producers on public and private lands." NCBA continues to support a voluntary, market-driven approach to animal identification that supports genetic improvement, source verification, and disease surveillance.
The meeting also touched on the livestock industry's partnerships with conservation groups to protect ranching and conservation in the west.
"Conservationists and ranchers both share the goal of preserving our western landscapes and keeping them accessible, healthy, and productive," explains Krebs. "It's a logical partnership and we look forward to working together with USDA to achieve our shared goals."
"This meeting was a great forum to explain our concerns to Secretary Vilsack," Krebs said. "We look forward to many more productive conversations with him and his staff."
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Don't Miss NCBA's Cattlemen to Cattlemen!
Don't miss NCBA's Cattlemen to Cattlemen, April 7- 11. We'll hear from members of Congress about the future of the death tax, and spend a day in the life of a southern California cattle feeder. And as always, we'll have the latest from cowboy poet Baxter Black.
NCBA'S Cattlemen to Cattlemen is now an hour long! The show debuts Tuesday at 8:30 p.m. and airs again Wednesday at 10:30 a.m. and Saturday at 9 a.m. (all times are Eastern). Don't forget, you can watch NCBA's Cattlemen to Cattlemen online anytime by visiting www.CattlemenToCattlemen.org
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NATIONAL CATTLEMEN'S BEEF ASSOCIATION
1301 Pennsylvania Avenue NW, Suite 300
Washington, D.C. 20004 | |
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