Cattlemen's Capitol Concerns
August 23, 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.

COOL Comments:  NCBA submitted comments this week to USDA’s Agricultural Marketing Service (AMS) on the mandatory country-of-origin labeling (COOL) law due to be implemented September 30, 2008.  In its comments, NCBA:
- reinforces producers’ belief that, as a marketing program, COOL should be producer-driven and not mandated by the government;

- takes issue with the misconception that COOL can somehow offer the consumer extra assurances of food safety;

- points out the disparity of exempting food service, processed foods and poultry from complying with mandatory COOL; and

- suggests that COOL labels be more visually appealing and recognizable to the consumer as part of the effort to “brand” our product.

“NCBA producers work everyday to supply the United States – and the world – with our safe, nutritious, delicious, and affordable beef,” says NCBA President and North Carolina Cattleman John Queen in NCBA’s comments. “We support the promotion of our high quality beef and support consumers having the best information about our products. We do not support misleading Federal mandates. We do not support inefficient and ineffective regulatory burdens that provide little to no benefit. We strongly urge USDA to adopt practical and workable rules that give consumers usable information.”

NCBA is supportive of the compromise language developed by the House Agriculture Committee as part of the 2007 Farm Bill (H.R. 2419) to address recordkeeping concerns for producers.  “While not ideal,” says Queen, “the compromise language is an improvement over the current law.”

Korea Announcement Expected:  USDA is awaiting a response from the South Korean government to its audit report on the U.S. plant that recently sent bone-in product to Korea.  According to media reports, South Korea's ag minister has said the country is deciding whether to resume imports of U.S. beef in the near future.  The decision will be based on Korea’s satisfaction with USDA's official report of the incident, and the implementation of any potential corrective measures that might be necessary.

Russian Trade Audits in September:  Russian officials are expected to visit the United States in early September to conduct a series of audits that would finally lead to the resumption of beef trade with Russia. Ongoing discussions between the Office of the U.S. Trade Representative (USTR), USDA and Russian officials have provided very significant breakthroughs regarding U.S. efforts to get our beef back into Russia.

In November 2006, Russia agreed to resume imports of U.S. beef, but there has been no movement since then. In fact, at that time, Russia agreed that it would accept an import protocol that included no age or product restrictions upon U.S. receipt of its OIE “controlled risk” status. The hold-up for the past nine months has simply been the inability to get Russian veterinary officials to the United States to conduct a series of audits that would lead to the resumption of trade.

NCBA is encouraged by the fact that this recent dialogue between government officials may finally facilitate the last step in this process toward regaining access for U.S. beef in the Russian market.  In 2003, Russia was the fifth largest market for U.S. beef and beef product exports in terms of quantity, and the seventh largest in terms of value at $53 million. At present, Russia is the second largest beef importing nation in the world, behind the United States and ahead of Japan, and is forecast to import more than 900,000 metric tons in 2007.

IT’S AUGUST RECESS!:  Congress is out for the August recess.  Both the House and Senate are scheduled to reconvene September 4.  August recess is a great time to meet with your legislators to help educate them about how the issues they are debating in Washington affect producers in the countryside.  Whether by attending town hall meetings hosted by the legislator, or by inviting your member of Congress to meet face to face, take advantage of this time when legislators are back home. 

There are several issues scheduled for consideration when Congress reconvenes, which include the following:

- Senate Farm Bill,

- House and Senate conference on the energy bill, and

- Continuing House discussions on expanding federal jurisdiction within the Clean Water Act.

Farm Bill – NCBA views the Farm Bill that was approved in the House as a good start.  Of issue for cattlemen are the payment caps and limitations on Farm Bill conservation programs.  An Adjusted Gross Income (AGI) cap of $1 million was established for participation in all programs.  Any producer having an AGI more than $1 million will be ruled ineligible for program participation.  Also, a payment limitation of $60,000 per program, per year, was placed on all Farm Bill programs.  NCBA believes that these caps and limitations compromise the goals of voluntary conservation programs and should be removed from the bill.

Energy – The House and Senate have taken different approaches to expanding renewable energy policy.  The Senate bill includes an increase in the Renewable Fuels Standard (RFS) to 36 billion gallons by 2022, setting a defacto mandate for feedgrain-based ethanol of 15 billion gallons by 2012.  The House bill does not include an increase to the current RFS.  These two bills are expected to be worked out in conference following the August recess.  As the conference committee meets, NCBA will urge committee members to oppose the inclusion of any increase in the RFS for feedgrain-based ethanol in the conference report.  

Expansion of the Clean Water Act – Rep. James Oberstar (D-Minn.) has introduced H.R. 2421, the Clean Water Authority Restoration Act (CWARA), which will significantly expand federal jurisdiction of the Clean Water Act.  Sen. Russ Feingold (D-Wisc.) recently introduced companion legislation (S.1870) in the Senate.  These bills will redefine “Waters of the United States” by doing away with the requirement that such waters be “navigable” in order to be regulated.  Changing this definition will allow every pond, stream, creek bed, drainage ditch, prairie pot hole, drain tile or any other wet spot on your property that might contain water at some point in time within the year to fall under federal jurisdiction.  NCBA is working with a large coalition of agriculture groups to defeat this legislation.  ***See our new full-color fact sheet on this issue at www.beefusa.org!

Contacting your legislator is easy and often involves making a single phone call.  Legislators appreciate hearing from you – their constituents – so take advantage of the August recess and express your opinion on the issues that matter to you.

USDA Awards Millions for Renewable Energy Projects: On Tuesday, August 21, Agriculture Secretary Mike Johanns announced the award of $97 million in guaranteed loans to help businesses in Georgia, Illinois and North Carolina create jobs and develop renewable energy systems.  "These funds are part of USDA's ongoing commitment to bring greater economic opportunities to rural citizens," Johanns said. "They will help rural communities create jobs and strong, competitive business enterprises."

Clean Burn Fuels LLC, in Hoke, County, N.C., is approved to receive $10 million from the Section 9006 program and a $25 million B&I loan guarantee to construct a new ethanol plant that is expected to produce 60 million gallons of ethanol per year. Blackhawk Biofuels LLC, Freeport, Ill., is approved for a $7.5 million Section 9006 loan and a $20 million B&I loan to build and operate a 30-million-gallon biodiesel facility. Appling County Pellets, Savannah, Ga., is approved to receive a $10 million Section 9006 loan and a $9.5 million B&I loan to produce up to 130,000 metric tons of wood pellets to be sold in domestic and international markets. National Trail Biodiesel, Newton, Ill., also approved to receive a $10 million Section 9006 loan and a $5 million B&I loan to build and operate a 30-million-gallon-per-year biodiesel production facility in Jasper County, Ill.

Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov .

NCBA’s Western Regions to Hold Joint Meeting: Cattlemen from across the Western United States are invited to attend a joint meeting of the NCBA Western regions, September 28 and 29 in Jackson Hole, Wyo. NCBA Region V includes the states of Colorado, Idaho, Oregon, Montana, Washington and Wyoming, while Region VI is made up of Arizona, California, Hawaii, Nevada, New Mexico and Utah. Cevin Jones, Region V policy vice president from Eden, Idaho, and Greg Moore, Region VI policy vice president from Wagon Mound, N.M., will chair the meeting.

The NCBA Region V and VI meeting is being held in conjunction with the annual meeting of the Public Lands Council (PLC). The PLC is an organization of public lands ranchers throughout the West, formed by the National Cattlemen's Beef Association, American Sheep Industry and Association of National Grasslands. Registration deadline is September 7. A full meeting agenda, along with hotel and registration information, is available at www.beefusa.org, under the “NCBA Events” section.

For more details on the PLC Annual Meeting, please visit: www.thepubliclandscouncil.org/plc2/Website.pdf. More information is also available by calling NCBA at 866-BEEFUSA or NCBA Western Field Representative Dan McCarty at (406) 855-2815.

Mark Your Calendars For Annual Convention!:  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: This week’s edition of NCBA’s Cattlemen to Cattlemen airing August 21-25 will include a discussion of the JBS-Swift merger with Steve Kay of Cattle Buyers Weekly. The Cattle Learning Center will show you tips on how to manage shipping fever in your cattle herd, and an update is provided on the foot-and-mouth disease situation in Great Britain. Sherry Hill of American National CattleWomen also stops by to discuss the 2007 National Beef Cook-off in Chicago.   

In the next episode airing August 28 through September 1, Kevin Good of Cattle-Fax discusses the fall harvest outlook for corn and other feedgrains, as well as the expected impact on fall calf prices. The Cattle Learning Center travels to Texas for a look at the importance of proper bull development with experts from Purina Mills. You’ll also learn about the beef checkoff’s role in improving beef tenderness, and see how the Young Cattlemen’s Conference has been developing cattle industry leaders for almost 30 years.    

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.

Look for our NEXT CCC on September 6, 2007:  Due to the continued Congressional recess and the pending Labor Day holiday, NCBA's Cattlemen’s Capitol Concerns (CCC) will take a brief hiatus. We hope you are enjoying these last few days of summer!  Look for the next information-packed edition on Thursday, September 6, 2007.

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.