Cattlemen's Capitol Concerns: May 13, 2004

Cattlemen's Capitol Concerns

May 13, 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).

Tax Relief for Cattle Producers: In passing the Jumpstart Our Business Strength (JOBS) Act this week, the Senate approved important tax cuts for U.S. cattle producers suffering from drought conditions. The legislation includes a provision which allows for the extended deferral of capital gains tax from drought-related sales of livestock, previously referred to as the "Rancher Help Act." NCBA is extremely pleased that the Senate has passed this tax change for cattle producers. Producers across the country have been suffering through drought conditions for years, and are in dire need of changes in these current tax burdens.

NCBA has worked with members of Congress for many years to push for the passage of such legislation, requesting changes to the tax code to enhance the business climate for cattlemen. Under current tax laws, ranchers forced to reduce their herds due to historically-dry grazing lands are exempt from paying capital gains tax if they replace their herds within two years.

Another provision in the bill would give tax credits to cattle producers who produce electricity from renewable resources like livestock waste nutrients.  NCBA will continue to urge members of the House to include these important provisions in the House version, or to ensure that the Senate provisions are kept in conference.

Japanese Trade: The USDA announced this Wednesday that the U.S. and Japan will conduct additional meetings regarding beef trade issues next week. The first technical working group meetings are scheduled for May 18 and 19 in Tokyo. More meetings are planned in June and July. As reported in the April 29, 2004 edition of the CCC, cattle producers are optimistic with the progress made during most recent talks. Late April’s meetings in Tokyo brought a breakthrough in discussions. In the border reopening process, the U.S. and Japan working group will address: (1) Definition of BSE and the method of testing; (2) Definition of Specified Risk Materials (SRMs) and the method of removal; (3) Appropriate surveillance; (4) Appropriate feed ban implementation; (5) Risk categorization/status of countries; (6) Cattle month-age identification and more.

Iowa Rancher Testifies on Conservation:  Iowa rancher and NCBA member David Petty flew to Washington D.C. this week to testify before the Senate Ag Subcommittee on Conservation, Credit, Rural Development and Research. Petty testified before Congress on behalf of cattle, dairy, swine, and poultry (broilers, layers and turkeys) in response to the implementation of the Conservation Title of the 2002 Farm Bill. There are various programs that have specific implementation concerns for producer groups, including the Environmental Quality Incentives Program (EQIP), Comprehensive Nutrient Management Plans (CNMPs), Conservation Security Program (CSP), Grassland Reserve Program (GRP), and the implementation of Technical Service Providers (TSPs). At the testimony, Petty stressed the importance of effective implementation for cattle producers.  For a full copy of these written comments, go to http://hill.beef.org/pdfs/pettytestimony.pdf .

Endangered Species: The Public Lands Council (PLC) submitted comments this week to the U.S. Fish and Wildlife Service (FWS) regarding management of the Gray Wolf species. The PLC and NCBA support the FWS proposed amendments to the 10(j) rule that gives states with approved wolf conservation plans greater flexibility to manage the introduced experimental populations.  PLC/NCBA comments also ask that the FWS expand the proposed rule to extend beyond the experimental populations in each state, and to include Wyoming, whose plan has yet to be approved. The ever-increasing wolf population is threatening the viability of many cattle operations on both public and private lands. NCBA and the PLC have long supported state management of endangered species which provides a more workable regulatory environment for Western cattlemen.  

Grassland Reserve Program: This week, USDA announced the release of an interim final rule to implement the Grassland Reserve Program (GRP), authorized in the 2002 Farm Bill. This voluntary conservation program was created to give landowners, such as cattle producers, financial incentives to restore and protect grasslands. It serves as an important buffer against the loss of grasslands to conversion for cropping and other uses.  Uses of GRP land include: grazing, prescribed burning, range seeding, fencing, and brush management. While thousands of have sought enrollment, the limited funding ensures that NRCS will be able to approve only a small percent of the applicants.

NCBA worked with other organizations for years to conceive, create and build support for a program to conserve native grasslands.  In the implementation, NCBA is working in Washington D.C. to assure that the GRP is a constructive program for cattle producers, committed to supporting the ranching tradition by preserving the open spaces for future generations and keeping working ranches intact.  Doing so helps ensure a viable and strong rural economy and helps conserve our nation's most threatened ecosystems and the plant and animal species they support. For more information on GRP, go to http://www.nrcs.usda.gov/programs/grp.

BSE in High Schools Across Nation: This week, Capitol Hill was turned into one of the largest classrooms in the country, and BSE was highlighted front-and-center. NCBA participated in "Capitol Deliberations," an Electronic Field Trip sponsored by Ball State University and the Best Buy Children's Foundation. NCBA’s Executive Director of Regulatory Affairs, Dr. Gary Weber met with students from across the country, Members of Congress, lobbyists, and government officials on this national program. The program was designed for students to take a top policy issue (BSE) and discover the legislative process, learning about the public policy that shapes our tomorrows. The program was broadcast on May 11 and 13, aired in high schools across the country.

BSE Labs: This week, the USDA’s Animal and Plant Health Inspection Service (APHIS) announced five additional state laboratories which will assist in the surveillance program for BSE. According to USDA press reports, the following laboratories will receive federal funding on a per test basis: Kissimee Diagnostic Laboratory, Florida Department of Agriculture and Consumer Services, Kissimee, Fla.; Minnesota Veterinary Diagnostic Laboratory, University of Minnesota (St. Paul); Veterinary Diagnostic Laboratory, Kansas State University (Manhattan); U.S. Department of Agriculture Laboratory, Frankfort, Ky.; and Pennsylvania Veterinary Laboratory, Harrisburg, Pa. The USDA says these labs will work in coordination with seven other state laboratories that were approved to conduct BSE surveillance testing on March 29. More information on the BSE surveillance program is available online at http://www.aphis.usda.gov/lpa/issues/bse/bse.html.

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.

Please feel free to reprint in full.