Cattlemen's Capitol Concerns Archive
Cattlemen's Capitol Concerns
April 24, 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.
FDA Releases Enhanced Feed Rule: The U.S. Food and Drug Administration (FDA) has issued its final enhanced cattle feed rule which bars certain materials from all animal feed, including pet food. The rule is scheduled for publication in tomorrow’s Federal Register and is due to be fully implemented on April 25, 2009.
The final rule amends FDA’s existing regulations to prohibit the use of certain materials in the food or feed for all animals. These prohibited materials include the following:
-- The entire carcass of BSE-positive cattle
-- The brains and spinal cords from cattle 30 months of age and older
-- The entire carcass of cattle not inspected nor passed for human consumption that are 30 months of age or older from which brains and spinal cords were not removed
-- Tallow that is derived from BSE positive cattle
-- Tallow that is derived from other materials prohibited by this rule that contain more than 0.15 percent insoluble impurities
-- Mechanically separated beef that is derived from the materials prohibited by this rule
NCBA is still reviewing the rule in order to better understand the implications of this rule for cattle producers, including the potential economic impact. A more detailed analysis of this rule will be reflected in NCBA’s comments.
Korea Agrees to Accept ALL U.S. Beef: Following the release of FDA’s enhanced feed rule, the Korean government agreed to expand their pending trade protocol to include all U.S. beef and beef products from cattle of all ages in accordance with World Organization for Animal Health (OIE) guidelines.
U.S. and Korean officials announced a trade protocol on April 18th that will allow the United States to resume exports of beef to South Korea as early as May 15th.
Prior to December 2003, South Korea represented the third-largest market for U.S. beef and beef variety meat exports, valued annually at $815 million. For U.S. beef producers, South Korea potentially represents a $1 billion market and could grow to be the United States’ top beef customer.
Next Step – Korean FTA?: Assuming trade resumes as planned, NCBA will ask Congress to consider, support and pass the long-awaited U.S.-South Korea Free Trade Agreement (FTA). “For U.S. beef trade, the Korean FTA could be the biggest and most important bilateral trade agreement in history,” says Gregg Doud, NCBA’s chief economist.
In a press statement on April 18th, Senate Finance Chairman Max Baucus (D-Mont) welcomed the announcement about Korea resuming beef trade with the United States, but said he intends to closely monitor Korea’s implementation of the deal.
“I have been clear for years that Korea must provide full market access for all U.S. beef, and I believe this deal can get us there if the Korean government follows through. The proof is in the porterhouse,” said Baucus. “When U.S. beef is once again available in Korean grocery stores, I look forward to working with President Lee and his new government on moving our trade relationship forward. I will closely monitor the implementation of this new import protocol, and I expect great results.”
As the Farm Bill Turns: Meetings of the Farm Bill conference committee continued this week with only modest progress toward finalizing a 2007 bill. At press time, both the Senate and House have approved yet another one week extension now due to expire on May 2nd.
It is unclear whether or not President Bush will let Congress continue to drag this out, and he is reportedly supporting a long-term extension. “There are no signs that the conference committee will reach agreement on an acceptable Farm Bill by Friday,” said Bush earlier this week. “I therefore call on Congress to provide our agricultural producers with the certainty to make sound business and planting decisions about this year's crop by extending current law for at least one year.”
House Agriculture Committee Chairman Collin Peterson (D-Minn.) insists the conference committee is making progress and says Farm Bill deliberations will continue in the hopes of finalizing a new bill. Peterson has called a long-term extension “a bad idea” and “not an acceptable outcome.”
In the meantime, NCBA’s Washington, D.C. staff are on Capitol Hill actively monitoring the conference discussions to ensure that issues of concern to cattlemen are addressed in the final language. These priorities include:
-- Ensure that cost-share conservation programs are adequately funded.
-- Amend or remove the AGI and annual program payment caps in conservation programs so ranchers will continue to be eligible.
-- Maintain the COOL compromise language.
-- Remove the ban on packer ownership.
President Says Colombia Agreement Will Boost Small Business: In a speech given on April 23rd in honor of National Small Business Week, President Bush said as many as 9,000 American businesses – mostly mid-sized and small businesses – that export to Colombia would benefit if Congress were to pass the U.S. Colombia Trade Promotion Agreement.
“I believe that it's in our interests to open up markets for U.S. products and goods and services,” said the President. “I also know it's in our interest to say to the world, treat us the way we treat you.”
President Bush explained that the current trade relationship with Colombia, based on the Andean Trade Preference Act, allows 90 percent of all imports from Colombia to enter the U.S. market duty free. By contrast, Colombia’s average duty on imports from the U.S. is more than 50 percent for key agricultural exports.
“Now, doesn't it make sense to say to Colombia, we value our friendship, but we would like to be treated the way we treat you?,” asked the President. “And that's what the Colombia free trade agreement says…This is a bill that is beneficial to our small businesses and mid-sized businesses. It makes eminent sense to level the playing field.”
Cattlemen remain firm in their commitment to the U.S.-Colombia Trade Promotion Agreement and believe it is one of the best-negotiated free trade agreements for U.S. beef to date. The agreement will provide immediate duty-free access to U.S. prime and choice beef and will remove all other tariffs on beef products over 15 years. Once fully implemented, the Colombian market has potential to equal roughly $10-$20 million a year for the U.S. beef industry.
Colombia Tariff Ticker Displays Rising Costs on American Exports: In related news, the Bush Administration has launched a web “ticker” to display just how much money is being paid to Colombia in tariffs for U.S. products going into their country, while the Colombian products continue to arrive on our shores duty free.
“At a time when Americans are living and working in a strained economy, why is it that Congress has voted to allow Colombian goods to arrive on our shores duty free, but will not vote to give our agricultural products shipped to that country the same status?,” asked Ag Secretary Ed Schafer in a statement today. “Apparently Congress' priorities are not with the American people.”
Since the Colombia FTA was signed, nearly $1 billion in tariffs have been assessed to U.S. products being exported to Colombia. If Congress were to pass the U.S.-Colombia Trade Promotion Agreement, tariffs on more than 70 percent of U.S. agricultural products destined to Colombia would be eliminated immediately. The ticker can be viewed at http://trade.gov/index.asp.
Farm Broadcasters Head to Washington: The National Association of Farm Broadcasting (NAFB) will host its annual Washington Watch meeting beginning April 28th. This annual meeting brings farm broadcasters from across the country to Washington for an intensive agenda of meetings with government groups, members of Congress and industry leaders.
NCBA spokespersons will participate in one of the meeting’s most popular events, the annual Issues Forum on Monday, April 28th. NCBA’s Executive Director of Legislative Affairs Colin Woodall and Chief Economist Gregg Doud will talk to broadcasters about the cattle industry’s most pressing issues including the Farm Bill, pending trade agreements, corn prices and other economic issues, as well as issues related to environmental regulations and conservation programs. The NAFB program agenda is posted at http://www.nafb.com/nafbfiles/wwagenda08.htm.
Don't Miss NCBA’s Award-Winning Cattlemen to Cattlemen: On this week’s episode of NCBA’s Cattlemen to Cattlemen airing April 22-27, we’ll talk with AllFlex USA CEO Brian Bolton about animal identification. We’ll also learn more about marker-assisted selection from a University of California geneticist. Also, we’ll take a spin in a Caterpillar Skid Steer Loader. And just in time for summer, we’ll cook up an easy, fresh recipe that’s perfect for outdoor grilling! Watch this show’s promo at: http://www.cattlementocattlemen.com/uDocs/C2C-042208.wmv
On next 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.
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.
Ask the Experts on NCBA’s Cattlemen to Cattlemen: Have you ever watched NCBA’s Cattlemen to Cattlemen and thought, “I’d love to ask the experts my questions!”? Well now you have the chance! In May, we’ll be bringing you a few special editions of the show, and we’ll be focusing on topics that are important to you and your operation. One of the shows will be sponsored by Dow AgroSciences, and their experts will be on hand to answer your questions about weed and brush control as well as pasture management. A second show will feature experts from Fort Dodge Animal Health, where experts will be taking questions on practical strategies for parasite control.
If you have questions for the experts at Dow AgroSciences or Fort Dodge Animal Health, email us at C2C@beef.org. We’ll do our best to answer your questions on the air!
NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. The show airs Tuesdays at 8:30 p.m. and is rebroadcast Wednesdays at 10:30 a.m. and Sundays at 12 a.m. (midnight). All times are Eastern. 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.
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