April 14, 2005

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).

NCBA SPRING CONFERENCE

Hundreds of U.S. cattle producers from across the nation have taken over Washington D.C. this week for NCBA’s annual 2005 Spring Conference, April 13-16.  Attendees are walking the halls of the Capitol buildings, hearing directly from top policymakers, meeting face-to-face with key Congressional offices and government agencies, and stalking Congressional steps with hats and boots - with voices being heard loud and clear.

Impressive Speakers Address Members: All visiting NCBA members are invited to the U.S. Department of Agriculture for a closed-door briefing with U.S. Agriculture Secretary Mike Johanns Friday morning. At today’s legislative briefing, Senate Ag Committee Chairman Saxby Chambliss (R-GA) addressed NCBA members and discussed the political agenda for agriculture this spring. Attendees had the chance for an open forum question-and-answer session, where issues from trade to animal ID were discussed. Chambliss re-iterated the importance of hearing from real-live ranchers in the flesh, and thanked NCBA members for their dedicated involvement to the agriculture policy arena. In addition, Rep. Robin Hayes (R-NC) and Rep. Roy Blunt (R-MO) addressed NCBA’s Executive Committee during their lunch meeting yesterday and discussed current policy issues with NCBA leadership.

The Public Lands Council Spring meetings and events began Monday April 11 and ran through Wednesday, April 13. PLC members met one-on-one with many members of Congress and high-level government officials. Among them were Department of Interior Secretary Gale Norton, Senators Larry Craig (R-ID), Conrad Burns (R-MT), Byron Dorgan (D-ND), and House Resources Committee Chair Richard Pombo (R-CA).

*NCBA Invited to Oval Office!!* NCBA Leaders tipped their hats to President Bush in the White House’s Oval Office today and presented him with a sand-colored beaver cowboy hat, in thanks for his unwavering support for America’s cattle ranchers. NCBA President Jim McAdams (TX cattleman), President-Elect Mike John (MO cattleman), Vice President John Queen (NC cattleman), along with CEO Terry Stokes, Vice President of Government Affairs Jay Truitt and Executive Director of Government Affairs Bryan Dierlam joined the President for a rare Oval Office meeting this afternoon.

NCBA, who supported the president’s re-election campaign, had the cowboy hat made as an Inauguration gift this January. But due to scheduling, an Inauguration-Week presentation wasn’t possible, so we decided to make the presentation during NCBA’s Spring Conference. Also part of the NCBA delegation were Trent and Melissa Johnson of Greeley Hat Works in Greeley, Colorado, who made the president’s cowboy hat. Johnson says the president’s hat is truly one-of-a-kind with a solid-gold "W" etched on a custom silver buckle and featuring Bush's name embroidered on the inside of a multi-colored sweatband. In addition, the hat came in a special customized navy-blue hatbox with the presidential seal and a light gray felt liner.

NCBA Officers Hold D.C. Media Briefing: NCBA staff and officers hosted a special Spring conference briefing for media, which brought swarms of reporters live and via conference call asking detailed questions about trade negotiations, BSE, and cattle industry priorities for the 109th Congress. On behalf of cattle producers across the nation, NCBA officers Jim McAdams, Mike John, and John Queen, took questions regarding the cattle industry’s position on Japanese and Canadian trade, animal ID, country-of-origin labeling, death tax, conservation programs, ESA reform, and BSE firewalls.

ALSO IN WASHINGTON D.C. THIS WEEK...

Cattlemen Address Unresolved Issues with USDA: NCBA is seeking answers from the Department of Agriculture to a number of outstanding questions regarding BSE and trade issues. We sent a letter today, April 14, to Secretary Mike Johanns, stating that the following issues must be addressed to protect and enhance the business climate for U.S. cattlemen and further increase the demand for beef in the United States. These issues include:

1. Protocol for announcing BSE test results

2. Future of USDA’s enhanced BSE surveillance program

3. Attaining OIE’s "Provisionally Free" status for the U.S.

4. Canada’s Anaplasmosis and Blue Tongue restrictions

5. Resuming trade of imports vs. exports

6. USDA grade stamps on imports

7. Animal identification

Specifically, NCBA is asking for:

1. Clarification on USDA protocol for release and management of information associated with inconclusive test results for BSE.

We previously expressed concern with the department’s protocol in November 2004 when speculation surrounding an inconclusive test result caused unnecessary volatility in the market.

2. USDA’s plan of action for the enhanced BSE surveillance program.

Since its June 2004 inception date, USDA has completed surveillance on 314,394 head of cattle under the program. We believe the principal goals of the program have now been met and a more reasonable level of testing should be resumed.

3. Report on USDA’s effort to seek the "provisionally free" status for the U.S. from the World Organization of Animal Health (OIE).

In March, we requested that in light of the current volume of cattle tested under the enhanced surveillance program, USDA seek the "provisionally free" designation for the U.S. This would facilitate the reopening of many of our export markets and enhance consumer confidence in the safety of U.S. beef.

4. Increased attention be paid to resolving the issue of Canada’s restrictions on U.S. cattle due to Anaplasmosis and Blue Tongue requirements, especially in regards to breeding cattle.

These non science-based trade barriers have existed for more than two decades without resolution, and we are asking USDA to "bring the full weight of your office to resolving this issue…and ensure that these rules do not become entangled in political or regulatory rifts on either side of the border."

5. Resumption of exports of products and animals from the U.S. be the department’s first priority.

There is a perception among cattlemen that USDA is quick to resolve issues raised by other countries, yet slow to ensure that U.S. producers have appropriate access to the world marketplace. U.S. producers need to be first priority.

6. Consideration by the USDA of all possible options toward resolution of producer concerns over the use of the USDA Grade Stamp on imported meat and animals.

Our 11-point directive calls for the resolution of a list of conditions before trade with Canada is resumed. This list includes "USDA grades and stamps not be allowed on any imported beef product."

While Article 3 of the General Agreement on Tariffs and Trade and subsequent agreements prohibit the disallowing of USDA grade stamps on imports, NCBA is asking that USDA recommend legislative action or regulatory changes that do not interfere with our international commitments.

7. In development of a national animal identification system, focus the efforts of USDA staff on allocation of premises identification and allow the industry to manage producers’ animal ID information to meet our nation’s animal health requirements.

NCBA members continue to be concerned that USDA’s desire to develop a national animal identification program fails to consider the use and value of a cooperative working relationship with private industry. NCBA policy prevents us from supporting government-owned and -managed databases for animal movement that have the potential to expose confidential business information to others.

House Passes Death Tax Repeal: America’s cattlemen are thanking members of the U.S. House of Representatives who voted "YES" on H.R. 8, the Death Tax Repeal Permanency Act of 2005. Introduced in February by Rep. Kenny Hulshof (R-MO) and Rep. Bud Cramer (D-AL), the legislation calls for full permanent repeal of the Death Tax. The bill passed the House yesterday by a vote of 272-162. The Death Tax hits with a devastating blow of up to 55 percent in taxes on the entire operation when a family member dies. In an asset-rich and cash-poor business like ranching, the appraised value of rural land is extremely inflated when compared to its agricultural value. Many cattle producers are forced to sell off land, parts of the operation, or the entire ranch to pay off tax liabilities. Votes are expected in the fall on legislation in the Senate, S. 420, introduced by Sen. Jon Kyle (R-AZ). NCBA will continue its support of these efforts to fully repeal the Death Tax.

CDC Report Shows E. coli Illnesses Decline in 2004: A report released by the Centers for Disease Control and Prevention (CDC) in collaboration with the Food and Drug Administration (FDA) and USDA showed that the overall incidence of E. coli O157:H7 cases has declined 42 percent since 1996. The CDC also reports that the drop in E. coli illnesses meets the U.S. Healthy People 2010 goal six years ahead of schedule. CDC says "these improvements likely reflect industry efforts to reduce E. coli O157 in live cattle and during slaughter." In January 2003, NCBA hosted the Beef Industry E.coli Summit which brought all sectors of the beef industry together - from cow-calf producers and feedlot operators, to packers and processors, to retailers and foodservice providers - with the common goal of improving food safety. America’s beef producers have pledged to reduce and eventually eliminate E. coli O157:H7, and today’s news is proof positive that the measures we’re putting in place are working. The full report, "Preliminary FoodNet Data on the Incidence of Infections with Pathogens Transmitted Commonly Through Food" is available online at www.cdc.gov.mmwr.

Ag Groups Rally for CAFTA Passage: Leaders in agriculture from around the nation joined U.S. Agriculture Secretary Johanns on April 11 to support passage of the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR). Participants represented a broad coalition of more than 50 organizations strongly committed to passage of the agreement, including the NCBA. Also this week, the Senate Finance Committee hosted a hearing on the CAFTA-DR trade agreement on Wednesday, April 13. Next week, the House Ways & Means Committee will host a hearing April 21. NCBA strongly urges all members to contact their member of Congress and push for final passage of this win-win agreement for U.S. beef. For information on how to help with this effort, or to get more information including fact sheets, and analyses on how the CAFTA-DR impacts cattlemen, visit NCBA’s web site at http://hill.beef.org, or go to the Office of the U.S. Trade Representative online at www.ustr.gov and click on the CAFTA-DR Briefing Book.

PLC Members Testify on Grazing Challenges: Also on Wednesday, the House Resources Subcommittee on Forests and Forest Health held an oversight hearing on Management Challenges for Grazing and Range Conservation in the Forest Service and Bureau of Land Management. PLC President Mike Byrne (CA cattleman), Bob Skinner (OR cattleman) and Jim Chilton (AZ cattleman) testified. Testimony highlighted challenges being faced by today’s ranchers such as Endangered Species Act reform, use of vacant grazing allotments, and our opposition to grazing permit buyout programs. For more information, go to the committee’s web site at: http://resourcescommittee.house.gov

USDA Surveillance for BSE: USDA continues its enhanced BSE surveillance program which began June 1, 2004. To date, 314,394 tests have been conducted with no positive cases reported. APHIS’s goal is to test as many cattle from the high-risk population as possible in a 12- to 18-month period. Testing 268,500 animals can detect BSE at a rate of 1 in 10 million adult cattle at a 99 percent confidence level.

Media Contact:

Tanya Augustson or Karen Batra at 202-347-0228; taugustson@beef.org or kbatra@beef.org

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.

For more information, please visit our web site at hill.beef.org.

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