Cattlemen's Capitol Concerns Archive
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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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EPA GHG Reporting Requirements Will Have Major Impact on Livestock Operations
The Environmental Protection Agency (EPA) released a final rule on Tuesday to require livestock operations that emit 25,000 tons or more of greenhouse gas emissions (GHGs) per year from their manure management systems to report those emissions as part of a mandatory greenhouse gas registry. The new rule will affect beef cattle operations that have 29,300 or more head of cattle, about 150-180 cattle operations nationwide -a much larger number than the 11 operations EPA originally projected to be covered under the proposed rule released in April. NCBA sent comments to EPA in June in opposition to the proposed rule.
According to the EPA's Inventory of Greenhouse Gas Emissions and Sinks: 1990-2007 released on April 15, 2009, GHGs from all livestock manure management systems in the U.S. account for less than 1% (.8%) of all U.S. GHG emissions, and manure management systems from the beef sector emit only .12% of total emissions. As such a minor emitter, this type of reporting by the livestock sector will not provide data that is useful in addressing EPA's long-term goal of reducing major sources of GHG emissions, and it would be a significant financial and administrative burden on cattle operations. Instead of being regulated, agriculture should be considered a solution to the climate change problem by providing important sources of offsets such as soil carbon sequestration and renewable energy.
The efficiencies found in cattle feeding are critical to providing a nutritious and affordable food supply. Emissions from beef manure management systems are purely natural, and in no way should be compared to emissions from cars or factories. This is not factory farming; this is efficient food production that enables our nation to feed itself and the rest of the world. It is unfortunate that the Federal government has chosen to cause additional financial hardship to America's farmers during these difficult economic times.
NCBA supports efforts by our land grant universities to gather data to accurately measure livestock emissions and develop best management practices to mitigate them. |
Congress Debates Transportation Reform
The Senate last week passed the Fiscal Year 2010 Transportation-Housing and Urban Development Appropriations Bill, which includes an amendment (Section 194) by Sen. Susan Collins (R-Maine) authorizing a pilot project-exclusive to the state of Maine-to allow an increase in the allowable truck weight limits on Maine's federal roads. Under the provision, 100,000-pound six-axle trucks (currently authorized on state roads only) will have access to Maine's federal Interstate system for a one-year period, during which time studies will be conducted to evaluate the impacts on safety, infrastructure, and the environment. The House version of the bill does not include a similar provision.
Section 194 is a positive step toward increasing efficiencies in Maine's transportation sector. NCBA continues to support similar legislation at the national level to allow states the choice to safely increase allowable truck weight levels, and in turn save on energy and costs associated with agriculture trucking. Agriculture and cattle production are unlike the manufacturing industry. During busy seasons, our transportation needs don't comply with normal working schedules. Increasing truck weights will increase productivity and make us more competitive with Mexico and Canada, which allow 97,000 lb trucks. The U.S. does not have national uniform standards for truck weights; limits vary by state, with the national average at approximately 80,000 lbs.
Earlier this week, the House passed a three-month extension of current surface transportation law. The Senate is considering an extension of 18 months. An 18-month extension, which is favored by the White House, would postpone votes on gasoline taxes and/or other revenue-raisers until after the 2010 midterm elections.
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Weaker Dollar Suggests Changing Trade Flows
This week has seen the U.S. dollar fall to its lowest point of year against most currencies, including the Korean Won. It currently takes 1206 Won to buy one U.S. dollar, compared to an average foreign exchange (FX) rate of 1352 during the first six months of this year and a 2008 average exchange rate of 1103:$1US. This means that for the Korean consumer, U.S. beef is now 11% cheaper than it was on average during the first six months of this year, based solely upon the difference in the exchange rate (assuming beef prices were the same).
U.S. beef exports to South Korea have been far below expectations during the first seven months of 2009 due to extremely large inventories remaining from beef imported from Australia and the U.S. in 2008, soft demand, and the exchange rate; but this may be changing. Just as the U.S. dollar is weakening against the Won, the Australian dollar is strengthening. The A$ is currently 9% stronger compared to its average FX against the Won during the first six months of 2009, and 13% stronger than the 2008 average FX rate.
This would suggest that U.S. beef exports to Korea should be picking up (which anecdotal reports indicate they are). Another big reason why sales are improving is that Korea has finally been able to chew its way through the inventory it piled up late last year. We are encouraged by reports that emotions may be finally beginning to take a back seat to economics.
Japan: Supply, not demand, is the driving force behind U.S. beef exports to Japan. The 20 month and under age restriction will once again begin to limit our ability to supply that market until next spring. This is incredibly unfortunate considering the benefits that a weaker dollar is providing us into Japan. It currently takes 91.5 Yen:$1U.S. versus 95.5:1 during the first six months of 2009 and a 103.5:1 FX rate on average during 2008. Thus, U.S. beef is 4% cheaper to the Japanese consumer than it was during the first half of this year and 12% more competitive than it was on average during 2008-which is one of the reasons why U.S. beef exports to Japan are up 18% on the year through July.
Canada: The volume of U.S. beef exports to Canada is down 12% through July, but with the Canadian dollar appreciating to $C1.07:$U.S.1 this week-which just happens to be the same as the average FX rate for all of 2008-U.S. beef is now 12% cheaper to the Canadian consumer than it was during the first six months of 2009. The opposite holds true for our NAFTA partner to the South, where the current Peso 13.35:U.S.$1 rate is still well above the 2008 average rate of 11.2:1, and only 4% better than the 13.9:1 average for the first six months of this year. The comparison to last year explains much of why U.S. beef and beef variety meat exports to Mexico are off 25% through July. The FX factor has been particularly acute in terms of its effect on U.S. beef variety meat exports to Mexico, which are down 35% through July.
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Don't Miss NCBA's Cattlemen to Cattlemen!
Don't miss NCBA's Cattlemen to Cattlemen, September 29- October 3. We'll get an update on NCBA's Fall Legislative Conference in Washington, D.C. and talk to members of Congress about the "death tax." We'll also learn more about the benefits of pre-conditioning your calves, and we'll have another great beef recipe courtesy of Chef Michaele!
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. 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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