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).

Japan Border Re-Opening: U.S. cattle producers are encouraged with today's reports out of Japan that their Food Safety Commission (FSC) has issued its final report regarding Bovine Spongiform Encephalopathy (BSE) and the safety of U.S. beef. NCBA considers the completion of this regulatory review process a big step toward the ultimate goal of re-opening Japanese borders for U.S. beef products. U.S. cattle producers are eagerly awaiting a formal announcement from Japan’s Ministry of Health Labor and Welfare (MHLW) regarding the re-opening of the Japanese market, which according to press reports could occur early next week. “The U.S. produces the best beef in the world and after almost two years, we want Japanese consumers to finally have the chance to enjoy it once again.”   

The re-opening of the Japanese market will come with product limitations on U.S. beef that did not previously exist, with Japan only accepting beef and beef products from animals that are 20 months of age or younger. USDA has estimated that about 35 percent of the U.S. herd could qualify under this limitation, and specific requirements must be met through a U.S. government verification program before the beef is eligible for export.

For U.S. cattlemen to meet export requirements into Japan, cattle would come through a Quality System Assessment (QSA), which is part of the Beef Export Verification (BEV) program run by USDA.  If the border does re-open, NCBA will be releasing a “how to” document for cattle producers regarding beef exports to Japan.

Hong Kong WTO Talks: NCBA Chief Economist Gregg Doud is swamped with preparations for next week’s Sixth World Trade Organization (WTO) Ministerial Conference which runs Dec. 13-18. Doud will be representing the U.S. cattle industry in Hong Kong during this critical phase of negotiations. USTR officials say the biggest barrier to agriculture making headway in Hong Kong looks to be the European Union, who has refused to reduce agriculture subsidies and continues to be inflexible.

NCBA supports the U.S. proposal for WTO Agriculture Negotiations [found online at http://www.fas.usda.gov/itp/wto] that would drastically reduce sky-high bound tariffs on U.S. beef exports found across the globe. For example, U.S. beef exports currently face bound tariff rates of up to 40 percent in Korea, 50 percent in Japan, and 57 percent in the European Union. At this time, the U.S. proposal is the only market access proposal that meets our criteria and would reduce bound tariffs to around 7.5 to 12.5 percent. The proposal set forth by the European Union last week is unacceptable.  Every effort must be made to prevent the noteworthy U.S. proposal from being watered down during talks. Tariff reduction is the core mechanism by which U.S. cattle producers can thrive in the global marketplace, especially since U.S. beef producers receive no domestic supports or export subsidies.

Tax Relief Extension: After an energetic debate regarding tax policy this afternoon, members of the U.S. House of Representatives passed H.R. 4297, the Tax Relief Extension Reconciliation Act of 2005, today by a vote of 234-197. NCBA members from across the country took action on Capitol Hill this week and urged Congressional leaders to support H.R. 4297, which contains several provisions of particular interest to cattlemen.

Section 101 of Title I extends the allowance of nonrefundable personal credits against regular and minimum tax liability through 2006.  Section 117 of Title I extends state and local tax deductions through 2006.  Section 203 of Title II extends the reduced rates for capital gains and dividend income provided for in the Jobs and Growth Tax Relief Reconciliation Act of 2003.  Section 205 of this bill extends expensing of certain depreciable business assets for small business from 2008 to 2010.

The Senate passed its version of tax reconciliation (S. 2020) in November by a vote of 64-33, but it does not contain the provisions on the extension of reduced rate on capital gains and dividend income.  The House and Senate will have to conference the bills to resolve their differences, expected to occur in early 2006.

Tax Legislation in House: Also in tax policy news this week, House members passed H.R. 4096, the Stealth Tax Relief Act of 2005, by a vote of 414 to 4.  This legislation impacts America's small businesses and cattle producers because it extends the increased alternative minimum tax (AMT) exemption amount for individual taxpayers.  NCBA policy supports the elimination of the AMT, and we see this extended relief as a positive step.  This provision, while not elimination, helps provide relief through 2006 by increasing the exemption amount, as well as adjusting the increased exemption for the amount of inflation in 2006.

U.S. Beef and Bahrain: On December 7 the House voted 327 to 95 to approve the U.S.- Bahrain Free Trade Agreement (FTA).  If approved by the Senate next week and signed by the President, Bahrain would be the first Persian Gulf country to implement a deal with the United States. NCBA supports of this agreement as another great opportunity to break down international trade barriers and lower tariffs on U.S. beef going into Bahrain. This FTA is expected to pave the way for future agreements with other Persian Gulf countries, thereby increasing the international market demands for high-quality U.S. beef.

U.S. - Peru Trade: This week the United States and Peru concluded work on a bilateral trade agreement which would expand trade opportunities for U.S. beef and eliminate tariffs. “A Trade Promotion Agreement with Peru (PTPA) will generate export opportunities for U.S. companies, farmers, and ranchers, and help create jobs in the United States,” says U.S. Trade Representative Rob Portman. “Many products from Peru already enter the U.S. market duty-free under the Andean Trade Preference Act (ATPA) – this free trade agreement with Peru will level the playing field and make duty-free treatment a two-way street.” The Bush Administration says the U.S. will continue to negotiate with Colombia and Ecuador in an effort to broaden the trade agreement.

Mandatory Price Reporting:  Sources say a GAO study on Mandatory Price Reporting requested by Senators Charles Grassley (R-Iowa) and Tom Harkin (D-Iowa) could be released sometime soon, possibly before the end of the week. 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.

Farm Bill 2006:  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. Agriculture Secretary Johanns said in regards to the sessions this week, “From what I've heard, I believe that this is a time for the nation to decide whether we continue to rely on a policy structure that was really conceived for a different kind of agriculture 75 years ago…we did gain a lot from the Farm Bill Forums. We heard a lot from all kinds of agriculture.”

Roadless Areas: NCBA producer-members are currently preparing comments for the first meeting of the Roadless Area Conservation National Advisory Committee, coming up next week on December 14. Jeff Eisenberg, NCBA Federal Lands Director and Executive Director, of the Public Lands Council (PLC) will be representing our industry on this 13-member advisory group. The USDA - U.S. Forest Service (USFS) established the committee to provide advice and recommendations to USDA Secretary Johanns regarding the management of roadless areas on national forest lands. This is a unique opportunity for cattle producers to provide input regarding the management of our nation's roadless areas. Whether you've got suggestions on how to handle off-highway vehicle (OHV) use for various purposes or other ideas about accessing and managing roadless areas, NCBA and PLC need to hear from members regarding this issue, contact Jenni Beck at jbeck@beef.org or (202) 347-0228 with your feedback before December 14.

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.

NCBA-DC State Visits:  NCBA’s Director of Environmental Issues Tamara Thies traveled to Nebraska this week to speak to cattle producers during the Nebraska Cattlemen Convention on environmental policy issues including CERCLA and coarse PM. At the same time, Jeff Eisenberg is in Billings, Montana for the Montana Stockgrowers Association/Montana Grain Growers Association Joint 2005 Convention and Trade Show, Dec. 7-10, 2005. In conjunction, PLC and Montana cattle industry leaders are hosting an event for Sen. Conrad Burns (D-Mont.), Chairman of the Senate Subcommittee for Interior Appropriations.

State Legislatures:  Gregg Doud is in Chicago today, December 8, for the National Conference of State Legislatures Fall Forum.  Gregg will give a presentation on “Trade Policy Status: Past and Future.” The session will discuss challenges to American farm policy before the World Trade Organization, review the history of agricultural trade and analyze the current status of agriculture in the global trade discussions. The National Conference of State Legislatures is a bipartisan organization that serves the legislators and staffs of the nation's 50 states, its commonwealths and territories.

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.

Energy Issues: Agriculture Secretary Mike Johanns unveiled an energy strategy this week to help farmers and ranchers mitigate the impact of high energy costs and develop long-term solutions. Johanns announced the formation of the USDA Energy Council to examine departmental programs and authorities. USDA's Risk Management Agency (RMA) will host a workshop by early spring to discuss risk management tools to help producers manage adverse impacts of high energy and energy-related input costs.

USDA says they are intensifying efforts to support the development, production and use of renewable fuels, such as ethanol and biodiesel, and Johanns directed these funds be used to help ranchers efficiently create renewable energy systems and businesses. USDA is holding an Energy Agriculture Forum in St. Louis, Missouri on December 14-15 to discuss new energy technologies, programs and initiatives.

The newly revised on-line ‘USDA Energy Calculator,’ designed to help producers to reduce fuel usage, and more information is found online at: www.usda.gov/energy.

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.

NCBA-PAC/PEF to Hold First Annual All-Breed Bull Auction:  Don’t miss your chance to bid on some of the best beef genetics and seed stock in the nation while supporting NCBA-PAC.  In conjunction with the 2006 Cattle Industry Convention & Trade Show, NCBA’s PAC/PEF will host a bull sale 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). Donations of seedstock and sale credits will be accepted until Friday, January 13, 2006. To make a donation please contact Erin Vincent at 202-347-0228 or evincent@beef.org. 

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 542,103 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