Agricultural interests have been trying for nearly five years to get Washington to act on three free trade agreements and finally in just over a week they have been sent to Congress and passed by significant majorities.
The trade agreements with South Korea, Panama and Columbia were each voted on separately and passed in rapid succession Wednesday, first by the House and then by the Senate. The votes in the House were 278-151 for South Korea, 300-129 for Panama and 262-167 for Colombia. In the Senate, it was 83-15 for South Korea, 77-22 for Panama and 66-33 for Colombia. The president is expected to sign them.
Farm groups were quick to praise the long-awaited action that is expected to mean increased exports for a variety of agricultural commodities.
“The three free trade agreements with Korea, Colombia and Panama provide great opportunities for America’s farmers,” said National Corn Growers Association President Garry Niemeyer of Illinois, adding that U.S. farmers have been standing by watching other nations receive increased access to these markets as the FTAs waited in limbo.
National Cattlemen’s Beef Association (NCBA) President Bill Donald of Montana was pleased to see Congress put differences aside to pass the trade deals. “For too long, the trade agreements have been collecting dust,” he said, noting that cattlemen have a lot to gain when the agreements are fully implemented by reducing and eliminating import tariffs on U.S. beef imposed by Colombia (80 percent), Panama (30 percent) and South Korea (40 percent).
Pork producers also have much to gain under the agreements, according to National Pork Producers Council president Doug Wolf of Wisconsin who called passage of the FTAs “one of the greatest victories ever for the U.S. pork industry” since it is expected to add more than $11 to the price producers receive for each hog marketed.
Agriculture Secretary Tom Vilsack says passage of the agreements means over $2.3 billion in additional exports for American agriculture as a whole. “Immediately upon implementation of these agreements, the majority of American products exported to Korea, Colombia and Panama will become duty-free,” said Vilsack. “With record agricultural exports supporting more than a million jobs here at home, passage of these deals will contribute to a positive U.S. trade balance, create jobs, and provide new income opportunities for our nation’s agricultural producers, small businesses, and rural communities.”
The only question is, what took so long?
The U.S. House of Representatives today voted 217-203 to pass the agricultural appropriations bill for fiscal 2012, cutting $2.7 billion in discretionary spending, including funds for USDA’s proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) regulation.
The National Cattlemens Beef Association (NCBA) and the National Pork Producers Council (NPPC), both opposed to the proposed rule, are pleased that the appropriations bill could put it on hold. “The National Pork Producers Council is grateful that the House is requiring USDA to take a time out on the GIPSA rule, which as proposed is bad for farmers and ranchers, bad for consumers and bad for rural America,” said NPPC president Doug Wolf of Wisconsin, who adds that the rule would cost the pork supply chain about $333 million a year.
NCBA past president Steve Foglesong of Illinois says their beef cattle producer members are thrilled with the vote in the House. “When we had our annual meeting back in February, the priority coming out was this GIPSA rule,” Steve said. “It was one thing our members said absolutely cannot happen.”
Other organizations pleased with the action include the National Turkey Federation, National Chicken Council and American Meat Institute. The appropriations measure still must go through the Senate and is likely to change substantially.
Listen to comments from Doug and Steve here: NPPC and NCBA on GIPSA Funding
It’s been almost exactly a year since USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) published a controversial proposed rule that would fundamentally change the way livestock is marketed in this country, and those opposed to it remain hopeful that the proposal itself will be fundamentally changed – or just eliminated.
Colin Woodall with the National Cattlemen’s Beef Association (NCBA) says they are encouraged that the U.S. House of Representatives could vote soon on the 2012 agriculture appropriations bill, which includes language to defund the proposed GIPSA rule. “So we are really working hard to make sure we preserve that language,” Colin says in the latest Beltway Beef Commentary. He encourages cattle producers and others in the industry to contact their Congressional representatives and send a signal to the secretary that we’re “serious about this rule being a huge burden on cattle producers.”
USDA’s official position on the appropriations language is that “The final rule has not yet been published and any concerns about the rule are better addressed through the standard rulemaking process than through an appropriations rider.”
Earlier this month, American Farm Bureau Appropriations Specialist R.J. Karney said they also believe funding for the rule should stay in place. “We want USDA to be able to review the 60,000 comments that were provided and also continue the economic analysis regarding this procedural rule,” he said. Colin explained that NCBA has a long-standing relationship with AFBF, “so this is not an issue that NCBA is now breaking a relationship with Farm Bureau, this is specific to trying to make sure that everybody understands exactly what this GIPSA rule does…take away marketing opportunities for cattle producers.”
Pork producers also remain concerned about the proposed rule. “The rule is so vague, we don’t know where it stands,” said National Pork Producers Council past president Sam Carney of Iowa at World Pork Expo last week. He says they are anxious to see what the USDA economic analysis will say, but that is not expected to be out until the fall.
Listen to or download Sam’s comments here: Iowa pork producer Sam Carney
After torrential downpours over night, it’s pretty quiet here on the last day of World Pork Expo.
We had some serious rain during the day yesterday, but it all cleared up just in time for the bands to start playing and the roasted hogs to come out. National Pork Producers Association CEO Neil Dierks says the expo was excellent this year, especially day one. “We haven’t heard the numbers yet, but we won’t be surprised if it’s not the best first day we’ve had for many, many years – even though it was 94 degrees and about 97 percent humidity,” he said.
Neil says producers are “reasonably pleased” with the current state of the industry, but concerned about issues facing them such as feed availability, getting trade agreements approved and government regulation, especially the proposed GIPSA rule.
Listen to or download my interview with Neil here: NPPC CEO Neil Dierks
The Korean ambassador to the United States says “time is running out” for Congress to approve pending free trade agreements and “the stakes are high.”
Ambassador Han Duk-soo was the keynote speaker at the National Pork Producers Council Strategic Investment Program luncheon at World Pork Expo on Thursday. He encouraged pork producers to “not let up” in urging Congress to ratify the FTA with South Korea, which is pending along with those for Colombia and Panama. “The disagreements in Washington that have delayed the FTA’s ratification are ironic, in that it enjoys almost unanimous support,” he noted. “America’s pork producers have been among the most vocal and active proponents of these agreements.”
Like those here in the U.S. who want to see the agreements passed, the ambassador is concerned that if they are not approved by end of summer, the presidential campaign will effectively delay them even longer.
Listen to or download the ambassador’s comments here: Korean Ambassador Han Duk-soo
2011 World Pork Expo Photo Album
National Pork Producers Council leaders conducted the traditional first day World Pork Expo press conference this morning to discuss issues of importance to the industry.
Among the bigger issues is expanding international markets for U.S. pork by getting Congress to pass the three pending free trade agreements with Korea, Colombia and Panama. “We need new and expanded markets,” said NPPC immediate past president Sam Carney of Iowa. “These FTAs combined would add more than $11 to the price producers receive for their pigs and would generate about 10,000 U.S. jobs.”
Carney says they hope to get the FTAs passed before summer recess or right after. “We’re frustrated but yet we’re hopeful we’re gonna get it done,” he said.
Press conference audio from Carney: NPPC past president Sam Carney
2011 World Pork Expo Photo Album
It’s been 11 months since it was first published and six months since the comment period ended, but it will be several more months yet before USDA makes a decision on the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule.
“There were 66,000 comments, about 30,000 of which are unique,” Agriculture Secretary Tom Vilsack told an agriculture committee meeting last week. “Our hope is that we get this done sometime in the fall.”
Last week, 147 members of Congress sent Vilsack a letter about the proposed rule urging him “to proceed in a manner that allows further public comment on revisions to the proposal and the pending economic analysis” before a final rule is published, adding that a timeline for completion of the economic analysis and any further action is also needed.
National Cattlemen’s Beef Association President Bill Donald of Montana says the members of Congress are standing up for U.S. cattlemen and women. “The proposed GIPSA rule puts big government smack dab in the middle of our business. It is the most pervasive invasion of federal government into the private marketplace I have ever witnessed,” he said.
National Pork Producers Council President Doug Wolf says the regulation as written “would be bad for producers, bad for consumers and bad for rural America” and would cost the U.S. pork industry nearly $400 million a year.
American Meat Institute president and CEO J. Patrick Boyle noted that an “almost unprecedented” third of House members signed the letter. “The sheer number of signatories on this letter is a testament to the growing concern on Capitol Hill about the proposed GIPSA rule. Congress is asking a fundamental and essential question: when will USDA tell us the price tag on this rule?”
It’s taken over four years to get to this point, but some action is finally happening on the Colombia Trade Promotion Agreement (TPA) and U.S. agriculture interests are thrilled.
President Obama announced today that an agreement has been reached on the deal that was signed by the U.S. Trade Representative and the Colombian trade minister on Nov. 22, 2006. The agreement will now be sent to Congress to ratify. It is estimated that the Colombia agreement could mean U.S. agricultural export gains of more than $815 million per year at full implementation.
According to a USDA Fact Sheet, a variety of agricultural commodities would benefit from the Agreement, as more than half of current U.S. farm exports to Colombia will become duty-free immediately, and virtually all remaining tariffs will be eliminated within 15 years. “Colombia will immediately eliminate duties on wheat, barley, soybeans, soybean meal and flour, high-quality beef, bacon, almost all fruit and vegetable products, wheat, peanuts, whey, cotton, and the vast majority of processed products. The Agreement also provides duty free tariff rate quotas (TRQ) on standard beef, chicken leg quarters, dairy products, corn, sorghum, animal feeds, rice, and soybean oil.”
National Cattlemen’s Beef Association (NCBA) President Bill Donald said it’s essential for the U.S. to take aggressive measures to expand market access for agriculture to stimulate the economy and feed a growing global population. “The cattle industry can breathe a sigh of relief today as the Colombia agreement finally gets the long overdue attention it deserves,” said Donald. “This agreement has collected dust for well over four years while our trade competitors proactively sign, seal and deliver trade pacts.”
American Farm Bureau Federation President Bob Stallman says the development is just what a group of Farm Bureau leaders has been pushing for the last two weeks during a visit to Colombia and Panama. “After meetings this week and last with farmers, ranchers and agricultural leaders from Colombia, we know this is a development welcomed by all sides. Trade will help the United States build stronger bonds with our Latin American neighbors, and it makes sense given our advantage of proximity and history of cooperation.”
The National Corn Growers Association says the Colombia FTA would provide immediate access for U.S. corn growers to Colombia’s roughly 2.1 million metric ton market for corn at zero percent duty. “Colombia has traditionally been one of the Top 10 export markets for U.S. corn,” NCGA President Bart Schott said. “This is an important market for U.S. farmers and we do not want to watch this market slip away to our largest competitors.”
National Pork Producers Council President Doug Wolf says the agreement will increase U.S. pork exports to the South American country by $68.9 million and help create 919 U.S. pork industry jobs. “We must implement our pending FTAs to remain competitive,” Wolf said. “Pork producers also support the Korea and Panama FTAs and urge the administration to send them to Congress to be approved by this summer.”
This morning at the NAFB convention a press conference was held the National Cattlemen’s Beef Association (NCBA), the National Pork Producers Council (NPPC), the National Turkey Federation (NTF) and the National Meat Association (NMA) to release the results of an economic analysis of USDA’s proposed livestock and poultry marketing regulation – the so-called GIPSA rule. I’ve posted the audio of the remarks from the presenters below. There is a lot of information in the report. Some key points include their finding that if the rule is imposed as proposed we would see an annual drop in gross domestic product of as much as $1.56 billion, a loos of more than 22,000 jobs and an annual loss of $359 million in tax revenues.
Panelists included Steve Meyer, president of Paragon Economics, who moderated the event; Rob Murphy, senior vice president of Informa Economics; Jim Maxey, a long-time NMA member and past chairman of the board; Bill Donald, Montana rancher and NCBA president-elect; Doug Wolf, Wisconsin pork producer and NPPC president-elect; and John Burkel, Minnesota turkey producer.
You can find the Informa report online.
Here’s where you can listen to or download the press conference audio: Informa GIPSA Rule Press Conference
NAFB Convention Photo Album
With just two weeks before the comment period deadline remaining, the National Pork Producers Council is calling on consumers to join with meat producers in opposing the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule and they have come up with seven reasons why they should:
No. 1 It’s a solution in search of a problem.
The rule is based on the assumption that today’s livestock markets don’t function properly. In fact, current markets operate well for producers, packers and consumers alike. USDA’s own, peer-reviewed research confirms this. Neither a 1996 study on concentration in meat packing nor a 2007 meat marketing study found evidence of undue buyer or seller power in livestock markets. Meanwhile, food expenditures as a percentage of disposable income in this country are the lowest in the developed world – and have been declining steadily for decades.
No. 2 It’s a federal regulation on steroids – an unneeded bureaucratic overreach that does an end-run around Congress and caters to those who can’t compete.
GIPSA says the rule simply fulfills a mandate under the 2008 Farm Bill. In fact, it goes way beyond the specific requirements in the Farm Bill. Ironically, it adopts through regulation what a small band of disgruntled producers couldn’t achieve through legislation. Several of the provisions were either specifically rejected by Congress or are counter to federal court rulings. Why should we remake the system to suit a tiny fraction of producers who can’t compete in today’s markets?
No. 3 It will raise consumer meat prices.
Massive new regulatory requirements will translate into higher costs, which ultimately will be paid for by consumers in the form of higher retail meat prices.
(more…)
Since the livestock industry is so important to our country as well as just about every other sector of agriculture you can’t get enough on a subject that has major implications for its future. That would be the proposed rule by the Grain Inspection, Packers and Stockyards Administration (GIPSA). You can follow back through our posts on this topic using the GIPSA Category which is in the left side drop down menu.
I still have some audio to share with you from the recent USDA/DOJ public workshop in Ft. Collins, CO. In this post you can listen to and download audio from the two panels (beef and pork) conducted the evening before by the National Cattlemen’s Beef Association and the National Pork Producers Council. I streamed it live at the time but also recorded it for you.
The pork panel included:
Sam Carney, President NPPC, Iowa pork producer
Mark Legan, Indiana pork farmer
Brent Sandidge, Manager of Ham Hill Farms, Missouri
Steve Meyer, President, Paragon Economics
You can listen to pork panel here: GIPSA Pork Panel
The beef panel included:
James Herring, President/CEO, Friona Industries, Texas
Bill Rishel, Rishel Angus and currently President, Nebraska Cattlemen’s Association
Jerry Bohn, General Manager, Pratt Feeders, Kansas
Allie Devine, Vice President/General Counsel, Kansas Livestock Association
Dr. Stephen Koontz, Associate Professor, Colorado State University
You can listen to beef panel here: GIPSA Beef Panel
In this week's program you can listen in to my conversation with Bill Howard, Fastline, about their new mobile game app, AgRacer.
