Cattlemen's Capitol Concerns: February 26, 2004

Cattlemen's Capitol Concerns

February 26, 2004

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).

Mexican Trade: Although there’s been no official announcement, NCBA has word that Mexican beef export market will be opening very soon.  Both USDA Chief Economist Keith Collins (testimony) and SAGARPA (Mexico’s Ag Ministry) Director of Safety and Inspection Javier Trujillo (wire report) earlier this week publicly characterized the opening as being "in a manner of days" rather than weeks. USDA Secretary Veneman has spoken with SAGARPA Secretary Usabiaga and USDA believes it has met all of Mexico’s information requirements. Despite some reports we received to the contrary earlier in the week, Mexico is not linking the "bird flu" or any other situation with the beef issue. A Mexican Health Ministry (SALUD) delegation is scheduled to visit U.S. processing facilities in the near future. Although there is some uncertainty, we do not believe that an announcement will be delayed until after this team’s visit. NCBA will continue its ongoing efforts to re-open all of our export markets. Once we get back to the business of exporting beef to Mexico, emphasis will be placed on Hong Kong, Mainland China, South Korea and other markets.

BSE Update: Activities continued this week in Washington D.C. regarding issues surrounding the isolated case of Bovine Spongiform Encephalopathy (BSE). In May, the OIE is expected to announce an updated version of its guidelines pertaining to BSE and beef trade. These new guidelines will take into consideration the latest science regarding global prion research and this disease. We anticipate that the OIE’s guidelines will provide all countries with greater clarity on how beef trade can be conducted on a safe and scientifically sound basis. Currently, NCBA is working on comments to Animal and Plant Health Inspection Service (APHIS), giving the cattle industry’s recommendation on how the U.S. government should work with the World Organization for Animal Heath (OIE) on BSE-related trade issues. Comments are due Monday, March 1. APHIS will utilize our comments and others to decide how they will comment to the OIE. USDA also hosted an animal health issues briefing this week. In other USDA news, the USDA’s Advisory Committee report has been made public, found online at http://www.aphis.usda.gov/lpa/issues/bse/bse.html.

BSE Hearing: NCBA attended a hearing Tuesday held by the Senate Appropriations Committee on the Federal Government’s response to the BSE incident.  Witnesses included:  Mark McClellan, FDA Commissioner; Elsa Murano, USDA Under Secretary for Food Safety; Keith Collins, USDA Chief Economist; Ron DeHaven, USDA Deputy Administrator of Veterinary Services; among others. Murano told Senators and the public, "Since BSE was recognized in the United Kingdom over a decade ago, the United States has had an aggressive plan in place to address the disease…the BSE situation in Washington State has led to changes and reevaluations of food safety systems across the country. The recent measures implemented by USDA and our food safety partners emphasize our commitment to ensuring the public health." DeHaven noted that the Advisory Committee’s recommendations to the Secretary include "immediate development of an enhanced national surveillance program for BSE to increase testing of high risk animals; the implementation of a comprehensive system to facilitate adequate pathways for dead and non-ambulatory cattle; the enhanced development of the National Animal Health Laboratory Network; and the enhanced development and dissemination of BSE information to the media, public and all industry stakeholders." He also noted that the USDA committee recommended that the Secretary "encourage major beef exporting nations to work through the OIE to rationalize trading protocols."

Canadian Trade Update: Efforts are ongoing with regard to harmonization of all BSE regulations and/or protocols in North America. U.S. and Canadian officials are meeting today in Washington D.C. on this issue. Chandler Keys, NCBA’s vice president of government affairs, met with Canadian Ag Ministers at the Canadian Embassy this week to discuss various trade issues and top policy priorities on Canadian trade that were passed at Convention 2004. NCBA members resolved at they will demand that USDA require Canada to harmonize its bluetongue and anaplasmosis regulations with the U.S. prior to allowing any additional beef products or live cattle imports from Canada. NCBA resolved to make every effort to immediately facilitate negotiations with the Canadian and U.S. governments, state veterinarians, and appropriate elected officials to harmonize all animal health regulations to allow year-round trade in cattle and beef. This week, USDA said they are continuing to evaluate our regulations regarding BSE with regards to our trading partners.

Canadian Trade Comments: A rule proposed last November would establish criteria for determining minimal risk regions of the world for BSE, including Canada on the list of minimal risk regions and establishing conditions for the importation of certain live cattle designated as minimal risk for BSE. USDA announced this week that the initial comment period, closed on January 5, 2004, will be reopened to give the public a chance to extend their comments to consider the investigation. Indications are that the comment period may be reopened within the next few days for a relatively short period of time. Once the comment period is again closed, it could take several weeks for USDA to issue a final rule in the Federal Register that would bring the resumption of this trade. NCBA is highly involved in this process and will send comments when the official date is announced.

Ag Appropriations Hearing:  NCBA attended a House Appropriations Subcommittee on Agriculture hearing this Wednesday to discuss budgets for Fiscal Year 2005.  USDA Secretary Ann Veneman testified, along with Natural Resources Conservation Service (NRCS) Chief Bruce Knight.  Interior Secretary Gale Norton and Secretary of Energy Spencer Abraham testified on funding contained in the FY 2005 budgets for the Interior and Energy departments. Secretary Veneman listed the USDA’s key priorities with funding for 2005: ensuring a safe and wholesome food supply, safeguarding America’s homeland, continuing administration of the 2002 Farm Bill, providing record funding for a food and nutrition safety net, expanding agricultural trade, investing in America’s rural sector, support for basic and applied sciences in agriculture, and improving USDA’s program delivery and customer service.

Country-of Origin Labeling:  NCBA will file its comments tomorrow (Friday) on the USDA’s mandatory country-of-origin labeling rule. NCBA’s current policy is to pursue a market-driven approach that would be less disruptive in the market place and more efficient for the producing, retail and foodservice sectors of the beef industry. NCBA will continue its efforts to serve as a catalyst to facilitate and endorse a market-driven voluntary USA beef labeling program in the private sector for 'born, raised, and processed' USA beef. NCBA continues to work toward development of voluntary programs through avenues that USDA has provided prior to the current law’s enactment. Before tomorrow, there is still time to review the proposed mandatory rule and cost benefit analysis and submit comments via e-mail to cool@usda.gov. The proposed rule and USDA news release can be accessed on the USDA web site at http://www.ams.usda.gov. 

CMR Grazing Permits: The U.S. Fish and Wildlife Service (FWS) has agreed to allow the transfer of grazing permits within the Charles M. Russell (CMR) National Wildlife Refuge to family members.  NCBA and the Public Lands Council (PLC) have been communicating the concerns of Montana area cattlemen who are threatened with losing their permits. NCBA, PLC, and area cattlemen, along with Senator Conrad Burns (R-MT), called for a number of meetings with FWS officials, and convinced them to adjust policies that will allow family ranches to hand down their permits to the next generation.  In addition, permits can be transferred conditionally upon sale.  Previous FWS policy called for a re-examination of the permit or a cessation of grazing for an environmental impact study if a permit holder died or chose to sell his allotment.  This is great news for Montana area cattlemen.  The shift in FWS policy will better protect the livelihood of family ranching operations and represents a serious commitment by the Bush Administration to the dual objectives of responsible grazing practices and wildlife preservation. 

Sage Grouse:  One of the greatest threats facing the cattlemen in the West and the future economic viability of their operations is the potential listing of the sage grouse under the Endangered Species Act (ESA). If the bird is listed under ESA, land use throughout the West could be adversely impacted. State and federal agencies must implement plans to conserve Sage Grouse populations before the agency decides to list the entire population, and one opportunity to help preserve the species is to dedicate a portion of the Wildlife Habitat Incentives Program (WHIP) funds for Sage Grouse conservation projects.  At the request of NCBA and PLC, a "Dear Colleague" letter is being circulated by the Western Caucus asking Appropriations Committee and Secretary Veneman to earmark $5 million for Sage Grouse conservation projects.

Central America:  Last Friday, President Bush sent a letter to the Speaker of the House and the President of the Senate, informing them of his intention to sign the U.S./Central America Free Trade Agreement.  For cattle producers, there is potential to export moderate quantities of high quality U.S. beef for Central American restaurants and tourism.  USTR is continuing negotiations with the Dominican Republic and hopes to still include that agreement with CAFTA, although the letter does not state that they are intending to sign an agreement with the Dominican Republic at this time. For cattle producers, the Dominican Republic would offer export opportunities for high quality fresh/chilled and frozen beef sold to the hotel and restaurant industry. Currently, trade barriers in the form of high duties, non-tariff barriers, and slow or non-issuance of import licenses limit U.S. beef exports.  The text of the U.S./Central America FTA is available on USTR's website at www.ustr.gov.

Trade Meetings: Former NCBA President and Iowa cattle producer Wythe Willey is flying to Washington to participate in a meeting this Friday with the Advisory Committee for Trade Policy and Negotiations (ACTPN). This is a great opportunity for U.S. cattle producers. President Bush announced the appointment of Wythe to serve on the Committee last winter. Willey, along with the 31 other selected individuals, is serving a two-year term. ACTPN, the principal trade advisory committee of the U.S., was established by Congress under the trade Act of 1974, and advises U.S. Trade Representative Robert Zoellick on U.S. trade policy decisions.

CSP comments: NCBA is working on comments on the proposed Conservation Security Program (CSP) rules. This proposed rule described how NRCS will implement the CSP to provide financial and technical assistance to agricultural producers who conserve and improve the quality of soil, water, air, energy, plant and animal life, and support other conservation activities. The CSP is a voluntary conservation program to support ongoing conservation stewardship of agricultural lands by providing payments to producers who maintain and enhance the condition of natural resources. CSP will identify and reward those farmers and ranchers who are meeting the highest standards of conservation and environmental management on their operations. Public comment is an important part of creating the program. Comments are due next week.

McKee Selected as Science Advisor for FSIS:  USDA Undersecretary for Food Safety Elsa Murano announced today that Food Safety and Inspection Service (FSIS) Administrator Dr. Garry McKee has been named Science Advisor for the Technical Service Center in Omaha, Neb.  In his new position, McKee will provide scientific and public health guidance to the Technical Service Center staff.  Murano announced that Dr. Barbara Masters, a veterinarian, will serve as acting FSIS administrator until a permanent administrator is appointed.

Election News:  NCBA co-hosted a fundraiser luncheon today for Nebraska Cattlemen Association Executive Vice President Greg Ruehle. Ruehle is seeking the Republican nomination in Nebraska's 1st Congressional District. Ruehle is the fourth Republican vying for the seat being vacated by Rep. Doug Bereuter. Also today, NCBA co-hosting a fundraiser luncheon for Rep. Richard Burr (R-NC).  Burr is a candidate for North Carolina’s Senate seat vacated by John Edwards. 

Nebraska Visitors: NCBA again this year hosted Nebraska LEAD "fellows" in the Washington, D.C. office on Monday.  The Nebraska LEAD program "fellows" are involved in production agriculture, agribusiness, or a closely related occupation, and are selected for the two-year LEAD program based on their proven leadership potential, capability, and a demonstrated commitment to Nebraska.  NCBA staff discussed various topics, including marketing, food safety issues, and agriculture policy.

Environmental Stewardship Award Program:  NCBA is accepting applications for the 14th annual Environmental Stewardship Award Program (ESAP).  The deadline for applications is March 12, 2004. Sponsored by Dow AgroSciences, and USDA’s Natural Resource Conservation Service (NRCS), the Environmental Stewardship Program recognizes cattle producers who use innovative practices to protect and enhance natural resources while maintaining or increasing the profitability of their businesses.  Any group or organization is eligible to nominate one individual/business, however the nominee must raise or feed cattle.  Individuals cannot nominate themselves.  Nominees need not be NCBA members, but they must support NCBA’s mission: A dynamic and profitable beef industry, which concentrates resources around a unified plan, consistently meets global consumer needs and increases demand.

National Ag Day/Ag Week:  March 20 marks the first day of spring and National Ag Day, when producers, agricultural associations, corporations, universities, government agencies and others across America gather to recognize and celebrate the abundance provided by agriculture.  NCBA is a proud sponsor of Ag Day 2004 and encourages members to get involved locally by planning events and promoting American agriculture within their communities. National Agriculture Week is March 14-20, 2004.  For more information visit www.agday.org

NCBA Spring Conference! NCBA is preparing for its 2004 Spring Conference in Washington, March 29-April 3. Hundreds of cattlemen from across the country will be in the national’s capital for this important event. Attendees will hear directly from top policymakers, meet face-to-face with key Congressional offices, government agency influencers and have the opportunity to articulate policy priorities for today’s cattle industry. NCBA has invited Vice President Cheney, and other top officials to speak with our members. For more information, go to http://hill.beef.org/spring. 

Media Contact:

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