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November offers a glimmer of hope for those weary of one-party
rule. “We’ve had to change
our definition of a victory,” said Colin Woodall, executive
director of government affairs for the National Cattlemen’s Beef
Association (NCBA). Victories used to be defined by the margin
of votes. These days, it’s a matter of how much time can be
bought to educate and try to sway opinion before votes are
taken.
Woodall was addressing
participants at last spring’s annual meeting of the Texas and
Southwest Cattle Raisers Association.
So goes life when so few law
makers and administrators at the federal level have any idea how
agriculture works.
So goes life in an age when a
single political party holds sway in both the Administrative and
Legislative branches of government.
Voters of every stripe have to be
stunned with how willing government has been to amass debt and
insinuate itself into areas of life previously reserved for
individual citizens first and then their states.
Consider last year’s astounding
economic bail-out and stimulus package at a cost of $787.2
billion, on top of $152 billion in 2008. Consider Health Care
Reform (see Rights for Me page 22) tagged at $940 billion.
When Scott Brown (R-Mass.) was
elected to the U.S. Senate last winter—a surprising turn of
events—to serve out the term left by the death of the iconic
Democrat Ted Kennedy, there were plenty of folks who thought the
Congressional train would slow. That was because, if Senate
Republicans stuck together, Brown meant the Senate Democrats no
longer held the 60 magical votes that make for a supermajority.
In the simplest terms, the
60-vote supermajority is necessary to invoke cloture, a process
by which Senate debate can be limited and a vote forced. Without
it, the minority party can filibuster along, adding amendments,
calling for debate and the like.
But there are ways around it, in
certain circumstances. In the case of Health Care Reform, the
Democrats utilized another parliamentary tactic called
Reconciliation which can be used only in limited circumstances,
including bills that pertain to spending. So, arguably, the 60th
vote didn’t matter much.
If the Laws don’t get you, the
regulations will
Closer to home, an assortment of proposed legislation threatens
the ability of cattle producers, and other businesses, to remain
economically viable.
There’s the pending bill in the
House of Representative seeking to remove the word “navigable”
from the Lean Water Act. If successful, that would give the
Environmental Protection Agency (EPA) the power to regulate all
water everywhere on the farm and ranch, from a mud puddle to
watersheds.
There’s immigration reform, where
the current lack of action seems to be as harmful as not (see
You STILL Ain’t from Around Here page 30).
There’s the Preservation of
Antibiotics for Medical Treatment Act (PAMTA) introduced by U.S.
Representative, Louise Slaughter (D-NY). That bill would
eliminate the non-therapeutic use of antibiotics (considered
important for human health) in livestock. According to a
position statement from the American Veterinary Medical
Association, in opposition to the bill: “The AVMA opposes this
legislation because it would increase animal disease and
death—an unfortunate and unintended consequence—without
assurance of improving human health. The legislation proposes to
eliminate “non-therapeutic” uses of antimicrobials which would
disallow disease prevention and potentially control uses. This
broad based ban is contrary to the practice of veterinary
medicine and is not risk-based. AVMA urges Congress make
decisions based upon science when considering legislation
concerning the use of antibiotics in animal agriculture.”
This and other proposed
legislation impacting the cattle business is before considering
how federal agencies are writing their own laws through
regulation.
In fact, you could rationally
argue that federal agencies are being less than bashful about
usurping legislative prerogative by issuing regulations that do
more than some laws can. The EPA serves as the quintessential
role model with their designation of Greenhouse Gases (GHG) as a
public health threat (see Under My Thumb-Part II).
EPA also holds the keys to the
allowable blend rate for ethanol in gasoline—currently 10%. Any
increase—odds are it will go up this fall—further disjoints
grain and livestock markets.
Likewise, EPA helms the Clean Air
Act—that’s what they’re standing behind for GHG regulation—and
the Clean Water Act.
Another Stab at Regulating
Livestock Markets
There are other agencies and pending regulations that could so
as much damage.
For instance, there is the USDA
rule-making process that has fostered the on-again, off-again
National Animal Identification System (NAIS). Neither voluntary
nor mandatory it floated in limbo until USDA passed the buck to
states last fall as an unfunded mandate. In other words,
“States, you figure out how to do it, and how to fund it,
because traceability will be required for interstate commerce.”
Most pressing, is the latest
potential attack on free markets within the cattle industry.
USDA announced in June proposed
rule making, as required by the 2008 Farm Bill, for competition
in livestock markets. You may have heard of joint meetings
hosted by USDA and the Justice Department in that regard.
“Concerns about a lack of
fairness and commonsense treatment for livestock and poultry
producers have gone unaddressed far too long,” said Agriculture
Secretary Tom Vilsack in announcing the rule issued by the Grain
Inspection, Packers and Stockyards Administration (GIPSA). “This
proposed rule will help ensure a level playing field for
producers by providing additional protections against unfair
practices and addressing new market conditions not covered by
existing rules.”
Keep in mind, there are already a
bevy of rules enforced by GIPSA to protect livestock producers.
Many of the concerns raised by
USDA are the same old straw men that have been yammered about
for years. For instance, there’s consolidation, concentration
and captive supplies in the cattle business—all of which have
been proven by credible studies to benefit rather than hinder
both producers and consumers.
“While we’re still looking at the
details of the proposal, in general, we have serious concerns
with any efforts to increase government intrusion in the
marketplace,” says Steve Foglesong, NCBA president. “Cattle
producers support free-market principles and we deserve the
right to enter into private negotiations between willing buyers
and sellers—just like other sectors of American business. NCBA
will fight to protect the use of contract and alternative
marketing arrangements in the cattle industry to satisfy the
demands of our consumers.”
According to the USDA, “During
farm bill discussions in 2007, over 200 organizations across the
country urged Congress to include a livestock title to improve
market fairness and competition for producers. Additionally,
USDA identified other areas where new rulemaking is needed to
ensure the marketplace is fair and competitive for producers.
Many of the concerns addressed in the rule were raised during
the dozens of Administration Rural Tour stops attended by
Secretary Vilsack last year, and the joint USDA-Department of
Justice Competition Workshops held this year. Additionally,
GIPSA held three public meetings in 2008 to gather comments,
information, and recommendations from interested parties.”
Incidentally, the aforementioned
Competition Workshops are not complete. The one for cattle and
beef is scheduled for August 27 in Fort Collins, CO—four days
after the comment period is scheduled to close for the new
rules.
GIPSA will consider comments
about the proposed rule received by August 23, 2010. Copies of
the proposed rule and additional information can be found at:
http://www.gipsa.usda.gov by clicking on Federal Register.
“At the end of the day, we’re not
just cattle producers, we’re beef producers; and the success of
our business relies on our ability to meet specific consumer
demand at the local retail meat case, while at the same time get
rewarded for the value we add to our cattle,” Foglesong says.
“We encourage USDA to closely involve producer input throughout
every step of the rule-making process to make sure the final
rule supports commerce that’s fair, open and transparent without
undue government intrusion that would hinder producers’ ability
to market cattle when, how and where they want to.”
Change in the Air
In and out of the cattle business, it’s unsurprising that
would-be voters appear more fed up with Congress and the current
administration than normal, even when considering the recent
Great Recession.
According to the daily
Presidential Approval Index issued by Rasmussen Reports™,
Obama’s approval continues to slide. The index is calculated by
subtracting the number of likely voters polled who Strongly
Disapprove of the president’s performance from those who
Strongly Approve. This index ranged from +7 to -2 last June.
Through the month of June this year (through June 22) the index
ranged from -13 to -20.
Viewed through a different prism,
according to the Gallup organization in June, 59% of Republicans
and Republican-leaning independents said they were more
enthusiastic about voting in this November’s elections than past
elections. That’s the highest average in a mid-term election
year for either party since the folks at Gallup began asking the
question in 1994.
During the NCBA convention last
winter, I asked Woodall, given such a strong political tide of
opposition to the cattle business, whether it was more or less
important for individual producers to make their opinions known
to their elected representatives, and whether there was a more
effective way to be involved. “It’s more important every single
day because there are fewer and fewer of us,” Woodall said. “If
we don’t tell our story, there are lots of other people who will
tell it for us. It’s of critical importance that producers have
contact with their representatives.” |