2007 CCC Archive
Cattlemen's Capitol Concerns
December 6, 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.
U.S. Beef Sold to Russia: Although operating under an incomplete export protocol that is still being negotiated, NCBA has received word that U.S. beef has been sold to Russia for the first time since December 23, 2003. “Historically, Russia was the largest market for U.S. beef liver exports, but information regarding this $0.5 million sale is significant and arguably historic,” says NCBA Chief Economist Gregg Doud. “Our understanding is that it may be the first of its kind involving the sale of U.S. whole muscle cuts, thought to be from the round.”
While a sale of this size by itself is not likely to be a market mover, the potential for additional sales will be watched closely. Already one of the world's largest importers of poultry meat, USDA currently forecasts total Russian beef imports at slightly over one million metric tons, probably worth more than $2 billion in 2007, making Russia the second largest beef importer in the world behind the United States.
Russia's dominant position as one of the world's largest exporters of energy has led to explosive economic growth since U.S. beef last had access to Russia, and a huge increase in Russia's demand for animal protein.
Russia is now Brazil and Paraguay's largest beef export market as well as a major market for Argentina, Uruguay and Australian beef. A U.S. beef export sale of this size also suggests that the decline in the value of the U.S. dollar, and strength in the Brazilian Real, is putting some cuts of U.S. grain-fed beef on a competitive footing with Brazilian grass-fed beef in the global marketplace.
House Approves Bill to Increase Mandate for RFS: As Congress returned to Washington this week, energy legislation took the spotlight with deals being brokered on a new House energy bill which passed this afternoon by a vote of 235-181. The bill now heads to the Senate where consideration is expected in the near future.
The “new” bill, H.R. 6, the Energy Security and Independence Act of 2007, turns a blind eye to the concerns of livestock and food producers by requiring the production of 36 billion gallons of renewable fuels by 2022, including a 15 billion gallon mandate for feedgrain-based fuel by 2016. The remainder is to be produced from cellulosic or other advanced biofuels.
Cattle producers have tirelessly argued for a market-based approach to renewable fuels development. But some policymakers have insisted on an increase to the Renewable Fuel Standard (RFS), which currently calls for the production of 7.5 billion gallons by 2012. NCBA member policy is specifically opposed to increasing the government mandate for feedgrain-based ethanol.
“In its current form, this bill does not provide any mechanism to reduce the mandate in the event of adverse weather conditions or infrastructure bottlenecks, which we’ve already seen affect corn production in the past,” said Jason Jordan, NCBA’s manager of legislative issues. “The House of Representatives failed to address how the country will handle demands for corn in the fuel, feed and food industries if corn supplies are inadequate.”
If passed by the Senate, it is likely that President Bush will veto the bill. A Statement of Administrative Policy released today says, “The bill would fragment the market by picking and choosing among fuel types instead of relying on market forces to develop new, more advanced technologies and the next generation of fuels with lower greenhouse gas emissions. Additionally, a new alternative fuel standard should include an effective safety valve, should be technology neutral, and should rely on market innovation instead of excessive statutory prescription…If H.R. 6 were presented to the President in its current form, his senior advisors would recommend that he veto the bill.”
Farm Bill Cloture Vote Expected Tomorrow: A cloture motion on the Farm Bill was filed earlier this week by Senate Majority Leader Harry Reid (D-Nev.). A cloture motion limits debate on a bill and forces a final vote.
This motion is expected to be brought up for a vote tomorrow. The motion needs 60 votes to pass, which is unlikely given that the previous cloture attempt already failed in the Senate on November 16th by a vote of 55-42. In the 2002 Farm Bill Senate debate, cloture votes failed three times before any agreement could be reached and debate could finally continue.
The Farm Bill is currently stalled because the Senate has yet to agree on how many and what types of amendments may be considered as part of their version of the bill - more than 260 amendments were filed. Depending on what happens with the cloture vote tomorrow, there is likely to be little progress made on the Farm Bill until early 2008.
With Peru Passage, Cattlemen Eye Trade Deals with Colombia, Panama: In a positive move for global trade and U.S. agriculture, the U.S. Senate approved the Peru Trade Promotion Agreement (PTPA) on December 4th by an overwhelming vote of 77 to 18.
“Under this agreement, Peru will immediately eliminate duties on high quality beef and provide duty-free tariff rate quotas (TRQs) on standard beef cuts,” says Stacey Satterlee, NCBA’s director of legislative affairs. “With beef production comprising less than 8 percent of Peru’s total agriculture gross domestic product, this market could grow to roughly $15 million a year.”
Like the Peru free trade agreement, deals with Colombia and Panama allow for duty-free treatment of high quality U.S. beef on day one of implementation. Both Colombia and Panama have put in place import measures consistent with OIE guidelines and have agreed to recognize the U.S. beef inspection system as equivalent. These agreements have also broken down pre-existing Sanitary and Phytosanitary (SPS) and technical barriers.
“NCBA cattle-producing members need Congress to step up and pass the Colombia and Panama deals so the U.S. agriculture sector can begin reaping the benefits of these well-negotiated agreements,” says Satterlee. “The best way for America’s farmers and ranchers to achieve prosperity is for Congress to support expanding trade within the global marketplace.”
Ranchers File Comments on Recovery Credits: NCBA and the Public Lands Council (PLC) submitted comments on December 5th to the U.S. Fish and Wildlife Service in support of the Service’s draft recovery credit guidance.
Recovery credit programs measure the conservation benefit of actions taken by producers. Producers are then compensated for that benefit, and the credits can be used to offset adverse impacts to habitats. A pilot project for recovery credits was started by members of the Texas and Southwestern Cattle Raisers Association a few years ago in the area of Fort Hood, Texas. The success of this initial effort has resulted in the Service's proposal to formalize this effort pioneered by ranchers along with other partners.
“Nearly 80 percent of listed species inhabit private lands, with 35 percent living exclusively on private lands. In the West, livestock producers with federal permits control more than 100 million acres of the most biologically diverse private land,” says NCBA and PLC’s comments. “A flexible mechanism such as the recovery credit system, which facilitates wildlife conservation by private landowners is essential if the Endangered Species Act is going to be successful.”
Court Deals Blow to Ranchers With Sage Grouse Decision: Federal District Court Judge Lynn Winmill issued a decision on December 4th that more consideration is needed to decide whether or not the sage grouse should be listed as a threatened or endangered species. On January 12, 2005, a Fish and Wildlife Service (FWS) decision stated that a listing was not warranted. Judge Winmill has remanded the matter back to the FWS for further consideration.
“The NCBA and PLC are deeply dismayed by Judge Winmill's latest effort to manage the Department of the Interior,” says Jeff Eisenberg, NCBA director of federal lands and executive director of the Public Lands Council (PLC). “Ranchers and other land users had banded together to put in place the conservation measures needed to protect the grouse and its habitat. Winmill's decision dismisses these efforts.” PLC and NCBA are working with partners to evaluate the decision and determine what the best course of action is for NCBA and PLC members in response.
Sage grouse habitat often exists on Western rangelands where ranchers graze livestock. If the bird is listed as a federal endangered species, ranchers face increased costs, regulatory delays and land-use restrictions that could seriously impact their operations. NCBA and the PLC have historically supported local conservation efforts as a more viable means for species protection than federal listing. The FWS has said these efforts are proving successful and a formal listing of the bird is not needed.
Senate Committee Moves Climate Bill: The Senate Environment and Public Works Committee passed December 5th the Lieberman-Warner Climate Security Act of 2007 (S. 2191), a bill which directs the EPA to establish a program to decrease emissions of greenhouse gases.
Of interest to cattle producers is language allocating five percent of the Emission Allowance Account for use in “achieving real, verifiable, additional permanent and enforceable reductions in greenhouse gas emissions from the agriculture and forestry sectors.” A large majority of the emission allowance goes to carbon sequestration which will benefit some cattle producers. But .5 percent of the five percent must go to mitigating emissions of nitrous oxide and methane.
"I am not sure there is a lot more we can do to improve methane emissions from enteric fermentation. Cattle producers have made a great deal of progress on this issue in recent years by increasing feed quality, but we’ll likely only be able to make additional progress with more research" says NCBA’s Director of Environmental Issues Tamara Thies. "There are studies that show that nitrous oxide emissions from agricultural lands in arid parts of the United States are not as high as some researchers have claimed. We need more studies on this issue and more research on tools to mitigate emissions."
NCBA will continue to monitor progress of the bill as it moves to the Senate for consideration sometime next year. The House has not acted on this issue yet.
Meet Your NCBA Field Representative! Rachel Aja is NCBA’s Region VI field representative. NCBA members in the Southwest already know Rachel and visit with her often at local and regional cattle industry events.
“Rachel has certainly hit the ground running in this region. She has a lot of great connections,” says NCBA’s Vice President of Affiliate Relations and Member Services Polly Ruhland. “Rachel is an extremely hard and smart worker, and her knowledge of the ranching business in the Southwest is invaluable to NCBA. We’re extremely excited about the membership potential in the Southwest, and Rachel is a huge part of that excitement.”
Rachel lives in Buckeye, Ariz., and represents NCBA in Arizona, California, Nevada, Utah and New Mexico. Rachel grew up in the beef business in Arizona, where her family still ranches. She’s a graduate of the University of Arizona with degrees in communications, journalism, and animal science.
USDA Names Members to Beginning Farmers and Ranchers Advisory Committee:
USDA announced this week the appointment of 20 members to serve on the Advisory Committee on Beginning Farmers and Ranchers. This committee identifies ways to increase participation between federal and state programs to provide joint financing for beginning producers. Committee members also suggest agricultural opportunities that will help beginning farmers and ranchers.
Appointed to the advisory committee for a second year, Richard Cates, Jr. of Spring Green, Wisc. is a NCBA member. Cates directs a school for beginning farmers at the University of Wisconsin and has a cattle operation.
The Agricultural Credit Improvement Act of 1992 required the formation of the committee. Members serve for a two-year term and can be reappointed for up to six consecutive years. The committee meets at least once a year, and the meetings are open to the public.
USDA Announces Beef Promotion Board Appointments: USDA announced today appointments to the Cattlemen's Beef Promotion and Research Board. All appointees will serve 3-year terms beginning February 3, 2007.
The board oversees collection of $1-per-head on all cattle sold in the United States, and $1-per-head equivalent on imported cattle, beef and beef products. In addition, the board contracts with established national, non-profit, and industry-governed organizations to implement programs of promotion, research, consumer information, industry information, foreign marketing and producer communications. More information is posted at http://www.usda.gov/2007/12/0364.xml.
Missouri Cattlemen’s Meeting: NCBA Vice President of Government Affairs Jay Truitt will travel to Springfield, Missouri tomorrow, December 7th, for the 2007 Missouri Cattle Industry Convention & Trade Show, December 6-8. Jay is scheduled to address attendees at the Cattlemen’s Awards Dinner on Saturday evening.
Take Advantage of your NCBA Member Benefit With Cabela’s: Just in time for holiday gift shopping! NCBA has announced a 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, www.beefusa.org. The gift cards are redeemable wherever Cabela’s conducts business - whether in-store, online, or through the Cabela’s catalog.
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.
Join us in Reno for good food, great company and top notch education. Don’t miss the live demonstrations in the Cattle Learning Center Demonstration Arena located on the trade show floor. Curt & Tammy Pate will demonstration low stress cattle handling. Registration for convention is now open. For a complete schedule of events or to register on-line visit our website at www.beefusa.org.
Don't Miss NCBA’s Cattlemen to Cattlemen: On this week’s edition of NCBA’s Cattlemen to Cattlemen airing December 4-8, we showcase some of the 2007 regional winners of the Environmental Stewardship Awards. First, we head to northwest Pennsylvania where we find Paul and Beth Wingard. The Wingards run a 125 acre, intensively managed grazing operation focused on a unique corner of the cattle industry. Then, we visit the Dee River Ranch in Alabama where a brother and sister are running their ranch as a team. And finally, we head to Missouri and the Oak Knoll Ranch where stewardship and conservation go hand in hand.
Continuing our coverage of the 2007 Environmental Stewardship Awards regional winners, next week’s episode airing December 11-15, will profile the Roaring Springs Ranch in Frenchglenn, Oregon where the ranch sits at more than 7,500 feet in elevation. Then, we’ll head to northern California to visit the Yolo Land and Cattle Company. Finally, we’ll head to Kansas and the Alexander Ranch where the owner says he’s in the business of selling used sunshine.
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.
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.