Cattlemen's Capitol Concerns

October 25, 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.

Senate Committee Deals Cattlemen a Disappointing Farm Bill:  The Senate Ag Committee wrapped up its mark-up of the 2007 Farm Bill this afternoon lining up the Senate bill for floor consideration in the coming weeks.  For cattlemen, the bill contains a number of disappointing provisions which would undermine the competitive marketplace and fail to adequately fund important cost-share conservation programs. 

- Livestock Policies:  NCBA was successful in preventing attempts to insert language into the livestock title dealing with competitive injury.  As an alternative, NCBA worked with Senators Blanche Lincoln (D-Ark.) and Norm Coleman (R-Minn.) to prepare an amendment that would further study these concerns and offer potential solutions.  The Senate retained the House compromise language on country-of-origin labeling (COOL) with some slight modifications.  Of chief concern to cattlemen is an accepted amendment that would ban packer ownership of cattle and place limits on producers’ ability to market their cattle as they see fit.

“Thanks to the hard work and commitment to the cattle industry shown by Senators Lincoln and Coleman, we avoided some damaging amendments that would have destroyed the value-added marketing opportunities that cattle producers have worked so hard to put in place,” says Colin Woodall, NCBA’s executive director of legislative affairs. 

- Energy:  In the Senate’s energy title, programs were included aimed at investments in farm-based energy such as biomass crops and cellulosic ethanol.  NCBA supports increased funding for alternative energy research.  

- Conservation:  The Senate’s conservation title has an estimated $4 billion in new budget authority, but this has primarily been directed to the Conservation Security Program (CSP) now renamed the Conservation Stewardship Program, and the Wetlands Reserve Program (WRP).  The Senate included some improvements to the Environmental Quality Incentives Program (EQIP) and Grasslands Reserve Program (GRP).  NCBA was successful in working with Senators Patrick Leahy (D-Vt.), Pat Roberts (R-Kan.), and Mike Crapo (R-Idaho) to remove restrictions on payments for EQIP projects.  Nevertheless, increased funding for these and other cost-share programs will remain a top priority for NCBA as the Farm Bill process continues.

“Cattlemen need to be confident that their elected members of Congress are looking out for their best interests.  With several of these provisions, however, the Senate has indicated that cattlemen are not top of mind in these Farm Bill discussions,” says Woodall.  “We intend to continue this fight.  As the full Senate prepares to take up consideration of the Farm Bill, cattlemen now need to come together and work for some desperately needed fixes in the livestock title as well as increases in conservation program funding.”

“We’re really proud of the way our members reached out to their Senators this week,” says Elizabeth Bostdorff, NCBA’s manager of policy affiliate relations.  “We had 288 letters sent over a period of 42 hours.  If we’re going to be successful in the coming weeks, we need to see that same kind of outreach.”  NCBA members can contact Elizabeth in NCBA’s Washington, D.C. office at 202-347-0228 or ebostdorff@beef.org for more information on these Farm Bill issues, and for assistance in contacting their Senators. 

Cattlemen Speak out Against Packer Ban Language:  In its mark-up of the 2007 Farm Bill, the Senate Agriculture Committee included language that would place a ban on packer ownership of livestock. The amendment would prohibit packers from owning or feeding livestock directly, except for 14 days before slaughter.

NCBA member policy has for nearly ten years opposed legislation that would alter the competitive structure of the cattle industry or limit cattlemen’s marketing options. 

“This amendment hurts cattle ranchers by limiting their marketing options and their ability to negotiate the best price for their cattle,” says NCBA Vice President of Government Affairs Jay Truitt.  “NCBA’s cattle-producing members believe they should be able to sell cattle to whomever they want, whenever they want and when it’s in their best interest.  Instead, this amendment puts the government in control of these decisions and has the undesirable effect of driving consolidation, decreasing competition for our cattle and creating average-based pricing across the board.”

In communications to Capitol Hill this week, NCBA cattle producer-members voiced their strong opposition to the amendment.  “As a producer, I find it highly offensive that I should be told by any big government bureaucrat who I may sell my cattle to and when,” wrote one NCBA member.  “If the beef industry is to be prosperous, we need the freedom to pursue business relationships, to experiment, to establish mutually beneficial partnerships, and to develop cooperative initiatives.  What we do not need is centralized control of our industry by politicians and bureaucrats who are woefully unprepared and unqualified to do so.”

Virginia Cattleman Testifying on Ag Disaster Assistance:  Virginia Cattleman Bill McKinnon testified before the House Ag Committee today, October 25^th, at a hearing to review agriculture disaster conditions across the nation.  McKinnon is Executive Secretary for the Virginia Cattlemen’s Association (VCA) and testified on behalf of VCA on the impact of drought conditions on Virginia livestock operations.

“Normally in October, you might drive through Virginia and still notice lush green pastures.  As you tour Virginia and much of the rest of the Southeast this October you view primarily brown grazing boundaries with little or no forage,” said McKinnon.  “Overall, the Southeastern drought is causing economic devastation to livestock producers on five fronts.  These include forced liquidation of breeding herds, early marketing of lighter weight feeder cattle, significantly higher feeding costs, reduced prices for lightweight feeder cattle, and grasslands renovation costs.”

In his testimony, McKinnon highlighted the importance of meaningful disaster assistance programs for farmers and ranchers.  “Livestock producers are used to dealing with short term dry spells, and most do their best to plan for them,” said McKinnon.  “However, during periods of extreme and prolonged disaster such as this, access to federal disaster programs is essential to the viability of many livestock businesses located in the Southeast region of the country.  Additional expenses for supplemental feed, grassland restoration, and herd rebuilding will be debilitating to the financial situation of cattle operations.”

Hearing on CFTC Reauthorization:  The House Ag Subcommittee on General Farm Commodities and Risk Management held a hearing on October 24^th to review reauthorization of the Commodity Futures Trading Commission (CFTC). 

“The Commodity Futures Trading Commission has continued to operate far too long without proper reauthorization and sufficient funding,” said Subcommittee Ranking Member Jerry Moran (R-Kan.).  “In recent years, markets have evolved and trading volume increased exponentially. It is essential the Agriculture Committee move toward reauthorization as soon as possible so that the CFTC has the tools necessary to properly oversee markets.”

The Commodity Exchange Act (CEA) is the foundation for federal regulation of commodity futures trading and for reauthorization of the CFTC, which regulates futures markets.  CEA was last reauthorized in 2000 with passage of the Commodity Futures Modernization Act. Opening statements of all the witnesses are posted on the Ag Committee website at http://agriculture.house.gov/hearings/index.html.

International Trade Update:  Last week’s NCBA Chief Economist Gregg Doud attended the ANUGA international food show in Cologne, Germany.  Products from 6,000 companies and 95 countries were on display to more than 163,000 visitors from 175 countries.

In addition to foods from the United States, booths selling beef, pork and lamb from all around the world including beef from Ireland, Scotland, Brazil, Argentina, Uruguay, Paraguay, Canada, New Zealand and Australia.  Indian water buffalo and even Australian kangaroo meat were on display.  “At first it was completely overwhelming,” said Doud, “to see buyers and sellers from literally the entire planet all in one location buying and selling. It was one stop shopping to the entire world beef and meat market.”

U.S. beef was on display and a hot topic at this show.  U.S. beef exports to the EU so far in 2007 (through August) are at 10 million pounds (4,554 metric tons) worth $26 million.  This is up 120 percent compared with the same period last year. The EU consumes about 18 billion pounds of beef per year and will import 1.1 billion pounds this year, making it one of the top five beef importing nations in the world.

“The second thing that became obvious was the number of Russians looking for meat,” said Doud.  Russia is expected to import roughly 2 billion pounds of beef alone this year making it the second largest beef importing nation in the world and the top market for Brazil and practically all of South America. Brazil is expected to export more than 750 million pounds of beef to the EU this year. “The EU and Russia have become giant sponges soaking up South American beef and you could clearly see this interaction at ANUGA,” said Doud.  By simply looking at the numbers and the trade flows, you can quickly conclude there is potential, but after days of conversations with Europeans on the topic, it became obvious that the market for grain-fed beef in Europe hasn’t been tested in roughly 20 years. Now that Europe has switched from a major exporter to a major importer of beef during just the past five years, it is time to pursue this opportunity. Weakness in the U.S. dollar against the Euro is a big plus as well.

Doud was very encouraged by USMEF’s new office and new personnel in Brussels. “These are exactly the right people with the right skills in the right location for this new time,” said Doud.  “The European meat and beef market is huge, and beef production systems vary greatly both within a country and between countries. It is going to take some time and effort to get a handle on today’s European retail and food service markets, but it should be well worth it.”

Codex Meetings:  NCBA’s Chief Veterinarian Elizabeth Parker is in Seoul, Korea, October 21-27 for meetings of the Codex Task Force on Antimicrobial Resistance.  For more information, visit www.codexalimentarius.net.

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 23-27, Lee Leachman of Leachman Cattle of Colorado explains the importance of quality genetics when building or expanding a cattle herd. The Cattle Learning Center travels to Montana, where veterinary experts have developed a screening project to battle the problem of cattle being persistently infected with bovine viral diarrhea. And Cattlemen to Cattlemen’s “Day in the Life” segment profiles California rancher Duane Martin.

In the next program airing October 30 – November 3, Cattlemen to Cattlemen provides an update on the Senate Farm Bill and profiles Montana Rancher Bill Donald, vice president of NCBA’s policy division.  Jim Kelley of Superior Livestock discusses the growing appeal of video cattle auctions, and Dr. Lee Dickerson of Purina Mills’ LongView Animal Nutrition Center explains the importance of body condition scoring.    

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.