Cattlemen's Capitol Concerns
August 7, 2008

Contact: Heather Vaughan, 202-347-0228, or hvaughan@beef.org

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 would like to include NCBA’s logo, contact us at 303-694-0305.

EPA Refuses to Waive Renewable Fuel Standards Mandate: Earlier today, the U.S. Environmental Protection Agency (EPA) announced its denial of a petition, filed by the State of Texas, to reduce the Renewable Fuels Standard (RFS) mandate for feed-grain based ethanol. 

“The cattle producers that make up the National Cattlemen’s Beef Association (NCBA) are disappointed with the EPA decision not to grant a waiver from the RFS,” stated Andy Groseta, Arizona cattle producer and NCBA President.  “We had hoped that the Administration would recognize the hardship cattle producers are facing with tight corn supplies and high prices for feed.”

In EPA’s statement, Administrator Stephen Johnson contended that the RFS mandate did not cause “severe economic harm,” and therefore, should not be waived.

“Our industry has suffered a record of nearly $1.5 billion in cattle feeding losses between January and June of 2008, which we believe constitutes the severe economic impact necessary to prompt a waiver from the RFS mandate,” stated Groseta. 

Texas Governor Rick Perry filed the waiver petition in early May, citing the impact that the high costs of corn was having on the livestock industry.  The RFS mandate was increased as a part of the Energy Independence and Security Act of 2007, which was passed by Congress in December, 2007.  In 2009, the mandate for ethanol production will rise from 9 billion gallons to 11.1 billion gallons, and further tighten an already competitive market for corn and feedstock. 

NCBA supports the continued development of renewable energy and biofuels, and places a high priority on creating energy independence for the United States.  However, we believe open competition on the free market is the best vehicle for innovation and development of renewable energy, and believe that demands on our corn crop should be regulated by the marketplace and not government intervention through mandates and subsidies.    

America’s cattle producers deserve a level playing field on which to compete, and NCBA will continue to work towards that goal.

USDA and DHS Hold Public Meetings on Potential Sites for the National Bio and Agro-Defense Facility:  This week, the Department of Homeland Security (DHS) and the Department of Agriculture (USDA) continue their public meetings regarding the Draft Environmental Impact Statements (EIS) on potential National Bio and Agro-Defense Facility (NBAF) sites.  The NBAF is intended to replace the current aged Plum Island facility. USDA would continue conducting foreign animal disease research and testing at the new facility, as well continue their current validation functions and veterinary training programs related to foreign animal diseases, while DHS’s role would be regarding development of advanced countermeasures and facility management.

DHS conducted the draft EIS’s at the following potential NBAF locations: Plum Island, Georgia, Kansas, Mississippi, North Carolina and Texas. The public hearings are to discuss the draft EIS’s and to solicit public input on the final six potential sites. After conducting hearings last week in North Carolina and Kansas, representatives traveled to Mississippi and Texas this week. Next week, they will conclude the process with three meetings in Connecticut, New York and Georgia. Final Environmental Impact Statements are expected to be published in October.

U.S. Beef Ribs Clear Inspection in South Korea:  On Tuesday, August 5, 2008, imported ribs from the United States cleared South Korea’s quarantine inspections.  More than one ton of short ribs, chuck ribs, rib finger, and flanks could reach consumers within a week, according to Korean government officials.

These mark the first U.S. bone-in beef products allowed in South Korea in five years, when all U.S. beef products were banned in 2003 upon the confirmation of BSE in a U.S. cow.  South Korea partially lifted the ban last year for boneless beef from cattle less than 30 months of age, but halted imports once again after bone was discovered in a shipment. 

The two governments reached an agreement in April of this year to reopen the market to U.S. beef cuts, but consumer protests in South Korea halted progress until a a private-sector arrangement to voluntarily limit exports to only beef from cattle less than 30 months of age helped the U.S. reopen the South Korean market for virtually every possible product. 

South Korea was once the third-largest export market for U.S. beef, with more than $800 million in sales in 2003.

USDA Estimates put Farm Production Expenditures at Record Levels in 2007: On Wednesday, August 7, 2008, the U.S. Department of Agriculture (USDA) released statistics showing 2007 farm production expenditures at a record $260 billion.  Total U.S. farm production expenditures rose 9.3 percent from 2006 and nearly 30 percent from 5 years ago.

Increasing petroleum costs drove the increase, with farmers paying 15 percent more for fuel as compared to 2006.  Expenditures on fertilizer, lime, and soil jumped 26 percent, while feed costs rose by 22 percent. 

Don't Miss the Award-Winning NCBA’s Cattlemen to Cattlemen:  On this week’s edition, airing August 12 through August 17, we’ll hear from Executive Director of Producer Education Tom Field about the importance of value added calves.  Plus, we’ll take a look at how proper nutrition can play an important role in starting your calves off on the right foot.  And we bring you an exciting beef recipe with an Olympic flair!

NCBA’S Cattlemen to Cattlemen debuts Tuesday at 8:30 p.m.  The show also airs Wednesday at 10:30 a.m. and on Sunday at 12:00 a.m.  (All Times are Eastern)   Don’t forget, you can watch NCBA’s Cattlemen to Cattlemen online anytime by visiting CattlemenToCattlemen.org.

NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. It 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).

The program’s sponsors include Purina Mills, Fort Dodge Animal Health, Dow AgroSciences, Bayer Animal Health and McDonald’s. 

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

###