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).
Senate Pressures Japan to Lift Beef Ban: Cattlemen are supporting legislation (S. 3548) championed by Senators Kent Conrad (D-N.D.) and Pat Roberts (R-Kan.) that would require the U.S. Treasury to impose tariffs on Japanese exports if Japan does not re-open its market to U.S. beef by August 31, 2006. The legislation was introduced June 21 and currently has 16 Senate co-sponsors.
In separate action, the Senate Appropriations Committee passed a "Sense of the Senate Resolution" calling for sanctions on Japanese products if Japan has not resumed imports of U.S. beef by the enactment of the agriculture appropriations bill. With the support of Senators Conrad Burns (R-Mont.), Sam Brownback (R-Kan.), Byron Dorgan (D-N.D.), Larry Craig (R-Idaho), Tim Johnson (D-S.D.), Christopher Bond (R-Mo.) and Pete Domenici (R-N.M.), the measure passed the Committee unanimously by voice vote.
NCBA’s Executive Committee voted unanimously June 14 to support such Congressional action if Japan fails to resume beef trade expeditiously. "Although sanctions are not the preferred method to resolve these issues, some within the Japanese government favor protectionist standards over science-based standards for international trade," says NCBA President and Missouri cattleman Mike John. "Our preference is free, fair and reliable trade based on sound science, but at this point they have left us with no other viable option."
Japan Commits to Resuming Trade, but No Time Frame Set: The Government of Japan announced it will resume trade of certain U.S. beef products under an agreement reached during a video conference June 20-21. Although media reports are saying U.S. beef could be moving to Japan as early as late July, the official announcement does not mention a time frame.
Japanese audit teams are scheduled to arrive in the United States this weekend for visits to processing plants approved for exporting to Japan. These visits are scheduled to conclude July 21. Upon completion of these audits, Japanese officials have verbally agreed to expeditiously resume beef trade, but it will take a lot more than verbal agreements to satisfy U.S. cattlemen.
"After years of empty promises and continued delays, U.S. beef producers remain skeptical," says NCBA CEO Terry Stokes. "As we proceed with implementing steps toward trade resumption, we will continue to insist on science-based standards." Japanese Prime Minister Junichiro Koizumi is scheduled to visit the United States for meetings with President Bush next week.
Ag Appropriations: The Senate Appropriations Committee passed the Fiscal Year 2007 Department of Agriculture Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill June 22. This package contains language regarding beef trade with Japan (see Senate Pressures Japan to Lift Beef Ban above) and disaster assistance for agriculture operations (see Drought and Disaster Relief below). The package now moves to the full Senate for approval.
Drought and Disaster Relief: NCBA is working to get much-needed assistance for ranchers in drought-afflicted areas of the country as well as for ranchers suffering from other natural disasters such as hurricanes, floods and wildfires. In today’s mark-up of the Agriculture Appropriations Bill, the Senate Appropriations Committee approved an amendment offered by Senators Byron Dorgan (D-N.D.) and Conrad Burns (R-Mont.) which earmarks $3.9 billion for agriculture disaster assistance. The bill provides for crop losses, the Livestock Compensation Program, funds to offset rising energy costs, and additional funding for the Emergency Conservation Program and the Emergency Watershed Protection Program. The package now moves to the full Senate for approval.
Death Tax Legislation: Following the Senate’s June 8th decision to forego a vote on permanent repeal of the Death Tax, the House of Representatives passed compromise language today on a 269-156 vote via reform bill H.R. 5638. The legislation, introduced by House Ways and Means Committee Chairman Bill Thomas (R-Cal.), is designed to make changes in the structure of the Death Tax but without full or permanent repeal. Among other reforms, H.R.5638 would:
- increase the exemption amount to $5 million per person and $10 million for couples (indexed for inflation) effective January 1, 2010,
- reduce the rate of tax on estates up to $25 million to the capital gains tax rate (currently 15 percent, set to increase to 20 percent in 2011 unless extended), and
- reduce the rate of tax on estates of $25 million or more to twice the capital gains
rate (currently 30 percent, set to increase to 40 percent in 2011 unless extended).
CAFO Rule: The Environmental Protection Agency (EPA) released information June 22 on its proposed rule for regulating confined animal feeding operations (CAFOs) under the Clean Water Act. The final CAFO Rule was published in February 2003, but was challenged by a number of agriculture and environmental organizations in the Waterkeeper Alliance, Inc. v. EPA case which was heard in the 2nd Circuit on December 13, 2004. As a result of the court’s decision, modifications to the rule are needed, and EPA must go through another rulemaking process. NCBA is reviewing the proposed rule and developing comments. Information on proposed rule is posted at: http://www.epa.gov/npdes/afo/revisedrule.
Superfund: Cattlemen continue to urge support for H.R. 4341 in the House of Representatives. This legislation will clarify that manure is not considered a hazardous substance, pollutant or contaminant under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA/Superfund regulations).
Congress established the Superfund program in 1974 to locate, investigate, and clean up toxic waste sites nationwide. The program’s objective was to protect human health and the environment from the hazards of chemical waste. But opponents of animal agriculture want to apply Superfund laws to livestock operations because of manure emissions.
H.R. 4341 currently has 170 co-sponsors with 6 new cosponsors signed since last week. They are: Reps. Geoff Davis (R-Ken.), John Duncan (R-Tenn.), John Linder (R-Ga.), Wally Herger (R-Calif.), Jerry Weller (R-Ill.) and Jim Gerlach (R-Penn.). Visit http://capwiz.com/beefusa to see a full list of co-sponsors. If your Representative is not yet listed, send a message to them asking them to sign on!
FDA Honors NCBA’s Dr. Gary Weber for BSE Work: The Food and Drug Administration Commissioner presented NCBA’s Executive Director of Regulatory Affairs Dr. Gary Weber with a "Special Citation" for his work in the animal health sector, especially for helping to prevent the spread of BSE. The award, presented at a special FDA Honor Awards Ceremony on June 16, reads: "For recognizing and gaining the agriculture industry’s support for regulations banning the feeding of prohibited materials to cattle and other ruminants, preventing the spread of BSE."
NCBA Needs Producer Feedback on Farm Bill Issues: The 2002 Farm Bill will expire September 30, 2007, but Congress has already begun work on developing the 2007 Farm Bill. To prepare for the debate, NCBA is asking members for feedback on farm bill programs and policy priorities. Whether you would like to see an existing program improved or perhaps feel that another program should be eliminated, we need to hear from you. Visit our website at www.beefusa.org to provide us with your thoughts and feedback on what works, what doesn’t, what you need or what you don’t. Your comments will help us plan for our farm bill discussions at the 2006 Cattle Industry Summer Conference in Reno, July 10-13, where NCBA members will shape NCBA’s policy direction.
FARM BILL FIELD HEARINGS:
Senate Ag Committee Farm Bill Field Hearing – Albany, Ga.: The Senate Agriculture Committee will host the first of six field hearings on Farm Bill development this week, June 23 in Albany, Georgia. Dr. Jim Strickland, president of the Georgia Cattlemen’s Association is scheduled to testify on behalf of NCBA and the Georgia Cattlemen.
Committee Chairman Saxby Chambliss (R-Ga.) says he hopes producers will participate and share their thoughts on farm bill programs. "These hearings are a valuable opportunity for direct dialogue between farmers and the agriculture committee and for folks in the surrounding region to share how they would like to see farm policy shaped as we write the next Farm Bill," Chambliss says.
The Committee’s schedule of field hearings includes the following:
- Friday, June 23, 9:00am in Albany, Ga.
- Monday, July 17, 9:00am in Cape Girardeau, Mo.
- Friday, July 21, 1:00pm in Harrisburg, Penn.
- Monday, July 24, 9:00am in Ankeny, Iowa
Hearings are also planned in two additional western states (specific scheduling details are still TBD). For more information, visit: http://agriculture.senate.gov
House Ag Committee to Host Farm Bill Field Hearing June 26th: The House Agriculture Committee’s next public field hearing on 2007 Farm Bill development will be Monday, June 26 in Canandaigua, N.Y. Producers are encouraged to attend and participate in the discussion. For more information visit: http://agriculture.house.gov/hearings/schedule.html
Korean Trade: NCBA hosted a team of South Korean visitors in its Washington office June 21 to discuss the U.S. livestock sector as the two countries continue negotiations on a free trade agreement (FTA). The delegation which included experts from Korea’s Agriculture Ministry, the Korea Rural Economic Institute, the agricultural cooperative and related livestock organizations, left Korea June 17 for eight days of meetings and on-site inspections of U.S. livestock operations.
EU Trade: According to media reports, the European Union (EU) says it is making progress on its long-standing trade disputes with the United States regarding U.S. exports of beef. For more than 20 years, the EU has banned imports of beef produced from hormone-treated cattle, a move that was ruled illegal by the WTO. Subsequently, the United States has applied about $117 million of punitive duties a year on European imports. Media reports quote EU Trade Commissioner Peter Mandelson saying beef issues were close to being resolved.
President Bush is in Vienna, Austria this week for the U.S.-EU Summit on June 21 where one of the top issues discussed was how to reduce trade barriers. "The discussions between the two governments appear to be getting more serious – and they need to be," says NCBA Chief Economist Gregg Doud. "In the EU, beef consumption is rapidly outpacing its domestic production. This means the EU could soon become the second largest net beef importer in the world."
Along with the EU’s ban on hormone-treated beef, the EU is being criticized internally for its "steady erosion of the EU policy which has always been committed to ensuring food security for EU citizens." This came from a member of the European Parliament who recently referred to the EU’s policy of accepting imports of fresh beef from Brazil, where "inadequate foot and mouth disease controls" have prompted the United States, Japan, Australia, South Korea and New Zealand to cut off imports of fresh beef from Brazil.
U.S. BSE Surveillance: USDA’s Enhanced BSE Surveillance Program continues to test targeted animals identified as most likely to have the disease. Since June 1, 2004, the program has tested 740,169 cattle and has found only two confirmed cases, evidence that our safeguards are working and the prevalence of BSE in the United States 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.
Media Contact:
Tanya Augustson or Karen Batra at 202-347-0228; taugustson@beef.org or kbatra@beef.org
This publication is funded by cattle producers and other industry supporters through their voluntary membership contributions to NCBA. To join the tens of thousands of cattle producers from across the U.S. in working to preserve our legacy, contact NCBA Member Services at 1-866-BEEF-USA or Membership@beef.org.