Cattlemen's Capitol Concerns
August 2, 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, contact us at 202-347-0228.

Cattlemen Urge “NO INCREASED RFS” on House Energy Bill:  The House is scheduled to debate energy policy later this week.  Of issue to cattlemen will be discussions of the development of biofuels, especially corn-based ethanol.  Currently, H.R. 3221, The New Direction for Energy Independence, National Security, and Consumer Protection Act, does not include any increases to the Renewable Fuels Standard (RFS).  But an amendment could be offered that would increase the RFS for feedgrain based ethanol beyond what is in current law. 

In a letter sent to Representatives this morning, NCBA urged that any amendment to increase the RFS for feedgrain based ethanol be opposed.  “Mandating additional corn-based ethanol production will only serve to exacerbate an already difficult situation for cattle producers across the country,” writes Jay Truitt, NCBA’s vice president of government affairs.  “The corn ethanol industry is obviously no longer a ‘fledgling industry’ in need of government support. For this reason, NCBA policy supports input segmentation of the RFS, and encourages an increase in the cellulosic portion of the requirement, while opposing any increase in the mandate for ethanol derived from feed grains.”

Korean Trade Update: While inspecting a 41,000 pound shipment (1,176 boxes) of U.S. beef shipped to Korea, Korean inspection officials reportedly discovered one box containing bone-in short loin or "T-Bones" which are specifically prohibited in Korea.  In response, South Korean officials have now suspended quarantine inspection of all U.S. beef imports.

“This does not mean the border is closed,” says NCBA Vice President of Government Affairs Jay Truitt.  “But this effectively shuts off our ability to export product to Korea for the time being.  It’s also important to note that this is an issue of trade compliance and not beef safety.  This product certainly would have been acceptable just about anywhere else, including my own dinner table.”

NCBA has asked USDA to send senior level officials to the U.S. plant involved in hopes of expediting the reporting process.  “We need to get back to Korea with the necessary information as soon as possible on how this error occurred,” says Truitt.  “Then we need to develop a protocol that allows U.S. companies to ship product to Korea that meets their specifications.”

In a discussion with reporters, U.S. Agriculture Secretary Mike Johanns reiterated that this was not a safety concern.  "The vertebral column from an animal under 30 months of age is within OIE standards. It would be perfectly okay here, and in any country that is honoring OIE standards it would not be a problem. But we have this interim protocol with South Korea to try to get some beef going. And the vertebral column should be removed, and we acknowledge that."

Johanns also said the United States has shipped approximately 600,000 boxes of beef to Korea. “Korea is actually I think today a larger market than Japan is,” Johanns said. “Of those 600,000 boxes, thereabouts, we've had six boxes where there was some issue of some nature.”

"My hope certainly is that South Korea works with us," he said. "We will work with them. But the real solution to this issue is to go to OIE standards. That's what we're doing, and that's what we're expecting our trading partners to do, and these issues just simply disappear. This would not even be an issue if we were at OIE standards."

House, Senate Approves Drought Assistance Fix:   Both houses of Congress have approved a bill (S. 1716) which will help make livestock producers eligible for livestock assistance programs regardless of whether they had Noninsured Crop Disaster Assistance (NAP) coverage.  In the emergency supplemental passed earlier this year, Congress included agriculture disaster assistance to provide much-needed aid to livestock producers who were dealt a blow by wildfire, drought and other natural disasters. However, due to interpretation of the legislative language, the majority of our nation’s livestock producers would be excluded from any assistance unless they had NAP coverage.  S. 1716 strikes that requirement. 

In a letter sent to Congress on this issue, NCBA said, “Benefits derived from livestock disaster assistance programs have consistently been calculated on livestock losses, and a clarification is needed to ensure that farmers and ranchers will benefit from the aid Congress passed earlier this year. The vast majority of America’s ranchers will be excluded from any assistance unless Congress takes action to reaffirm its intent.”  In positive news for cattle producers, Congress has acted to strike the NAP requirement.  The bill passed the Senate late last week and passed the House on July 31.  It is now headed to the President’s desk for signing.

USDA, DHS Roles Clarified for Animal Health Facility:  The House Homeland Security Committee passed H.R. 1717 on August 1, which authorizes the establishment of the new National Bio and Agro-defense Facility (NBAF).  It is expected that this facility will replace USDA’s Plum Island Animal Disease Center.

As Congress considers this bill, NCBA is urging that the Department of Homeland Security (DHS) be responsible for conducting important counterterrorism research while USDA continues its responsibility for the researching and monitoring of foreign animal diseases. 

“The vital work that has been done at Plum Island over the past 50 years must not be diluted or lost in the broader direction of DHS,” wrote NCBA in a letter sent to Committee Chairman Bennie Thompson (D-Miss.) and Ranking Member Peter King (R-N.Y.).  In response to this and other concerns, the Committee included language in the bill that clarifies USDA’s role in coordinating animal disease research and safeguarding the nation’s animal and plant health.

House Ag Appropriations:  At press time, the House of Representatives is still debating the Fiscal Year 2008 Agriculture Appropriations Bill (H.R. 3161).  Of concern to cattlemen, the current bill will effectively prevent USDA from collecting fee-for-service for horse processing.  NCBA opposes this language 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, the removal of processing as a management option for horses actually poses a greater risk to horse welfare.

Japanese Trade Update: U.S. technical officials, including USDA Chief Veterinarian Dr. John Clifford, are currently in Tokyo for technical talks over the next few days. However, the big news out of Japan on Wednesday, August 1, was Japanese Agriculture Minister Norihiko Akagi's resignation. USDA Secretary Johanns says these technical talks will continue as scheduled regardless, and he does not anticipate a slow-down in efforts to get the market fully reopened.

"Our working relationship with Japan is very, very strong, and it's stronger than a single minister," says Johanns. "So our technical talks will continue. We'll continue working through the issues we have, in this case beef. I'll be very anxious to learn who the new minister is, and like I said, I'll arrange a call to visit with the new minister immediately. And hopefully we can visit face to face in the not too distant future. The working relationship at the staff level and technical level is very strong, and so it hasn't been a problem."

Farm Bill:  The U.S. House of Representatives passed its Farm, Nutrition and Bioenergy Act of 2007 (H.R. 2419), on July 17 by a vote of 231 to 191.  The bill contains many improvements for cattlemen such as increased funding for conservation programs and some modest fixes to the mandatory country-of-origin labeling law (COOL).  But flaws remain within the bill such as an Adjusted Gross Income (AGI) cap and payment limitations for conservation.  This language makes many ranchers ineligible for Farm Bill conservation programs.   

NCBA also worked to oppose any amendments that would alter the competitive structure of the cattle industry.  NCBA policy supports a competitive, free-enterprise market, and the House chose not to include any amendments that would limit cattlemen’s ability to market their cattle.

Within the Conservation Title, the budget for EQIP increases to $2 billion per year over the life of the bill. The bill will also broaden eligibility for EQIP funds to include custom feeders and livestock markets.  On the issue of mandatory COOL, an amendment was included that alleviates most of the record keeping burden for cattle producers and addresses the dilemma of labeling ground beef by designating it from mixed or multiple origins. 

The Senate is scheduled to begin deliberations on the Farm Bill after the August recess. 

Committee Approves Nussle Nomination: The Senate Homeland Security and Governmental Affairs Committee approved the nomination of Jim Nussle to be the next Director of the Office of Management and Budget (OMB).  The Senate Budget Committee, which has joint jurisdiction over Nussle’s nomination, now has 30 days to report the nomination before it will automatically be sent to the full Senate.

Nussle was a Republican member of the U.S. House of Representatives from 1991 to 2006.  He also ran for Governor of Iowa in the 2006 elections.  During his tenure in Congress, Nussle served as Chairman of the House Budget Committee.  President Bush nominated Nussle to succeed Rob Portman as OMB Director in June. 

“We are hopeful the Senate will continue to move this nomination forward and we look forward to working with Jim in this new capacity,” says NCBA Vice President of Government Affairs Jay Truitt.  “During Jim’s sixteen years in Congress, he developed a keen understanding of budget and tax issues, a respect for the legislative process, and a diplomatic approach to managing the priorities of Congress, the Administration and the American people.”

PLC Leadership in Washington this Week:  Officers of the Public Lands Council (PLC) are in Washington, D.C. this week for meetings with agency officials and members of Congress.  PLC President Dave Nelson (Idaho rancher), Vice President Skye Krebs (Oregon rancher), and Secretary/Treasurer John Falen (Nevada rancher) are meeting with members of Congress and agency officials concerning public lands and grazing issues.

ELEVEN New Co-Sponsors Sign on to Death Tax Repeal!:  To help preserve America’s family farms and ranches, NCBA continues its long-standing push for full and permanent repeal of the Death Tax.  H.R. 2380 was introduced on May 17, and currently has 141 cosponsors. 

New co-sponsors, Reps. Richard Baker (R-La.), Dean Heller (R-Nev.), Nick Lampson (D-Texas), Nathan Deal (R-Ga.), Lynn Westmoreland (R-Ga.), John Campbell (R-Cal.), Mike Pence (R-Ind.), Randy Neugebauer (R-Texas), Mary Fallin (R-Okla.), Nick Rahall (D-W.V.) and Steve Buyer (R-Ind.) signed on since publication of last week’s CCC.  NCBA’s producer-members thank these individuals for supporting America’s family businesses!

Currently, a 10-year phase-out of the Death Tax ending in full repeal is scheduled to take effect by 2010.  But the tax is then scheduled to be re-instated in 2011, back to 2001 levels. H.R. 2380 makes the repeal permanent.  With rates ranging from 37 to 55 percent, the Death Tax is a leading cause of the break-up of U.S. family farms.  Too often ranches and farms must be sold to pay the tax bill, and the land is often purchased by developers. 

Similar legislation, H.R. 1586, was introduced by Rep. Mac Thornberry (R-Texas) on March 20th. That bill currently has 76 co-sponsors. NCBA continues to urge all cattle producers to contact their members of Congress about this important issue. Download our full-color fact sheet on this issue at www.beefusa.org.

Mark Your Calendars! The 2008 Cattle Industry Annual Convention and Trade Show

will be held February 6-9 in Reno, Nevada.  The meeting will feature joint and individual meetings by NCBA, Cattlemen's Beef Promotion & Research Board, American National CattleWomen, Inc., Cattle-Fax and National Cattlemen's Foundation.

At the NCBA Trade Show, more than 250 companies will offer attendees a chance to see the latest products and services while networking with other cattle producers. In addition, many booths will feature giveaways, games and prize drawings. Whether you are looking for farm vehicles, fencing, feed supplies, animal health products or the latest in technology, you'll find it right here under one roof.

Education, information, and networking are the cornerstones of Convention.  But it's not all business, there will be lots of time to kick back, relax, and enjoy your mini-vacation in Reno. Bring your family along!  Additional details and schedule updates are posted at http://www.beefusa.org/convcattleindustryannualconventionandncbatradeshow.aspx.

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, August 4 as we recap the Cattle Industry Summer Conference, provide an update on the 2007 Farm Bill, and offer a Cattle Learning Center segment on the benefits of preconditioning calves.

In the episode airing August 7 through August 11, Cattlemen to Cattlemen gathers first-hand perspectives from key Congressional leaders on the 2007 Farm Bill. The Cattle Learning Center also offers tips on de-worming your calves this fall, and Duane Lenz of Cattle-Fax looks at how summer grazing conditions are affecting the cattle inventory.  

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 or to check out past episodes, visit www.cattlementocattlemen.org.

Media Contact: Tanya A. Camarra or Karen Batra at 202-347-0228, tcamarra@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.