LEGISLATORS TO HEAR FROM CATTLE PRODUCERS OVER AUGUST BREAK

• Meat Labeling. The Senate has approved a bipartisan measure that would require labeling of imported beef and U.S. beef, and it will be addressed by the House as the appropriations bill moves through conference. Currently, if imported beef is further processed, or if live cattle are imported direct to slaughter, it is sold as U.S. beef. In fact, nearly 13 percent of the beef sold as U.S. meat is actually from imported beef or beef from imported slaughter cattle. Labeling will increase competition at the retail meat case and ultimately will improve the beef product.

• Mandatory Price Reporting. The Senate has approved mandatory reporting of live cattle prices, boxed beef prices and beef exports and the House will address them in the appropriations bill. NCBA policy does not support mandatory reporting of live cattle prices at this time, however, addressing current longstanding deficiencies in the accurate, timely reporting of beef exports and incomplete price information for boxed beef will eliminate a competitive disadvantage for U.S. cattlemen relative to other major beef exporting countries and reduce an information disadvantage for cattlemen relative to packers.

• Grazing. Cattle producers were successful in securing House approval of the Forage Improvement Act last fall -- the first time grazing legislation has been passed by the House since 1978. This legislation recently was approved by the Senate Energy Committee and now is ready for debate by the full Senate. The bill codifies a grazing fee that is 36 percent higher than the current fee and requires science-based range monitoring and management. The measure will ease the fragmentation and development of open spaces in the West by giving ranchers more stability.

• International Trade. Congressional leadership in the House has scheduled a September vote on renewal of trade negotiating authority, or fast-track. Fast-track would give the United States the ability to negotiate new trade agreements, fix those provisions not working in current agreements, and maintain and increase foreign markets for U.S. beef. Legislators are also expected to address funding for the International Monetary Fund, which would help stabilize foreign markets during financial crises and would encourage them to continue importing U.S. beef.

• Taxes. Senator Majority Leader Trent Lott and other farm state and western senators last week introduced a bill that addresses several NCBA tax priorities. The bill would reduce the capital gains tax rate to 15 percent from the current 20 percent. The bill also would make income averaging permanent and would provide beef producers with tools to better manage cyclical income by allowing them to store tax-deferred income in risk-management accounts. Cattlemen also will continue to urge complete elimination of death taxes.

"Cattlemen need to urge Congress to address these issues before adjournment, because if Congress doesn't act this year, we will have to start all over in 1999 with a new Congress," Willingham said.