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).

Japanese Trade:  NCBA continues working with key Senate leaders as they develop legislation calling for economic sanctions on Japan, and today reports solid support from lawmakers. If no progress is made in Japan, NCBA expects legislation regarding such sanctions to be filed in the Senate before the end of the month.

Senator Kent Conrad (D-ND) has called Japan’s embargo of U.S. beef “illegal under World Trade Organization rules.” In an October 4 press conference, Sen. Conrad said he would seek stiff trade sanctions against Japan and will lead a bipartisan group of lawmakers in writing legislation if Japan does not open its important domestic market to U.S. beef by the end of the year.  Senator Pat Roberts (R-KS) has rounded up 20 Senators who are together sending a letter to U.S. Trade Representative Rob Portman asking him to “employ retaliatory economic measures against Japan.”  NCBA producer-members would like to thank Senator Roberts for his leadership on this issue. In the House, NCBA continues to rally support for House Resolution 137 introduced by Rep. Jerry Moran (R-KS) which calls for Japan to meet its trade obligations under the October 2004 agreement or be subject to retaliatory economic measures. 

Pointing to losses by the U.S. cattle and beef industries estimated at $1.7 billion annually since Japan closed its market to U.S. beef, NCBA urges “it is unacceptable for this prolonged embargo to cause further economic damage to our cattlemen.”

Cattlemen Urged to Contact Congress About Japan Over Recess:  Most U.S. Senators and Representatives will head to their home states next week for the Columbus Day recess. NCBA urges cattle producers to take advantage of this opportunity and contact Members of Congress in their home offices about the Japanese embargo on U.S. beef. This is a chance for cattle producers to speak one-on-one with Congressional leaders, urging the importance of resuming beef trade with Japan as soon as possible. For information on how to contact your members of Congress at their home offices, NCBA members can contact Jenni Beck at (202) 347-0228 or jbeck@beef.org.

Japan Food Safety Commission Stalling Continues:  The Japanese Food Safety Commission (FSC) Prion Subcommittee held another meeting October 4 to discuss the resumption of U.S. beef exports to Japan and despite media reports, NCBA says they see “nothing new” from statements coming out of the recent FCS meeting. “For almost two years now, we've heard rumors of timelines, talk of progress but have yet to see legitimate actions made to lift this long-standing unscientific ban on our beef,” says NCBA. “We welcome any news that realistically signifies an end to this ban as soon as possible. Japanese consumers are eager to enjoy our high-quality beef, just like U.S. families do each night, as soon as possible.”

NCBA has patiently waited for any sign of forward progress from the FSC subcommittee since the independent, non-governmental group began convening in May 2005. NCBA remains skeptical about this independent oversight group's commitment to resolving their outstanding issues and finalizing their report to the Japanese government on the safety of U.S. beef and beef products.

Farm Bill Update: USDA Secretary Mike Johanns spoke to commodity groups in Washington D.C. today regarding the 2007 Farm Bill. He shared with participants what was learned during this year’s Farm Bill Forums, conducted in 26 states over the past three months. “I have heard some very strong opinions expressed by some very passionate people. These thoughtful comments have caused me to step back and think beyond the boundaries of our current farm policy,” said Johanns. The secretary says he has heard strong support for rural development efforts, conservation, and increased market access for U.S. agricultural products. “On the other hand, we are hearing a range of opinions when it comes to our farm support programs,” said Johanns. “Soon, we must decide as a nation whether to embrace a new age of agriculture or continue relying on a policy structure that was conceived 75 years ago, when the face of agriculture was very different from what it is today…We must use the WTO to force open markets for U.S. products. There is absolutely no doubt in my mind that we can show tremendous support of agriculture without trade-distorting subsidies. I am confident that America's farmers and ranchers can compete with any farmer or rancher in the world if given a fair opportunity.” NCBA applauds Secretary Johanns’ willingness to look for new and creative solutions regarding farm programs, his support for conservation and his commitment an aggressive export policy.

Feed Rule Changes:  The Food & Drug Administration (FDA) announced October 4 proposed revisions to their animal feed regulations aimed at further strengthening measures currently in place to prevent the spread of BSE.  The FDA is proposing to prohibit from use in the food or feed of all animals certain high risk ruminant materials that could potentially carry the BSE agent including: brains and spinal cords from cattle 30 months of age and older or from cattle of any age not inspected and passed for human consumption; the carcass of cattle not inspected and passed for human consumption if the brains and spinal cords have not been removed; mechanically separated beef derived from materials prohibited by this proposed rule; and tallow derived from the materials prohibited by this proposed rule if the tallow contains more than 0.15 percent insoluble impurities.  The FDA is not proposing to prohibit the use of blood by-products as the World Organization for Animal Health (OIE) has indicated that BSE is not transmitted by these products.

NCBA points to stringent BSE safeguards already in place and diligently enforced in the United States for the past two decades. These safeguards include the ban of ruminant-derived protein in cattle feed and removal of specified risk materials from the food supply. Since June 2004, USDA’s Enhanced BSE Surveillance Program has tested 484,618 targeted animals at highest risk for BSE and has found only one confirmed case, evidence that our system is highly effective.  NCBA is reviewing the proposed revisions and preparing comments, but insists that any changes must reflect what is needed to best protect the U.S. cattle herd.  Anything other than a science-based approach will be harmful to cattle producers and offer no real benefit to consumers or our industry.

Senate Agriculture Budget Reconciliation:  Today October 6 the Senate Agriculture Committee was expected to begin discussions of proposed budget cuts for the next five years but the meeting has been rescheduled for a later date, TBA. Senate Agriculture Committee Chairman Saxby Chambliss (R-GA) stated "some committee Senators said they were concerned at the cost of extending the MILC program at the expense of other commodity programs. This committee is still required to choose where $3 billion in 5-year deficit reduction cuts will come from. As a committee, we must participate with other committees that are cutting the budget, or we lose the right to choose our cuts when the Congress votes on budget reconciliation.” Proposed cuts include across the board cuts in all titles of approximately 2.5%, including an acreage cap for the Conservation Reserve Program (CRP), and a slight reduction in funding for FY 2006-FY 2010 Environmental Quality Incentives Program (EQIP). The spending reductions will add up to estimated budget savings of $3.1 billion.

CAFTA Update: On September 28-30, the Assistant U.S. Trade Representative for the Western Hemisphere Regina Vargo and the Vice Ministers from the Central American countries and the Dominican Republic met to discuss implementation of the Central American Dominican Republic Free Trade Agreement (CAFTA-DR).  Ideally, the goal is to have the trade agreement become effective on January 1, 2006, but issues are still being resolved and all governments need to approve the final legislation. In September, the Dominican Republic passed the agreement, joining El Salvador, Guatemala, Honduras and the United States. NCBA looks forward to the opening of these new export markets for U.S. beef.

FTA with Oman: U.S. Trade Representative Rob Portman and Omani Minister of Commerce and Industry Maqbool Bin Ali Sultan announced the completion of a comprehensive Free Trade Agreement (FTA) between the two nations. Oman is the fifth Middle Eastern country to have negotiated such an agreement with the United States. The FTA is designed to eliminate market barriers and expand trade between both countries. "This is a high-quality, comprehensive free trade agreement that will contribute to economic growth and trade between both countries,” said Portman. “This Agreement will support and accelerate the market liberalization that Oman started as part of its high-standard accession to the World Trade Organization in 2000."

Trade with Bahrain:  The Senate Finance Committee hosted a hearing today October 6 to review the U.S. – Bahrain Free Trade Agreement (FTA).  President Bush is pushing to send the FTA with Bahrain (a small nation in the Persian Gulf) to Congress this year making it the first Persian Gulf country to implement a deal with the United States.  The Bahrain FTA is expected to pave the way for future agreements with other Persian Gulf countries, thereby increasing the international market for high-quality U.S. beef products. 

USDA to Host Meeting on Animal ID:  The USDA will host a public meeting to discuss development of a privatized animal movement tracking database under the National Animal Identification System. The meeting, open to stakeholders and members of the public, will be held October 12, in Kansas City, Mo. Topics to be discussed at the meeting include:

• The formation of a new mechanism to provide ongoing oversight of the privatized animal tracking database, representing all necessary industry sectors.
• The required system specifications and user requirements necessary to support animal health surveillance programs and trace-back investigations.

More information is posted at http://www.aphis.usda.gov/lpa/pubs/sa_ahtrackmeeting.html.

Mandatory Price Reporting:  The mandatory price reporting law expired last Friday night, September 30, 2005, after Congress could not agree to changes in the legislation and adjourned for the weekend. Reports say companies who previously reported prices are continuing to do so voluntarily.

NCBA Throws 19th Annual Fall CCC Event: More than two hundred guests are expected at NCBA’s upcoming “Corn, Cotton, Cattle (CCC)” event scheduled for this Sunday afternoon, October 9, 2005. This is the 19th Annual CCC that NCBA has organized and sponsored, along with the National Corn Growers and the National Cotton Council. The event is a great opportunity for members of Washington, D.C.’s food and agriculture community to gather with policymakers and media representatives while celebrating the abundance of autumn agriculture.  This year’s event will be at a new location, Whitestone Farm in Aldie, Virginia.

NCBA would like to give special thanks to: MD cattleman and NCBA member Ned Sayre for donating pumpkins; Cargill for their generous donation of beef; the U.S. Apple Association for donating apples; and the New Zealand Embassy for donating wine this year! We look forward to seeing everyone on Sunday October 9th. For more information on the new CCC picnic location, go to www.whitestonefarm.com

UCONN Conference on TSE Diseases:  NCBA’s Chief Economist Gregg Doud is in Storrs, Connecticut for a one day meeting on “Mad Cow and Related TSE Diseases: Science, Risks and Public Policy” October 6.  The conference, hosted by the University of Connecticut’s College of Agriculture and Natural Resources Cooperative Extension System, will include a presentation by Doud on “Economic impacts of false positives, presumptive positives and confirmed cases of BSE in the United States.”

Congressional Schedule: The U.S. House of Representatives was on recess this week, October 4 and 5, for observance of Rosh Hashanah.  Both Houses are scheduled to be on recess next week, October 10-14 for Columbus Day and the Yom Kippur holiday. 

NCBA-PAC/PEF to Hold First Annual All-Breed Bull Auction:  Don’t miss your chance to bid on some of the best beef genetics and seed stock in the nation while supporting NCBA-PAC.  In conjunction with the 2006 Cattle Industry Convention & Trade Show, NCBA’s PAC/PEF will host a bull sale during the “exclusive trade show hours” on 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:

• Aristocrat Angus Ranch, Platteville, Colorado
• Edward Angus Ranch, Denton, Montana
• Ekker Herefords, Vernon, Utah
• Fink Beef Genetics, Manhattan, Kansas
• Lyons Ranch, Manhattan, Kansas
• Three Tree Ranch, Sharpsburg, Georgia

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

BSE Surveillance:  To date, USDA’s Enhanced BSE Surveillance Program has tested 484,618 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.