USDA Rejects Poultry Line Speed Request

The Department of Agriculture has denied a request by the National Chicken Council to allow for faster processing line speeds in packing plants. The decision follows a petition from NCC asking for young chicken plants to be exempt from the 140-birds-per-minute maximum line speed under the New Poultry Inspection System. USDA says the petition asked for no line speed limit, while industry data suggests speeds can be safely maintained up to 175 birds per minute, according to meat industry publication Meatingplace. However, rather than casting a net for a broad waiver, Agriculture Secretary Sonny Perdue told the International Production and Processing Expo that USDA would consider individual request, by company or plant, if that request is backed up by safety data. Perdue said: “We want you to be as efficient and effective as you safely can be in operating your businesses,” adding: “Some of you can do that, some of you cannot.” USDA says the agency received about 100,000 comments on the issue. The opposition says workers in processing plants are already working at a “breakneck speed.”

AVMA Urges Congressional Action on Veterinary Shortages

The American Veterinary Medical Association says veterinary shortages are threatening animal health, public health and the livelihoods of farmers and ranchers. The association Wednesday urged Congress to help address the issue by passing legislation called the Veterinary Medicine Loan Repayment Program Enhancement Act. Data from the Department of Agriculture shows that 187 regions in the United States currently suffer from shortages of livestock and public health veterinarians. Increasing veterinary student debt, which reached $143,700 on average for 2016 graduates of veterinary colleges, is partly to blame for the shortages, according to the association. The Veterinary Medicine Loan Repayment Program helps by offering loan forgiveness to veterinarians who commit to serving at least three years in underserved areas. However, AVMA says the program does not receive enough funding to meet demand, in part because each award is subject to an expensive income  tax withholding. The legislation supported by AVMA would eliminate the tax funding to support more communities in need of veterinarians, all within the current funding level provided by Congress. Colorado legislators this week rejected a bill proposing the “Product of the USA” label be reserved in the state’s grocery stores only for beef derived exclusively from animals born, raised and slaughtered in the United States. The Colorado General Assembly’s House Committee on Agriculture, Livestock and Natural Resources heard testimony from cattle ranchers and consumers stating that multinational meatpackers and retailers were deceptively applying “Product of the USA” labels on foreign beef sold in Colorado grocery stores, according to a news release by R-CALF. The committee voted 10 to 3 to prevent the measure from being debated on the Assembly’s floor by the state’s 65-member House of Representatives. This, R-CALF noted, occurred despite that testimony being uncontested and without public committee debate. The bill, HB18-1043, was introduced by Colorado Rep. Kimmi Lewis (R). Lewis was quoted as saying, “All I’m asking is that you take this bill to the floor” because Colorado consumers have the right to know where their beef is produced. “Consumers are looking at “Product of USA' and it’s a scam.” Committee members who joined with Lewis to bring HB18-1043 to the floor for debate were Representatives Perry Buck (R) and Lori Saine (R). Committee members who voted to defeat the measure included Committee Chair Jeni James Arndt (D) and Representatives Jessie Danielson (D), Chris Hanson (D), Dominique Jackson (D), Donald Valdez (D), Daneya Esgar (D), Dylan Roberts (D), Hugh McKean (R), Jon Becker (R) and Marc Catlin (R). 

NCBA Unveils 2018 Policy Priorities

PHOENIX (Feb. 1, 2018) — The National Cattlemen’s Beef Association today unveiled its 2018 Policy Priorities, which will guide the group’s lobbying efforts in Washington over the coming year. The document was released at the annual Cattle Industry Convention in Phoenix.

This year’s Priorities focus on five main categories: the 2018 Farm Bill, Trade and Market Access, Regulatory Reform, Antimicrobial Use, and Fake Meat.

Some of this year’s priorities are familiar to longtime industry watchers. Like last year, NCBA will work to ensure that the pending Farm Bill includes full funding for a foot-and-mouth disease vaccine bank, protects conservation programs like the Environmental Quality Incentives Program (EQIP) and prevents market-disrupting policies like mandatory Country of Origin Labeling (COOL). 

Likewise, the group’s regulatory-reform efforts will again focus on finding a permanent solution to an electronic logging devices mandate, modernizing the Endangered Species Act, and replacing the 2015 Waters of the United States (WOTUS) rule.

New to the Priorities list this year is an emphasis on antimicrobial use - specifically the aim to secure clean Animal Drug User Fee Act (ADUFA) reauthorization and continuing the Key Technologies Task Force action steps on antimicrobials. Another new emphasis in 2018 will be a focus on protecting the industry and consumers from fake meat and misleading labels on products that do not contain real beef.

“With tax reform, regulatory rollbacks, and new access to the Chinese market, we had some big victories in Washington last year, but this is no time to take a break, and 2018 promises a mix of new and familiar challenges,” said incoming NCBA President Kevin Kester, a fifth-generation California rancher. “We’re going to continue to ensure fair access to foreign markets, fight against unnecessary regulation, make sure the Farm Bill addresses our needs, and guarantee that consumers have the ability to purchase a safe, healthy, and accurately labeled protein source.”       PHOENIX (Feb. 1, 2018) - National Cattlemen’s Beef Association President Craig Uden today issued the following statement regarding the announcement that U.S. Sen. Jeff Flake is dropping his hold on the nomination of Gregg Doud to be the Chief Agricultural Negotiator in the Office of the U.S. Trade Representative:

"This is great news for America's cattlemen and women, and for all agricultural producers. We're glad that Senator Flake has finally heard our call for him to drop his hold and allow Gregg Doud to start working to improve market access around the world for our producers. With talks continuing on NAFTA, the Korea-US trade agreement, and access to many other markets still up in the air, it's imperative that the U.S. Senate now move as quickly as possible to confirm Doud's nomination."     CattleFax Predicts Large Supply and Strong Demand in 2018 PHOENIX, ARIZ. (February 1, 2018) – CattleFax celebrated its 50th anniversary during the popular CattleFax Outlook Session at the 2018 Cattle Industry Convention and NCBA Trade Show. CattleFax Senior Analyst Kevin Good highlighted the industry’s profitability during 2017 and said the trend looks to continue into 2018.

CattleFax analysts told the audience U.S beef cow inventory increased 2.8 million head in four years, and an additional 200,000-400,000 head are expected to be added to the herd over the next few years. Good said there are growing supplies of protein coming to market during the year ahead, including large supplies of competing proteins, which will weigh on all beef prices.  

“We have a bigger supply of all proteins ahead in 2018. For the past year we were very fortunate to have solid export volume,” said Good. “We are forecasting trade to increase year-over-year in 2018, but still, the rate of production is out-pacing the rate of exports.”

Although beef production is expected to increase to 27.5 billion pounds during 2018, Good said current consumer demand is expected to remain good and potentially increase as retail prices moderate. He said CattleFax is predicting beef to remain a strong competitor against other proteins.

“Demand is robust on all fronts. Domestically, retail demand is increasing and beef is being featured more in the consumer markets,” said Good. “The retail and foodservice industries are doing very well and the solid economy in the United States is one of the main drivers as unemployment rates continue to decline and per capita income rises.”

Good said even though beef demand is high, leverage will continue to be a challenge for the feedlot and packing segments as shackle space becomes increasingly constrained by rising slaughter rates. With the growth in production, Good said he anticipates lower, but still profitable price levels for the cow-calf segment, while feeders and backgrounders will see their margins narrow.

Groups appeal court ruling on Idaho wolf-killing lawsuit

BOISE, Idaho (AP) - Environmental groups are appealing a federal court ruling that a federal agency doesn't need to do a new environmental study before being allowed to kill more wolves in Idaho.

Western Watersheds Project and four other groups filed the appeal to the 9th U.S. Circuit Court of Appeals on Tuesday.
U.S. District Court Judge Edward Lodge on Jan. 4 ruled in favor of the U.S. Department of Agriculture's Wildlife Services of Idaho.
Lodge says the environmental groups lacked standing because it wouldn't matter if Wildlife Services stopped killing Idaho wolves because the Idaho Department of Fish and Game has demonstrated it can kill wolves.
Lodge didn't rule on the environmental groups' argument that Wildlife Services' 2011 study that allowed it to kill wolves in the state is flawed because it relies on outdated information.

Washington Insider: Outlook Continued Polarization in Congress

Well, the Washington Post has never been a Trump fan, so it is not surprising that its after-action report on the State of the Union address is focusing on some of the “realities” regarding President Trump’s pledge Tuesday night to “extend an open hand” to both parties in pursuit of an ambitious policy agenda. Now, the Post says, the effort has “rammed quickly” into the reality of a largely gridlocked Congress — and a deeply polarized Washington.”

In addition, the Post concludes that Trump’s call for a massive infrastructure bill to fund new bridges, roads and other projects nationwide likely will be “shelved, at least for now,” as lawmakers prepared to return to disputes over spending that have gripped the Capitol for weeks.

Democrats, most of whom sat stone-faced in the House chamber during the address, blasted the president for not calling out Russia for its interference in the 2016 presidential campaign and predicted that his scripted appeal for unity could not make up for a year’s worth of divisive behavior.

And some conservatives expressed alarm that Trump offered to put more than 1 million young undocumented immigrants on a path to citizenship. At the same time, Democrats vowed to oppose Trump’s push to curb some forms of legal immigration.

“I enjoyed the fact that the president was measured and scripted, but everything we’re talking about here stays the same,” said Rep. Charlie Dent, R-Pa., a centrist Republican who is retiring after this year.

Sen. Ted Cruz, R-Texas, a former Trump campaign rival who has become a fierce ally, emerged from the speech and immediately noted the partisan breach and the disconnect between Trump’s words and the dynamics on Capitol Hill, the Post said.

Sen. Jeff Merkley, D-Ore., said “The president talked about unity in his speech at the beginning, but by the end all he did was drive the wedges further in.”

The Post concluded that Party leaders remain preoccupied by the approaching Feb. 8 deadline for authorizing government spending. Democrats, other than those running for reelection in conservative states, are wary of Trump’s outreach. And many Republicans, frustrated that Trump’s unpopularity is clouding out the potential political benefits of a healthy economy, are starting to bunker down ahead of the midterm election season.

“The fights and the disagreements have nothing to do with who is at 1600 Pennsylvania Avenue,” said Rep. Mark Meadows, R-N.C., chairman of the conservative House Freedom Caucus. “There are fundamental gaps in the Senate and the House that are keeping us from consensus.”

Congressional Republicans will head Wednesday to the Greenbrier resort in West Virginia for a party retreat, where Trump is scheduled to visit, and spending and immigration issues are expected to be discussed.

Trump’s emphasis Tuesday on improving infrastructure, pledging to build “gleaming new roads, bridges, highways, railways and waterways all across our land,” drew some bipartisan praise, the Post said. Still, even his plans for infrastructure — with legislation that would “leverage” state, local and private money to generate $1.5 trillion — prompted questions and scrutiny.

“One-point-five trillion [dollars] matched by apparently $1.5 trillion at the state — where does that come from, how does that work? A lot of details that need to be worked out,” said Sen. Cory Gardner, R-Colo., the chairman of the Senate Republican campaign arm.

Most Republicans, as they mingled at the Capitol on Tuesday after Trump’s speech, talked up infrastructure as public-private partnerships driven by tax credits for corporations. Democrats, however, talked about infrastructure as federal spending that should be driven by Congress, not by companies.

“It’s totally different,” Sen. Richard Durbin, D-Ill., the No. 2 Democrat, said of the Democrats’ understanding of infrastructure. Referring to Trump’s comments on funding, Durbin added: “To me, it’s a throwaway line, it avoids coming up with serious funding.”

Sen. Claire McCaskill, D-Mo., who is running for reelection in a state Trump won, added, “There are a bunch of us that want to work on infrastructure, but it can’t be overly reliant on tolls from blue areas of the country and leave red areas of the country behind.”

Republicans in swing districts said they are looking for “incremental” action in the coming months, if anything. Many say they are focused on selling the Republican tax law that was passed last year.

Factoring into the toxic atmosphere are the retirements of Republicans who in the past have shepherded legislative deals. Rep. Rodney Frelinghuysen, R-N.J., chairman of the House Appropriations Committee, announced Monday that he will not seek reelection, making him the eighth House committee chairman to do so in recent months.

The Democratic Party’s aversion to the President, along with Republican infighting, leaves the president with few options for grand bargains.

So, we will see. If the Post is right about the outlook for the infrastructure initiative, it will raise another concern for producers, along with the administration’s lack of support for trade—both issues to watch closely as this year’s policy fights intensify, Washington Insider believes.

USDA Nixes Proposal for Line Speed Increase

USDA's Food Safety and Inspection Service (FSIS) has rejected a National Chicken Council (NCC) petition seeking to implement a waiver system for maximum line speeds in poultry processing plants. NCC was seeking a system to exempt "young chicken establishments from the regulation that prescribes 140 birds per minute as the maximum line speed under the New Poultry Inspection System (NPIS)," according to FSIS.

In a statement, NCC President Mike Brown said the group is disappointed about the denial, but "encouraged that there will be a viable path forward in the near future for those plants operating under NPIS to petition the agency for increased line speeds, if they maintain a record of process control.

Republican Senators Urge Trump to Keep, Modernize NAFTA

Noting that the North American Free Trade Agreement (NAFTA) supports 14 million jobs, including thousands in each of the 50 U.S. states, the trade pact needs to be updated, according to a letter from 36 Republican senators. "Despite all of its benefits, however, we can do better and there are opportunities to improve the agreement," the lawmakers said. "Modernizing NAFTA to increase market access, expand energy exports to maximize domestic energy production and including provisions on intellectual property and e-commerce will make this agreement even more beneficial to the United States."

Noting the recently approved tax reform plan is helping to move the U.S. economy higher, the senators said the "next step to advance the economy requires that we keep NAFTA in place, but modernize it to better reflect our 21st century economy." The letter cites a host of facts and figures on the trade pact's benefits, including that U.S. agricultural exports to Mexico and Canada have quadrupled to $38.1 billion in 2016 from $8.9 billion in 1993.