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).

Drought Efforts:  The Senate is pushing varying forms of drought and disaster relief and held press conferences this week to urge support for these efforts.  NCBA has been actively working to obtain much-needed assistance for ranchers suffering from drought and other natural disasters.  Some of the legislative efforts NCBA is supporting include: 

• Senator Conrad Burns’ (R-Mont.) package, the Emergency Wildfire and Farm Relief Act of 2006 (S. 3860) specifies an additional $200 million for the Environmental Quality Incentives Program (EQIP) and $100 million for the recently announced Livestock Assistance Grant Program (LAGP). 
• Senator Kent Conrad’s (D-N.D.) bill, the Emergency Farm Relief Act of 2006 (S. 3855) includes $30 million to address the current needs of the Emergency Conservation Program.  The Conrad bill already has 22 cosponsors in the Senate.  This language was also filed as an amendment to the SAFE Port Act (H.R. 4954).   Senator Ben Nelson (D-Neb.) filed the amendment September 12 aimed at providing $6.5 billion in emergency agricultural disaster assistance. 

IRS Announces Tax Relief for Drought-Stricken Cattlemen:  In related news, the Internal Revenue Service (IRS) announced September 8 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 during 2002.  In the past, NCBA worked to support the American Jobs Creation Act which contained a provision to amend Section 1033 (e) of the Uniform Tax Code. This amendment extended the tax deferment period for weather-related sales of livestock – known as involuntary conversions – from two years to four years, and gives the Secretary of the Treasury authority to further extend the deferral period.  This IRS announcement (Notice 2006-82) provides relief not only for producers who have already been forced to liquidate herds, but also for any producer who is currently faced with selling livestock as a result of drought.  NCBA has been pushing for this tax relief for years, and this is a huge victory for cattlemen who have been impacted by continuing drought conditions. 

Superfund Bills Gain More Support in Congress:  Cattlemen continue to urge support for a pair of bills in Congress which will clarify that manure should not be regulated under Superfund laws.  In the Senate, S. 3681 has 30 co-sponsors.  In the House, H.R. 4341 currently has 181 co-sponsors with Reps. Patrick McHenry (R-N.C.) and Patrick Tiberi (R-Ohio) signed on this week!  Visit http://capwiz.com/beefusa to see a full list of co-sponsors.  If your Senator or Representative has not yet signed on as a supporter, send a message to them asking them to sign on and communicate to them about the importance of this issue! 

Farm Bill Development:  The House Ag Committee hosted a pair of hearings this week related to Farm Bill development.  In a hearing September 13, the Committee reviewed Federal Farm Policy with agricultural processors and suppliers.  On September 14, the Subcommittee on General Farm Commodities and Risk Management held a hearing on federal farm policy with former Secretaries of Agriculture.

NCBA’s President and Missouri Cattleman Mike John is scheduled to testify next week, September 20, before the full House Ag Committee on Farm Bill development. 

USDA Releases Farm Bill Analysis:  In related news, USDA released September 13 the fifth and final paper in USDA's Farm Bill analysis, "Strengthening the Foundation for Future Growth in U.S. Agriculture."  Agriculture Secretary Mike Johanns said this comprehensive analysis prepared by USDA economists outlines the key factors that will affect future growth in U.S. agriculture:  international trade, research and development, protection of agriculture from pests and diseases, and challenges in preparing the next generation of farmers.  "As we discuss a new Farm Bill, we must consider how best to support future growth in agriculture. This analysis highlights opportunities to do so by improving our global competitiveness, making research and agriculture protection programs more effective and facilitating the transition of farms to the farmers of tomorrow," Johanns said. 

To view any of USDA's analysis papers and other Farm Bill related documents, visit www.usda.gov/farmbill.  To view NCBA's Farm Bill related information, visit www.beefusa.org/goveFarmBill.aspx.

Korea Announces Resumption of Beef Trade: Japan’s Ministry of Agriculture and Forestry announced September 8 they will lift the ban on U.S. beef products and will begin allowing boneless beef from animals less than 30 months of age.  In a press statement, NCBA said “This is a small step toward fully normalizing trade based on scientific principles, and we will not rest until South Korean consumers have access to all the same beef cuts they enjoyed prior to December 2003.  Bone-in beef and variety meats historically accounted for roughly half of the total value of U.S. beef exports to South Korea.  A continued ban on these top-selling products in Korea is unacceptable.”

Korea Re-Opening Export Requirements: In related news, the Food Safety and Inspection Service has now officially posted the Revised Export Requirements for South Korea online at www.fsis.usda.gov/regulations_&_policies/export_information/index.asp. 

WTO Talks:  USTR Chief Agricultural Negotiator Richard Crowder addressed members of the Washington International Trade Association today on the continued World Trade Organization (WTO) Doha Round talks.  Negotiations were abandoned in late July due to the inability to resolve ag trade issues, but Ambassador Crowder assured the group that high-level talks continue to take place.  "Many people are working hard to salvage these negotiations," Crowder said.  He stressed that the Administration maintains its goal of obtaining better offers from our trading partners on market access, and the United States will continue to pursue good trade policy that ensures there are no loopholes in the final agreement. NCBA was in attendance at today's event.  NCBA has long followed the WTO talks and has stressed the importance of these multilateral negotiations as the best means toward increasing market access through tariff reduction.

In related news, U.S. Trade Representative Susan Schwab discussed restarting the negotiations with several of her counterparts during a meeting in Rio de Janeiro, Brazil earlier this week.  Ambassador Schwab urged members of the G-20 to take a more active role in the Doha talks, and she hopes they can provide new involvement and possible resolutions.  "Frankly, the G-6 has not been able to deliver a solution,” said Ambassador Schwab. “We need to add new voices to this dialogue and find open minded trading partners that share the goal of an ambitious Round. The United States put forward a bold agriculture proposal to cut both tariffs and trade-distorting domestic supports. Robust market access is the key to increasing economic opportunities and development."

The members of the G-20 are Argentina, Bolivia, Brazil, Chile, China, Cuba, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Tanzania, Thailand, Uruguay, Venezuela, and Zimbabwe. It is coordinated by Brazil and focuses on WTO agriculture negotiations.

Canadian Trade:  Secretary of Agriculture Mike Johanns and Canadian Minister of Agriculture Chuck Strahl met in Washington September 13 to discuss issues affecting the agricultural sectors in both countries.  In a joint statement following the meeting, Johanns and Strahl touched on the issue of cattle and beef trade between Canada and the United States.  "While the most recent cases of Bovine Spongiform Encephalopathy (BSE) in Canada are consistent with international experience, they have been an unfortunate setback. Normalizing the beef and cattle trade in North America remains an objective shared by industry on both sides of the border and we emphasized the importance of being expeditious and thorough on the second rule to normalize trade as soon as possible.”

The two also discussed the challenges being faced regarding WTO negotiations.  "Both governments are committed to action that creates opportunities for farm families. Canada and the United States have an unparalleled level of cooperation that benefits our countries and we intend to ensure this continues."

NAS Study on Childhood Obesity:  The United States needs more national leadership on the issue of childhood obesity and more focus on evaluation of programs and achieving long-term goals according to a report released this week by the National Academy of Sciences.  The report was prepared by the Committee on Progress in Preventing Childhood Obesity, a committee of the Institute of Medicine. Among the key findings:

• Government, industry, communities, schools, and families have developed many initiatives to respond to the growing problem of childhood obesity, but efforts remain fragmented. Moreover, most of the policies and programs are not being evaluated, making it difficult to identify effective interventions.
• Several federal policies have been changed to encourage better nutrition and physical activity in schools, many communities have built sidewalks and bike paths to encourage physical activity, and national awareness of the problem is increasing. But positive changes in the health outcomes of children and youth, as measured by body mass index, will require years of sustained efforts, systematic evaluation, and adequate resources.

The report, "Progress in Preventing Childhood Obesity: How Do We Measure Up?" is posted at www.nap.edu/catalog/11722.html.

U.S.-Mexico Cross Border Working Group Meetings:  NCBA President Mike John and Chief Economist Gregg Doud are traveling to El Paso, Texas and Chihuahua, Mexico for meetings with the U.S.-Mexico Cross Border Working Group.  The international contingent is meeting to discuss top North and Central American trade and animal heath issues affecting U.S. and Mexican cattle producers.  Mexico is currently our top export market for U.S. beef and beef products.  In 2005, the United States exported 282 thousand metric tons (621.9 million pounds) valued at over $881 million. 

Cooperative Conservation Listening Sessions Ongoing: Listening sessions on cooperative conservation and environmental partnerships hosted by the Secretaries of Interior, Commerce and Agriculture, the Administrator of the Environmental Protection Agency, and the Chairman of the White House Council on Environmental Quality continue this month.  Discussion will focus on how the government can better work with local communities and landowners to protect the environment and promote conservation.  In a joint statement, the agencies said they want to better respect the interests of people with ownership in land, water, and other natural resources. 
For more information on each location, go to: http://cooperativeconservation.gov/sessions.
Sessions are scheduled as follows:

• Colorado Springs, Colorado, 11 a.m., Sept. 15, 2006
• Virginia Key, Florida, 10:00 a.m., Sept. 15, 2006
• Pottstown, Pennsylvania, 10 a.m., Sept. 18, 2006
• Pinedale, Wyoming, 1 p.m., Sept. 19, 2006
• Brewer, Maine, 4 p.m., Sept. 20, 2006
• Brunswick, Georgia, 1 p.m., Sept. 21, 2006
• Orlando, Florida, Time TBD, Sept. 25, 2006
• Waco, Texas, 10 a.m., Sept. 27, 2006
• Colton, California, 10 a.m., Sept. 28, 2006

U.S. BSE Surveillance:  USDA’s Enhanced BSE Surveillance Program continues to test targeted animals identified as most likely to have the disease.  Since June 1, 2004, the program has tested 785,638 cattle and has found only two confirmed cases, evidence that our safeguards are working and the prevalence of BSE in the United States 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 Camarra or Karen Batra at 202-347-0228, tacamarra@beef.org or kbatra@beef.org.