2007 CCC Archive
Cattlemen's Capitol Concerns
November 8, 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.
House Passes Peru Trade Agreement: Export opportunities for American cattle ranchers got a boost this week when the House of Representatives approved the Peru Trade Promotion Agreement (PTPA) by a vote of 285 to 132 today, November 8th.
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. Implementation of the Peru agreement will give U.S. cattle producers the ability to compete aggressively against Argentinean and Brazilian beef in this market.
NCBA is working with a coalition of ag industry groups in support of this agreement, which presents a great opportunity for American agriculture, and especially for beef producers. 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.
“America’s cattlemen rely on our nation’s policymakers to support a pro-trade agenda in order to grow their businesses and help support the U.S. economy,” says Stacey Satterlee, director of legislative affairs for NCBA. “A vote for expanding trade is a vote for American agriculture and small business.”
Peru is only one of several trade agreements waiting for Congressional consideration. “While we are urging swift passage of the Peru agreement in the Senate, we are also looking to Congress to consider the Colombia and Panama Free Trade Agreements,” says Satterlee. “These are well-negotiated agreements and Congress needs to ratify them!”
Trade Ambassador Susan Schwab said, ”The pending agreements will give American farmers, manufacturers, workers, and service providers access to growing markets. For years we have imported nearly all products from Peru, Colombia, and Panama duty-free. Finally, our producers will have the same access to their markets.”
Senate Farm Bill Threatens to Hurt Cattlemen: As the Senate began consideration of their 2007 Farm Bill this week, the objections from cattle producers across the country were heard loud and clear in letters and emails to Senate offices. Just as the ban on packer ownership in the Senate Ag Committee’s bill had cattlemen on edge last month, further damage from other amendments could be done on the Senate floor.
- A Captive Supply provision, being championed by Senator Michael Enzi (R-Wyo.), would outlaw the ability for cattle producers to engage in confidential, one-on-one business deals with prospective buyers. Instead, cattle producers would have to conduct all of their business in open markets with competitors and neighbors looking on, watching, and engaging in the process. The bidding process would also be required to include at least one blind bid. In addition, forward contracts would be prohibited for more than 40 head of cattle and producers would no longer be able to use a basis pricing mechanism.
- The “Grassley-Thune” amendment would interfere in what has always been a free market by subjecting our industry to even more oversight and regulation This amendment, pushed by Senators Charles Grassley (R-Iowa) and John Thune (R-S.D.), establishes a full-time special counsel whose sole purpose is to prosecute the agricultural sector. In addition, this amendment goes against our Constitution by presuming “guilt” and forcing producers and cattle feeders to defend themselves against broad, and possibly unsubstantiated claims in order to prove innocence. It also establishes a task force which would exclude any representation from the cattle industry and would have virtually unlimited authority to investigate marketing transactions including those used in alternative marketing arrangements.
- A Competitive Injury amendment, which could be offered by Senators Tom Harkin (D-Iowa) or Sherrod Brown (D-Ohio), will have unintended consequences by basing lawsuits under the Packers and Stockyards program on a matter of “fairness” which is not defined. The use of fairness as a determining factor is dangerous because each individual has their own definition of what is fair, and these disparities could be used to sue marketing alliances if someone thinks it’s unfair for cattle producers to get paid extra for producing the quality animals that fit the requirements of these marketing programs.
- Renewable Energy-related amendments could be another issue of concern for livestock producers. Some Senators want to mandate and increase the Renewable Fuel Standard (RFS) as part of the Farm Bill. An amendment, championed by Senators Pete Domenici (R-N.M.) and John Thune (R-S.D.), includes language from the Senate energy bill (H.R. 6), which passed June 21st, that would require an increase in the RFS to 36 billion gallons by 2022 creating a defacto mandate of 15 billion gallons for feedgrain based ethanol by 2015.
“Each of these provisions violates one of the founding principles of NCBA which dates back for over a century – limited government involvement,” says NCBA’s Executive Director of Legislative Affairs Colin Woodall. “America’s cattle producers are entrepreneurs and they work hard to produce cattle of the highest possible quality. The free-market system dictates how cattlemen are rewarded for their hard work. If the government intrudes on these business practices, then not only will cattle producers lose, but consumers will lose because these amendments will actually stifle competitiveness in the marketplace.”
What You Can Do: As the Senate continues consideration of their Farm Bill package, NCBA urges cattle producers to contact their Senators about the negative impacts of some of these damaging amendments that could be presented. NCBA members can contact Elizabeth Bostdorff, NCBA’s manager of policy affiliate relations in NCBA’s Washington, D.C. office at 202-347-0228 or ebostdorff@beef.org for more information on Farm Bill issues, and for assistance in contacting their Senators.
Working Group Releases Import Safety Plan: Secretary of Health and Human Services Mike Leavitt, who is serving as Chair of the Interagency Working Group on Import Safety, presented the Import Safety Action Plan to President Bush this week. This plan, prepared by 12 agencies of the federal government, represents months of information-gathering and discussions with stakeholders.
"America enjoys one of the safest food supplies in the world and the action plan establishes short and long-term recommendations to ensure we maintain the highest standards of food quality and safety into the future,” said Acting Secretary of Agriculture Chuck Conner. “By focusing on prevention and rapid response, we will bolster our ability to apply the same high standards of safety to imported foods as we do to domestic foods.”
USDA officials traveled with Secretary Leavitt to a meat processing plant and met with Midwest producers to hear their recommendations for strengthening import safety. The group also co-hosted a day long public meeting in Washington, D.C. where more than 300 people attended to offer insight and recommendations. For more information, visit www.importsafety.gov.
ESAP Applications Available for 2008 Nominations: The 18th Annual Environmental Stewardship Award Program (ESAP) has officially opened its nomination season for 2008. The program has recognized the outstanding stewardship practices and conservation achievements of U.S. cattle producers for almost two decades. Regional and national award winners are honored for their commitment to protecting the environment and improving fish and wildlife habitats while operating profitable cattle operations.
Nominations can be submitted by any organization, group, or individual on behalf of a U.S. cattle producer. The deadline for 2008 ESAP nomination packets is March 14, 2008. 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.
ESAP was established in 1991 by NCBA and is made possible by the support of Dow AgroSciences, LLC, and USDA’s Natural Resources Conservation Service (NRCS.) Seven regional winners and one national winner are selected annually by a committee of representatives from universities, conservation organizations, and federal and state agencies. The nominees compete for regional awards based on their state of residency, and these seven regional winners then compete for the national award.
California/Nevada Cattlemen’s Meeting: NCBA’s Vice President of Government Affairs Jay Truitt is in Reno this week participating in the joint convention of the California and Nevada Cattlemen, November 6-9. Truitt is scheduled to address convention attendees on Friday along with Nevada Governor Jim Gibbons.
Washington Cattlemen’s Meeting: NCBA’s Chief Economist Gregg Doud is traveling to Pasco, Washington, to participate in the Washington Cattlemen’s Association Annual Meeting, November 7-10. Doud is scheduled to address convention attendees on Friday afternoon as part of a panel on age and source verification and how to add value and marketability to your cattle.
Mark Your Calendars For Annual Convention!: 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 the 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.
NCBA Recruiting Student Workers for Cattle Industry Convention: NCBA is now accepting applications for student workers to assist with the 2008 Cattle Industry Annual Convention and Trade Show, February 6-9, 2008, in Reno, Nevada. Student workers will help host while networking with more than 5,000 attendees from across the country and helping trade show exhibitors in more than 250 booths. Our student worker positions provide a unique opportunity for students to gain first-hand experience and to interact with leaders from every segment of the cattle and beef industry.
Qualified applicants must meet the following criteria:
- be considered a junior level college student at the time of application
- be available to work February 5-9, 2008 in Reno, NV
- major in a field related to agriculture
- have at least a 2.8 grade point average
- have a background in or working knowledge of the cattle or beef industry
Although this is not a paying work experience, NCBA will pay for the student’s registration fee, hotel room costs and most meals while in Reno. The students are responsible for their own travel to Reno, NV. Anyone wishing to refer or recommend a student should contact NCBA’s Human Resources Department and ask for an applicant package. The deadline for applications is Friday, November 16, 2007.
Don't Miss NCBA’s Cattlemen to Cattlemen: On this week’s edition of NCBA’s Cattlemen to Cattlemen airing November 6 - 10, we’ll take a look at some of our favorite stories brought to us by Pfizer Animal Health. Topics include the value of pre-conditioning calves and how to keep calves healthy.
On next week’s episode airing November 13-17, we’ll take a look at some of the stories brought to us by Fort Dodge Animal Health. We’ll head to Nebraska where we’ll learn more about how to get the most value from calves. Plus, we’ll take a look at the large animal veterinarian shortage and how the Fort Dodge Legacy Scholarship is working to build interest in the field.
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.