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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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Court of Appeals Denies Petition for Review of EPA Dust Regulation Rule
The D.C. Circuit Court of Appeals on Tuesday issued a decision to deny a petition for review of the Environmental Protection Agency's (EPA) rule that regulates dust under the Clean Air Act. The petition was filed by the National Cattlemen's Beef Association (NCBA) and other groups.
"We are very disappointed with the Court's decision," NCBA Chief Environmental Counsel Tamara Thies said. "There is no scientific evidence that agriculture dust causes adverse health effects, and its regulation under the Clean Air Act is completely unjustified."
The regulation of agriculture dust means that activities ranging from soil tilling, cattle movements in feedyards, driving on unpaved roads, and planting and harvesting crops could all come under the regulatory strong-arm of the EPA.
"Our producers already carry out stringent dust control measures each and every day," says Thies. "But the requirements imposed by EPA's rule are simply unnecessary and unattainable. In today's tough economic times, this unwarranted and burdensome government interference could prove to be devastating for America's cattle producers."
EPA released a final rule on regulating particles in the air under the Clean Air Act in October 2006, which says that states should focus on regulating dust in urban areas instead of rural areas because of a lack of scientific data on health or environmental affects of agriculture dust. However, the EPA stopped short of exempting agriculture dust from regulation. Consequently, NCBA filed an appeal of the rule in the DC. Circuit Court of Appeals. Oral arguments were held on September 15, 2008.
Every five years, the EPA is required to review scientific studies associated with pollutants regulated under the National Ambient Air Quality Standards (NAAQS) of the Clean Air Act to determine if the pollutant is regulated appropriately. Dust has been included as a pollutant, despite the fact that health studies do not show it is a concern. In order to regulate a pollutant under NAAQS, scientific studies are supposed to show that the pollutant causes adverse effects on health or the environment.
"The Clean Air Act is intended to regulate pollutants that cause adverse health or environmental effects," Thies explains. "Clearly, expanding this to include the regulation of agriculture dust goes beyond the intent of the Act."
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NCBA and PLC Oppose Section 7 Changes to Endangered Species Act
NCBA and PLC are opposing changes to the Endangered Species Act (ESA). Representative Nick Rahall, Chairman of the House Committee on Natural Resources, is sponsoring legislation (HJR 18) that would nullify regulations issued by the US. Fish and Wildlife Service (FWS) and National Marine Fisheries Service (NMFS) to update their joint consultation procedures under the ESA. The regulation, issued on December 16, 2008, extends the ability of the federal government to conserve threatened and endangered species.
The revised regulation will expedite consultations between agencies, allowing for a more efficient use of limited resources and providing clarity and focus within the agencies. The agencies will maintain their responsibility to enforce the ESA in protecting species.
In a release explaining the legislation, PLC President Skye Krebs was quoted as saying, "These regulations streamline and improve the Endangered Species Act. Overturning them hurts our ability to effectively manage endangered species."
Under the final regulation, proposed federal actions that are determined to have no adverse effect on a species listed under the ESA are no longer required to be approved through consultation with FWS. Relieving the FWS of the duty to be involved in actions least likely to impact a listed species will free-up its scarce resources to address more of the actions that are likely to harm species.
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U.S. House of Representatives Passes $410 Billion Omnibus Spending Bill
The U.S. House of Representatives on Wednesday passed a $410 billion Fiscal Year 2009 omnibus appropriations package - about $19 billion more than then-President George Bush had sought, and 8.7 percent above FY08. The bill has been sent to the Senate, where leaders indicate they will finish work on the bill by March 6. The agriculture appropriations portion of the bill amounts to $20.5 billion, an increase of $2.5 billion over FY 08.
Some of the provisions included that impact the cattle industry are:
- Veterinary Medical Services Act - $2,950,000
- Air Quality Research - 1,090,000
- Bovine Tuberculosis research in Michigan - 246,000
- Brucellosis Vaccine program in Montana - 305,000
- National Beef Cattle Evaluation Consortium - 615,000
- Pre-harvest Food Safety research in Kansas - 142,000
Funding for the Animal and Plant Health Inspection Service (APHIS):
- Cattle tick research - $9,907,000
- FMD and foreign animal disease research - 4,000,000
- Tropical bont tick research - 425,000
- National Veterinary Stockpile - 3,739,000
- Brucellosis management - 9,584,000
- Johne's disease research and management - 6,821,000
- Tuberculosis management - 15,657,000
- Wildlife Services operations - 76,047,000
Other provisions under APHIS include increased testing, monitoring, surveillance, and other services as needed toward the control and eradication of this disease, and for the prompt restoration of split-state status for New Mexico.
In addition, APHIS is directed to meet the following program administration milestones that are derived from the final 2008 animal disease traceability business plan:
- By February 1, 2009: Publish proposed rulemaking to consider establishing the seven-character PIN as the national location identifier standard and establish the "840" Animal Identification Number as the single version for the numbering system.
- By February 1, 2009: Incorporate the NAIS-compliant premises identification number format into existing Federal disease program activities.
- By May 1, 2009: Publish proposed rulemaking to consider using a premises identification number, in the NAIS-compliant format, for import/export facilities, the destination of imported livestock and the location of exported animals prior to the assembly.
The bill also includes $129,180,000 for Animal Health Monitoring and Surveillance, including $14,500,000, an increase of $4,713,000, for the National Animal Identification System (NAIS). Given this investment, coupled with the almost $128,000,000 that Congress has already provided for NAIS, APHIS is expected to make demonstrable progress with effectively implementing the animal identification system. Accordingly, APHIS is directed to meet the following cattle traceability objective that is derived from the agency's final 2008 animal disease traceability business plan: by March 1, 2009, identify 30 percent of the nation's cattle population to premises of origin within 48 hours of a disease event.
Finally, the bill provides $9.6 million for country-of-origin labeling (COOL) enforcement, $2 million for strengthened enforcement of the Humane Methods of Slaughter Act, and $10 million for conservation technical assistance.
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Vilsack Announces Implementation of County of Origin Labeling
On February 20, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that the final rule for the Country of Origin Labeling (COOL) program will go into effect as scheduled on March 16. He also released a letter asking stakeholders to follow additional voluntary labeling practices.
NCBA is pleased that Secretary Vilsack has decided to implement the final COOL rule with no further delays. Markets react poorly to uncertainty, and the confusion over when and how the final COOL rule would be implemented was detrimental to the beef industry. Implementing the final rule as scheduled on March 16, 2009 will make the USDA implementation and education period more meaningful, and its permanency allows NCBA and our partners throughout the industry to dedicate resources for educating producers, processors, retailers, and consumers. NCBA urged legislators and regulators in Washington, D.C. to implement the rule as written so that markets could adjust to the new regulations, and we could begin assessing COOL's value to the consumer and impact on beef demand.
Vilsack has indicated that USDA will carefully monitor industry compliance with the regulation as well as the voluntary actions requested in his letter, and based on performance, would consider making modifications to the rule.
One of the voluntary actions requested in the letter calls for industry to specify where an animal was born, raised, and processed. This requirement was not part of the agreement that was carefully negotiated in the Farm Bill, and as such, we do not believe it was the intent of Congress. While the impact of additional proposed demands on meatpackers is yet to be determined, whenever additional steps are added to the processing and packaging process, it will equate to additional cost.
NCBA will be closely monitoring the effects of both the regulation and the additional voluntary requirements on the industry, and will work to seek changes if necessary.
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Public Lands Bill on Hold
The Omnibus Public Lands Management Act of 2009 (S.22)--which passed in the Senate on January 22--is now held up in the House of Representatives The House had planned to take up the bill the week before the Presidents Day recess, but the timetable is now unclear, as House Democrats are evaluating whether they have the votes needed for passage.
The bill authorizes specified programs and activities in the Department of the Interior and the Department of Agriculture concerning national wilderness designations, national rivers, the national landscape conservation system (NLCS), national conservation areas, land conveyances and exchanges, watershed management, watershed restoration and enhancement, wolf livestock loss, national parks, national heritage areas, water projects, tribal water rights, NOAA (National Oceanic and Atmospheric Administration) and coastal and estuarine land conservation.
The Public Lands Council (PLC) has been closely monitoring this legislation and has been actively engaged in the provisions affecting our members. Specifically, PLC supported the "wolf livestock loss" section, which would provide grants to assist livestock producers in reducing the risk of livestock loss due to wolf predation and to compensate livestock producers for losses due to predation.
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JBS Drops Bid for U.S. Premium Beef
JBS has announced they will no longer pursue the acquisition of U.S. Premium Beef
NCBA supported a detailed government review of the JBS merger and believes that the Department of Justice completed a thorough vetting and analysis. This process has lasted for nearly a year, and both government and industry have had time to fully consider the facts. We continue to support careful enforcement of the Packer & Stockyard Act.
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Impact of U.S. and Global Economic Woes on the Cattle industry
So far in 2009, discussions regarding the U.S. and world economies have flooded the airwaves. From the auto industry, manufacturing sector, and even the dairy industry, we've seen the double impact of deflation combined with a historic housing/mortgage crisis.
According to Gregg Doud, NCBA's chief economist, the current economic situation for the beef industry is unique in that it encompasses a number of variables that seldom, if ever, are all pointing in the same (downward) direction at one time.
Historically, about 50 percent of U.S. beef is consumed away from home, at hotels, restaurants, and institutions (such as schools). This demand is always a key economic driver for the beef industry, as it involves a sizable portion of our highest value items, including steak. One of the biggest indicators that disposable income is on a downward trend can be seen in a reduction in the number of meals eaten outside of the home. There is no question that we have seen this trend since last fall. However, we have seen these effects somewhat offset by a positive recovery in sales at grocery stores.
The drop credit is another unique factor that has contributed to a decline in live cattle prices. The drop credit is comprised of 23 individual non-meat items derived from a slaughter steer-including the hide, bone meal, heart, tallow, tongue and tripe (intestine)- that make up a cattle's byproduct value. The hide traditionally represents the greatest share of the byproduct value (around two-thirds) followed by inedible tallow, edible tallow, tongue and bone meal. A decline in the demand for staple consumer items such as shoes and leather car seats, along with the collapse in crude oil prices which directly affected the price of tallow, had led to the drop credit falling from roughly $170 per steer last summer to around $90 in 2009.
After a stellar performance last summer due to the relatively low value of the U.S. dollar against most other currencies in the world, the value of the dollar has appreciated considerably since mid-October 2008. In the past four-five months, the dollar has risen from 11:1 to nearly 15:1 against the Mexican peso, and from 1200:1 to more than 1500:1 against the South Korean won, significantly detracting from consumers' buying power in these key export markets.
According to Doud, despite these odds, beef demand at the retail level has remained fairly strong.
"While we've seen significant competition from pork and poultry at the retail meat case, heavier cattle weights have, until recently, resulted in a steady supply of beef entering the marketplace," says Doud. "And while our industry has seen historic losses in our feedyards, we're confident that some warm weather this spring will encourage U.S. consumers to get their grills uncovered, cleaned up, and primed for some of the best values on steak we've seen in years."
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Obama Unveils $3.55 Trillion Budget
On Thursday, President Obama unveiled a $3.55 trillion budget plan for 2010. NCBA is currently evaluating the proposal and will closely monitor the reconciliation process in Congress. Of note, the budget proposes maintaining the estate tax at its 2009 levels of $3.5 million for individuals and $7 million for couples, at a rate of 45%. By freezing 2009 estate tax parameters, the budget estimates federal revenue would increase by $121 billion over five years and $288 billion over 10 years.
Under current law, the estate tax is set to expire and will fully repeal in 2010 for one year. In 2011, the estate tax will reset at pre-2001 levels (55% and only $1 million exemption). If no further action is taken, President Obama's proposal will nullify the sunset schedule for the estate tax by freezing the 2009 levels. NCBA will continue to work with members of Congress so that a reasonable solution to the Estate Tax ("Death Tax") can be met in the 111th Congress.
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Merrigan Tapped for Deputy Secretary of Agriculture Post
On Monday, President Obama announced his nomination of Kathleen Merrigan, an assistant professor at Tufts University who helped develop U.S. organic food labeling rules, to serve as Deputy Secretary of the U.S. Department of Agriculture (USDA).
Merrigan was head of USDA's Agricultural Marketing Service from 1999-2001 during the Clinton era and helped develop USDA's rules on what can be sold as organic food. As a Senate aide, she worked on the 1990 law that recognized organic farming.
A date has not yet been set for the confirmation hearing.
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USTR Confirmation Hearing to Take Place Next Week
On Thursday, March 5 at 3:00 p.m., the Senate Finance Committee will hold a confirmation hearing for former Dallas Mayor Ron Kirk, President Obama's pick as U.S. Trade Representative (USTR). As head of USTR, Kirk would play a critical role in determining the future of U.S. beef trade.
One of NCBA's top priorities for 2009 is to increase international markets for U.S. beef trade, including expanding the market in Japan. Currently, Japan only allows U.S. beef imports under 20 months of age. An increase to 30 months of age and under could potentially boost beef exports to Japan by $1 billion.
Other top NCBA trade priorities include passing pending Free Trade Agreements with Panama, Colombia, and South Korea, and enhancing our trading relationship with our neighbors in Canada and Mexico.
We look forward to continuing to work closely with USTR, State Department, and the administration to increase U.S. access to international beef markets.
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Don't Miss NCBA's Cattlemen to Cattlemen!
Don't miss NCBA's Cattlemen to Cattlemen, March 3 - 7, as we visit a graded calf sale in central Virginia, and introduce you to one of our national Beef Quality Assurance Award Winners. NCBA is also proud to introduce our newest partner, Baxter Black! Join us each week for Baxter Black's wit and wisdom.
NCBA'S Cattlemen to Cattlemen is now an hour long! The show still debuts on Tuesday at 8:30 p.m., and airs 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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