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).

NCBA Testifies on WTO Negotiations: Iowa cattle producer and NCBA past-president Wythe Willey testified before the House Ag Committee Wednesday, November 2 at a hearing to review agricultural negotiations in the Doha Development Round.  In his testimony, Willey urged the importance of strong U.S. leadership as we enter a critical phase in the multilateral Doha Round of WTO negotiations at the upcoming Sixth World Trade Organization (WTO) Ministerial Conference in Hong Kong, December 13-18. 
 
“The goal of U.S. agricultural trade policy should be to make our product as competitive as possible in the world market.  Increased market access through tariff reduction is the core mechanism by which U.S. cattle producers can thrive in the global marketplace,” says Willey.  “For our industry, this ultimately depends on the percentage of tariff reductions in the agreement, since we receive no domestic supports or export subsidies.”  U.S. cattle producers want trade negotiators to break down barriers to U.S. beef and create increased global market access opportunities through tariff reduction. Currently, Japan’s bound tariff on beef is 50 percent; Korea’s is currently 40 percent; and the European Union’s is 57 percent. 

U.S. Department of Agriculture Secretary Mike Johanns and U.S. Trade Representative Rob Portman also testified on the first panel and expressed strong support for opening new export markets through the WTO. “Expanded trade is critical to the future of agriculture in this country,” testified Secretary Johanns, “And we will not settle for a package that does not increase real market access. To be frank, a new global pact is in jeopardy unless Europe shows still more flexibility.”

NCBA supports the U.S. proposal for WTO Agriculture Negotiations that could potentially reduce such bound tariffs to around 7.5 to 12.5 percent. Currently, the U.S. proposal is the only market access proposal that meets our criteria. For more information on the U.S. Proposal for WTO Agriculture Negotiations go to: www.ustr.gov; for witness transcripts from the hearing go to: http://agriculture.house.gov/hearings/statements.html

Japan’s FSC Recommends Resumption of U.S. Beef Trade:  The Japanese Food Safety Commission (FSC) approved the recommendation of the Prion Subcommittee that U.S. beef imports should resume.  Following an announcement by the FSC November 2, Japan began a 28-day public comment period as part of the trade resumption process.

Following the comment period, the FSC will have up to one week to review the public feedback received.  At the conclusion of this review, the FSC will submit its final recommendation to the Japanese Ministry of Health, Labor and Welfare and the Ministry of Agriculture, Forestry and Fisheries (MAFF).  The recommendation will then be subject to regulatory and possibly legislative review.  Once these processes are complete, the framework agreement for the resumption of U.S. beef trade with Japan finalized in October 2004 will be revisited as a final check, and U.S. beef exports to Japan should resume shortly thereafter. NCBA has posted more information regarding the Japanese trade issue, including a timeline of events, fact sheet, and press statements, on the web at http://hill.beef.org/japan. 

“Snapback” Provision a Concern in Resuming Exports to Japan:  As the process of reopening the Japanese market to U.S. beef continues, NCBA is concerned the reintroduction of U.S. beef will undoubtedly trigger Japan’s “snapback” or volume safeguard provision. Once triggered, Japan’s tariff on all beef imports will automatically be kicked up to its 50 percent bound rate for the remainder of Japan’s fiscal year, ending March 31. The fact that the total volume of Japanese beef imports will still be significantly below 2003 levels will be irrelevant. 

In House testimony this week, U.S. Department of Agriculture Secretary Mike Johanns said trade barriers such as this remain a top priority. “Clearly, the most difficult cases have involved access to Asian markets, particularly Japan, for U.S. beef due to BSE. We must insist that other nations follow science-based, internationally recognized guidelines for trade. Nations that continue to use unjustified safety regulations as an excuse to disrupt trade should expect the United States to defend its interests.”

NCBA is asking that Congress and U.S. negotiators seek any and all remedies in the WTO that might move Japan to rescind this obstruction of trade.

EPA Announces CAFO Rule Extension:  In good news for cattle producers, the EPA announced they will extend the compliance deadline for their water quality permitting regulations on large-scale ag operations.  The announcement appeared in the October 31 Federal Register.  The original permit application date was February 13, 2006 for CAFO’s under the 2003 rule.  New compliance dates will also be set for nutrient management plans.  The agency says it hopes to announce the new compliance dates in February.

Appropriations: The Senate approved the Fiscal year 2006 Ag Appropriations Conference report today, November 3, by a vote of 81-18.  The package is now on its way to the President for his signature.  Of interest to cattlemen, funding for implementation of the current mandatory country-of-origin labeling program has been delayed for two years (until 2008) on all commodities except fish and seafood, which is already in place.  NCBA says the delay creates the opportunity for industry and government to work together on a better country-of-origin labeling program within the 2007 Farm Bill. 

Tax Reform: This Tuesday, November 1, the President’s Advisory Council on Federal Tax Reform delivered formal tax reform recommendations to the Secretary of the Treasury. NCBA has participated in ongoing meetings of this panel for more than a year, examining the problems created by the U.S. federal tax code and is exploring reform proposals that would deliver a better U.S. tax system than the one we have today. A variety of tax reform proposals have been debated, and all recommendations were compiled into the final report, available online at www.taxreformpanel.gov. NCBA will continue to monitor actions to assure the best possible tax reform policies for U.S. cattle producers.

USDA Farm Bill Forums:  USDA hosted multiple farm bill forums this week across the country with key agency officials leading the discussions with stakeholders in Austin Texas, Charlottesville, Va., Atlanta, Ga., and Spokane, Wash.  USDA is conducting the public forums to give ranchers and farmers a voice in developing the 2007 farm bill. NCBA producer-members are encouraged to attend a local forum and participate in these important discussions. 
Future forums are scheduled for:

• Nov. 4, Springfield, Mo., 2:00 p.m.-5:00 p.m. (CDT), Ozark Empire Fairgrounds
  (Hosted by Agriculture Secretary Mike Johanns)
• Nov. 4, Bozeman, Mont., 2:00 p.m.-5:00 p.m. (MDT), Hager Auditorium, Museum of the Rockies (Hosted by USDA Deputy Secretary Chuck Conner)
• Nov. 8, Mesquite, Nev., 8:00 a.m.-11:00 a.m. (PDT), CasaBlanca Hotel
  (Hosted by USDA Natural Resources and Environment Under Secretary Mark Rey)
• Nov. 12, Kona, Hawaii, 11:00 a.m.-2:00 p.m. (HST), Sheraton Keauhou Hotel
  (Hosted by USDA Rural Development Under Secretary Tom Dorr and Deputy Under Secretary for Natural Resources and Environment Merlyn Carlson)
• Nov. 16, New Brunswick, N.J., 9:30 a.m.-12:30 p.m. (EDT), Hilton New Brunswick
  (Hosted by USDA Rural Development Under Secretary Tom Dorr)

Visit www.usda.gov/farmbill for more information. 

USMEF Meetings:  NCBA’s Chief Economist Gregg Doud is in San Antonio, Texas for the U.S. Meat Export Federation’s Annual Board of Director’s Strategic Planning and Marketing Conference, November 2-4, 2005. Keynote speaker Erik Peterson of the Center for Strategic and International Studies (CSIS) told participants of the driving forces of change that will transform the planet and analyzed what the world would look like in 2025. NCBA participated in sessions regarding how to continue building our international markets for U.S. beef exports.

NCBA-PAC Team Penning: NCBA’s Political Action Committee/Political Education Fund will be hosting a team penning competition upcoming Cattle Industry Convention & Trade Show in Denver this February. NCBA Members are encouraged to ride in the team penning - all skill levels are welcome!  This exciting evening event will be held on Friday, February 3rd beginning at 6:30pm.  It includes the team penning finals and a delicious steak fry dinner followed by a barn dance with live entertainment by James Lann and Branded, a talented up-and-coming country band from Texas.  The event is sponsored by Fort Dodge Animal Health. Space is limited so don’t forget to order tickets when pre-registering for the 2006 Convention.  If you are interested in riding please contact Erin Vincent at 202-347-0228 or evincent@beef.org.

NCBA-PAC/PEF to Hold First Annual All-Breed Bull Auction:  Don’t miss your chance to bid on some of the best beef genetics and seed stock in the nation while supporting NCBA-PAC.  In conjunction with the 2006 Cattle Industry Convention & Trade Show, NCBA’s PAC/PEF will host a bull sale during the “exclusive trade show hours” on Thursday, February 2 at 2:00pm next to booth #2330. Attendees will be provided a detailed sale catalogue including pedigree, ultrasound data, and EPD information for each lot (where applicable). Donations of seedstock and sale credits will be accepted until Friday, January 13, 2006. Offerings to date include contributions from: Marshall Cattle Company, Burlington, Colo.; Aristocrat Angus Ranch, Platteville, Colo.; Three Trees Ranch, Sharpsburg, Ga.; Fink Beef Genetics, Manhattan, Kan.; Gardiner Angus Ranch, Ashland, Kan.; Lyons Ranch, Manhattan, Kan; and Ekker Herefords, Vernon, Utah. To make a donation please contact Erin Vincent at 202-347-0228 or evincent@beef.org. 

BSE Surveillance:  USDA’s Enhanced BSE Surveillance Program reached its half million mark, testing over half million high-risk animals for BSE since June 1, 2004.  As of today, the program has tested 510,234 targeted animals at highest risk for BSE and has found only one confirmed case, evidence that our firewalls are working and the prevalence of this disease in the U.S. 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.

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