Cattlemen's Capitol Concerns: July 8, 2004

Cattlemen's Capitol Concerns
July 8, 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 the National Cattlemen’s Beef Association (NCBA).

USDA Surveillance for BSE: USDA continues its enhanced BSE surveillance program which began on June 1. APHIS posts the test results on their website at:  http://www.aphis.usda.gov.  As of July 6, 2004, 8,585 tests have been conducted. Initial rapid tests revealed "inconclusive" results on two separate animals. Both animals subsequently tested negative using the immunohistochemistry tests at the National Veterinary Services Laboratory in Ames, Iowa.  NCBA is making every effort to be accessible to the media during this time to help educate consumers on this animal health issue. NCBA supports this large, one-time sampling of the at-risk cattle population, and we are confident that increased BSE testing will prove that disease risk in the United States is extremely low.  As America’s beef producers, providing safe and wholesome beef remains our number one priority.

USDA Announcement Procedure: As part of their commitment to open communications, the USDA has made official announcements to the media and the public each time a rapid test in their enhanced BSE surveillance program yields an "inconclusive" result.  USDA will not share any details about the animals such as location, age, breed, etc., unless a positive case occurs, but the agency has emphasized that the animals would not enter the human food chain or feed production.  NCBA supports open reporting of inconclusive BSE test results to help avoid rumors, speculation and increased market volatility, and to ensure that all parties have the same information at the same time. NCBA will continue to insist that USDA’s testing procedures are thorough and avoid needless inconclusive findings and therefore reduce the risk of market disruption.

Animal Feed Rule:  The Food & Drug Administration is expected to publish its Advance Notice of Proposed Rulemaking (ANPR) tomorrow on enhanced BSE safeguards regulating animal feed.  The ANPR will be followed by a proposed rule and comment period before final rules are published.  NCBA supports increasing feed and rendering mill inspections because, as cattle producers, we expect full compliance with the feed ban. The FDA feed ban, which began in 1997, has more than 99 percent compliance, one of the highest levels of compliance of all the FDA regulations. NCBA supports the FDA requirement of dedicated lines in feed mills and we have for many years encouraged the feed industry to employ that process to reduce the risk of cross contamination. In related news, Canada's Agriculture Minister Bob Speller said his government will implement new BSE regulations, which will be harmonized with the FDA's new regulations.

Morocco Hearing:  NCBA attended a hearing this week on implementation of the U.S./Moroccan Free Trade Agreement.  The House Ways and Means Committee hosted the hearing on Wednesday to assess the benefits that the Moroccan Agreement will bring to American businesses, farmers, workers consumers and the U.S. economy. NCBA believes U.S. cattle producers will gain future benefit from the agreement which will open doors for increased quantities of our high-quality beef to be exported to their extensive hotel and restaurant industry, where there is a growing demand for beef products. The agreement now awaits final approval in Congress. NCBA will be conducting informational briefings for Congressional staffers on Capitol Hill next week and writing letters in regards to this trade agreement.

Export Markets Reopening: NCBA continues to fight for re-opening of particular export markets that continue to remain closed since the December 23rd BSE case. Many nations have lifted or lessened their bans on U.S. beef over the past few months, but NCBA’s top officials continue to push for full and complete flow of trade. This week, NCBA leaders are meeting with top government officials to demand that any export market closure must be based on science, and not political trade battles.

Death Tax: Although it’s been off the radar in Congress recently, permanent repeal of the Death Tax remains to be a top priority for President Bush.  When speaking this week in regards to the economy, the President stated "there's a lot of family-owned businesses around our country. And one of the real difficulties for family-owned businesses is the fact that we tax a family's assets twice because of the Death Tax. It's important that Congress understand what the Death Tax does to capital formation and the ability for the small business sector to invest… They just need to make the repeal of the Death Tax a permanent part of the tax code." NCBA has long supported full repeal of the Death Tax which has historically prevented many ranching families from passing their operations on to the next generation. Because of congressional budget rules, the onerous Death Tax - with tax rates ranging from 37 to 55 percent - will be reinstated only one year after it is repealed, in 2011.  This means the Death Tax will continue to force some families to sell an active, successful business when the owner dies. NCBA will continue to fight for permanent repeal.

Feedlot Tour Next Week:  Several issues of critical importance to the continued viability of cattle operations throughout the country are currently being considered by the Environmental Protection Agency (EPA).  NCBA is working to educate top officials on these issues, and is organizing an educational feedlot tour. Officials are invited to tour several feedlots around the country on July 14-19. NCBA has chosen four sites that will illustrate the variety of site characteristics present at open-air feedlots, selections which are responsive to EPA’s requests. The issues of most critical importance to producers are: (1) whether or not the Clean Air Act’s major source permitting programs (Title V, PSD & NSR) apply to "cattle operations," as defined in our application for ruling (they do not include barns, lagoons, or major stationary sources); (2) whether or not CERCLA and EPCRA release reporting requirements apply to "cattle operations"; and (3) the need and basis for coarse particulate matter NAAQS or PSD increments.

The feedlot tour hopes to facilitate sound and informed decision making at the EPA. The tour group will visit a "wet" Kansas feedlot tour, Texas Panhandle Feedlots, and the largest feedlot in the United States in Idaho. As lawsuits against non-cattle animal feeding operations have multiplied, so has widespread concern and uncertainty among our members nationally.  NCBA hopes these tours will provide all of the remaining information necessary for the EPA to make decisions on the applicability of air permit and CERCLA/EPCRA emergency release reporting requirements, and will help with consideration of additional regulation of coarse PM.  NCBA respectfully requests that the EPA expedite decisions on cattle producer's requested rulings after the tours.

Country-of-Origin Labeling:  NCBA, along with other agriculture food groups, continues to meet with members of Congress to urge their support for legislation that will create a voluntary country-of-origin program.  The "Food Promotion Act of 2004" (H.R. 4576) was introduced June 15 by House Agriculture Committee Chairman Bob Goodlatte (R-VA) and Ranking Minority Member Charles Stenholm (D-TX).  325 food groups have already signed on in support, and, to date, 26 members of Congress have agreed to co-sponsor the bill.  Cattlemen should call their members of Congress and urge their support of H.R. 4576.

Listening Sessions on Animal ID:  The next of USDA’s listening sessions on Animal ID will be held July 10 in Stockton, Calif. USDA is hosting the public forums to discuss the development, structure and implementation of a national animal ID program for all livestock and poultry animals. Future sessions scheduled include: 
-Stockton, Calif. - July 10
-Socorro, N.M. - July 16
-Pasco, Wash. - July 23
-Greeley, Colo. - Aug. 10
-Billings, Mont. - Aug. 13
-Kissimmee, Fla. - Aug. 16
-Columbus, Ohio - Aug. 18
-Ames, Iowa - Aug. 26
-Joplin, Mo. - Aug. 27
-Appleton, Wis. - Aug. 30
-St. Cloud, Minn. - Aug. 31 

Producers are encouraged to attend.  Details about each session, including the site and time of meeting, will be posted at http://www.aphis.usda.gov/lpa/issues/nais/nais_listeningsessions.html.  NCBA remains committed to a private sector system and feels this is the best way to protect producer confidentiality.

California Cattlemen’s Meeting:  In related news, NCBA Executive Director of Legislative Affairs Jay Truitt is in Sacramento for the California Cattlemen’s Midyear Meeting July 7-9.  Truitt will brief participants on NCBA’s efforts to develop a private sector animal identification system.

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

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