Cattlemen's Capitol Concerns
May 1, 2008

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’d like to include NCBA’s logo, contact us at 303-694-0305.

Farm Bill Saga Continues:  Meetings of the Farm Bill conference committee continued this week. But sessions scheduled for April 30 were cancelled, and it is uncertain whether any further discussions will take place the evening of May 1. Both the House and Senate have approved extensions of  the current law through May 16. Assuming President Bush approves this short-term extension, it will provide another two weeks for Congress to finalize a new Farm Bill.

Conferees have not yet taken up issues covered in the livestock title. This title of the Farm Bill is a top priority for NCBA, as it is important to keep the final bill free of measures that will restrict cattle producers’ marketing options, or subject the cattle industry to undue government interference.

Other key developments from the Farm Bill conference committee include the following:

• Country-of-origin labeling (COOL): The farm bill contains language that makes implementation of COOL more flexible for both cattle producers and the meat industry, providing several improvements over the current law passed in 2002.

• Permanent ag disaster program: Sens. Kent Conrad (D-N.D.) and Max Baucus (D-Mont.) championed inclusion of a $3.850 billion permanent disaster aid program, which would provide assistance to cattle producers that lose livestock or forage as a result of a natural disaster.

• Conservation/environment programs: The bill provides an additional $4 billion for conservation programs, including $1.1 billion for the Conservation Stewardship Program (formerly the Conservation Security Program).  The program would be expanded from 16 million to 80 million acres by the year 2012.

The bill also provides $2.4 billion for the Environmental Quality Incentives Program (EQIP). Adequate funding for EQIP is a high priority for cattlemen, as the program has proven to be of great value for livestock producers and the general public.

The CRP Transition Option program is included at a cost of $50 million over 10 years. This would allow property owners taking land out of CRP to receive additional CRP payments if selling or renting the land to beginning or minority farmers.

Other key funding levels:

-          $1.3 billion for the Wetlands Reserve Program

-          $300 million for the Grasslands Reserve Program

-          $562 million for the Farm and Ranch Land Protection Program

-          $372 million for the Chesapeake Bay Program

President Bush Weighs in on Farm Bill Costs, Lack of Progress: In a press conference held April 29, President Bush expressed continued frustration over the potential cost of the Farm Bill. He renewed his call for more significant changes in subsidy payment eligibility, especially for recipients with incomes of more than $200,000 per year. President Bush has threatened to veto the legislation if his Administration finds it too costly or lacking in free-market policy reforms.

“Americans are concerned about rising food prices," Bush said. "Unfortunately, Congress is considering a massive, bloated Farm Bill that would do little to solve the problem."

Renewable Energy Proposals:  The Farm Bill presently offers a mixed result for the cattle industry with regard to renewable fuels. Some policy actions appear to be taking renewable energy policy in a more sustainable and market-driven direction, including:

·         To help offset the farm tax benefits package, the Farm Bill will lower the current 51-cent ethanol blender tax credit by six cents, to 45 cents.

·         A big payment shift to cellulosic ethanol is included, as the cellulosic ethanol credit would be $1.01 per gallon.

But even as the nation struggles to find sufficient grain supplies and agricultural acres to meet renewable fuels mandates, the Farm Bill proposes an extension of the current 54-cent per gallon ethanol import tariff through 2010.  It is currently set to expire at the end of this year – and this is the course of action supported by NCBA member policy.

Rethinking Renewable Fuels Mandates? Policy makers at both the state and national level are showing increasing signs of  “buyer’s remorse” with regard to the massive renewable fuels mandates passed in the Energy Independence and Security Act of 2007, which passed last December.

Texas Governor Rick Perry has petitioned the EPA to issue a 50 percent waiver of the new Renewable Fuels Standard (RFS), which mandates 9 billion gallons of feedgrain-based fuel production this year and 15 billion gallons by 2015.

"We appreciate the good intentions behind the push for renewable fuels. In fact we’re diversifying our state’s energy portfolio at a rapid rate,” said Gov. Perry.  “But this misguided mandate is significantly affecting Texans’ family food bill."

Sen. Kay Bailey Hutchison (R-Texas) is planning to introduce legislation that would freeze the RFS at its 2008 mandated level of 9 billion gallons. Formal introduction of Sen. Hutchison’s bill is expected within the coming week.

In other Congressional action, the Joint Economic Committee held a hearing May 1 to focus on the issue of rising food costs.

“The prices families are paying to fill their shopping carts have gone up – a lot,” said Sen. Charles Schumer (D-N.Y.), who chairs the committee.  “While we have been cringing at gas stations as gas prices have more than doubled since 2001, now it’s a double whammy.  We pay more to drive to the supermarket, and then get hit with higher prices when we get there.”

While consumers of certain food products are feeling a considerable burden from higher grain prices, livestock producers are bearing the brunt of the impact when it comes to meat production. While renewable fuels policy is not solely to blame for this situation, it is an important contributor. Consistent with its member-developed policy, NCBA is urging members of Congress to reevaluate the dramatic increase in the RFS, especially in light of current commodity and food price concerns.

Farm Broadcasters Converge on Washington for Annual Visit:  The National Association of Farm Broadcasting (NAFB) held its annual Washington Watch meeting earlier this week. Washington Watch hosts farm broadcasters from across the country for an intensive agenda of meetings with government groups, members of Congress, and industry leaders. 

NCBA spokespersons participated in one of the meeting’s most popular events, the annual Issues Forum. NCBA’s Executive Director of Legislative Affairs Colin Woodall and Chief Economist Gregg Doud recorded radio interviews on the cattle industry’s most pressing issues including the Farm Bill, pending trade agreements, grain and fuel prices, and issues related to environmental regulations and conservation programs. 

FSIS Podcasts Complement BIFSCo’s Industry Outreach: This week, USDA’s Food Safety and Inspection Service (FSIS) launched a series of educational podcasts tailored to address food safety and education issues for consumers and other stakeholders.  As a part of the agency's outreach efforts to small and very small processing plants, FSIS will initially focus on providing small and very small plant owners, operators and employees with important information through the use of these podcasts.

This coincides with work that NCBA is doing through its partnership with the Beef Industry Food Safety Council (BIFSCo). BIFSCo’s outreach to owners and operators of small and very small plants includes assistance with HACCP plans, access to free Best Practices documents, and creating a series of multi-media educational materials that demonstrate proper techniques for sampling and interventions.  More information on BIFSCo can be found at www.bifsco.org.

To listen to individual podcasts or sign up for a free subscription, visit http://www.fsis.usda.gov. For assistance or details concerning FSIS podcasts, please send an e-mail to podcast@fsis.usda.gov.

Don't Miss NCBA’s Award-Winning Cattlemen to Cattlemen:  On this week’s episode airing April 29 to May 4, Cattlemen to Cattlemen focuses on the reopening of South Korea to U.S. beef exports. NCBA President Andy Groseta offers a perspective from his recent visit to Korea, and Brett Stuart of Cattle-Fax discusses the impact of this market on beef and cattle prices. We’ll also have tips on fly control from Bayer Animal Health, and we’ll visit the cattle operation at historic Hedge Apple Farms in Maryland.

In the episode airing May 6-11, Duane Lenz of Cattle-Fax discusses beef prices and inventories as we move toward the summer grilling season. We hear from a Nevada rancher about the impact the Death Tax has had on his operation, and key members of Congress offer their thoughts on the importance of Death Tax relief.

Industry Experts, NCBA Leaders Featured on NCBA’s Cattlemen to Cattlemen:  Upcoming special editions of NCBA’s Cattlemen to Cattlemen will depart from the regular format, in favor of in-depth panel discussions moderated by Cattlemen to Cattlemen reporter Kevin Ochsner. The program airing May 13-18 will be sponsored by Dow AgroSciences, with experts on hand to answer questions about weed and brush control, as well as efficient pasture management. The following week (May 20-25), experts from Fort Dodge Animal Health will offer advice on effective parasite control.

A panel of NCBA officers will be featured on the program airing May 27-June 1. NCBA President Andy Groseta will share his goals and vision for NCBA and the beef industry. Policy Division Chairman Bill Donald discusses trade, tax and environmental issues, and the need for cattlemen to be active in advocating NCBA policy on Capitol Hill. Federation Division Chairman Alan Albright discusses recent successes achieved by the Beef Checkoff Program, and the challenges facing the industry as it strives to build beef demand.

NCBA’s Cattlemen to Cattlemen airs every Tuesday at 8:30 p.m. Eastern time, with repeat episodes on Wednesdays at 10:30 a.m. and Sundays at midnight (all times Eastern). It is also available online at www.CattlementoCattlemen.org. The program’s sponsors include Purina Mills, Fort Dodge Animal Health, Dow AgroSciences, Bayer Animal Health and McDonald’s. Make sure YOU tune into NCBA’s Cattlemen to Cattlemen on channel RFD-TV. For more information or to check out past episodes, visit www.cattlementocattlemen.org.

Media Contact:  Joe Schuele at jschuele@beef.org or call 303-850-3360.

This publication is funded by cattle producers and other industry supporters through their voluntary membership contributions to NCBA. To join the tens of thousands of cattle producers from across the U.S. in working to preserve our legacy, contact NCBA Member Services at 1-866-BEEF-USA or Membership@beef.org.