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Cattlemen's Capitol Concerns
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 Applauds Compromise on China Poultry Trade
Last week, conferees to the Fiscal Year 2010 Agriculture Appropriations Bill agreed to compromise language that would allow the U.S. Department of Agriculture (USDA) to perform a risk-assessment to determine, based upon sound science, whether Chinese poultry products are safe for importation to the U.S.The agreement will allow USDA to do its job of protecting Americans from unsafe foods, while giving China the same treatment as all other nations who seek to ship their meat and poultry products to the U.S. The National Cattlemen's Beef Association (NCBA) and The Ad Hoc Coalition for Sound Science and Trade issued the following statement:
"The U.S. meat and poultry industry has always been committed to the highest standards of food safety. We are pleased that this issue has been resolved and are hopeful that it lays the groundwork for resumption of trade in these and other products that have been hindered by Sanitary and Phytosanitary (SPS) issues. We appreciate the efforts of the Administration and Congress to come to agreement on a path forward for these critical issues."
The compromise language was included in the final version of the bill which is expected to pass both chambers of Congress next week.
Background: The House-passed version of the FY10 Agriculture Appropriations contained a provision, also included in the FY09 Agriculture appropriations bill, which effectively banned the import of certain Chinese chicken products, without allowing USDA's Food Safety and Inspection Service (FSIS) to conduct a necessary and appropriate risk-assessment. The provision-which NCBA actively opposed-prompted China to file a complaint with the World Trade Organization (WTO) and has continued to adversely impact U.S. credibility, and potentially hinder U.S. market access, overseas. The Senate version of the bill included language, supported by NCBA, to counter the House provision.
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NCBA Continues to Fight for Death Tax Relief
The National Cattlemen's Beef Association (NCBA) is continuing to fight on behalf of family farmers for relief from the estate (or "death") tax--considered one of the leading causes of the breakup of multi-generation family farms and ranches. In a letter sent last week to the members of the House and Senate, NCBA and its partners in the Family Business Estate Tax Coalition (FBETC)--comprised of nearly 50 national and international pro-business groups--urged Congress to enact legislation this year providing permanent estate tax relief for family farms and businesses. The following is an expert from the letter:
"The uncertain nature of the estate tax regime over the next two years is a cause for major concern for family businesses, many of which are struggling to ensure that the business survives into the next generation. The estate tax is scheduled to be repealed after 2010 and return to its onerous, pre-2001 levels in 2011. Family businesses cannot afford mixed messages from Congress on this critical issue, and a mere one-year extension of existing law will only add to the planning burdens on businesses that are already facing difficult economic times.
"The FBETC urges Congress to recognize that permanency and certainty are the required components of any estate tax relief legislation.
"The FBETC is on record this year supporting the Lincoln/Kyl estate tax amendment that passed the Senate floor with a majority of votes during the budget proceedings. This amendment would provide family businesses with certain and permanent relief by reducing the top rate to 35 percent and increasing the exemption to $5 million. Such relief is critical for family businesses at a time when they are struggling to expand their businesses and create much needed jobs. "
Farm estates are 5-20 times more likely to incur estate taxes than other estates, and it is estimated that one in ten farm estates (farms with sales of $250,000 or more annually) are likely to owe estate taxes in 2009, according to the U.S. Department of Agriculture's Economic Research Service. Most of the time, these assets have already faced taxes two and three times over the course of a lifetime. The appraised value of rural land is extremely inflated when compared to its agricultural value, which can make it nearly impossible for asset-rich and cash-poor family famers to keep their operations in the family at the time of death. Farming and ranching families are often forced to sell off land, farm equipment, parts of the operation, or even the entire ranch, simply to pay off tax liabilities.
For this reason, NCBA is urging Congress to support H.R. 3524, the Family Farm and Conservation Preservation Act, sponsored by Congressmen Thompson (D-CA) and Salazar (D-CO), as well as additional estate tax relief for agriculture operations in tax extender legislation. For more information, visit: http://www.beefusa.org/uDocs/deathtaxleavebehind.pdf
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Dairy Herd Retirement Coincides with Beef Cow Culling Season
Cooperatives Working Together (CWT) has announced the implementation of its third herd retirement in 2009, effective today, October 1, 2009. The timing of this latest dairy retirement, at the height of beef cow culling season, could have a negative impact on cull cow prices this fall.
Last week's total cow slaughter was 26% less than the same week in 2008, and year-to-date cow slaughter was down nine percent. Usually this would mean a much stronger cull cow market--except lean trim and cull cow prices are down more than 10% from year-ago levels. This is in part due to increased lean-beef imports from Australia earlier this year as a result of a stronger U.S. dollar and softer demand for ground beef. However, the decline in the U.S. dollar against its Australian counterpart suggests fewer beef imports for the balance of 2009. This sense of optimism, however, is somewhat muted by today's CWT announcement. If this round of the CWT were to involve a cull of 50,000 cows in a 30-day period, it could result in a $3.00/cwt negative impact on cull cow prices. Cull cow prices could potentially struggle into 2010, depending upon the exact timing of this cull.
As the economy continues to exhibit sluggish signs of growth, beef demand continues to struggle. Our cattle feeding sector alone has seen equity losses of over $7 billion going back to December 2007. At the same time, the beef complex overall is under unrelenting duress due to huge pork supplies and pork prices that seem to give wholesale beef prices no ability to gain altitude, despite seasonal improvement in cattle supplies. In these challenging times, it's more important than ever that all non-market related and policy decisions take into account the seasonal and psychological impacts that they have on the beef and other industries.
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Public Lands Council Works to Maintain Public Access on Federal Lands
During consideration of the FY 2010 Interior-Environmental Protection Agency Appropriations bill, the Senate declined to insert language that would have designated additional range on public lands as exclusive horse sanctuaries. This type of public-land designation would be a drastic departure from our country's proud tradition of allowing public access to federally-owned lands, and permitting multiple uses of those lands by diverse groups like ranchers, sportsmen, and nature enthusiasts. Exclusively designating land in this way would also make it harder for the Secretary of the Interior to maintain a sustainable population of horses, both by imposing additional costs on administration and by limiting tools needed to manage populations.
The Public Lands Council continues to urge lawmakers to oppose legislation that would undermine the multiple-use tradition of our country's shared federal lands. For more information: http://www.beefusa.org/uDocs/WildhorseandBurro.pdf
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Don't Miss NCBA's Cattlemen to Cattlemen!
Don't miss NCBA's Cattlemen to Cattlemen, October 6-10. We'll talk to industry experts about recent developments with U.S. beef trade in Japan and we'll hear from members of Congress about healthcare reform. We'll also learn more about managing and preventing bovine respiratory disease and get tips on properly baling corn stalks.
NCBA's Cattlemen to Cattlemen is now an hour long! The show debuts Tuesday at 8:30 p.m. and airs again Wednesday 10:30 a.m. and Saturday at 9 a.m. (all times Eastern). Don't forget, you can watch NCBA's Cattlemen to Cattlemen online anytime by visiting www.CattlemenToCattlemen.org. You can also follow us on Twitter at NCBA C2C, and become a fan of the show on Facebook by searching NCBA's Cattlemen to Cattlemen.
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NATIONAL CATTLEMEN'S BEEF ASSOCIATION1301 Pennsylvania Avenue NW, Suite 300
Washington, D.C. 20004 | |
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