CattleNetwork.com
11-02-07
Cattlemen's Capitol Concerns: Farm Bill, Captive Supply Reform Act, Edward
Schafer
Cattlemen Want Packer Ban Stripped From Senate Farm Bill: As the Senate
prepares to consider their version of the 2007 Farm Bill next week, of greatest
concern to cattlemen is legislative language which would place a ban on packer
ownership. This language would prohibit packers from owning, feeding or
controlling cattle more than 14 days before slaughter. NCBA opposes this
language due to the larger unintended consequences it could have our on
consumer-driven, producer-led marketing alliances.
NCBA has had member policy for nearly ten years to oppose legislation that
would alter the competitive structure of the cattle industry or limit cattlemen’s
marketing options. In communications to Senate offices last week, hundreds of
NCBA cattle producer-members voiced their strong opposition to the
amendment. “If I want to sell my cattle as feeder calves, I want more buyers not less - competing on the purchase of my cattle. In order to get paid more for a
better product, we have found that working directly with a packer and sharing the
risk on the performance of the cattle we, our customers, the packers and the
consumers all benefit,” wrote an NCBA member. “Those who claim to be shut
out of the market by these mutually-agreed upon arrangements are upset that
they can no longer pass off their ‘Pig-In-a-Poke’ low quality commodity cattle for
the same cash price as received by more progressive and quality minded
producers.”
“This amendment hurts the entrepreneurial spirit of cattle ranchers by inhibiting
their participation in marketing alliances which can add value to their cattle,” says
Colin Woodall, NCBA’s executive director of legislative affairs. “The proponents
of this packer ban want to put the government in control of the cattle producer’s
business instead of letting the market reward a producer for the work he’s done
to produce higher quality beef.”
NCBA will be working to strip this language from the final Farm Bill and urges
cattle producers to aggressively communicate with their Senators about the
consequences of this language. NCBA members can contact Elizabeth
Bostdorff, NCBA’s manager of policy affiliate relations in NCBA’s Washington,
D.C. office at 202-347-0228 or ebostdorff@beef.org for more information on
Farm Bill issues, and for assistance in contacting their Senators.
Vote No on the “Captive Supply Reform Act”: In related news, NCBA is working
to communicate with Senators about the negative impacts of legislation dealing
with Captive Supply which could be added to the Senate Farm Bill next week.
This provision, being championed by Senator Michael Enzi (R-Wyo.), would
outlaw the ability for cattle producers to engage in confidential, one-on-one
business deals with prospective buyers. Instead, cattle producers would have to
conduct all of their business in open markets with competitors and neighbors
looking on, watching, and engaging in the process. The bidding process would
also be required to include at least one blind bid. In addition, forward contracts
would be prohibited for more than 40 head of cattle and prohibited from using a
basis pricing mechanism.
“Forward contracts, as well as other alternative marketing arrangements, are the
basis for the marketing alliances that allow producers to get paid for the value
they add to their cattle by investing in good genetics and implementing sound
herd management practices,” says NCBA’s Executive Director of Legislative
Affairs Colin Woodall. “These marketing alliances are providing the consumer
with the high quality beef they demand, while allowing producers to get more
money for their cattle. If these alliances and arrangements are lost due to
intrusion by the government on our business practices, then it is the consumer
and cattle producers that lose the most.”
As the Senate prepares to debate their Farm Bill package on the Senate floor
next week, NCBA urges cattle producers to contact their Senators about the
negative impacts of letting the government control the cattle market. NCBA
members can contact Elizabeth Bostdorff, NCBA’s manager of policy affiliate
relations in NCBA’s Washington, D.C. office at 202-347-0228 or
ebostdorff@beef.org for more information on Farm Bill issues, and for assistance
in contacting their Senators.
Cattlemen Laud Disaster Assistance Package: NCBA is supporting a Permanent
Disaster Relief Trust Fund that was approved by the Senate Finance Committee
as part of the “Heartland, Habitat, Harvest, and Horticulture Act of 2007” (S.
2242). Of interest to cattle producers, the permanent program includes:
- disaster payments to help offset pasture and grazing forage losses resulting
from drought or other inclement weather,
- permanent authority for the Livestock Indemnity Program (LIP) which would
compensate producers for disaster related death loss at a rate of 75 percent the
market value of the animal at the time of death, and
- an Emergency Assistance component allowing USDA to use up to $35 million
annually to provide emergency relief to eligible producers who suffered
substantial losses but whose county of residence was not covered by a formal
disaster declaration.
“Ranchers struggle with difficult management, movement and sale decisions in
the midst of a disaster, and that situation is worsened by the uncertainly of
whether or not Congress will be able to provide any meaningful assistance,” says
Jason Jordan, NCBA’s manager of legislative affairs. “This disaster assistance
package is permanent in nature as opposed to previous approaches of providing
producers with assistance on an ad-hoc basis well after a catastrophic event.”
Cattlemen are grateful to Senator Max Baucus (D-Mont.) for taking the lead on
championing this amendment for cattle producers who have been hurt by recent
natural disasters.
Bush Nominates Edward Schafer to be Ag Secretary: President Bush
announced October 31st the nomination of Edward Schafer, former North Dakota
Governor, to be Secretary of Agriculture. If confirmed, Schafer would replace
former Ag Secretary Mike Johanns who resigned on September 20 to pursue a
Senate bid. In the interim, Deputy Secretary Chuck Conner has been serving as
Acting Secretary.
“Ed Schafer has been a strong advocate for North Dakota cattle producers and
for American agriculture. He is keenly aware of the challenges being faced by
rural communities and especially by our nation’s ranchers and farmers,” says
NCBA Vice President of Government Affairs Jay Truitt. “I know from speaking
with many of our North Dakota members of his efforts to help agriculture and
farming communities during some very difficult times. Our cattlemen can be
assured that Schafer will look to them to provide input and to establish an open
dialogue about the policies that affect their operations.”
Schafer served as governor of North Dakota from 1992 to 2000. During that
time, he gained experience dealing with issues such as disaster assistance,
international trade and renewable energy policy – all issues at the forefront of
today’s political environment.
“He will bring a fresh perspective to USDA at a time when American agriculture is
facing many new challenges in policy development and opportunities in
innovation and technology,” said Truitt. “This is a critical time for U.S. agriculture,
and we’re looking forward to working with Mr. Schafer to help guide the cattle
and beef industry into the future.”
House Committee Passes Peru Trade Agreement: The House Ways and Means
committee unanimously approved the U.S. - Peru Trade Promotion Agreement
this week setting the stage for the agreement to be considered by the full House
next week.
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 USDAFSIS.
- 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.
Status of Other Pending Trade Agreements: The House Small Business
Committee held a hearing today, November 1st on "Evaluating the Impact of
Pending Free Trade Agreements upon U.S. Small Businesses." The Committee
is looking at the impacts of the free trade agreements currently before the
Congress including Peru, Panama, Colombia and South Korea.
“It is a critical time to engage in this discussion as Congress is currently
considering the ratification of these four treaties,” said Committee Chair Nydia
Velázquez (D-N.Y.). “Given the resources expended to promote cross-border
commerce, it is important to determine whether these agreements should serve
as models for future international commitments.”
NCBA is urging for passage of the Peru, Colombia, and Panama free trade
agreements. These extremely well negotiated agreements reduce – and
eventually eliminate – all tariffs for U.S. beef, giving U.S. producers the ability to
compete aggressively against Argentinean and Brazilian beef in these markets.
In the wake of the Peru agreement approval, House Ways And Means
Committee Chairman Charlie Rangel (D-N.Y.) said that he wants to build support
for additional trade agreements, including the U.S.-Colombia trade pact, so the
House might consider them as soon as next year.
Congressional Delegation to Visit Colombia: In related news, Acting U.S.
Secretary of Agriculture Chuck Conner and U.S. Trade Representative Susan
Schwab will lead a congressional delegation to Colombia, November 2-4. The
trip is part of the Administration's efforts to help educate Members of Congress
about the status of issues related to our pending free trade agreement with
Colombia.
"Obvious trade benefits for U.S. agricultural producers in this $870 million a year
market will be achieved through immediate elimination of variable tariffs with half
our exports entering duty-free as soon as the agreement is implemented and
most tariffs phased out in 15 years, all by 19 years," said Conner.
America's two-way trade with Colombia reached $16 billion in 2006, making
Colombia our fifth largest trading partner in Latin America and our largest export
market for U.S. agriculture products in South America.
House Tax Panel Approves One-Year AMT Patch, Extenders: The House Ways
and Means Committee approved today, November 1st, H.R. 3996, the Temporary
Tax Relief Act of 2007. Included in the legislation is a one-year “patch” for the
Alternative Minimum Tax (AMT). Although the AMT was originally intended to
target only the highest income earners, it was not indexed to inflation. It is
estimated that without Congressional action, an additional 23 million taxpayers
would be saddled with the burden of paying the tax in 2007. NCBA policy
supports a full repeal of the AMT.
In addition, H.R. 3996 would extend a number of expiring tax provisions for one
year including a deduction for state and local sales taxes in states without an
income tax and an enhanced deduction for the donation of qualified conservation
easement donations. With regard to the conservation easement provision,
NCBA has strongly supported legislation in the House (H.R. 1576) and Senate
(S. 469) that would make this beneficial deduction for farmers and ranchers
permanent. At present, the Senate Finance Committee has approved legislation
which contains a permanent extension, and it is awaiting further action on the
Senate floor.
Ag Committee Hearing on Packing Technologies: The House Agriculture
Committee held a hearing on Tuesday, October 30th, to review technologies in
the meat industry. “Over the past several decades, technology has improved the
quality and safety of meat products available to consumers,” Committee
Chairman Collin Peterson said. “This hearing is a good opportunity to educate
the Committee and the public about some of these new and emerging
technologies being used in the meat industry.”
The Committee was especially interested in hearing about the use of carbon
monoxide (CO) in modified atmosphere packaging (MAP) a food packaging
technology which has been utilized commercially for years to better preserve
products at retail.
“The use of MAP-CO for fresh meat offers numerous significant advantages
including improved product appearance, better flavor and greater tenderness and
suppression of bacterial growth,” testified Dr. Joseph Sebranek, Ph.D. and a
professor of meat science at Iowa State University. “This technology is
establishing a track record that has been free of problems and has not been an
issue with consumers. It seems to me that it is most appropriate to let the
marketplace decide the ultimate success or failure of this technology.”
Health Care Bill Dropped in the Senate: Senators Jeff Bingaman (D-N.M.) and
Orrin Hatch (R-Utah) have introduced much-anticipated Health Care reform
legislation in the Senate. The Equity for Our Nation's Self-Employed Act of 2007
(S. 2239) was introduced on October 26th. This legislation seeks to allow the
self-employed to fully deduct their health insurance premiums for the purposes of
both income tax and self-employment tax.
“Self-employed individuals are the only segment of the business population who
are taxed on their purchase of health insurance. This is an unfair situation, and
we need to fix it as soon as possible,” Bingaman said.
“The success of the American economy depends on entrepreneurs,” Hatch said.
“The spirit of U.S. entrepreneurship has given us the technology and prosperity
we enjoy today. Yet because of the staggering cost of providing health care for
their families, many entrepreneurs cannot quit their day jobs to pursue their
dreams. If enacted, this bill could go a long way toward helping such individuals
take the risk of starting or keeping their own businesses.”
In the House, Reps. Ron Kind (D-Wisc.) and Wally Herger (R-Cal.) introduced
H.R. 3660, “The Equity for Our Nation's Self-Employed Act” on September 25th.
NCBA members developed policy specifically calling for “one hundred percent
deductibility of health insurance costs for self-employed persons.” NCBA is
working to support these bills in both houses of Congress.
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.a
spx.
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 while networking with more than 5,000 attendees
from across the country and helping 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 college 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 30 – November 3, we’ll provide an update
on the Senate Farm Bill and profile Montana Rancher Bill Donald, vice president
of NCBA’s policy division. Jim Kelley of Superior Livestock discusses the
growing appeal of video cattle auctions, and Dr. Lee Dickerson of Purina Mills’
LongView Animal Nutrition Center explains the importance of body condition
scoring.
On next week's edition of NCBA’s Cattlemen to Cattlemen airing November 6 10, we’ll take a look at some of our favorite stories brought to us by Pfizer Animal
Health. Topics include the value of pre-conditioning calves and how to keep
calves healthy.
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.