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).

NCBA in Hong Kong, Urges Global Tariff Reduction: The National Cattlemen have a presence in Hong Kong this week during international World Trade Organization (WTO) negotiations because U.S. cattlemen are well aware this is the key vehicle for eventual global elimination of sky-high tariffs and trade barriers blocking U.S. beef exports. “Tariffs grossly inflate the price of our beef in many international markets, and effectively keep it off the plate of millions of prospective customers,” explains NCBA CEO Terry Stokes. “Pushing for tariff reduction is NCBA’s utmost priority in Hong Kong this week.”  NCBA strongly supports the U.S. proposal for WTO Agriculture Negotiations, which would drastically reduce the tariff burden on U.S. beef.

Today from Hong Kong, U.S. Trade Representative Rob Portman remarked, “The Hong Kong atmosphere may be somewhat infectious. You look here to a city built on a rock, admittedly with a nice deep harbor, that has managed, over time, by embracing trade, to tangibly improve the lives of its citizens, to the point that the per capita income here is among the highest in the world.”

Portman reiterated that agriculture negotiations were the “lynchpin to a successful Doha round.” U.S. cattlemen are urging increased market access first and foremost, and studies show this improvement globally benefits all agriculture. “They tell us that 63 percent of the benefit of the round will come from agriculture,” said Portman. “It's not because it's the biggest part of trade, it's because it's where the biggest barriers are.” Unless we can see market access in agriculture, the key to unlocking the agriculture issue, progress is not expected in the other areas. U.S. negotiators will continue to push hard for a broader market access in agriculture. For detailed information on the Hong Kong talks, go to: http://www.ustr.gov/WTO/Doha_Development_Agenda/Section_Index.html

U.S. Beef Headed to Japan:  Members of the National Cattlemen’s Beef Association (NCBA) are looking forward to the opportunity to once again share U.S.-high quality beef with Japanese consumers. The border re-opening process between the U.S. and Japan has been a lengthy one. NCBA applauds Japan’s move to re-open and is now looking straight ahead to the next steps needed to fully re-open this and all export markets to U.S. beef, including Hong Kong, Taiwan, and more.

Shipments of U.S. beef are expected to be heading to Japan this weekend. Since the re-opening of the Japanese market comes with product limitations on U.S. beef that did not previously exist, NCBA is working to help producers understand the Beef Export Verification (BEV) Program for Japan and the Quality System Assessment (QSA) Program, which will be increasingly important with new export market re-openings.

NCBA has developed a Q&A document to give cattle producers information on capturing this market share and working with these U.S. Programs. NCBA urges producers who work through these requirements, to contact NCBA with any questions. The document if found online at: http://hill.beef.org/pdfs/120805QSAJapan.pdf or www.beefusa.org or call NCBA’s DC office at 202-347-0228 and ask for Jenni Beck.

Cattlemen Urge Co-Sponsors on Manure Bill: NCBA is urging support for a bill that would exempt manure from regulation as a Superfund material.  H.R. 4341, was introduced November 17 by Reps. Ralph Hall (R-Texas) and Roy Blunt (R-Mo.) and currently has 35 co-sponsors.

For cattlemen, this issue could have a tremendous impact. Previously, Superfund regulation of animal manure has been of most concern to large-scale cattle operations.  However, if opponents of animal agriculture are successful in their efforts to bring manure under Superfund regulations, any cattle producer that spreads manure on a pasture or provides it for use as a fertilizer by someone else could be subject to EPA's Superfund laws, originally intended to address hazardous and toxic industrial chemical spills.

All livestock operators should contact their members of Congress and convey that livestock manure is NOT a Superfund material and cattle operations are NOT Superfund sites.  Urge your member of Congress to co-sponsor H.R. 4341 to exempt manure from Superfund Regulations!  To contact representatives directly, producers can visit http://capwiz.com/beefusa, customize the letter provided, and send this message directly to their Member of Congress.

U.S. Beef and Bahrain: This week, the Senate approved the U.S.-Bahrain Free Trade Agreement (FTA) by voice vote.  Last week, the House voted 327 to 95 to approve the FTA. This agreement will immediately grant duty-free access to 98 percent of U.S. agriculture exports including U.S. beef, once it has been officially signed by President Bush.  NCBA is in support of this agreement, which will provide additional market access opportunities for U.S. beef. Right now, many exports of U.S. fresh and chilled beef already enjoy duty-free access to the market.  However, we face tariffs of 5 percent on some products.  These tariffs will be eliminated on day one of implementation of the agreement.

The Bahrain FTA also provides for imports of Bahraini beef and beef products.  While most of these imports currently have duty-free access, the tariffs on other products will be reduced on day-one, and there is a tariff rate quota (TRQ) for certain products. The Bahrain FTA is expected to pave the way for future agreements with other Middle East countries, thereby increasing the international market for high-quality U.S. beef products.  Although Bahrain has not traditionally been a big importer of U.S. beef, the country's tourism business is rapidly expanding, and with this growth comes potential growth in demand for high-quality U.S. beef. For more information on the U.S. - Bahrain FTA please, visit http://hill.beef.org/pdfs/BahrainFTA.pdf

Peru to Lower Beef Tariffs: The bi-lateral trade agreement between the United States and Peru concluded last week is a great export market opportunity for cattlemen says NCBA Chief Economist Gregg Doud. NCBA sees this agreement as a prime example of what breaking down market access barriers and lifting tariffs means for U.S. producers. Historically, Peru was about a $2 million market for us (at 25 percent tariff rates), but with this agreement tariffs go to ZERO on day one of its enforcement. "These are very price sensitive consumers and the fact that this agreement means, essentially on day one, that we'll be able to sell our product at a 25 percent savings to Peruvian consumers is very important to them and us," says Doud. NCBA believes this trade agreement sets a critical precedent as we forge ahead in FTA negotiations with Peru's Andean neighbors Colombia and Ecuador and we urge Peru to immediately reopen its market to U.S. beef.

Mandatory Price Reporting:  Earlier this week, Senators Tom Harkin (D-Iowa) and Chuck Grassley (R-Iowa) released a General Accountability Office (GAO) report on Mandatory Price Reporting (MPR).  The report is basically a review of the MPR program and addresses some administrative details regarding MPR accuracy, completeness and timeliness. NCBA strongly supports the practice of MPR and urges Congress to reauthorize the provision as soon as possible.

For years, NCBA policy has stressed the importance of this legislation, and NCBA members have worked to ensure the law benefits producers and provides producers with the information they need. “Mandatory Price Reporting is a valuable component in achieving transparency in the marketplace by providing more information to producers,” explains NCBA President and Texas cattle producer Jim McAdams. Mandatory Price Reporting requires packers to report to the USDA Agricultural Marketing Service (AMS) daily price and volume information on negotiated and non-negotiated purchases of cattle and boxed beef sales. Packers also report beef exports and imports. The legislation directs the USDA to improve its retail price reports. Volume and quality information are also reported for packer-owned cattle.

During the 1999 legislative session, the cattle industry worked with other meat industry producer groups, packers, Congress and the Administration to develop a consensus on this issue that not only meets NCBA goals, but also could be enacted into law and NCBA will continue to work with the USDA regarding the details of this reauthorization. The Mandatory Price Reporting law expired September 30, 2005, after Congress could not agree to changes in the legislation. Reports say some companies who previously reported prices are continuing to do so voluntarily.

Crowder Confirmation Hearings:  The Senate Finance Committee hosted a confirmation hearing on December 14 for Richard Crowder, nominated to be the next Chief Agriculture Trade Negotiator at the Office of the U. S. Trade Representative. In response to questions from committee members on negotiating sensitive products issues, Crowder said he will closely work with Congress and industry to resolve issues of sensitive products and noted that such issues need to be dealt with alongside all other aspects of negotiations.  NCBA is supportive of Crowder’s nomination and believes he brings extensive experience in the trade arena and an aggressive approach to trade negotiations.  A vote on Crowder’s confirmation is not yet scheduled.

Spill Prevention Regulation:  The Senate Environment and Public Works Committee hosted a hearing December 14 on EPA’s Spill Prevention Control and Countermeasure (SPCC) program.  The program regulates large fuel tanks in an effort to prevent spills on farms or ranches. Richard Owen, a Montana wheat farmer testified on behalf of the Agriculture Coalition which consists of organizations representing farmers, cooperatives, and related businesses. In his testimony, Owen addresses many concerns with EPA’s proposed rule on SPCC which was published in the Federal Register on December 12, 2005.

“In reviewing the history, we do not believe that the original EPA regulations, which became effective in 1974, were ever intended to apply to farms and ranches,” said Owen. “According to a recent USDA study, such requirements would impact nearly 70 percent of all farms and many farmer cooperatives and other agribusinesses. For farmers alone, the cost would be approximately $4.5 billion…Moreover such requirements are extremely impractical in many cases given the unique characteristics of farming in general. The same USDA study also found there is little justification for such requirements in view of the fact that agriculture has a spill history of less than 1 percent.” 

While NCBA is pleased that the EPA proposed to extend indefinitely compliance with its regulations for farms and ranches with an aggregate oil storage capacity of 10,000 gallons or less, we urge the EPA to consider nonadjacent lands as separate facilities for purposes of this rule.  For farms and ranches with aggregate oil storage over 10,000 gallons, EPA has proposed that compliance deadlines be extended to October 31, 2007. Given the little justification, huge cost and impracticality of the SPCC regulations, NCBA further urges the EPA to exclude all farms and ranches from its requirements.

Roadless Areas: USDA and the U.S. Forest Service held the first meeting of the Roadless Area Conservation National Advisory Committee, December 14. The group was recently assembled to provide advice and recommendations to Agriculture Secretary Mike Johanns on implementing the State Petitions for Inventoried Roadless Area Management Rule adopted by USDA last May.  Jeff Eisenberg, NCBA’s Federal Lands Director and Executive Director of the Public Lands Council (PLC) is the representative for our industry on this 13-member advisory group.

Southeastern Livestock Network:  Representatives of the Southeastern Livestock Network (SLN) are in Washington this week visiting with key House and Senate leaders on Capitol Hill, agency officials and Washington-based industry contracts on the issue of animal ID.  The SLN met with House and Senate staff on December 12 and gave them an update on the Southeastern Animal ID Network and explained how the regional system can be integrated into the larger national system.  SLN is owned by the cattlemen’s associations in Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.  SLN’s mission is to “protect producer interests in the National Animal Identification System and provide identification and data management services for cattlemen, auction markets, order buyers, and the entire industry.

Farm Bill 2007:  NCBA is planning to host another Farm Bill Summit in Washington D.C for state cattle association executives on February 23-24, 2005. The USDA’s farm bill listening sessions are now complete and the USDA is working on summarizing feedback from the sessions.  The 2007 Farm Bill will shape U.S. agriculture policy and affect programs used by the U.S. cattle industry. President Bush has made it clear that he intends to be actively engaged in the process and that he will have his own proposal to submit to Congress.

The Farm Bill will set U.S. agriculture policy for several years. NCBA worked actively on the current 2002 Farm Bill, which replaced the 1996 Freedom to Farm bill. Many of the Farm Bill provisions and programs affect U.S. cattlemen, especially those focused on conservation and trade. In the spotlight this year is the elimination of agricultural subsidies, as we move forward during global trade talks. President Bush says he wants to have the subsidy issue settled by 2010 so that the Doha round of World Trade Organization talks can move forward. Funding for conservation programs, such as the Environmental Quality Incentives Program, is also expected to play a larger part in 2007 farm policy. Congress is expected to begin its own work on the bill early in 2006.

The cattle industry’s input is essential to developing recommendations for the next Farm Bill. Cattlemen are encouraged to participate in the process. The more comments USDA has from ranchers, the more likely the policy will reflects our industry’s needs. Comments to the USDA are due by December 30, 2005. Contact our DC office at 202-347-0228 with any questions.

Know A True Steward? During the 2006 holiday season, surprise a well-deserving cattle operation with national recognition for a job well-done! Nominate them for the 16th Annual Environmental Stewardship Award Program (ESAP). Now is the time to acknowledge that local family that constantly gives back to the land, preserving our natural resources for the next generation. Anyone interesting in nominating a cattle producer or submitting an application can contact NCBA’s Washington D.C. office for a copy or download the application online at http://hill.beef.org/esap.

This program recognizes cattle producers who are proven leaders in conservation practices.  Established in 1991 by the National Cattlemen’s Beef Association and sponsored by Dow AgroSciences, LLC, and the Natural Resource Conservation Service, the ESAP provides an opportunity for the beef industry to showcase the stewardship and business practices that exist together on progressive farms and ranches.

Feed Rule Comments:  NCBA is finalizing its comments on FDA’s proposed expansion to their feed rules designed to minimize even further the risk of BSE in the Unites States.  Deadline for comments is December 20, 2005. NCBA encourages all producer organizations to submit comments regarding this proposed rule, “Substances Prohibited from Use in Animal Food or Feed,” Docket No. 2002N-0273 at http://www.fda.gov/ohrms/dockets.

NCBA Career Fair at Convention: NCBA's Human Resources Department will be hosting a Career Fair Booth at the 2006 Cattle Industry Convention and Trade Show.  The booth will be located within the NCBA area of the Trade Show, Booth #2330.  The primary purpose of the Fair is to recruit for open positions at NCBA and in the cattle industry as a whole.  Convention attendees are encouraged to stop by the booth for career training tips, and assistance writing an effective cover letter and resume.  Industry groups, organizations, and producers are encouraged to contact NCBA with information about job openings so that the information can be included in trade show publications and listings.  More information about this exciting initiative will be coming soon!  The Career Fair promises to be a great opportunity for those in our industry to network and make career connections for the future. Contact: Erica Spiegel espeigle@beef.org or 202-347-0228.

NCBA-PAC Team Penning: Also at the upcoming Cattle Industry Convention & Trade Show in Denver this February, NCBA-PAC/PEF will be hosting a team penning competition! That’s right folks, team penning! The evening event will be held on Friday, February 3rd beginning at 6:30pm.  It will include the team penning finals, and a delicious steak fry dinner followed by a barn dance with live entertainment by James Lann and Branded, a talented up and coming country band from Texas.  The event is sponsored by Fort Dodge Animal Health. Space is limited so don’t forget to order tickets when pre-registering for the 2006 Convention.  NCBA Members are also encouraged to ride in the team penning which begins at 8:00am on Friday February 3rd.  All skill levels are welcome!  If you are interested in riding please contact Erin Vincent at 202-347-0228 or evincent@beef.org.

Bull Offerings Keep Mooving Along for NCBA-PAC/PEF Auction:  NCBA’s PAC/PEF is excited to host its first ever all-breed bull auction! Held in conjunction with the 2006 Cattle Industry Convention & Trade Show, the bull sale will take place during the “exclusive trade show hours” on Thursday, February 2 at 2:00pm next to booth #2330.  Attendees will be provided a detailed sale catalogue including pedigree, ultrasound data, and EPD information for each lot (where applicable). Don’t miss your chance to bid on some of the best beef genetics and seed stock in the nation while supporting NCBA-PAC. 

Offerings to date include contributions from:

• Aristocrat Angus Ranch, Platteville, Colo.
• Coldwater Cattle Company, Holly Springs, Miss.
• Colyer Herefords, Bruneau, Idaho
• Ekker Hereford Ranch, Vernon, Utah
• Express Ranches, Yukon, Okla.
• Fink Beef Genetics, Manhattan, Kan.
• Gardiner Angus Ranch, Ashland Kan.
• Leachman Cattle of Colorado, Wellington, Colo.
• Lyons Ranch, Manhattan, Kan.
• Marshall Cattle Company, Burlington, Colo.
• Mound Creek Ranch, Leona, Texas
• Southern Cattle Company, Marianna, Fla.
• Three Trees Ranch, Sharpsburg, Ga. 

To make a donation please contact Erin Vincent at 202-347-0228 or evincent@beef.org.  Donations of seedstock and sale credits will be accepted until Friday, January 13, 2006.

BSE Surveillance:  USDA’s Enhanced BSE Surveillance Program continues having already tested over half million high-risk animals for BSE since June 1, 2004.  As of today, the program has tested 548,786 targeted animals at highest risk for BSE and has found only one confirmed case, evidence that our firewalls are working and the prevalence of this disease in the U.S. is extremely low.  Testing 268,500 animals can detect BSE at a rate of 1 in 10 million adult cattle at a 99 percent confidence level.

Media Contact:
Tanya Augustson or Karen Batra at 202-347-0228; taugustson@beef.org or kbatra@beef.org