Cattlemen's Capitol Concerns: October 30, 2003

Mexican Trade:

NCBA is extremely discouraged to discover that the long-awaited decision regarding the current anti-dumping tariffs on U.S. beef imports to Mexico has been delayed again, for the fourth time, until December 31, 2003. We received word today that the North American Free Trade Agreement (NAFTA) Chapter 19 anti-dumping panel has not made progress on the decision, which was promised by the end of this month.

These anti-dumping duties were imposed on April 28, 2000, despite the fact that, under NAFTA, the tariff on beef trade between the two nations was established at zero in 1994. Repeated delays in the panel’s decision regarding this tariff has left these duties on beef exports to Mexico in place for more than three years. The historic average time period for similar NAFTA trade actions has been only four months.  This case has cost U.S. beef producers millions of dollars in lost beef exports to Mexico

With this latest development, we are concerned that the review process is flawed. U.S. cattle producers agree that there is no legitimate reason to accuse our industry of dumping in the Mexican market and to impose such a complex system of tariffs on our exporters. For months on end, cattle producers have been working towards the resolution of this dispute, asking the U.S. government to intervene, and sending letters detailing the anti-dumping case to U.S. Trade Representative Robert Zoellick. We continue to ask for a final decision on this case, as soon as possible.

Country-of-Origin Labeling:

The mandatory country-of -origin labeling proposed rule (guidelines), cost/benefit analysis, and request for comments was released by the USDA on Monday.  NCBA and the National Pork Producers Council hosted a joint media teleconference on Monday with media outlets across the country. The USDA estimates that implementation costs of the proposed mandatory rule could be as high as $3.9 billion in the first year alone.  We maintain that a market-driven, producer-led country-of-origin labeling program will allow producers to participate at their choosing without incurring unnecessary costs. Cattlemen are hoping Congress will find a way to re-work the law so it helps – not hinders – the profitability of cow-calf producers.

Producers--Submit Your Comments: 

You are encouraged to review the proposed guidelines for mandatory country-of-origin labeling and submit comments via e-mail to cool@usda.gov or send by mail to Country-of-Origin Labeling Program; USDA Agricultural Marketing Service; 1400 Independence Ave., SW Stop 0249; Washington, D.C. 20250-0249, no later than Dec. 29, 2003. The proposed rule can be accessed on the USDA web site at http://www.ams.usda.gov.

Update on the Administration: 

In related news, the U.S. Office of Management and Budget, sent a letter to the USDA in reaction to the detailed guidelines of the country-of-origin labeling program, which stated "…we remain very concerned that this program will impose enormous costs on consumers that are substantially in excess of any benefits."  Noting that, "These figures indicate that this is one of the most burdensome rules to be reviewed by this Administration."  The OMB is now asking the USDA for their views on whether the Administration should seek legislative relief to mitigate the negative impact of mandatory country-of-origin labeling.

Agriculture Appropriations:

NCBA is monitoring the debates on the Agriculture Appropriations bill in the Senate. In the House Ag Appropriations bill, a provision introduced by Rep. Henry Bonilla (R-TX) delays funding for mandatory labeling implementation for one year, giving Congress more time to review the law before it is implemented. Senators Tom Daschle (D-SD) and Tim Johnson (D-SD) are expected to introduce a "Sense of the Senate" resolution which will instruct Senate conferees – when the Ag Appropriations bill moves to conference – to reject the delay.  The resolution brought forth by Daschle and Johnson will not allow for changes to be made to the mandatory labeling law. NCBA maintains that with some changes, country-of-origin labeling could become more market-driven, workable and beneficial for producers.

Healthy Forests: 

At CCC press time, the Healthy Forests Restoration Act is very close to passage in the Senate.  The bill will provide land managers with the necessary tools and programs to better care for and protect forests and rangelands from threats such as wildfire, disease, insects, and invasive weeds. NCBA and the Public Lands Council (PLC) have long supported the bill which will enhance the condition of public grazing lands and better protect the homes, farms, ranches and communities on adjacent private lands. The vote is especially timely as one of the worst wildfires in California’s history has already destroyed nearly 900 square miles – an area about the size of Rhode Island – and continues to burn. According to White House reports, an estimated 190 million acres of Federal forests and rangelands in the United States – an area almost twice the size of California – continue to face an elevated risk of catastrophic fire due to unnatural, densely packed forest conditions and insect and disease damage.

Tax Issues:  

NCBA has been working with key members of the House on legislation dealing with changes to the tax code that will enhance the business climate for cattlemen. H.R. 2896, the American Jobs Creation Act of 2003, contains many provisions benefiting ranchers and small business owners:

(1) Up to $100,000 of business items can be deducted through the 2010 tax year.  This extends the $100,000 limit two additional years; (2) Creation of a new reduced 32 percent top tax rate for corporations with less than $10 million of taxable income; (3) Decreasing the leasehold and restaurant depreciation lives from 39 years to 20 years; (4) Expansion of the size of companies exempt from the corporate alternative minimum tax from $7.5 million to $15 million in gross receipts; (5) Extension of 50 percent bonus depreciation for an additional year.

In addition, Rep. Scott McGinnis (R-CO) added the "Rancher Help Act" to the bill.  This language allows for the extended deferral of capital gains tax from drought related sales of livestock. The Senate is developing a companion bill and NCBA is working to get similar language included. The House language has passed out of committee and will be considered by the full House later this fall.

Food Guide Pyramid Comments: 

Our Food Policy team submitted comments today to the USDA Center for Nutrition Policy and Promotion (CNPP) on the proposed Food Guide Pyramid Daily Food Intake Patterns and Technical Support Data.  The USDA is reassessing and updating the Food Guide Pyramid—the nation’s primary educational tool to help Americans make daily food choices to promote health and prevent disease. NCBA concurs that this reassessment is timely given changes in scientific and medical knowledge, changes in nutritional standards and changes in food consumption. Ultimately, improving the utility and practicality of the food guide will aid in its increased usage and application.  NCBA points out in the comments that CNPP's review may contain incomplete, outdated and inaccurate information on beef products.  We will continue to remain engaged in this process as it continues.

School Lunch Program: 

Tuesday, October 28th the U.S. House of Representatives passed a bill (H.R. 3232) to reauthorize certain school lunch and child nutrition programs for fiscal year 2004. The Child Nutrition Act authorizes such programs as the National School Lunch Program (NSLP) and the School Breakfast Program.  Also included in the Act are the Summer Food Service Program, Child and Adult Care Food Program, Special Milk Program, and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).  The Act was set to expire September 30, 2003 but this action would keep the current programs in place for another fiscal year.  The Senate has not taken any action on the measure. We will keep you posted on these developments.

Cattlemen Exchange Program:

Cattle producers from various regions across the country are continuing to sign up for the innovative "Walk a Mile in My Boots" program, which gives U.S. cattlemen and U.S. Fish & Wildlife Service employees an opportunity to conduct a job-exchange. So far, there have been successful exchanges in Texas, Idaho, Wyoming and Montana. For more information, photos of the exchanges, or sign-up sheets, go to the new website: walkamile.fws.gov or call 202-347-0228.

Grazing Permits:

The Senate Interior Appropriations bill is being debated in conference and the following provisions benefiting public land ranchers are expected to achieve passage: 

(1) A five-year provision to maintain grazing permits even though agencies are behind in completing environmental analyses.

(2) Temporary non-renewal relief for certain forests in Idaho.

(3) An increase in funding for monitoring, including language dedicating cooperative funding between the agencies and permitees.

Permit Buyout:

NCBA and the Public Lands Council are opposing the Arizona Voluntary Grazing Permit Buyout Act of 2003 (H.R. 3337) introduced in the House October 17 by Rep. Raul Grijalva (D-AZ).  The legislation, if passed, would allow livestock operators possessing grazing permits on federal lands in Arizona to "sell back" the permits in exchange for compensation. We are concerned that the specific language proposed in H.R. 3337 will establish that public lands "may not" be better served by multiple use, including the grazing of livestock.

Endangered Species: 

Virtually the entire western range of the Sage Grouse is currently in the preliminary stages of being considered by the U.S. Fish and Wildlife Service for listing as an Endangered Species.  NCBA and the Public Lands Council (PLC) are gravely concerned about this, and its impacts on western cattlemen.  NCBA/PLC hosted a meeting of industry groups on Monday to discuss the issue.  In addition, the Sage Grouse issue was one of the topics addressed last week when PLC Executive Director Jeff Eisenberg met with Department of Interior Secretary Gale Norton.

Congressman Visits Our Office: 

Various representatives from Washington D.C. agriculture groups gathered in our D.C. office this Wednesday October 29th to meet with Congressman Jack Kingston (R-GA). Representing Georgia’s first district for the past 10 years, Kingston sits on the House Appropriations Committee.  He also serves on the Ag Appropriations Subcommittee, working closely with Georgia’s farmers and ranchers, and has been one of their strongest allies in Washington. Kingston also serves as Vice Chairman of the House Republican Conference.  For photos, contact the number below.

Media Contact:

Tanya Augustson or Karen Batra at 202-347-0228 taugustson@beef.org or kbatra@beef.org

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