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).

USDA BSE Surveillance: NCBA is awaiting an announcement from the U.S. Department of Agriculture regarding the results of follow-up testing on an animal that had initially yielded a "weak positive" result for presence of Bovine Spongiform Encephalopathy (BSE). USDA announced last Friday, June 10 that samples from the animal in question had been sent to Weybridge, England, for final conclusive testing.

NCBA continues to re-iterate to all cattle producers and the public that beef safety and animal health are not at issue. This animal never entered the human food or animal feed supply. Food safety is assured though removal of specified risk materials, and the U.S. cattle herd is protected through the feed ban.

What is of concern today, however, is the inconsistency of USDA’s testing and announcement protocol and the uncertainty that is created in the marketplace. NCBA maintains that USDA must develop a clear and concise protocol for testing and reporting test results under their enhanced BSE surveillance program which began June 1, 2004. Through June 22, USDA reports that 388,309 animals have been tested for BSE with no positive results reported.

CAFTA Means Business: President Bush today submitted the final version of the U.S.-Central America-Dominican Republic Free Trade Agreement to Congress, following committee reviews this week. The President is urging Congress to "take up this agreement at the earliest possible time." Now more than ever, folks across the country should get the message out: CAFTA breaks down borders, eliminates high tariffs, and levels the playing field for our U.S. exports! CAFTA is an excellent deal for U.S. cattle producers and we look forward to benefiting from its implementation in the coming years. The agreement opens lucrative new export markets for high-quality U.S. beef, at a time when many of our export markets are still closed due to BSE. Three Cheers for CAFTA!!!

NCBA Hears From President Bush: Thanks to consistent efforts in the fight for final passage of CAFTA, NCBA was invited to join other trade promotion leaders in a briefing today at the White House. The President has consistently pushed a pro-trade agenda that benefits cattle producers. The briefing today boasted a bi-partisan crowd, including former Cabinet members of both Republican and Democrat Presidents, and former staff members of Republican and Democrat Presidents.

"I'm confident that Congress will do the right thing," said President Bush. "The reason we're here is because we share an interest in promoting opportunity and prosperity here at home. All of us urge Congress to pass the agreement, because America has an interest in strengthening democracy and advancing prosperity in our hemisphere."

"Under existing rules, nearly 80 percent of imports from Central America and the Dominican Republic already enter the United States duty free. But U.S. exports into the region face heavy tariffs," said the President. "By passing CAFTA, the United States would open up a market of 44 million consumers for our farmers and small business people and entrepreneurs."

"CAFTA is more than a trade agreement, it is a signal of our nation's commitment to democracy and prosperity for the entire Western Hemisphere," said Bush. "We urge the United States Congress to pass CAFTA."

REPEAL of Death Tax: NCBA has learned that some members of Congress are discussing a compromise in lieu of permanent, full Death Tax Repeal. NCBA policy calls for full and permanent repeal of the Death Tax, and we will NOT support any compromise legislation. Why NO compromise? Check out the facts:

Carving out an exemption level creates an arbitrary line at which some family businesses get relief from the Death Tax and others do not. Many cattle producers are shocked—and generally disagree—with what the IRS considers the fair market value of their business, and this process takes place only after the Death Tax is triggered. With market values fluctuating, the very existence of a Death Tax forces small business owners to spend significant time and money on efforts to understand the tax law and plan for potential Death Taxes, instead of focusing on growing their businesses. Families who build their businesses past an exemption level in the future will continue to face estate taxes that range from 37 to 55 percent in 2011.

Finally, cattle producers believe it is fundamentally unfair to tax a family at the time of death, especially after already paying taxes 2-3 times during your lifetime. The fundamental unfairness of the tax is not addressed with a compromise.

In the 109th Congress, NCBA is supporting S. 420 (Kyle-AZ) which repeals the Death Tax permanently. The House bill, H.R. 8 (Hulshof-MO, Cramer-AL) passed April 13 by a vote of 272-162. Cattle producers are encouraged to contact Senators in their home states and make their voices heard– "rid our industry of this onerous tax once and for all!" After decades, it seems like a never-ending fight, but the year is finally here when we could see full, permanent repeal of the Death Tax. Now more than ever we need to join forces and let Washington know: the Death Tax MUST GO.

Agriculture: The Senate Appropriations Committee passed the FY06 Agriculture Appropriations bill. The bill is expected to go to the full Senate in July. The House bill passed June 9 by a vote of 408-18.

Interior: NCBA and PLC are watching movement of the Interior Appropriations bill for Fiscal Year 2006. The bill passed out of committee and could see a vote by the full Senate next week.

EQIP Legislation: A provision in the Senate’s FY06 Ag Appropriations bill will allow custom cattle feeders the opportunity to participate in the Environmental Quality Incentives Program (EQIP). Custom cattle operations play a key role in our industry, and struggle with important environmental issues. NCBA believes custom feeders should have equal opportunity to compete for EQIP funding. Developed in the 2002 Farm Bill, EQIP can serve as a valuable tool for producers seeking to improve their land, but USDA initially excluded cattle feeding operations from the program. This legislative language provides a much-needed fix to this valuable program for producers and feeders.

Mandatory Price Reporting: The Senate Agriculture Committee hosted a hearing June 22 to review the Livestock Mandatory Reporting Act. Members of the producer groups panel expressed their views on how mandatory price reporting is vital to price negotiations between producers and packers. The Agriculture Committee did not take action during this meeting, but did reveal that the committee would meet again after the July holiday break. Witnesses included representatives from the National Pork Producers Council, American Meat Institute and USDA’s Agricultural Marketing Service. Current NCBA policy supports reauthorizing Mandatory Price Reporting as is with no changes to the beef/cattle sector.

Raymond Confirmation Hearing: The Senate Ag Committee hosted the confirmation hearing June 22 for Dr. Richard Raymond to serve as USDA’s Under Secretary of Agriculture for Food Safety. A quorum was not present and the committee was not able to vote on the nomination, but it is expected Raymond’s confirmation will not see any opposition. Raymond is the Chief Medical Officer for the Nebraska Health and Human Services System, serving as the chief public health spokesperson for the state. He also serves as the Director of the Nebraska HHSS Department of Regulation and Licensure.

Nutrition Labeling: NCBA submitted comments June 20 to the Food and Drug Administration (FDA) on whether to amend certain provisions of the agency’s nutrition labeling regulations to give more prominence to calories on food labels. The agency’s Advance Notice of Proposed Rulemaking (ANPR) was published in the April 4 Federal Register (Docket No. 2004N–0463 "Food Labeling: Prominence of Calories.") NCBA’s comments reflect the industry’s support for information in the meat case and throughout all grocery aisles that tells a complete nutrition story and helps consumers make educated purchasing decisions.

NCBA urges FDA to provide consumers with more food-group specific nutrient information, as opposed to just listing calorie content. Cattle producers believe that if the agency makes changes to the Nutrition Facts Panel to includes more prominence to calories, they must also include food group-specific micronutrients on food packages. These changes will be consistent with recommendations from the 2005 Dietary Guidelines for Americans and MyPyramid recommendations-- choose the most nutrient-dense foods within and among the food groups and get the most nutrition from calories.

USDA Public Meeting on CRP: NCBA will participate in USDA’s public meeting on their Conservation Reserve Program (CRP) on Friday, June 24, 2005. USDA is asking for feedback on how best to re-enroll and extend certain CRP contracts that are expiring soon. Of the 34.8 million acres now enrolled in CRP, some 28 million acres - about 80 percent - are scheduled to come out of the program in fiscal years 2007 through 2010. Through CRP, landowners can receive annual rental payments and cost- share assistance to establish long-term, resource conserving covers on eligible farmland.

Farm Bill Listening Session July 7!: USDA has announced the first of its Farm Bill Listening Sessions to be held in Nashville, Tenn. on July 7 from 6:00 to 10:00 p.m. CDT at RFD-TV Northstar Studios. The public is invited to attend and participate in the forum, which will be broadcast live on RFD-TV. In addition to accommodating approximately 300 in the audience, the forum also will accept calls from across the nation.

In preparation for debate on the new Farm Bill, USDA wants to ask farmers and ranchers how farm policy is affecting them and how USDA might make that policy better. Johanns says "I want to ask America's farmers and ranchers how our farm policy is working and how we can make it better. I believe very strongly that they deserve a voice in this process."

Cattlemen are asked to provide comments on six specific questions based on these policy considerations:

-How should farm policy be designed to maximize U.S. competitiveness and our country's ability to effectively compete in global markets?

-How should farm policy address any unintended consequences and ensure that such consequences do not discourage new farmers and the next generation of farmers from entering production agriculture?

-How should farm policy be designed to effectively and fairly distribute assistance to producers?

-How can farm policy best achieve conservation and environmental goals?

-How can Federal rural and farm programs provide effective assistance in rural areas?

-How should agricultural product development, marketing and research-related issues be addressed in the next farm bill?

Producer Comments on Animal ID Due July 6!: Producers are reminded to submit their comments on USDA’s NAIS Draft Strategic Plan and the NAIS Draft Program Standards. Of particular importance is that producers address the questions posed by USDA regarding a private-sector animal ID system. Producers may submit comments by July 6, 2005, by either of the following methods:

Postal Mail/Commercial Delivery: Please send four copies of your comment (an original and three copies) to
Docket No. 05-015-1
Regulatory Analysis and Development
PPD, APHIS, Station 3C71
4700 River Road, Unit 118
Riverdale, MD 20737-1238.
Please state that your comment refers to Docket No. 05-015-1.

NCBA-PAC Golf Tournament Registration Deadline is July 5!: Attendees at NCBA’s Summer Conference in Denver have until JULY 5 to register for the NCBA-PAC golf tournament. The NCBA-PAC Golf Tournament will be held Tuesday, July 26 at Arrowhead Golf Club in Littleton, CO. The ticket price is $150.00 and includes transportation, green fees, cart rental, range balls, on course refreshments and a chuck wagon buffet. All proceeds will benefit NCBA-PAC/PEF. NCBA-PAC makes the voices of cattle producers heard on Capitol Hill by supporting members of Congress who speak for and protect our policy initiatives.

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