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.

Energy Debate Continues in Senate: For most of the week, comprehensive energy policy has been the topic of debate on the Senate floor. Visiting cattle producers from Nebraska, Kansas, Colorado, and Texas worked alongside NCBA staff this week – walking the halls of Congress and urging our policy priorities. Amendments continue to be debated as the CCC goes to press. NCBA applauds action taken by Senator Kay Bailey Hutchison (R-TX) and Senator James Inhofe (R-OK) to address producers’ priorities.

Cattle producers have been urging support for amendment SA 1679, introduced by Senator Kay Bailey Hutchison (R-TX), which would create a study that would review the impact of the Renewable Fuels Standard (RFS) on producers of feed grains, food, livestock, and energy. NCBA and other agriculture groups told Congress in a letter sent this week, "as we look to establish these new sources of energy, it is vital that we study the changing landscape to evaluate the status of technology, the availability of feed stocks, and the overall effectiveness of our efforts."

Senator James Inhofe (R-OK) sponsored Senate Amendment 1666, which failed Wednesday night June 20th on a budget point of order by a vote of 31-63. SA 1666 would have created a "relief valve" to address disasters and other scenarios that would cause a shortfall of feedstocks and an inability to meet the RFS.

NCBA supports our nation’s commitment to developing forms of renewable energy, but opposes any increase in the mandates for feedgrain-based ethanol above 7.5 billion gallons. NCBA would support an increase in the cellulosic segment of the RFS. With feedgrain-based ethanol established as a robust industry within the marketplace, NCBA does not consider it appropriate for Congress to renew the volumetric ethanol excise tax credit (VEETC) of $0.51/gallon or the ethanol import tariff of $0.54/gallon beyond their current expiration at this time.

Senate Finance Committee on Energy: On Tuesday, June 19th, the Senate Finance Committee passed a package of renewable and alternative energy tax incentives by a margin of 14-6. This energy tax package was then offered as amendment SA 1704 to H.R. 6.

Prior to the Finance Committee markup of this legislation, NCBA sent a letter to members of the Finance Committee strongly opposing an extension of the ethanol import tariff, and instead calling for a transition to a market-based approach for the production and usage of ethanol from corn. Nevertheless, an extension of the $0.54/gallon tariff on imported ethanol from January 1, 2009 to January 1, 2011 was included in the final Finance Committee package.

Also of note, Senator Kyl (R-Ariz.) offered an amendment to the tax bill seeking to prohibit any renewable diesel produced in an oil refinery from being eligible for the $1/gallon renewable diesel tax incentive. NCBA opposed this amendment, and along with other agriculture groups, sent a letter to members of the Finance Committee urging the importance of the development of new renewable fuels produced from animal fats, byproducts and waste. In a win for cattle producers, this amendment was defeated in Committee by a margin of 11-9, and again on the floor of the Senate by a margin of 45-49.

A vote to limit debate on the energy tax incentive tax package, SA 1704, was held this morning, and it failed by a margin of 57-36.

In related news, the House Ways and Means Committee marked up an energy tax package in the House on Wednesday, June 20th. Prior to this markup, NCBA and other agriculture organizations sent a letter to the Committee supporting items aimed at developing renewable fuels produced from animal fats, byproducts and waste. In part, the letter stated, "we support extending provisions currently in section 45 of the tax code and ask you to strongly consider including this tax credit for bio-fuels systems that gives incentives to creating the infrastructure that can utilize animal nutrients." Portions of these priorities were reflected in the final Ways and Means bill, which was extended for four years, through December 31, 2012, the placed-in-service date for closed-loop and open-loop biomass facilities.

Farm Bill Update: The Full Committee on Agriculture Farm Bill markup scheduled for next week has been postponed to an unknown later date, most likely in mid-July following the 4th of July Congressional recess. Committee consideration of the bill was originally scheduled for Tues., June 26th - Thurs., June 28th in the Longworth House Office Building.

Agriculture Secretary Mike Johanns reacted, "I am disappointed in the Title I legislation put forth today by the House Subcommittee on General Farm Commodities and Risk Management. The bill fails to recognize the need for greater equity and predictability in farm policy, and does nothing to provide a more responsive safety net."

The subcommittee markups are a starting point before the full committee markup, expected later this summer. It was originally thought that the Farm Bill would be on the House floor before August recess, this timeline remains in flux. To date, there has been no official action in the Senate on the Farm Bill.

Cattlemen Here in Washington This Week: NCBA cattle producer-members from the Nebraska Cattlemen, Kansas Livestock Association, Texas Cattle Feeders Association, and the Colorado Cattlemen were in Washington D.C. this week, walking the halls of Congress. The cattle producers spoke with members of Congress about key issues, including the Farm Bill, energy, trade, superfund, and much more.

NCBA is coordinating these "Cattlemen and Congress" visit days in June and July. This is a busy time here in Washington and cattle producers are welcome to come once or multiple times throughout June and July. We appreciate any time and effort producers can devote to assisting us in getting our messages across. Highlighting the impact current policy changes will have in local districts is crucial.

NCBA Testifies before ITC on Korea FTA: Jay Truitt, NCBA Vice President of Government Affairs, testified before the International Trade Commission this week regarding our position on the U.S.-South Korea Free Trade Agreement. NCBA expects the full reopening of the Korean beef market as well as resolution to SPS and plant equivalency issues as part of the final agreement. Excerpts from our testimony this week:

"For many years, NCBA members have been leaders in the promotion of reliable, free and fair trade across the globe. The U.S. - South Korea FTA is a critical component of the U.S. beef industry’s formula for its continued and future success."

"NCBA is disappointed that the inequities of Korea’s lower tariffs for pork and poultry will remain in place throughout beef’s 15 year transition period to duty-free treatment, thus giving these competing protein sources a distinct advantage in the Korean marketplace. We are very pleased that we were able to negotiate the eventual duty-free treatment for U.S. beef exports to Korea and that this transition to duty-free trade is linear rather than back-loaded. We were not surprised with Korea’s request for a quantity-based safeguard."

"To support this FTA, we expect the full reopening of the Korean beef market as well as resolution to SPS and plant equivalency issues as part of the final agreement. The SPS and plant equivalency precedents now firmly established in recently negotiated FTAs are the only way to assure real and unfettered access for U.S. beef producers into the South Korean market. We urge our negotiators to press our trading partners to follow OIE guidelines in the negotiation of this and every subsequent agreement."

WTO Talks Flop Again: U.S. officials spoke from Potsdam, Germany today after negotiators from the European Union, India, Brazil, and the U.S. met for talks this week, aimed at concluding a successful World Trade Organization (WTO) Doha trade agreement by the end of 2007. "We regret the outcome of this week's talks," said Ambassador Susan Schwab today. "We had high hopes for Potsdam and the ability of the G4 to reach convergence. Secretary Johanns and I came with a full mandate to deal, and in spite of real progress in the last many months, including progress on all three agriculture pillars – in spite of that progress, there were more barriers put up to dialogue than the talks could sustain."

"NCBA is extremely disappointed in these developments," says NCBA Chief Economist Gregg Doud. "It was clear that the U.S. and the EU have narrowed their differences in agriculture significantly. But in Cancun the problem was India, and in Hong Kong it was clear the problem was going to be India. So today, it is no surprise that the problem is still India."

"We certainly hope this isn’t the death of the Doha round," says Doud. "U.S. cattle producers stand to gain enormously from the Doha round market access package if it ever gets finalized. Of particular interest to us are the improvements to market access in the EU and Japan. We were getting pretty warm, and this was a huge disappointment. Hopefully this will be a wake up call for all other members of WTO."

"Now, the United States is not giving up on the Doha Round," continued Schwab, "and we continue to be supportive not just of the Doha Round but obviously of the WTO. We would have been willing to stay here longer and negotiate. At some point, though, when you realize that not everyone in the room has the same intention, you have to give up."

"I must admit this afternoon I feel like the rug was pulled from underneath us," said Secretary Johanns. "I feel like the hard work that was being done was totally cast aside, and now we will do our very best to try to bring this to a close." The G4 may not ever be able to reach closure, but that does not mean the end of the round. U.S. officials will be headed to Geneva in July. U.S. officials will re-double efforts and continue work to reach agreement.

Trade Promotion Authority Expiring: NCBA is part of the trade promotion coalition called Trade for America, urging Congress to support renewal of the president’s trade promotion authority (TPA), slated to expire on June 30, 2007. Representing more than 420 companies and trade associations from virtually every sector of the U.S. economy, Trade for America this week launched a major educational effort regarding renewal of TPA. A letter was sent to Congress. "Thanks to the leadership of Chairman Rangel (D-NY) and Ranking Member McCrery (R-LA), a proactive agenda can move forward," said Trade for America Co-Chair Leslie Griffin, Vice President, International Governmental Affairs, New York Life Insurance Company. "In that spirit of bipartisanship, we encourage Congress to turn its attention to capturing new trade opportunities for the benefit of this country.  Renewal of the president's trade promotion authority is essential to U.S. efforts to lead on trade."

Private Property Rights Prevail! In last week’s CCC, we reported on an expected House vote regarding cattle ranchers’ property rights. On Friday afternoon June 15, the U. S. House of Representatives voted to pass this amendment 383 to 34 - thus standing up for ranchers’ property rights. This is a huge victory! Cattle producers’ emails and phone calls worked and let’s thank everyone for engaging in this issue and working hard for this victory.

To refresh your memory, during House consideration of the Fiscal Year 2008 Military Construction Appropriations bill, Representatives John Salazar (D-Col.) and Marilyn Musgrave (R-Col.) offered an amendment to prevent the U.S. Army from using eminent domain to take control of these 418,000 acres of productive ranchland in southeastern Colorado. This was part of a broader controversial plan by the U.S. Department of Defense to takeover of hundreds of thousands of acres of Colorado ranching lands to expand the Pinon Canyon Maneuver Site. Protecting private property rights is one of the founding principles of NCBA - dating back to 1898.

EIGHT New Death Tax Repeal Co-Sponsors: 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. Currently, a 10-year phase-out of the Death Tax to full repeal is scheduled to take affect in 2010, but the tax is then scheduled to be re-instated in 2011 (back to 2001 levels). H.R. 2380 makes the repeal permanent. This bill currently has 95 cosponsors, with SEVEN NEW CO-SPONSORS signing on since last week.

Rep. Neugebauer at NCBA Offices: NCBA hosted a meeting with Congressman Randy Neugebauer (R-TX) this week. Rep. Neugebauer represents the 19th District of Texas, which stretches across 27 counties and includes the cities of Abilene, Big Spring, and Lubbock. He is now in his third term in U.S. House of Representatives after first taking office on June 5, 2003. Rep. Neugebauer serves on the House Committees on Agriculture, Financial Services, and Science and Technology.

On the Financial Services Committee, he serves as the Deputy Ranking Republican. In addition, he has been tapped to serve on the House Republican Policy Committee, a group of lawmakers that focuses on important issues ranging from tax reform to national security. Through his seats on these committees, he is able to craft policy that supports the district’s diverse interests, including local agriculture, financial institutions and energy providers.

Prior to his service in Congress, Rep. Neugebauer ran his own small business, which focused on residential home building and commercial real estate development. In addition to running a successful business, he was also elected to the Lubbock City Council, serving as Mayor Pro Tempore from 1994 to 1996.

NCBA Preparing for Cattle Industry Summer Conference: Pre-registration is now open for the 2007 Cattle Industry Summer Conference, which will be held July 16-20 in Denver. The event is co-sponsored by the National Cattlemen’s Beef Association (NCBA), the Cattlemen’s Beef Board, American National CattleWomen, Inc. (ANCW), and Cattle-Fax.

NCBA’s popular Issue Forums will take place on Wednesday, July 18. This year, one Issue Forum will be devoted entirely to 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 to hear from animal health experts and Fort Dodge officials who discuss de-worming, horse health and reproduction management. Also, check out or special feature on a young female rancher from Arizona.

On next week’s Cattlemen to Cattlemen episode, beginning Tuesday, June 26th, taking care of your bulls, pre-breeding management tips and herd health issues are the primary focus, with some advice from the experts at Pfizer Animal Health.

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