News Update
Sept. 19, 2008

Kansas Angus Field Day is Sept. 27 in Victoria, Kan.

The Kansas Angus Association will host a Kansas Angus Field Day Sept. 27, from 10 a.m. to 4:30 p.m., in Victoria, Kan. In cooperation with the American Angus Association, the event will feature the unveiling of the restored and improved Grant Monument and commemorate 135 years of Angus in the U.S. and the 125th anniversary of the American Angus Association. Area Angus breeders will display cattle. Scheduled speakers are: Paul Hill, American Angus Association president; Gary Fike, Certified Angus Beef LLC (CAB); and Bryce Schumann, American Angus Association chief executive officer (CEO). A luncheon sponsored by CAB is scheduled as well as a tour of the George Grant Villa and organized activities for children during the speaker presentations.

House Passes Oversight Bill

Today, the U.S. House of Representatives voted to approve a bipartisan bill to increase the transparency, oversight, and anti-manipulation authority over commodity futures and options markets, according to the House Committee on Agriculture. The House overwhelmingly passed H.R. 6604, the Commodity Markets Transparency and Accountability Act of 2008 by a vote of 283-133.

H.R. 6604 strengthens trader position limits on oil and other futures markets as a way to prevent potential price distortions caused by excessive speculative trading, the Committee reports. It directs the CFTC to get a clearer picture of the over-the-counter (OTC) markets, and it calls for new full-time CFTC staff to improve enforcement, prevent manipulation, and prosecute fraud.

Provisions included in the Commodity Markets Transparency and Accountability Act would:

• Require foreign boards of trade to share trading data and adopt speculative position limits on contracts that trade U.S. commodities similar to U.S.-regulated exchanges.
• Require the CFTC to set trading limits for all agricultural and energy commodities, in order to prevent excessive speculation.
• Limit eligibility for hedge exemptions to bona-fide hedgers.
• Codify CFTC recommendations to improve transparency in dark markets by disaggregating index fund and other data in energy and agricultural markets as well as requiring detailed reporting from index traders and swap dealers.
• Call for a minimum of 100 full-time CFTC employees to enforce manipulation and prevent fraud.
• Authorize CFTC to take action if it finds disruption in over-the-counter markets for energy and gas.
• Require the CFTC to study the effectiveness of establishing position limits in over-the-counter markets.

Congressional oversight of commodity futures trading is under the jurisdiction of the House Agriculture Committee. The Committee approved H.R. 6604 by voice vote on July 24, 2008. It was brought to the House floor on July 30 under suspension of House rules, but it did not receive the two-thirds majority needed to pass.

Previous Committee action on H.R. 6604 and a summary of the bill’s provisions can be found on the House Agriculture Committee website at http://agriculture.house.gov/inside/legislation.html.

In response to House action, National Farmers Union (NFU) President Tom Buis said, “This legislation also addresses the concerns producers have about speculation in the energy futures markets, a particular concern for agriculture producers whose input costs are directly related to U.S. and world energy prices.”

Groups Ask for Halt for NAIS Funding, Separation From Safety Reforms

Fifty-five groups from across the country sent a letter yesterday to key Congressional committees asking them to halt funding for the National Animal Identification System (NAIS) and to keep it separate from food safety reforms, the Farm and Ranch Freedom Alliance reports.

The group argued that implementation of NAIS to ensure food safety would be ineffective, noting most food safety problems stem from the packing plant environment.

USDA Sets Aside Animal ID Numbers for Livestock Born in U.S.

On Sept. 18, 2008, the USDA announced that the prefix “840” for animal identification numbers will be reserved exclusively for animals born in the United States.  

The 840 designation will help producers participating in the NAIS more easily identify their animals as being of U.S. origin. Additionally, the exclusive use of 840 for U.S.-born animals will help shorten the response time in determining the origin of an infected animal in the event of a disease outbreak.  

California's Bovine Tuberculosis Status Change

The USDA Animal and Plant Health Inspection Service (APHIS) issued an interim rule, effective Sept. 18, 2008, to change California’s classification to modified accredited advanced for bovine tuberculosis (TB). Previously, California had been listed as accredited free, but because of the discovery of two affected cattle herds since November 2007, the state no longer meets the requirements for that status. As a result of this change, cattle or bison moved from California now must meet specific testing requirements to leave the state.

— compiled by Tosha Powell, assistant editor, Angus Productions Inc.