July 3, 2015 Comments are off Montana Stockgrowers Association
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Errol Rice: We are a Global Business

Errol RiceFree trade is on the minds of Congress, MSGA and many U.S. business executives these days as the White House looks to push for reauthorization of Trade Promotion Authority (TPA) as well as a watershed Pacific trade deal with Japan and 10 other countries. The Japan agreement is better known as TPP. Congress is also weighing in to modify mandatory Country of Origin Labeling (COOL) requirements.

MSGA was actively involved in the formation of COOL legislation during the 2002 Farm Bill. Since that time, the program has been challenged in the World Trade Organization (WTO) by Canada and Mexico. The WTO’s Appellate Body has determined that our COOL requirements unfairly discriminate Canada and Mexico’s beef exports. Canada and Mexico are now seeking more than $3 billion per year in sanctions against a variety of U.S. exports. According to the Canadian Embassy in Washington, D.C., the top Montana exports affected by retaliation include cattle, cherries, corn, pasta and jewelry valued at right around $10 million.

MSGA has long supported COOL, but realizing the significance of retaliation, the MSGA Beef Production and Marketing Committee and the Board of Directors adopted new interim policy on June 6th. The policy supports the repeal of our current COOL statute and then work to develop a comprehensive, broad-based labeling program for U.S. beef.

On June 10th, the House passed H.R. 2393, the COOL Amendments Act, by a vote of 300-131. H.R. 2393 amended the Agriculture Act of 1946 to repeal mandatory COOL. As I write this piece, the Senate Agriculture Committee is deliberating on its own version of a COOL bill. The Senate may have some hurdles to jump to get the required 60 votes for full repeal but we will be monitoring and weighing in on this very actively in the next several weeks.

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. A consensus version of TPA passed through both the House and Senate this month and is headed to the President’s desk (as of this writing). MSGA has worked very hard to ensure that agriculture and business has the balance of power to get TPA reauthorized.

Our point of view is that 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. TPA is key to accessing the additional demand from the 96% of consumers that live outside the United States. TPA eliminated tariffs on U.S. beef by 40%, 20% and 89% in Korea, Panama and Colombia alone.

We are trying to level the global playing field. According to Michael Froman the U.S. Trade Ambassador, the average tariff in TPP countries is three to four times as high as ours is. It equates to 70% on autos, 50% on machinery, 35% on chemical and 50% on beef. A successful TPP agreement will either make these zero or much lower which in turn creates more economic opportunity for our U.S. cattle market. Let’s also not forget about China. There is no formal access for U.S. beef into China. If we care about American jobs and beef’s role in feeding a global population then we have to make progress on all of these fronts.

June 11, 2015 Comments are off Montana Stockgrowers Association
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Montana Ag Community Applauds Zinke’s Vote to Repeal Mandatory COOL Regulations

(WASHINGTON) June 11, 2015 – Today Montana agriculture leaders applauded Congressman Ryan Zinke for voting in favor of repealing mandatory country of origin labeling (COOL) for agriculture products by voting YES on H.R. 2393, the Country of Origin Labeling Amendments Act of 2015. The measure passed with overwhelming bipartisan support by a vote of 300-131. Montana Stockgrowers, Wool Growers and Pork Producers applauded Zinke’s vote.

COOL regulations were implemented on beef, pork and lamb in 2002; however earlier this year the World Trade Organization ruled in favor of a Canadian complaint that the U.S. labeling law was in violation of WTO code.  This prompted the House of Representatives to act in order to prevent retaliatory tariffs against U.S. producers. Under H.R. 2393, producers are still allowed to label their meat as made in the U.S.A., however it is not required.

“I’ve listened to Montana farmers and ranchers, and it’s clear: Maintaining strong trade relationships with our top trade partner Canada, and our other allies, is critical to the success of Montana’s entire agriculture community,” said Rep. Zinke.  “In Montana we export more agriculture goods globally than every other industry combined. Repealing COOL regulations while still allowing beef, pork and lamb producers to maintain ‘Made in the U.S.A.’ labels will return certainty to our agriculture industry and allow Montana farmers, ranchers and related trades to compete globally for years to come.”

“The Montana Stock Growers Association thanks Congressman Zinke for voting to repeal the mandatory labeling regulations,” said Errol Rice, Executive Vice President, Montana Stockgrowers Association Inc.” This is critical in order to bring us up to date with WTO ordinances and prevent billions of dollars in retaliatory action from Canada and Mexico that would harm Montana’s entire agriculture industry. As Congress moves forward with a new plan for beef labeling the MSGA looks forward to working with Congressman Zinke and others to craft an industry-led labeling program that works for Montana’s stock growers and our customers around the globe.”

“Congressman Zinke’s vote in favor of the COOL reform bill is a vote in favor of Montana Wool Growers and the entire agriculture industry,” said Jim Brown, President, Montana Wool Growers Association. “The bill strikes a delicate balance between implementing the WTO’s rules against the U.S. and avoiding retaliatory trade measures by Canada and Mexico, while still allowing livestock producers, such as Montana’s sheep producers, to advertise that our products are grown right here in the U.S.A.  We thank Congressman Zinke for being a steadfast defender of Montana’s agriculture industry and the thousands of jobs it supports in our state.”

“Montana Pork Producers applaud Congressman Zinke for his vote to roll back COOL regulations and put American agriculture more in line with our global competitors,” said John Rauser, President, Montana Pork Producers Council. “Agriculture is Montana’s largest export and repealing the COOL requirement while still giving producers the option of labeling our products as Montana made or made in the U.S.A. helps all of us compete in a global industry.  Montana Pork Producers and all pork producers cannot afford to pay a $3 billion retaliation tariff imposed by Canada and Mexico against U.S. pork and beef.”

“Retaliation from COOL will have a major impact on our economy and our trading relationships,” said Dusty Hahn, Rancher, Townsend, MT. “Trade accounts for over $300 of value for every head sold, and jeopardizing our relationships with two of our largest trading partners will only continue to hurt the bottom line of cattle producers like myself. The economic analysis mandated by Congress reported that COOL has already cost our industry 8.07 billion over 10 years. COOL is simply a failed marketing program and I appreciate Rep. Zinke’s support to repeal COOL before retaliation from two of our largest trading partners takes place.”

Press Release, Congressman Ryan Zinke

May 8, 2015 Comments are off Montana Stockgrowers Association
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Beef Checkoff and Policy Funding | Checkoff Chat

While the Checkoff may provide education and information about beef, it does not fund policy work

While the Checkoff may provide education and information about beef, it does not fund policy work

Q: Does the checkoff fund policy like COOL and the Dietary Guidelines?

A: The checkoff can only be a resource for information about beef and is prohibited from engaging in discussions about policy. Local, state and national policy membership organizations were formed for this reason and they carry out lobbying on behalf of their membership policies.

No checkoff dollars whatsoever have been used in any comments or actions related to COOL by any checkoff contractors or associated organizations on behalf of the checkoff. As the administrator of the Beef Checkoff, the Cattlemen’s Beef Board cannot take a position on policy matters and cannot lobby. These are matters producers should take up with their individual farming and ranching organizations.

Checkoff Chat Montana Beef CouncilRead more about the Beef Checkoff Programs in our Checkoff Chat Series with the Montana Beef Council. Click here to submit your own questions to be answered in future posts.

About the Beef Checkoff
The Beef Checkoff Program (MyBeefCheckoff.com) was established as part of the 1985 Farm Bill. It assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the $1 and forward the other 50 cents to the Cattlemen’s Beef Board, which administers the national checkoff program, subject to USDA approval. The Montana Beef Council was created in 1954 by cattlemen as a marketing organization for the Montana beef industry and is organized to protect and increase demand for beef and beef products through state, national and international beef promotion, research and education, thereby enhancing profit opportunities for Montana beef producers.