Cattlemen's Capitol Concerns: March 18, 2004

The 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 National Cattlemen’s Beef Association (NCBA).

NCBA Talks with Asian Leaders:  NCBA Vice President of Government Affairs Chandler Keys is making an extensive trip through Japan, China and Thailand this week, meeting with top government officials in regards to beef trade issues. With Keys is Senator Max Baucus (D-MT), ranking member of the Senate Finance Committee, members of his staff, and a delegation of U.S. agriculture representatives and national industry groups. The Senate Finance Committee has jurisdiction over U.S. international trade policy. Keys met with Japanese officials this Monday to urge for the lifting of a current ban on U.S. beef exports. In 2003, the U.S. exported more than 375 thousand metric tons of beef and beef variety meats to Japan worth $1.4 billion. The group explained the impressive components of the complex U.S. food safety system, producing the safest beef products in the world. "We made it very clear that this has to be resolved – Japan is our biggest export market for beef," said Sen. Baucus, immediately following his meeting with Chief Cabinet Secretary Mr. Yasou Fakuda. The group then traveled to China, (Beijing, Shanghai) for meetings with business leaders and Chinese government officials, including President Hu Jin Tao, Premier Wen Jia Bao, Vice Premier Wu Yi, Minister of Agriculture Du Qinglin, and Minister of Commerce Bo XiLai. They are currently in Bangkok, Thailand where meetings will be held with Foreign Minister Surakiart, FTA Chief Negotiator Amb Nitya Pibulsonggram, Foreign Min Surakiart, and Prime Minister Thaksin.

Mexican Anti-Dumping Tariffs: Almost four years later, the current Mexican anti-dumping tariffs on U.S. beef exports to Mexico were finally addressed. In years of cooperation with Mexican cattle producers on a wide variety of trade issues, U.S. cattle producers have become extremely frustrated with the continuation of so-called ‘anti-dumping’ tariffs on U.S. products coming to Mexico. This week’s long-awaited move by North American Free Trade Agreement (NAFTA) panel regarding this anti-dumping tariff comes after repeated delays. NCBA is extremely pleased that this panel has finally realized the gravity of this situation and is attempting to resolve this complex system of egregious tariffs on our beef exports to Mexico. There is no legitimate justification for accusing our industry of dumping. The NAFTA panel agreed that these tariffs were inappropriately applied. Since April 28, 2000, the Mexican government has imposed a complex set of specific duties on most beef carcasses and cuts on a company by company basis with small and medium sized exporters disproportionately affected. Shortly thereafter in July 2000, a NAFTA dispute resolution panel was established after the U.S. strongly objected to the Mexican government actions. Tariffs on beef trade between the U.S. and Mexico were supposedly established at zero in 1994. This case has cost U.S. beef producers millions of dollars in lost beef exports to Mexico. This decision continues to be a top concern of U.S. cattlemen, and lifting of these tariffs is long overdue.

BSE Testing: The USDA announced Monday that it will test approximately 200,000 U.S. cattle for Bovine Spongiform Encephalopathy (BSE) over 12-18 months in a one-time increased surveillance program to assess the level of risk. The U.S. is the only country with a single case of BSE to implement such a thorough testing program.  NCBA supports this increased, one-time sampling of the at-risk cattle population but insists that the testing program must include the following important elements:

- The USDA must ensure that the system has the capacity to conduct this level of testing;

- The USDA must anticipate consumer confidence, trade partner, cattle marketing and other issues in advance and develop effective communication plans;

- The program must be based upon science and follow the Office of International Epizootics guidelines;

- The process must engage a partnership of state animal health officials, veterinarians, renderers, livestock markets, packers and producers to ensure access to samples;

- The sample analysis process must employ the use of only government-licensed tests used only in government-approved laboratories that are capable of maintaining proper biosecurity, as well as information and verification security.  Producer information, in particular must remain confidential;

- Because virtually all rapid tests can produce "false positives," the system must ensure that all "positive" test results be verified by internationally accepted methods;

- The USDA should organize and conduct this program in concert with Canada and Mexico and efforts should be accelerated to maintain global consumer confidence and to expedite reopening of our export markets;

- After completing the comprehensive testing level, USDA should review and revise the level of testing and preventive measures to reflect the level of risk to our herd and our food supply.

The NCBA pledges full support in all efforts to enhance our BSE firewalls, and we are confident that this increased testing will prove that the risk for BSE in the U.S. is extremely low.

Dominican Republic Export Markets: USDA announced this week that the U.S. and the Dominican Republic concluded a free-trade agreement. USDA says it expects new and expanded market access for a broad range of U.S. commodities. For cattle producers, the Dominican Republic would offer export opportunities for high quality fresh/chilled and frozen beef sold to the hotel and restaurant industry. Currently, trade barriers in the form of high duties, non-tariff barriers, and slow or non-issuance of import licenses limit U.S. beef exports. We will continue to make recommendations to the U.S. government on this export market opportunity for U.S. cattle producers.

Celebrate Agriculture: This week is National Ag Week and Saturday, March 20, is National Ag Day. Each year, on or around the first day of Spring, National Ag Day gives producers, agricultural associations, corporations, universities, government agencies and others across America the opportunity to recognize and celebrate the abundance provided by agriculture. Nebraska Rep. Lee Terry (R-NE) thanked America’s agriculture producers in an article he wrote commemorating National Ag Week. "Despite their importance, agricultural producers are often taken for granted because our food is readily accessible and safe.  We should appreciate the work that goes on in the fields and feedlots outside city limits, and the role it plays in our lives," writes Terry.  NCBA is a proud sponsor of Ag Day 2004. For more information contact the Agriculture Council of America or visit www.agday.org.

Tax Breaks for Producers:  In related news, Rep. Terry is expected to introduce "The Beginning Farmers and Ranchers Tax Incentive Act" (H.R. 2978) which calls for an exemption from capitol gains taxes for producers who sell their agriculture land to a beginning farmer or rancher who is a first-time buyer. Even if the buyer was not a beginning producer, the seller would still receive a 50 percent capital gains reduction as long as the buyer kept the land in ag production. Terry is concerned about the declining number of farms and ranches.  "There are nearly five times as many farm operators over age 75 as there are under age 25," says Terry. "This plan aims to increase the number of young farmers and ranchers, while keeping more of the nation's agricultural land in production."

Food Safety Summit:  The 6th Annual Food Safety Summit and Expo is taking place in Washington this week, March 17-19.  On Wednesday, the Summit featured a session called "BSE in America:  Mad Cow is here, Now What?" that included remarks by USDA’s Deputy Administrator of Veterinary Services Ron Dehaven.  On Thursday, NCBA Executive Director of Regulatory Affairs Gary Weber participated in a panel discussion, "BSE Update: What You Need to Know About Mad Cow and Beef."  Other panelists included:  Chuck Jolley, Meat & Poultry magazine, Bill Feldman, Food Chemical News Publications, and Caroline Smith DeWaal, Citizens for Science in the Public Interest. The Conference and Expo provides food manufacturers, processors and restaurant and foodservice professionals with the very latest updates on new technologies, as well as regulatory and scientific issues in food safety. 

Dietary Guidelines/Food Guide Pyramid:  NCBA Director of Food Policy Leah Wilkinson, along with other representatives from other food groups met this week with USDA’s Under Secretary for Food, Nutrition, and Consumer Services Eric Bost to discuss revisions to the Dietary Guidelines and Food Guide Pyramid. The Guidelines are a broad-based nutrition policy guide which, using the latest scientific and medical knowledge, advises the general public on ways to improve overall health through proper nutrition.  NCBA hopes the future Guidelines will emphasize the benefits of consuming naturally nutrient-rich foods such as fruits, vegetables, whole grains, low- and non-fat dairy products, and lean beef. NCBA adds that beef is an excellent source of essential nutrients such as protein, iron, zinc, and vitamins B6 and B12. These were the points highlighted in NCBA’s first set of comments submitted to the 2005 Dietary Guidelines Advisory Committee in January.  In related news, nutritionists and food industry experts gathered in Washington on Tuesday for the Naturally Nutrient Rich Scientific Symposium.  FDA Acting Commissioner Lester Crawford was the keynote speaker on the agenda which offered an in-depth look at American eating trends.  Participants examined scientific evidence and rationale for nutrient density as a core principle in dietary guidance.

Protecting Ranch Lands: The USDA announced this week that $84 million will be available to protect farm and ranch land through USDA's Farm and Ranch Lands Protection Program (FRPP). According to the USDA, this program protects productive agricultural land by purchasing conservation easements to limit conversion of farm and ranch lands to non-agricultural uses. The USDA will be accepting proposals from interested state, tribal and local governments and non-governmental organizations until the end of April 2004. To participate, landowners agree to limit the use of their land for nonagricultural purposes and to develop and implement a conservation plan. USDA qualifications state that the farm or ranch land must contain productive soils or historic or archaeological sites and be: (1) part of a pending offer from a nongovernmental organization, state, tribe or local farmland protection program;(2) privately owned; (3) covered by a conservation plan; (4) large enough to sustain agricultural production;(5) accessible to markets for what the land produces; and (6) surrounded by parcels of land that can support long-term agricultural production. For more information, go to the USDA site at http://www.nrcs.usda.gov/programs/frpp.

Disaster Relief: USDA announced this week that they are providing about $3.4 million in Emergency Conservation Program (ECP) funding to 10 states and one territory. USDA Secretary Veneman noted, "The funds will help farmers and ranchers rehabilitate farmland damaged by tornadoes, drought and other natural disasters. We are able to provide this funding as a result of unused allocations from other states." The areas include Colorado (Drought: $45,000), Guam (Typhoon: $30,000), Idaho (Drought: $30,000), Illinois (Tornado: $75,900), Kansas (Tornado: $102,000)

Kentucky (Ice storm: $2,200,000, Flood: $2,400), Minnesota (Tornado: $133,000), Missouri (Tornado: $50,000, Flood:$20,000, Drought: $15,000), Oklahoma (Tornado: $60,000), Oregon (Flood:$16,500, Drought: $604,000), South Dakota (Tornado: $16,000). Producers can check with their local FSA offices regarding sign-up periods.  USDA offers additional programs to help farmers and ranchers recover from damages caused by natural disasters.  More information on this and other disaster assistance programs is available at local FSA offices and online at: http://disaster.fsa.usda.gov.

Kentucky, Illinois and Kansas visitors: NCBA has been hosting more visitors this week from state groups across the country. Kentucky’s LEAD program was be here on Tuesday, members of the Macon County (IL) Farm Bureau were here on Wednesday, and agriculture leaders from Kansas were here today (Thursday). NCBA Washington D.C. staff are briefing the visitors on top agriculture policy issues in D.C. for 2004.

NCBA Spring Conference: NCBA continues to prepare for its 2004 Spring Conference in Washington, March 29-April 3. Hundreds of cattlemen from across the country will be in the national’s capital for this important event.

-Rep. Beauprez (R-CO) to speak Wednesday:  Congressman Bob Beauprez (R-CO) is confirmed to speak at the NCBA Executive Committee Lunch Meeting at 11:30am on Wednesday at the Holiday Inn DC on the Hill.  Beauprez is the first representative of Colorado’s new 7th Congressional District. He sits on the House Small Business, Transportation and Infrastructure, and Veterans Affairs Committees.  

-Town Hall Meeting to be Broadcast Live Via Satellite: In addition to the meetings with lawmakers and agency officials, NCBA will broadcast a Town Hall meeting live via satellite from Capitol Hill on Thursday night. The 90-minute live broadcast will include updates on NCBA’s legislative and regulatory efforts, particularly actions to reopen export markets for U.S. beef and minimize the impact of new BSE regulations on cattlemen. The broadcast will be moderated by Jeff Nalley, 2004 National Association of Farm Broadcasters president, and will feature NCBA President and Kansas cattle producer Jan Lyons, NCBA Chief Executive Officer Terry Stokes, NCBA Vice President of Government Affairs Chandler Keys and NCBA Chief Economist Gregg Doud.

The Satellite Town Hall will provide cattlemen from around the nation the opportunity to call in to a telephone number provided on-screen with their own questions or comments.  The meeting will be broadcast live on RFD-TV from 7:00 pm to 8:30 pm (ET) April 1. Televisions at the Capitol Hill reception and the Holiday Inn in-room TVs will air the broadcast.  A tape of the show will be rebroadcast three times on the RFD-TV channel at six hour intervals, following the start of the initial broadcast.  The program will also be broadcast on Saturday, April 3 at 4:00 pm (ET).

Media Contact:

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

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