Cattlemen's Capitol Concerns: February 5, 2004

Cattlemen's Capitol Concerns

February 5, 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).

New Panel’s BSE Report: An international panel report that came out this Wednesday on measures relating to the incidence of Bovine Spongiform Encephalopathy (BSE) in the U.S. fails to appropriately recognize the fact that the U.S. and Canada have taken steps since 1989 to reduce the risk of BSE. These actions led the Harvard Center for Risk Analysis to conclude the U.S. system is robust against the amplification and spread of BSE. 

The report, issued by a subcommittee of the USDA Secretary's Foreign Animal and Poultry Disease Advisory Committee, offers recommendations based on the premise that the risk level in the U.S. for this disease is the same as the risk level in European countries.  The subcommittee is made up of three representatives from Europe, one from New Zealand and one from the U.S.   Clearly, some members of the panel do not have a full understanding of the systems we have in place in the U.S. Many of the panel’s recommendations are based on the European model and overlook scientific evidence that clearly demonstrates the long-standing firewalls in place in our country have been effective.

All the measures to protect both animal health and public health put in place beginning in 1989 – and further expanded in 2003 – ensure the U.S. beef supply remains the safest in the world. The panel’s report is part of an on-going process and the recommendations will be discussed and reviewed by a larger scientific committee as we move forward.

Australian Trade: NCBA continues to have strong concerns throughout the final negotiations of the U.S.- Australian Free Trade Agreement (FTA).  NCBA’s long-standing policy supports the multi-lateral process, where all commodities are eligible for negotiation and where our industry has the best opportunity to gain access via a reduction in high-tariff barriers to U.S. beef in countries such as Japan and Korea.  Our support for an agreement with Australia would be based on the final package, with the understanding that all commodities would be included. Exemptions not only undermine long-standing U.S. trade negotiating principles, they also set an extremely dangerous precedent for future negotiations.

Beef producers in many countries are highly protected and sensitive to market liberalizations. A precedent that establishes exemptions could allow their governments to negotiate trade agreements which do not provide complete liberalization for U.S. beef exports. Thousands of cattle producers from across the country came to the annual Convention last week in Phoenix, passing new policy to fight such dangerous exemptions from happening this year. The new NCBA policy states that "as the United States negotiates trade agreements, NCBA supports inclusion of all products in all sectors by all parties to the agreement," and "NCBA will oppose negotiations or legislative proposals that will have the effect of excluding products or similarly limiting our negotiators’ flexibility."

Animal ID: NCBA’s Director of Legislative Affairs, Bryan Dierlam, will present a briefing to House and Senate staff on Tuesday, February 10. The briefing will cover NCBA policy on Animal ID and highlight the U.S. Animal Identification Plan (USAIP).

National Environmental Stewardship Award: Elaine and George Work, owners of Work Family Ranch, have been selected as this year's official winners of the National Environmental Stewardship Award.  The national and regional award winners were recognized last Thursday evening at the 2004 Cattle Industry Convention and Trade Show in Phoenix, Arizona.

The Work Family Ranch is a national leader in environmental stewardship. Nestled in the Cholame Hills of Central California, the Work Family Ranch is a combination cow/calf and stocker operation.  This family owned operation provided a livelihood for four generations, and is well on its way to being fifth generation operated. They were selected from a highly competitive pool of applicants across the country.  The family was initially selected as one of seven regional winners nationwide, representing NCBA's Region VI, which includes five southwestern states and Hawaii.  A national committee of representatives from university faculty, federal and state government agencies, conservation and environmental organizations selects the recipients of this top U.S. cattle industry environmental award.

Established in 1991 by the National Cattlemen's Beef Association and sponsored by Dow AgroSciences, LLC and the Natural Resources Conservation Service (NRCS), the Environmental Stewardship Award Program (ESAP) recognizes cattle producers whose stewardship practices are inventive, cost-effective and contribute to environmental conservation.

President’s Budget/Ways & Means Hearing:  The House Ways and Means Committee hosted a formal hearing on Tuesday where President Bush’s proposed FY 05 Budget was reviewed.  Treasury Secretary John Snow answered the committee’s questions about programs contained in the President’s $2.4 trillion request. Of particular interest to cattlemen is increased funding for ag programs (see below) and the President’s call for permanent repeal of the Death Tax. 

USDA Secretary Ann M. Veneman discussed on Monday details of the budget for agriculture programs and services. Key items include: 

- Increased funding for the Food Safety and Inspection Service to a program level of $952 million

- Funding to complete the National Centers for Animal Health, the country’s flagship research and diagnostic laboratory.  The budget also significantly increases funding for other BSE-related activities.

- Funds to support continued implementation of the Farm Bill representing an unprecedented investment in conservation that will have significant and long-lasting environmental benefits. Total program level funding for Farm Bill conservation programs increases from about $2.2 billion in FY 2001 to $3.9 billion in the FY 2005 budget proposal.

- $5.2 billion for programs of the USDA Forest Service

Beef Industry BSE Meeting:  The American Meat Institute Foundation hosted a BSE Briefing in Washington on Tuesday to discuss the BSE-related challenges facing our industry. The program reviewed actions taken by various segments of the industry and government, provided updates on international trade discussions, and discussed plans in place to address issues that lie ahead. Speakers included: NCBA’s Executive Director of Regulatory Affairs Gary Weber, NCBA Chief Economist Gregg Doud, and NCBA Executive Director of Public Relations Kim Essex among a host of other industry, government and academic spokespersons.

BSE Academic Briefing: George Washington University’s Center for Global Health hosted a public health forum, "The Impact of Bovine Spongiform Encephalopathy (Mad Cow Disease) in the U.S." on Thursday. Speakers discussed the Dec. 23rd identification of a single cow with BSE, and the media coverage and consumer response that followed.  Also discussed were the policy implications following the incident, and the efforts to enhance regulations in the area of animal and public health, and food safety. NCBA’s Gary Weber appeared on the program and discussed prevention measures put in place in the U.S. over the past 15 years.

Death Tax Update: In a surprise announcement, Rep. Jennifer Dunn (R-Wash.), has announced retirement. Dunn has been a strong supporter for permanent repeal of the onerous Death Tax. In related news, NCBA continues to meet with coalition groups on possible future full repeal of the tax. Last Friday, White House officials reiterated the President's support for permanent repeal and verified that Death Tax repeal is included in the President's budget. The coalition is collecting members who will be in town to rebut the upcoming the Bill Gates Sr. tour in early March. Dates are being discussed for a Death Tax summit.  We are still hoping for a Senate vote sometime in the spring. 

BLM Hearing on Grazing:  The Interior Department’s Bureau of Land Management (BLM) hosted its final public hearing today in Washington to hear comments on proposed changes to grazing regulations. This was the last of six meetings held across the country. NCBA Federal Lands Coordinator Stacey Katseanes testified before the panel, and emphasized five priorities which will better improve grazing management and help continue public lands ranching in the rural West: 1) Monitoring for permitees of forage conditions on public allotments, 2) Restoring historical use of the term "preference" to reflect the amount of forage available to ranchers and priority for its use, 3) Ownership of range improvements, 4) Participation in agency decisions by those who are directly affected by the decisions, and 5) Supporting the operation of grazing advisory boards through local governments.

Endangered Species Recovery:  In a joint meeting of the Property Rights and Environmental Management & Federal Lands Committees late last week, a resolution was passed to support efforts for endangered species recovery.  A non-regulatory approach to species management, recovery allows for state and local government officials to work with property owners on species monitoring and management as an alternative to listing them as endangered.  The resolution supports proposals put in place in Colorado and suggests the state model could lead to a national framework. 

Invasives Bill:  Larry Craig has made passage of legislation dealing with invasive species a top priority for the 108th Congress.  Craig drafted S. 144, the Noxious Weed Control Act of 2003 which has already passed the Senate. Cattlemen are hopeful that the House will work to pass the bill this session. 

Officers in Town for Trade Meetings:  NCBA officers were in Washington D.C. again this week for meetings with industry leaders and international trade groups on reopening international borders. Just last week, USDA officials were in Japan for a second series of meetings with the Japanese government since the identification of the Dec. 23 isolated BSE case. USDA explained all of the measures we have put in place and began the discussion of the conditions for resuming trade with Japan. The USDA did not reach any agreement with the Japanese government on resuming trade. But says "We did both agree that we need to get trade moving again as quickly as possible."

State Meetings:  Chandler Keys will be traveling to Minneapolis this weekend for the Minnesota Young Farmers and Ranchers Leadership Conference.  The conference will focus on the power of grassroots lobbying. Keys will be the keynote speaker and will speak on his nearly 20-some years of experience in Washington and the importance of political involvement. Jay Truitt will be traveling to Jackson, Mississippi for the Mississippi Cattlemen's Association Convention & Trade Show, February 6 & 7.  Truitt will speak to attendees Friday on the cattle industry political environment. Bryan Dierlam will be traveling to the Georgia Cattlemen’s Convention to speak about policy issues on February 14.

Convention Resolutions: NCBA members passed a long list of resolutions this past weekend at the 2004 Cattle Industry Convention and Tradeshow. We will be drafting a summary of these extensive resolutions to distribute to media and members by this Friday. In addition, the D.C. policy team has more than 200 photos from various policy events and producer interactions. If you would like a copy of such photos, please contact Tanya Augustson at taugustson@beef.org.

Media Contact:

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

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