Cattlemen's Capitol Concerns: December 4, 2003

Cattlemen's Capitol Concerns

December 4, 2003
The 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 National Cattlemen’s Beef Association (NCBA).

Market Study for Producers Initiated:  Last year, NCBA producer members led an aggressive initiative to encourage Congress to study the livestock and meat marketing complex. This week, NCBA producer members are pleased to hear that the study will soon be underway. The USDA is now taking bids from parties who have the expertise needed to perform this study. Concentration in the packing and retail sectors has been an important policy issue for producers. The study will review possible adverse impacts on livestock producers and current anti-trust and anti-competitive laws and regulations that do not seem to afford adequate protection to livestock producers. The outcome of this study should help producers and policymakers evaluate many of the issues that affect our industry.

NCBA has previously commented on the Grain Inspection, Packers and Stockyards Administration’s (GIPSA) layout of this study. We strongly advised that the study be conducted with the expertise of a leading business school along with the historical knowledge of agriculture economists. NCBA will be thoroughly engaged with GIPSA throughout all phases of the study to ensure that all areas of the livestock and meat marketing complex are covered. USDA took comments earlier this year to organize the study and those comments were incorporated into the study that is now open for bids.

Canadian Trade:  For decades, non-scientific trade restrictions have created barriers in the selling of U.S. feeder cattle, breeding stock, and semen and embryos to Canada. Cattlemen agree that continued testing requirements by Canada for anaplasmosis and bluetongue on our imported cattle should not be tolerated. In response to meetings last week in Ottawa, Canada with NCBA leaders, the Canadian government has announced it has begun a review of current restrictions on U.S. feeder cattle imported into Canadian feedlots.

Canada’s Minister of Agriculture, Lyle Vanclief, responded in a recent statement that: "currently, U.S. feeder cattle imported into western Canada during the summer must be tested and treated to prevent the introduction of bluetongue and anaplasmosis, two livestock diseases that occur in the U.S. and are not present here in Canada. Neither bluetongue nor anaplasmosis pose any human health risk…New scientific evidence emerging at the international level suggests that we could revise our requirements to further increase access for imported U.S. feeder cattle."

Previously, NCBA has sent letters to the USDA reiterating cattle producers’ concerns and desire to remove these non-science based trade barriers. Recently, NCBA President Eric Davis and NCBA CEO Terry Stokes met with USDA Secretary Ann Veneman to discuss the situation.

Healthy Forests is Law of the Land: Billed as the strongest environmental protection law passed in three decades, the Healthy Forest Restoration Act was signed into law by President George W. Bush at a ceremony Tuesday morning at the U.S. Department of Agriculture. Cattlemen are the original stewards of the land, and we have supported this initiative from the start.  Cattlemen are already out there, managing the lands where they graze cattle, and this initiative will provide the additional support to better protect these lands.

The Healthy Forests Initiative will arm local land managers with tools and programs to implement fuels reduction projects which will help prevent wildfires such as those that devastated southern California this fall. These programs will also enhance the safety of rural communities where many cattlemen have operations. Cattlemen will work with agency officials at the local level to implement many of these programs.

Country-of-Origin Labeling: The conference report for the FY2004 Omnibus Appropriations bill was filed last week, and pending final approval from the House and Senate, will contain a delay in funding for implementation of mandatory country-of-origin labeling until September 2006. This action, if approved by Congress, frees U.S. cattlemen from complying with the problematic law for two years while the industry works to develop a workable and beneficial voluntary national labeling program. Producer-members of NCBA aren’t wasting any time and meetings will begin next week.  

COL Comments: Despite the likelihood of delay in implementation, USDA is still seeking comments on the proposed mandatory country-of-origin rule. State affiliates and producers can review the proposed mandatory rule and cost benefit analysis and submit comments via e-mail to cool@usda.gov or send by mail to Country of Origin Labeling Program; USDA Agricultural Marketing Service; 1400 Independence Ave., SW Stop 0249; Washington, D.C. 20250-0249, no later than Dec. 29, 2003. The proposed rule and USDA news release can be accessed on the USDA web site at http://www.ams.usda.gov.

USDA Year-End Update: This afternoon, Agriculture Secretary Ann M. Veneman gave a year-end update on issues affecting cattle producers. In the statement, the Secretary noted, "farm income and agricultural exports should stay strong in 2004, and consumer prices are expected to remain steady…Part of the improvement is due to brighter export prospects. Exports for 2003 are estimated at about $56.2 billion, while the level of agricultural exports for 2004 is forecast at $59.5 billion." Secretary Veneman discussed top agricultural issues affecting cattlemen that were addressed by the Bush Administration this year, including the BSE case in Canada, 2002 Farm Bill, food safety research, healthy forests, nutrition issues, trade issues, and more.

Water Regulations: A recent order by D.C. courts officially ends the litigation challenging the July 2000 Clinton Administration Total Maximum Daily Load (TMDL) rule. Under the Clean Water Act, the TMDL program provides a process for determining pollution budgets for the nation’s waters.  In March of this year, the EPA announced their intentions to withdraw the rule which was deemed "unworkable" based on thousands of comments, and challenged in court by over two dozen parties, including NCBA. Ultimately, Congress passed a law prohibiting EPA from implementing the July 2000 rule, and the National Academy of Sciences issued a report with recommendations for improving the program.

As a result of this week’s court order, landowners are now essentially left with the EPA regulations put in place prior to the Clinton rule. NCBA is now working with the Administration to develop new rules that clarify the respective roles of EPA and the states - especially with respect to nonpoint source pollution - under the TMDL program and other Clean Water Act programs.

KLA Meeting:  NCBA Chief Economist Gregg Doud is in Wichita, Kansas today speaking to attendees at the Kansas Livestock Association annual meeting. Doud briefed meeting participants on recent trade issues such as negotiations with Canada, Mexico, Australia and Central America, and also discussed the recent trends in beef prices.

Media Contact:

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

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