2007 CCC Archive
Cattlemen's Capitol Concerns
November 29, 2007
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 in full or in part. If you’d like to include NCBA’s logo, contact us at 202-347-0228.
Cattlemen Amplify Opposition to Energy Bill Options: When Congress returns to Washington next week, energy legislation will likely take the spotlight. With the Senate shelving the Farm Bill for the time being, cattle producers are again focused on arguing for a market-based approach to renewable fuels policy while discussions continue regarding an increase in the mandate for feed grain-based ethanol.
In June of this year, the U.S. Senate passed H.R. 6, the CLEAN Energy Act of 2007, which mandates production of 36 billion gallons of renewable fuels by 2022 with 15 billion gallons of grain-based fuel produced by 2015. The House version, passed later in the summer, contains no increase to the Renewable Fuel Standard (RFS).
However, House and Senate leaders are reportedly discussing alternative language that would result in a bill requiring 20.5 billion gallons of renewable fuels by 2015, with 15 billion gallons produced from grains and 5.5 billion gallons of advanced biofuels.
“If these are the new numbers being kicked around on Capitol Hill, they don’t really represent any improvement to the existing Senate language,” says Jason Jordan, NCBA manager of legislative affairs. “For cattlemen, any increase to the RFS mandate would be too much because renewable fuels production should be market driven, not government driven.”
The current RFS calls for the production of 7.5 billion gallons by 2012. NCBA member policy is specifically opposed to increasing the government mandate.
“The uncertainty of year-to-year corn crop yields creates a concern for everyone – not just livestock feeders,” says NCBA Chief Economist Gregg Doud. “If the government mandates an unrealistic amount of grain-based ethanol production, what happens if corn supplies are not sufficient to meet the food, feed and fuel demand? Everyone would suffer from this short-sighted approach to energy policy.”
NCBA will be urging for a final package that does not include an increased RFS. The existing RFS, enacted in 2005 and extending through 2012, has already spurred rapid development in the renewable fuels industry. "Cattlemen are simply asking for the ability to compete for a bushel of corn on a level playing field,” says Doud. “Subsidized ethanol production and mandated demand through an inflated RFS – when the infrastructure is just now developing – are a recipe for disaster when there's a short corn crop."
Canadian Trade Update: USDA’s final rule to amend the BSE minimal risk region rule (Minimal Risk Rule II, or MRRII) became effective last Monday, November 19, 2007. This rule expands trade of cattle and beef products - including cattle 30 months of age or older – from Canada into the United States.
At the end of last week, only 362 head of over-30-month cattle had been imported from Canada. “We could see the pace increase as ranchers become more familiar with the paperwork requirements, but the flow of cattle is still expected to be slow,” said NCBA CEO Terry Stokes. “We have, however, seen an increase in feeder cattle imports from Canada during the last few months. But they were already coming regardless of whether or not Rule II took effect. This is due to the severe shortage of feedgrains north of the border, not the change in the import rule.”
NCBA maintains that U.S. cattlemen will see long term benefits from the expanded trade with Canada. “We are likely to see is an increase in our opportunity to export breeding cattle to Mexico in the very near future,” says NCBA Chief Economist Gregg Doud. “Mexico’s policy on U.S. imports generally mirrors the U.S.-Canada relationship, so our ability to export breeding stock and beef from older cattle has been very limited.”
Troops Rallying in Support of Peru Trade Agreement: The Senate must vote on the Peru Trade Promotion Agreement (PTPA) in the coming weeks. NCBA expects this vote to happen sometime during the week of December 10th. This gives cattle producers less than two weeks to contact their Senators and urge support for this important and lucrative trade agreement.
For U.S. cattlemen, the PTPA is one of the best-negotiated free trade agreements to date, providing for immediate duty-free access for U.S. prime and choice beef. NCBA is working with a coalition of agriculture industry groups in support of this agreement which will give U.S. cattle producers the ability to compete aggressively against Argentinean and Brazilian beef in the Peruvian market.
Under the Peru Trade Promotion Agreement:
- U.S. choice and prime beef will have immediate duty-free access.
- All tariff rate quotas will be eliminated within 12 years.
- Peru has committed to recognize the U.S. meat inspection system as equivalent to its own, thereby allowing imports from facilities approved by USDA-FSIS.
- Peru has committed in writing to specific Sanitary and Phytosanitary (SPS) terms.
Beef comprises less than eight percent of Peru’s total agriculture gross domestic product, making it an exceptional export growth opportunity for U.S. beef. In 2003, Peru was a $6 million export market for U.S. beef products. Improved access via PTPA could amount to roughly $15 million a year, about half the value of Peru's current total beef imports.
Tell Your Senators to Vote YES on Peru! Urge your Senators to vote “yes” to approve the Peru Trade Promotion Agreement. Cattle producers can send a letter to their Senators by going to http://capwiz.com/beefusa/home, or NCBA members can contact Elizabeth Bostdorff, manager of policy affiliate relations in NCBA’s Washington, D.C. office for more information on this agreement and for assistance in contacting their Senators.
Cattlemen Seeking Disaster Assistance Extension: NCBA is urging Senate leaders to extend the eligibility date for disaster assistance coverage to include producers who faced hardships after February 2007. Fourteen Senators sent a letter on November 16th urging this extension to Sens. Robert Byrd (D-W.V.), Herb Kohl (D-Wisc.), Thad Cochran (R-Miss.) and Robert Bennett (R-Utah). Byrd chairs the Senate Appropriations Committee; Kohl chairs the Ag Appropriations Subcommittee, and Cochran and Bennett are the respective ranking members. The letter asks the Committee to extend the eligibility date for ag disaster aid programs, specifically the Crop Disaster Program, the Livestock Compensation Program (LCP) and Livestock Indemnity Program (LIP) to December 31, 2007.
In the emergency supplemental bill passed earlier this year, Congress included agriculture disaster assistance to provide much-needed aid to livestock producers who were dealt a blow by floods, wildfires, drought and other natural disasters. But the cut-off date for eligibility is February 28, 2007, which leaves out many producers who have experienced losses this year. A similar request has been made to appropriators in the U.S. House of Representatives.
“Unfortunately, this deadline leaves many agriculture producers who have experienced economic losses during this turbulent year without a safety net,” wrote the Senators. “Such timely assistance makes a significant difference in the lives of farmers, ranchers, and rural communities.”
Cattlemen Still Fighting Hurtful Farm Bill Amendments: Congress is on recess until December 3rd, but that doesn’t mean that Farm Bill discussions are on hold. Cattlemen across the country can continue to reach out to their Senators and talk to them about the negative impacts of some potential Farm Bill amendments.
Already part of the Senate bill, a ban on packer ownership threatens many of the marketing alliances cattlemen have worked hard to build. Before the Senate completes their bill, further damaging amendments could be added. These include:
- The Grassley amendment, which would subject producers to even more oversight and regulation by establishing a full-time special counsel to prosecute the agricultural sector.
- The Enzi captive supply amendment, which would outlaw the ability for cattle producers to engage in confidential, one-on-one business deals with prospective buyers; require at least one blind bid; and limit the number of cattle within a contract.
- The Harkin competitive injury amendment, which will base lawsuits under the Packers and Stockyards program on a matter of “fairness,” which is not defined.
- The Domenici RFS amendment, which would mandate an increase of the Renewable Fuel Standard (RFS) as part of the Farm Bill.
Producers are encouraged to call, email, or write their Senators and urge them to oppose these amendments. NCBA members can contact Elizabeth Bostdorff, NCBA’s manager of policy affiliate relations in NCBA’s Washington, D.C. office for more information on these Farm Bill issues and for assistance in contacting their Senators.
USDA Proposes Naturally Raised Marketing Claim Standard: The USDA announced November 27th a proposed voluntary standard regarding a naturally raised marketing claim for livestock and meat. NCBA will be preparing comments for submission by the January 28, 2008 deadline.
Increasingly, livestock and meat producers are using production or processing claims to distinguish their products in the marketplace. AMS, through its voluntary certification and audit programs, verifies the accuracy of these claims. The proposed standard will establish the minimum requirements for those producers who choose to operate a USDA verified program involving a naturally raised claim. The naturally raised marketing claim also will be a voluntary program. More information about the USDA AMS Naturally Raised Marketing Claims Program is posted at http://www.ams.usda.gov/lsg/stand/naturalclaim.htm.
Meet Your NCBA Field Representative! Dan McCarty is NCBA’s Region V field representative. If you are a cattle producer in the Northwest, you have probably met Dan or seen him at a recent affiliate meeting.
“Dan is extremely passionate about cattle producers and the cattle industry, and that shows,” says Elizabeth Bostdorff, NCBA’s manager of policy affiliate relations. “I am always amazed when I see his schedule and see that during one week he can be in Montana, Oregon, Idaho, Colorado, Wyoming and Washington.”
NCBA’s field reps are able to be out in the countryside attending state and local meetings, cattle shows and sales, fairs and other events promoting the work that NCBA is doing on behalf of cattlemen nationwide. The field reps also serve as a great resource to NCBA’s Denver and Washington-based staffs by knowing what issues are concerning NCBA members in different parts of the country.
“Dan believes in NCBA and loves working with our Northwest ranching families,” says Bostdorff. “He comes from a ranching family and our members know that Dan has their best interest at heart because he’s a cattleman too.” Based in Colorado, Dan is a fourth generation rancher and helps run a small family purebred operation in western Colorado. His wife is a large animal veterinarian who graduated from Colorado State University and practices on Colorado's Western Slope.
NCBA Rolls Out Newest Member Benefit With Cabela’s: Just in time for holiday gift shopping - NCBA has announced a member benefit program with Cabela’s – the world’s foremost outfitter of hunting, fishing, and outdoor gear. NCBA members can now receive 15 percent off of all Cabela’s gift cards purchased through NCBA’s Web site, www.beefusa.org. The gift cards are redeemable wherever Cabela’s conducts business - whether in-store, online, or through the Cabela’s catalog.
“Whether it’s for holiday shopping or the hunting season, this program with Cabela’s is a tangible benefit that cattlemen can really get excited about,” said Steve Foglesong, a cattleman from Astoria, Ill., who serves as NCBA Policy Division chairman and Membership Committee chair. “When you look at the range of products Cabela’s has to offer cattlemen and their families, this discount can really add up in a hurry.”
USDA Staff News: USDA announced this week that USDA Chief Economist Dr. Keith Collins will retire effective January 3, 2008. Collins served as USDA Chief Economist for the past 15 years overseeing USDA's program of market forecasts and projections. Deputy Chief Economist Dr. Joseph Glauber will serve as Acting Chief Economist beginning in mid-December.
"Over the coming weeks, there will be many in agriculture trying to put into words the integrity, ability, character and influence that Dr. Collins demonstrated throughout his career. They won't do him justice. For those who haven't had the pleasure of learning from him, he is the Michael Jordan of his profession. He is the standard by which the next generation of agricultural economists will be measured," says NCBA Chief Economist Gregg Doud. "Fortunately, in Dr. Glauber, agriculture will have one of the best minds within the U.S. government taking the helm. Most folks understand that agricultural commodity markets and programs are unique in their global complexity. No one understands these complexities better than Dr. Glauber."
USDA also announced this week that Chris Connelly has been named Director of Communications replacing Terri Teuber Moore, who was named the Deputy Director of Communications for Policy and Planning at the White House. Connelly previously served as Chief of Staff and Communications Director for the Office of Representative Jo Ann Davis (R-Va.).
Codex Meetings: NCBA’s Director of Food Policy Phyllis Marquitz is in Queensland, Australia November 26-30 for meetings of the Codex Committee on Food Import and Export Inspection and Certification Systems. Codex is the international body that sets food safety standards. More information is posted at http://www.codexalimentarius.net/web/current.jsp.
2008 Cattle Industry Annual Convention, February 6-9!: The 2008 Cattle Industry Annual Convention and Trade Show will be held February 6-9 in Reno, Nevada. The meeting will feature joint and individual meetings by NCBA, Cattlemen's Beef Promotion & Research Board, American National CattleWomen, Inc., Cattle-Fax and National Cattlemen's Foundation.
At the NCBA Trade Show, more than 250 companies will offer attendees a chance to see the latest products and services while networking with other cattle producers. In addition, many booths will feature giveaways, games and prize drawings. Whether you are looking for farm vehicles, fencing, feed supplies, animal health products or the latest in technology, you'll find it right here under one roof.
Education, information and networking are the cornerstones of Convention. But it's not all business, there will be lots of time to kick back, relax and enjoy your mini-vacation in Reno. Bring your family along! Additional details and schedule updates are posted at http://www.beefusa.org/convcattleindustryannualconventionandncbatradeshow.aspx.
Don't Miss NCBA’s Cattlemen to Cattlemen: On this week’s edition of NCBA’s Cattlemen to Cattlemen airing November 27-December 1, we showcase some of our favorite stories brought to us by Purina Mills. Rod Nulik visits Camp Cooley Ranch in Texas to learn more raising bulls for sale, heifer development and what it takes to make your animals stand out from the competition. Also this week, Todd McCartney visits with Dr. Lee Dickerson from Land O’Lakes Purina Feed at the Long View Animal Nutrition Center in Missouri where we’ll look at how beef cow nutrition can improve profit potential.
On next week’s edition of NCBA’s Cattlemen to Cattlemen airing December 4-8, we showcase some of the 2007 regional winners of the Environmental Stewardship Awards. First, we head to northwest Pennsylvania where we find Paul and Beth Wingard. The Wingards run a 125 acre, intensively managed grazing operation focused on a unique corner of the cattle industry. Then we visit the Dee River Ranch in Alabama where a brother and sister are running their ranch as a team. And finally, we head to Missouri and the Oak Knoll Ranch where stewardship and conservation go hand in hand.
NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. The show airs Tuesdays at 8:30 p.m. and is rebroadcast Wednesdays at 4:30 a.m. and 12:30 p.m., and Saturdays at 10 a.m. All times are Eastern. Make sure YOU tune into NCBA’s Cattlemen to Cattlemen on channel RFD-TV. For more information or to check out past episodes, visit www.cattlementocattlemen.org.
Media Contact: Karen Batra at 202-347-0228 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.