Cattlemen's Capitol Concerns

March 13, 2008

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.

Farm Bill Update: Congress has passed another extension to the 2002 Farm Bill this week and now has until April 18, 2008 to complete their work on the 2007 Farm Bill. 

In remarks today, President Bush said the extension will provide more time for Congress to reach an agreement.  “If a final agreement is not reached by April 18, I call on Congress to extend current law for at least one year,” said the President.  “I have made clear the framework of an agreement that will garner my signature and urge Congress to pass a bill that meets these criteria.”

Both houses of Congress are scheduled to adjourn at the end of this week for a two week Spring recess. This doesn’t leave much time for resolving differences between the House and Senate versions of the bill and producing a final package that would be acceptable to the Administration.  Congress is expected to reconvene on Monday, March 31.

Opposition Grows to USDA Rule Expanding Argentinean Imports:  As reported in last week’s edition of Cattlemen’s Capitol Concerns, NCBA continues to watch for any action from USDA on a rule that could expand trade access with Argentina and jeopardize the health of the U.S. cattle herd.  Animal diseases, especially Foot-and-Mouth Disease (FMD), continue to be a problem in Argentina and its neighboring countries.  For this reason, NCBA has opposed USDA releasing the rule before conducting an updated and thorough risk assessment.

Additionally, Senate leaders have expressed their strong objections to the proposal in a letter to Secretary of Agriculture Ed Schafer.  “Questions remain about the effectiveness of animal disease controls and tracking in Argentina,” the senators said.  “Weaknesses in this system could have serious effects on the American livestock industry.” The senators also asked the USDA to “carefully analyze the full economic cost of this proposal, including the risk of a foot-and-mouth disease outbreak in America and the impact on prices paid to domestic producers from increased Argentinean imports” before issuing judgment on the proposal. 

The letter was signed by Senators John Barrasso (R-Wyo.), Kent Conrad (D-N.D.), Pete Domenici (R-N.M.), Byron Dorgan (D-N.D.), Mike Enzi (R-Wyo.), Tim Johnson (D-S.D.), Claire McCaskill (D-Mo.) and Jon Tester (D-Mont.).

Of equal concern to cattlemen is why the USDA would focus their efforts on increasing beef imports from another country when U.S. beef and breeding stock exports to other countries continue to be banned.

Mexican Trade Update:  Mexico has reportedly offered a new trade protocol to the USDA for consideration regarding the importation of U.S. cattle. The news comes after Texas Agriculture Commissioner Todd Staples announced last week an order to stop specific Canadian cattle from passing through the state’s export facilities into Mexico.  Texas cattlemen supported Staples’ action. 

Mexico has denied access to U.S. breeding stock and older cattle since December 23, 2003, when the United States announced its first-ever case of BSE.  Currently, Mexico will only allow the importation of U.S. dairy heifers under the age of 24 months, despite in-depth international negotiations to broaden this to include all breeding stock.  Mexico has already agreed to take cattle and breeding stock under 30 months of age from Canada while denying the same access with the United States, a move inconsistent with international standards.

NCBA believes the move by Mexico to submit a new trade protocol is encouraging.  “We’ve been working for years to get all beef, cattle and especially U.S. breeding stock, back into Mexico,” says NCBA’s Chief Economist Gregg Doud.  “With the second Minimal Risk Regions Rule in place since November and our OIE status confirmed last May, there is no further reason for