2007 CCC Archive
Cattlemen's Capitol Concerns
December 20, 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.
Congressional Schedule: Both houses of Congress have recessed for the holidays. The House of Representatives is scheduled to reconvene on January 15th. The Senate is scheduled to reconvene on January 22nd.
FARM BILL UPDATE: The U.S. Senate passed its Farm, Nutrition and Bioenergy Act of 2007 (H.R. 2419) late Friday, December 14th by a vote of 79 to 14. Like the version passed by the House of Representatives earlier this summer, the Senate bill contains some improvements for cattlemen, such as language which makes modest improvements to the country-of-origin labeling (COOL) law. Additionally, provisions in both bills allow for interstate shipment of state-inspected meat and establish a permanent disaster assistance program.
- Country-of-Origin Labeling: Language in the Senate bill helps alleviate the paperwork burden on producers and also adds macadamia nuts, goat meat, and chicken to the list of covered commodities. In its comments to USDA’s Agricultural Marketing Service on the mandatory COOL law set to be implemented in September 2008, NCBA articulated that, as a mandatory law, COOL exempts too many products. “While the current law is far from perfect, the compromise language in the Farm Bill is an improvement for cattle producers,” says NCBA’s Vice President of Government Affairs Jay Truitt.
- Interstate shipping: Language in the Senate bill is being supported by consumer groups while still allowing for the movement of meat products across state lines from state-inspected facilities. NCBA policy supports the provision as a way for state-regulated businesses to compete in interstate commerce. “This will provide a great opportunity for cattle producers and small local businesses to market branded beef products to a wider audience,” says Truitt. “This action by Congress will help foster entrepreneurship and add new competition in the processing sector.”
- Disaster Assistance: A permanent disaster assistance program was created and funded in the Senate Farm Bill. This program would take the current Livestock Indemnity Program and Livestock Compensation Program and create a similar program that will operate on a permanent basis, as opposed to the current ad hoc system.
“Ranchers struggle with difficult management, movement and sale decisions in the midst of a disaster, and that situation is worsened by the uncertainty of whether or not Congress will be able to provide any meaningful assistance,” says Truitt. “NCBA supports programs that are permanent in nature as opposed to previous approaches of providing producers with assistance on an ad-hoc basis well after a catastrophic event.”
- Conservation Programs: Funding for conservation programs was included in the Senate Farm Bill, but most of that funding is allocated to the Conservation Stewardship Program (formerly the Conservation Security Program) and the Wetlands Reserve Program.
In the House bill, the budget for the popular Environmental Quality Incentives Program (EQIP) increased to $2 billion per year over the life of the bill. The House bill also broadens eligibility for EQIP funds to include custom feeders and livestock markets. NCBA will be urging conferees to consider a final conservation title that more closely resembles the House-passed version in this regard.
NCBA will also urge conferees to fix the Adjusted Gross Income (AGI) cap and payment limitations for conservation programs that exist in the House Farm Bill. This language would make many ranchers ineligible for Farm Bill conservation programs. “The goals of voluntary conservation programs are compromised when artificial caps and limits are applied,” says Truitt. “Cattlemen will urge the conference committee to exempt cost-share programs such as EQIP from the AGI caps and payment limitations.”
- Tax Incentives for Conservation Easements: Included within the tax title of the Senate-passed Farm Bill is language that would permanently extend a beneficial tax incentive for donations of conservation easements. This provision permanently establishes tax credits for landowners who voluntarily put easements on their property. “Along with our Farm Bill conservation programs, this legislation will help ranchers and other landowners implement and maintain long-term conservation projects on their land,” says Truitt. “It will help private landowners keep agricultural lands in productive use, while protecting fish and wildlife habitats, and conserving our natural resources.”
NCBA Members’ Voices Prevent Damaging Farm Bill Amendments: In good news for cattle producers, many harmful amendments aimed at manipulating the business environment for cattle producers, were either defeated or withdrawn from consideration during debate on the Senate Farm Bill.
- The Tester business justification amendment was defeated by a vote of 40-55. This amendment would have eliminated the ability for packers to use “business justification” as a rational for paying premiums to producers for value-added cattle.
- The Grassley amendment, which would subject producers to even more oversight and regulation by establishing a competition task force was considered non-germane to the Farm Bill and therefore was not allowed for consideration.
- The Enzi captive supply amendment, which would outlaw the ability for cattle producers to engage in confidential, one-on-one business deals with prospective buyers, was not among the listed amendments put forth for consideration.
- The Coburn amendment which would require that 66.66 percent of a producer’s income come from the farm in order to participate in EQIP was withdrawn from consideration.
- The Harkin competitive injury amendment would have based lawsuits under the Packers and Stockyards program on a matter of “fairness,” which is not defined. This amendment was not introduced.
“We were fortunate to have a lot of our cattle producer-members weigh in on these issues with their Senators, and it paid off,” says Truitt. “We’ve cleared some hurdles, but we still have a great deal of work to do as the bill moves through conference.”
Farm Bill Conference Discussions Expected in January: While Congressional staff will be working on the Farm Bill after the first of year, conferees have yet to be named, and no further movement is expected until January.
For cattlemen, NCBA’s top focus will be to remove language in the Senate bill which bans the ownership of cattle by packers. “NCBA policy supports a competitive, free-enterprise market,” says Truitt. “It is unfortunate that the Senate chose to include legislative language that puts the government – not the cattleman – in charge of how cattle are marketed. This provision must be removed so that the heavy hand of government does not interfere with a cattle producer’s ability to provide the beef products that consumers want.”
Appropriations: A final Omnibus Appropriations bill was passed by Congress this week. For cattle producers hurt by floods, wildfires, drought and other natural disasters, $600 million was allocated to agriculture disaster assistance programs. Also, the eligibility date for disaster assistance coverage was extended to include producers who faced hardships after February 2007. The eligibility dates for the Crop Disaster Program, the Livestock Compensation Program (LCP) and Livestock Indemnity Program (LIP) were extended to December 31, 2007. In the emergency supplemental bill passed earlier this year, Congress included agriculture disaster assistance, but the cut-off date for eligibility was previously February 28, 2007, which excluded producers who experienced losses this year.
For public lands ranchers, a provision was included to allow for categorical exclusions to help agencies streamline their environmental compliance for permit issuance. The provision will help the Forest Service issue more permits as it struggles to meet environmental documentation obligations. NCBA and the Public Lands Council have worked for years to ensure that the livelihood of public lands ranchers is not threatened because a grazing permit is interrupted to complete analysis required under the National Environmental Policy Act (NEPA).
Of concern to cattle producers, the following resulted from consideration of the final Omnibus package:
- A provision was included which prevents USDA from collecting fee-for-service for horse processing. NCBA opposed 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.
- A provision was included that prohibits funding for the Administration’s demonstration project to allow Mexican trucking unfettered access to the United States outside of the border commercial zones. Under NAFTA, the Administration was to implement the program to broaden the transportation access for Mexican trucks. This program was put off until this year, and now, there is no funding to allow the program to move forward. For cattle producers, this action could have unintended consequences as Mexico is threatening retaliatory action. Mexico is currently our largest beef export market.
- Funding was not included for the Livestock Marketing Information System. The Livestock Marketing Information Center (www.lmic.info) has provided economic analysis and market projections concerning the livestock industry since 1955. This development will make it difficult for the LMIC to continue its economic analysis of the marketing side of the industry. NCBA will work to support their funding requests for Fiscal year 2009.
President Signs Energy Bill Calling for Increase in RFS: President Bush signed into law yesterday H.R. 6, the Energy Security and Independence Act of 2007, mandating that 36 billion gallons of renewable fuels be produced by 2022. Fifteen billion gallons of fuel are to come from grain-based sources such as corn.
The previous Renewable Fuel Standard (RFS) calls for production of 7.5 billion gallons by 2012. President Bush said the new law represents “nearly a fivefold increase over current levels.” NCBA member policy opposed increasing this government mandate because of the negative impact the mandate would have on corn prices and supplies.
“We’re not saying, ‘let’s hit the breaks’ on ethanol production. We’re saying, ‘let’s take our foot off the gas’ when it comes to increasing the mandate even more,” says Jay Truitt, NCBA’s vice president of government affairs. “Allow the marketplace to become a factor in the growth of this industry, and allow the livestock sectors’ concerns to be considered… With corn prices trading above $4.00 for the foreseeable future, the livestock industry is facing some significant adjustments now that the government has stepped into the marketplace.”
President Signs Peru Agreement: President Bush and Peruvian President Alan Garcia signed the Peru Trade Promotion Agreement (PTPA) last Friday. For U.S. cattle producers, the PTPA serves as a model trade agreement by eliminating duties on high quality beef, providing duty-free tariff rate quotas (TRQs) on standard beef cuts, implementing import measures consistent with OIE guidelines, recognizing the U.S. beef inspection system as equivalent, and breaking down pre-existing Sanitary and Phytosanitary (SPS) and technical barriers.
NCBA now looks to Congress to pass pending agreements with Colombia and Panama, which could prove to be equally beneficial for U.S. cattle producers. In his remarks last Friday, President Bush said, “I urge members of Congress to continue on this path as they consider agreements with two other important partners in the region: Colombia and Panama…It is vital that Congress send a strong message that the United States of America is committed to advancing freedom and prosperity in our neighborhood and approve these agreements with strong, bipartisan majorities.”
Congress Passes One-Year AMT Patch: Congress has finalized and passed legislation calling for a one-year “patch” for the Alternative Minimum Tax (AMT). Although the AMT was originally intended to target only the highest income earners, it was not indexed to inflation. It is estimated that without Congressional action, an additional 23 million taxpayers would have been saddled with the burden of paying the tax in 2007. NCBA policy supports a full repeal of the AMT, and NCBA Washington staff applauds this action by Congress to alleviate some of the tax burden on cattle producers.
Don’t Miss the 3rd Annual NCBA-PAC/PEF All-Breed Bull and Horse Auction! Held in conjunction with the 2008 Cattle Industry Convention & Trade Show, the NCBA-PAC/PEF All-Breed Bull and Horse Auction offers convention attendees a chance to purchase some of the best genetics and seed stock in the nation – and support NCBA-PAC at the same time!
The auction is scheduled for 6:30 pm on Wednesday, February 6, 2008, at Booth 101 in the trade show at the Reno Sparks Convention Center.
Thanks to those outstanding operations that have contributed to this exciting event so far, including:
- Coldwater Cattle Company - Holly Springs, Missouri
- Dalebanks Angus Ranch - Eureka, Kansas
- Gardiner Angus Ranch - Ashland, Kansas
- Genex Cooperative - Shawano, Wisconsin
- Marshall Cattle Company - Burlington, Colorado
- One Penny Ranch - Foley, Minnesota
- Ridgefield Farm, LLC - Dahlonega, Georgia
- Seven L Ranch - Devers, Texas
- Thomas Angus Ranch - Baker City, Oregon
- Wulf Limousin Farms - Morris, Minnesota
- Yon Family Farms - Ridge Spring, South Carolina
Donators receive national marketing for their operation through the National Cattlemen's Magazine, pre- and post-convention exposure to all NCBA members in a sale catalog distributed at convention, their name displayed prominently at convention events, a ribbon badge signifying their donation, and also VIP passes to the NCBA-PAC event featuring Tracy Lawrence on Friday evening!
It isn't too late to join this exceptional group! Contribute to the 3rd Annual NCBA-PAC/PEF All-Breed Bull and Horse Auction by contacting Lindsay Bowman at 202-347-0228 or lbowman@beef.org by January 4, 2008!
2008 Cattle Industry Annual Convention, February 6-9!: 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.
Stay informed on issues affecting your business by attending the Beef Industry Issues Forums. On Thursday morning, February 7th, we’ll cover the following issue areas: New Product for New Consumers; Tenderness, Instrumentation, and feed additives; Activism and the need for Ag to work Together; Water Issues; and Globalization - Where will beef be produced and where does the United States fit? For a complete schedule of events or to register for the convention please visit our website at www.beefusa.org.
NCBA to Hold 2nd Annual Career Fair at 2008 Annual Convention & Tradeshow: After last year’s success of the first-ever career fair, NCBA is proud to host the event again at this year’s convention in Reno.
The Cattle Industry Convention and Trade Show is one of our largest cattle industry events, creating an opportunity for the industry to develop recruiting partnerships, and we’re expecting a number of college students and future business leaders to attend! Employers of all types with open positions are encouraged to participate! Whether you want to target a handful of college students or you want to conduct a nationwide search, the 2008 Career Fair will simplify your recruiting efforts and help you find and hire the right people—fast!
NCBA’s Human Resources Department and AgCareers will host the Career Fair on Thursday, February 7th, 11:00am - 2:00pm, in the Tradeshow Lounge. Employers interested in participating just need to send a representative to man a FREE table! If you are interested in being a part of this unique opportunity, please contact Erica Miller at 202-347-0228 or emiller@beef.org for more details.
Take Advantage of Your NCBA Member Benefit with Cabela’s Gift Cards: NCBA is excited about our new member benefit program with Cabela’s – the world’s foremost outfitter of hunting, fishing, and outdoor gear. Exclusive to NCBA members: 15 percent off of Cabela’s gift cards from NCBA for your cattle business! They can be purchased through NCBA’s web site at www.beefusa.org. The gift cards are redeemable wherever Cabela’s conducts business - whether in-store, online, or through the Cabela’s catalog.
Don't Miss NCBA’s Cattlemen to Cattlemen: On this week’s edition of NCBA’s Cattlemen to Cattlemen airing December 18-22, we’ll showcase some of our favorite “Day In the Life” stories from 2007. First, we’ll visit Duane Martin’s operation in California; then we’ll head north to Montana, to the Cayuse Land and Cattle Company and the Bill Donald family. In Tennessee, we’ll visit Dell and Nancy King on their operation and stop in on the Groseta’s in Arizona, where Andy Groseta is teaching his daughter Anna how to work in the cattle industry. Finally, we’ll visit 2007 NCBA President John Queen at his beautiful farm in North Carolina.
On next week’s episode airing December 25-29, we’ll feature a viewer favorite: Cattlemen and Cowboys. The story is narrated by America’s favorite cowboy, John Wayne. It tells the beef production story in America and shows how the cowboy way of life evolved from America’s most revered legend to a billion dollar global industry. To order a copy of the show, visit: http://www.nationalcattlemensfoundation.org.
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.
CCC Takes a Holiday: NCBA’s Cattlemen’s Capitol Concerns will not publish over the Christmas and New Year’s holidays. Look for your next issue of the CCC to return on Thursday, January 3, 2008! NCBA’s Washington, D.C. team wishes you a very safe and prosperous New Year!
Media Contact: Karen Batra at 202-347-0228 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.