News Update
April 15, 2011

CAB Seeks Clarity in GIPSA Rules

Certified Angus Beef LLC (CAB) President John Stika sent a letter to Agriculture Secretary Tom Vilsack in late March to explain the branded beef company’s stand against current wording in rule changes proposed by the Grain Inspection Packers & Stockyards Administration (GIPSA).

The USDA agency last summer unveiled its proposed rule changes that govern livestock marketing. A divide soon appeared within the beef industry over lengthening the comment period, and whether the proposed changes themselves needed changes. “Fairness” debates began from coffee shops to editorials and letters to USDA expressing either support or concern over vague language.

At a USDA/Justice Department workshop on competition in Fort Collins, Colo., last August 27, in an open letter to Angus producers and in subsequent comments to GIPSA, Stika expressed concern over unintended consequences and called for further study because there had been very little.

By the end of the extended November deadline and after two private economic analyses quantifying costs and concerns, more than 60,000 comments had come in to GIPSA. Vilsack then announced USDA would conduct its own economic impact study.

“The issue seemed to fade a little, but, in fact, it has not gone away,” Stika said. “We owe it to Angus producers and all of our licensed partners across the beef industry to maintain an active role in helping USDA craft the best possible clarifications to the proposed GIPSA rules.”

The letter stated, “Pleasing the consumer is the single most effective and sustainable solution to maintaining an economically viable beef industry … Unless heavily edited, we believe the proposed rule will cause cattlemen and brand partners great economic hardships as their investment in premium genetics meet a constricted market.”

While not opposing the effort to better define terms, the letter noted, “it appears the kind of clarity being proposed negates the intent and opens the doors to a long series of lawsuits … litigation will lead to a reduction in the availability of value-based marketing arrangements.” Value separation would be minimized but “easier to defend,” the letter said.

CAB Board Chairman Steve Olson said. “This brand has worked for years to get ranchers premiums on their high-quality cattle through value-based marketing. Because the proposed rules may threaten these premiums, we must voice our opinion.”

The American Angus Association supports these efforts, noted Association Board Chairman Joe Hampton. “By working with Secretary Vilsack, we hope Certified Angus Beef can help ensure that any changes to the existing GIPSA regulations allow for the continued expansion of quality-focused, value-based marketing options,” he said.

That’s what allows financial rewards for those who meet the growing consumer demand for products such as those bearing the Certified Angus Beef® (CAB®) brand, said Association board member Leo McDonnell.

GIPSA has made it clear that its rules are not intended to “limit or eliminate the ability of companies to provide premiums to reward producers for providing certain quantity or quality of livestock,” McDonnell said. “We will continue to stay engaged to ensure GIPSA stays true to these proposed intentions and to be clear that nothing in these rules will jeopardize a premium-based market.”

“Angus producers have much at stake because we have worked hard to add value to our cattle,” Hampton said. “We’re happy to provide input to help ensure the GIPSA rules will result in a vibrant, healthy market that rewards quality and enhances opportunity and choices.”

Stika concluded, “We have a long history with USDA and much common ground in seeking a better future for producers who aim to satisfy consumer demand. We look forward to reviewing the pending USDA economic impact study, and every opportunity to discuss solutions to our concerns.”

— Release by Certified Angus Beef LLC (CAB).

Congress Rejects Administration’s Plan to Lock-up Public Lands

The Public Lands Council (PLC), the National Cattlemen’s Beef Association (NCBA) and the American Sheep Industry Association (ASI) commend Congress for blocking federal funds from being used to implement, administer or enforce the Department of the Interior’s Wild Lands Order, Secretarial Order 3310 (the Order). The funding prohibition was included in the continuing resolution to fund the federal government through Sept. 30, 2011, which was passed by both the House and the Senate April 14.

The Order instructed the Bureau of Land Management (BLM) to shift from management for multiple-use activities to management for wilderness characteristics. Bill Donald, NCBA president and Montana rancher, said, according to the Wilderness Act of 1964, Congress, not the administration, has authority to designate wilderness. He said the order would have allowed the BLM to establish de facto wilderness areas without obtaining congressional approval.

“The administration ignored the statute in proposing the Order. BLM Director Bob Abbey even admitted that the administration does not have statutory authority to elevate wild lands above other uses,” Donald said. “Fortunately for public lands ranchers and the communities across the western United States that rely on a thriving ranching industry, Congress put its foot down and stopped the administration from moving forward with the Order.”

John Falen, PLC president and Nevada rancher, said while the administration claims it is trying to protect BLM lands, the Order actually would have had negative effects on the land and its resources.

“When access to federal lands is limited, ranchers, the on-the-ground stewards, may be forced out of business, resulting in the fragmentation of open spaces,” Falen said. “The benefits of well-managed grazing to sustainable rangeland health and wildlife habitat are well documented. The Order would have jeopardized ranchers’ ability to care for and manage these lands.”

PLC, NCBA and ASI collectively represent ranchers and an industry that accounts for approximately 18,000 grazing permits on 157 million acres of BLM land.

— Adapted from release by the Public Lands Council and NCBA.

USDA Rural Development Invites Applications for Renewable Energy and Energy Efficiency Projects

Ag Secretary Tom Vilsack invited agricultural producers and rural small businesses April 14 to apply for loans and grants to implement renewable energy systems and make energy efficiency improvements.

“Biofuels and other renewable energy sources present an enormous economic opportunity for rural America and the rest of the nation,” Vilsack said. “President Obama and I recognize that we need to win the future by implementing a long-term strategy to meet our country’s current and long-term energy needs. The funding I am announcing today will help make America’s farmers, ranchers and rural businesses more energy efficient.”

USDA is providing funding for up to $61 million in guaranteed loans and $42 million in grants through the Rural Energy for America Program (REAP). Funds are available to help agricultural producers and rural small businesses develop renewable energy systems, make energy efficiency improvements and conduct studies to determine the feasibility of renewable energy systems.

USDA issued a rule April 14 to clarify that the definition of renewable energy systems in REAP includes flexible fuel pumps, sometimes referred to as “blender pumps.” This clarification is intended to provide fuel station owners with incentives to install flexible fuel pumps that will offer Americans more renewable energy options. The Obama administration has set a goal of installing 10,000 flexible fuel pumps nationwide within five years.

The rule also makes the following clarifications:

• Grants are available for audits of energy improvements and studies to determine the feasibility of renewable energy systems; and
• Agricultural producers in non-rural areas are eligible for REAP assistance. Small businesses must still be located in rural areas. This clarification makes REAP eligibility requirements consistent with those of other USDA energy programs.

Since Rural Development’s renewable energy and energy efficiency programs were launched in 2003, they have played a key role in helping more than 6,000 local businesses create jobs and make energy efficiency improvements. Under REAP, local businesses receive assistance to deploy wind, solar and other forms of renewable energy.

For example, Pagel Ponderosa and partner business Dairy Dreams in Kewaunee County, Wis., used REAP funds to help purchase anaerobic digesters. Both businesses use the energy generated from their digesters to run their operations and sell excess power back to the grid. The two digesters have become so successful that, along with two wind farms operating in the county, they are generating enough electricity to support all of the county’s 8,900 households.

The deadlines for submitting completed REAP applications are June 15 and June 30, depending on the type of project to be funded. For information on how to apply for assistance, contact your local USDA Rural Development office or see page 20943 of the April 14 Federal Register at http://edocket.access.gpo.gov/2011/pdf/2011-8456.pdf. A list of USDA offices is available at www.rurdev.usda.gov/StateOfficeAddresses.html.

— Release by USDA.

USDA Announces Award for Food Safety Research in Child Nutrition Programs to Kansas State University

Ag Secretary Tom Vilsack announced April 14 that Kansas State University (K-State) was selected to establish the Center of Excellence for Food Safety Research in Child Nutrition Programs. The Center will provide science-based support to improve the safety of foods provided through the USDA Food and Nutrition Service (FNS) nutrition assistance programs, particularly those served in schools and child care settings.

“Nothing is more important than the health and well-being of our nation’s children, and we must do everything we can to ensure that kids are being served safe, high quality meals,” said Vilsack. “The Center of Excellence will provide research on important topics such as produce safety and evaluation of school food safety programs.”

The Center of Excellence will provide a new and holistic research approach to determine how new initiatives, such as farm-to-school purchasing and school gardens, and emerging science affect food safety in FNS school and childcare programs. A multidisciplinary approach, including both basic and applied research, will draw expertise from fields such as foodservice management, food safety, food microbiology, agricultural production, education, and the social sciences. The center will be funded with a two-year, $1.6 million grant and will open as soon as the grant is awarded.

“We are excited about this new opportunity to support research focused on the unique food safety aspects of our programs,” said Kevin Concannon, USDA Undersecretary for Food, Nutrition and Consumer Services. “Research conducted by the Center will provide important information that we can use to improve programs and to develop education and training opportunities for school nutrition and child care employees. Kansas State University has a long history of research and education related to foodservice management, and will provide excellent leadership for school and child care food safety research.”

Many of the individuals served in FNS nutrition assistance programs are children, who are vulnerable to foodborne illness. To address this, USDA has put a number of initiatives in place to promote food safety for our children. In partnership with the Agriculture Marketing Service, FNS also conducts Produce Safety University, a series of weeklong workshops focusing on safe handling of fresh produce by school nutrition directors.

The National School Lunch Program is provided in more than 101,000 public and nonprofit private schools and residential child care institutions, serving more than 31 million children each day. About 3.2 million children and 112,000 adults are served daily through the Child and Adult Care Food Program.

USDA’s FNS oversees the administration of 15 nutrition assistance programs, including the school meals programs, that touch the lives of one in four Americans during the course of a year. These programs work in concert to form a national safety net against hunger. Visit www.fns.usda.gov for information about FNS and nutrition assistance programs.

— Release by USDA.

NCBA’s Cattlemen to Cattlemen Live Show to Address Key Policy Issues

The first four months of the 112th Congress brought new faces and many changes to Washington, D.C., that affect cattle producers, according to NCBA President Bill Donald. Members of Congress, especially in the House of Representatives, are holding the administration accountable for its overreaching regulatory proposals. Will the USDA walk away from its GIPSA proposed livestock marketing rule? Will this Congress finally be the one to fully repeal the estate tax?

Expert panelists will answer these and other important questions during the NCBA’s Cattlemen to Cattlemen live call-in show April 19, to be broadcast on RFD-TV starting at 8:30 p.m. eastern daylight time (EDT). Cattlemen and women will be able to ask questions of the panelists by calling 1-888-824-6688 or by emailing C2C@beef.org.

Among the panelists will be Donald; Colin Woodall, NCBA vice president of government affairs; Kristina Butts, NCBA executive director of legislative affairs; and NCBA Deputy Environmental Counsel Ashley Lyon. Kevin Ochsner, NCBA’s Cattlemen to Cattlemen host, will moderate the one-hour program.  

“Cattle producers need to know what’s on the horizon in Washington, D.C., that might affect their operations,” said Donald. “This live program will give them a chance to get their questions answered, as well as air some of their own concerns that our NCBA Washington, D.C., staff can act on.”

In addition to the estate tax and the proposed GIPSA rule, the panel will also discuss environmental issues, the 2012 elections, international trade and more.

The program will be re-broadcast on RFD-TV Wed., April 20, 2011, at 10:30 a.m. EDT and Sat., April 23, 2011, at 9 a.m. EDT. In addition, all episodes of NCBA’s Cattlemen to Cattlemen are available on the program’s website at www.cattlementocattlemen.org. The program is also on Facebook and can be followed on Twitter.

— Release by NCBA.

Fish and Wildlife Service Announces Gray Wolves in the Western Great Lakes Have Recovered

The U.S. Fish and Wildlife Service (Service) announced April 15 a proposal to remove gray wolves in the Western Great Lakes area — which includes Minnesota, Michigan and Wisconsin — from the Federal List of Endangered and Threatened Wildlife because wolves have recovered in this area and no longer require the protection of the Endangered Species Act (ESA).

Wolves in the Western Great Lakes area have exceeded recovery goals and continue to thrive. Wolf numbers total more than 4,000 animals in the three core recovery states. Minnesota’s population is estimated at 2,922 wolves; there are an estimated 557 wolves in Michigan’s Upper Peninsula and another 690 in Wisconsin. Each state has developed a plan to manage wolves once federal protection is no longer needed.

“Wolves in the Western Great Lakes have achieved recovery,” said Fish and Wildlife Service Acting Director Rowan Gould. “We are taking this step because wolf populations have met recovery goals and no longer need the protection of the Endangered Species Act. We are asking the public to review this proposal and provide us with any additional information that can help inform our final decision.”

The proposal identifies the Western Great Lakes Distinct Population Segment (DPS) of wolves, which includes a core area of Minnesota, Michigan, and Wisconsin, as well as parts of adjacent states that are within the range of wolves dispersing from the core recovery area. After reviewing the latest available scientific and taxonomic information, the Service now recognizes the presence of two species of wolves in the Western Great Lakes: the gray wolf (Canis lupus), the wolf species currently listed under the ESA, and the eastern wolf (Canis lycaon), with a historical range that includes portions of eastern Canada and the northeastern United States. Recent wolf genetic studies indicate that what was formerly thought to be a subspecies of gray wolf (Canis lupus lycaon) is actually a distinct species (Canis lycaon). To establish the status of this newly recognized species, the Service is initiating a review of C. lycaon throughout its range in the United States and Canada.

The Service is seeking information from governmental agencies, Native American tribes, scientific community, industry and any other interested parties on threats, population size and trends, and other data that could affect the long-term survival of the Western Great Lakes DPS of the gray wolf. The Service is also seeking information on the status of the eastern wolf (C. lycaon) throughout its range in the United States and Canada.

Written comments may be submitted by one of the following methods:

• Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for submitting comments to Docket No. [FWS-R3-ES-2011-0029].
• U.S. mail or hand-delivery: Public Comments Processing, Attn:  Docket No. [FWS-R3-ES-2011-0029]; Division of Policy and Directives Management; U.S. Fish and Wildlife Service; 4401 N. Fairfax Drive, MS 2042-PDM; Arlington, VA 22203.

The proposed rule was delivered to the Federal Register today and is expected to publish within the next two weeks. Comments must be received within 60 days from publication in the Federal Register. The Service will post all comments on www.regulations.gov. This generally means the agency will post any personal information provided through the process. The Service is not able to accept email or faxes.

Following the close of the comment period, the Service will consider all new information and other data and make a final decision on the proposal to delist the Western Great Lakes DPS of wolves. In the meantime, gray wolves in the Western Great Lakes area will remain classified as endangered, except in Minnesota where they will remain threatened.

More information on the recovery of gray wolves in the Western Great Lakes can be found at www.fws.gov/midwest/wolf.

— Release by the U.S. FWS.

— Compiled by Shauna Rose Hermel and Linda Robbins, Angus Productions Inc.