NMPF Issues Positive Report Card on 2002 Farm Bill

During a Senate Agriculture Committee hearing on the state of U.S. dairy policy, NMPF told the Senate that the current Farm Bill, created in 2002, "is a reasonable, rational and fair approach to farm policy," according to Charles Beckendorf, Chairman of NMPF. The Senate held the hearing to examine what has happened in the dairy industry since the passage four years ago of the current Farm Bill.

Beckendorf, who is a dairy farmer from Tomball, TX, said that most of the policy positions advocated by NMPF were included in the 2002 Farm Bill. They included:

• Extending the dairy price support program through the five-year lifespan of the 2002 Farm Bill;
  
• Reauthorizing the Dairy Export Incentive Program, which is the U.S. industry's primary tool to counter export subsidies used by Europe's dairy industry;
  
• Funding animal health programs, such as a Johne's Disease Control program, along with a new veterinary lab in Iowa, and;
  
• Expanding the usefulness of the Environmental Quality Incentives Program, which is the primary federal resource for helping farmers make environmental improvements in their operations.
  

Beckendorf told the Senate panel it is important that Congress establish an economic safety net for dairy producers, which it did four years ago through the reauthorization of the dairy price support program. He told the committee that the program "is the most effective, efficient and equitable safety net program" for farmers, and is one that doesn't discriminate based on milk production, farm size or location.

He also told the Senate that NMPF remains a strong supporter of the Federal Milk Marketing Order program, and that, while the program could be streamlined to make it more efficient, "it remains an essential part of federal dairy policy."

While most of the Senate hearing was oriented toward examining economic policy issues, Beckendorf reminded the Ag Committee that NMPF views farm policy holistically, in that it must incorporate a broad-based perspective on agriculture. From NMPF's standpoint, the Farm Bill must also address issues including animal health, environmental compliance, trade policy, along with energy and rural development.

Beckendorf also explained that the dairy industry's three year old self-help program, Cooperatives Working Together, is not intended to take the place of federal government, but rather is "a complement to, not a replacement of, farm programs."

He also reminded the Senate members that one of the key determinants of what may happen in the future with U.S. farm policy is dependent on trade agreements made with other countries.

"Congress should be involved in carefully reviewing future trade agreements," he said, because "trade policy plays a significant role in impacting the effectiveness of government dairy programs," Beckendorf said.

He concluded by urging the Senate to stay involved in monitoring U.S. farm policy. "Our message to the Senate is that dairy farmers are not looking for a handout. Nor are we looking for a hand up; what farmers are looking for from government is a handshake," Beckendorf said. "Dairy farmers want a sign of commitment, such as a handshake, indicating, when times are tough, that there will be a modest safety net in place to help catch those who are vulnerable."

A full copy of the NMPF testimony is available at www.nmpf.org.

NMPF Support New Bill to Clarify That Dairy Farms Should Not Be Regulated Like Superfund Waste Sites

NMPF expressed its support for a new bill introduced in the Senate to clarify laws regulating industrial waste sites. At issue is whether dairy farms and other livestock operations should be governed by the same laws that were intended to address Superfund toxic waste sites.

The new bill, S. 3681, amends the so-called Superfund laws passed more than 20 years ago to affirm that those laws do not, and should not, regulate animal manure as a toxic waste.

"Manure happens on farms, and there are plenty of existing federal and state laws, including the Clean Water Act, that help ensure the nation's waterways are protected from any negative impacts from the nutrients found in animal waste," said Jerry Kozak, President and CEO of NMPF. "But Congress never intended for the CERCLA and EPRCA laws to be applied to farming, and this new legislation will help ensure that the laws remain focused on regulating and cleaning up industrial waste sites."

The lead sponsors of the Senate bill are Republicans Pete Domenici (NM) and Larry Craig (ID), along Democratic Blanche Lincoln (AR). Already, 20 other Senators have signed onto the legislation. The Senate bill is identical to H.R. 4341, a bill introduced earlier this year in the House of Representatives, which now has 174 cosponsors.

CERCLA is the Comprehensive Environmental Response, Compensation and Liability Act. EPCRA is the Emergency Planning and Community Right to Know Act. Both have been used in the recent past to regulate nutrient emissions alleged to have come from farms, including some dairy operations in Texas.

"If current trends continue, regulators and activists are going to step up their efforts to put farms out of business using these Superfund laws. The good news is that Congress created these laws, and they can also amend them to prevent the continued exploitation of them for purposes for which the laws were not intended," Kozak said.

NMPF And USDEC Disappointed By Cessation Of WTO Negotiations

The decision by the World Trade Organization to suspend efforts aimed at achieving a breakthrough in world trade talks "is a disappointment for America's dairy farmers, who were hoping to use the WTO as a way of leveling the playing field while increasing their opportunities for future exports," said Tom Suber, President and U.S. Dairy Export Council. "We applaud our negotiators for seeking an ambitious conclusion of the Doha Round, which seeks to reduce the current inequities," Suber added.

Last Monday, the director general of the organization, Pascal Lamy, suspended further discussions among major negotiating powers, citing the inability of the U.S. and the European Union to bridge gaps in their positions that are mostly centered on agricultural products.

At issue for the U.S. dairy industry was the ongoing effort by the EU to protect its sizable and lucrative dairy market with continued high tariff barriers. The European Union wanted to keep its market closed to the U.S. and other exporters. It is clear that the European Union was unwilling to do its part in these negotiations, according to U.S. dairy industry officials.

Jerry Kozak, President and CEO of the National Milk Producers Federation, praised the dedication and skill of the U.S. negotiating team. "To their credit, our government's negotiators understood that a bad deal is worse than no deal for our dairy industry and the United States, and rather than tinker at the margins, they agreed to walk away for now."

Both Kozak and Suber said the U.S. dairy industry remains fully committed to the Doha Round, and the promise that it holds for addressing many of the problems plaguing the global dairy industry.

"A delay in the WTO negotiations means that our producers and processors must continue to wait for an answer to the serious trading inequities that hamper our industry's ability to most effectively compete, such as export subsidies, exorbitant tariff levels and domestic support imbalances," added USDEC's Suber.

The duration of the cessation in the WTO talks is unknown at this point, making it increasingly likely that the President's Trade Promotion Authority will need to be extended next summer in order to finish the Doha Round. Because of the continued existence of the many unfair and damaging trading practices around the world, the U.S. dairy industry would strongly support an effort by the Administration to extend Trade Promotion Authority in order to provide another shot at addressing these important issues, Kozak of NMPF added.

Bruce Knight Receives Positive Reviews from the Senate and NMPF

The Senate Agriculture committee held a confirmation hearing last Wednesday to consider the nomination of Bruce Knight to take the position of Deputy Secretary for Marketing and Regulatory Programs. NMPF sent a letter to the Committee supporting his nomination and urging confirmation.

Mr. Knight will assume his new duties upon confirmation of the full Senate, which is expected to take place before Congress adjourns for the August Recess. He received praise from both Republicans and Democrats during the recent hearings.

In supporting the nomination, NMPF lauded Mr. Knight's broad experience in agriculture. Dairy producers have first-hand experience of Mr. Knight's capabilities through his skillful administration of the Environmental Quality Incentives Program and the Conservation Security Program.

USDA Halts Work On Rule Allowing Older Canada Cattle Imports

USDA has withdrawn a proposed rule that would allow imports of older Canadian cattle while Canada investigates its latest case, a USDA spokeswoman said.

"It makes sense to revisit this," said Karen Eggert, a spokeswoman for the USDA's Animal and Plant Health Inspection Service. "Right now, we are waiting for that information (from the Canadian investigation)."

Eggert said USDA would not act on its proposed rule -- to allow imports of cattle over 30 months of age -- until Canada completed its investigation. USDA withdrew the rule from White House review last Thursday.

The latest Canadian case, reported this month, was a 50-month-old dairy cow in the province of Alberta, born well after 1997, when Canada banned the use of cattle parts in making cattle feed.

Agriculture Secretary Johanns sent a USDA expert to Canada in mid-July, saying he was particularly interested in "how this animal may have been exposed to BSE-infected material."

USDA Announces New BSE Surveillance Program

On, July 20, Agriculture Secretary Johanns announced that the USDA will soon begin transitioning to an BSE surveillance program that corresponds to the extremely low prevalence of the disease in the U.S. The ongoing BSE surveillance program will sample approximately 40,000 animals each year. Under the program, USDA will continue to collect samples from a variety of sites and from the cattle populations where the disease is most likely to be detected. The new program will provide testing at a level ten times higher than the science-based international guidelines set forth by the World Animal Health organization (OIE).

In April, USDA released an analysis of 7 years of BSE surveillance data. This included data from an enhanced surveillance program, which began in June 2004, as a one-time effort to determine the prevalence of BSE in the United States. The analysis concluded that the prevalence of BSE in the United States is less than 1 case per million adult cattle. The analysis further revealed that the most likely number of cases is between 4 and 7 infected animals out of 42 million adult cattle.

An outline of the ongoing BSE surveillance plan is available on the APHIS website.

Japan Reopens Market to US Beef Imports

Last Thursday Japan announced it was going to resume U.S. beef imports, ending a ban imposed over concerns about mad cow disease and removing a strain in relations with Washington.

''We are pleased that Japanese auditors and officials have found our process to be sound, and we are proud that our system is scientifically based and exceeds internationals standards,'' a statement from Ambassador Thomas Schieffer said.

Health Minister Jiro Kawasaki announced the lifting of the ban after the Agriculture Ministry's mad cow advisory committee approved resumption of imports.

''We think it is possible to guarantee safety so long as the U.S. observes its export program to Japan,'' Kawasaki told reporters. ''We strongly hope that the U.S. will ensure compliance with the export program.''

Japanese inspectors on Sunday returned from a month long tour of 35 facilities in the United States to evaluate whether they comply with safeguards against mad cow disease.

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