Cattlemen's Capitol Concerns

March 10, 2005

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).

NCBA Petitions USDA for Provisionally Free BSE Status:  NCBA is urging the USDA to seek the “Provisionally Free” BSE designation for the United States from the World Organization for Animal Health (OIE). NCBA sent a letter to USDA Secretary Mike Johanns this week detailing why one imported cow with BSE should not have affected our BSE status or our international trade status. Our expanded BSE surveillance program is approaching the target of 268,500, so far testing 263,115 to date with no positive cases reported (see “USDA Surveillance for BSE” below.) This illustrates even more profoundly that the U.S. is provisionally free from BSE. 

The classification of “Provisionally Free” is appropriate because the U.S. meets or exceeds all of the criteria established by the OIE for such a designation.  We‘ve been working to analyze the risks of BSE for two decades, and we’ve put in place preventive actions dating back to 1989.  We have also put in place aggressive BSE surveillance programs that exceed all OIE requirements. There is no country in the world that has done all that we’ve done to prevent this disease.

NCBA members have grown increasingly frustrated with the pace at which export markets are reopening to U.S. beef products.  It remains NCBA’s top priority to regain for our cattle producers the $175 per head we lost due to the closure to export markets.  NCBA is hopeful this OIE designation will further our negotiation power as we continue to seek resumption of trade in our largest export markets.   

USDA Surveillance for BSE: USDA continues its enhanced BSE surveillance program which began June 1.  To date, 263,115 tests have been conducted with no positive cases reported. The Animal and Plant Health Inspection Service’s (APHIS) goal is to test as many cattle from the high-risk population as possible in a 12- to 18-month period. Testing 268,500 animals will detect BSE at a rate of 1 in 10 million adult cattle at a 99 percent confidence level.

Cattlemen Coming to Nation’s Capitol: REGISTER NOW! One month from now, hundreds of cattle producers from across the country will visit our nation’s capital for this major cattle industry conference on policy issues.  NCBA staff is busy with planning and preparations for its 2005 Spring Conference in Washington D.C., April 13-16. Attendees will hear directly from top policymakers, meet face-to-face with key Congressional offices, government agency influencers and have the opportunity to articulate policy priorities for today’s cattle industry. More information is posted on our website at:  http://hill.beef.org/spring.  You can obtain a registration form by contacting NCBA’s Washington DC office at 202-247-0228 or download one directly from our website at http://hill.beef.org/pdfs/RegistrationForm.pdf. Please submit registration forms by Friday, April 1, 2005.

NCBA-PAC to Raffle off John Deere Buck at Spring Conference!:  Another great reason to attend the NCBA Spring Conference in Washington D.C.!  All registered Spring Conference attendees will have an opportunity to win a John Deere Buck while also supporting NCBA-PAC!  The Buck ATV is well-known for being both hardworking and versatile, easily hauling up to 1,100 pounds.  Raffle tickets may be purchased for $100.00 each throughout the Spring Conference.  The winner will be announced during the NCBA Washington Office Open House on Friday, April 15.  All proceeds from the raffle will benefit NCBA-PAC.  NCBA-PAC makes the voices cattle producers heard on Capitol Hill by supporting members of Congress who speak for and protect our policy initiatives. If you are registered to attend the NCBA Spring Conference and would like to pre-purchase raffle tickets, please contact Erin Vincent at 202-347-0229 or evincent@beef.org. 

Japan Exports Update: More news on Japan’s closed borders to U.S. beef this week, as President Bush spoke with Japanese Prime Minister Koizumi on Wednesday morning urging Japan to lift its ban on U.S. beef. In a response today, Japan officials said they were considering the President’s request and discussing cattle age testing issues. In related news, legislation calling for economic sanctions introduced last week by Rep. Jerry Moran (R-KS) currently has over fifty co-sponsors.  NCBA member-producers are encouraged to contact their Representatives and urge them to support this resolution as a strong sign of support for our nation’s cattle producers. NCBA is hopeful this resolution will provide the push needed to reopen the Japanese market. 

Central American Trade: NCBA continues to urge support for the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) based on the exceptional merits and benefits to U.S. cattle producers. The agreement gives immediate duty-free access for our high-quality U.S. beef products in top Central American tourist destinations. With big news in Guatemala today, the Guatemalan Congress has approved the DR-CAFTA agreement. Honduras and El Salvador have already approved the deal, while approval in the United States, Nicaragua and Costa Rica is pending.

This spring, NCBA is urging all cattle producers from across the country to tell friends and neighbors the FACTS about this important trade agreement. The CAFTA-DR is a great agreement for cattle producers. Beef imports coming into the U.S. from these countries pay ZERO tariffs right now, while OUR beef exports to the same countries are taxed at 15-30 percent. As soon as the agreement is final, we can start sending our high-quality beef to these valuable tourist destinations with ZERO tariffs. For more info, go to our online NCBA CAFTA-DR Backgrounder at http://hill.beef.org/pdfs/CAFTA-DRFactSheet.pdf or go to the Office of the U.S. Trade Representative online at www.ustr.gov and click on the CAFTA-DR Briefing Book.

Other Export Markets Update: According to USDA's most recent unofficial tally regarding U.S. beef export markets, 66 countries have either fully or partially opened their borders to U.S. beef, while 29 remain closed. Below is our CCC update on the current status of our additional key beef export markets:

-Canada/Mexico: The U.S. imported a record amount -- in dollars -- of beef from Canada in 2004 at $1.207 billion. The second highest year on record for beef imports from Canada was 2002, at $1.149 billion. In tonnage terms, 2004 was third at 361,000 mt (rounded) behind the record 404,000 mt of 2002 and 373,000 mt of 2001. Beef (per lb) was cheaper in 2002 than it was in 2004. One metric ton = 2204.6 pounds. Historically, U.S. bone-in imports from Canada run about $200 million. U.S. Bone-in exports to Canada run about $20 million. U.S. Bone-in exports to Mexico run about $35 million.

-Key Markets Review: The top U.S. markets for beef and variety meat exports in 2003 were as follows (rounded numbers just for perspective, does not include processed product exports): (1) Japan at $1.4 billion; (2) S. Korea at $0.8 billion; (3) Mexico at $0.7 billion; (4) Canada at $0.3 billion. Currently, other key export markets for U.S. beef are: Hong Kong ($80 million in 2003); Taiwan; ($60 million); Russia ($55 million); China ($30 million); Egypt ($26 million). The total of these nine export markets equals about $3.45 billion of the $3.86 billion in total 2003 exports. All of these markets remain closed except for Mexico, where our 2004 trade was down 40 percent from 2003, and Canada, where we're down about 77 percent. Russia was our number one market for livers (four out of five of our exports to Russia are liver and/or offals). Egypt is our number two market for livers ($19 million of this $26 million is livers), half of the size of the Russia liver markets but four times liver market in Mexico or Japan.

Beef Caucus on Capitol Hill:  NCBA’s Legislative staff is busy “recruiting” members of Congress for the House and Senate Beef Caucuses. The Beef Caucus organizes Senators and Representatives who recognize the challenges being faced by cattle producers, support the U.S. beef industry, and want to work to help ranchers in both houses of Congress.  Members of the caucuses will speak as a collective voice cattle and beef issues and utilize opportunities in Congress to help our ranchers succeed and support the vital U.S. beef industry.  The 2005 Senate Beef Caucus is chaired by Senators Max Baucus (D-MT) and Kit Bond (R-MO).  The House Beef Caucus is chaired by Reps. Bob Beaprez (R-CO) and Dennis Cardoza (D-CA). NCBA member-producers are encouraged to contact their members of Congress and urge them to participate in the House or Senate Beef Caucus!

CAFO Rule: A federal court ruled last week that the Environmental Protection Agency (EPA) exceeded its authority by requiring Concentrated Animal Feeding Operations (CAFOs) to apply for NPDES permits under the Clean Water Act even if they do not discharge into waters of the United States.  The U.S. Court of Appeals for the 2nd Circuit ruled Feb. 28 that unless there is an actual discharge of a pollutant, there is no violation of the Act, and CAFOs are not obligated to get a NPDES permit.  The court noted that the Act does not empower the EPA to regulate point source themselves, rather the EPA’s jurisdiction is limited to regulating an actual discharge.  The judge’s ruling has other implications for cattle operations regarding stormwater runoff and nutrient management plans.  The court upheld the language in the rule that exempts stormwater discharges where there is runoff from land where CAFO waste has been applied (such as a field where manure has been applied as fertilizer) as long as the waste application is in compliance with a nutrient management plan and ensures appropriate agriculture utilization.  But the court is requiring that regulators be more stringent in their review of CAFO nutrient management plans, and ensure that those plans be made available for public scrutiny. 

NCBA hosts Congressional Breakfast:  NCBA’s Washington office hosted a meet-and-greet breakfast for Rep. Jeff Fortenberry (R-NE) on Thursday morning. Representing Nebraska’s 1st district, Fortenberry was elected in November 2004. 

Oklahoma Leadership Group in Washington:  Oklahoma’s Ag Leadership Program participants are in Washington D.C. this week and were briefed by NCBA staff March 9. The Oklahoma Agricultural Leadership Program (OALP) helps further develop future leaders for Oklahoma agriculture.  OALP is open to Oklahoma men and women, 25 to 45 years of age, who are engaged in production agriculture or a related agriculture business. They must show a strong commitment to aspire to a leadership role to benefit Oklahoma agriculture. The Oklahoma Agricultural Leadership Program consists of a series of seminars and study tours over a two-year period.

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.

For more information, please visit our web site at hill.beef.org.

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