July 7, 2005

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).

Death Tax Repeal Hits the BIGTIME: Word has it that the U.S. Senate could consider permanent repeal of the Death Tax upon returning from its Fourth of July recess, with the vote predicted to take place in late July. Therefore, the next three weeks are critical in our fight for full, permanent repeal of this daunting tax.

NCBA members have been publicly exposing the unfair ramifications of the Death Tax for decades, and all of our long-term efforts lead up to this pivotal moment. In previous years, full repeal has passed the U.S. House but has been shut down by the U.S. Senate. We hope 2005 will go down in history as "the year the Death Tax finally died." Now is the time for cattle producers across the country to stir up their neighbors, round up their buddies, and make official plans to contact their Senators. Lawmakers need to hear personal stories about how this tax hurts small business operations in their home state, and why the Death Tax must GO!

Why is the Death Tax so bad for cattle producers? Death Taxes are one of the leading causes of the destruction of multi-generation family cattle businesses. In an asset-rich and cash-poor business like ranching, the appraised value of rural land is extremely inflated when compared to its agricultural value. Many families are forced to sell off land, parts of the operation, or the entire ranch to pay off tax liabilities. This takes more open space out of agricultural production and forces it into the hands of urban developers. The Death Tax is an unfair tax on American values and the American dream. The death of a family member should not be a heyday for the IRS.

The current temporary repeal on the books was a step forward. But unless they’re planning on dying in 2010— its impossible for small business owners to avoid this huge burden at the time of death. Because of the so-called "sunset provision" in the law, the Death Tax will be fully repealed only in 2010. This is the chance for farmers and ranchers to permanently eliminate this tax which prevents them from passing their operations on to the next generation. If you have a story to tell about how the Death Tax has hit your family or operation, contact your Senators by calling 202/224-3121, or write a letter via fax or submit it on their websites at www.senate.gov.

CAFTA STILL on Fast Track: The Senate debated the U.S. Central America-Dominican Republic Free Trade Agreement (CAFTA) late into the evening last Thursday night, June 30, eventually passing CAFTA by a vote of 54-45. This vote clears the path for the trade agreement to be debated in the House following Congressional recess. The House Ways and Means Committee passed the agreement June 30 which once reported out of Committee will begin the 15-legislative day clock for consideration. NCBA producer-members have been urged to contact their lawmakers and make a final push for the trade agreement before the House vote. For more information about the beef provisions of CAFTA-DR and NCBA’s economic analysis, visit http://hill.beef.org/cafta.

Contact your U.S. House Representative by calling 202/224-3121, or write a letter via fax or submit to their websites, found at www.house.gov.

CAFTA ACTION This Week: Cattlemen should continue to contact their members of Congress - especially during the July 4 recess - and ask for full passage of CAFTA as soon as possible. A continued push from cattlemen in the country will make a difference when the House begins debate.  Attend town hall meetings or other events this week, write letters to members of Congress, or call their offices to ask that they cast their vote in support of this agreement. Your conversation just might be the one your Senator or Congressman remembers when he casts his vote! Stop the BOGUS CAFTA CLAIMS! For more information, go to: www.beefusa.org/goveforeigntrade.aspx or hill.beef.org/cafta

Cattlemen Submit Comments on Animal ID: This Wednesday July 6, NCBA submitted comments to the U.S. Department Agriculture on their National Animal Identification System (NAIS) Draft Strategic Plan and the NAIS Draft Program Standards. NCBA’s Animal ID Commission has worked for some time on development of a private-sector system that would accomplish all of the animal health surveillance and trace-back objectives of the NAIS. NCBA believes that a private-sector system will fully protect confidentiality of producer information and offer value-added incentives for participation. Specifically, NCBA comments sent to the USDA state: "NCBA believes that government should not offer a system that competes with a private sector network system… Many producers have an innate skepticism about providing information to state and federal animal health authorities; therefore, we believe the private database network system will work better for both the nation’s animal health authorities and producers alike." NCBA’s comments are posted in full on our animal ID website at http://www.beefusa.org/AnimalID.aspx.

NCBA Announces Animal ID Technology Partner: In related news, after an extensive evaluation process, NCBA’s Animal Identification Commission has selected a team led by BearingPoint, Inc. (NYSE:BE), as the lead technology consultant for its industry-based, animal ID program. BearingPoint, working with ViaTrace, Microsoft and S&H Marketing, will provide information storage for the industry-led national animal identification program. More than 10 companies were considered during the initial request for information.  The BearingPoint team was selected due to the group’s experience in large system integration efforts and its demonstrated understanding of producer, state and federal government needs.  While federal and state animal health authorities will be able to access relevant parts of this database for trace back in the event of a disease outbreak or animal health-related incident, the data will remain the property of the individual and stored within a multi-species consortium to maintain confidentiality. Another top priority for the Commission was the speed with which a national animal identification system could be implemented. While USDA has announced plans to have a program in place by 2009, the Commission’s desire was to significantly expedite this timeline. As a result, the BearingPoint team is expected to Beta test the system by October 2005, and to be fully operational by January 1, 2006. Find more information on NCBA’s efforts to implement a national animal identification system at: http://www.beefusa.org/AnimalID.aspx.

Coarse Particulate Matter (PM) Standards: Last Thursday June 30, 2005, the Environmental Protection Agency (EPA) released staff recommendations regarding standards for coarse PM. These recommendations will be used during the EPA Administrator's consideration of this regulatory issue. In good news for cattle producers, the staff adopted the Clean Air Scientific Advisory Committee (CASAC) recommendation to replace the current PM10 standard with an urban-only standard (UPM10-2.5). They recommended against regulating dust in rural areas because scientific evidence does not support such regulation. While NCBA's maintains its position that no coarse PM standard is warranted by the science in urban or rural areas (and we will continue to push this position), an EPA staff recommendation for an urban-only standard is a very positive development. The rural/urban distinction is the direct result of NCBA's unrelenting participation in this debate over the past two years.

Consumer Confidence Remains Strong: As media interest remains strong regarding the case of BSE announced June 24, cattlemen can be assured that consumer confidence in beef remains high. A consumer tracking survey conducted immediately following USDA’s announcement of the 2nd U.S. case of BSE, the first indigenous U.S. case, found that consumer confidence remains unaffected at 92 percent. Retailers are reporting that July 4th sales of beef were stronger than ever. A July 5 Reuters story noted "The beef industry may be particularly relieved by reports of brisk holiday meat sales, because it should prove that consumers were not turned away by the latest case of mad cow disease."

USDA BSE Surveillance: NCBA continues to respond to media inquiries after USDA announced a confirmed a case of BSE on June 24, and announced June 27 the animal’s age (approx. 12 years old) and that its herd of origin was in Texas. Since June 2004, the U.S. BSE Enhanced Surveillance Program has tested 400,691 targeted animals at highest risk for BSE and has found only this case, which confirms that our firewalls 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.

TPA Update: Trade Promotion Authority (TPA) was automatically extended to June 30, 2007. TPA gives the Administration the authority to negotiate trade deals that Congress would have 90 days to approve or reject, but not amend. Since TPA was signed into law, the Administration has finalized trade agreements that were in the making for a decade or more, such as Chile, as well as initiated an aggressive campaign of new bilateral agreements. TPA is the primary way to level the playing field around the world and successfully negotiate tariff reductions in Japan, Korea and other markets, reduce beef production subsidies and eliminate EU beef export subsidies.

Farm Bill Listening Session: The first of USDA’s Farm Bill Listening Sessions is scheduled for tonight in Nashville, Tenn. from 6:00 to 10:00 pm (CDT). The forum will also be broadcast live on RFD-TV, and the forum will accept calls from across the nation. In preparation for the new Farm Bill, USDA Secretary Mike Johanns has insisted that farmers and ranchers need to voice their opinions on how farm policy is developed. Cattlemen are also encouraged to submit comments electronically or via mail by December 30, 2005. Instructions for filing comments and other information can be accessed on the USDA home page at www.usda.gov by selecting "Farm Bill Forums." USDA will also post additional notices of future listening sessions on their website at www.usda.gov/farmbill.

Raymond Confirmation: USDA announced July 1 that the U.S. Senate confirmed Dr. Richard Raymond by unanimous consent to serve as USDA’s Under Secretary of Agriculture for Food Safety. Raymond was nominated to the post by President Bush on May 26. Previously, Raymond served as Chief Medical Officer for the Nebraska Health and Human Services System, and as the chief public health spokesperson for the state. He also served as the Director of the Nebraska HHSS Department of Regulation and Licensure.

Ohio Cattlemen’s Association Meeting: Gregg Doud will be traveling to Ohio State University’s Newark Campus on Friday for the Ohio Cattlemen’s Association 2005 Summer Round-Up, which runs July 8-9th. Doud will give an international beef trade update and will share the latest information on export markets for U.S. beef and current trade agreements.

Congressional Schedule: Congress is out of session this week for their July Fourth recess. They are scheduled to reconvene on Monday, July 11.

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