Farm Bill in House Subcommittees: Today, the U.S. House Ag Subcommittee on Livestock, Dairy, and Poultry conducted a markup of livestock provisions within the 2007 Farm Bill. Sections of the Farm Bill under their jurisdiction include livestock marketing provisions, dairy programs, and other issues related to competition and industry structure. Of particular interest to cattlemen is language under the Miscellaneous Provisions regarding the utilization of a mandatory identification system for country of origin labeling.

Various amendments were brought forward which threatened to limit competition in the cattle marketplace. NCBA strongly opposes any amendments that would limit our freedom to market cattle the way we see fit. Cattle producers support a competitive, free-enterprise market. Alternative Marketing Arrangements are consumer focused, market driven, and in most instances, producer led. We work to enhance market transparency, reduce unnecessary government regulations on our businesses, and increase availability of market information for cattle producers. Producers need the freedom and flexibility to market their cattle in ways that provide the best return on their investment.

On Tuesday, May 22, the House Agriculture Subcommittee on Conservation, Credit, Energy and Research approved proposals for the Farm Bill titles under their jurisdiction, including Conservation, Energy, Credit and Research.

Regarding conservation, NCBA is pleased that the approved House subcommittee proposal substantially increases funding for the Environmental Quality Incentives Program (EQIP) and the Farm and Ranch Lands Protection Programs (FRPP). The proposal also extends important land reserve programs and creates an improved Conservation Security Program. Cattle producers will also benefit from several provisions designed to foster better cooperation between the USDA and the producers utilizing conservation programs.

Regarding energy issues, the draft includes an extension of the Bioenergy Program which encourages the expansion of biofuels production, including those fuels derived from animal waste and by-products. It also establishes an Energy Council of the Department of Agriculture to coordinate energy policy within the USDA and with other departments and agencies of the Federal Government.

Controlled Risk for BSE: The World Organization for Animal Health (OIE) voted to classify the United States as a ‘controlled risk’ country for BSE. The OIE announced its decision during this week’s 75th General Session of the International Committee meetings. NCBA Chief Veterinarian Dr. Elizabeth Parker was in Paris for the meetings.

U.S. cattle producers are pleased with the announcement and urges for the immediate lifting of trade barriers. "We have been extremely patient, and the continued embargos on our products must be lifted," says NCBA Chief Economist Gregg Doud. "It is simply unacceptable for such trade barriers to cause further economic damage to our industry. We expect this OIE categorization to trigger the lifting of long-standing political barriers to our products in various international markets."

Since BSE was first detected in the United States in December 2003, cattle producers have faced excessive trade barriers, with $4.8 billion in U.S. beef and beef product exports banned from international export markets. According to the USDA, 86 countries are either fully or partially opened to U.S. beef. Of the open markets, 53 accept bone-in products, and 30 accept product from animals over thirty months (OTM) of age. Eighteen countries still have an unjustified COMPLETE ban on U.S. beef. NCBA will continue to urge the U.S. government to demand free and fair trading practices and a full re-opening of their borders to our products.

The U.S. has taken progressive steps to eradicate BSE for almost two decades, and our extensive testing proves these steps have worked. In addition, our system of science-based firewalls ensures the BSE agent does not enter the food supply. The International Committee of the OIE unanimously adopted the resolution recommending that the United States as well as Canada, Switzerland, Taipei-China, Chile and Brazil be recognized as having ‘controlled risk’ status for BSE. This status provides for trade of all beef and beef products regardless of age.

FY 2008 Interior Appropriations in House: The House Committee on Appropriations Subcommittee on Interior and the Environment held its markup of FY 2008 Appropriations on Wednesday, May 23^rd. The subcommittee approved the following items: (1) an increase of $3.7 million over the currently enacted amount for the Bureau of Land Management (BLM) range account, (2) an increase of $1.099 million for the Wild Horse and Burro program, (3) retaining $10 million in the Range Improvement funds, and (4) a one million dollar increase of the currently enacted amount for the Forest Service. However, the House did not take action on extending the life of the unused categorical exclusions for permit renewals. Producers remain hopeful that positive action will be taken in the Senate on this item. NCBA and PLC are pleased with Wednesday's outcome and will continue to work with appropriators to promote adequate funding for public lands administration.

Clean Water Issues: On Tuesday, May 22nd, U.S. House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.), Energy and Commerce Committee Chairman John Dingell (D-Mich.) and Congressman Vernon Ehlers (R-Mich.) introduced HR 2421, the Clean Water Authority Restoration Act (CWARA) which will significantly expand federal jurisdiction of the Clean Water Act. NCBA opposes this legislation.

We ALL support clean water. Unfortunately, this legislation is not about clean water. It is about expanding the federal Clean Water Act (CWA) jurisdiction and inhibiting the authority of state governments and private property owners to locally manage land and water resources.

This bill seeks to remove the word "navigable" from the Clean Water Act and replace it with a new definition of the term "waters of the United States". It is clear that Congress, in 1972, intended to use the term "navigable" when it passed the CWA. The term preserves a critical balance of power with the States. Deleting the term "navigable" from the statute would call into question state responsibility for land and water decisions. Few, if any, waters would be controlled by the States.

In addition, the legislation would, for the first time, regulate virtually all "activities" that may affect waters of the United States. The definition of "activities affecting these waters" does not exist in current law, regulations, or the proposed legislation. It, therefore, provides significant opportunity for broad interpretation and misuse.

On cattle ranches, this would mean that federal permitting could be required for activities that affect streams and drainage ditches that are only wet during certain times of the year or during precipitation events. Also affected would be road ditches and water released from tile lines and vegetated filter strips. NCBA is urging fellow cattle producers to call their members of Congress and ask them to OPPOSE HR 2421.

Immigration Issues: This week, the Senate is busy considering S. 1348, the Comprehensive Immigration Reform Act, a bill introduced May 9th by Senate Majority Leader Harry Reid (D-Nev.) to reform U.S. immigration policy. Various amendments have been introduced and the Senate is continuing to debate this issue. NCBA policy supports immigration reform legislation that both strengthens border security and creates a temporary worker program that does not extend preferential treatment with regard to qualification for Legal Permanent Resident status. NCBA supports efforts to permanently eliminate the "catch and release" system that allows apprehended illegal immigrants from countries other than Mexico to go free with a notice to appear for a future deportation hearings.

Japanese Auditors at U.S. Beef Plants: Teams of Japanese auditors has been in the United States over the past two weeks and should conclude their inspections of U.S. beef processing plants and reviews of the processing and exporting procedures by May 28th. Successful completion of this team’s visit is expected to facilitate an end to Japan’s requirement that every box of beef imported from the United States be inspected. According to the U.S. Meat Export Federation (USMEF), a more streamlined inspection protocol in Japan has the potential to double U.S. beef exports to Japan. USMEF reports that U.S. beef and beef variety meat exports to Japan continue to hover at 2,500 metric tons per month. For January-March 2007, export volume totaled 7,975 metric tons with a value of $38.6 million.

Death Tax Repeal Introduced in the House: The Death Tax Repeal Permanency Act of 2007 (H.R. 2380), will fight for full, permanent repeal of the Death Tax, now has 72 co-sponsors. Reps. Kenny Hulshof (R-Mo.) and Robert Cramer (D-Ala.) introduced the legislation on May 17th. Currently, the Death Tax is on a 10-year phase-out to full repeal in 2010, yet will then be fully re-instated in 2011 (back to 2001 levels). H.R. 2380 makes the repeal permanent. Similar legislation (H.R. 1586) was introduced by Rep. Mac Thornberry (R-Texas) on March 20th.

By once again introducing legislation to repeal this onerous tax, these members of Congress have demonstrated an understanding and appreciation for the immense burden this tax places on American cattle producers who are hoping to pass their operation on to the next generation. The Death Tax is detrimental to the farming and ranching families who live off the land and run asset-rich, cash poor family operations. These families want to pass successful operations onto future generations. Yet more often than not, the Death Tax prevents that from happening.

Reducing the tax burden on ranchers has always been a top priority for NCBA and the cattle industry. For decades, NCBA has urged full and permanent repeal of this tax. NCBA will continue to fight for a permanent repeal, and urges House members to cosponsor H.R. 2380 and H.R. 1586.

Manure is NOT Superfund: NCBA continues to advocate to Congress that Superfund laws do not apply to livestock manure. Both the House and Senate have re-introduced bills that would exempt manure from regulation as a Superfund material. In the Senate, S. 807 was introduced by Senators Blanche Lincoln (D-Ark.) and Pete Domenici (R-N.M.). H.R. 1398 was introduced by Representatives Collin Peterson (D-Minn) and Ralph Hall (R-Texas) in the House.

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.

Trade Meetings: NCBA Chief Economist Gregg Doud is in La Jolla, Calif today for the U.S. Meat Export Federation (USMEF) Board of Directors meetings. The meeting brings together USMEF international staff, officers and members in one location to discuss U.S. red meat export strategies and market planning for the rest of the year.

Korean Trade is Growing: According to the latest USDA Export Sales Report, 13,200 metric tons of U.S. beef have been sold (however, not yet shipped) to Korea. This is an increase of 6,000 metric tons from last weeks report and equals 734 containers of beef products. With continued exportation of U.S. beef products to the Korean market, this market is providing a much needed boost to the cattle industry.

Renew TPA Today: Cattle producers are urging Congress for renewal of Trade Promotion Authority (TPA). Unless reauthorized, TPA is set to expire on June 30. This "fast-track" authority is extremely important when, after years of negotiations, final trade agreements are ready for passage. TPA assures that after trade agreements are finalized, Congress cannot make last-minute, special interest concessions or amendments. Such activities destroy long-negotiated, collective and intricate agreements between nations, and they also inhibit our representatives’ ability to negotiate in good faith.

From NCBA’s perspective, however, the strongest selling point for an extension of TPA is the fact that Australia has recently entered into FTA negotiations with Japan. Without TPA, U.S. cattlemen will be left standing on the sidelines while other countries take over our top markets.

With the recent news in Congress announcing a bipartisan consensus on trade policy and pending free trade agreements, we urge bipartisan work on renewal of TPA before its expiration. Between 1994 and 2002, when the President did not have TPA, America’s foreign competitors took advantage of opportunities to expand their presence in the international marketplace. The rest of the world was moving forward and signing trade deals that excluded the United States. We will continue to urge Congress for renewal of this important international trade legislation before the looming deadline. Call your Senators and Representatives TODAY and urge them to RENEW TPA!

President Urges Resumption of Beef Trade & Other Priorities: During a press conference held this morning, President Bush addressed multiple issues that are of great importance to NCBA and cattle producers nationwide. He discussed the complex relationship between the United States and China and stated that the opening of markets, namely the beef market, will be beneficial to both the Chinese and the American people. Lastly he commented that our governments are working together, in a strategic dialogue, to open these markets.

Don't Miss NCBA’s Cattlemen to Cattlemen: Tune into NCBA’s Cattlemen to Cattlemen on RFD-TV at 10:00 a.m. (Eastern time) this Saturday for the latest market news and updates from Washington, D.C., and we’ll head to Colorado State University to learn more about how value is being added to the beef carcass. Look for a special animal health segment with tips on controlling horn flies. Plus, we'll preview some exciting new beef products hitting supermarket shelves right now.

On next week’s Cattlemen to Cattlemen episode, beginning Tuesday, May 29th, we will examine how growth enhancement technologies can help improve your operation’s bottom line. Also, with the Memorial Day holiday weekend kicking off the grilling season, we’ll look at tips on grilling safely this summer. Finally, we’ll discuss the controversial issue of eminent domain.

Tanya A. Camarra or Karen Batra at 202-347-0228, tacamarra@beef.org or kbatra@beef.org.