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).

Death Tax:  NCBA is still looking for the Senate to vote and hopefully finally pass legislation to permanently repeal the devastating Death Tax.  A vote was expected before Memorial Day recess, but with issues related to immigration, fuel prices, energy policy, and health care taking over the Senate agenda, a vote on Death Tax could come later in June.  If that’s the case, ranchers will have a great opportunity to talk to Senators in their home states over the May 27-June 4 Congressional recess.  Now is NOT the time to let up!  We need to keep letting Senators know that the Death Tax must go!

Ranchers and farmers can continue to send letters to their Senators though our Cap Wiz web site at http://capwiz.com/beefusa.  Also, visit our special Death Tax web resource at http://hill.beef.org/tax for more information and for tools to use as part of this effort.

The Death Tax Hurts Real Working People:  Chris Christensen, a rancher in Hinsdale, Mont., tells his Death Tax story (for more personal real-life stories, visit http://hill.beef.org/tax):  “In 1971, my grandfather Ray died.  The ranch was solely in his name, and my mother had to pay a Death Tax.  A year later, my grandmother Emma passed away.  The ranch was passed down to my dad, who had to once again pay a Death Tax on the same land.  Then, in 1978, my father was diagnosed with cancer, and he passed away two months after the diagnosis.  The ranch was left to my mom Donna, me - I was 14 at the time - and my younger brother.  We once again had to pay the tax on the same land. At this point, we almost lost the ranch.  We had to re-mortgage multiple times and had to sell cattle.  Today, we are still in debt.  Each time we thought we were done paying the interest rates and loans and would finally be able to profit and grow again, something else would happen. I have been trying to tell the story of the crippling effects of this tax on U.S. ranchers for almost my entire life.”

China Trade Update:  A delegation from the U.S. and Chinese governments concluded two days of negotiations in Beijing this week to establish a protocol for the resumption of U.S. beef sales to China.  The U.S. delegation was led by Dr. J.B. Penn, USDA under secretary for farm and foreign agricultural services who reported that “considerable progress” was made during the discussions this week and that additional meetings are scheduled with the objective of concluding talks and reopening the Chinese market to U.S. beef.  Penn said negotiators also worked to develop a memorandum of cooperation that provides a basis for addressing food safety issues on an ongoing basis.

Japan Trade Update: USDA officials are in Japan to continue discussions on the resumption of U.S. beef exports to Japan. Dr. Chuck Lambert, acting under secretary for marketing and regulatory programs, and Ellen Terpstra, deputy under secretary for farm and foreign agricultural services, are leading the U.S. delegation.  At Japan’s request, USDA recently conducted a review of U.S. beef processing facilities and teams of Japanese officials are expected to visit U.S. beef processing facilities in the coming weeks to finalize their own audits.  Japanese Prime Minister Junichiro Koizumi is scheduled to visit the United States in late June. 

Japan Confirms 26th BSE Case: In related news, Japan confirmed its 26th case of BSE May 13.  According to media reports, a dairy cow in the country's northern province of Hokkaido tested positive for the disease, and a panel of agriculture ministry experts confirmed the announcement. No part of the cow entered the food or feed chains, the ministry said in a statement.  The animal was 5 years and 8 months old and was born prior to Japan’s 2001 feed ban.  The United States implemented its feed ban in 1997. 

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 714,624 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.

President Signs Tax Package:  In a signing ceremony on the south lawn of the White House May 17, President Bush signed into law the Tax Relief Extension Reconciliation Act of 2005. “Economic growth begins with the hard work of the American people and good policies in Washington, D.C.,” said the President.  “We believe that our economy prospers when the American people make their own decisions about how to save and spend and invest their own money….One of the most important decisions we made was to cut the taxes on dividends and capital gains. These cuts were designed to lower the cost of capital and to encourage businesses to expand and hire new workers.”

This package, aimed at addressing tax relief measures that are due to expire, is a victory for all of America's farmers, ranchers and small business owners.  Key provisions that will benefit producers include:  extension of the current 15 percent maximum capital gains rate until 2010; extended relief for taxpayers from the Alternative Minimum Tax (AMT) by extending the lifespan of the current higher AMT exemption (this AMT relief includes a new exemption rate of $42,500 for single filers and $65,550 for joint tax filers.); and an extension of increased small business expensing levels for depreciable business property from 2008 to 2010.

Walk-a-Mile in My Boots:   California cattle producer and NCBA member and Public Lands Council President Mike Byrne is in Washington D.C. this week, swapping day jobs with Sara Braasch, Assistant Chief, Western region, for the Natural Resources Conservation Service (NRCS). Byrne’s three-day visit was part of the Walk a Mile in My Boots work-exchange program.  “Technically I was walking around in my own boots, since Sara’s shoes were too small,” jokes Byrne, “but being included in the down-and-dirty daily routine at NRCS headquarters made me better appreciate what goes on at the federal level. These guys are constantly sticking up for farmers and ranchers amongst the hugely urban presence that presides here in Washington D.C.”  Mike participated in an array of meetings to discuss key policy issues affecting cattle ranchers back home, including endangered species reform, conservation initiatives and environmental regulations. 

This award-winning program was originally launched by NCBA and the U.S. Fish and Wildlife Service (FWS) in 2003 and to provide government employees and cattle producers with on-the-ground work experiences in each other’s respective professions. This year the program expanded to include partnerships with the National Association of Conservation Districts (NACD) and the USDA Natural Resources Conservation Service (NRCS).   Any cattle producer, NACD member, FWS employee, or NRCS employee can apply for the exchange program.  For more information, go to www.walkamileinmyboots.org or www.nrcs.usda.gov/feature/volunteers/walkamile.html.

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). For cattlemen, this issue could have a tremendous impact. If opponents of animal agriculture are successful in their efforts to bring manure under Superfund regulations, any cattle producer that spreads manure on a pasture or provides it for use as a fertilizer could be subject to EPA's Superfund laws, originally intended to address hazardous and toxic industrial chemical spills.  This bill currently has 148 co-sponsors.  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!

Appropriations:  The House is debating the Fiscal Year 2007 Interior and Environment Appropriations Bill and could vote on the bill later tonight, May 18.  The House will consider the Fiscal Year 2007 Agriculture Appropriations bill next week. 

Schwab Confirmation:  The Senate Finance Committee held a confirmation hearing May 16 for Susan Schwab, nominated to be the next U.S. trade representative. President Bush announced Schwab’s nomination April 18 to replace Rob Portman who was named White House budget director.  Schwab currently serves as deputy trade representative.

Farm Foundation Farm Bill Forum:  NCBA participated in a Farm Bill Forum hosted by Farm Foundation May 17.  This month’s forum focused on “Budget Challenges and the Farm Bill.”  Guest speakers included Craig Jagger and Chip Conley, House Agriculture Committee staff.  As discussions in Washington turn to development of the 2007 Farm Bill, Farm Foundation is organizing a series of forums to engage stakeholders in dialogue on food and agricultural policies. For more information, visit www.farmfoundation.org.

Producers Encouraged to Submit Farm Bill Feedback:  House Ag Committee Chairman Bob Goodlatte announced last week an online Farm Bill Feedback Form that is available at http://www.agriculture.house.gov/inside/feedbackform.html.  This form is available to encourage all of America's agriculture producers who are unable to speak up at one of the field hearings to share their feedback on how the 2002 Farm Bill policies have impacted their businesses and what they would like to see in future farm policy.  The information provided via this web form will be submitted to each member of the House Committee on Agriculture, but will not be published in the Congressional Record.

USDA Farm Bill Theme Paper Available Online:  USDA has completed a risk management analysis paper, the first in a series of papers intended to provide factual information and continue the national discussion about best policy approaches in preparation for the 2007 Farm Bill. The paper is based on the more than 4,000 comments received orally and in writing during USDA’s 52 Farm Bill Forums across the nation. The risk management paper is posted at: http://www.usda.gov/.

ATAC Meeting:  NCBA Chief Economist Gregg Doud, Kansas cattleman Dana Hauck, and former USMEF Vice President of Trade Development Richard Fritz will attend meetings of the Agricultural Technical Advisory Committee (ATAC) in Washington May 19.  The ATAC advises the Ag Secretary and the U.S. Trade Representative on a wide variety of market access and technical sanitary and phytosanitary (SPS) issues related to existing and future trade agreements.  At this week’s meeting, topics of discussion focused on the reopening of export markets, World Trade Organization (WTO) negotiations, bilateral (FTA) negotiations and a long list of SPS issues.

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