Congressional Schedule/Farm Bill Discussions: Congress is at home this week for the Fourth of July recess. They are scheduled to reconvene Monday, July 9. Farm Bill markups will likely take top priority when Congress returns. The House Ag Committee has scheduled a mark-up of the 2007 Farm Bill for July 17-19, 2007.

In related news, the Senate Agriculture Committee held a field hearing on Farm Bill policy proposals on July 2 in Great Falls, Montana. Steve Roth, President of the Montana Stockgrowers Association was among the scheduled witnesses.

Also, Secretary of Agriculture Mike Johanns and Rep. Tom Latham (R-Iowa) hosted a Town Hall meeting in Ames, Iowa on July 3 to discuss the Administration's Farm Bill proposals. Secretary Johanns told participants that he is satisfied with progress so far in the Farm Bill debate, and expects the new Farm Bill will be finalized and voted into law by the end of the year.

Cattlemen Urge Congress to Fix Country-of-Origin Labeling: With Congress on recess this week and scheduled to intensify their discussions on Farm Bill issues in the coming weeks, a priority issue for NCBA members is country-of-origin labeling. NCBA is looking to work with Congress on an approach to remedy the mandatory country-of-origin labeling law.

Many agriculture groups agree that paperwork and documentation requirements in the current law are unclear. The current law could allow packers and retailers to demand impossibly complicated documentation. For example, the American Meat Institute is telling its members that they should demand the following from livestock producers:

- documentation of where the livestock purchased were born and raised;

- affidavit or declaration with each load of livestock purchases stating that there is a verifiable audit trail in place that identifies where the livestock in each load were born and raised;

- access to records so that the packer can perform audits as necessary to satisfy retail customers, ensuring that an accurate record-keeping system exists and that it has been or is being verified by an acceptable third-party; and

- indemnity for the packer for liability incurred from inaccurate information supplied by the producer.

Livestock producers will be responsible for maintaining an acceptable recordkeeping system, as well as bearing the costs of audits to ensure the accuracy of the information. Although the current law does not specify what kinds of records or documentation are required to comply with the law, we are told that self-certification will not satisfy the requirements.

Korea Trade Update: South Korean inspectors are here in the U.S. and touring ranches, packing plants and feed facilities this week. The inspection tour is expected to run through July 8. The team is led by Ministry of Agriculture and Forestry Chief Veterinary Officer Kim Chang-seob. Korean officials are evaluating the U.S. ruminant-to-ruminant feed ban compliance. According to the latest trade reports, sales of U.S. beef to the Korean market continue to increase. This is providing a much needed boost to the cattle industry.

On Saturday, June 30, U.S. Trade Representative Susan Schwab signed the U.S. - South Korea Free Trade Agreement. NCBA will urge Congress NOT to pass the final agreement until beef trade with South Korea is fully re-instated. South Korean Deputy Trade Minister Lee Hye-min told reporters this week that it would not be easy for the U.S. Congress to endorse the agreement, without a full resumption of beef imports to South Korea. There is no word on when Congress could vote to ratify this important agreement.

Japan Trade Update: On July 4, Japan lifted an export ban on Jobbers Meat Packing Co. of Los Angeles, California. The ban had been in place since March 2007 after a shipment was sent supposedly containing processed U.S. beef sausage, which turned out to be chicken and pork.

In related news, USDA's Agricultural Marketing Service approved four new U.S. beef plants to ship product to Japan, bringing the numbers of plants eligible for shipping product to 39.

Finally, the U.S. and Japan finished up two days of technical talks last week with no final agreement regarding the Japanese ban on U.S. beef from cattle 21 months or older. The U.S. submitted data originally given to the World Organization for Animal Health (OIE), and Japan is said to be examining this data. The OIE designated the United States as being a "controlled risk" for BSE in May. NCBA continues to urge that global beef trade should be governed by these OIE guidelines. This means there cannot be age restrictions on U.S. beef exports. Right now, Japan only allows imports of U.S. beef from cattle 20 months old or younger. NCBA will continue to push for the resumption of all U.S. beef exports to Japan, in line with international guidelines.

WTO Talks Again: Top trade officials from the 21-member Asia Pacific Economic Cooperation (APEC) are in Australia this week for world trade talks. The U.S. and Australia want to work with these nations to rekindle stalled trade talks. U.S. trade officials are saying that if APEC is able to come together with a group statement, this would have a positive influence on the outcome of upcoming discussions in Geneva. This comes after recent meetings in Germany between the United States, the European Union, Brazil and India (G4) resulted in another stand-still. NCBA believes the WTO is the only 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 continue efforts to market high-quality U.S. beef on an international level and will support continued movement toward reduced tariffs and expanded tariff rate quotas through WTO negotiations and bilateral agreements.

TPA Expires: The President’s Trade Promotion Authority (TPA) expired as of June 30. This undermines our potential to expand and negotiate trade agreements, and is bad news for U.S. producers. With the Doha Round of WTO negotiations languishing, our competitors in world beef trade are already making contingency plans while we sit idle with no TPA. "Due to the expiration of TPA," says NCBA Chief Economist Gregg Doud, "cattlemen have no ability to do anything about this while our competitors seek bilateral deals to carve up beef markets for themselves. For example, Australia is negotiating a bilateral agreement with the Japanese, and Brazil is talking to the EU about a bilateral agreement as well."

TPA allows the President to negotiate trade agreements with other countries and requires Congress to approve or disapprove those deals without amendments. Foreign governments are reluctant to negotiate with the United States if the administration doesn't have such authority.

NCBA is extremely disappointed that Congress did not take this up before its expiration. Cattle producers worked hard for its passage, and expanding our market access and lowering tariffs through trade agreements is the best way for cattlemen to prosper. We need TPA to facilitate passage of those agreements.

Energy Wrap Up: Late last week, after two days of markup, the House Energy and Commerce Committee passed its version of an energy bill by a vote of 33-21. Fortunately, no language to increase the Renewable Fuel Standard (RFS) or create an Alternative Fuel Standard (AFS) was included in the bill that was passed by the Committee. NCBA opposes any increase above 7.5 billion gallons for feedgrain-based ethanol mandates. NCBA is urging Congress to take a market-based approach for ethanol production and to focus on greater use of ethanol derived from products other than feedgrains.

The House bill also contains language offered by Rep. Nathan Deal (R-Ga.) which calls for a study of the impact of the RFS on the economy, food producers, the environment, public health, and transportation infrastructure.

As occurred in the Senate, this Energy and Commerce package will likely be combined with energy provisions from other committees as it heads to the House floor. This larger package could be considered before the August recess.

EIGHT Co-Sponsors Sign on to Death Tax Repeal: NCBA continues its long-standing push for full and final repeal of the Death Tax. Representatives Kenny Hulshof (R-Mo.) and Robert Cramer (D-Ala.) introduced H.R. 2380 on May 17. This bill currently has 103 cosponsors, with EIGHT NEW Co-sponsors: Reps. Marsha Blackburn (R-Tenn.), Robin Hayes (R-N.C.), Jean Schmidt (R-Ohio), Candace Miller (R-Mich.), Todd Platts (R-Penn.), Shelley Moore Capito (R-W.Va.), Dana Rohrabacher (R-Calif.), and Heather Wilson (R-N.M.) signed on June 28.

Currently, a 10-year phase-out of the Death Tax to full repeal is scheduled to take affect 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.

FIVE New Superfund Co-Sponsors: NCBA members continue working to support legislation to clarify that livestock manure should not be regulated under Superfund laws. In the 110th Congress, both the House and Senate have re-introduced bills that would exempt manure from regulation as a Superfund material. S. 807 and H.R. 1398 were introduced by Senators Blanche Lincoln (D-Ark.) and Pete Domenici (R-N.M.) in the Senate, and Representatives Collin Peterson (D-Minn.) and Ralph Hall (R-Texas) in the House.

In the House, there are now 126 co-sponsors with Reps. Shelley Moore Capito (R-W.Va.), Phil Hare (D-Ill.), Ken Calvert (R-Calif.), Peter Hoekstra (R-Mich.), and Hank Johnson (R-Ga.) signing on June 28. The Senate bill has 26 co-sponsors.

Animal Health: Agriculture Secretary Mike Johanns and members of Iowa's Congressional delegation participated in the dedication of the U.S. Department of Agriculture's new high-containment large animal facility in Ames, Iowa on July 3rd. Members of Congress attending the dedication included Senate Ag Committee Chairman Tom Harkin (D-Iowa), Senator Charles Grassley (R-Iowa), Rep. Leonard Boswell (D-Iowa), and Rep. Tom Latham (R-Iowa). The new building, which combines several research facilities into one location, contains more than 155,000 square feet and will house cattle, bison, elk, deer, reindeer, sheep and hogs. Employees in the new facility will conduct research, diagnostics and training, as well as test vaccines and evaluate veterinary biological products.

The center consolidates three units within two USDA agencies:

- Agriculture Research Service's (ARS) National Animal Disease Center, which conducts research concerning animal health and diseases with an agricultural impact;

- Animal and Plant Health Inspection Service's (APHIS) National Veterinary Services Laboratories, which serves as a national and international reference laboratory and provides diagnostic services, reagents and training; and

- APHIS' Center for Veterinary Biologics, which regulates vaccines, bacterins, antisera, diagnostic kits and other biological products for the diagnosis, prevention and treatment of animal diseases.

For years, NCBA has actively lobbied Congress for funding to help enhance our nation’s animal health infrastructure. NCBA has worked over the past several years to ensure that agriculture appropriations bills include funding for upgrading our animal health facilities in Ames and to provide for research on animal diseases and monitoring and surveillance programs to protect our animals from the introduction of foreign animal diseases.

USDA says construction of the new facility lasted three-and-a-half years and cost approximately $85 million. It is the second component of a multi-phase, $460 million project.

Irradiation Comments to FDA: NCBA submitted comments on July 2 to the Food and Drug Administration regarding irradiation of beef. NCBA believes that processing establishments should make an ardent effort to minimize the threat of foodborne illness and increase pathogen control. NCBA comments state, "Our industry has found that irradiation is a safe way to address microbial growth of pathogens such as E.coli O157:H7, while maintaining the integrity of the food and its nutritional value."

NCBA points to a report prepared by the World Health Organization, the Food and Agriculture Organization of the United Nations, and the International Atomic Energy Agency titled "Wholesomeness of Irradiated Food." The report concluded that "irradiation of any food commodity at any dose introduces no toxicological hazard; hence toxicological testing of food so treated is no longer required."

"Irradiation is a time-tested, safe and effective method of food preservation and controls disease causing organisms," says NCBA.

Countdown to Cattle Industry Summer Conference: NCBA continues preparations for meetings and events at the 2007 Cattle Industry Summer Conference, July 16-20 in Denver. The event is co-sponsored by NCBA, the Cattlemen’s Beef Board, American National CattleWomen, Inc. (ANCW), and Cattle-Fax. Advance registration for the Cattle Industry Summer Conference is now closed but attendees can still register on-site in Denver at the Adam's Mark Hotel.

NCBA’s popular Issue Forums will take place on Wednesday, July 18. This year, one Issue Forum will be devoted entirely to environmental policy issues. NCBA policy committee meetings are scheduled for Thursday, July 19. These sessions provide an update on the progress of member-driven NCBA policies that were adopted at the Cattle Industry Annual Convention in February.

Entertainment options for those attending the Summer Conference include a Western Swing event sponsored by Dow AgroSciences and USDA-NRCS, where the 2007 ESAP regional winners will be announced and honored. A billiards tournament will be held on July 19 in support of the NCBA-PAC, and ANCW will be holding its annual silent auction.

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 for a special feature show on John Wayne, the legendary award-winning actor, often called the on-screen epitome of the American cowboy.

On next week’s Cattlemen to Cattlemen, beginning Tuesday, July 10th, the show will feature some of the best reports from the Cattle Learning Center, including a report on horn flies, nuisance flies, and how best to handle them on your operation.

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