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 Deals Blow to Ranch Families; Refuses Debate on Death Tax Repeal:  The Senate failed to get the necessary 60 votes needed to invoke cloture (on the motion to proceed to consideration of H.R. 8, the Death Tax Repeal Permanency Act of 2005) putting an end to discussion of permanent repeal of the Death Tax in this session of Congress.  The Senate voted 57-41 on June 8, with many farm state Senators turning a blind eye to the dreams of their constituents to pass on their family farms and ranches to the next generation.

“Today’s vote will go down in history as the day forty-one Senators slammed the door in the faces of America’s next generation of farmers and ranchers,” said NCBA President and Missouri cattleman Mike John.  "Despite the House of Representatives passing bi-partisan repeal bills time and time again that would terminate this devastating tax, the Senate has decided the issue doesn't even warrant debate."

NCBA has worked for decades to repeal the Death Tax which hits ranching families with taxes of up to 55 percent of total assets when the business owner dies.  Many ranching families are forced to sell off land, cattle and equipment – and in some cases – sell the entire operation to pay the taxes.  Multi-generational operations often have to pay the tax two and three times because the operation is taxed each time a head of the family passes away. NCBA has previously worked to repeal the Death Tax through a phase-in of exemptions with total repeal by 2010. But Senate rules provide that this full repeal is only effective for one year and the Death Tax returns to 2001 levels, unless made permanent, in the year 2011:  $1 million exemption, 55 percent tax rate.

“Our opponents argue that repealing the Death Tax gives a tax break to only the wealthiest Americans, but our nation’s farmers and ranchers aren’t our nation’s wealthiest,” says Jay Truitt, NCBA’s vice president of government affairs.  “They work with the sweat of their brow to provide our nation’s safe and affordable food supply, and all they want is to pass on their family businesses to their children.  Today’s vote indicates the Senate would rather our farmers and ranchers sell out to developers.  Do we want to build condos on our land and buy our food from other countries?…Is that good for America?  After hearing from so many cattlemen across the country, the Senate won’t even agree that the issue deserves debate and a vote on the floor.”

Click here to see how your Senator voted, or contact Jenni Beck in NCBA’s Washington office at (202) 347-0228 or jbeck@beef.org.

The Death Tax Hurts Real Working People:  Jim Estill, a rancher from Nevada and California tells his Death Tax story (for more personal real-life stories, visit http://www.beefusa.org/goveVictimsSpeakOut.aspx): “My dad died in 1997. He was a cattle rancher all of his life and had left 500 acres of grazing land.  My dad paid taxes on this land, and his father before him paid taxes on it too.  The Death Tax on the place when he died was around $230,000.  I have deferred payments of about $15,000 per year ($30.00 per acre) for 15 years. If I lease it for grazing I can get maybe $20.00 per acre. If I run my own cattle, I might make $25.00 per acre if it rains and the market holds.  Otherwise, I may lose some.  But after that, I still have to pay the Death Tax, and my heirs will be forced to pay it again someday. Only in an exceptional year do I come close to breaking even. This place was bought and paid for years ago with the idea that it would produce income. Now, after 70 years in the family, it has become an economic liability. When you add to that the emotions associated with ones heritage, the death of a parent, and a threat to my way of life, it’s almost unbearable. How did this happen?”

Young Cattlemen in Washington, D.C.:  NCBA’s 27th annual Young Cattlemen’s Conference (YCC) national tour is completing its 10-day trip in Washington, D.C. this week. The YCC program is designed to develop leadership qualities in young beef industry leaders who were nominated by their respective affiliate (state and breed) associations. Forty-eight cattle industry leaders are participating in meetings and events with Congressional members, staff and Administration officials as part of the YCC educational tour in Washington.

On June 7, the group heard from Rep. Ted Poe (R-Texas) who discussed the need to repeal the Death Tax and pass immigration legislation.  Immediately following, the YCC group hosted more than 300 Congressional leaders and Capitol Hill staffers at the annual YCC Picnic on Capitol Hill and spent time with their members of Congress in one-on-one meetings.

The morning of June 8, the group visited with agency officials including USDA Deputy Secretary of Agriculture Chuck Conner, USDA Chief of Staff Dale Moore, Deputy Under Secretary for Farm and Foreign Agricultural Services Floyd Gaibler, and James Link, Administrator for the Grain Inspectors, Packers and Stockyards Administration.  In the afternoon, the group attended a luncheon at the Canadian Embassy and then attended meetings with White House personnel. 

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 161 co-sponsors with two new co-sponsors added since last week!  They are: Reps. Donald Manzullo (R-Ill.) and Jim Ryun (R-Kan.).  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!

Attorneys General Plan Letter to Congress Opposing H.R. 4341:  In related news, NCBA has learned that the Oklahoma State Attorney General is preparing to submit a letter opposing H.R. 4341 to Members of Congress, and he is soliciting the support for his letter from the Attorneys General of the rest of the states.  This issue is a hot topic in Oklahoma because of a suit filed by the state against poultry operations claiming Superfund liability and arguing that manure is a hazardous substance. 

NCBA is urging cattle producers to contact their Attorneys General personally, and ask that he or she NOT sign onto Attorney General Drew Edmondson's letter opposing H.R. 4341.  For more information, contact Jenni Beck in NCBA’s Washington office at (202) 437-0228 or jbeck@beef.org.

South Korean Free Trade Agreement:  The first U.S.-Korea Free Trade Agreement (FTA) negotiation meetings are taking place this week in Washington, D.C.  NCBA supports these negotiations with South Korea as this market holds tremendous potential for U.S. cattlemen.  Historically, South Korea was the third largest market for U.S. beef and beef variety meat exports at $815 million in 2003.  But NCBA points to three key areas of concern that must be addressed with these negotiations:

• Full normalization of beef trade with South Korea
• Significant initial reductions and the eventual full elimination of all tariffs on U.S. beef products
• Resolution of important sanitary and phytosanitary (SPS) issues

The Korean Free Trade Agreement Business Coalition's website is a good source of general information on these negotiations:  http://www.uskoreafta.org/portal/koreafta/default

PRODUCERS ENCOURAGED TO ENGAGE IN FARM BILL DISCUSSIONS: 

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 its members for feedback on what their needs for farm bill programs and policy might be.  As a member-driven organization, your NCBA leadership and staff need to hear from you. 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, 2006, where NCBA members will shape NCBA’s policy direction.

Farm Bill Field Hearing – Yakima, WA:  The House Ag Committee will host a public field hearing this week on 2007 Farm Bill development:
Saturday, June 10, 2006 - 10:00 a.m., PDT
Yakima Convention Center, South Ballroom, Room 200
10 North 8th Street, Yakima, WA

NCBA in Mexico: Cattle-producer members Dana Hauck, Chuck Massengill, NCBA President and Missouri cattleman Mike John and NCBA Chief Economist Gregg Doud were in Vera Cruz, Mexico this week for the 70th annual Confederación Nacional Ganaderas (CNG) Convention. The CNG is the NCBA counterpart in Mexico that represents livestock producers. With Mexico's presidential election a month away, this is a very important meeting regarding political industry issues. In addition, Mexico is an extremely valuable market for U.S. cattlemen. If we continue at the current pace in U.S. exports into Mexico could exceed $1 billion in value this year. Also this week, Gregg Doud will also be speaking at an international livestock symposium hosted by Mexican officials.

Agricultural Air Quality Workshop: NCBA’s Director of Environmental Issues Tamara Thies is participating in the “Workshop on Agricultural Air Quality: State of the Science” June 5-8 in Potomac, Maryland. This workshop was organized after a National Research Council Report recommended further research on agricultural air quality problems.  USDA’s Agricultural Air Quality Task Force has directed the National Research Initiative Competitive Grants Program to develop a research agenda.

Sponsors say this workshop could play a significant role in helping shape the future of the agricultural practices and agricultural air quality analysis framework for the United States. Participants are expected to discuss 1) assessing the state of science regarding agricultural air quality, 2) building on our knowledge of research, policy, economic, and societal well-being associated with agricultural air quality, 3) fostering exchange of ideas and partnerships, 4) recommending changes and improvements in measurement technologies and monitoring methodologies, modeling, and best management and production practices to mitigate air pollutant emissions from agricultural sources.  For more information, visit www.esa.org/AirWorkshop.

Wyoming Stockgrowers Association Meeting:  NCBA Director of Federal Lands Jeff Eisenberg is in Casper, Wyoming this week for the Wyoming Cattle Industry’s Convention and Trade Show, June 7-10.  Jeff will moderate a panel discussion June 9 on land management issues.  Also on June 9, NCBA President and Missouri cattleman Mike John will address with group.

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 730,297 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