Cattlemen's Capitol Concerns Archive
Cattlemen's Capitol Concerns
October 2, 2008
Contact: Heather Vaughan, 202-347-0228, or hvaughan@beef.org
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.
Country of Origin Labeling Takes Effect:
On September 30, 2008, Country of Origin Labeling (COOL) became mandatory on muscle cuts of beef and ground beef.
Ground beef must be labeled with all countries of origin that might be contained within that batch.
Muscle cuts may be labeled in one of four categories:
A) U.S. Origin – for products derived exclusively from animals born, raised and slaughtered in the United States.
B) Multiple Countries of Origin that Include the United States – for products from animals born, raised, and/or slaughtered in the United States. A sample label might read, “Product of the United States, Canada, and Mexico.”
C) Imported Direct for Slaughter – for products from animals imported for immediate slaughter A sample label might read, “Product of Canada and the United States.”
D) Imported Beef – For boxed beef imported into the United States. An example of this label would be “Product of Australia.”
There was a debate among industry representatives over when and how category B could be used. USDA has issued some clarification on this, saying that it is not permissible to label meat derived from livestock of U.S. origin with a mixed origin label if solely U.S. origin meat was produced during the production day.
In other words, if a packer develops products from U.S. cattle, Canadian cattle, and Mexican cattle all in one batch, then it can carry this multiple countries of origin label, saying, “Product of the U.S., Canada, and Mexico.” But products from a day’s production of only cattle exclusively from the United States must be labeled as such.
NCBA will be monitoring the impact of COOL on beef markets, and will work with Congress and industry partners to effect any changes that may be deemed necessary following implementation.
Additionally, NCBA continues to communicate to our stakeholders that COOL is a marketing tool and not a food safety measure. All beef sold in the United States is subject to the same food safety procedures, whether the beef is from cattle originating in this country or in Canada or Mexico.
Senate Passes Financial Bailout Legislation:
On October 1, 2008, the Senate passed a financial bailout package with bipartisan support. To bolster support for the bill, the bailout legislation was combined with a number of tax provisions. The legislation includes property tax relief, an extension of alternative minimum tax relief, and extensions of tax credits for wind energy, biodiesel, and alternative fueling. Additionally, the federal deposit insurance limit is raised to $250,000 per account from the current level of $100,000 per account. The House is expected to vote on the legislation on Friday, October 3, 2008.
Farm Credit System Invests in Farmer Mac:
In other financial news, the five system banks of the Farm Credit System invested $60 million in the Federal Agricultural Mortgage Corporation (Farmer Mac) this week.
The $65 million in total financing will enable Farmer Mac to strengthen its capital position and comply with its minimum regulatory capital requirements.
Farmer Mac provides a secondary market for agricultural real estate loans, rural home mortgages and rural utility loans and facilitates capital market funding for USDA-guaranteed farm program and rural development loans.
In a press release Robert B. Engel, president and chief executive officer of CoBank, ACB, explained the investment, saying, “Agriculture is a key economic driver in our economy, providing food, thousands of jobs and biofuels that help make our nation more energy-independent. The System’s mission is to help ensure that U.S. agriculture has the capital it needs to continue to fulfill these essential roles, and we are proud that we are able to do so.”
FDA Awards Grants for Ruminant Feed Ban:
The U.S. Food and Drug Administration (FDA) awarded of 17 grants totaling $5.2 million to enhance food and feed safety. The grants fund cooperative agreements in four major areas, including a ruminant feed ban support program.
Iowa, Mississippi, North Carolina and Washington received grants to enhance compliance with the ruminant feed ban.
NCBA has been involved in meetings with FDA and the United States Department of Agriculture (USDA) on the ruminant feed ban, and has voiced concerns over increased costs and disposal issues. Additionally, there is no scientific evidence that the ruminant food ban leads to increased food safety.
According to a USDA report, the ban was estimated to cost the U.S. private sector approximately $53 million per year, including $44 million in direct compliance costs to the beef, rendering, and byproduct industries. The report, available from USDA’s Economic Research Service, also notes that, “renderers, who once picked up dead animals for free, become less inclined to pick up animals that cannot be rendered or will pick them up only at costs estimated at $100 or more per head.”
FDA Launches Database of Animal Drug Approvals:
The U.S. Food and Drug Administration (FDA) launched a database called Animal Drugs @ FDA, which allows users to search for detailed descriptions of all FDA-approved new animal drugs.
The search tool allows users to conduct simple word searches, as well as more complex searches using specific criteria that include: Ingredients, Dose Form, Route, Species, and Indication.
Horse Slaughter Bill Sent to House Agriculture Committee:
After the House Judiciary Committee passed H.R. 6598 – the “Prevention of Equine Cruelty Act of 2008,” the legislation was poised for a full House vote. NCBA successfully delayed that action and the legislation has been sequentially referred to the House Agricultural Committee for consideration.
NCBA is working to ensure that Congress and the public are aware that although the bill was introduced under the guise of protecting horse welfare, it will produce unintended and inhumane consequences. Since state laws have banned horse processing, the number of abandoned, neglected, and starving horses has drastically increased.
What’s more, this bill would severely limit the rights of owners to manage their private property and subject horse owners to criminal prosecution should they sell their horses for processing.
NCBA continues to oppose this legislation, and has created a template for members to use when contacting members of Congress regarding this issue: http://capwiz.com/beefusa.
USDA to Host Public Meeting on Animal Raising Claims:
USDA's Agricultural Marketing Service (AMS) and Food Safety Inspection Service (FSIS) will host a public meeting on October 14, 2008 to discuss and review policies on the use of animal raising claims in the labeling of meat and poultry products.
FSIS evaluates animal raising claims by considering information on animal production practices submitted by companies as part of their label approval requests. However, recent events concerning labeling claims related to the use of antibiotics in the raising of poultry have led the Agency to question its ability to verify that labels of meat and poultry products that contain animal raising claims are truthful and not misleading.
Therefore, FSIS and AMS will solicit public input and review its policies on claims related to the use of antibiotics in poultry and on animal raising claims in general.
The meeting will be held from 8:30 a.m. and adjourn at 12:30 p.m. It will be held at the L'Enfant Plaza Hotel, 480 L'Enfant Plaza, S.W., Washington, D.C. An agenda will be available for review on FSIS' Web site at www.fsis.usda.gov/News_&_Events/meetings_&_events/index.asp.
Don't Miss the Award-Winning NCBA’s Cattlemen to Cattlemen:
Don’t miss NCBA’s Cattlemen to Cattlemen! On the show airing from October 7th through October 12th, we will examine how to identify and treat Bovine Respiratory Disease. Plus, we spend a day in the life of an Oregon rancher. Also, we have a preview of the 2009 NCBA Trade Show in Phoenix, Arizona!
NCBA’S Cattlemen to Cattlemen debuts Tuesday at 8:30 p.m. The show also airs Wednesday at 10:30 a.m. and on Sunday at 12:00 a.m. (All Times are Eastern) Don’t forget, you can watch NCBA’s Cattlemen to Cattlemen online anytime by visiting CattlemenToCattlemen.org.
NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. It 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).
The program’s sponsors include Purina Mills, Fort Dodge Animal Health, Dow AgroSciences, Bayer Animal Health and McDonald’s.
For more information or to check out past episodes, visit www.cattlementocattlemen.org.
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