Cattlemen's Capitol Concerns: June 17, 2004

Cattlemen's Capitol Concerns
June 17, 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).

Drought Relief Victory:  Hot off the U.S. House floor, a new tax bill passed this afternoon contains vital drought-relief measures for producers. The provisions, shepherded by Rep. Scott McInnis(R-CO) and Sen. Craig Thomas (R-WY) were included in the larger ‘American Jobs Creation Act,’ which passed the House today, 251-178.  NCBA has worked with members of Congress for many years to push for the passage of such legislation, requesting changes in the tax code to enhance the business climate for cattlemen. The legislation includes a provision which allows for the extended deferral of capital gains tax from drought-related sales of livestock, previously referred to as the "Rancher Help Act." Another provision would give a tax credit to cattle producers who produce electricity from renewable resources like livestock waste nutrients. 

NCBA producer-members are extremely pleased the House has passed this tax change for cattle producers. With Senate passage of this tax provision last month, we are at the cusp of a final victory. Many across the country have been suffering through drought conditions for years, and are in dire need of tax help. Currently, ranchers forced to reduce herds due to drought are exempt from paying capital gains tax only if they replace their herds within two years. With many regions are seeing year after year of drought, the added tax burden is crippling. This legislation increases that time frame to four years and will be a dramatic help for those trying to save their livelihood during long-term, unexpected, drought conditions. NCBA will continue to push for final passage of these importance tax code changes for producers.

Country-of-Origin Labeling:  NCBA, along with other producer groups representing America’s pork producers, seafood producers and produce grower-shippers are supporting legislation that will create a voluntary country-of-origin program.  The "Food Promotion Act of 2004" (H.R. 4576) was introduced Tuesday by House Agriculture Committee Chairman Bob Goodlatte (R-VA) and Ranking Minority Member Charles Stenholm (D-TX).  NCBA President-elect and Texas producer Jim McAdams joined Reps. Goodlatte, Stenholm, Robin Hayes (R-NC), and other producers at a Capitol Hill press conference to explain why the voluntary approach will be more beneficial for producers and consumers alike.  

-Existing Programs Serve as Models:  "There are already hundreds of labeling programs for beef, pork, fish, and produce which have proven their value for producers and consumers," said McAdams.  "…and they’re all voluntary!  We want to piggy-back on that success and model country-of-origin labeling on those programs instead of using a government mandate to do what we know we can do on our own." 

-Voluntary Approach Has Broad, Bi-partisan Support:  A voluntary country-of-origin labeling program will be more inclusive and can include anyone who wants to participate, from producers to processors to retail and food service.  Chairman Goodlatte said already 325 food groups have signed on in support.  The bill currently has 18 co-sponsors.  Cattlemen should call their members of congress and urge their support of H.R. 4576.

Environmental Winners Announced!: Seven U.S. cattle operations have been selected as regional winners of the National Environmental Stewardship Award Program (ESAP). The ESAP selection committee is proud to announce this year’s winners:
-Region I: McElhaney Stock Farm, Hookstown, Pennsylvania
-Region II: Williamson Cattle Company, Okeechobee, Florida
-Region III: White Family Farms, Estherville, Iowa
-Region IV: Chain Land and Cattle Company, Canton, Oklahoma
-Region V: Barthelmess Ranch, Malta, Montana
-Region VI: DC Cattle Co. L.L.C, Globe, Arizona
-Region VII: Gerald Roise Ranch,  Powers Lake, North Dakota

This marks the 14th annual team of winners, an exceptional achievement award recognizing operations that use innovative practices to protect and enhance natural resources, while at the same time maintaining or increasing profitability. The program is sponsored by Dow AgroSciences and the Natural Resources Conservation Service (NRCS), and administered by NCBA. The recipients are selected by a committee consisting of past winners, university faculty, key representatives of federal and state government agencies, conservation and environmental organizations. This year’s group represents diverse geographical areas across the country, and many generations of families who are generously giving back to the land that was given to them. The winners will be formally recognized at the 2004 Cattle Industry Summer Conference in Denver, Colorado this August 9-13.

Animal ID Funding: The USDA announced this week that it will award funding for approximately 20 cooperative agreements to support their development of a National Animal Identification System. They are now seeking applications for such agreements. Up to $11,640,000 will be made available to state and federally recognized native American tribal governments for plans which will assist the agency’s initial implementation of a national premises ID system. A formal request for applications is posted online at: http://www.aphis.usda.gov/mrpbs/fmd/agreements_announcements.html
Emphasis will be placed on coordinating with the beef, dairy, sheep and swine industries.

NCBA Committed to Private ID System:  NCBA continues to work through its Animal ID Commission to develop a national animal identification system that would be implemented in the private sector.  Under the private sector plan, state and federal government officials would be provided with adequate information to improve the nation’s animal health surveillance systems. NCBA remains concerned that any system fully contained under the umbrella of the federal government risks producer privacy. 

USDA Listening Sessions on Animal ID:  The next USDA listening session on Animal ID will be held in Athens, Ga. on June 18. USDA is hosting the fourteen public forums to discuss the development, structure and implementation of a national animal ID program for all livestock and poultry animals. Future sessions will be held at 12 additional sites across the country throughout the summer.  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.html. 

Interior Appropriations: At press time, the U.S. House is currently debating passage of the FY2005 House Interior Appropriations Bill. Today, NCBA members urged members of Congress to vote NO on the Hinchey-Bass Interior Appropriations Amendment to the bill. This amendment attempted to place a one year moratorium on federal spending to manage and control buffalo in and around Yellowstone National Park. It would eliminate funding to implement the control measures necessary to keep brucellosis infected buffalo from migrating into domestic cattle areas. The U.S. cattle industry has spent years and millions of dollars to eradicate brucellosis infectivity among the domestic cattle herd. Hundreds of NCBA members are calling their representatives, to urging them to vote against this damaging legislation.

Forest Management Rules: In related news, the House defeated a move by Rep. Tom Udall (D-NM) to revoke proposed changes to Forest Management rules that will reduce the amount of environmental analysis and administrative procedures required in forest planning.  NCBA and the Public Lands Council support the proposed changes to the Forest Management rules because it simplifies administrative processes, requires fewer NEPA documents in connection with Forest Service activities, and reduces frivolous appeals of agency actions.  Western Republicans helped to defeat the Udall amendment 195-230 and say the rule changes are necessary because forest management plans currently take too long and cost too much.

Conservation Hearing: The U.S. House Committee on Agriculture’s Subcommittee on Conservation, Credit, Rural Development and Research held a hearing this week to review implementation of Farm Bill conservation programs. Congressman Frank D. Lucas (R-OK), Committee Chairman, called the programs a success, calling them the largest voluntary programs in history. Timothy Laatsch, an Environmental Systems Manager for Illinois pork operations, testified on behalf of cattle, dairy, swine, and poultry – collectively referred to as "livestock" for this particular testimony. NCBA’s Dave Petty represented this coalition last month in similar hearings before the Senate.

Livestock groups continue to emphasize the importance of efficient and effective implementation of the programs. NCBA worked very hard to assure an effective and well-funded conservation title of the 2002 Farm Bill. There are various programs that have specific implementation concerns for producer groups, including the Environmental Quality Incentives Program (EQIP), Comprehensive Nutrient Management Plans (CNMPs), Conservation Security Program (CSP), Grassland Reserve Program (GRP), and the implementation of Technical Service Providers (TSPs).

Agriculture Appropriations:  The U.S. House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies has approved the FY 05 spending bill for agriculture. NCBA is pleased that the appropriate priorities are being funded. Funding for BSE surveillance program, detection, and prevention was set at $20 million. The funds will assist in the new testing programs, surveillance program, increased FDA inspections, and even a toll-free hotline. Funding was also approved for the child nutrition programs and conservation programs, including about $1 billion for the Environmental Quality Incentives Program (EQIP).

Dr. Weber in Florida:  NCBA’s Executive Director of Regulatory Affairs, Dr. Gary Weber, is in Marco Island, Florida this week for the Florida Cattlemen’s Association Annual Convention and Allied Trade Show, which runs June 16-18.  Dr. Weber will give a presentation titled, "Understanding BSE and its Impact on the U.S. Beef Industry." NCBA President and Kansas cattle producer Jan Lyons is also attending the meeting this week.

Broadband Loan Workshops:  USDA is planning five broadband funding workshops across the country this summer to assist potential broadband loan applicants from rural areas. The workshops will give ‘hand-on’ instruction and technical assistance on how to apply for broadband infrastructure funding.  The workshops would be beneficial for interested cattle producers looking into broadband access options. The dates are: June 22nd in Chicago, Illinois; June 24th in Philadelphia, Pennsylvania; June 29th in Biloxi, Mississippi; July 13th in Portland, Oregon and July 15th in Phoenix, Arizona.

The workshops will are free, but registration will be required. They run all day, from 8:30 until approximately 5:00 p.m. For information about the Chicago, Illinois workshop, call 217-403-6202 or register at: shirley.reese@il.usda.gov. For the Philadelphia workshop, call 717-237-2299 or register at: kathryn.kauffman@pa.usda.gov. For more information, go to http://www.rurdev.usda.gov.

Morocco:  U.S. cattle producers across the country would gain future benefit from a free trade agreement (FTA) with Morocco, signed this week by the U.S. and Morocco. For more than a year now, NCBA has continually reiterated the cattle industry’s position on these trade negotiations, through comments, testimony, and meetings with trade officials. In March, the Bush Administration announced it had completed negotiations on this agreement.  The FTA will now await final approval in Congress.

This new agreement gives cattle producers new opportunities to promote U.S. beef in Morocco. It opens doors for increased quantities of our high-quality beef to be exported to their extensive hotel and restaurant industry, where there is an increasing demand for beef products. Our popular, coveted U.S. beef could do well in Morocco. Presently, products entering Morocco face some of the highest beef tariffs in the world.

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

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