Cattlemen's Capitol Concerns
October 4, 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.

Interstate Meat Shipping Becomes Political Football:  Whether or not state-inspected meat plants are able to ship across state lines has been a hot topic of debate this week.  Provisions included in the House Farm Bill would allow state-inspected meat to be shipped to other states.  Partially due to increased media scrutiny surrounding a recent ground beef recall, some Senators appear poised to strike that provision when they consider the Farm Bill. 

Currently, a stand-alone bill in the Senate, the New Markets for State-Inspected Meat and Poultry Act of 2007 (S. 1150) would overturn an outdated provision which prevents interstate shipment of state-inspected meat. The measure is being championed by Senator Orrin Hatch (R-Utah).  

Federal law requires USDA to inspect all meat products. In the 1960s Congress created state inspection programs that are mandated to be “at least equal to” the federal inspection program.  Perishable products – including milk and other dairy items, fruit, vegetables, and fish – are freely shipped across state lines after state inspection. But standard meat products, like poultry, beef, and pork, are prohibited from interstate commerce, despite decades of meeting or surpassing the federal inspection standards. This legislation would remove that prohibition.

“State inspection programs are proven to be as thorough as Federal programs, yet state-inspected meat can’t be shipped even from Utah to Colorado,” says Hatch. “We need to update this unnecessary, unjust ban that puts our small businesses at such a disadvantage.”

NCBA policy supports the legislation as a way for state-regulated businesses to compete in interstate commerce and sees it as a great opportunity for cattle producers and small local businesses to market branded beef products. “We see this as an opportunity to foster entrepreneurship and add new competition in the processing sector,” says Jay Truitt, NCBA’s Vice President of Government Affairs. “In addition, this would create more access for consumers to get the kinds of meat products they want.”

Tax Relief for Drought:  The Internal Revenue Service (IRS) has issued its guidance publication on the deferral of capital gains taxes from drought-related sales of livestock.  NCBA has continually worked for changes to Section 1033 (e) of the Uniform Tax Code to extend the tax deferment period for weather-related sales of livestock – known as involuntary conversions.  Last fall, the IRS announced it will extend tax relief for ranchers who were forced to sell off large portions of their breeding stock as a result of drought conditions.

“This action by the IRS provides continued relief to cattle producers who have dealt with drought over an extended period of time, says NCBA’s Manager of Legislative Issues Jason Jordan.  “These changes to the tax code will help cattle producers in drought-impacted areas of our country sustain their operations through a difficult time.”

To read or download the guidance document and to see a list of eligible counties, click on this link on the IRS website:  http://www.irs.gov/pub/irs-drop/n-07-80.pdf.

Peru Trade:  The White House sent up implementing legislation to Congress on September 27^th for the U.S.-Peru Trade Promotion Agreement.  President Bush said, “The Agreement will create significant new opportunities for American workers, farmers, ranchers, businesses, and consumers by opening new markets and eliminating barriers.” 

Since the White House has submitted the formal language to Congress, the House now has 45 legislative days (in which Congress is in session) to move it through committee, or it will move to the floor automatically. The bill must then come before the full House in 15 session days. The Senate Finance Committee must report the bill within 15 days of the House action, or it is automatically discharged. The Senate must then vote on the bill within 15 days.

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 Peru Trade Promotion Agreement:

- 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.

- Peru has committed in writing to specific Sanitary and Phytosanitary (SPS) terms.

Beef comprises less than 8 percent of Peru’s total agriculture 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.

USDA Public Meeting on Import Safety:  USDA hosted a public meeting on the issue of Import Safety on October 1^st.  The Interagency Working Group on Import Safety, made up of senior Administration officials from 12 federal agencies was established by Executive Order on July 18, 2007, to conduct a comprehensive review of current import safety practices and to determine where improvements can be made. 

In remarks at the public meeting, Acting Secretary of Agriculture Chuck Conner outlined how safety procedures work in practice at food plants.  “USDA's Food Safety and Inspection Service uses a comprehensive system to address three keystones of safety (prevention, early intervention, and rapid response to problems) in our imports of meat, poultry and processed ag products,” said Conner. “It begins with a thorough analysis of each country's food laws and inspection systems to determine initial equivalents with our own safety procedures.  We continue with on-site audits of each country's food safety system to ensure equivalence is maintained as well.”

“We also conduct port-of-entry inspection of all meat, poultry and processed egg products coming into the United States. Every shipment that enters the country is checked by an FSIS inspector to confirm that it arrives from an approved country. The shipments are then checked for damage, accurate labeling, proper certification and, of course, the general condition of the shipment. About 10 percent of our imports of meat, poultry, and egg products as well are subjected to more intense inspection that includes microbiological analysis for pathogens…All of these efforts are geared towards one primary goal, maintaining a free flow of goods across our borders while assuring the safety and quality Americans simply expect and demand of their food supply,” said Conner.

“The United States is proud to offer our consumers the safest and most reliable food supply in the world,” said NCBA President John Queen in comments submitted this week.  “But we need to continually enhance and improve these existing systems, as well as be open to aggressively addressing any weaknesses.  The answer is not consolidating or building new agencies from scratch. The answer lies in science and risk-based decisions, fell funding, modernization, and measurable outcomes.” 

More information about the public meeting and activities of the working group is posted at www.importsafety.gov.

EPA Releases SPCC Rule for Farms and Ranches:  The EPA released this week its proposed rule on Spill Prevention, Control and Countermeasure (SPCC) for ag operations.  The program regulates large fuel tanks in an effort to prevent spills on farms or ranches. 

This rule applies to operations that store, transfer, use or consume oil or oil products if the operation’s above-ground capacity is greater than 1,320 gallons.  If storage capacity is 10,000 gallons or more, a Facility Response Plan is required and must be certified by a Professional Engineer.

NCBA is working within an agriculture coalition which includes organizations representing farmers, ranchers, farmer cooperatives, livestock operations and related agribusinesses to address the impacts of this rule on ag operations.  Public comments on the proposal will be accepted for 60 days following publication in the Federal Register, which is expected within two weeks.

ADA Meeting:  NCBA’s Director of Food Policy Phyllis Marquitz just returned from Philadelphia where she participated in the American Dietetic Association’s (ADA) Food & Nutrition Conference and Expo, September 29-October 2.  While in Philadelphia, Phyllis and the NCBA team promoted the 29 lean beef cuts and beef’s naturally nutrient-rich qualities (visit www.beefitswhatsfordinner.com/nutrition for more info!). 

Phyllis also attended a number of dietetic and nutrition sessions dealing with health trends in food products.  One session of note was presented on “Nutrient Density: Applying Developing Science to Improve Public Health” highlighting the MyPyramid concept of Americans getting more nutrients for their calories.   NCBA participates in the Nutrient Rich Foods Coalition (visit http://www.nutrientrichfoods.org) and we are excited to educate dietetics professionals about the benefits of beef as part of a healthy diet.  More information on the conference is available on ADA’s website at www.eatright.org or by clicking on this link:  http://www.eatright.org/cps/rde/xchg/ada/hs.xsl/7539_ENU_HTML.htm.

Conservation Meetings:  NCBA’s Director of Legislative Affairs Stacey Satterlee is in Denver this week for meetings of the Partnership for Rangeland Trusts (PORT) and the Land Trust Alliance’s National Land Conservation Conference.  Stacey is scheduled to give a presentation as part of the “Permanently Protecting Private Land Resources” workshop. She will give a state and national livestock association perspective on working with agricultural landowners and agricultural organizations. 

The Partnership for Rangeland Trusts (PORT) is an association of locally-based, agriculturally-oriented land conservation organizations established to leverage resources to enhance the voluntary conservation and stewardship of America’s ranchlands.  More information on PORT is available at www.maintaintherange.com.

The Land Trust Alliance promotes voluntary private land conservation to benefit communities and natural systems. The Alliance’s goals include expanding the pace of land conservation through tax incentives, building strong land trusts, defending the permanence of conservation easements, and ensuring that the work of land trusts is as strategically directed as possible. More information is posted at www.lta.org.

U.S. Hide, Skin and Leather Association Meeting:  NCBA’s Chief Economist Gregg Doud is in Chicago this week for the United States Hide, Skin and Leather Association’s 28th annual convention October 4-5.  Doud is scheduled to talk to attendees about the impacts of grain prices and the ethanol industry on the livestock sector.  Visit www.ushsla.org for more information.

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 and network with more than 5,000 attendees from across the country and will help 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 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 2–6, we cover the resignation of U.S Agriculture Secretary Mike Johanns.  Also, Randy Blach of Cattle Fax discusses an issue that is taking a real economic toll on cattlemen across the country, land prices.  We’ll visit the Yolo Land and Cattle Company, winners of the Region VI Environmental Stewardship Award.  Plus, we’ll take you to Maine to learn how the IRM Red Books are produced.

Fort Dodge Animal Health and the National Cattlemen’s Foundation are teaming up to provide five legacy scholarships for students interested in animal science and large animal veterinary medicine.  We’ll visit Kansas State University to learn more about the shortage of students studying to become large animal veterinarians.  Plus, learn how you can contribute to the Fort Dodge Animal Health Legacy Scholarship Program.

In the next episode airing Oct. 9-13, Cattlemen to Cattlemen reports on the Topps Meat Company ground beef recall. Dr. Bo Reagan, NCBA VP of Research and Knowledge Management discusses the beef industry’s efforts to fight E. coli contamination, 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 ESAP winner, and Brian Baxter provides an update on the latest line of Beef Value Cuts.

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.