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). Please feel free to reprint.

ELECTION DAY COUNTDOWN - Make Sure Your Voice is Heard NEXT TUESDAY!:  Election Day 2006 is Tuesday, November 7.  This mid-term election has created many close races, and control of the U.S. Senate and House of Representatives and many state legislatures is up for grabs. This could mean big changes that could impact your community and your business.  If you’re undecided about candidates in your state, research their background and voting record, and urge friends, family and neighbors to get out and vote for the candidates that understand agriculture, support our livelihood, and will stand up for cattle producers in Washington, D.C. NCBA members can visit http://capwiz.com/beefusa to find out more about the candidates in their district.  Click on the “Election” section.  If you have any questions about which candidates are best for the cattle industry, do not hesitate to contact our D.C. office at 202-347-0228. 

Superfund to Take Spotlight After Elections:  The Superfund legislation being supported by NCBA and 226 members of Congress (H.R. 4341 and S. 3681) will expire at the end of the 109th Congressional session if no action is taken before they adjourn.  To make the most of the time we have left in the 109th Congress, now is the time for cattlemen to step-up communications on this issue.  “It’s crucial that your Senators and Representatives understand this issue and how it could affect our nation’s family farms and ranches,” says Jay Truitt, NCBA’s vice president of government affairs.  “I know we’ve been saying this all along, but now is the time to tell Congress that manure shouldn’t be subject to Superfund regulations.  The clock is ticking, and we want to get this done before we’re out of time.”

These bills are aimed at clarifying that manure is not a hazardous substance, pollutant or contaminant under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA/Superfund regulations).  Without Congressional clarification, every farm and ranch operation in the country that spreads manure potentially could be declared a Superfund site and subject to penalties and enormous clean-up costs.    

In the Senate, S. 3681 currently has 36 co-sponsors.  In the House, H.R. 4341 currently has 190 co-sponsors!  Visit http://capwiz.com/beefusa to see a full list of co-sponsors.  If your Senator or Representative has not yet signed on as a supporter, send a message to them asking them to sign on and communicate to them about the importance of this issue!

Peru and Colombia Trade Update:  Peru and Colombia have quietly and finally fulfilled their long-standing commitment to re-open their borders to all U.S. beef and beef products. Earlier this year, both Colombia and Peru pledged in writing via official side-letters to both the Colombia and Peru free trade agreements to a reopening of their beef markets based upon World Organization for Animal Health (OIE) controlled risk guidelines. Both countries then refused to fulfill their commitment based upon a flawed risk assessment by Colombia.

But, as of now, all U.S. beef and beef products (from cattle of all ages) can be shipped to both Colombia and Peru. The re-opening with Peru went into effect on October 25, while Colombia finally re-opened fully October 31. 

NCBA is pleased to see these long-standing barriers have finally been lifted, and appreciates efforts by U.S. trade officials to make this finally happen. Unfortunately, thanks to excessive tariffs on our U.S. products, the border reopening does not mean big business for U.S. cattle producers. Right now Colombia has tariffs of around 80 percent on our beef, while Peru's tariff rate on most products is 30 percent. However, these rates are not paid by South American beef exporters via their regional MERCOSUR trade agreement with Colombia and Peru.

Now that Colombia and Peru have fulfilled their commitment, NCBA will urge for the reduction of these tariffs on U.S. beef via passage of the Colombia and Peru free trade agreements. These extremely well negotiated agreements reduce – and eventually eliminate – all tariffs for our beef, giving U.S. producers the ability to compete aggressively against Argentinean and Brazilian beef in these markets.

Korean Trade:  The first shipment of beef in almost three years arrived in South Korea this week and is awaiting customs clearance. The USDA, in a letter to South Korean officials dated September 22, said "critical issues remain unresolved before we can consider the recent announcement of the opening of the Korean beef market to be a commercially-viable agreement."  South Korea was the third largest foreign market for U.S. beef until December 2003, when the USDA announced finding the first case of BSE.

On September 8 of this year, South Korea agreed to ease its nearly three-year-old ban on U.S. beef, but imposed strict conditions that allowed only boneless cuts to be shipped. The uncertainty of what South Korea may consider to be “risky” bovine material, combined with concerns over what the country will do it finds a bone fragment, have kept trade from resuming, USDA officials said this week.

U.S. Meat Exporters in Mexico: The U.S. Meat Export Federation (USMEF) is holding its Strategic Planning and Marketing Conference in Cancun, Mexico this week. Mexico is currently the top export market for U.S. beef and beef products, the reason USMEF chose this location for their meeting this year.  "At the rate we are going this year, our U.S. beef exports to Mexico could reach a value of over $1.1 billion," says NCBA’s Chief Economist Gregg Doud. "This would surpass the value of this market in 2003 (at pre-BSE levels) of $874 million, and the record $893 million exported in 2005!"  This tremendous growth exemplifies the current strength of the Mexican economy.

Mandatory Price Reporting: The U.S. Department of Agriculture announced October 31 that it is currently developing a new regulation for Livestock Mandatory Reporting (LMR). The USDA says "This new regulation must be issued prior to the resumption of the program on a mandatory basis. The statutory authority of the Livestock Mandatory Reporting Act of 1999 ended in September 2005. At that time, USDA’s Agricultural Marketing Service (AMS) requested each packer that was required to report under the act to voluntarily submit market information. Due to the high percentage of voluntary participation by the packers, USDA has continued to publish most reports, except for imported boxed lamb cuts and slaughter cow reports."

NCBA urges companies to continue to participate in LMR on a voluntary basis. "This reporting process is important to U.S. cattle ranchers, and since the mandatory law expired last fall, we have been working diligently to urge its renewal," explains NCBA President Mike John. This requires meat packers to report to the AMS daily price and volume info on negotiated and non-negotiated purchases of cattle and boxed-beef sales. In addition, companies are also required to report beef exports and imports.

CME to Offer Electronic Options Trading on Livestock Futures:  The Chicago Mercantile Exchange (CME) announced on November 1 that it will launch electronic trading of options on CME Live Cattle and Lean Hog futures beginning December 4. The new functionality will provide a direct trading opportunity for traders who specialize in trading price volatility and for hedgers who are interested in purchasing price protection.

The new electronic livestock options will include a market marker program with the ability for mass quoting of options prices. Trading will take place during the same hours as the livestock options traded in open outcry for side-by-side trading from 9:05 a.m. to 1:02 p.m. for Live Cattle options Chicago time.

Electronically traded options on livestock futures enable customers to receive immediate trade execution notification. The functionality provides automated bookkeeping with instantaneous clearing account balances, market transparency and request for quotes.  “I think producers will find this to be a useful enhancement to an important risk management tool,” says Mike John, NCBA president and Missouri cattle producer.  For more information, visit www.cme.com.

ESAP’s 2007 Application Information Now Available!  The 17th Annual Environmental Stewardship Award Program (ESAP) has officially opened its nomination season for 2007. Seven regional winners and one national award winner are honored each year for their commitment to protecting the environment and improving fish and wildlife habitats while operating profitable cattle operations. ESAP was established in 1991 by NCBA and is made possible by the generous support of Dow AgroSciences, LLC, and USDA’s Natural Resources Conservation Service (NRCS). 

Nominations can be submitted by any organization, group, or individual on behalf of a U.S. cattle producer, and applications are due March 17, 2007.  Go to www.beefusa.org/esap or contact NCBA’s Washington D.C. office to request a copy of the application at 202-347-0228. 

Carcass Disposal: The U.S. Department of Agriculture has announced they will be co-sponsoring a National Symposium on Carcass Disposal December 4-7.  Agricultural officials and emergency first-responders will meet to discuss emergency and large-volume livestock carcass disposal. The USDA says, “In the last decade, a number of animal disease outbreaks worldwide have created a need for those charged with protecting animal health to understand the dynamics of carcass disposal. The foot-and-mouth disease outbreak in the United Kingdom, chronic wasting disease in North America, and the avian influenza outbreaks in Asia have all presented unique challenges in regards to large volume carcass disposal during a crisis."

The symposium will bring together researchers, government officials and first responders to "learn, discuss and evaluate issues and to research projects, policies and response options related to animal carcass disposal." It is open to the public, with a registration fee of $275 required for all attendees. To register, visit www.composting.org or contact the Knox-Lincoln County Office, University of Maine Cooperative Extension’s Jeanne Pipicello at (207) 832-0343.

Congressional Schedule:  Congress has recessed to work on the campaign trail prior to the November 7 mid-term elections.  Congress is expected to reconvene November 13.

Plan NOW for 2007 Cattle Industry Convention: Preparations are already underway for the 2007 Cattle Industry Annual Convention & Trade Show, January 31-February 3 in Nashville, Tennessee. This annual event brings together thousands of cattle producers from all across the nation. NCBA members will have discussions regarding key policy issues at a variety of committee meetings and issue forums, and participate in events supporting NCBA’s Political Action Committee (NCBA-PAC) and honoring the winners of our Environmental Stewardship Award Program (ESAP). NCBA staff and leadership look forward to seeing y'all in Nashville! Make your travel plans TODAY. Go to www.beefusa.org for registration information and more details!

NCBA-PAC Preparing for Convention Events:  NCBA has planned a wide array of events at our upcoming Cattle Industry Annual Convention and Trade Show, January 31-February 3 in Nashville.  Show your support for NCBA-PAC/PEF, help us support political candidates that support cattlemen, and have fun in Nashville all at the same time! 

• NCBA-PAC/PEF Silent Auction
  Wednesday, January 31st – Saturday, February 3rd 
  Trade Show Booth #2330
  
  Support your PAC while bidding on a wide variety of unique items from all over the country.  Past items have included tropical vacations, wild game hunts, handmade leather goods, and framed western prints.  Whether you are looking for special gifts for friends and family or that perfect piece for your home, you are sure to find it at the NCBA-PAC/PEF Silent Auction.  If you have an item that you would like to donate to the Silent Auction please contact Erin Vincent at 202-347-0228 or evincent@beef.org.
  
• Second Annual All Breed Bull Auction & Cattlemen’s Auctioneer Championship Contest
  Wednesday, January 31, 7:30-8:30pm
  Trade Show Welcome Reception Booth #1270
  
  Held in conjunction with the Trade Show Welcome Reception, the NCBA-PAC/PEF all-breed bull auction will feature bulls, semen and sale credits from some of the nation’s best breeders.  Attendees will be provided with Pedigree, Ultra Sound data and E.P.D. Information (where applicable), for all lots.  Proceeds from the auction will benefit NCBA-PAC/PEF.  If you have any questions or would like to make a donation to the NCBA-PAC/PEF Bull Auction, please contact Erin Vincent at 202-347-0228 or evincent@beef.org. 
  
  This year’s auction will also play host to the 1st Annual Cattlemen’s Auctioneer Championship Contest featuring some of the nation’s best auctioneering talent vying for the title of Champion Auctioneer!  To nominate your favorite auctioneer please contact Clay Edwards at 303-850-3380 or cedwards@beef.org.
  
• PAC/PEF Night at the Wildhorse Saloon with Tracy Byrd
  Friday, February 2; 7:00pm-11:00pm
  The Wildhorse Saloon – Downtown Nashville (transportation provided)
  Sponsored by Fort Dodge Animal Health
  Ticket Price: $75 per adult / $35 per child under the age of 12
  
  Join us in the heart of Music City, just blocks from famous Music Row.  The Wildhorse Saloon, Nashville’s #1 destination for dining and entertainment features a famous dance floor often seen live on Country Music Television, and award winning cuisine.  Buses will provide transportation to and from all Convention hotels to downtown Nashville where we have reserved the entire club for the evening!  Don’t forget to come hungry; the Wildhorse Saloon will serve a barbeque brisket buffet dinner with their award winning barbeque sauce that is guaranteed to make your taste buds break into a two step!  After dinner, hit the dance floor with one of country music’s best loved artists, Tracy Byrd. 

For more information on NCBA’s upcoming PAC events, contact Erin Vincent in NCBA’s Washington office at 202-347-0228 or evincent@beef.org.

Media Contact:
Tanya Augustson Camarra or Karen Batra at 202-347-0228, tacamarra@beef.org or kbatra@beef.org.