2007 CCC Archive
Cattlemen's Capitol Concerns
October 11, 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.
Korean Trade Update: South Korea suspended imports of U.S. beef last Friday, October 5th, after inspectors found one box within an 18.5 ton shipment that contained vertebral column. Korean officials said late last week that a ban on ALL U.S. beef products will remain in effect until a new set of quarantine conditions are worked out. But, in media reports this week, South Korea's agriculture minister said that U.S. beef poses no significant health risk.
U.S. and Korean officials are meeting this week at Korea’s National Veterinary Research and Quarantine Service in Anyang, near Seoul. Korean officials have said the objective of the meetings is to begin setting up new sanitary and phytosanitary (SPS) standards for beef imports. South Korea Agriculture Minister Im Sang-gyu said, “U.S. beef poses no health risks beyond international standards,” which should smooth the way for normalizing trade of U.S. beef to Korea in the near future.
Secretaries Put Weight Behind Push for Peru Agreement: Secretary of State Condoleezza Rice, as well as four former Secretaries of Agriculture, are voicing their support for the U.S.-Peru free trade agreement currently pending before Congress.
In a joint letter sent to Congress, Bob Bergland, John Block, Dan Glickman and Clayton Yeutter expressed their “strong support” for the Peru Trade Promotion Agreement (PTPA), saying “it is the only mechanism by which the playing field in our agricultural trading relationship with Peru can truly be leveled.”
Pointing to the crucial role trade plays in the prosperity of rural America, the letter said, “Indeed it is difficult to name an agricultural product our farmers sell in the world market that has not benefited from earlier trade agreements. The U.S. cannot stand by complacently, however, while our competitors are negotiating preferential trade deals around the globe, or we will soon see an erosion of our hard-won access to key markets.”
Additionally, Secretary of State Condoleezza Rice urged passage of the Peru agreement last week saying, “Passing these trade agreements is not a narrow partisan interest; it is a vital national interest.”
Senate Committee Moves Peru Trade Agreement Forward: The Senate Finance Committee unanimously approved implementation language for the Peru Trade Promotion Agreement (PTPA) by voice vote on October 4th. This vote follows the committee’s “mock markup” of the measure on September 21st, during which the panel gave broad, bipartisan support to the draft legislation and offered no amendments. This vote concludes the panel’s consideration of the pact. PTPA will next be considered by the full Senate for an up-or-down vote, in accordance with the Trade Promotion Authority Act, or "fast track" procedures.
The White House submitted the formal language to Congress on September 27th giving the House 45 legislative days (in which Congress is in session) to move it through committee, or it will move to the floor automatically. The Senate is expected to have a floor vote following House passage.
NCBA is working with a coalition of ag industry groups in support of this agreement which presents a great opportunity for America’s cattlemen. Under the PTPA:
- 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.
- Specific Sanitary and Phytosanitary (SPS) terms were agreed to in writing.
Beef comprises less than 8 percent of Peru’s total agricultural 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, beef variety meats and beef products. This improved access could amount to roughly $15 million a year, about half the value of Peru's current total beef imports.
Senate Committee Approves Fair Contracts for Growers Act: Legislation which aims to modify the use of arbitration to resolve disputes involving livestock and poultry contracts was approved by the Senate Judiciary Committee last Thursday, October 4th.
S.221, the Fair Contracts for Growers Act, was introduced by Senator Charles Grassley (R-Iowa) on January 9th. This bill deals with the use of arbitration as a means to settle disputes that might arise between a producer and a party to whom he/she is selling livestock.
This bill provides for the use of arbitration in settling a contact dispute only if, after the controversy arises, both parties agree in writing to use an arbitrator. It also states that if an arbitrator is used, they have to provide the parties involved in the dispute with a written explanation of the factual and legal basis for their decision in the dispute. NCBA policy supports this bill. S. 221 has been placed on the Senate legislative calendar for consideration in the near future.
Congressional Leaders Call for Disaster Assistance Extension: NCBA is urging House leaders in Congress to extend the eligibility date for disaster assistance coverage to allow producers who faced hardships after February 2007. Forty-three members of Congress sent a letter urging the extension on October 5th to Reps. David Obey (D-Wisc.), Rosa DeLauro (D-Conn.), Jerry Lewis (R-Cal.) and Jack Kingston (R-Ga.). Obey chairs the House Appropriations Committee; DeLauro chairs the Ag Appropriations Subcommittee, and Lewis and Kingston 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. “As a result of these disasters and their widespread impacts, it is imperative that the federal government, and in particular the House and Senate Appropriations Committees, step forward and provide assistance,” the members of Congress said.
Senate Committee Passes Ag Tax Package: The Senate Finance Committee approved October 4th the “Heartland, Habitat, Harvest, and Horticulture Act of 2007.” Within this package is a provision NCBA supports that makes tax incentives for conservation easements permanent and a provision NCBA opposes, which extends the ethanol import tariff.
The “Rural Heritage Conservation Extension” would permanently extend the enhanced tax incentive for conservation easements included in last year’s Pension Protection Act. The provision allows all taxpayers to deduct up to 50 percent of their adjusted gross income (AGI) for donations of conservation easements and carry forward the deduction up to 15 years. A bonus allows ranchers and farmers to deduct up to 100 percent of their AGI for donations of conservation easements. There is also language included that provides tax incentives for producer participation in conservation programs.
Also included in this bill is language that extends the tariff on imported ethanol for two years (through December 31, 2010). NCBA policy is specifically opposed to extending the import tariff, and instead, supports a transition to a market-based approach for the production and usage of ethanol produced from corn.
NCBA Submits Ozone Comments: NCBA submitted comments this week to the Environmental Protection Agency (EPA) on their proposal to tighten standards under the National Ambient Air Quality Standards (NAAQS) for Ozone. Specific to the cattle industry would be the possible regulation of Volatile Organic Compounds (VOCs) for CAFOs located in nonattainment areas around the country.
VOCs are emitted as gases from certain solids or liquids. EPA believes that emission of some VOCs can have adverse effects on the Earth’s ozone. On cattle operations, VOCs are emitted from CAFOs, burning vegetation, animal waste handling and storage. In its comments, NCBA recommended that regulation of VOCs be based on their reactivity and geographic location, with most reactive VOCs addressed first in areas where additional controls are warranted. NCBA also believes that science does not justify the tightening of the standard from the current eight hour standard of .084 parts per million (ppm) to the proposed rule range of .070-.075 ppm.
International Food and Trade Meetings: NCBA’s Chief Economist Gregg Doud is in Belgium and Germany this week for international trade meetings. While in Germany, Gregg will attend the Anuga Trade Fair for the International Food Industry, October 13-17. For more information, visit www.anuga.com.
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 October 9-13, we report on the Topps Meat Company ground beef recall. Dr. Bo Reagan, NCBA vice president of research and knowledge management discusses the beef industry’s efforts to fight E. coli and the importance of using best practices developed by the Beef Industry Food Safety Council (BIFSCO).
Reporter Todd McCartney joins Dixon County Feeders in Nebraska and experts from Fort Dodge Animal Health to look at maximizing the value of calves. We’ll also visit the Oak Knoll Ranch in Missouri to meet another regional Environmental Stewardship Award Program (ESAP) winner, and Brian Baxter provides an update on the latest line of Beef Value Cuts.
On the next episode airing October 16-20, top executives from Coleman Natural Foods explain the growth of the natural beef market and provide information on the production practices that can qualify cattle for a natural beef program. The Congressional Ranch Tour takes members of Congress to cattle operations in Missouri, Georgia and Nebraska to help educate lawmakers about the beef business. Veterinary experts from Bayer Animal Health help separate myths from facts when is comes to bovine respiratory disease. And we’ll visit the Roaring Springs Ranch in Oregon to meet another regional ESAP Award winner.
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.