Cattlemen's Capitol Concerns: October 14, 2004

Cattlemen's Capitol Concerns
October 14, 2004
The 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).

Every Vote Counts: As Election Day 2004 draws near, this year’s Presidential race is predicted to be a close one. Polls are showing the two candidates neck-and-neck. Over the next few weeks, NCBA members are making an extra effort to help fellow cattle producers across the nation understand why voting in this particular election is crucial. Less than half of the registered voters usually show up and vote on election day, especially when they are satisfied with the current Administration. NCBA is conducting a nationwide "take action" plan addressing undecided voters. Our Political Action Committee (PAC) publicly endorsed the candidacy of President Bush at the 2004 Summer Conference in Denver, when NCBA members resolved that Bush policies provide a better business climate for cattle producers. NCBA believes the President most strongly supports the growth and success of American small businesses and his positions on key issues, his proven track record, and agenda for his next term provide an environment in which producers and rural communities can thrive. Some in the cattle industry may still remain undecided or are confused about the NCBA endorsement of Bush. For more information, go to www.beefusa.org, and check out the "Top Five Reasons Bush is Best For Cattle Producers."

Success on Capitol Hill:  As the Senate wrapped up their pre-election session this week, many measures important to cattle producers achieved passage and are on the way to becoming law. Congress is now on recess until after the elections.  They are expected to reconvene Nov. 16, 2004. These recent successes will help cattlemen better run their businesses and operations for years to come. See below for more information on specific issues.  Cattle producers across the nation should feel confident that they are well represented in Washington D.C. and that their voices are being heard!

Disaster Relief:  Hurricane and drought relief measures were attached to the Military Construction Appropriations Bill, which passed the House last Saturday and the Senate on Monday. The $11.6 billion in emergency supplemental aid is meant to provide funding for recovery efforts in states hit by Hurricanes Charley, Frances, Ivan, and Jeanne, and by Tropical Storm Bonnie. The Emergency Conservation Program (ECP) received $100 million in this package.  The ECP can be used for debris removal and rebuilding fences in areas that have received a Presidential disaster declaration.  In addition, the Emergency Watershed Protection (EWP) program was funded at $250 million and can be used for debris removal from stream channels and road culverts, repairing damaged drainage systems, and reseeding damaged areas.  The Military Construction Appropriations package also contains $2.9 billion in funding for ranchers whose operations were hurt by drought.

American Jobs Creation Act:  This bill, passed late last week, contains a number of provisions important to the cattle industry. Producers are encouraged to contact their tax advisors to see how to take advantage of these new rules: 
-The Rancher Help Act extends from two years to four years the amount of time cattle producers have to reinvest in livestock without paying capital gains taxes on cattle sold due to drought or another natural disaster.
-The Extension of Section 179 Expensing allows cattle producers to write off equipment purchases in the year of purchase without having to depreciate the expense over time.
-The FSC/ETI measure corrects portions of the U.S. tax code that led the European Union to place high and ever increasing tariffs on U.S. exports due the U.S.’s current treatment of Foreign Sales Corporation (FSC) and Extra-Territorial Income (ETI). This bill should resolve this outstanding World Trade Organization dispute and remove tariffs from many U.S exports.

Weeds Bill:  The long-supported Noxious Weed Control Act passed out of Congress late Sunday night. The measure has been championed by Senator Larry Craig (R-Idaho) and supported by cattle producers for nearly five years. The bill requires the Secretary of Agriculture to establish a program to provide assistance through states to eligible weed management entities to control or eradicate harmful, nonnative weeds on public and private land.

Mandatory Price Reporting:  After working with key committees toward reauthorization during the past year, NCBA is disappointed that Mandatory Price Reporting was not reauthorized in the closing hours of Congressional action before adjournment.  The measure was delayed in the Senate last weekend, and although it eventually passed the Senate, it was too late to see action in the House before adjournment.  NCBA believes there is little opposition to reauthorization, and we are confident the measure will pass when the House returns to Washington D.C.  In the meantime, Mandatory Price Reporting is due to sunset Oct. 22, but USDA has said they will continue collecting information and implementing Mandatory Price Reporting. When Congress reconvenes on Nov. 16, their agenda is expected to include reauthorization of Mandatory Price Reporting.

Animal ID: Producers' worries about confidentiality of animal identification data were communicated to members of Congress this week.  USDA sent a legislative proposal to Capitol Hill in hopes of addressing NCBA's and other groups' concerns as USDA works to develop a National Animal Identification System (NAIS). Producers from Mississippi, Georgia and North Carolina met with USDA Undersecretary Bill Hawks to discuss their concerns with the current direction USDA is taking in regards to a national database owned and managed by USDA. The producers are asking that USDA develop a program that utilizes current state animal health programs, producer tracking and identification programs in a collaborative sense with anything that USDA develops. NCBA and a number of state affiliates are reviewing the confidentiality language, and will identify any issues that exist. Confidentiality of the information held in any public database is a key and formidable concern of NCBA in the development of a NAIS.

Omnibus Appropriations Bill: Also set for when Congress reconvenes on Nov. 16, NCBA will be working with Congress as they begin consideration of an omnibus appropriations bill.  Included in this package will be agriculture appropriations measures such as funding for our animal health infrastructure, nutrition and conservation programs.

NCBA in Mexico:  NCBA’s Chief Economist Gregg Doud and Associate Director of Trade Policy Michelle Reinke are working in Mexico this week with the annual Five Nations Beef Conference. The world’s five largest beef producing nations are discussing top issues, and working to reach a consensus on a variety of issues impacting beef and the beef supply.  Post-meeting, attendees will develop a position statement covering issues such as: trade reform; BSE; animal ID; animal welfare, and more. The participants will come out with a summary report on the current situation of the cattle industry in each nation, and NCBA will review and report in the next edition of the CCC.

Foreign Inspection System Supervisory Visits:  NCBA submitted comments today to USDA’s Food Safety and Inspection Service on the frequency of foreign inspection system supervisory visits to establishments where meat is processed for export to the U.S.  NCBA comments state that equivalency of food safety systems and inspection procedures in the U.S. and other countries is an important component in maintaining consumer confidence.  U.S. supervisors are in constant contact with plant inspectors and processing establishments which makes regular required visits in the U.S. unnecessary.  However, supervisors in foreign systems may not have the same level of interaction with their local inspectors (including contact by phone, e-mail, meetings or reports).  If a foreign government cannot demonstrate necessary supervisory oversight of their inspection personnel, similar to the oversight in the U.S., then FSIS should consider keeping that country on a required monthly schedule for supervisory visits.

USDA News:  Texas A&M University announced this week that USDA Undersecretary for Food Safety Elsa Murano has been selected to become Vice Chancellor, Dean of Agriculture and Life Sciences, and the Director of the Texas A&M Agricultural Experiment Station.  Murano would replace Dr. Ed Hiler, who retired Aug. 31, 2004, but agreed to stay on until his successor takes office. Murano was appointed to her current position at USDA by President George W. Bush in 2001.

Get Out and Vote! The key Battleground states in this year’s election are predicted to be: Arizona, Arkansas, Colorado, Florida, Iowa, Michigan, Minnesota, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Washington, West Virginia, Wisconsin. If you need more information on voting in your state, check out www.beefusa.org or http://hill.beef.org for detailed, state-by-state information.

Volunteers Needed! This year is your chance to take part in the political process. Since the NCBA’s PAC endorsement of President Bush, we are urging people across the nation to join the fight to instill passion among voters and help our friends, family, co-workers, and neighbors to understand why the policies and platform of George W. Bush provide the best business climate for our livelihood. To sign up as a volunteer in your area, go to http://www.georgewbush.com/FarmAndRanch/

USDA Surveillance for BSE: In related news, USDA continues its BSE surveillance program which began on June 1. APHIS posts the test results on their website at: http://www.aphis.usda.gov.  To date, 79,736 tests have been conducted with no positives reported. 

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.

For more information, please visit our web site at hill.beef.org.
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