Guest Column: U.S. Senator Steve Daines

Senator Daines

One of the greatest privileges I have in the U.S. Senate is standing up every day on behalf of Montana’s farmers and ranchers. There are more than 25,000 farms and ranches across Montana which are the foundation of our economy, and make up our number one industry: agriculture.

But agriculture is more than just an economic driver of our state, it’s a way of life for thousands of Montana families and supports tens of thousands of jobs throughout our state. In Montana, we have about two-and-a-half times as many cattle as we do people – that’s over two and a half million cattle – which helps to provide a safe, reliable and affordable food supply not only for our nation but for the world.

Over the past several weeks and months, I’ve heard directly from farmers and ranchers about your strong concerns with a Vermont-style food labeling law that would have wide-ranging impacts on jobs in Montana, agriculture research, and the price we all pay to feed our families.

I’m outraged by defenders of this fringe law who have embraced a radical ideology and ignore the very real hardships that it will inflict on agricultural jobs and family incomes, and have been outspoken in the Senate on this issue. Make no mistake, the Vermont-style law is an attack on the heart of Montana’s way of life. It’s an attack on Montana farm and ranch operations, and I won’t stand for it.

That’s why I supported a bipartisan compromise in the U.S. Senate to head off this disastrous law and provide a nationwide standard that will protect Montana jobs, prevent baseless discrimination against Montana agriculture goods and avoid higher prices in the grocery line. The nationwide standard includes an important provision to exempt meat, poultry and egg products from labeling regulations if the animal may have consumed bioengineered feed.

Montana’s universities have top-tier agriculture research programs that have used technology and bioscience to help farmers across our state increase crop yield, minimize waste and help keep Montana livestock disease-free – all necessary to helping our farmers and ranchers meet growing global food demand. I will continue supporting agriculture research and bioscience programs and encourage federal government agencies to stick to the science, not marketing campaigns, when mandating regulations on food labeling.

Representatives from the Food and Drug Administration and the U.S. Department of Agriculture have both publically admitted to me that there are no material, scientific differences between foods grown using biotechnology and that there is no scientific evidence that mandatory labeling is necessary or beneficial. Our government should make decisions on food safety based only on sound science, not on marketing efforts that have no bearing on health, food safety or nutrition.

I will stand up for Montana and continue to fight to ensure that Montana’s agricultural products are not unfairly and arbitrarily discriminated against. I’m honored, as always, to stand with Montana’s farmers, ranchers and agricultural industry.

 

Thank you to Senator Daines for standing up for Montana’s farmers and ranchers in Washington D.C.!

2015 Legislative Score Card now online

After every legislative session MSGA puts together a score card so members can see how their legislators voted and whether they are supporting issues that are important to the membership. This information is really important to take into consideration when voting for next year’s legislators.

The 2015 Legislative score card is now available in our members only section. You will need to be logged into your account to view the score card.

Follow the directions below to access the score card.

  1. Click this link. (You must be logged into your account. You can recover your password on the log in page – if you have forgotten it.)

If you are having problems accessing the information, please call the office or email [email protected].

 

Score Card

Op-Ed: Tax Extenders are Critical to Stable Rural Growth

Philip Ellis_headshotAs we approach the end of the year, minds turn toward family, Christmas, big dinners, and snow. But for many in rural America, it’s also time to wrap up the tax year and set the strategy for the year ahead. For cattle producers and farmers equipment purchases, new buildings, and other major capital expenses are logical considerations. Unfortunately, for many the tax code has looked more like a gamble than a sure bet. Key provisions like Section 179 deductions and bonus depreciation that had been extended in 2014, again have been pushed to the end of the year. Earlier this year, the House permanently extended both Section 179 and bonus depreciation, but the Senate has yet to act. Without action, Section 179 dropped back down from $500,000 to $25,000 and bonus depreciation completely disappeared for the current tax year.

If Congress fails to act in December, producers will not be able to take these provisions into account during this tax year. Congress can retroactively extend these provisions, but in the real world, we cannot retroactively make plans or purchases. These provisions are key considerations when making the decision to purchase machinery and equipment. Those capital expenditures provide the pass through growth for much of the rural economy that relies on agriculture. That is why it is so important for Congress to act to pass a multi-year extension of Section 179 and bonus depreciation in early December. Producers need access to these tools while they still may be of use this tax year, and the certainty in future years to plan without waiting until the last minute to make major financial decisions.

We understand all too well the cyclical nature of the markets and weather we live with every day. These forces are beyond our means to control. But the tax code should not be as unpredictable as the weather or the markets. There is bi-partisan support for these provisions, and these provisions provide inducements for small businesses nationwide to grow and expand. In turn, that increases economic growth in areas where it is needed most. I encourage you to join with the members of the National Cattlemen’s Beef Association in talking with your members of Congress and ask them to pass a multi-year tax extender package.

By: Philip Ellis, NCBA President

Senate Acts on WOTUS Legislation

waterThis week, the Senate finally took up a series of votes on the EPA and Army Corps of Engineers’ “waters of the United States” rule. A major priority for cattle ranchers and all land-use stakeholders, Montana Stockgrowers has been working aggressively with our Congressional Representatives and Attorney General Tim Fox to repeal WOTUS and limit EPA’s attempt at overreach in controlling our water on private lands.

Earlier this week, the Senate took a vote on SB 1140 – Federal Water Quality Protection Act, sponsored by Senator John Barrasso (R-Wyo.), which failed to obtain the necessary 60 votes to pass. SB 1140 aimed to repeal WOTUS in favor of rules to “protect traditional navigable water and wetlands from water pollution, while also protecting farmers, ranchers and private landowners.”

Montana Stockgrowers Association, along with Attorney General Tim Fox and Montana Chamber of Commerce signed on in support of SB 1140. Senator Steve Daines supported the bill and testified in front of Congress, sharing comments from MSGA President, Gene Curry.

“MSGA thanks Senator Daines for supporting SB 1140, the Federal Water Quality Protection Act, and his continued opposition to work to stop the final WOTUS rule. This rule is an unwise and unwarranted expansion of EPA’s regulatory authority over Montana’s waters, and would have a significant detrimental impact on Montana’s ranchers.”

Watch Daines’ testimony regarding WOTUS here. Following the vote, Senator Jon Tester signed on to a letter to EPA administrator, Gina McCarthy, encouraging the agency to “provide clearer and concise implementation guidance to ensure that the rule is effectively and consistently interpreted,” recognizing this as something ranchers deserve.

The Senate then turned to consideration of a joint resolution of disapproval sponsored by Senator Joni Ernst (R-Iowa). The vote in support of the joint resolution showed bi-partisan support and the resolution passed 53-44. SJ 22 “would order the EPA and Corps to withdraw the WOTUS rule and would prevent the agencies from further similar rulemaking.” (Farm Progress) The joint resolution must still be considered by the House before going to the President’s desk.

Montana Stockgrowers continues to work aggressively with our state and national leaders to represent the interests of our members on this important national policy. We encourage all MSGA members to attend policy committee meetings during our upcoming Annual Convention for further discussion on this and other important policy topics.

A full Annual Convention agenda and registration can be found on our website at mtbeef.org.

Chief Veterinarian Addresses Joint Public Meeting Regarding Antimicrobial Data Collection

Antibiotics Use Livestock ResistanceWASHINGTON – Yesterday, Kathy Simmons, DVM, Chief Veterinarian, National Cattlemen’s Beef Association, delivered comments before a joint public meeting of the Food and Drug Administration, United States Department of Agriculture, and Center for Disease Control addressing antimicrobial use and resistance data collection.

“NCBA believes that a clear strategy for data collection, analysis and reporting must first be established before moving forward with the data collection process in order to provide information that correctly represents actual antimicrobial drug use in food-producing animals,” said Dr. Simmons, adding that antimicrobial use data collection needs to be revised. “We agree that the antimicrobial drug sales and distribution data currently collected by FDA under ADUFA does not equate to antimicrobial drug use in food-producing animals. We are appreciative of the desire of the agencies to obtain broad stakeholder involvement and collaboration in the process to seek the best possible options available for collecting and analyzing on-farm antimicrobial drug use information.”

NCBA has a long history supporting antimicrobial stewardship that directs responsible antibiotic use in all sectors of the beef cattle industry. This commitment dates back to the first release of the Beef Producer Guidelines for Judicious Use of Antimicrobials in 1987, which is still utilized in an updated form by producers today.

“We do not believe that the reduction in the volume of antimicrobial drugs used in food-producing animals should be used as the sole measurement for the success of a judicious antimicrobial drug use strategy,” said Simmons. Instead, “there must be a way to link antimicrobial drug use metrics with the reason for drug use and animal population parameters rather than simply reporting aggregate quantities for which the only goal is reduction.”

Additionally, Simmons cautioned FDA on privacy concerns, stating that ensuring the anonymity of participants and safeguarding the information gathered in the system is of utmost importance to cattle producers.

As the conversation continues in Washington D.C., NCBA will remain engaged. Cattlemen and women appreciate the efforts of FDA to help bring more transparency and increased granularity to the antibiotic sales data for food-producing animals as well as the collaborative approach FDA is taking between industry users, federal agencies, and animal health companies.

–NCBA Press Release

Senate Hearing Reviews Army Corps’ Role in WOTUS

waterWASHINGTON (Sept. 30, 2015) – Today the Senate Environment and Public Works Subcommittee on Fisheries, Wildlife and Water held a hearing on the Army Corps of Engineers’ participation in the “waters of the United States” regulation. The subcommittee focused on internal memos released by the House Oversight and Government Reform Committee. While the memos show the Corps leadership having serious concerns with the science underlying the WOTUS rule, Jo Ellen Darcy, Assistant Secretary of the Army insisted, as co-author, the Corps supported the final rule.

The hearing provided ample opportunity to highlight the issues raised in the memos and the gulf between the Corps and EPA in the arbitrary standards used in the final rule. Philip Ellis, National Cattlemen’s Beef Association president and Chugwater, Wyo., cattleman, said the arbitrary nature of this rule poses a danger to all land uses.

“This rule is clearly not based on science, nor does it relate to keeping our waters clean,” said Ellis. “It is a transparent land grab by the administration and EPA. Cattlemen and women will continue to oppose this rule in Congress and in the courtroom. This rule and the flawed rulemaking process underlie the need for legislation to withdraw the rule and compel the agencies to work with all stakeholders.”

The WOTUS rule became effective in all but 13 states on August 28. A Federal Circuit Judge in North Dakota granted a temporary preliminary injunction on implementation of the WOTUS rule in the case brought by the 13 states before his court. Since enforcement of the rule, 31 states and numerous stakeholders, including the NCBA and Public Lands Council, have engaged in 22 lawsuits challenging EPA’s transparent lack of authority to regulate all waters in the United States.

NCBA and PLC support S. 1140, the Federal Water Quality Protection Act, bipartisan legislation that would direct the EPA to withdraw the final WOTUS rule and work with stakeholders in drafting a new rule to clarify the Clean Water Act.

–NCBA Press Release

Senate Reauthorizes Mandatory Livestock Price Reporting Without Critical Provision

WASHINGTON (Sept. 22, 2015) – The National Cattlemen’s Beef Association appreciates the efforts of the Senate in reauthorizing Mandatory Livestock Price Reporting through 2020. NCBA President, Philip Ellis, a Wyoming cattle producer, said this information provides producers greater transparency in market conditions.

“Transparency is essential to the functioning of our livestock markets, and our ability as producers to make decisions critical to our profitability,” said Ellis. “We appreciate the Senate’s reauthorization of this provision before it expired at the end of the month. Unfortunately, due to the actions of Senator Stabenow, not only does this legislation lack the status of an essential service, the bill differs substantially from the House version; subjecting producers to further delay and uncertainty.”

Mandatory Price Reporting requires meat packers to report to USDA the prices they pay for cattle, hogs and sheep purchased from farmers and ranchers for slaughter, as well as the prices they receive for the sale of wholesale beef, pork and lamb. Mandatory Price Reporting also requires USDA to issue daily, weekly and monthly livestock and meat market reports.

“For American’s cattlemen and women, market transparency is not a luxury,” said Ellis. “Cattle markets are complex and ever-changing, and cattle producers like myself rely on the information provided by price reporting to make informed decisions. The actions of Senator Stabenow have ensured that cattle producers will not have access to this critical market information in the event of a government shutdown.”

In contrast to the House version, the Senate’s Mandatory Price Reporting legislation does not make the program an essential government service, rendering the program vulnerable to future government shutdowns. Due to these differences, the legislation now must be conferenced with the House, and signed by the President prior to expiration on Sept. 30, 2015.

Explanation of Montana Tax Reappraisal Notices

The following is a guest column from Montana Representative Rob Cook, R-Conrad

Representative Rob CookThe arrival of reappraisal notices from the Montana Department of Revenue (DOR) has many Montana taxpayers experiencing sticker shock. But, before we are panicked enough to begin construction of a bunker, it would be useful to know how a sharp increase in appraised market value affects our actual tax bill.

Let’s look at a reappraisal notice. Assume that we find in the table on page 2 that the previous year taxable value for our residence was $1000 and that our current year taxable value is now a frightening $1500. Should we expect that our current year property taxes will also increase by a factor of 1.5?

The short answer is no and, while there are many factors that contribute to this, I’ll attempt to explain a few of the most important.

First, we should consider that if the taxable value of our property grew at such an alarming rate, shouldn’t the taxable value of all the neighboring properties have grown by a similar factor? If we didn’t complete any new construction or major renovations since the last appraisal in 2008 – then it is likely that our new values simply reflect an uptick in the local housing market and that our new taxable value has not moved disproportionately to that of our neighbors.

Perhaps inadvertently, we have uncovered one of the nuances of the Montana property tax system – when we are investigating a particular class of property the absolute value of an individual change is not as important as the comparison of the properties relative change to the relative change of other members in its class. For example, if the average change for neighboring properties was 1.3 and our change was 1.5, then we should expect that our taxes will increase by a greater percentage than our neighbors. Conversely, if the average change for neighboring properties was 1.7, then we could expect that our taxes would increase by a smaller percentage than our neighbors. In the latter case, it is actually possible for our taxes to decrease!

Next, we should consider what happens when the taxable value of every class of property increases. We know that the total taxes collected is equal to the taxable value multiplied by the mill rate, so did our county and local government just get a license to explode their budgets?

Fortunately, in this scenario, taxpayers are protected by Montana law. The growth in county and local government budgets is limited to one-half the average rate of inflation plus the taxes provided by any new growth. Thus, if the total taxable value goes up, the mill rate must be reduced so that total collections do not exceed the maximum allowable budget.

Finally, if we take into account the maximum budget constraint and the relative movement of our property within its class, it becomes apparent that the actual property taxes we will be required to pay does not mirror the increase in taxable value. In fact, in most cases any increase in property taxes should lie much closer to the increase provided by the maximum budget constraint than to the multiplier derived from the comparison of the current and existing taxable values.

This has been a very simplistic explanation of a reappraisal notice and I would be remiss if I did not mention that, in addition to the discussed relative movement within a class, there is also relative movement between classes. The legislature attempts to mitigate the latter by employing a technique called ‘taxable value neutrality’.

Taxable value neutrality simply means that the statewide total taxable value of residential, commercial, and agricultural properties remains the same each year. This was achieved in the last session by lowering the tax rates for each of these classes.

Because this mitigation technique is applied to the statewide totals, it can cause tax shifting at the local level. If we wish to be strictly accurate, these shifts must be considered when attempting to decipher the actual tax impact of the reappraisal notice.

Our property tax system and reappraisal process can be difficult to understand. I have selected a residential property example but the same considerations apply to commercial and agricultural properties. I hope the explanation has been useful and I appreciate your time.

USDA Approves Beef Imports from Argentina and Brazil Despite Industry Concern

Image via Flickr.

Image via Flickr.

WASHINGTON – On Monday, June 29, USDA APHIS released their final rules for the Importation of Fresh Beef from Northern Argentina and a Region in Brazil. With this step by the Administration, these areas with a known history of Foot-and-Mouth disease would be allowed to begin the inspection process to import fresh and frozen beef products into the United States. The National Cattlemen’s Beef Association stands firmly opposed to this regulation, not on the basis of trade but on the basis of animal health concerns; no trade is worth jeopardizing our herd health.

“FMD is a highly contagious and devastating disease, not just for the cattle industry, but for all cloven-hoofed animals and it can be introduced and spread through the importation of both fresh and frozen products,” said NCBA President and Chugwater, Wyoming, cattleman, Philip Ellis.. In 1929, our industry took profound and personally devastating steps to eradicate this disease and the United States has been FMD free ever since. But the actions of this administration for purely political gain threaten the very viability of our entire industry and threaten hundreds of thousands of American cattle-producing families.”

NCBA has demonstrated through numerous public comments and in person through meetings with staff and members, our concerns regarding the importation of fresh and frozen product from Northern Argentina and these 14 states in Brazil. There is a long history of repeated outbreaks in many of the neighboring South American countries, as well as a history of problems in both Argentina and Brazil with compliance to animal health and food safety regulations. Despite this long history of such an economically devastating animal disease, the Administration did not conduct an objective quantitative risk analysis for this rule, as was performed in 2002 for Uruguay.

The effect of an FMD outbreak in the United States would be devastating to animal agriculture and our entire economy with estimates for total economic losses ranging from $37 billion to $228 billion, depending on the size of an outbreak. Moreover, innumerable losses would occur through the closure of export markets, lost domestic sales, lost opportunities, and a loss of consumer confidence in beef.

USDA APHIS has worked for over 80 years to keep our country free of FMD, now is not the time to give up on that commitment simply to fulfill a political legacy.

Read NCBA’s full release here.


Montana Stockgrowers did submit comments regarding this USDA rule change in 2014.

MSGA supports opening foreign trade relations, utilizing science-based standards to facilitate trade. However, we do not support this proposal for importation of fresh (chilled or frozen), maturated and deboned beef from the specified 14 regions in Brazil into the United States. The risk and potential for catastrophic impact due to the introduction of FMD into U.S. cattle herds is not worth the small amount of trade that would be gained.

With 2.55 million head of cattle, making an economic impact of $1.4 billion annually to the state, the proposed rule will have a large impact, on not only cattle ranchers, but also the well-being of the state of Montana.

Stockgrowers Supports Senate Passage of Trade Promotion Authority

On Wednesday, June 24, the U.S. Senate passed Trade Promotion Authority Act, sending H.R. 2146 to the President’s desk by a vote of 60-38. Montana Stockgrowers is supportive of this legislation, which will allow the President greater authority to negotiate international trade agreements, which is important to many of our state’s agricultural products.

“There was a time when the largest part of our economic activity was domestic, but now our future depends on our ability to be globally competitive,” says Errol Rice, MSGA Executive Vice President. “TPA is key to accessing the additional demand from the 96% of consumers that live outside the United States.”

According to Michael Froman, U.S. Trade Ambassador in an interview with The Wall Street Journal, the average tariff in TPP countries is three to four times as high as in the U.S, which equates to 70% on autos, 50% on machinery, 35% on chemical and 50% on beef. A successful TPP agreement will reduce these tariffs, which in turn creates more economic opportunity for our U.S. cattle market.

Since 1974, Congress has enacted TPA legislation that gives the President guidelines on negotiating trade agreements while giving Congress the final up or down vote. MSGA has been working very hard to ensure that agriculture and business has the balance of power to get TPA reauthorized.

Phillip Ellis, President of National Cattlemen’s Beef Association (NCBA), hails the final passage, noting the importance of trade and export markets to the value of U.S. cattle.

“Cattlemen and women have seen tremendous value in trade, exporting over $7.1 billion worth of U.S. beef in 2014, which alone accounts for over $350 in added value per head of cattle in the United States,” says Ellis. “This value is not just from increased demand, but also from adding value to variety meats that have very limited value here at home.”

Ellis continues, “As the demand for U.S. beef continues to grow around the world, the future success of the beef industry rests in our ability to meet foreign demand without inference of tariff and non-tariff trade barriers. With TPA passed, the U.S. can focus on finalizing trade agreements like the Trans-Pacific Partnership that will give us greater access to consumers throughout the Pacific Rim.”

Montana Stockgrowers appreciates the support of Senator Daines and Congressman Zinke in supporting greater access to international trade markets, which improves demand and support for products grown and raised on farms and ranches across Montana and the United States.