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).

Congress Considers Sanctions Against Japan:  NCBA continues its work with Congress toward resuming U.S. beef exports to Japan.  This week, as key members of the House and Senate return to Washington following last week’s recess, they are growing increasingly weary of Japan’s 22-month ban on U.S. beef.  Pointing to the October 2004 understanding between the United States and Japan, Congress says Japan continues to delay imports of U.S. beef on factors not grounded in science or consumer safety.  NCBA says Congress is poised to introduce legislation calling for immediate economic sanctions against Japan if the trade issue remains unresolved. 

Burns, Pilcher Meet with Japanese Ambassador:  Sen. Conrad Burns (R-Mont.) and Steve Pilcher, executive vice president of the Montana Stockgrowers Association met with Japanese Ambassador Ryozo Kato today and conveyed cattlemen’s concerns over the continuing Japanese embargo on U.S beef.  “I stressed to Ambassador Kato that the Senate is very seriously considering sanctions if this ban continues. This process has gone on long enough,” Burns said. “Our trade relationship with Japan is very important, but this embargo has got to end.” 

Moran says “Congressional patience has been exhausted” on Japan:  In the House Chamber October 19, Rep. Jerry Moran (R-Kan) asked his colleagues to take up House Resolution 137 which calls for the U.S. Trade Representative to immediately impose retaliatory trade sanctions against Japan if it continues to delay meeting its obligations as part of the understanding reached October 2004. 

“This 2-year delay has now almost totaled $3.4 billion in losses to American agriculture…The U.S. cattle and beef industries are losing $100 million each month that Japan remains closed to U.S. beef markets,” Moran said. “Japan cannot have it both ways. They cannot benefit from exports to the U.S. while denying our imports such as beef with no scientific evidence to support their actions. Congressional patience has been exhausted. It is time that House resolution 137 be brought to the floor and a clear message be delivered to Japan.”  The Moran Resolution currently has 83 co-sponsors.  NCBA producer-members are urged to contact their U.S. Representatives and ask them to support HRes 137.

Japan FSC Meeting:  The Japanese Food Safety Commission (FSC) has announced that its next meeting will take place on Monday, October 24. 

Inter-agency Working Group:  In related news, NCBA Vice President of Government Affairs Jay Truitt participated in meetings this week with members of the Bush Administration’s Inter-Agency Working Group to discuss the next steps for the Administration and industry as we work to resume U.S. beef exports to Japan.  As Japan’s 22-month ban on U.S. beef continues, NCBA has made the trade issue a top priority and is aggressively working with Congress and the Administration toward a solution.

Appropriations:  After returning to Washington from last week’s Columbus Day/Yom Kippur recess, members of Congress are focused on the Fiscal Year 2006 appropriations bills.  Cattlemen are watching closely as the agriculture appropriations bill goes to conference for final debate. The House named their conferees October 19, and the conference committee is scheduled to meet October 24 with anticipation of completing the bill by the middle of next week.  Then the bill must be approved by the full House and Senate.  NCBA hopes the ag appropriations bill will be completed before the end of October.

Budget Reconciliation:  The Senate Ag Committee passed their reconciliation bill October 19.  Their final package detailing $3 billion in mandatory spending cuts over the next five years is due to the Budget Committee by October 26.  Of interest to cattlemen, there were some cuts in conservation programs as expected.  The package reduces funding for the Environmental Quality Incentives Program (EQIP) to $1.85 billion in FYO6 and to $1.27 billion in FYs 2007-2010.  This amounts to a reduction of authorizing levels of funding of $15 million in 2006, and $30 million for 2007-2010. For the Conservation Reserve Program (CRP), there was a reduction in acreage from 39.2 million acres to 36.4 million acres through 2010. 

The House is required to have their budget reconciliation cuts of $4.5 billion worth of mandatory spending over the next five years finalized and submitted to the Budget Committee by October 31. 

Refco Files for Bankruptcy:  Refco, Inc., the nation's largest commodity and futures brokerage, filed for Chapter 11 bankruptcy after announcing the sale of its futures division.  Traders at the Chicago Mercantile Exchange, which relies on Refco for ten percent of its revenue, said there had been no disruption to trading or clearing.  But for NCBA producer-members, the market uncertainty that this situation could cause is very concerning and we will continue to monitor this situation closely. 

WTO Negotiations Update:  International agriculture trade negotiators are holding informal meetings in Geneva this week. Leaders from the United States, European Union, Australia, Brazil and India are among the major agriculture exporting nations convening with hope of coming to an agreement regarding trade reforms before the upcoming World Trade Organization (WTO) Ministerial Conference December 13-18 in Hong Kong.  Director-General of the WTO Pascal Lamy stated in his report to the General Council on October 19, “it is clearly essential that we keep up the pressure in agriculture, and this week's meetings are important in that respect.” He noted that the trade negotiators at the Ministerial “are under severe pressure of time” in the negotiations. USDA Secretary Mike Johanns was quoted this week saying success in the global market rests squarely on the European Union. NCBA members anxiously await a EU market access proposal so that we may finally move this process forward.  In terms of global trade, NCBA's immediate concern is the continuing ban on U.S. beef going into Japan. NCBA will be in attendance at the WTO Ministerial conference in December and will continue to make increased market access opportunities for U.S. beef a top priority.

NCBA, PLC Pushing for ESA Action in Senate:  Following swift passage of H.R. 3824, the "Threatened and Endangered Species Recovery Act of 2005" (TESRA) in the House last month, NCBA and the Public Lands Council (PLC) have already begun laying the groundwork for possible legislative action in the Senate.  Just last week, NCBA Federal Lands Director Jeff Eisenberg traveled to the Klamath Basin in Oregon with key congressional staff.  This trip was a prime opportunity to increase awareness in the Senate about the need for modernizing the Endangered Species Act (ESA). As we look for introduction of a bill in the Senate, now is the time for ranchers to begin contacting their U.S. Senators, communicating the importance of ESA reform for the economic viability of ranching and farming operations.  For more information on how to communicate with your Senators, contact Jenni Beck at jbeck@beef.org or (202) 347-0228.

Gray Wolf May Be Delisted:  In related news, the Fish & Wildlife Service (FWS) announced this week that they will consider removing the Rocky Mountain population of the gray wolf from the Federal list of threatened and endangered species.  After evaluating petitions from Friends of the Northern Yellowstone Elk Herd (2001) and the Office of the Governor of the State of Wyoming and the Wyoming Game and Fish Commission (2005), FWS said “substantial information exists indicating that delisting of this population may be warranted.”  This is a huge step forward in wolf management for ranchers in the Rocky Mountain area.  In Congress, NCBA and PLC are seeking compensation for ranchers who lose livestock due to wolf attacks. The measure was included on the "Threatened and Endangered Species Recovery Act of 2005" which passed the House September 29.  FWS will now conduct a 12-month status review of all available data on the Rocky Mountain population of the gray wolf to consider whether the population meets the criteria for delisting as a Distinct Population Segment under the ESA. 

Walk a Mile in My Boots:  The innovative exchange program called “Walk a Mile in My Boots” was the subject of meetings this week in Washington, D.C. NCBA hosted representatives from the U.S. Fish and Wildlife Service (FWS), the National Association of Conservation Districts (NACD), and the Natural Resources Conservation Service (NRCS) to discuss future expansion options for the program. Originally, the program was a partnership between NCBA and the FWS, but now the memorandum of understanding will be expanded to include the NACD and the NRCS in the exchange program partnership.

Walk a Mile in My Boots allows cattle ranchers and FWS employees the opportunity to ‘swap jobs’ for a few days and participate in an interactive opportunity to learn about each other's respective professions. Applications are now being taken for future exchanges, so if you’re a cattle producer or FWS employee interested in learning how it works on ‘the other side of the fence,’ contact Stacey Katseanes skatseanes@beef.org or 202-347-0228 for application information.

Tax Reform:  NCBA participated in the twelfth meeting of the President’s Advisory Council on Federal Tax Reform October 18.  For more than a year, the panel has examined 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. This week’s meeting was seen as a critical step towards the conclusion of this process.

The panel discussed three tax reform proposals, a simplified income tax, a consumption tax, and a value added tax (VAT) with a simplified income tax.  The first proposal uses the current income tax system as a starting point for reform and offers a major simplification and reform of the current tax code. The next two proposals were more far-reaching approaches to reform, including the taxing of consumption in a progressive manner and the adoption of a consumption tax that would be used to collect a substantial portion of the revenue now collected under our current income tax. The panel will now compile recommendations for reform and will deliver formal recommendations to the Secretary of the Treasury by November 1. NCBA will continue to monitor such meetings to assure the best possible tax reform policy for U.S. cattle producers. For more information, go to www.taxreformpanel.gov.

USDA to Host Next Farm Bill Forum in Greeley:  USDA will host another of its Farm Bill public forums October 24 in Greeley, Colo.  Ag Secretary Mike Johanns is hosting the forums in effort to give ranchers and farmers a voice in developing the 2007 farm bill.  The October 24 forum will include Rep. Marylyn Musgrave (R-Colo.) as a special guest.  Additional forums are scheduled for:

• Oct. 25, Manchester, N.H., 9:30 a.m.-12:30 p.m. (EDT), Center of New Hampshire
• Oct. 25, Portland, Ore., 1:00 p.m.-4:00 p.m. (PDT), Portland State Office Building
• Oct. 26, South Burlington, Vt., 9:30 a.m.-12:30 p.m. (EDT), Doubletree Hotel
• Oct. 28, Boston, Mass., 10:00 a.m.-1:00 p.m. (EDT), Boston Public Library
• Nov 1, Austin, Texas, time and venue TBD
• Nov. 2, Atlanta, Ga., 9:00 a.m.-12:00 p.m. (EDT), Atlanta Community Food Bank
• Nov. 12, Kona, Hawaii, 11:00 a.m.-2:00 p.m. (HST), Sheraton Keauhou Hotel, Deputy
• Nov. 16, New Brunswick, N.J., 9:30 a.m.-12:30 p.m. (EDT), venue TBD

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

Industry Outlook Conference:  NCBA Manager of International Markets Julie McWright was in Chicago October 17-18, for the Fall Industry Outlook Conference.  Coordinated by the Livestock Marketing Information Center (LMIC), the conference brings together analysts from various commodity sectors to present production projections, price forecasts and highlights issues pertinent to the industry.  In conjunction with the outlook sessions, USDA hosted a Data Users' Forum October 17 where attendees were updated on pending changes in USDA statistical and information programs. 

All-Breed Bull Auction to Benefit NCBA-PAC:  Bid on some of the best beef genetics and seedstock in the nation while supporting NCBA’s Political Action Committee (PAC)!  In conjunction with the 2006 Cattle Industry Convention & Trade Show, NCBA PAC/PEF will host their first annual bull sale during the "exclusive trade show hours" 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, Colorado
• Aristocrat Angus Ranch, Platteville, Colorado
• Three Trees Ranch, Sharpsburg, Georgia
• Fink Beef Genetics, Manhattan, Kansas
• Lyons Ranch, Manhattan, Kansas
• Edwards Angus Ranch, Denton, Montana
• Ekker Herefords, Vernon, Utah

To make a donation please contact Erin Vincent at 202-347-0228 or evincent@beef.org.

NCBA-PAC Team Penning: Also at the upcoming Cattle Industry Convention & Trade Show in Denver this February, NCBA PAC/PEF will host a team penning competition! The evening event will be held on Friday, February 3 beginning at 6:30pm. It will include 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 order tickets when you pre-register for the Convention. NCBA members are also encouraged to ride in the team penning which begins at 8:00 am on Friday, February 3rd. All skill levels are welcome! If you are interested in riding please contact Erin Vincent at 202-347-0228 or evincent@beef.org.

BSE Surveillance: To date, USDA’s Enhanced BSE Surveillance Program has tested 497,406 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.