Cattlemen's Capitol Concerns<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

February 28, 2008

The Cattlemen’s Capitol Concerns (CCC) is a weekly report from <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />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.

Groseta Participates in Korean Inauguration: NCBA President and Arizona cattleman Andy Groseta traveled with Secretary of State Condoleezza Rice and the official U.S. delegation to South Korea for the inauguration of President Lee Myung-bak on February 25th.

Groseta said it was truly an honor and privilege to represent NCBA and this nation’s cattlemen in Korea. “Our two countries share a strong and growing trade relationship, which brings enormous benefits to our respective citizens,” said Groseta. “I represent hard-working farmers and ranchers who produce the best and safest beef in the entire world. We do so with great efficiency, and without government assistance or subsidies. I am encouraged by my visit, and I truly believe we will soon be resuming beef trade with Korea. Ultimately, we’ll be able to enhance this trading relationship further with the U.S.-Korea free trade agreement.”

In 2003, Korea was the third largest export market for U.S. beef totaling more than $815 million in value. Since then, the market has been largely closed to U.S. beef with the exception of approximately 100 days when Korea allowed the shipment of U.S. boneless beef from animals less than 30 months of age. Since fall 2007, the two countries have been working to develop new trading protocols more closely in line with international trading standards.

New Korean President Aims to Resolve Beef Trade Issues: In related news, President Lee Myung-bak is scheduled to visit the United States in April. In media reports, his administration has said it wants to resolve differences with the U.S. government over the beef trade issue prior to Lee's scheduled visit. The Korean government is expected to expand the age range and types of beef eligible for export to Korea.

U.S. beef producers continue to urge both governments to get together as soon as possible to iron out a deal that fully opens the Korean market and paves the way for U.S. congressional consideration of the U.S.-Korea Free Trade Agreement.

House Passes Andean Trade Preferences: The U.S. House approved yesterday, February 27th, a 10-month extension of the Andean Trade Preference Act (ATPA), which eliminates most tariffs on goods from Bolivia, Colombia, Ecuador and Peru. The measure must now be quickly approved by the Senate before the current preferences expire at the end of this week.

NCBA opposed a long-term extension of the ATPA because it provides duty-free access for almost all imports from Andean countries but doesn’t provide equal access for U.S. products. NCBA is a staunch supporter of the pending Colombia Trade Promotion Agreement, which rectifies this imbalance, and which would provide for immediate duty-free and quota-free access for prime and choice graded U.S. beef.

Agriculture Secretary Ed Schafer said the extension “would provide a bridge while we work to secure Congressional passage of the U.S.-Colombia Trade Promotion Agreement and to implement the U.S.-Peru Trade Promotion Agreement.” Schafer also asked that the U.S. Senate pass the extension and then move forward to pass the U.S.-Colombia Trade Promotion Agreement. "The U.S.-Colombia Trade Promotion Agreement will replace one-way with two-way free trade by providing U.S. farmers, ranchers and businesses with duty-free access to that market,” said Schafer.

NCBA Calls for USDA to Update Nutrition Resource: NCBA sent a letter today, February 28th, to Senate Appropriations Committee member Kay Bailey Hutchison (R-Texas) urging her support in allocating funds to update USDA’s Nutrient Composition Handbook for Beef. In addition to the Food Guide Pyramid and the Dietary Guidelines for Americans, the Nutrient Composition Handbook for Beef offers consumers important information about the nutritional aspects of foods.

“Unfortunately, USDA has not updated this handbook in decades, and as such, the information is out-dated and incorrect,” says NCBA’s Executive Director of Legislative Affairs Colin Woodall. “This out-dated information is being distributed to consumers across the country who use it to make dietary choices. We believe that the consumer should have up-to-date nutritional information to base their decisions on.”

The cattle industry has worked hard to improve beef quality. In recent years, through research efforts, the beef industry has been able to produce at least 19 cuts of beef that are leaner than a skinless chicken thigh and 29 total cuts of beef that are considered “lean”. “The American consumer does not have all the facts they need to understand that beef is part of a healthy diet,” says Woodall. NCBA has called for USDA’s Agricultural Research Service to update this information as part of its Fiscal Year 2009 Agriculture Appropriations request.

Poll Results Show Public Opposed to Changes to the Clean Water Act: The Western Business Roundtable announced this week poll results that show strong public opposition for changes to the federal Clean Water Act (CWA) currently being proposed in Congress.

Current legislation (H.R. 2421 and S. 1870) seeks to unnecessarily expand the jurisdiction of the Clean Water Act taking away local and state authority and placing responsibility for managing even the smallest water resources into the hands of the federal government. For ranchers, this would mean that federal permitting could be required for activities that affect streams and drainage ditches that are only wet during certain times of the year or during precipitation events. Road ditches and water released from tile lines along with vegetated filter strips would also be susceptible to federal regulations.

A survey conducted earlier this month by Public Opinion Strategies shows that 63 percent of respondents oppose the changes. Of that 63 percent, 47 percent “strongly oppose” any change in the CWA that would give the federal government veto power over state and local governments when it comes to local land and water use decisions.

The Western Business Roundtable held a press conference on Capitol Hill in December where policymakers and business leaders spoke out against these bills. Among the speakers was U.S. Rep. John Mica (R-Fla.), ranking member of the House Transportation and Infrastructure Committee.

“There is clearly growing opposition to this legislation. It's a very serious issue, and any aspect of our society would be adversely affected by this bill," said Mica. "It would lead to a host of unintended consequences and probably lead to a field day for attorneys. It would be a disaster for business, industry and agriculture. It would hurt farmers, ranchers and particularly small-business people. It would create absolute chaos. It would extend the federal government's reach to the gutters and downspouts of your home."

NCBA is one of many partner groups associated with the Western Business Roundtable, a non-profit business trade association comprised of organizations doing business in the Western United States. More information is posted at www.westernroundtable.com.

Houses Passes Energy Tax Package: The House approved an energy tax package (H.R. 5351) February 27^th by a vote of 236-182. This bill was introduced on February 12, 2008 by Rep. Charles Rangel (D-N.Y.) to provide tax incentives for the production of renewable energy and energy conservation.

The White House has expressed concern with the bill because of fears it would raise fuel prices for consumers. A Statement of Administration Policy issued Tuesday, February 26th says, “the Administration must strongly oppose H.R. 5351, because the bill would use the tax code to target tax increases on a specific industry in a way that will lead to higher energy costs to U.S. consumers and businesses. If this legislation is presented to the President in its current form, his senior advisors would recommend that he veto the bill.”

NCBA is taking no position on the bill. The package now moves to the Senate for consideration.

USDA Announces Implementation of Instrument Beef Grading: USDA’s Agricultural Marketing Service (AMS) announced today, February 28th, that it is now officially grading beef carcasses with the assistance of specially designed electronic instruments that predict quality and yield grade attributes.

AMS officials have been working with technology providers, academia, beef packers and representatives of the U.S. cattle and beef industry over the past several years to refine instrument grading technology to ensure accuracy, repeatability, system integrity and capability of operating under plant conditions.

“This is a tool that is going to allow more accurate measurement of the beef carcass, which ultimately is what determines value,” says Bucky Gwartney, NCBA’s executive director of product enhancement research. “This technology will still have USDA oversight – which is important – but it will produce a more consistent value signal back to the producer. At the end of the day, that will allow the producer to make more timely improvements to their cattle and offer a more consistent quality product for consumers.”

Use of the instrument technology for grading beef will be voluntary. The start-up of instrument grading technology in an actual production situation began on Feb. 18, at four large beef harvest facilities in Nebraska and Kansas. It is anticipated that other facilities will begin using instrument grading technology in the near future.

Canada Announces 12th BSE Case: The Canadian Food Inspection Agency (CFIA) announced Tuesday, February 26th it has confirmed Canada’s 12th case of BSE in a 6-year-old Alberta dairy cow. CFIA reports that no part of the animal entered the human food or animal feed supply.

The CFIA said in a statement that the animal’s age and location are consistent with previous cases detected in Canada, and it is not expected to affect Canada’s Controlled Risk country status, as recognized by the World Organization for Animal Health. “The periodic detection of a small number of cases is fully expected,” said the CFIA.

An epidemiological investigation is underway to identify the animal’s herdmates at the time of birth and potential pathways by which it might have become infected. More information is posted at www.inspection.gc.ca.

Dr. Joseph Glauber Named USDA Chief Economist: Agriculture Secretary Ed Schafer today announced the selection of Dr. Joseph Glauber as USDA Chief Economist. Glauber has served as Acting Chief Economist since January 3, 2008, and he served as Deputy Chief Economist at USDA since 1992.

As Chief Economist, Glauber is responsible for USDA's agricultural forecasts and projections and for advising the Secretary of Agriculture on economic implications of alternative programs, regulations and legislative proposals. His responsibilities include the Office of the Chief Economist, the World Agricultural Outlook Board, the Office of Risk Assessment and Cost-Benefit analysis, the Global Change Program Office and the Office of Energy Policy and New Uses.

Glauber received his Ph.D. in agricultural economics from the University of Wisconsin in 1984 and holds a degree in anthropology from the University of Chicago.

NCBA Hosts Candidate Johanns: NCBA, along with the American Meat Institute, Case New Holland, John Deere, and the National Pork Producers Council hosted a luncheon this week for Mike Johanns, candidate for Senate from Nebraska. Johanns (R-Neb.) is former U.S. Secretary of Agriculture and former Governor of Nebraska.

“As Governor of Nebraska, one of our nation’s largest cattle-producing states, and having grown up on a cattle operation, Mike has a genuine compassion for the needs of agriculture producers and rural communities,” says NCBA Vice President of Government Affairs Jay Truitt. “As Secretary of Agriculture, he was an adamant supporter of free and fair trade and he worked tirelessly on producers’ behalf on issues related to the Farm Bill.”

Don't Miss NCBA’s Award-Winning Cattlemen to Cattlemen: On this week’s episode, airing February 26 - March 2, NCBA’s Cattlemen to Cattlemen will bring you highlights from USDA Secretary Ed Schafer’s address to cattlemen at the 2008 Cattle Industry Annual Convention and Trade Show. Plus, we have specific tips for cattlemen about how to properly plan their estate. We will also continue our series on artificial insemination with a demonstration on how to properly handle bull semen, and we’ll highlight the winner of this year’s Environmental Stewardship Awards Program: YoloLand and Cattle from California.

On next week’s episode airing March 4-9, Cattlemen to Cattlemen takes a look at the serious drought conditions affecting the southeast section of the country. Plus, we get the spring forecast from Dr. Art Douglas. Also, we visit a cattle producer in central Kentucky and learn more about premises registration. And just in time for Saint Patrick’s Day – our culinary expert has a great corned beef recipe!

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 10:30 a.m. and Sundays at 12 a.m. (midnight). All times are Eastern. Be sure to 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 kbatra@beef.org or call 202-347-0228.

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.