Browsing Posts tagged stockgrowers america

R-CALF United Stockgrowers of America

 

“Fighting for the U.S. ! Cattle Producer”

 

For Immediate Release                                                                         Contact: R-CALF USA CEO Bill Bullard

December 20, 2011                                                                                          Phone: 406-252-2516; r-calfusa@r-calfusa.com

 

8 Days of Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part VII of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA has launched an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part VII:  APHIS’ Proposed Rule Discriminates Against Brand Inspection States and Brands

  1. APHIS’ Proposed Rule Discriminates Against States that Require Brand Inspections and Brand Inspection Certificates as a Condition for Leaving a Brand Inspection Area and Discriminates Against Cattle Producers Within Those States that Pay for and Rely on Brands and Brand Certificates to Identify Their Cattle
  1. USDA-APHIS has deceived U.S. cattle producers by proposing to remove brands from the list of official animal identification devices or methods.

APHIS’ proposal in the proposed rule to delist the hot-iron brand accompanied by a certificate from a recognized brand authority as an official form of animal identification constitutes a broken promise made by USDA to U.S. cattle producers.  In February 2010, USDA stated in regard to its new animal disease traceability framework, which has materialized into the proposed rule:

USDA will maintain a list of official identification devices, which can be updated or expanded based on the needs of the States and Tribal Nations. There are many official identification options available, such as branding, metal tags, RFID, just to name a few (EXHIBIT 10). (Emphasis added.)

Cattle producers have been outright deceived by USDA due to APHIS’ proposal to remove brands from the list of official identification devices or methods. The construction of the above sentence, along with the usual and customary meaning attached to its words and phrases, unambiguously implies that brands will remain an official identification option on USDA’s list of official identification devices or methods. Only under a perverted interpretation of that sentence could it mean otherwise.

The consequence of APHIS’ action strips from the states and tribes the option to decide to continue relying upon the brand accompanied by a brand certificate from a recognized brand authority to identify livestock. This reduces flexibility for states and tribes to adopt a system that works best for them. In addition, it strips from individual producers within each state the flexibility to decide to continue their reliance on the brand, which flexibility each individual producer could influence by persuading their respective states’ elected officials.

Under the proposed rule, however, the decision to use brands must be made jointly by two or more states or tribes. Thus, any single state or tribe would be subject to decisions made outside their jurisdiction regarding their ability to use brands for identification. This is an affront on state sovereignty. Moreover, the rights of individual cattle producers in a brand state to continue relying upon their brands would be subject to the decisions made in other states, over which they would have no control.

And, the proposed rule would effectively discriminate against cattle producers in states with mandatory brand inspection programs, which are funded in whole or in part by producer fees, by not reimbursing the producers for the cost of brand inspection fees paid when those producers leave the jurisdiction of their brand inspection authority, which generally is the state’s border, when they are required by APHIS to apply a new form of animal identification.  If APHIS does not reimburse producers that are required by their respective state to obtain a brand inspection before leaving their state, and if APHIS nevertheless requires them to incur the cost of applyi! ng a second form of identification (i.e., requires them to apply an ear tag in addition to their preexisting brand), then APHIS would effectively financially disadvantage those producers in interstate commerce by the per head cost for their mandatory brand inspection.

At the very least, USDA-APHIS has an absolute moral and ethical obligation to treat U.S. cattle producers honestly and fairly. Stating one thing and doing another is dishonest and unfair. In this case, USDA-APHIS stated one thing and did another without providing any notice to the public that it had deviated from its official commitment. Regardless of any rationalization USDA-APHIS may espouse to defend its deviant action, it has acted dishonestly, unfairly, and deceptively. For this reason alone, USDA-APHIS must restore the brand’s rightful status as an official animal identification device and withdraw its proposed ru! le.

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress. 

 

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com  or, call 406-252-2516.   

 

R-CALF United Stockgrowers of America

 

“Fighting for the U.S. ! Cattle Producer”

 

For Immediate Release                                                                         Contact: R-CALF USA CEO Bill Bullard

December 19, 2011                                                                                          Phone: 406-252-2516; r-calfusa@r-calfusa.com

 

8 Days of Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part VI of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA has launched an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part VI:  APHIS’ Proposed Rule Is Unscientific and Discriminates Against Cattle Producers Unlucky Enough to Live in a State Where Major Packers do not Operate Packing Plants.

  1. APHIS’ Proposed Rule Ignores Differences in Risk Inherent to the United States’ Diverse Cattle Industry; Is a One-Size-Fits-All Solution to an Ill-Defined Problem; and, Contradicts APHIS’ Pledge to Manage Animal Health Using a Risk-Based Approach to Trade and Disease Management

APHIS has long advocated that trade-related disease management and domestic disease management be addressed using a scientific, risk-based approach, as opposed to, presumably, a precautionary-based, geopolitical-boundary-based, or one-size-fits-all approach.

APHIS stated in 1997 that its goal “was to create a mechanism to establish regionalized, risk-based import requirements that are consistent with obligations of VS [APHIS Veterinary Services] under the World Trade Organization’s Sanitary and Phytosanitary Agreement (EXHIBIT 20).” (Emphasis added.)

As discussed in Part V of this series, the Deputy Administrator of APHIS represented that APHIS was opposed to the voluntary Beef Export Verification program from its inception. He claimed at the time of its inception that trade decisions should be risk-based and stated in regard to the Beef Export Verification program:

It could have been avoided if there were a more practical, risk-based approach to trade with countries, such as Canada, that have had only isolated occurrences of BSE and have responded aggressively with appropriate mitigation measures. (EXHIBIT 19).

In a July 2007 report by the U.S. Government Accountability Office (GAO) regarding APHIS’ efforts to implement the national animal identification system (NAIS), the GAO stated that APHIS officials told GAO that the agency did not expect that equal levels of involvement in the NAIS across all species “will be necessary, and that new, risk-based participation benchmarks for premises registration, animal ID, and animal tracking may be developed accordingly, which could vary by species.” (EXHIBIT 21, p. 13).

In a July 2009 report describing APHIS’ action plan to address bovine TB, APHIS explained it was proposing to replace the current split-state status system used to address bovine TB with a risk-based approach that imposes movement restrictions that associate with a zone rather than an entire state (EXHIBIT 22, p. 8).

In a September 2010 concept paper for a new approach to address brucellosis, APHIS stated its new approach to managing brucellosis would “employ a flexible risk-based disease management system (EXHIBIT 23, p. 14).”

The foregoing discussion clearly reveals APHIS’ ongoing intention of using a risk-based approach to trade as well as for managing domestic disease issues. The proposed rule, however, is the antithesis to a risk-based approach to either trade or disease management. This is because the proposed rule expressly targets all livestock that are imported and exported among and between each and every geopolitical, state boundary, i.e. it targets livestock engaged in trade between and among each of the 50 states. Thus, the imposition of the proposed rule would be an economic burden on all domestic trade in livestock between and among each state, regardless of the degree of risk associated with livestock from any state.

Not only is the proposed rule void of any risk-based consideration, but also, APHIS’ implementation of the proposed rule would constitute unfair and discriminatory treatment against domestic cattle producers when compared to foreign cattle producers. This is because domestic cattle producers that must cross a state boundary to access a slaughter plant would be required to incur the cost of APHIS’ mandatory animal identification scheme as a precondition to marketing their products into the U.S. beef supply chain. Foreign cattle producers, however, are not required by APHIS, or any other agency of USDA, to participate in any mandatory animal identification scheme as a precondition for marketing their products into the U.S. beef supply chain, regardless ! of whether they must ship cattle across provinces, states, or departments within their respective countries to access a slaughter plant that is eligible to export beef into the United States.

Thus, the proposed rule would financially disadvantage certain U.S. cattle producers who have no option other than to cross a state line to access a slaughter facility while the U.S. cattle producers’ competitor – foreign cattle producers – remain unencumbered by any U.S. requirement to meet the same standards as a precondition for marketing the beef commodity in the U.S. beef supply chain.

Further, the proposed rule discriminates against U.S. cattle producers who must cross state boundaries to access a U.S. slaughter plant when compared to U.S. cattle producers that reside in a state with one or more slaughter plants. Because only those producers who must cross state lines to access a slaughter plant would be compelled to bear the cost of an APHIS-mandated animal identification scheme, U.S. producers who do not need to cross state lines to access a slaughter plant would be accorded an economic advantage in the U.S. beef supply chain by not having to comply with APHIS’ mandatory animal identification scheme.

The effect of the proposed rule, therefore, would be to financially discriminate against every U.S. cattle producer who is not lucky enough to conduct his or her cattle business in one of the few states in which the handful of remaining meatpackers have decided to set-up a slaughter plant. For example, If Cattle Feeder A is equidistant from a slaughter plant as Cattle Feeder B, but Cattle Feeder A must cross a state boundary to access the slaughter plant, then APHIS’ proposed rule has accorded Cattle Feeder B upwards of a $27.00 per head financial advantage in the marketplace because APHIS’ proposed rule would not require Cattle Feeder B to pay the mandatory cost of identifying cattle.

APHIS’ proposed rule is oblivious to the fact that known disease reservoirs (including wildlife and foreign countries) and locations where cattle are comingled are the most likely and second most likely, respectively, source of a potential disease outbreak. The location where breeding-age cattle are comingled with known disease reservoirs and with imported cattle should be the origination point for any form identification program, not at the point where a farmer or rancher ships cattle interstate. An interstate shipment of breeding-aged cows from a closed herd is least likely to be the subject of a disease investigation. USDA’s proposed rule completely ignores this fundamental and science-based principle. Only by issuing best practices guidelines and working with the states to assist them in developing a program that works best for t! hem can USDA even hope to achieve a science-based and functional disease-traceback program for the entire United States.

The foregoing discussion demonstrates that APHIS’ proposed rule, which imposes a requirement to incur the cost of mandatory animal identification based solely on whether livestock cross a state boundary, which requirement is oblivious to whether or not the livestock originate from an area of negligible risk or high risk for any disease, would financially advantage some cattle producers while financially disadvantaging many others. As a direct consequence, the proposed rule would interfere with domestic commerce by financially discriminating against cattle producers based solely on where they live in the United States, and those that would be discriminated against when compared to domestic cattle producers also would be discriminated against when compared to foreign cattle producers.

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress. 

 

# # #

 

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com  or, call 406-252-2516.   

 

R-CALF United Stockgrowers of America

 

“Fighting for the U.S. ! Cattle Producer”

 

For Immediate Release                                                                         Contact: R-CALF USA CEO Bill Bullard

December 18, 2011                                                                                          Phone: 406-252-2516; r-calfusa@r-calfusa.com

 

8 Days of Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part V of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA has launched an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part V:  Marketplace Premiums for Traceable Cattle Will Evaporate Under the Proposed Rule

 

C. APHIS Grossly Understates the Economic Cost of the Proposed Rule that Will be Borne by U.S. Cattle Producers 

 

  1. 3.      APHIS’s cost estimates completely overlook and ignore the market value of the information intrinsic to an individually identified animal and the effect of APHIS’ proposed rule will be to steal that value from U.S. cattle producers and gift it to the U.S. meatpacking industry.

 

APHIS asserts the primary benefit of the proposed rule would be to minimize losses and quickly reestablish foreign and domestic markets. See 76 Fed. Reg. 50097, col. 3.  But, APHIS completely overlooks and ignores the fact that foreign markets already have assigned a market value to information that would enable traceability to the herd of origin. Primary export markets such as Japan, South Korea, and Hong Kong already require beef exported to them to be from animals that are traceable. Japan requires beef to be derived from cattle t! hat are individually identified and traceable back to ranch records (EXHIBIT 16). South Korea requires beef to be derived from cattle that are of U.S. origin or fed in the U.S. for at least 100 days if they originate from Mexico or Canada, which requirement necessitates individual animal identification (EXHIBIT 17). Hong Kong requires beef from cattle that are traceable to the last location and to the herd of origin in the event of a BSE outbreak (EXHIBIT 18).

 

The fact that the above mentioned export markets each require some form of traceability of cattle from which the exported beef is derived indicates they each have assigned a market value for traceability and are willing to pay for that additional value in the price they pay for U.S. beef. This market driven incentive to provide traceability as a product attribute for foreign markets has already been embraced by many R-CALF USA members. Anecdotal information from R-CALF USA members indicates that the marketplace has assigned economic premiums ranging from $30 to $60 per head for producers who are voluntarily providing traceable livestock for use in the beef export market.

Dr. Kris Ringwall’s 2007 testimony to the U.S. ITC succinctly explained that traceability has a market value:

 

Steve Holcombe, founder and chief executive officer of Pardalis, Inc. (which is a third-party data storage company that values and treats data the same as money) noted: “The challenge is to effectuate regulations that are inclusive of small producers, and that recognize that there now are two distinct products being produced along agricultural supply chains today: (1) the traditional livestock product (the calf) and (2) an informational product that describes the ‘pedigree’ of the traditional product.”

 

This is important to understand. Today’s producer markets a calf but also markets the information about that calf, a process that is still struggling in the pens and alleyways of the cattle business. The free marketplace determines calf value, but the value of the information associated with the calf has not been determined. But one point is becoming very clear; the actual information contains the keys to unlock the various doors needed to enter the more complex market place, not only domestically but also internationally (EXHIBIT 12, p. 1).

 

The proposed rule is void of any economic analysis regarding the potential loss of all or part of the economic premiums that export-oriented cattle producers are presently receiving by choosing to add information to their cattle that describes the pedigree of their cattle. The proposed rule would interfere with the free market system by forcing all cattle producers to pay the cost of providing traceability and then gifting any and all of the market value associated with traceable cattle directly to the nation’s meatpackers, which, of course, are in the business of selling beef, not cattle. APHIS’ failure to analyze the loss of economic premiums, specifically the portion of the economic premium assigned to basic traceability, is fatal as the effect of its proposed rule would be to transfer wealth from U.S! . cattle producers to the purveyors of the commodity beef – the U.S. meatpacking industry.

 

Based on APHIS’ estimate that 3.1 million calves were officially identified in 2010 (see supporting document, at 8), and assuming that those cattle are receiving market-driven premiums in the range of $30 to $60 per head, the proposed rule would financially damage those producers in a range of between $93 million and $186 million. This would be in addition to the proposed rule’s costs addressed in Section C. 2. supra. This loss would be realized by U.S. cattle producers because, once the rule is implemented, those producers who already officially identify their cattle will no longer be able to differentiate their cattle based on all or part of the valuable “pedigree” information they are now “selling” in the marketplace.

 

R-CALF USA is concerned that APHIS intends to persuade export countries to abandon, in whole or in part, their current requirements for cattle traceability as specified in the USDA Export Verification (EV) program as soon as APHIS can demonstrate that all or most cattle in the U.S. are traceable under APHIS’ mandatory identification scheme. When this inevitability occurs, U.S. cattle producers will be deprived of the income discussed above that they can now earn by voluntarily participating in currently available EV programs.

 

R-CALF USA’s concern is not mere conjecture. In the June 3, 2005, Declaration of John R. Clifford, D.V.M., then deputy Administrator, APHIS, Veterinary Services, which included exhibits, Dr. Clifford stated that he did not believe the voluntary Export Verification Program was needed:

 

The program, called the Beef Export Verification program, will set forth policies, procedures and requirements for an independent process verification of participants.

 

It is a voluntary, user-fee service available to suppliers of beef and beef products derived from cattle slaughtered in the United States.

 

The USDA Agricultural Marketing Service will conduct process verification audits of suppliers, program documentation and procedures with regard to the Beef Export Verification program requirements.

 

Details of this program are being shared with the industry and will be posted on the USDA website starting today. It will be operational on or before September 1st.

 

As I said before, we do not believe such a program is necessary (EXHIBIT 1, pp. 2,3; EXHIBIT 19). (Emphasis added.)

 

Based on Dr. Clifford’s representation that APHIS was opposed to the very inception of the Beef Export Verification program, it is R-CALF USA’s belief that it is more likely than not that Dr. Clifford and APHIS will work aggressively to dismantle this voluntary, market-driven program as soon as the proposed rule is implemented.

 

If R-CALF USA’s concern materializes, APHIS’ proposed rule would effectively steal the market value associated with “pedigree” information that enables livestock traceability (estimated at between $93 million and $186 million in 2010 alone) away from U.S. cattle producers and gift it to the U.S. meatpacking industry, even though it is the cattle producers who will continually bear the cost of providing such valuable market information.

 

As explained above, APHIS’ proposed rule directly interferes with the United States’ free market system and if the losses estimated for 2010 were calculated on the basis of the cattle industry’s lost future income potential, those losses would compound astronomically and result in an acceleration of the already contracting U.S. cattle industry. For this reason, the proposed rule must be immediately withdrawn.

 

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress. 

 

# # #

 

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com  or, call 406-252-2516.

R-CALF United Stockgrowers of America

 

“Fighting for the U.S. ! Cattle Producer”

 

For Immediate Release                                                                         Contact: R-CALF USA CEO Bill Bullard

December 17, 2011                                                                                          Phone: 406-252-2516; r-calfusa@r-calfusa.com

 

8 Days of Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part IV of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA has launched an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part IV:  APHIS’ Cost Estimate for the Proposed Rule Robs Peter and Pays Paul

 

C. APHIS Grossly Understates the Economic Cost of the Proposed Rule that Will be Borne by U.S. Cattle Producers 

 

  1. 2.      APHIS likely relied on misinformation when it calculated its grossly understated cost estimate for the proposed rule.

 

APHIS commissioned a study in 2009 titled “Benefit-Cost Analysis of the National Animal Identification System” (EXHIBIT 13) (APHIS ID Study), which study APHIS heavily relied on to arrive at its grossly understated cost estimate for the proposed rule. The assumptions used in APHIS’ ID Study are erroneous and do not reflect actual costs by U.S. cattle producers for tagging cattle. For e! xample, the APHIS ID Study estimated the cost of working (i.e., tagging) cattle based on a 2005 NDSU Article by Dr. Ringwall and assumed it took only 66 seconds to work an animal in a squeeze chute that took 15 minutes to set up; and the chute cost per head was $1.00 (EXHIBIT 13, p. 16).  However, the article referenced by the APHIS ID Study that was used to calculate an artificially low cost to the cattle industry for tagging cattle explained that the cost estimates were based on the use of a state-of-the-art mobile cattle working system that likely is not availab! le to many, if not most, U.S. cattle producers:

The team utilized the For-Most portable hydraulic double alley with a 750 chute. The system, as described by For-Most, has a 14-foot adjustable double alley, adjustable overhead grill and a 4- foot funnel section to a 9-foot single alley behind the model 750 squeeze chute and scale.

Cattle were fed into the For-Most system through a portable Wilson Wheel Corral, a series of hinged panels that unfold from the travel position to a complete corral for 140 head of calves (600 pound) and can be set up by one person in seven minutes (as described by Wilson). The team found setup time was quick and easy, utilizing available hydraulics and skill and experience with fifth-wheel driving (EXHIBIT 14).

In addition, the setup and teardown time for the state-of-the-art equipment that enabled Dr. Ringwall’s team to work each animal in only 66 seconds actually took 56 minutes and 34 minutes, respectively (EXHIBIT 14), which is much longer than the 15-minute setup time used in the APHIS ID Study, and that APHIS used in its supporting document.

 

Further, while the APHIS ID Study estimated that the cost to beef cow operators for a bookend-type identification system, as manifested in the proposed rule, was only $3.919 per head (EXHIBIT 13, p. vii), and APHIS’ upper-end cost estimate was only $0.76 per head more, the articles by Dr. Ringwall actually relied on by the APHIS ID Study estimated the actual cost of working the cattle, excluding the cost of ear tags, using the state-of-the-art cattle working system wa! s a total of $7.27 per head, provided that 10,000 head of cattle were worked through the cattle working system on an annual basis (EXHIBIT 15).

 

This is but one glaring example of how the authors of the APHIS ID Study deceived the public and APHIS by misusing legitimate data for the purpose of generating an inaccurate and fictitious low estimate for the cost that typical U.S. cattle producers would incur under a bookend-type animal ID system, as is contemplated in the proposed rule. This example alone reveals that the APHIS ID Study manipulated data to underestimate the basic cost of working cattle by $3.35 per head, even when worked in a state-of-the-art cattle handling facility that is beyond the reach of many, if not most, U.S. cattle producers.

 

Another glaring example of data manipulation in the APHIS ID Study is its treatment of shrink.  For the cow/calf industry, the APHIS ID Study included only 25 percent of the expected shrink as a cost to the cow/calf producer (EXHIBIT 13, p. 18). The APHIS Study rationalized this deceptive ploy on the basis that the buyer of the shrunken cattle would realize a compensatory gain when ! the cattle were sold and subsequently afforded an opportunity to eat and drink (EXHIBIT 13, p.18). The practical effect of this misuse of data, of course, is that the true cost of shrink borne by U.S. cow/calf producers for tagging their cattle was understated by 75 percent. Based on the fact that APHIS used the APHIS ID Study’s shrink estimate, it too reduced the true cost of shrink that cow calf producers will realize when tagging cull cows and calves by 75 percent.

 

APHIS is dead wrong to assume that “the cattle industry” would realize only a 25 percent net loss because the buyer would benefit from a compensatory gain. This is because the cattle industry is a distinct and separate industry from the meatpacking industry and when a cattle industry participant sells cull cows to a meatpacking industry participant and APHIS assigns only 25 percent of the cattle industry participant’s cost to the cattle industry, then APHIS has affectively robbed 75 percent of the cost actually realized by the cattle industry and gifted the monetary value of that cost directly to the meatpacking industry. By slight-of-hand, APHIS silently attempted to rob Peter to pay Paul in its effort to artificially lower the true cost of its ridiculously expensive mandatory animal identification scheme.

 

It must be noted that despite APHIS’ intimation that that the U.S. cattle herd, as it measured by dividing the total cattle and calf inventory by the total number of U.S. cattle operations, “is now nearly 100 head” (see supporting document, at 12), the average size of the U.S. beef cow herd remains at less than 42 mother cows per herd (as measured by dividing the total number of beef cows by the total number of beef cow operations). It is those cow/calf producers, which collectively have an average herd size of less than 42 head, who will be directly burdened and financially disadvantaged by the proposed rule. And, many, if not most, of those cow/calf producers do not have access to the state-of-the-art cattle working system used in Dr. Ringwall’s study. Therefore, the actual costs borne by ! U.S. cow/calf producers would be expected to be higher than Dr. Ringwall projected.

For the foregoing reasons, APHIS’ reliance on the 2009 APHIS ID Study to estimate the cost of the proposed rule on U.S. cattle producers is unjustified, erroneous, and deceitful. As a result of APHIS’ direct reliance on the APHIS ID Study, APHIS’ cost estimates likewise are unjustified, erroneous and deceitful. Based on the realistic cost estimates generated by Dr. Ringwall’s study, the proposed rule’s start-up costs and annual costs, which would range from a low of $554 million to a high of $1.9 billion, are unfeasible. APHIS’ proposed rule is a financially unworkable albatross that will economically harm U.S. cow/calf producers who will not be afforded any opportunit! y to recoup their costs in the marketplace.

 

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress. 

 

# # #

 

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com  or, call 406-252-2516.

R-CALF United Stockgrowers of America

“Fighting for the U.S. ! Cattle Producer”

For Immediate Release                                                                         Contact: R-CALF USA CEO Bill Bullard

December 15, 2011                                                                                          Phone: 406-252-2516; r-calfusa@r-calfusa.com

8 Days of Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part II of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA has launched an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part II:  By Deploying the Underhanded Tactic of “Bait-and-Switch,” APHIS Deceptively Scared the Livestock Industry, Congress, and the Public Into Falsely Believing that a Mandatory Animal Identification System was Absolutely Critical to Protect the U.S. from Foot-and-Mouth Disease

  1. APHIS’ Flip-Flop Regarding Its Principal Justification for a Mandatory Animal Identification System Demonstrates that APHIS has an Ulterior Motive for the Proposed Rule that Is Unrelated to the Prevention or Control of Animal Diseases

Remarkably, while APHIS touted the risk of FMD introduction and spread as the principal justification – indeed its “poster-child disease” – for a national animal identification system (NAIS) in the years, months and days leading up to its publication of the proposed rule, FMD is no longer included among the diseases APHIS identifies as justification for its proposed rule. In fact the voluminous, 28-page proposed rule does not even mention FMD, let alone reference it as a disease APHIS would expect to prevent or control should it finalize its proposed rule. Any mention of FMD is now relegated to a small, hypothetical and ambiguous section in APHIS’ supporting documents, in which APHIS provides the disclaimer that its hypothetical FMD discussion “does not specifically model conditions that may exist under the proposed rule;” and in whi! ch APHIS provides no explanation regarding how its proposed rule would, in any way, protect against a potential outbreak or spread of FMD.

It is abundantly clear that while APHIS has long assigned substantial weight to the potential to mitigate FMD introduction and spread in the United States in its historical and ongoing effort to impose a national animal identification system on the U.S. cattle industry, it has now completely abandoned its flagship disease.

In its 2008 risk evaluation of South Korea, APHIS described in detail South Korea’s evolving national animal identification system to highlight the system as a measure to effectively mitigate FMD spread following a FMD outbreak (EXHIBIT 6, pp. 24, 25). Similarly, in recent congressional testimony, APHIS testified that Japan had adopted a national animal identification system and that the need for such a unified national animal identification system had assumed greater urgency in the U.S. due to FMD (EXHIBIT 7). APHIS further claimed that a national animal identification system would be critical in mitigating the risks posed by potential FMD outbreaks, and vehemently argued that the costs of a national animal identification system must be compared with the estimated billions of dollars in losses th! e U.S. would be expected to suffer from a FMD outbreak (EXHIBIT 7). Recently, in APHIS’ risk analysis section of its risk evaluation for the agency’s proposed rule to regionalize a Brazilian state, APHIS describes Santa Catarina’s animal identification systems in significant detail and claims the systems would allow officials to trace the movement of cattle within Santa Catarina, presumably to mitigate the spread of a FMD outbreak in Santa Catarina (EXHIBIT 8, pp. 45-47). Then, within just days of publishing the proposed rule, APHIS published a notice of availability (notice) and request for comment that referenced its APHIS Evaluation of the Foot and Mouth Disease Status of Japan risk analysis as the basis for deciding whether to resume trade in FMD-susceptible products with Japan (see 76 Fed. Reg. 44503-504 (July 26, 2011)). APHIS stated in its notice: “The risk analysis will also serve as the basis for our determination whether to allow the resumption of the importation of whole cuts of boneless beef from Japan.” Id., 504, col 1. APHIS’ referenced risk analysis regarding the potential risk of FMD introduction from Japan stated, “Japan’s cattle identification system ensures adequate trace-back capability in the event of an [FMD] animal disease outbreak” (EXHIBIT 9, p. 17).

As demonstrated above, APHIS for many years concocted a virtual taxpayer-funded fervor, both publicly and within the entire U.S. livestock industry, to advance its goal to establish a mandatory animal identification system in the United States – which goal manifested into the proposed rule – principally, if not exclusively, by claiming a mandatory animal identification system is essential to prevent the introduction and/or spread of FMD in the United States. APHIS’ absolute silence regarding any potential for the proposed rule to mitigate the introduction or spread of FMD in the U.S. is inexplicable and provides compelling e! vidence that APHIS has an ulterior motive for proposing the proposed rule, which ulterior motive has absolutely nothing to do with prevention or control of animal diseases.

APHIS’ proposed rule is a complete scam. APHIS provides no support whatsoever for its proposed rule based on its multi-year, multi-million dollar (EXHIBIT 10, p. 1), taxpayer-funded public-relations and nationwide marketing campaign to hype a mandatory animal identification system as essential to protecting U.S. livestock from the most contagious disease known to cloven-hoofed animals – FMD; and, as will be discussed below, APHIS’ proposed rule directly contradicts APHIS’ claimed objective to carry out its statutory responsibilities using a scientific, risk-based approach.

APHIS’ inexplicable abandonment of the threat of an FMD introduction as its principal justification for a mandatory animal identification system as is clearly revealed in the proposed rule is akin to the hideous and unlawful scheme known as bait-and-switch in the retail industry.  Under a bait-and-switch scheme, retailers lure consumers into their establishment by advertising an item known to attract consumers; but, when the consumer arrives at the establishment, the item that lured them there is unavailable, and the retailer hopes the unsuspecting consumer will nevertheless purchase an alternative item. This deceptive tactic is precisely what APHIS has employed to coerce unsuspecting cattle producers to buy into the proposed rule – it aggressively advertised FMD as the principal disease ne! cessitating a mandatory identification system and when the proposed rule is published, FMD suddenly is abandoned as justification for the proposed rule, with only less contagious diseases remaining.

Like the victimized consumer duped by a retailer’s deceptive bait-and-switch scheme, cattle producers have no moral or ethical obligation to comply with APHIS’ equally deceptive bait-and-switch tactic deployed in the proposed rule, and they should have no legal obligation either.

If APHIS proceeds in any way other than to immediately withdraw the proposed rule, it must fully and comprehensively explain why APHIS abruptly abandoned FMD as a justification for the proposed rule. As part of that explanation, APHIS must describe in detail the specific role that a mandatory animal identification system played, if any, during the outbreaks of FMD that occurred very recently during this decade in the United Kingdom, South Korea, Japan, and Paraguay.  Specifically, APHIS must describe in detail the degree to which traceability in those nation! s reduced the spread of FMD or otherwise assisted in combating the disease.

Further, and in addition to the proposed rule’s failure to address APHIS’ historical insistence that a mandatory animal identification system is needed to address FMD, the proposed rule also fails to explain or describe what measures and operations APHIS will deploy to control or eradicate any specific diseases. APHIS’ authority to control or eradicate diseases (note that “control” and “eradicate” have very different meaning) is conferred by the AHPA’s authorization to carry out operations and measures for those purposes. (See 7 U.S.C. 8308 (a), (“The Secretary may carry out operations and measures to detect, control, or eradicate any pest or disease of livestock. . .”). However, the proposed rule is silent on any specific “operations and measures” the agency intends to carry out to eradicat! e or control any specific disease.

Due to this additional deficiency contained in the proposed rule, and if the agency proceeds in any way other than to immediately withdraw the proposed rule, the agency must explain and describe to the U.S. cattle industry:

  1. The specific diseases APHIS intends to “control” under the proposed rule.
  2. The specific nature of the “operations and measures” APHIS intends to use to “control” each of the specific diseases APHIS intends to “control” and a detailed description of the role of the traceability contemplated in the proposed rule in carrying out such “operations and measures.”
  3. The specific diseases APHIS intends to “eradicate” under the proposed rule.
  4. The specific nature of the “operations and measures” APHIS intends to use to “eradicate” each of the specific diseases APHIS intends to “eradicate” and a detailed description of the role of the traceability contemplated in the proposed rule in carrying out such “operations and measures.”

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com or, call 406-252-2516.

R-CALF United Stockgrowers of America

“Fighting for the U.S. Cattle Producer”

For Immediate Release                                                                                                                                                                                      Contact: R-CALF USA CEO Bill Bullard

December 14, 2011                                                                                                                                                                                             Phone: 406-252-2516; r-calfusa@r-calfusa.com

R-CALF USA’s Opposition to USDA’s Proposed Mandatory Animal Identification Rule:  Part I of VIII-Part Series

Billings, Mont. – As promised, R-CALF USA today launches an 8-day series of news releases to explain in detail many of the reasons our members vehemently oppose the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service’s (APHIS’) proposed mandatory animal identification rule titled, Traceability for Livestock Moving Interstate (proposed rule).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with the proposed rule that R-CALF USA described in its voluminous comments submitted to APHIS on Dec. 9, 2011. Click here to view the entire 41-page comment submitted by R-CALF USA, which includes all of the group’s citations to specific references that are removed from this news release to save space.

Part I:  By Shirking its Responsibility Under the U.S. Animal Health Protection Act to Prevent the Introduction and Spread of Foreign Animal Diseases, APHIS Is now a Leading Cause, if not the Leading Cause, of Livestock Disease Problems Experienced in the United States

  1. APHIS’ Failure and Refusal to Properly Prevent the Introduction and Spread of Foreign Animal Diseases Belies APHIS’ Claim that the Proposed Rule Is Needed to Support Efforts by U.S. Cattle Producers to Protect their Herds from Disease

APHIS’ ongoing policy of willfully and knowingly allowing the perpetual and extensive introduction and reintroduction and subsequent spread of the very diseases APHIS identifies as justification for the proposed rule, e.g., bovine spongiform encephalopathy (BSE), bovine tuberculosis (TB), and bovine brucellosis (brucellosis), is indefensible, unconscionable, and constitutes outright defiance of the agency’s statutory obligation to protect U.S. livestock from the introduction and spread of foreign animal disease.

Further, APHIS’ ongoing policy of willfully and knowingly exposing U.S. livestock to an increased risk of foreign animal disease introduction, e.g., the risk of introduction of foot-and-mouth disease (FMD), is equally indefensible, unconscionable, and likewise constitutes outright defiance of the agency’s statutory obligation to protect U.S. livestock from the introduction and spread of foreign animal disease.

Specific examples of APHIS’ failure and refusal to prevent the introduction and spread of foreign animal diseases, along with examples of its actions to expose U.S. livestock to a heightened risk for disease, are enumerated below.  The following list clearly demonstrates that APHIS is a leading cause, if not the leading cause, of livestock disease problems experienced in the United States. Because APHIS is a leading cause, if not the leading cause, for ongoing animal disease outbreaks in the United States, its claimed intent within the proposed rule to protect the safety of U.S. livestock is both baseless and absurd.

Despite having conducted a 2006 quantitative risk evaluation for BSE that predicts the U.S. would import 19 to 105 BSE-infected Canadian cattle, resulting in 2 to 75 infections of U.S.-born cattle over the next 20 years pursuant to USDA’s over-30-month rule (OTM Rule) (EXHIBIT 1, p. 53347); and, despite a July 2008 court-ordered injunction directing APHIS to reopen the OTM Rule and “revise any provision of the OTM Rule it deems necessary (EXHIBIT 2, p. 21); and, despite the detection of 12 BSE infected Canadian cattle that meet the OTM Rule’s age requirement for importation into the United States (including the February 2011 case of BSE detected in a Canadian cow), APHIS continues to ignore the fully expected, continual reintroduction of Canadian BSE into the United States.

Despite having full and complete knowledge of a 2006 report by USDA’s Office of Inspector General (OIG) that states 75 percent of bovine TB cases detected in U.S. slaughtering plants originated in Mexico (EXHIBIT 3, pp. 19, 20); and, despite the OIG’s other findings that, “These infected animals were identified in 12 different States” and “animals of Mexican origin spent up to 14 months at U.S. farms before going to slaughter, with each case potentially spreading the disease” (EXHIBIT 3, pp. iii); and, despite APHIS’ own report that states, “From 2001 through February 2009, 236 out of 329 slaughter cases were traced to Mexico,” which means nearly 72 percent of all TB cases detected at slaughter were caused by APHIS’ inadequate import restrictions for Mexican cattle imports (EXHIBIT 4, p. 62); and, despite APHIS’ own finding that states, “Each year 1-2 infected animals per 100,000 animals imported from Mexico are identified [as bovine TB-infected] through slaughter detection or epidemiologic investigations (EXHIBIT 4, p. 1);” and, despite repeated requests by R-CALF USA for immediate action to address this willful introduction of bovine TB into the U.S. cattle herd, APHIS continues to cause the annual introduction and spread of bovine TB by failing to implement adequate import restrictions for Mexican cattle.

Despite having full and complete knowledge that Canadian cattle imports introduce bovine TB into the U.S. as evidence by three bovine TB-infected cattle imported into the U.S. from Canada in 2008, with a total of five TB-infected Canadian cattle detected in the U.S. during the past seven years (EXHIBIT 4, pp. 61, 62), and, despite R-CALF USA’s request that APHIS address this known disease source, APHIS continues to cause the introduction of bovine TB from Canadian cattle by failing and refusing to adequately strengthen U.S. import restrictions for Canadian cattle.

Despite having full and complete knowledge that the 11 factors used by the agency to determine the potential risk for foot-and-mouth disease (FMD) outbreaks in both entire countries and regions within a country are wholly incapable of predicting actual FMD risks (as was definitively proven following APHIS’ FMD risk evaluations for Uruguay, Argentina, the Republic of South Africa, and South Korea.), APHIS nevertheless persists in its efforts to apply the same, failed 11 factors to facilitate imports into the United States of beef and cattle from FMD-affected countries, notably from the Patagonia South Region of Argentina and Santa Catarina, Brazil.

Despite having full and complete knowledge that the relocation of the Plum Island, N.Y., research facility to Manhattan, Kansas, will increase the risk of FMD exposure for U.S. livestock, APHIS, in cooperation with the U.S. Department of Homeland Security (DHS), proposes to transfer live FMD viruses and research on live FMD viruses to the U.S. mainland.  APHIS and DHS propose this relocation despite full knowledge that: 1) there is no support for the contention that FMD research can be done as safely at Manhattan, Kansas, as at Plum Island, N.Y. (EXHIBIT 5, p. 46); 2) Plum Island is the only location determined to be of low risk with respect to the likelihood of FMD infection (EXHIBIT 5, p. 42); 3) “Plum Island’s lack of animals placed it at an advantage with respect to the likelihood that FMD virus would become established after being released and spread from the site (EXHIBIT 5, p. 42);” 4) Manhattan, Kansas, is in an area “where the virus would have ample opportunity to spread rapidly after release because of the presence of susceptible livestock and wildlife (EXHIBIT 5, p. 42); and, 5) “for all sites except Plum Island, the wind could potentially transport viral pathogens significant distances and that this pathway is not limited for them, as it is on Plum Island” (EXHIBIT 5, p. 42).

The foregoing discussion reveals and documents that APHIS is a leading cause, if not the leading cause, for the continual introductions and spread of foreign animal diseases by failing and refusing to comply with its statutory responsibility to prevent the introduction and spread of foreign animal diseases. The diseases APHIS is causing to be introduced and spread in the United States include the very diseases claimed as justification for its proposed rule. APHIS’ proposed rule would burden each and every U.S. cattle producer that moves cattle interstate by mandating the individual identification of their cattle. APHIS could not be more disingenuous in its claim that the proposed rule is intended to support U.S. cattle producers in their effort to protect their cattle herds from disease when APHIS itself is actively facilitating the introduction of dangerous foreign animal diseases

APHIS’ actions are akin to the hideous and unlawful scheme of organized crime to rob business owners of their money and then offer to mitigate the affect of their robberies in exchange for regular payments from the business owners, while making no commitment to prevent others from continually robbing their businesses. Like those victimized business owners, U.S. cattle producers have no moral or ethical obligation to pay the cost of mitigating diseases in the United States that are directly caused by APHIS’ recalcitrance, and they should have no legal obligation either.

If APHIS proceeds in any way other than to immediately withdraw it proposed rule, it must thoroughly and comprehensively explain to U.S. livestock producers why it is planning to burden them with the cost of a mandatory animal identification system to control diseases that APHIS is willfully and knowingly allowing into the United States each year in direct defiance of its statutory responsibility under the AHPA.

R-CALF USA encourages readers to share this information with their neighbors, state animal health officials, and their members of Congress.

# # #

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com or, call 406-252-2516.

R-CALF United Stockgrowers of America

“Fighting for the U.S. Cattle Producer”

For Immediate Release Contact: R-CALF USA CEO Bill Bullard

August 9, 2011 Phone: 406-252-2516; r-calfusa@r-calfusa.com

USDA Spurns U.S. Cattle Industry: Issues Overreaching, Intrusive Mandatory Animal Identification Rule

Billings, Mont. — In direct defiance of fundamental recommendations to preserve branding as a means of official animal identification and to not include cattle less than 18 months of age in any national animal identification system made by R-CALF USA and several other U.S. livestock groups, the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) today released an early version of its proposed rule to implement a national animal identification system titled “Traceability for Livestock Moving Interstate” (proposed rule).

The proposed rule would remove the hot-iron brand from among the list of official identification devices that cattle producers could choose to comply with the new federal mandate. It also encompasses cattle less than 18 months of age that would be triggered at USDA’s discretion one-year after USDA determines that older-aged cattle are substantially identified.

“The proposed rule, expected to be published in tomorrow’s Federal Register, not only spurns the U.S. livestock industries key recommendations regarding the hot-iron brand and younger cattle, but also, it snubs the critical recommendation by Agriculture Secretary Tom Vilsack’s own Advisory Committee on Animal Health, which urged the Secretary to provide at least a 120-day public comment period for the proposed rule. Instead, Vilsack is only providing a 90-day public comment period,” said R-CALF USA CEO Bill Bullard.

Bullard said the 90-day comment period will run at a time when tens of thousands of livestock producers are battling perhaps the nation’s most widespread and devastating drought and coincides with the cattle industry’s busy calf-weaning and calf-shipping season.

According to Bullard, USDA’s rejection of its own advisory committee’s recommendation to give producers more time to respond to the 114-page proposed rule suggests it already has decided to force this unacceptable mandate on U.S. livestock producers.

“USDA is running roughshod over the U.S. livestock industry with its bureaucratic ‘we know better than the entire industry’ attitude,” said Bullard adding, “USDA officials have deceived livestock producers by pretending to seriously consider producer recommendations and then springing these unworkable and unacceptable mandates on us in its proposed rule.”

“It’s obvious that USDA did not listen to the multitude of U.S. livestock producers who participated in the agency’s nationwide NAIS (National Animal Identification System) listening sessions in 2009 and overwhelmingly opposed USDA’s efforts to force individual identification on younger cattle and any mandate that would limit a producer’s choice regarding how they identify their livestock,” said R-CALF USA President George Chambers.

Chambers said his group will be calling for new listening sessions to help USDA recall the serious concerns producers raised earlier but have since been either forgotten or ignored.

Chambers said the proposed rule severely restricts producer choices because it removes completely the option for a producer to unilaterally choose to continue using the hot-iron brand when shipping cattle across state lines.

“Under the proposed rule, individual producers cannot choose on their own to continue using the hot-iron brand to identify their cattle. Nor can an individual state on its own choose to identify the cattle leaving their state with a hot-iron brand. Only if two state governments mutually agree to use the now delisted hot-iron brand will that option be available to either U.S. cattle producers or individual states,” Chambers said.

He continued to explain, “USDA did not have to attack our industry’s hot-iron brand or add younger cattle to the proposed rule in order to improve animal disease traceability in the United States, but we believe it has chosen to do so to appease the World Trade Organization and other international tribunals.”

Chambers also explained that the proposed rule itself provides absolute proof that the hot-iron brand remains an effective means of identifying animals in interstate commerce:

The proposed rule expressly allows producers to use hot-iron brands on their horses when shipping across state lines. This provision completely obliterates USDA’s feeble argument that it cannot require the 36 non-brand program states to accept a registered brand originating in the 14 brand program states as an official identification device — that’s precisely what USDA is doing with horses. It’s clear USDA is misleading us to achieve some ulterior motive.

“This proposed rule reduces flexibility and reduces producer choices and we are urging U.S. livestock producers to aggressively oppose the proposed rule,” Chambers concluded.

The public can submit comments on the proposed rule by either of the following methods:

– Federal eRulemaking Portal: Go to

http://www.regulations.gov/#!documentDetail;D=APHIS-2009-0091-0001.

– Postal Mail/Commercial Delivery: Send your comment to Docket No. APHIS-2009-

0091, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River

Road Unit 118, Riverdale, MD 20737-1238.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 46 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. For more information, visit www.r-calfusa.com or, call 406-252-2516.

Note: The Proposed Rule can be viewed at http://r-calfusa.com/animal%20id/110809USDAProposedRule.pdf

Note: To remove yourself from this list, reply to this e-mail and include the word “unsubscribe” in the subject line.

 

R-CALF United Stockgrowers of America

“Fighting for the U.S. Cattle Producer”

For Immediate Release                                      Contact: R-CALF USA Communications Coordinator Shae Dodson-Chambers

Oct. 20, 2010                                                                                                        Phone: 406-672-8969; sdodson@r-calfusa.com

R-CALF Applauds USDA Decision to Proceed with GIPSA Rule;

Calls NCBA Attack on USDA Deceitful, Irresponsible

Billings, Mont. Today, U.S. Agriculture Vilsack reportedly declined the request by 115 members of Congress to complete a comprehensive economic analysis of the proposed competition rule (GIPSA rule) published by the U.S. Department of Agriculture’s (USDA’s) Grain Inspection, Packers and Stockyards Administration (GIPSA). In a news release also issued today, the National Cattlemen’s Beef Association (NCBA) called the Secretary’s actions “irresponsible” and asserted that the GIPSA rule “…could very likely result in financial devastation to a critical part of our country’s economy…”

“R-CALF USA fully supports the Secretary’s decision,” said R-CALF USA President/Region VI Director Max Thornsberry. “The call for a new economic analysis by less than a third of the House and NCBA was, pure and simple, an effort to delay – if not completely derail – the long-awaited GIPSA rule. NCBA could not be more deceptive in its attack on the Secretary given the Secretary had already granted NCBA an additional 90-day comment period in response to NCBA’s July 8, 2010, letter to USDA that asked for an extension of the comment period so NCBA could perform its own economic analysis.”

NCBA’s request stated, “Therefore, we need (NCBA needs) additional time to adequately perform a full legal and economic analysis on the impacts of this rule.”

“Now that NCBA received the accommodation it requested, it has suddenly changed horses in order to achieve an even longer delay in the rulemaking process,” said Thornsberry.

“NCBA’s allegation that the GIPSA rule will cause harm to the economy is absolutely baseless and irresponsible,” said R-CALF USA CEO Bill Bullard. “NCBA claims outright that the GIPSA rule will hurt producers because it could result in packers’ deciding to stop participating in marketing agreements with producers, which, NCBA claims, would result in all cattle being valued at an average price, regardless of quality.”

Bullard said this is evidence that NCBA is carrying the packers’ water by conveying the packers’ hollow threats directly to producers.

“This is the same sort of threat the packers made during the rulemaking for country-of-origin labeling (COOL) when packers threatened they would require producers to pay for third-party certification of origin claims, require producers to make their records available to the packers for ‘random producer audits,’ and pass all the costs associated with COOL onto producers,” he said. “Those were hollow threats then, and these are hollow threats today.

“There is absolutely no language in the GIPSA rule that would prohibit value-added or other legitimate marketing agreements between producers and packers,” Bullard continued. “These programs benefit packers as much as they benefit the producer, and the only way you could believe this NCBA nonsense is if there was absolutely no competition between packers for fed cattle or in the wholesale beef market.”

He pointed to the 2007 multi-million dollar study that Congress directed GIPSA to complete, which states in part, “Packers also identified AMAs (alternative marketing arrangements) as an important element of branded products and meeting consumer demand by producing a higher quality, more consistent product.”

Bullard said packers will not forgo the improved efficiency and profitability they gain through value-based marketing arrangements simply because the GIPSA rule would require them to maintain records that explain why price adjustments, including premiums and discounts, were applied to a producer’s cattle.

“We are dismayed by the outright scare tactics employed by NCBA and their meatpacking partners,” Thornsberry said. “But, we are pleased that USDA is not bowing to NCBA’s unscrupulous antics and is proceeding to finalize the GIPSA rule. In this rulemaking process, everyone has been given a full five months to submit their analyses and concerns, and these submissions will enable GIPSA to respond to and address any assertions of benefits and costs that were not already addressed in the proposed GIPSA rule that was made publicly available June 22.

“We’re not about trying to scare producers into opposing the most significant rulemaking our industry has seen in decades and one that holds promise to reverse the ongoing erosion of competition within our industry,” Thornsberry concluded. “Instead, we want producers to take a critical look at the rule itself and to formulate thoughtful comments that they can submit to USDA, which is how we can ensure that the rule will do what needs to be done to prevent the highly concentrated meatpackers from abusing their inherent market power.”

R-CALF USA encourages producers to read the rule, along with R-CALF USA’s summary of how the rule would impact the U.S. cattle industry by visiting http ://www.r-calfusa.com/Competition/gipsaRule.htm, and also encourages producers to submit their own written comments to GIPSA before the comment deadline of Nov. 22, 2010.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounder! s, and/or feedlot owners. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516.

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