Cattlemen's Capitol Concerns: May 27, 2004

Cattlemen's Capitol Concerns

May 27, 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 Requests Action from USDA: NCBA members agree that the U.S. beef industry and USDA are providing our consumers with the safest beef in the world. Since December 23, the USDA has successfully dealt with complex and significant challenges. That said, the producers of NCBA are very disappointed with recent shortcomings by the USDA. Such actions have brought erroneous media attention questioning the safety of the food supply in the U.S. and the well-being of the U.S. cattle industry. The USDA must respond aggressively to such reckless accusations and make themselves accountable. The Agriculture Department’s credibility is at stake. We cannot afford to see a repeat of the recent decisions that have raised questions about the department, as well as our livelihood.

This week, NCBA members sent a letter to Secretary Veneman urging the department to be accountable, transparent, and have open communication with the public. NBCA also sent two memos to officials at USDA.  One memo went to Under Secretary for Marketing and Regulatory Programs, Bill Hawks, and Under Secretary for Food Safety, Elsa Murano, seeking answers to questions regarding the Canada import issue.  The other memo was sent to APHIS Administrator, Ron DeHaven, and FSIS Acting Administrator, Barbara Masters, regarding details of the enhanced BSE surveillance program. 

For the past one hundred years, NCBA members have been proud of the strong working relationships we have forged within our industry and with numerous government agencies. NCBA understands the responsibility of leadership and the need to be involved in the process of constant improvement, not the blame game.  USDA must addresses these shortcomings and maintain its credibility.

A copy of the letter and memos are found online at hill.beef.org/usdamemos

Drought Conditions: Severe Drought conditions persist in many parts of the country.  Recent mass media coverage has lead to increasing awareness of this long-term drought. NCBA continues to receive calls about the situation.  On May 20, Sen. Max Baucus (D-MT) introduced legislation to deal with the drought conditions. The bill is titled S. 2456, `Emergency Agricultural Disaster Assistance Act of 2004'   This would provide funds needed for the Livestock Assistance Program, provide capital gains tax relief due to involuntary conversion, and establish Farm and Ranch Risk Management Accounts so that producers could set aside part of their income tax free to be saved for drought or disaster conditions.  NCBA will work with Senator Baucus and other members of the House and Senate to provide needed funds for drought relief  and to establish the needed policy changes so that producers are better able to manage through drought and other natural disasters.

Country-of-Origin Labeling:  A coalition of agriculture industry groups voiced their support this week for efforts to create a voluntary program that would label beef, pork, fish and produce with country of origin.  A statement from NCBA, National Pork Producers Council, United Fresh Fruit and Vegetable Association, National Fisheries Institute, Produce Marketing Association, American Meat Institute, National Meat Association, Food Marketing Institute, National Grocers Association, and National Food Processors Association says "The entire industry is committed to making it work…We are enthusiastic about this effort and hope others in the agriculture, processing, retail, and food service communities will give this effort full consideration."  Key members of Congress are drafting legislative language that would implement a voluntary country-of-origin program.  Legislation is expected to be introduced after Congress returns to Washington D.C. next week.

In related news, Senator Tom Daschle (D-SD) introduced May 20 an amendment to the Defense Authorization bill that would require the implementation of the current mandatory country-of-origin labeling law on September 30, 2004.  NCBA policy does not support this amendment, and is concerned about efforts to implement the problematic mandatory program under such a tight timeframe.

Mexican Trade: This week, U.S. and Mexican agriculture trade officials met to discuss bilateral trade issues. Agriculture Under Secretary J.B. Penn was said to be pleased with the decisions made at the meetings. According to USDA press reports, the significant progress included sanitary and phytosanitary issues, and Mexico’s expedited removal of barriers to U.S. beef following the single case of BSE. NCBA is pleased with this progress, but will continue to fight for the removal of long-standing anti-dumping tariffs. Although the tariff on all North American beef trade has been zero since January 1, 1994, Mexico alleged in mid-1997 that beef, beef variety meats, and cattle entering Mexico were being dumped. Even after a NAFTA panel decision disagreed with this claim, these have tariffs continued for more than four years.

World Trade: This Wednesday, May 26th, U.S. officials held a public briefing in Washington, D.C. regarding the current status of the World Trade Organization (WTO) negotiations.  This week, negotiators from around the world are in Brussels for more discussions.  At this point we are at a critical juncture to move these negotiations forward, especially in agriculture. We hope to see significant progress over the next couple of months.

Last Ministerial Meeting on September 2003 in Cancun, Mexico failed to produce a framework agreement and negotiators did not have a consensus on agriculture.  Following the Cancun Ministerial meeting, U.S. trade officials reasserted the U.S. commitment to the WTO process and met with most WTO members; listening to their concerns and encouraging them to come to the table with proposals of their own and continue to work this year. 

Most recently, key players met at the Ministerial level in side meetings during the Organization for Economic Cooperation and Development (OECD) meeting in Paris last week. A letter assured the EC’s commitment to eliminate export subsidies and other forms of export competition.  This was seen as moving the negotiations further in the right direction. Negotiations on the key issues of agriculture, the Singapore issues, non-agriculture market access, and development will be held over the next two months to hopefully break the impasse on these issues and come to an agreement. Agriculture is one of the key issues, and market access issues are most critical for cattle producers.

Central American Trade:  This Friday marks the signing of the U.S.-Central American FTA (CAFTA). NCBA will be in attendance.  One of the strongest aspects of the CAFTA agreement is the recognition of the fact that the vast majority of our exports are a premium grain-fed product that will not compete price-wise with Central American grass fed beef. The CAFTA agreement’s immediate duty-free access for U.S. prime and choice beef (defined as "high quality") into Central American hotels and restaurants is significant from NCBA’s perspective. Also noteworthy is the elimination of all tariffs on U.S. beef by a date certain, which in this case is 15 years. Likewise, NCBA is pleased with the market access provisions that were negotiated for U.S. beef in the U.S.-Dominican Republic FTA.  The addition of the Dominican Republic to CAFTA increases export opportunities for U.S. beef producers.  NCBA looks forward to the Administration moving these two agreements forward at the same time. As has been the case for many years, we will continue to work with Central American beef producers to protect our herds against foreign animal diseases.

Dietary Guidelines Meeting:  NCBA attended meetings of the Dietary Guidelines Advisory Committee this week.  This should have been to be their last meeting before sending the report to the Secretaries, but the committee has decided they need more time. A fifth meeting is scheduled for August to finalize the report. They will make comments and recommendations on proposed 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 has been an active participant the process and has submitted comments emphasizing the benefits of consuming naturally nutrient-rich foods such as lean beef.

Animal ID:  USDA’s Animal and Plant Health Inspection Service hosted the U.S. Animal Identification Plan (USAIP) communications subcommittee for a meeting to outline communications needs and plans for producer education relating to Animal ID.  USDA Secretary Ann Veneman announced April 27 that the agency would be developing and implementing a National Animal Identification System.  NCBA continues to believe that an animal ID system coordinated by the private sector would better meet the needs of cattle producers.    

Conservation Day in California:  NCBA and the Natural Resources Conservation Service (NRCS) are hosting four Conservation Workshops for both producers and interested members of the press. The kick-off Conservation Workshop will be held on Thursday, June 10th at 8:30 am at the Work Family Ranch, in San Miguel, CA. The Works are the national winners of the 2003 Environmental Stewardship Awards Program, and will be demonstrating some of the conservation practices they have implemented on their land.  Local NRCS officials will also be available to address participation in the Cost-Share programs available through the Farm Bill. This is an excellent opportunity for producers and the public to better familiarize themselves with the advancements ranchers are taking to integrate working lands conservation practices within their operations. If you are a producer or member of the press who would like to participate in this exceptional opportunity for hands-on conservation training, please contact NCBA’s Associate Director of Environmental Affairs, Megan Tipton at 202-347-0228 or mtipton@beef.org.

Top Trade Official in Montana: If you live in the Montana areas, mark your calendars! Al Johnson, the chief agriculture trade negotiator for the U.S., is visiting the area of Lewistown, Montana to attend the Montana Stockgrowers Association (MSGA) Mid-Year Meeting June 10th and 11th for days of activities with cattle producers and the press. NCBA and the MSGA are working with the office of the U.S. Trade Representative on this exciting event. Johnson is scheduled to attend meetings with MSGA, tour the 2004 Montana Junior Beef Expo, and head out for a work-day excursion to learn about the workings of a cattle operation. For more information, contact Michelle Reinke at 202-347-0228.

USDA Surveillance System:  USDA is scheduled to begin it's increased surveillance program June 1.  The USDA announced in mid March that it will test over 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 participated in meetings this week to discuss implementation of the new plan and sent memos to the USDA on this issue.

2002 Farm Bill: This month marks the two year anniversary of the 2002 Farm Bill, which was signed by President Bush May 13, 2002. While the Farm Bill allotted an unprecedented amount for conservation programs for cattle producers, there are concerns with the implementation. The various programs that have specific implementation concerns for producer groups include 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). NCBA continues to meet with government officials to discuss the implementation, funding levels, and eligibility concerns with EQIP and other conservation programs. Currently, some applicants are having trouble qualifying for the funds, and NCBA and other livestock groups are asking for a formal, concrete list of reasons for exclusion from funding. USDA has created a complete list of first and second year accomplishments is located at www.usda.gov.

Congressional Schedule:  Congress is out of session this week for Memorial Day recess.  The House and Senate are expected to reconvene Tuesday, June 1.

Media Contact:

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

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For more information, please visit our web site at hill.beef.org.

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