Cattlemen's Capitol Concerns

April 26, 2007

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 in your reprint, contact our office at 202-347-0228.

U.S. Beef Could Be Selling in South Korea Next Week:  The most recent U.S. beef shipment could be on South Korean dinner tables very soon.  According to media reports, no bone chips have been found in the 6.4 tons of U.S. beef that arrived in South Korea earlier this week.  The final results of the inspections are expected to be announced tomorrow, April 27, which should allow the beef to hit Korea’s retail sector next week. 

South Korea has rejected three previous shipments of U.S. beef since the country officially “resumed trade” of boneless beef from cattle under 30 months old from the United States in September 2006.  Since then, South Korea has changed its policy to allow import inspectors to reject a single box of beef rather than an entire shipment if a problem is found. This week’s shipment could be the first U.S. beef to reach South Korean consumers since December 2003.

Japan Moves Toward Reasonable Inspection Standards:  U.S. Agriculture Secretary Mike Johanns announced April 24 that the United States and Japan have agreed on two key steps toward expanding U.S. beef trade with Japan.

First, Japan will be conducting additional audits of U.S. beef processing plants. Johanns says he has invited Japan to begin the audits as soon as arrangements can be made. Secondly, after the audits are conducted and Japan’s verification process is complete, Japan has said it will discontinue its requirement of inspecting 100 percent of the boxes of beef shipped from U.S. plants.  According to the U.S. Meat Export Federation, the lifting of this restriction means that U.S. beef exports to Japan could double from current levels, since trade was slowed due to Japan’s arduous inspection and customs process. 

NCBA says this move represents another long-awaited but positive step toward normalizing the trade of U.S. beef with Japan.  “More importantly, this represents a significant technical step on the part of Japan to make its policies consistent with international guidelines, including those of the World Organization for Animal Health (OIE),” said NCBA Vice President of Government Affairs Jay Truitt. 

NCBA anticipates additional positive developments after the OIE votes on May 20 to establish the BSE risk status for the United States as ‘controlled risk.’  “The controlled risk classification recognizes that OIE-recommended, science-based mitigation measures are in place to effectively manage any possible risk of BSE in the U.S. cattle population,” explains Truitt.  “This status is considered favorable in the international community, and should help pave the way for trade in all U.S. beef and beef products regardless of age, as long as specified risk materials (SRMs) are removed.” 

Japanese Prime Minister Visits Washington for Talks with Bush: In related news, President Bush is hosting Prime Minister Abe of Japan today.  The two leaders are expected to discuss the war on terror, progress in Iraq, next steps in the Six Party talks with North Korea, and energy and climate policies.  In addition, it is expected that Bush and Abe will discuss beef trade issues.

In remarks before NCBA’s Spring Conference on April 28^th, President Bush promised cattlemen “When I'm talking to leaders and they've got an issue with American beef, it's on the agenda.”  NCBA has strongly emphasized the need for Japan to move toward compliance with OIE guidelines for beef trade.

Key Senators Push for Expansion of U.S. Beef Trade with Japan:  In a letter sent to President Bush late last week, Senate Finance Committee Chairman Max Baucus (D-Mont.) and 24 colleagues called on the President to resolve Japan’s ban on U.S. beef during the Prime Minister’s state visit.

The letter reads, “As you know, American ranchers and meat processors produce the healthiest and safest beef in the world. Nevertheless, current Japanese import standards severely restrict U.S. beef imports contrary to international scientific standards…In our view, all trading partners, including Japan, should bring their import requirements for U.S. beef into line with the OIE standards and allow trade in beef from animals over 30 months.”

The letter was signed by Senators Max Baucus (D-Mont.), Craig Thomas (R-Wyo.), Barack Obama (D-Ill.), Patty Murray (D-Wash.), Larry Craig (R-Idaho), Maria Cantwell (D-Wash.), Kent Conrad (D-N.D.), Ken Salazar (D-Colo.), Mike Enzi (R-Wyo.), Blanche Lincoln (D-Ark.), Orrin Hatch (R-Utah), Sam Brownback (R-Kan.), Ben Nelson (D-Neb.), Wayne Allard (R-Colo.), Pat Roberts (R-Kan.), James Inhofe (R-Okla), Mark Pryor (D-Ark.), Saxby Chambliss (R-Ga.), Jon Tester (D-Mont.) Mike Crapo (R-Idaho), Chuck Hagel (R-Neb.), Amy Klobuchar (D-Minn.), Norm Coleman (R-Minn.), and John Thune (R-S.D.).

TPA Means Market Access for Beef: The weeks are counting down for Congress to renew Trade Promotion Authority (TPA), set to expire June 30 unless reauthorized by Congress. This "fast-track" authority is extremely important when, after years of negotiations, final trade agreements are ready for passage. TPA assures that after final trade agreements are made, Congress cannot interrupt to make last-minute special interest concessions or amendments. Such activity destroys long-negotiated, collective and intricate agreements between nations as well as our negotiators’ ability to negotiate in good faith.

This week, the President's Export Council said "Failure to renew TPA will severely hinder the U.S. position in the global economy. Our trading partners will hesitate, or even refuse, to enter into trade negotiations with the United States without TPA.''

Between 1994 and 2002, when the President did not have TPA, America’s foreign competitors took advantage of opportunities to expand their presence in the international marketplace. The rest of the world was moving forward, signing trade deals that excluded the United States. In 2002, there were over 150 preferential trade agreements in the world, and the United States was a party to only three (the European Union was a party to 31 and Mexico was a party to 10). U.S. cattlemen are urging that this not happen again.

Other nations view TPA as necessary before they will seriously deal with U.S. negotiators, since it requires Congress to vote up or down on trade agreements without amending them. "If Congress can amend final agreements, it scares off potential negotiators from other nations," explains NCBA Chief Economist Gregg Doud. "We must have TPA renewed this year, or we will lose out on trade opportunities globally.  For example, just today Australia began FTA negotiations with Japan."

If TPA expires, it could also be devastating for World Trade Organization (WTO) talks. WTO Director General Pascal Lamy told press this week that trading partners will consider no renewal of TPA to mean that the U.S. has lost faith in the Doha Round.

NCBA members were leaders in the fight for Congressional passage of TPA in 2001-2002. We will continue to urge Congress for renewal of this important international trade legislation.

Interstate Shipment Legislation: Senators Orin Hatch (R-Utah) and Mike Enzi (R-Wyo.) introduced legislation last week, S. 1150, the New Markets for State-Inspected Meat and Poultry Act of 2007, that would allow for smaller, state-inspected processing plants to ship beef across state lines just like federally-inspected plants. 

“State inspection programs are proven to be as thorough as Federal programs, yet state-inspected meat can’t be shipped even from Utah to Colorado,” Hatch said. “We need to update this unnecessary, unjust ban that puts our small businesses at such a disadvantage.”

Federal law requires the USDA to inspect all meat products, and in the late 1960s Congress created state inspection programs that are mandated to be “at least equal to” the Federal inspection program.  Perishable products — including milk and other dairy items, fruit, vegetables, and fish — are freely shipped across state lines after state inspection. But standard meat products, like poultry, beef, and pork, are prohibited from interstate commerce, despite decades of meeting or surpassing the Federal inspection standards. This bill would remove this prohibition.

Also last week, Senators Herb Kohl (D-Wisc.), Max Baucus (D-Mont.) and Kent Conrad (D-N.D.) introduced similar legislation, S. 1149, in the Senate.  "Removing the current prohibition will help level the playing field for small businesses and spur additional competition in the market place,” said Kohl.  “It will help main street businesses -- who often specialize in local, organic, grass-fed or artisanal products -- meet emerging markets. And it will help livestock producers who want more options for marketing their livestock."

House Votes to Eliminate Horse & Burro Sale Authority:  The House voted 277-137 on April 25 to approve H.R. 249, a bill to eliminate sale authority for the Bureau of Land Management (BLM) Wild Horse and Burro Program. 

NCBA and the Public Lands Council (PLC) opposed H.R. 249 and point to the fact that the BLM has used its authority to sell 346 horses and burros this year alone, saving the agency well over $1 million over the life of the horse.  NCBA and PLC also point out that these sales occur with restrictions in place barring the sale of the horses to processing facilities.  “Congressional elimination of the sale authority would only hurt the agency’s ability to manage horse populations on public lands and would add nothing to animal welfare,” says NCBA’s Director of Federal Lands Jeff Eisenberg. 

The bill now moves to the Senate for consideration.  NCBA and PLC are urging all its rancher-members to contact their Senators and urge them to vote no on this proposal to eliminate the BLM’s Horse and Burro sale authority.

Senate Committee Approves Ban on Horse Processing: In a related development, the Senate Commerce, Science and Transportation Committee approved S. 311, the Horse Slaughter Prevention Act.  This legislation aims to institute a federal ban on horse processing, specifically prohibiting the "shipping, transporting, moving, delivering, receiving, possessing, purchasing, selling, or donation of any horse or other equine to be slaughtered for human consumption."

NCBA, along with over 190 other state and national organizations, opposes this action due to the precedent it could set for banning the consumption of other meats for reasons other than science, safety, or public health. In addition, removing processing as a management option for horses actually poses a greater risk to horse welfare. As many as 90,000 horses annually will need care, food and shelter.  S. 311, and legislation in the House, H.R. 503, both fail to address the problems of costs for care and the unintended mistreatment of these animals in non-regulated rescue facilities.

Superfund Bills Update: Cattlemen continue to urge that livestock manure shouldn’t be consider a Superfund material under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and Emergency Planning and Community Right-To-Know Act (EPCRA).  

S. 807 and H.R. 1398 were introduced March 8 by Senators Blanche Lincoln (D-Ark.) and Pete Domenici (R-N.M.) in the Senate, and Representatives Collin Peterson (D-Minn.) and Ralph Hall (R-Texas) in the House.  These bills will provide that manure shall not be considered a hazardous substance, pollutant, or contaminant under Superfund laws.

There are 95 co-sponsors in the House, with 10 new cosponsors signing on late last week.  They are Reps.  Jerry Moran (R-Kan.), Geoff Davis (R-Ken.), Virginia Foxx (R-N.C.), Doc Hastings (R-Wash.), Mike Rogers (R-Ala.), Pete Sessions (R-Texas), Adam Putnam (R-Fla.), Cathy McMorris Rodgers (R-Wash.), Michael Simpson (R-Idaho), and Robert Aderholt (R-Ala.).  The senate bill has 18 co-sponsors. 

NCBA urges its cattle producers-members to contact Senators and Representatives at their offices by phone, fax or email, and urge them to sign-on!  Download our full-color fact sheet on this issue at www.beefusa.org.

Death Tax: Rep. Mac Thornberry (R-Texas) introduced legislation (H.R.1586) on March 20th to fully and permanently repeal the Death Tax.  The bill currently has 68 co-sponsors.

NCBA has long supported full and permanent repeal of the Death Tax because of the hardship it places on America’s farming and ranching families who wish to pass on their operations to the next generation. 

NCBA urges its cattle producers-members to contact their Congressional Representatives at their offices by phone, fax or email, and urge them to sign-on!  Download our full-color fact sheet on this issue at www.beefusa.org.

USDA Delivers Draft Legislation to Hill Regarding Farm Bill:  On Wednesday, April 25, USDA Secretary Mike Johanns announced the delivery of two legislative drafts to Capitol Hill, regarding the Conservation Title and Credit Title of the Farm Bill. "As we conducted briefings on Capitol Hill with committees and subcommittees, I talked to individual members, and we found that we were being asked quite often whether we planned to put our proposals into legislative language," says Johanns. "We went to work drafting the legislative language that would be the actual implementing language to the proposals."

The legislation regarding the Conservation Title calls for $7.8 billion in additional funding and a restructuring of programs to make them easier to access and administer. They propose to expand the Environmental Quality Incentives Program (EQIP) and increase funding by $4.25 billion. Also included is an expansion of the Conservation Security Program, with an additional $500 million in CSP to expand the number of acres enrolled.

"We are also drafting the legislative language that would implement the rest of the 2007 Farm Bill proposals," says Johanns. "We hope these very detailed legislative drafts of our proposals will prove helpful to Congress as the 2007 Farm Bill takes shape. We're very pleased to have the opportunity to contribute and to be helpful to Capitol Hill."  Both legislative drafts are found on the USDA website, at www.usda.gov.

In Congressional testimony last week, NCBA expressed support for “working lands” conservation programs.  “We want to see these conservation programs continued and refined to make them more producer-friendly and more effective in protecting the environment in a sensible manner,” says NCBA Director of Legislative Affairs Stacey Katseanes.  “Consolidation and streamlining, as suggested in the Administration’s Farm Bill proposal, is one way to achieve that goal.”

NAFB Washington Watch Meeting:  The National Association of Farm Broadcasters will be coming to Washington next week for its annual Washington Watch meeting, April 30-May 2.  Washington Watch hosts farm broadcasters from across the country in Washington for an intensive agenda of meetings with government groups, members of Congress, and industry leaders. 

NCBA is participating in a number of NAFB events including the annual Issues Forum on Monday, May 1.  NCBA spokespersons will be Vice President of Government Affairs Jay Truitt, Chief Economist Gregg Doud, and Executive Director of Legislative Affairs Colin Woodall.  Topics of discussion will include Farm Bill, Trade, Corn Prices and Renewable Energy, Environmental Issues and Tax Reform.  More information is posted at www.nafb.com.

Don't Miss NCBA’s Cattlemen to Cattlemen: Tune into NCBA’s Cattlemen to Cattlemen on RFD-TV at 10:00 a.m. (Eastern time) this Saturday for a look at spring planting conditions and drought forecasts across the United States. Also, we will feature cattle industry news briefs and an extensive report on working with your veterinarian to make better herd health decisions.

On next week’s Cattlemen to Cattlemen episode, beginning Tuesday May 1st, we’ll head to Nebraska to check out how cattle feeding and ethanol production now go hand in hand. Plus – we’ll also take a look at how new technologies are playing an important role in beef production. We’ll also hear from popular beef industry journalist Trent Loos and his proactive efforts on humane horse management.

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 4:30 a.m. and 12:30 p.m., and Saturdays at 10 a.m. All times are Eastern. Make sure YOU tune into NCBA’s Cattlemen to Cattlemen on channel RFD-TV. For more information, visit www.cattlementocattlemen.org.

Media Contact:

Tanya A. Camarra or Karen Batra at 202-347-0228, tacamarra@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.