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.

Farm Bill Tops the Agenda: Into the wee hours of the night yesterday and continuing all day today, the House Agriculture Committee is marking up the 2007 Farm Bill. Action began Tuesday of this week, and a final committee vote is expected by late tonight. Hundreds of amendments have been brought forward in this process.  NCBA’s team has been on Capitol Hill amid all the action, ensuring the needs of cattle producers are addressed.

NCBA is urging members of Congress to: (1) support conservation title programs, (2) oppose any amendments regarding competition that would limit the way we market our cattle, and (3) fix country-of-origin labeling.

NCBA supports a streamlined approach to labeling that would best provide consumers with information regarding point of origin and not complicate record-keeping requirements. All boxes of beef that are imported for sale and all live cattle going straight to slaughter would be labeled with their country-of-origin.  All other cattle would be considered a part of the U.S. herd and labeled as such.

With regard to renewable fuels, NCBA is supporting an amendment introduced by Adrian Smith (R-Neb.), and passed by the Committee, that supports research regarding dried distillers’ grain (DDG) quality for animal feed. Distillers’ grain is an important co-product of ethanol production, with the production process using only the starch portion of the corn. All the remaining nutrients are concentrated into distillers’ grain, and can be used as livestock feed. Research needs to be conducted on the best way to utilize DDG feed for cattle. As part of the debate, the Ag Committee passed a ‘Sense of the Committee’ affirming NCBA’s position that animal manure is not a toxic substance, pollutant, or contaminant under Superfund laws. All amendments are pending final passage of the bill, expected tonight.

Agriculture Appropriations: The House Appropriations Committee approved a $90.7 billion FY2008 Agriculture Appropriations bill today. The House Ag Appropriations bill was passed by the subcommittee late last Thursday, July 12 and contains language that will:  facilitate the agriculture disaster funding allocated in the recent emergency supplemental spending bill; provide assurances to Congress that mandatory country-of-origin labeling is implemented as scheduled in September 2008. The bill also tackles: food safety, funding of USDA’s Food Safety Inspection Service (FSIS) Programs and the Food and Drug Administration (FDA), critical nutrition programs, supports funding for animal health research, renewable energy research, conservation, and livestock competition. An amendment to delay mandatory country-of-origin labeling was brought up and consequentially withdrawn.

The Senate Appropriations Committee is considering the Department of Agriculture's FY2008 spending bill today, July 19. The Senate Ag Appropriations Subcommittee unanimously approved the Agriculture, Rural Development, Food and Drug Administration Appropriations Bill yesterday. Increased funding for the FDA, FSIS, food safety and research are key factors.

Cattle Industry Summer Conference:  More than 800 NCBA cattle producer-members are in Denver, Colorado for the 2007 Cattle Industry Summer Conference being held this week, July 16-20. The conference is co-sponsored by NCBA, the Cattlemen’s Beef Board, American National CattleWomen, Inc. (ANCW) and Cattle-Fax. 

NCBA Members Direct Policy Today: NCBA members are meeting in Denver today to discuss major policy issues including the Farm Bill, country-of-origin labeling and cattle marketing policy. NCBA’s Summer Conference is one of our twice-yearly venues for producers to come together, make decisions and develop policy on the issues that directly impact cattlemen’s bottom-line.  The policy committee meetings are taking place throughout the day today, Thursday, July 19.  Policy Division committees meeting today include: Property Rights and Environmental Management, Cattle Health & Well Being, Tax & Credit, Federal Lands, Live Cattle Marketing, Ag Policy, International Markets, and Resolutions.

NCBA members are discussing the progress of member-driven NCBA policies that were adopted at the Cattle Industry Annual Convention in February, and are putting forth new policies to be considered by the entire membership at the NCBA Board of Directors meeting on Friday, July 20. 

Grassroots Involvement is Key to Farm Bill Success:  On July 18, the General Session of the Cattle Industry Summer Conference was kicked off by Dr. Barry Flinchbaugh, who gave an overview and perspective on the industry’s current political environment.  When it comes to agricultural policy, Flinchbaugh, professor of agricultural economics at Kansas State University, is a renowned expert, and he had plenty of opinions to share with conference attendees on the topics of trade, country-of-origin labeling, renewable energy production, and the Farm Bill.

Flinchbaugh says one of the most alarming threats to the current Farm Bill development process is “complacency of America’s farmers and ranchers.” “This is not your grandfather’s Farm Bill,” said Flinchbaugh, who believes today’s farmers and ranchers have become too comfortable with good market conditions, ag-friendly policymakers and growth in our foreign markets which has helped to increase profits.  “To protect your interests, you’ve got to get into the political arena.”

NCBA’s summer conference attendees are doing just that this week thanks to NCBA’s Action Center, which provides NCBA members a forum for placing phone calls and sending emails to their members of Congress in Washington as pivotal Farm Bill discussions are taking place.  “Congress is hearing directly from NCBA members this week, thanks to the Action Center. Our members are very engaged, and they have come together in Denver with strong voices,” says NCBA’s Manager of Policy Affiliate Relations Elizabeth Bostdorff.  “Being involved in the democratic process is vital.  I hope we can make this form of grassroots activity a staple at our cattle industry conventions.”

Environmental Issues Looming for Cattle Industry:  Issue Forums on key industry priorities topped the agenda in Denver this week. One of NCBA’s most popular Issue Forums was entirely devoted to environmental policy issues affecting cattle operations.  On Wednesday, July 18, NCBA Director of Environmental Issues Tamara Thies outlined for conference attendees the myriad of issues NCBA is currently addressing on ranchers’ behalf.  “The challenges we’re currently facing exist in the regulatory arena, and legislative arena, and in the courts,” says Thies.

Cattle operations could experience negative impacts from issues related to water, air, climate change, Endangered Species Act restrictions, and application of Superfund regulations.  Thies says NCBA is working on all these fronts to ensure the best science and research is being considered in policymaking. 

“Our work on the environmental front is one of the priorities that sets NCBA apart from other cattle industry organizations,” says Thies.  “It can seem like an arduous task when you look at the list of issues we deal with, but if these regulations and requirements are applied gratuitously to our ranches, it could drastically change the way our members operate and even force many small operations out of business.”

Six U.S. Cattle Operations Named Regional ESAP Winners!  Members of the 2007 National Environmental Stewardship Award Program (ESAP) Selection Committee proudly announced the year’s regional award winners.  In conjunction with the Cattle Industry Summer Conference, the six families were honored at an awards event on July 18. “These families have successfully conducted stewardship practices that serve as exemplary models for all cattle producers,” said the committee. “They are actively working to protect and improve the environment and have proven that stewardship and good business can go hand-in-hand.”

The 2007 Regional ESAP Winners are...

-Region I:  Sunrise Club Calves, Shippenville, Pennsylvania

 Nominated by Pennsylvania Cattlemen’s Association

-Region II:  Dee River Ranch, Aliceville, Alabama

 Nominated by Alabama Cattlemen’s Association

-Region III:  Oak Knoll Ranch, Salem, Missouri

 Nominated by Top of the Ozarks

-Region V:  Roaring Springs Ranch, Frenchglen, Oregon

 Nominated by Oregon Cattlemen’s Association

-Region VI:  Yolo Land & Cattle Co., Woodland, California

 Nominated by California Cattlemen’s Association and California Rangeland Trust

-Region VII:  Alexander Ranch, Sun City, Kansas

 Nominated by Comanche Pool Prairie Resource Foundation

The 2007 ESAP Selection Committee consists of past award winners, university faculty, federal and state government agencies, conservation and environmental organizations. The program is administered by NCBA and sponsored by Dow AgroSciences LCC and USDA’s Natural Resources Conservation Service (NRCS).  The 2007 National Winner will be selected from one of the six regional winners and announced at the 2008 Cattle Industry Convention in Reno, Nevada next February. (PHOTOS ARE AVAILABLE: contact NCBA’s Washington D.C. office at 202-347-0228).

Back in Washington D.C., More Ag-Related Hearings This Week: In addition to the Farm Bill mark-ups taking place this week, NCBA is actively monitoring a flurry of hearings regarding cattle industry issues this week. The House Energy and Commerce Subcommittee on Oversight and Investigations hosted a hearing titled: “Can the FDA Assure the Safety and Security of the Nation's Food Supply? (Part 2)” Today, July 19, the House Homeland Security Subcommittee on Emerging Threats, Cybersecurity, and Science and Technology is hosting a hearing on “Vulnerabilities in the Food Supply.”  The House Transportation and Infrastructure Committee is holding hearings this week on the “Status of the Nation's Waters, including Wetlands, Under the Jurisdiction of the Federal Water Pollution Control Act.”

NCBA and Ag Trade Coalition Sends Letter to Congress: NCBA, and more than 40 other food and agricultural groups, sent a letter this week to Congress in support of the Peru and Colombia Trade Promotion Agreements. Most products from these nations now enjoy duty-free access into the United States after Congress extended the Andean Trade Preference Act (ATPA) in June. “We urge the Congress to expeditiously pass the Colombia and Peru Trade Promotion Agreements so that our members may benefit from duty free treatment of our exports to these nations,” said the letter.  

“The special tariff benefits extended by the Congress to these four Andean nations have allowed these countries to ship most products duty free to the United States… The value to the United States of the ATPA pales in comparison with the value of these FTAs. The ATPA offers U.S. exporters no reciprocal market access in the beneficiary countries, whereas both FTAs provide important new market access benefits that will stimulate U.S. exports, create U.S. jobs, and strengthen rural economies.”

“The Peru and Colombia FTAs also go well beyond the DR-CAFTA and other trade agreements in providing immediate benefits to U.S. farmers, ranchers, and agribusinesses that will create thousands of new U.S. jobs. If the one-way trade flows associated with the ATPA are good for America, the two-way trade flows resulting from implementation of the free trade agreements with Peru and Colombia will be much better. We urge you to expeditiously consider and pass the Peru and Colombia Trade Promotion Agreements.”

NINETEEN New Co-Sponsors Sign on to Death Tax Repeal:  To help preserve America’s family farms and ranches, NCBA continues its long-standing push for full and permanent repeal of the Death Tax.  H.R. 2380 was introduced on May 17 and this bill NOW has 128 cosponsors. 

These NINETEEN NEW CO-SPONSORS have signed on since publication of last week’s CCC: Reps.  Tim Ryan (D-Ohio), Dennis Cardoza (D-Calif.), David Davis (R-Tenn.), Chip Pickering (R-Miss.), Sam Johnson (R-Texas), Wayne Gilchrest (R-Md.), Lincoln Diaz-Balart (R-Fla.), Harold Rogers (R-Ky.), John McHugh (R-NY), Howard McKeon (R-Calif.), Frank Wolf (R-Va.), Thaddeus McCotter (R- Mich.), Roger Wicker (R-Miss.), Shelley Berkley (D-Nev.), Gary Miller (R-Calif.), John Mica (R- Fla.), Steven LaTourette (R-Ohio), David Reichert (R-Wash.), Jack Kingston (R-Ga.)! NCBA’s rancher-members thank these individuals for supporting America’s family businesses!

Currently, a 10-year phase-out of the Death Tax ending in full repeal is scheduled to take effect by 2010.  But the tax is then scheduled to be re-instated in 2011, back to 2001 levels. H.R. 2380 makes the repeal permanent.  With rates ranging from 37 to 55 percent, the Death Tax is a leading cause of the break-up of U.S. family farms.  Too often ranches and farms must be sold to pay the tax bill, and the land is often purchased by developers.

Similar legislation, H.R. 1586, was introduced by Rep. Mac Thornberry (R-Texas) on March 20th. That bill currently has 76 co-sponsors. NCBA continues to urge all cattle producers to contact their members of Congress about this important issue. Download our full-color fact sheet on this issue at www.beefusa.org.

Korean Trade Update: Major South Korean retail outlet Lotte Mart started to sell U.S. beef early this week.  Reportedly sales are going extremely well. Overall, exports of U.S. beef to South Korea are now expanding rapidly. Looking at the most recent trade data, as of late May, most major U.S. beef exporters were still in the process of fully ramping up a resumption in exports to Korea of de-boned beef from cattle less than 30 months of age. Even so, the U.S. was able to export 975 metric tons of beef to South Korea during May. Anecdotal industry discussion strongly suggest that monthly exports grew significantly in June compared to May and are continuing to increase into July. According to industry analysts the Korean market reopening to deboned beef added about $31 per head to the value of every finished steer marketed in the United States between late April and late May. Korea’s regulatory process for fully normalizing U.S. beef exports is now well underway and is expected to be completed sometime in September.

Upbeat Export News: During May, the U.S. exported an all-time record value of beef for any month to both Canada ($50.9 million versus $38 million in June 2003) and Mexico ($67.5 million versus $67.1 million in June 2003). U.S. beef exports through the first five months of 2007 finished 16 percent larger than they were during the same time last year. The removal of the 100 percent box inspection requirement in Japan and the resumption of trade to Korea also showed up in the May export statistics. Of the 88 open markets, 53 accept bone-in products and 30 accept product from animals older than 30 months (OTM) of age. However, 16 countries still have a BSE-related ban on U.S. beef: Argentina, Australia, Belize, Bolivia, Brazil, Brunei, China, Ecuador, the French Pacific Islands, Israel, Kenya, Qatar, Romania, South Africa, Uruguay and Venezuela.

WTO Talks Next Week: Reportedly, WTO negotiators will be meeting in Geneva next week to discuss the draft Doha Round agriculture agreement issued Tuesday. Agriculture negotiations chairperson Ambassador Crawford Falconer and non-agricultural market access (NAMA) chairperson Ambassador Don Stephenson circulated their revised draft “modalities” on July 17, 2007. The drafts are based on WTO member governments’ latest positions in the negotiations and are an assessment of what might be agreed for the formulas for cutting tariffs and trade-distorting agricultural subsidies, and related provisions. This release kicks off another intensive series of meetings for members to try to reach agreement, and probably to amend the draft. The drafts put the possible areas of agreement on paper so that members can react and further revise the texts.

NCBA believes the WTO is the mechanism capable of generating the political force necessary to move the agricultural trade liberalization process forward. Without forceful U.S. leadership in this multilateral context, U.S. beef producers will suffer under the trade-distorting forces of mercantilism and protectionism. NCBA will strive for real and additional market access opportunities for U.S. beef exports, the elimination of export subsidies and a substantial reduction in production subsidies in multilateral agreements through the WTO. 

Baseball Star in Japan to Support U.S. Beef: In news from the U.S. Meat Export Federation (USMEF), hall-of-fame baseball pitcher Nolan Ryan traveled to Japan to participate in American Meat Month, conducted to increase demand among consumers and trade for U.S. beef and pork.

“Ryan, who resides in Texas and now a U.S. beef producer, threw the first pitch in front of more than 15,000 fans at the baseball game on July 18 between the Orix Buffaloes and the Chiba Lotte Marines, coached by former fellow New York Mets player Bobby Valentine,” says USMEF. “Many national papers and TV stations have reported on American Meat Day at the stadium and spoke of Ryan as the American Meat Goodwill Ambassador. Before the excitement on the field, Ryan and Valentine also took part in the pre-game festivities. The former players talked about U.S. red meat’s great taste and high quality. They conducted a fun quiz of meat-related questions.”

USMEF sold 400 bento box meals featuring U.S. beef and pork prior to the game. Other USMEF activities during American Meat Month in Japan include a media conference with U.S. pork and beef producers, trade seminars for U.S. meat buyers identifying new products, retail store promotions to encourage consumers to buy U.S. red meat and advertising support in newspapers, magazines and commuter trains to build on the “Delicious Everyday” theme for U.S. pork and the “We Care” theme for U.S. beef.

Don't Miss NCBA’s Cattlemen to Cattlemen: Tune into NCBA’s Cattlemen to Cattlemen on RFD-TV at 10:00 a.m. (Eastern Time) this Saturday as we take a look at the benefits of using growth enhancement technologies on your operation.  Also, we’ll examine the importance of low stress cattle handling. 

On next week’s NCBA’s Cattlemen to Cattlemen, beginning Tuesday, July 24, we will honor cattle operations that have demonstrated an outstanding commitment to environmental protection and preservation. First, we take you on a tour of the award-winning Lightsey Cattle Company, located near Lake Wales, Florida. Next, we head west to the Work Ranch near San Miguel, California. Then we’ll take you to the sandhills of Nebraska, where the Kelly family has operated the Buckboard Ranch for 117 years. Just a little farther west, near LaGrange, Wyoming, we visit the Thaler Land and Livestock Company. The Thaler family earned the 2007 National Environmental Stewardship Award for its commitment to improving preserving rangeland on their own property, as well as land they lease from the State of Wyoming. You’ll also learn about the 2007 Ranch Stewardship LIVE Tour, which may be headed to a location near you.

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: Tanya A. Camarra or Karen Batra at 202-347-0228, tacamarra@beef.org 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.