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).

Special Convention Edition!
Cattlemen’s Capitol Concerns is in Denver this week providing up-to-date coverage of the 2006 Cattle Industry Convention and Trade Show, February 1-4, 2006. Over 5,000 are in attendance at the industry’s annual convention and board meeting.

General Session Highlights Ten Years of Success:  As we celebrate NCBA's 10th Anniversary – ten years since the merger of National Cattlemen’s Association and the National Live Stock and Meat Board in 1996 which formed the NCBA, Thursday morning’s general session kicked off with a review of beef industry challenges and opportunities over the past ten years.

Patti Brumbach, executive director of the Washington State Beef Commission and Richard McDonald, former president and CEO of Texas Cattle Feeders Association wowed the crowd with their retrospective on ten years of cattle industry accomplishments.  The duo said the roadmap laid out by the long range plan has led to victories in the areas of beef safety, cattle health, issue preparedness, exports and trade, nutrition policy, product development and our ability to protect and enhance the business climate for cattlemen.

Keynote Focuses on Need for Trade:  In an impassioned and dynamic speech, keynoter Dr. Barry Asmus convinced conventioneers that the best is yet to come for the American beef industry.  Asmus, senior economist at the National Center for Policy Analysis gave four reasons for his belief that the U.S. beef industry is poised for further economic success:

1. Demographics trends in the United States indicate that a greater percentage of the population is in an age group and income level that will foster continued economic growth.
2. The United States’ continued emphasis on low rates of inflation and the digital age will continue to drive consumer prices down. 
3. Productivity continues to rise and the American labor force will remain the most productive in the world.
4. A tax policy that emphasizes low tax rates in the United States will contribute to future prosperity.

Asmus also cited the fact that 96 percent of the world’s population lives outside the United States, providing ample opportunity for American cattlemen to increase their bottom lines.  “The golden age of the American beef industry is ahead of us, not behind us,” said Asmus. “Economics is in your favor.”

Farm Bill, Animal ID Are Top Policy Issues Discussed at Issue Forums:  The industry’s semi-annual Issue Forums were dedicated to discussions on two prominent policy issues:  Animal Identification and Development of the 2007 Farm Bill.

In the discussion on Animal ID, the newly formed U.S. Animal Identification Organization (USAIO) demonstrated how animal movement data can be housed in the industry-maintained database.  USAIO Chairman Charles Miller said Animal ID is important for livestock producers so they can:

1. continue to be competitive in the global marketplace,
2. foster consumer confidence, and
3. be able to respond and address animal health issues in a rapid fashion.

The team announced that Bob Smith, a cattle producer and veterinarian from Oklahoma has been named to the USAIO board of directors.  Smith was invited to represent NCBA on the board by fellow members Chairman Miller, representing the Southeastern Livestock Network, Rick Stott, representing the Northwest Pilot Project, and Lance Kuck, representing the National Bison Association.

In the Farm Bill forum, Washington Insider Randy Russell explained the challenges being faced by the agriculture sector in development of the 2007 Farm Bill.  Budget constraints will be the biggest impediment. With the budget deficit rising at an alarming pace, and the government unable to cut costs in the areas of defense, Medicaid/Medicare and Social Security, we’re in a situation where farm programs are vulnerable.  In addition, threats from animal rights and environmental activists, as well as other special interests, can overshadow the voice of cattlemen and other ag producers.  Russell said it is vital that producers engage in Farm Bill debates at the local level to ensure our voice is heard and needs are known.

Cattle Industry Long Range Plan Unveiled:  Making its debut today, the Beef Industry Long Range Plan 2010 promises to address four priorities:  1) Creating Value, 2) Creating Growth, 3) Creating Sustainability, and 4) Creating Opportunity.  Although the plan is still subject to final approval, members of the Long Range Planning Group talked about challenges and opportunities that the beef industry will face over the next five years including increased competition, a changing consumer base, and critical policy issues such as animal health surveillance, crisis response, environmental overregulation, and policy issues related to land use, tax policy, nutrition, and trade.  To get a copy of the Beef Industry Long Range Plan 2010, call 1-800-368-3138.

Convention Attendees Honor ESAP Winner:  At press time, CCC is only a few hours away from learning which of our nation’s model cattle operations will be named national winner of the 15th annual National Environmental Stewardship Award Program (ESAP). The national winner, to be announced at an awards reception February 2, will be chosen from these seven regional winners announced last summer:

- Region I: Li’l Ponderosa Enterprises, Carlisle, Pa.;
- Region II: Lightsey Cattle Company, Lake Wales, Fla.;
- Region III: Faris Farms, Mount Ayr, Iowa;
- Region IV: Richards Ranch, Jacksboro, Texas;
- Region V: Sims Cattle Company LLC, McFadden, Wyo.;
- Region VI: Prather Ranch, Fall River Mills, Calif.;
- Region VII: Gates Angus Ranch, Coldwater, Kan.

Established in 1991 by NCBA and sponsored by Dow AgroSciences and the Natural Resource Conservation Service, the ESAP honors America’s ranching operations where stewardship practices are inventive, cost-effective and contribute to environmental conservation. If you would like more information on this year’s national winner, or to nominate a deserving cattle operation for our 16th annual ESAP award, visit http://hill.beef.org/esap, or contact Stacey Katseanes (skatseanes@beef.org or 202-347-0228) in NCBA’s Washington office. 

PAC Events Raise Money for Political Clout:   2006 is an election year and support for NCBA’s Political Action Committee is more important now than ever!  Among the wide array of events planned at this year’s convention, NCBA-PAC raised more than $60,000 at their first-ever All Breed Auction and Bull Sale held February 2 in the Trade Show! 

With the remaining time at convention, NCBA’s PAC Director, Erin Vincent, will have attendees focused on even more opportunities to support our cause.  The PAC Silent Auction runs through February 3; The Team Penning Competition and Barn Dance takes place February 3; and immediately following convention, Passengers will board the PAC Ski Train bound for Winter Park, Colorado on February 5.

But the opportunity to contribute to NCBA-PAC and participate in our political process doesn’t end this weekend.  For more information on how you can help, contact Erin Vincent in NCBA’s Washington office at 202-347-0228 or evincent@beef.org.

Meanwhile, back in Washington:

Korean Trade Agreement: The U.S. government announced February 2 it will launch negotiations for a free trade agreement (FTA) with South Korea, historically one of the largest export markets for U.S. beef.  In 2003 alone, this export market for U.S. cattle producers was valued at over $815 million – our third largest export market.

While an FTA with South Korea presents a lucrative opportunity for America’s cattlemen, NCBA says producers are cautious due to the continuing ban on some of our most popular beef products.  On January 13, 2006, negotiators reached an initial import protocol stating South Korea will accept U.S. boneless beef from cattle less than 30 months of age, but its ban on U.S. bone-in beef and variety meats remains – which historically accounted for roughly half of the total value of U.S. beef exports to South Korea. In addition, South Korea imposes some of the highest tariffs on beef imports in the world, bound at 40 percent.

NCBA supports the launch of this free trade agreement with South Korea but expects to see the full re-opening of this market to all U.S. beef, significant reductions of Korea’s tariffs, and resolution of important sanitary and phytosanitary (SPS) issues.

House Ag Committee Chairman Urges Reopening of Japanese Market:  House Committee on Agriculture Chairman Bob Goodlatte (R-Va.) met with members of the (minority) Democratic Party of Japan January 31 to discuss beef trade issues between the United States and Japan. This meeting comes 11 days after the Japanese suspended imports of U.S. beef products after finding three boxes of veal containing the backbone of the animal which is permitted in the U.S., but is not permitted in Japan. The Japanese government agreed to resume importing U.S. beef in early December 2005 after barring imports for over two years.

Chairman Goodlatte called for the Japanese to reopen their market and urged the members of the delegation to take action quickly. “The U.S. has acknowledged the mistake and has taken the appropriate action,” said the Chairman. “For the Japanese to use this one instance as the basis for saying that they can’t trust our entire system and shutting down the market again is extremely frustrating.”

Additional Updates on Key Export Markets:

• Mexico: USDA Secretary Johanns announced February 1 that Mexico has resumed trade of U.S. bone-in beef from animals under 30 months of age. Mexico is currently our largest export market for U.S. beef, and we applaud their leadership to commit to trade based on internationally accepted scientific standards. 
• Taiwan: Taiwan reopened to U.S. boneless beef from cattle less than 30 months of age on January 25, 2006.  Taiwan first lifted its ban on U.S. beef on April 16, 2005, but the ban was reinstated June 26, 2005 following the announcement of a BSE-positive cow in Texas.
• Hong Kong:  Hong Kong reopened its doors to U.S. imports of boneless beef from cattle under 30 months of age effective December 29, 2005.
• Singapore: Singapore reopened to U.S. boneless beef from cattle under 30 months of age effective January 19, 2006.

Field Hearings Next Week on Farm Bill:  The House Ag Committee will host two field hearings next week to begin reviewing the 2002 Farm Bill which is set to expire in 2007.  The field hearings are part of a series of hearings the Committee will convene in the coming year.  The first hearing will be held on February 6, 2006 in Fayetteville, N.C., followed by a hearing on February 7, 2006 in Auburn, Ala. 

John Queen, NCBA vice president and member of the North Carolina Cattlemen’s Association will testify at the February 6 hearing in Fayetteville.

House Ag Committee Chairman Bob Goodlatte (R-Va.) and Ranking Minority Member Collin Peterson (D-Minn.) said they want to hear from all those involved in agricultural policy including farmers, ranchers, agribusiness, and government officials. The hearings will give producers the opportunity to provide the Committee with feedback about what aspects of the 2002 Farm Bill are working well and what aspects could be modified. 

Congressional Schedule:  Capitol Hill is a busy place to be this week. 

• The Senate voted 58-42 to approve the confirmation of Samuel Alito to the Supreme Court. Alito was sworn in January 31.
• President Bush gave his State of the Union Address on January 31 and touched on many key domestic issues of importance to small business owners.  In regards to tax issues, the President urged Congress to make tax cuts permanent.  “In the last five years, the tax relief you passed has left $880 billion in the hands of American workers, investors, small businesses and families. And they have used it to help produce more than four years of uninterrupted economic growth,” the President told Congress. “Yet the tax relief is set to expire in the next few years. If we do nothing, American families will face a massive tax increase they do not expect and will not welcome. Because America needs more than a temporary expansion, we need more than temporary tax relief.”
• In leadership elections in the House of Representatives, Rep. John Boehner (R-Ohio) was elected House majority leader.  Representing Ohio’s eighth Congressional district, Boehner has served as Chairman of the Education and Workforce Committee for the past five years.

Air Comments:  NCBA submitted comments January 31 to the Environmental Protection Agency (EPA) on their proposed rule to implement the fine particle (“PM2.5”) National Ambient Air Quality Standards (“NAAQS”) under the Clean Air Act.  In comments, NCBA addresses two issues of critical importance to the cattle industry: The first is EPA’s proposal to regulate crustal material under the fine PM standard.  Because of the devastating impact such regulation would have on the cattle industry, the lack of substantial health effects associated with crustal PM, and the fact that the distinction between the chemistry, source and formation of fine and coarse particles has historically been a fundamental one, we are urging the EPA to adopt a mechanism in the implementation rule to exclude crustal material from regulation under the fine PM NAAQS.  The second issue NCBA addresses is the inappropriateness of regulating ammonia as a precursor to the formation of fine PM.  Given the uncertainties in emissions data, the dispersed nature of ammonia sources and the lack of present controls, it is premature to consider such regulation.    

Grazing Reg Revisions:   Proposed revisions to the BLM’s National Environmental Policy Act (NEPA) implementing procedures may allow for certain categorical exclusions for grazing permittees.  A notice in the January 25, 2006 Federal Register proposes to exclude certain ranchers seeking grazing permit renewal from NEPA requirements.  At issue for ranchers has long been the interruption of grazing permits requiring ranchers to remove their livestock from the land while federal agencies struggle to meet environmental documentation obligations. NCBA and the Public Lands Council will submit comments prior to the February 24 deadline. 

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 605,252 targeted animals at highest risk for BSE and has found only one confirmed case, evidence that our safeguards 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