2007 CCC Archive
Cattlemen's Capitol Concerns
June 28, 2007
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.
Cattlemen State Their Beef with COOL Law: Members of Congress and the media are once again focused on COOL as cattle producers’ concerns grow about the current mandatory law slated for implementation next September. NCBA is urging Congress to amend the current law so it works better for food producers and consumers. Cattle producers believe the current mandatory country-of-origin labeling law needs to be fixed because:
- Paperwork and documentation requirements in the current law are unclear. The current law could allow packers and retailers to demand impossibly complicated documentation, and it is believed that self-certification will not satisfy the requirements.
- There is no exemption for cattle born prior to the effective date of the law. Calves born this year will need to meet the new criteria when those calves are marketed in the fall of 2008. How can producers meet the law’s requirements for calves NOW when USDA has yet to write a final rule?
- If the government insists on making this marketing program mandatory, producers must have liability protection. Producers who are unable to comply, or are unsure of HOW to comply because of complicated government-written rules, will be hit with penalties and fines.
- The current law exempts too many products. Under the current country-of-origin law, nearly 75 percent of meat products will go unlabeled because processed products, products used in food service (including restaurants) and poultry will remain unlabeled.
- The costs to producers could put many small operators out of business. USDA’s cost benefit analysis says the mandatory program passed as part of the 2002 Farm Bill could cost up to $3.9 billion in the first year alone.
Cattle Producers Need Congress to Fix COOL: America’s cattlemen are looking to work with Congress on an alternative approach to remedy the mandatory country-of-origin labeling law. Labeling food products, especially U.S. beef, helps to build our brands. America’s cattlemen have long supported a voluntary marketing program to promote American beef, but the current mandatory labeling law forces additional burdens on livestock producers with no tangible benefits for producers or consumers.
“This law is imminent,” says NCBA’s Executive Director of Legislative Affairs Colin Woodall. “The mandatory law is on the books and set to be implemented next year. But there’s still time for Congress to fix some of the more damaging aspects of the law – and they’ll only do so if they hear from enough of their constituents in the countryside.”
NCBA is directing cattle-producer members to the website, www.beefusa.org, for more information on the soon-to-be-implemented MANDATORY country-of-origin labeling law. Here, individuals can also contact their members of Congress and urge them to fix the problems with the program before it is forced on cattle producers.
Texas Cattlemen in Washington This Week: NCBA cattle producer-members from the Texas and Southwestern Cattle Raisers Association are in town this week walking the halls of Congress. They are talking with members of Congress about key cattle industry issues, such as Farm Bill development, country-of-origin labeling, energy policy, trade agreements, immigration and more.
NCBA is coordinating “Cattlemen and Congress” visit days in June and July. This is a busy time here in Washington, and cattle producers are encouraged to come once or multiple times throughout June and July. We appreciate any time and effort producers can devote to assisting us in communicating NCBA member-driven policy with our elected officials. Highlighting the impact that current policy changes will have in local districts is crucial.
On Energy, NCBA Urges “No New Mandates”: Late last week, the U.S. Senate voted 65-27 in favor of a comprehensive energy package, H.R. 6, the CLEAN Energy Act of 2007. This legislation mandates 15 billion gallons of renewable fuels from feedgrain products by 2015 – an increase that NCBA cannot support.
“Sky-high mandates for feedgrain-based ethanol are not the solution,” says Jay Truitt, NCBA vice president of government affairs. “We already have strong mandates, major incentives for feedgrain-based ethanol production, and a corn ethanol industry that is growing at an astounding pace.” Use of ethanol fuels has tripled in the past five years. NCBA’s message is simple: let the market decide.
Truitt applauded Senator Kay Bailey Hutchison (R-Texas) for her leadership in successfully including in the legislation a study that will assess the impact these high mandates could have on the producers of feedgrains, food, livestock and energy.
NCBA will continue to engage on this issue as the House of Representatives embarks on energy policy. NCBA opposes any increase above 7.5 billion gallons for feedgrain-based ethanol mandates. NCBA is urging Congress to take a market-based approach for ethanol production and greater use of ethanol derived from products other than feedgrains.
Doomsday for TPA?: NCBA is urging Congress to support renewal of the President’s trade promotion authority (TPA), slated to expire THIS WEEK, on June 30, 2007. Right now, the Bush administration is racing to finalize pending trade deals before the deadline midnight this Saturday.
TPA allows the president to negotiate trade agreements with other countries and requires Congress to approve or disapprove those deals without amendments. Foreign governments are reluctant to negotiate with the United States if the administration doesn't have such authority.
“This is a very important factor in making trade agreements work. TPA gives our trading partners confidence that the agreements they negotiate with the United States will not be revised or amended by Congress,” says NCBA Chief Economist Gregg Doud. “We are extremely disappointed that Congress has not yet taken this up, and that it now could expire this week. Cattle producers worked hard for its passage. Expanding our market access and lowering tariffs through trade agreements is the best way for cattlemen to prosper, and we need TPA to facilitate passage of those agreements.”
In a letter to House Ways and Means Committee Chairman Charles Rangel (D-N.Y.), U.S. Trade Representative Susan Schwab wrote, “It is important that the United States not sit on the sidelines as other countries lock in new preferential trading arrangements with our competitors.” Doud is quick to point out an obvious example: Australia is currently negotiating a free trade agreement with Japan.
NCBA is part of the trade promotion coalition called Trade for America, representing more than 420 companies and trade associations from virtually every sector of the U.S. economy. For more information and the press release, go to the coalition website at www.TradeforAmerica.org.
Senate Ends Immigration Discussions: The Senate voted down legislation today aimed at addressing many of our nation’s immigration problems. NCBA had been monitoring the legislation in hopes that a final package would strengthen border security and create a temporary worker program in accordance with NCBA policy. This is the second time the legislation has failed in the 110th Congress, but today’s defeat will likely end discussion of immigration reform until 2008.
Congressional Schedule: Congress will recess at the end of this week for the Fourth of July holiday. They are scheduled to reconvene Monday, July 9. Farm Bill markups originally scheduled for this week have been postponed until after the upcoming recess and will remain a top priority issue for NCBA when Congress returns.
Korea Trade Update: South Korean officials say they will conduct on-site inspections of U.S. beef facilities beginning this weekend. Reportedly, an eight-member Korean delegation will visit cattle ranches, packing plants and feed facilities. Korean officials will look at the U.S. ruminant-to-ruminant feed ban compliance. The inspection tour is expected to run June 30 through July 8.
In related news, President Bush will sign the U.S. - South Korea FTA this Saturday, June 30, the last day to sign the agreement before the expiration of Trade Promotion Authority. NCBA will attend a ceremony to mark the signing. U.S. and South Korean officials held talks this week regarding U.S. beef trade issues and on potential revisions in other areas of the free trade agreement. South Korean Trade Minister Kim Hyun-chong visited Washington, D.C. for the talks. Last week, South Korea and the U.S. held two days of meetings in Seoul.
In other related news, Agriculture Secretary Mike Johanns announced June 25 that the government of South Korea lifted the suspension of six U.S. meat plants. "We are pleased that Korea will allow the resumption of shipments from these plants," said Johanns. "USDA has taken action to ensure compliance with Korean import requirements here in the United States, and Korea recognized these efforts. Despite some start-up problems, beef exports to Korea are rapidly increasing." Today’s USDA export sales report indicated that, as of June 21, 32 million pounds of U.S. beef has been sold and 3.5 million pounds shipped since beef trade resumed in April.
Japan Trade: A U.S. government delegation is in Japan this week for technical discussions regarding beef market access, the next step in the process to more fully open the Japanese market to U.S. beef and beef products. Since the World Organization for Animal Health (OIE) designated the United States as being at “controlled risk” for BSE , Secretary Johanns has strongly urged that global beef trade should be governed by OIE guidelines rather than the rules of individual nations. Right now, Japan only allows imports of U.S. beef from cattle 20 months old or younger. NCBA will continue to insist that Japan resume imports of all U.S. beef in line with international standards.
Panama Trade Agreement Signed: NCBA attended a ceremony today to mark the signing of the United States – Panama Trade Promotion Agreement. Under this agreement with Panama, more than half of all current U.S. farm exports to Panama will become duty-free immediately, including high quality beef. In addition, Panama is revising its sanitary and phytosanitary (SPS) regulations, recognizing the equivalence of the U.S. food safety inspection system for meat, poultry and processed food products. Panama will also provide market access for U.S. beef and poultry products consistent with international standards and recognize the U.S. beef grading system. In addition, this agreement streamlines import documentation requirements for U.S. processed foods. NCBA looks forward to working with Congress on the passage of this important trade agreement. For more information, visit www.ustr.gov.
Colombia Trade Agreement Progress: Today, the United States and Colombia reached agreement on amendments to the U.S.-Colombia Trade Promotion Agreement. These amendments reflect the bipartisan trade agreement between the Administration and Congressional leadership that was reached on May 10, 2007, and will be legally binding and enforceable. NCBA was in attendance in November 2006 when the U.S. and Colombia signed the agreement. Upon implementation of this agreement, U.S. farm exports to Colombia, such as high quality beef, will receive immediate duty-free treatment.
“This extremely well negotiated agreement reduces – and eventually eliminates – all tariffs for our beef, giving U.S. producers the ability to compete aggressively against Argentinean and Brazilian beef in these markets,” says NCBA Chief Economist Gregg Doud. The agreement now must be approved by Congress. For more information, visit www.ustr.gov.
Supreme Court Issues Decision in Wilkie v. Robbins: The Supreme Court issued its decision in the case of Wilkie v. Robbins on June 25. NCBA, the Public Lands Council (PLC), the Wyoming Public Land Coalition, the Oregon Cattlemen’s Association and the Nevada Cattlemen’s Association joined together in filing an amicus brief in the suit.
The central issue for ranchers within the case is the right of private property owners to deny federal access to their property and the legal options available to property owners for holding federal officials accountable for inappropriate actions. In this case, a Wyoming rancher alleged the government harassed him and extorted his private property and sought relief under the Racketeer Influenced and Corrupt Organizations Act (RICO) and under the Constitution for retaliating for excluding the government from his property.
Unfortunately, the court rejected all of Robbins' claims and ruled that recognizing Robbins claim would invite claims in every sphere of legitimate government action affecting property interests. The Court also rejected the extortion and RICO claim.
“Obviously we are disappointed in the outcome,” says Jeff Eisenberg, NCBA’s director of federal lands and executive director of the PLC. “But it was an important case for us to be involved in. Protecting private property rights is one of the founding principles of NCBA, and we want our ranchers to know we’ll back them up in disputes like this.”
Walk-A-Mile in My Boots Exchange: The Prosser and Metzger families of Coconino County, Arizona hosted Natural Resources Conservation Service (NRCS) Soil Conservationist Paul Percival of Price, Utah in a Walk-A-Mile in My Boots (WAMB) exchange June 18 – 23. WAMB is a joint cooperation between NCBA, USDA’s NRCS, National Association of Conservation Districts and U.S. Fish and Wildlife Service.
Located in north central Arizona, the Diablo Trust Ranches cooperative operation served as home base for the work exchange. Mr. Percival was able to participate in many of the day to day activities of Diablo Trust Ranches and utilize his expertise to assist the operations with range ecology and plant health. This six day exchange provided insight into the workings of public lands ranching, conservation practices, wildlife habitat restoration, alternative energy development and erosion prevention/soil preservation.
For additional information about the Walk-A-Mile in My Boots program or to plan an exchange, contact NCBA’s Washington, D.C. office at 202-347-0228, or email wamb@beef.org.
Countdown to Cattle Industry Summer Conference: NCBA continues preparations for meetings and events at the 2007 Cattle Industry Summer Conference, July 16-20 in Denver. The event is co-sponsored by NCBA, the Cattlemen’s Beef Board, American National CattleWomen, Inc. (ANCW), and Cattle-Fax. Advance registration for the Cattle Industry Summer Conference is now closed but attendees can still register on-site in Denver at the Adam's Mark Hotel.
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.
The week’s events draw to a close on Friday, July 20 with the NCBA Board of Directors meeting. Most Summer Conference meetings and events will be held at the Adam’s Mark Hotel in downtown Denver. More information including a schedule of events is posted on NCBA’s web site at http://www.beefusa.org/convscheduleofevents43.aspx.
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 for stories on taking care of your bulls, pre-breeding management tips and herd health issues and some advice from the experts at Pfizer Animal Health.
On next week’s Cattlemen to Cattlemen, beginning Tuesday, July 3rd, we will have a special feature show on John Wayne, the legendary award-winning actor, often called the on-screen epitome of the American cowboy.
NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. The show airs Tuesdays at 8:30 p.m. and is rebroadcast Wednesdays at 4:30 a.m. and 12:30 p.m., and Saturdays at 10 a.m. All times are Eastern. Make sure YOU tune into NCBA’s Cattlemen to Cattlemen on channel RFD-TV. For more information or to check out past episodes, visit www.cattlementocattlemen.org.
Media Contact: Tanya A. Camarra or Karen Batra at 202-347-0228, tacamarra@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.