Cattlemen’s Capitol Concerns J A N U A R Y 2 3 , 2 0 1 4 V O L U M E 3 , I S S U E 5 0

In this Issue

CME Beef Industry Scholarship Celebrates 25 Years with 25 Scholarships

Join the DC Office for a Public Policy Internship

Support Fellow Ranchers: Comment on Sage Grouse Proposed Regulations

Legislative Watch

New on the Web

The Beef Industry Weighs in on USDOT Truck Weights Study

Cattle Fax Update

NBCA’s Cattlemen to Cattlemen

Your NCBA

Contacts:

Chase Adams, cadams@beef.org 202-879-9125

Shawna Newsome, snewsome@beef.org 202-879-9138

Beltway Beef is a weekly report from 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

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For cattlemen and women, investing in the future and ensuring the next generation has the skills and knowledge to lead the industry is of paramount importance. We’re proud to have partnered with CME Group in this effort for what will be our 25th year of the CME Beef Industry Scholarship.

The CME Beef Industry Scholarship was introduced in 1989 to celebrate the 25th anniversary of the Live Cattle futures contract on the Chicago Mercantile Exchange. The scholarship recognizes and encourages talented students who will one day be industry leaders. This year marks the 25th year for presentation of these scholarships and the 50th anniversary of the Live Cattle futures contract.

In honor of this milestone, the CME Group is awarding 25 scholarships of $1,000 to outstanding students who are pursuing careers in the beef industry.

“This scholarship program is an investment to the future of our industry and its future leaders ,” said Scott George, NCBA president. “We are proud to have this lasting partnership with CME Group and to offer $25,000 this year for these students to advance their careers in the beef industry.”

Each applicant must have demonstrated a commitment to a career in the beef industry through classes, internships or life experiences, as well as have written an essay describing a risk confronting

the beef industry with their solution to managing that risk.

“Over the last 25 years, this scholarship program has enabled us to invest in the next generation of our nation’s food producers,” said Tim Andriesen, Managing Director, Agricultural Commodities and Alternative Investments, CME Group. “NCBA remains a critical partner in advancing risk management education to future beef industry leaders.”

The top winner will receive an all-expense paid trip to the 2014 Cattle Industry Convention and NCBA trade show. All of the winners will be recognized at the Best of Beef Breakfast during the convention.

CME Beef Industry Scholarship Celebrates 25 Years with 25 Scholarships

Join the DC Office for a Public Policy Internship

College students are encouraged to join the Washington, D.C., office for a semester to learn about public policy.

The joint internship with the National Cattlemen’s Beef Association’s and the Public Lands Council for fall 2014 semester will begin Sept. 8, 2014 and end Dec. 13, 2014. The application will remain open through Feb. 17, 2014.

“NCBA and PLC’s internship is a great opportunity to see firsthand a grassroots effort at work in the nation’s most powerful city,” said Rachel Abeh, a Montana State

University senior and fall 2013 intern. “I have a better understanding of the complexity and implications of the political issues facing our ranchers back here in the West, along with a greater appreciation for the lobbyists who work on behalf of our producers day in and day out.”

This is a great opportunity for students with an interest in the beef industry and public policy. From food safety and trade to environmental issues and taxes, this internship will give college students the opportunity to work alongside staff on many critical issues affecting U.S. cattlemen

and women. The internship is designed to work closely with the lobbying team on Capitol Hill; to assist with NCBA and PLC’s regulatory efforts; and to work closely with the communications team.

To apply, interested college juniors, seniors or graduate students should submit the application, college transcripts, two letters of recommendation and a resume to internships@beef.org. More information about the NCBA public policy internship is available on www.BeefUSA.org

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B E L T W A Y B E E F

New on the Web

Check out the Beltway Beef blog for inside perspectives on issues affecting U.S. cattlemen and women. You can sign up on the blog to receive an email when new information is posted. You can also follow us on Twitter, be a fan of us on Facebook, check out our latest photos on Flickr or watch video updates on our YouTube page.

Legislative Watch S. 258 and H.R. 657— Grazing Improvement Act To amend the Federal Land Policy and Management Act of 1976 to improve the management of grazing leases and permits, and for other purposes. NCBA urges a YES vote on S. 258 and H.R. 657. Key Sponsors: Sen. John Barrasso (R-Wyo.), Rep. Raúl Labrador (R-Idaho)

H.R. 1462 — Renewable Fuel Standard Reform Act Amends the Clean Air Act to revise the renewable fuel program. NCBA urges a YES vote on H.R. 1462. Key Sponsor: Rep. Bob Goodlatte (R-Va.)

S. 1343 — Farmer Identity Protection Act Protects the personal information of livestock producers from being distributed to third parties. NCBA urges a YES vote on S. 1343. Key Sponsors: Sens. Chuck Grassley (R-Iowa) and Joe Donnelly (D-Ind.)

H.R. 3189 — Water Rights Protection Act Provides a means to combat the recent directive that allows the United States Forest Service (USFS) to seize private water rights without just compensation. NCBA urges a YES vote on H.R. 3189. Key Sponsor: Rep. Scott Tipton (R-Colo.).

H.R. 311 — Farmers Undertake Environmental Land Stewardship (FUELS) Act Directs EPA to change the Spill Prevention, Control, and Countermeasure (SPCC) rule to consider a producer's risk when it comes to maintaining costly oil storage facilities. The bill would allow EPA to create practical exemptions for small farmers and ranchers. NCBA urges a YES vote on H.R. 311. Key Sponsor: Rep. Rick Crawford (R-Ark.) S.1900 & H.R. 3830 — Bipartisan Congressional Trade Priorities Act of 2014 To establish strong rules for trade negotiations and Congressional approval of trade pacts, to deliver trade agreements that boost U.S. exports and create American jobs. NCBA urges a YES vote on S.1900 and H.R. 3830. Key Sponsors: Sen. Max Baucus (D-MT), Orrin Hatch (R-UT), Rep. Dave Camp (R-MI)

Support Fellow Ranchers: Comment on Sage Grouse Proposed Regulations By Theodora Dowling of Etna, California

Whether you’re in the thick of them or have never seen a sage grouse in your life, the time to speak up for ranching and rural America is now. Sage grouse are found in 11 western states, and livestock producers in those states are in the fight for their lives to ward off impending regulations by the federal government. If the bird gets listed under the Endangered Species Act in 2015, an ocean of federal regulation will swallow whole many ranching families and their communities. Livestock operators on public and private land alike could share the fate of the northwestern timber industry after the spotted owl listing. The kicker: whether or not the bird is listed, ranchers who operate on public lands will have to live with new regulations—possibly unbearable ones—

imposed on them by the federal land management agencies.

These new regulations, made in the name of “preventing a listing,” could well be the medicine that’s worse than the disease, said John O’Keeffe, past chairman of the NCBA Federal Lands Committee and current chairman of the Sage Grouse Committee for Public Lands Council. He said that’s why NCBA and PLC are pulling out the stops to put together solid, substantive comments and help ranchers do the same. By working with their state affiliates and the high-powered legal minds at Western Resources Legal Center, NCBA and PLC will submit comments to the Bureau of Land Management and U.S. Forest Service that will give them

legal standing in case industry is forced into a lawsuit.

A future legal challenge is not out of the question, given some of the draconian proposals coming out of those agencies—such as seven-inch stubble height requirements in many areas; proposals to allow for the permanent retirement of grazing permits; and outright grazing closures on thousands of acres of sage grouse habitat. Mind you, many of these acres are prime habitat for the very reason that generations of ranching

families have managed them well.

If you’ve spent any time on the sagebrush sea, you’ll know that there’d be no water for wildlife, but for ranchers. You’ll know that without grazing and rancher-firefighters, wildfire will ravage the range at temperatures that will kill every living organism in the soil. You’ll know that private ranchlands are prime sage grouse habitat. You’ll know that, without their federal land grazing rights, many of the owners of those private lands

will likely not stay in ranching. What will happen to the grouse then?

No matter where you’re from, if you believe that ranching and grazing are good for the sage grouse and good for families, communities, small businesses, and schools, you should comment. We must win this argument. It helps that we have sound science and decades of proof on our side, but unless we speak up, the federal government appears poised to ignore the truth: sage grouse cannot survive without ranching.

Please visit our website for information on how you can comment.

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The Beef Industry Weighs in on USDOT Truck Weights Study

By Jim Handley Executive Vice President Florida Cattlemen’s Association Truck weight regulations affect every cattle producer’s bottom line. In my home state of Florida, we don’t have the abundant resources to feed out cattle. Instead, we operate primarily as a cow/calf state and ship our

calves west to feed yards in areas such as the Texas panhandle, Oklahoma, Colorado, Kansas and Nebraska, where the resources are much more readily available.

Contrary to popular belief, the days of the cattle drive have been over for a long time. Cattle are no longer shipped by rail, and nearly all of the transportation (with the exception of Hawaii) occurs via truck. For producers in areas far from feed yards, the added cost of shipping comes out of their profit margin, which is overly painful in a time of economic hardship like today.

While we have a vast network of interstate highways and critical infrastructure in the states, we are hindered by outdated truck weight laws that keep us from reaching our full potential. The cost of the truck weight burden is borne by cow/calf producers like myself in every state.

In Florida, current trucking costs are approximately $3.80 per mile and have been as high as $4.00 per mile. Consider a truck traveling from Okeechobee, Fla. to Amarillo, Texas. At $3.80 per mile, traveling 1,750 miles, the cost would be $6,650. For a 50,000 lbs truck load, the cost per pound is 13.3 cents. If the gross limit is increased by 10% (10,000 lbs.) that would increase the tare weight by 20% (10,000 lbs), from 50,000 lbs to 60,000 lbs. This increase would reduce costs by 2.2 cents per pound to 11.1 cents per pound. This could reduce the annual shipment of 800,000 calves at an average of 500 lbs. per calf, from 8,000 semi-truck loads per year to 6,400 loads per year.

The higher ratio of 13.3 cents per pound is an additional net cost of $8,800,000 annually to the Florida cattle industry. Meanwhile, sealed containers with imported goods are allowed to be shipped in

excess of the truck weight limit on the very same roads as our domestic products that must be shipped under the weight limit. That puts us at a competitive disadvantage to not only our competition in the U.S., but around the world.

According to Meat & Livestock Australia, Australia produces four percent of the world's beef supply and is the third largest beef exporter. Like the United States, large population centers are found near the coastal areas with beef production found in the rural areas. Unlike the United States, Australia does not have a major feed yard sector as part of its production. However, cattle are shipped by truck from the farm or ranch to the abattoir, or beef packing facility, once the animal is ready for harvesting. Yet, they are not burdened with outdated truck weight regulations and their ability to use much larger and heavier trucks gives them the advantage of consolidating shipments and keeping their shipping costs low.

The Florida Cattlemen’s Association stands with NCBA in support of not only higher truck weights but the addition of a sixth axle to compensate for weight displacement and braking abilities. A sixth axle truck weighing 97,000 lbs has the same braking capacity as a five axle truck weighing 80,000 lbs.

The beef industry is very diverse and relies on the safe, timely transportation of livestock from all corners of the country to keep up with global demand for a high quality product. For cattle producers, the safety of our animals is our top priority. The last thing we want to do is jeopardize the safety of their animals by cutting corners in shipping. We should learn from the transportation advancements of others like Canada, Australia, and the European Union. Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related accident rates have declined by 35 percent. More freight has been shipped, but the vehicle miles traveled to deliver a ton of freight has declined.

As a result of the 2012 Highway Bill, USDOT was authorized to conduct a study on the current status of our roads and bridges and to consider their safety with possible increase in truck weights. NCBA and affiliates submitted comments discussing the impact on our industries of both existing truck weights and increased truck weights. We expect USDOT to issue a final report later in 2014 after the findings are reviewed objectively.

V O L U M E 3 , I S S U E 5 0

On Wednesday, Jan. 22, cattle and hog contracts continued to build on Tuesday’s gains. Trade in the fed cattle cash market was mostly $4 to $5/cwt. higher and provided late-day strength to the live cattle futures market. February live cattle closed $2.125/cwt. higher after trading as much as $3 stronger during the session. January feeder cattle futures added $0.675/cwt. The CME reported seven-day average Feeder Index at $170.41/cwt., down $0.08. Wholesale boxed beef values ended the day around $0.30/cwt. higher as values for end meats and grind corrected from yesterday’s highs. Grain markets closed relatively mixed. Spot corn added around $0.01/bu. Most soybean futures contracts closed $0.02/bu. higher. Chicago wheat futures prices dropped more than $0.01/bu., while Kansas City contract prices ended around $0.03/bu. higher.

For recent market news and analysis, visit

www.CattleFax.com.

Update

The National Cattlemen's Beef Association (NCBA) has represented America's cattle producers since 1898, preserving the heritage and strength of the industry through education and public policy. As the largest association of cattle producers, NCBA works to create new markets and increase demand for beef. Efforts are made possible through membership contributions. To join, contact NCBA at

1-866-BEEF-USA or membership@beef.org.

Don't Miss Out on NCBA's

Cattlemen to Cattlemen!

On next week's edition of NCBA's Cattlemen to Cattlemen, we'll have a special preview of the 2014 Cattle Industry Convention and NCBA Trade Show in Nashville. Plus a visit to the Grand Ole Opry and an inside look at the amazing Opryland Hotel. NCBA's Cattlemen to Cattlemen debuts each Tuesday at 8:30 p.m. The show also airs Wednesday at 10:30 a.m. and on Saturday at 9 a.m. (all times are Eastern). Don't forget that you can also watch NCBA's Cattlemen to Cattlemen online anytime by visiting our website. Follow us on Twitter and become a fan on Facebook.

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Your NCBA

Environmental Stewardship Award Program — This program recognizes environmental stewardship practices and conservation achievements of U.S. cattle producers. Applications for the 2014 ESAP award are due Mar. 7, 2014. For more information and a complete application packet, click here. Register NOW for the 2014 Cattle Industry Convention — Registration and housing is now open for the convention in Nashville, Tenn., Feb. 4-7, 2014! If you’re in the cattle business then you need to be there. Click here to register today! NCBA welcomes Emily Buck, Spring 2014 Public Policy Intern — Keep up-to-date with Emily as she writes about her adventures in D.C. on our Beltway Beef blog.