In a letter signed by 47 organizations sent today to U.S. Trade Representative nominee Mike Froman, the coalition expressed concern with a resolution approved last month by the European Parliament that in negotiating the Transatlantic Trade and Investment Partnership (TTIP) with the United States the EU should maintain the “precautionary principle” for SPS issues. Precautionary measures are implemented based on the mere identification of potential risk or, worse, on public perception and political considerations rather than on science-based risk assessments. The World Trade Organization requires member countries’ SPS measures to be based on scientific risk assessments.

“Precaution in the EU has become a pretext for import protectionism under the pretense of consumer safety,” wrote the coalition in its letter. “Such non-science-based measures have become the most challenging barrier to U.S. food and agricultural exports to the EU.”

Examples include certain restrictions on production methods that negatively affect exports of U.S. meat, poultry and dairy products; discriminatory and trade-restricting product labeling requirements; and regulatory barriers to biotechnology that restrict U.S. corn, soy and processed corn and soy product exports.

The coalition said SPS issues must be addressed as part of the negotiations, not simply left to some future consultative mechanism as some EU parliamentarians have suggested. Additionally, SPS provisions negotiated under the TTIP must be enforceable.

If certain sectors or measures are excluded from the TTIP, said the coalition, or placed into a “future negotiation” category, the agreement likely will fail to win the support of the food and agricultural sector.

The coalition reiterated its call for the administration to use the Trans-Pacific Partnership negotiations and other recent U.S. free trade agreements as models for talks on the TTIP.

SENATE, HOUSE MARK UP 2013 FARM BILL
The Senate Agriculture Committee Tuesday – in a short three-hour session – marked up and approved its version of the 2013 Farm Bill by a 15-5 vote. The bill had several amendments but did not make any substantial changes to the draft bill. Sen. Mike Johanns, R-Neb., offered an amendment to create an undersecretary for trade, which passed. Johanns also offered and then withdrew an amendment to repeal the Mandatory Country of Origin Labeling (MCOOL) law. Sen. Michael F. Bennet, D-Colo., offered an amendment to establish an organic checkoff, which passed. Click here for more information on the Senate Farm Bill. The House Agriculture Committee Wednesday – in a much longer 10-hour session – marked up and approved its version of the 2013 Farm Bill by a 36-10 vote. An amendment offered by Rep. Steve King, R-Iowa, that prohibits states from imposing laws that place production conditions on agricultural goods sold within its own borders but produced in other states, passed after an hour of heated discussion. Rep. Austin Scott, R-Ga., offered and then withdrew an amendment to repeal MCOOL for meat. Also approved was an amendment offered by Rep. Mike Conaway, R-Texas, to prevent the Grain Inspection, Packers and Stockyards Administration (GIPSA) from doing any further work on the so-called GIPSA Rule that resulted from the 2008 Farm Bill. Ranking Member Collin Peterson, D-Minn., supported the amendment, saying USDA overreached its authority in writing rule. Rep. Michelle Lujan Grisham, D-N.M., offered and withdrew an amendment to prohibit the processing of horses. Rep. Kurt Schrader, D-Ore., offered an amendment to provide authority for an organic checkoff under the Commodity Checkoff Generic Act, which passed. The so-called “Egg Bill” was not brought up as an amendment in either bill. Click here for more information on the House Farm Bill.

SENATE PASSES ‘CLEAN’ ADUFA REAUTHORIZATION MEASURE
The House Energy and Commerce Committee Wednesday passed a bill to reauthorize the Animal Drug User Fee Act (ADUFA). No amendments were offered. NPPC strongly supported the “clean” reauthorization of ADUFA, which benefits pork producers and animal drug companies. It allows the U.S. Food and Drug Administration (FDA) to collect from animal health companies user fees for conducting drug reviews and approvals. The user fees supplement FDA’s funding, allowing pork producers to gain access to important animal health products in a timely manner. The Senate last Wednesday passed ADUFA reauthorization – without amendments – by unanimous consent. Opponents of modern livestock production had threatened to add to ADUFA reauthorization legislation an amendment to require data collection of on-farm uses of animal health products, a costly and burdensome mandate. Click here to read NPPC’s letter in support of ADUFA reauthorization.

HOUSE WAYS AND MEANS SUBCOMMITTEE HELD HEARING ON SMALL BUSINESS TAX REFORM
The House Ways and Means Subcommittee on Select Revenue Measures Wednesday held a hearing on the Ways and Means Small Business Tax Reform Discussion Draft released March 12. The subcommittee heard comments and analysis relating to the basic architecture of the draft proposals, which would among other changes require farmers to use the accrual rather than the cash method of accounting. Subcommittee Chairman Rep. Pat Tiberi, R-Ohio, said comprehensive tax reform must result in a clearer, more durable tax code with decreased statutory tax rates for small business owners, noting the more than 4,500 changes to the tax code in the last 10 years. Tiberi said the draft serves as a step forward in developing an improved tax code for small businesses by allowing stakeholders to express what they need from tax reform to create jobs and increase wages. Rep. Aaron Schock, R-Ill., questioned witnesses about how pork producers in his district who currently are exempt from accrual accounting requirements might be able to adequately manage their business if this proposal became law. He raised concerns that the proposal would force them to make poor business decisions. Click here to see Schock’s questioning. NPPC signed onto a joint agriculture letter expressing concerns about the proposal’s elimination of “special exceptions” for farming businesses. The proposal would require operations that currently have gross receipts of $10 million or more to switch from using cash accounting to accrual accounting systems; current law requires this of operations of $25 million or more. This proposal presents problematic situations where cost of inventory (pigs in progress) would be immediately taxable. In addition, this required switch would subject pork producers to new compliance regulations – which are hundreds of pages – on inventory capitalization rules under Section 263. NPPC will continue to monitor developments and keep producers updated on this issue.

NPPC PARTICIPATES IN TPP NEGOTIATIONS
NPPC Vice President and Counsel for International Affairs Nick Giordano traveled to Lima, Peru, this week for the 17th round of the Trans-Pacific Partnership (TPP) negotiations, meeting with government and private sector officials from TPP member countries. In April, the Obama administration formally notified Congress of its intention to include Japan in the ongoing TPP negotiations. Japan’s inclusion in TPP makes it the single most important trade negotiation ever for the U.S. pork industry and many other U.S. agriculture sectors. After Japan, Vietnam – with domestic pork consumption of 2.0 million metric tons per year – offers the greatest potential for expanded U.S. pork exports. According to Iowa State University economist Dermot Hayes, increased pork exports resulting from a TPP agreement would create more than 20,000 direct and indirect U.S. pork-related jobs.

HOUSE COMMITTEE HOLDS HEARING ON U.S.-EU FTA
The House Ways and Means Subcommittee on Trade Thursday held a hearing on the Transatlantic Trade and Investment Partnership (T-TIP). Chairman Devin Nunes, R-Calif., focused his comments on the importance of addressing the numerous barriers the EU currently has in place that negatively impact U.S. agriculture exports. In addition to calling for a comprehensive TTIP agreement that addresses sanitary and phytosanitary barriers, Nunes said the TTIP must also have enforceable WTO-plus disciplines. The EU represents a tremendous market opportunity for U.S. pork exports, with consumption totaling 20 million metric tons annually – the second largest market in the world for pork consumption. However, numerous barriers prevent the U.S. pork industry from exporting significant amounts of pork to the EU, with current U.S. pork exports to the EU amounting to less than a quarter of 1 percent of total EU pork consumption. According to Iowa State University economist Dermot Hayes, the increased U.S. pork exports that will be generated by TTIP will create over 17,000 new jobs in the United States. The United States and the EU are aiming to begin negotiations mid-summer.

NPPC FOCUSED ON COMMERCIAL OPPORTUNITY IN SOUTH AFRICA
The current export certificate for the South African market, which is set to expire May 31, contains very strict and unscientific-based time/temperature requirements for concerns about trichinae, pseudorabies, and porcine reproductive and respiratory syndrome (PRRS). These restrictions have severely limited U.S. pork exports to that market, amounting to only 725 tons in 2012. This bad situation is getting worse with South Africa retreating on their agreement to prioritize renegotiation of the U.S. pork export certificate in an effort to lift barriers to trade. Instead, they are imposing additional requirements that will create a de facto ban on U.S. pork. South Africa, in the past year, notified the World Trade Organization (WTO) that it would impose New Zealand-like restrictions on pork from countries with PRRS. Ironically, New Zealand is actually in the process of lifting some of their unscientific-PRRS related barriers to trade. PRRS is not a food-safety issue, and there is negligible risk of PRRS transmission from the legal importation of pork from countries with the disease. NPPC will continue to work toward removing all barriers to trade in South Africa but it appears that things may get worse before they get better. NPPC is sending a number of porcine disease experts to South Africa next month to engage with their South African counterparts.

NPPC SUBMITS COMMENTS ON BURMESE TRADE RESTRICTIONS
NPPC this week submitted comments to the Office of the U.S. Trade Representative on the extension of Generalized System of Preferences (GSP) benefits to Burma. NPPC expressed concern regarding possible extension of GSP benefits to Burma without market access for U.S. pork. The GSP legislation requires a nation to provide “equitable and reason access to markets” to be considered for benefits. Currently, the Burmese government restricts imported pork by refusing to issue import permits to protect domestic livestock producers. Meat consumption in Burma is low due in significant part to very high prices. U.S. pork could help reduce high prices and provide the opportunity for more Burmese to afford meat protein.

WHAT’S AHEAD

SENATE TO CONSIDER FARM BILL NEXT WEEK
The Senate is scheduled Monday to begin consideration of the Agriculture Reform, Food, and Jobs Act of 2013 (S. 954) – better known as the Farm Bill – with votes beginning as early as Tuesday.

HOUSE AGRICULTURE COMMITTEE TO HOLD CFTC MARKET PERSPECTIVES HEARING
The House Agriculture Committee next Tuesday will hold a hearing on the future of the Commodity Futures Trading Commission.

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‘EGG BILL’ WILL NOT BE INCLUDED IN SENATE FARM BILL
The “Egg Products Inspection Act Amendments of 2013,” the so-called Egg Bill, a measure NPPC has been actively opposing since its introduction in 2012, will not be considered during the Senate’s markup of the Farm Bill next week. Sen. Debbie Stabenow, D-Mich., Agriculture Committee chairwoman, Thursday said she will not add the bill as an amendment to the Farm Bill. The legislation seeks to put into federal law an agreement between the Humane Society of the United States (HSUS) and the United Egg Producers (UEP) to mandate federal egg production standards. The legislation, which also is opposed by the National Cattlemen’s Beef Association and the American Farm Bureau Federation, would set a dangerous precedent for allowing Congress and federal bureaucrats to regulate all on-farm animal production practices. Click here to read more on why NPPC opposes the Egg Bill. It is still possible that other senators may offer the bill as an amendment to the Farm Bill. NPPC will keep its members informed on the progress of the 2013 Farm Bill.

SENATE PASSES ‘CLEAN’ ADUFA REAUTHORIZATION MEASURE
The Senate Wednesday passed the Animal Drug User Fee Act (ADUFA) reauthorization – without amendments – by unanimous consent. NPPC strongly supported the “clean” reauthorization of ADUFA, which benefits pork producers and animal drug companies. It allows the U.S. Food and Drug Administration to collect from animal health companies user fees for conducting drug reviews and approvals. The user fees supplement FDA’s funding, allowing pork producers to gain access to important animal health products in a timely manner. The House Energy and Commerce Committee next Wednesday will consider ADUFA reauthorization. Click here to read NPPC’s letter in support of ADUFA reauthorization.

SENATE APPROPRIATIONS SUBCOMMITTEE HEARS USDA BUDGET REQUEST
The Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Thursday held a hearing to review USDA’s budget request for fiscal 2014. Testimony from Agriculture Secretary Tom Vilsack and USDA Inspector General Phyllis Fong were given. Issues of importance included a proposal to shift food aid from U.S. commodity purchases to cash assistance funneled through the U.S. Agency for International Development, the Farmer Assurance Provision and the definition of “rural communities.” Shifting food aid would include shifting jurisdiction for the program to the Foreign Operations subcommittees of the Appropriations Committees. Chairman Mark Pryor, D-Ark., said the original goals of the food aid programs were to increase U.S. exports and feed the hungry; Vilsack said the United States doesn’t have the surpluses it did when the program was originally created, and U.S. export markets are now established. Vilsack said the change to cash assistance would save $500 million over 10 years, and 55 percent of the food would still be purchased in the United States. The Farmer Assurance Provision, according to Vilsack, is needless, of debatable legality and has made it problematic for USDA to develop guidelines and programs to allow coexistence of organic and conventional and biotech crops. The definition of “rural communities” was discussed when Sen. Tim Johnson, D-S.D., questioned the judgment of a USDA report requesting a change in the definition of rural communities from 10,000 people to 50,000 people for purposes of eligibility for USDA rural development programs. Vilsack said 32,000 farm families grow half of the food in the United States and that, with rural populations declining, it is necessary to increase the population size for eligibility for the sake of obtaining resources for development programs. The USDA budget also includes a $20 million feral swine research project. Click here to read testimony and watch the hearing.

SENATE JUDICIARY COMMITTEE BEGINS IMMIGRATION REFORM MARKUP
The Senate Judiciary Committee Thursday began marking up S. 744, immigration reform legislation that seeks to establish a path for undocumented workers, including farm workers, to earn legal status in the United States. Lawmakers at the markup, the first of three sessions, concentrated on border security and amnesty amendments. S. 744 would create a new “blue card” program for skilled farm workers and revise the current agricultural worker visa program. NPPC supports comprehensive immigration reform that secures national borders fairly and justly, provides a pathway to citizenship for the millions of immigrants already in the United States, creates new temporary work visas, requires employees to check the legal status of all employees against a strengthened E-verify database and gives employers access to a legal work force without placing undue burdens on businesses. NPPC will continue to work with Congress to make sure the U.S. pork industry has access to a stable and viable workforce.

SOUTH KOREAN PRESIDENT TALKS TRADE ON FIRST VISIT TO WASINGTON
South Korean President Park Geun-hye this week visited Washington, D.C., to celebrate the 60th anniversary of the U.S.-South Korean alliance. Park also met with President Obama to discuss a number of bilateral and regional issues, in particular, further strengthening the U.S.-Korea economic relationship. The two leaders discussed the importance of continuing to implement the U.S.-Korea Free Trade Agreement (KORUS) that entered into force March 15, 2012. KORUS is estimated to substantially increase U.S. pork exports. According to Iowa State University economist Dermot Hayes, the FTA with Korea when fully implemented will create 9,100 direct U.S. pork industry jobs, increase annual U.S. pork exports by $687 million and add $10 to the price producers receive for each hog. South Korea has also recently been encouraged by the United States to consider joining the ongoing Trans-Pacific Partnership negotiations.

AG COALITION URGES WHITE HOUSE TO KEEP USTR OPERATING
A coalition of U.S. food and agricultural organizations led by NPPC expressed concern that the Office of the U.S. Trade Representative (USTR) is considering closing the agency entirely for a number of normal working days over the coming months as a result of the sequester. In a letter signed by 37 organizations sent this week to White House Chief of Staff Denis McDonough, the coalition said it is not in the best interest of the United States to close USTR “… when the rest of the world is engaged in trade negotiations, activities at the World Trade Organization and elsewhere, or potentially adopting measures that are adverse to our trade interests.” The coalition urged that a different approach be taken to avert a total shutdown of USTR or risk negatively affecting the over $141 billion in annual U.S. agricultural exports.

WTO DELEGATION RECOMMENDS BRAZILIAN TO BE NEXT WTO DIRECTOR-GENERAL
The third and final round of consultations for Director General of the World Trade Organization (WTO) was held May 1 through May 7. At an informal meeting of the Heads of Delegation on May 8, the three facilitators in the process of selecting the next Director-General recommended Ambassador Roberto Carvalho de Azevêdo of Brazil as the candidate who can gain consensus approval of WTO members. The facilitators suggested that members approve Azevêdo as Director-General at the General Council meeting May 14. He has been selected from an original list of nine candidates after months of consultations among all 159 WTO members. Azevêdo currently is the Permanent Representative of Brazil to the WTO.

WHAT’S AHEAD

SENATE, HOUSE SCHEDULED TO BEGIN MARKUP OF 2013 FARM BILL NEXT WEEK
The Senate Agriculture Committee is scheduled to begin marking up the 2013 Farm Bill next Tuesday. The House Agriculture Committee will begin markup next Wednesday. The 2008 Farm Bill expired last year when lawmakers failed to approve a final 2012 Farm Bill. The full Senate and the House Agriculture Committee approved bills, but the full House never took up the committee measure. The 2008 bill was extended for a year and will expire Sept. 30. Lawmakers in both houses are expected to look for significant cuts in farm spending.

HOUSE AGRICULTURE COMMITTEE TO HOLD CFTC MARKET PERSPECTIVES HEARING
The House Agriculture Committee on Tuesday, May 21 will hold a hearing on the future of the Commodity Futures Trading Commission.

HOUSE ENERGY AND COMMERCE COMMITTEE TO CONSIDER ADUFA
The House Energy and Commerce Committee next Wednesday will consider Animal Drug User Fee Act (ADUFA) reauthorization.

HOUSE WAYS AND MEANS SUBCOMMITTEE TO HOLD HEARING ON SMALL BUSINESS
The House Ways and Means Subcommittee on Select Revenue Measures next Wednesday will hold a hearing focused on the Ways and Means small business discussion draft released on March 12. The Subcommittee intends to hear comments and analysis relating to the basic architecture of the draft proposals. NPPC signed onto a letter and will continue to monitor developments.

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EGG BILL MAY JEOPARDIZE FARM BILL
The “Egg Products Inspection Act Amendments of 2013,” the so-called Egg Bill (H.R. 1731 and S. 820), a bill NPPC has been actively opposed to since its introduction in 2012, may be considered during the Senate’s markup of the Farm Bill next week. NPPC says that the inclusion of the Egg Bill in the Farm Bill may jeopardize the passage of a farm bill. A spokesman for Sen. Mike Johanns, R-Neb., stated that Johanns will oppose the final Farm Bill if the Egg Bill is included. The bill seeks to put into federal law an agreement between the Humane Society of the United States (HSUS) and the United Egg Producers (UEP) to mandate federal egg production standards. The legislation, strongly opposed by NPPC, the National Cattlemen’s Beef Association and the American Farm Bureau Federation, would set a dangerous precedent allowing Congress and federal bureaucrats to regulate all on-farm animal production practices. Click here to read more on why NPPC opposes the Egg Bill.

NPPC PARTICIPATES IN BUSINESS DIALOGUE ON JAPAN’S ENTRY INTO TPP
NPPC Vice President and Counsel for International Affairs Nick Giordano participated on a panel discussion on issues for agriculture and industry regarding the recent announcement that Japan will join the Trans-Pacific Partnership (TPP) negotiations. The panel discussion was part of a day-long event focusing on Japan and TPP. The event featured remarks from former U.S. Trade Representatives (USTR) Clayton Yeutter and Robert Zoellick, as well as current acting USTR Demetrios Marantis. Ambassador Marantis reaffirmed the goal of completing TPP negotiations by the end of this year and remarked that although bringing Japan into negotiations at this late stage would be challenging, he believes that Japan’s entry can be seamless. The TPP is a comprehensive, WTO plus regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, and, with the addition of Japan, the TPP countries account for nearly 40 percent of global economic output. Japan is the top value export market for U.S. pork, accounting for almost $2 billion in 2012 sales. Increased pork exports resulting from a TPP agreement would create more than 20,000 direct and indirect U.S. pork-related jobs, with the vast majority generated by Japan alone. Japan’s entry into TPP makes it the single most important trade negotiation ever for U.S. pork and many other U.S. agricultural products. The Obama administration formally notified Congress last month of its intention to include Japan in the TPP negotiations, beginning a 90-day consultation period with Congress and stakeholders before negotiations with Japan can begin. Pending the successful completion of domestic procedures by each TPP country, Japan hopes to participate in negotiations in July.

NPPC SUBMITS RFS ANSWERS TO HOUSE ENERGY AND COMMERCE COMMITTEE
NPPC this week answered questions posed by the House Energy and Commerce Committee regarding their development of a Renewable Fuels Standard (RFS) white paper. In addition to NPPC’s answers, NPPC signed on to a broad set of responses prepared by a coalition of livestock and meat organizations who initially petitioned EPA for a waiver of the RFS mandate last July.  NPPC’s specific answers supplement the views of the larger livestock coalition and provide additional detail to further inform the committee of the views of the U.S. pork industry and producers’ experience engaging EPA in its decision last fall on a short term waiver of the RFS and in competing in tight markets for corn where growth in demand far outstripped growth in supply. To read the Committee’s questions to the agriculture sector, click here. To read NPPC’s comments, click here.

EPA ISSUES SECOND LETTER TO ENVIRONMENTAL ACTIVISTS OVER CAFO INFO
The U.S. Environmental Protection Agency (EPA) this week issued a second letter to the environmental activist groups that the Agency unlawfully sent concentrated animal feeding operation (CAFO) information to in February. The first letter sought to retrieve the previously issued data and resend in a redacted form. The latest letter seeks to retrieve the redacted information and replace it with new, further redacted information as EPA recognized that their release still contained significant amounts of private data. The data was released to the Natural Resources Defense Council, Earth Justice and the Pew Charitable Trusts under Freedom of Information Act (FOIA) requests the groups filed. NPPC, along with a number of other agricultural organizations, in March requested that EPA take steps to prevent such a release in the future, to retrieve the data released, and to agree that the information will not be posted to its website or distributed in any form. The National Cattlemen’s Beef Association is calling for an investigation by the Office of Inspector General into the matter. Nebraska Republican Sens. Mike Johanns and Deb Fischer said that with this release, EPA has shown that the agency continues to act as if it is above the law.

UNITED STATES TRADE REPRESENTATIVE NOMINATED
President Obama Thursday announced the nomination of Michael Froman, current Deputy National Security Advisor for International Economic Affairs, as U.S. Trade Representative. If confirmed, Froman would replace former trade ambassador Ron Kirk. The Office of the U.S. Trade Representative (USTR) is responsible for developing U.S. international trade policy, overseeing free trade negotiations, and enforcing existing agreements. The head of USTR, the U.S. Trade Representative, is a member of the President’s cabinet and serves as the president’s chief trade advisor, spokesperson on trade issues, and negotiator. NPPC works closely with USTR to expand and preserve market access opportunities for U.S. pork. NPPC has worked closely with Froman in his role as deputy national security advisor.  Mr. Froman is familiar with the trade challenges of the U.S. pork industry and we will work with him, as we have his predecessors, to increase and maintain market access for U.S. pork.

NPPC ENGAGED IN RE-OPENING THE RUSSIAN MARKET
The U.S. government, with industry input, is developing a commercial option for U.S. exporters to ensure beta-agonist free pork and beef for Russia. Russia implemented a complete ban on imports of U.S. pork, beef and turkey in February. In December Russia announced it would require pork imports from the United States to show documentation that the pork does not contain ractopamine residues. The U.S. Department of Agriculture, however, does not have a testing and certification program to detect ractopamine residues in pork because the feed additive has been approved by the U.S. Food and Drug Administration (FDA) as a safe product. NPPC is working closely with other industry partners and the U.S. government to ensure Russia abides by WTO rules and reopens its market to U.S. pork. However, until Russia and the U.S. come to an agreement on how to meet Russia’s unscientific requirement, no U.S. pork is being exported to Russia.

OBAMA TRAVELS TO MEXICO, COSTA RICA
President Obama departed on Thursday for a three day trip to Mexico and Costa Rica to meet with President Peña Nieto of Mexico and President Chinchilla of Costa Rica and discuss issues including furthering bilateral economic and commercial ties. The United States has free trade agreements with both Mexico and Costa Rica, through the North American Free Trade Agreement (NAFTA) and the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), respectively. Mexico is the largest export market, by volume, for U.S. pork. In 2012, U.S. pork exports to Mexico totaled over 600,000 metric tons (MT) valued at $1.13 billion. NPPC works closely with Mexican officials and the private sector to advance the trade relationship and ensure that both countries abide by NAFTA and World Trade Organization obligations. Costa Rica and the other countries of DR-CAFTA (Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua) are valuable trading partners for the U.S. Since implementation in 2006, U.S. pork exports have increased nearly 300 percent by volume, exceeding 55,000 metric tons (MT) in 2012 — a value of $130 million.

WHAT’S AHEAD

SENATE, HOUSE SCHEDULED TO START MARKUP OF 2013 FARM BILL BEGINNING NEXT WEEK
The Senate Agriculture Committee is scheduled to begin marking up the 2013 Farm Bill next Thursday. The House Agriculture Committee will begin markup on May 15. The 2008 Farm Bill expired last year when lawmakers failed to approve a final 2012 Farm Bill. The full Senate and the House Agriculture Committee approved bills, but the full House never took up the committee measure. The 2008 bill was extended for a year and will expire on September 30. Lawmakers in both houses are expected to look for significant cuts in farm spending.

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FEINSTEIN, SCHRADER REINTRODUCE EGG BILL
Sen. Dianne Feinstein, D-Calif., and Rep. Kurt Schrader, D-Ore., Thursday reintroduced the “Egg Products Inspection Act Amendments of 2013,” the so-called Egg Bill, after unsuccessful attempts to attach their bills to last year’s Farm Bill. The bill seeks to put into federal law an agreement between the Humane Society of the United States (HSUS) and the United Egg Producers (UEP) to mandate federal standards for egg-laying hens. The legislation, strongly opposed by NPPC, the National Cattlemen’s Beef Association and the American Farm Bureau Federation, would set a dangerous precedent allowing Congress and federal bureaucrats to regulate on-farm animal production practices. Click here to read more on why NPPC opposes the Egg Bill.

AGRICULTURE COALITION BACKS BILLS TO CREATE NEW GUESTWORKER PROGRAM
The Food Manufacturers Immigration Coalition, of which NPPC is a member, is supporting legislation introduced today that would help establish a stable workforce to sustain the rural communities where farmers, ranchers and food manufacturers grow and process the food supply. The coalition is backing the “Agricultural Guestworker Act,” which is sponsored by House Judiciary Chairman Bob Goodlatte, R-Va. The bill would replace the H-2A program with a sensible guestworker program, known as H-2C. It would modernize and streamline the existing agricultural guestworker program and would be administered by the U.S. Department of Agriculture. The existing temporary programs for general labor skilled workers are for seasonal labor only. Under the “Agricultural Guestworker Act,” the H-2C program would offer workers and employers more choices in their employment arrangements, creating more flexibility and making it easier for workers to move freely throughout the marketplace to meet demands. The new program would support food manufacturers, cattle operations, dairies, hog and poultry farms and other year-round agricultural employers. Since not all agriculture jobs are the same or require the same level of skill and experience, the H-2C program would give employers the opportunity to invest their time in training workers for jobs by allowing them an initial stay of 36 months. Workers would then be required to leave for up to three months. After the period of leave, each H-2C visa holder would only be required to leave the country once every 18 months. This would provide farm labor stability and would encourage illegal farm workers to identify themselves and participate in the H-2C program. Testimony delivered in February on behalf of the Food Manufacturers Immigration Coalition, which outlines the group’s major themes for immigration reform, is available by clicking here.

SENATE JUDICIARY COMMITTEE HOLDS IMMIGRATION HEARING
The Senate Judiciary Committee Monday held a hearing on “The Border Security, Economic Opportunity, and Immigration Modernization Act,” S.744, the proposal from the “gang of eight” senators. The hearing featured four panels, totaling 23 witnesses, with agricultural interests voiced by United Farm Workers President Arturo Rodriguez and National Council of Farmer Co-operatives President Chuck Conner. The Agriculture Workforce Coalition said that if Congress does not pass immigration reform that provides agriculture with a sufficient labor supply, the United States will become more reliant on imported food and thousands of U.S. farms could go out of business, cutting farm income by as much as $9 billion a year. NPPC supports comprehensive immigration reform that secures national borders fairly and justly, provides a pathway to citizenship for the millions of immigrants already in the United States, creates new guestwork visas, requires employees to check the legal status of all employees against a strengthened E-verify database and gives employers access to a legal work force without placing undue burdens on businesses. NPPC will continue to work with Congress to make sure the U.S. pork industry has access to a viable workforce. Click here to watch the hearing and read testimony from Monday’s hearing.

ADMINISTRATION NOTIFIES CONGRESS OF INTENT TO INCLUDE JAPAN IN TPP
The Obama administration formally notified Congress this week of its intention to include Japan in the ongoing Trans-Pacific Partnership (TPP) negotiations, a move hailed by NPPC. Notification begins a 90-day consultation period with Congress and stakeholders before negotiations with Japan can begin. The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, and, with the addition of Japan, the TPP countries account for nearly 40 percent of global economic output. Japan is the top value export market for U.S. pork, accounting for almost $2 billion in 2012 sales. Increased pork exports resulting from a TPP agreement would create more than 20,000 direct and indirect U.S. pork-related jobs, with the vast majority generated by Japan alone. Japan’s entry into TPP makes it the single most important trade negotiation ever for U.S. pork and many other U.S. agricultural products. Pending the successful completion of domestic procedures by each TPP country, Japan hopes to participate in negotiations in July. The Senate Finance Committee also held a hearing this week on export opportunities provided by a comprehensive TPP agreement. Sanitary and phytosanitary (SPS) barriers to U.S. agricultural exports were a key issue discussed at the hearing. NPPC is working to remove SPS barriers to U.S. pork products as part of negotiations.

SENATE APPROPRIATIONS SUBCOMMITTEE HOLDS EPA BUDGET HEARING
The Senate Appropriations Subcommittee on the Interior, Environment, and Related Agencies Wednesday held hearing to review the proposed EPA budget for fiscal 2014. Sen. Mike Johanns, R-Neb., voiced concern with EPA’s ability to conduct aerial surveillance of agriculture operations. Acting EPA Administrator Bob Perciasepe said EPA is not currently conducting aerial surveillance but is in the process of looking at the notification it would be required to give farmers and feedlot owners before conducting flights. Perciasepe said taking photographs of livestock farms from an airplane is a legal and cost-effective way to identify water runoff contamination. Johanns said EPA “sounds like it’s a federal agency that’s out of control.”

HOUSE APPROPRIATIONS SUBCOMMITTEE HOLDS BUDGET HEARINGS
The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies this week held a series of hearings on budget requests for agricultural agencies. The subcommittee Wednesday held a hearing on rural development programs, taking testimony from USDA Deputy Under Secretary for Rural Development Doug O’Brien, Acting Administrator for the Rural Utility Service John Padalino, Acting Administrator for the Rural Business-Cooperative Service Lillian Salerno, Administrator for the Rural Housing Service Tammye Trevino and USDA Budget Director Mike Young. Subcommittee Chairman Robert Aderholt, R-Ala., expressed concern that the budget request does not address the needs of rural America, citing dramatic cuts to successful programs such as the Single Family Direct Loans and Water and Waste Disposal grants. Aderholt also asked for a formal legislative proposal for the $55 million request for the new, unproved Rural Business and Cooperative Grant Program. The same day, the subcommittee held a hearing on USDA’s natural resources and environment mission areas, with testimony from USDA Deputy Under Secretary for Natural Resources and Environment Ann Mills, Acting Chief for the Natural Resources Conservation Service (NRCS) Jason Weller and USDA Budget Director Young. Aderholt said NRCS benefits all Americans but is usually not recognized. Aderholt expressed concern with NRCS program and financial management, citing a 2012 outside audit that uncovered deficiencies in NRCS’s financial statements. Miller said the administration requested $4 billion for NRCS conservation programs, including about $3 billion in mandatory funding and $808 million in discretionary funding. Weller said NRCS enacted a hiring freeze this year – expecting to save $33 million in fiscal 2013 – and saved $22.5 million in travel expenses by increasing the use of video conferencing. The subcommittee Thursday held a hearing on USDA’s domestic and foreign agricultural services. USDA Under Secretary for Farm and Foreign Agricultural Services Michael Scuse, Administrator for the Farm Service Agency Juan Garcia, Administrator for the Foreign Agricultural Service Suzanne Heinen, Administrator for the Risk Management Agency Brandon Willis and USDA Budget Director Young testified. Aderholt acknowledged the success of U.S. trade, citing that U.S. exports have exceeded $478 billion over the last four years and will likely set a new record this year. Aderholt criticized USDA for not introducing new efforts for agriculture exports. USDA’s Economic Research Service estimates that for every $1 billion of agricultural exports, an estimated 6,800 jobs are supported and an additional $1.29 billion in economic activity is generated. The subcommittee Friday held a hearing on the Food and Drug Administration (FDA), with testimony from agency Commissioner Dr. Margaret Hamburg, Deputy Assistant Secretary for Budget of the U.S. Department of Health and Human Services (HHS) Norris Cochran and FDA Chief Financial Officer Jay Tyler. Aderholt criticized FDA of submitting a budget seemingly identical – and two months late – to last year’s that includes the extension funds programs FDA once described as one-time requests. Aderholt said the subcommittee has been presented with conflicting messages regarding FDA’s needs and priorities.

MEMBERS OF EU PARLIAMENT URGE TRADE TALKS WITH U.S.
Members of the European Union parliamentary international trade committee approved a resolution this week endorsing the negotiation mandate for the European Commission to begin talks with the United States on the Transatlantic Trade and Investment Partnership (TTIP), a comprehensive free trade agreement (FTA). The negotiation mandate still needs to be approved by the entire EU Parliament. NPPC supports the negotiation of an FTA with the EU, which represents a tremendous market opportunity for U.S. pork exports, with consumption totaling 20 million metric tons annually – the second largest market in the world for pork consumption. However, numerous barriers prevent the U.S. pork industry from exporting significant amounts of pork to the EU. Current U.S. pork exports to the EU amount to less than a quarter of 1 percent of total EU pork consumption. Market access barriers include multiple quotas with high in-quota duties, a ban on the use of ractopamine, mandatory trichinae mitigation, a prohibition on pathogen-reduction treatments and a costly plant approval system. Through NPPC’s leadership, pork producers rallied other agriculture groups to ensure that agriculture would be part of the TTIP negotiations. The United States and the EU are aiming to begin negotiations at the end of June.

FINAL TWO CANDIDATES SELECTED TO BE NEXT WTO DIRECTOR GENERAL
The field of candidates to be the next Director General of the World Trade Organization (WTO) was narrowed to two individuals this week, diplomat Roberto Carvalho de Azevêdo of Brazil and former Mexican Trade Minister Herminio Blanco. The two candidates have been selected from an original list of nine candidates after months of consultations among all 159 WTO members. Blanco served as chief representative for Mexico during the North American Free Trade Agreement (NAFTA) negotiations, and Azevêdo is the Permanent Representative of Brazil to the WTO. The third and final round of consultations for Director General will begin May 1 and continue through May 7.

NPPC FARM BILL TASK FORCE RECONVENES
With the House and Senate set to mark up a new five-year Farm Bill, the NPPC Farm Bill Task Force today reconvened to discuss provisions for the 2013 Farm Bill. The task force discussed, reaffirmed and made changes to NPPC’s policy requests for a five-year Farm Bill. NPPC will keep members updated on 2013 Farm Bill developments.

WHAT’S AHEAD

ANIMAL AGRICULTURE ALLIANCE SUMMIT NEXT WEEK
The 12th annual Animal Agriculture Alliance Stakeholders Summit, titled Activists at the Door: Protecting Animals, Farms, Food & Consumer Confidence, will be held in Arlington, Va., May 1-2. Click here to register.

SENATE TO BEGIN WORK ON 2013 FARM BILL IN MAY
Senate Majority Leader Harry Reid, D-Nev., this week said the Senate will start work on the 2013 Farm Bill next month. The Senate Agriculture Committee in May is expected to begin marking up a bill for the five-year blueprint for agricultural and food assistance programs. The 2008 Farm Bill expired last year when lawmakers failed to approval a final 2012 Farm Bill. The full Senate and the House Agriculture Committee approved bills, but the full House never took up the committee measure. The 2008 bill was extended for a year. Lawmakers in both houses are expected to look for significant cuts in farm spending.

Follow NPPC on Twitter, view NPPC’s Facebook page, and keep up to date with Hogs on the Hill.

WASHINGTON, D.C., April 26, 2013 – The Food Manufacturers Immigration Coalition today praised the introduction of legislation that would assist in establishing a stable workforce that can help sustain the rural communities where farmers, ranchers and food manufacturers grow and process the nation’s and world’s food supply.

“The introduction of this legislation, and the bill introduced in the Senate, are important first steps in the immigration reform process, which will be a dynamic debate featuring many proposals to reform our flawed immigration process,” the coalition said. “We commend Chairman Goodlatte, and we look forward to working on a comprehensive approach to immigration reform.”

The “Agricultural Guestworker Act,” introduced by House Judiciary Chairman Bob Goodlatte, R-Va., replaces the impractical H-2A program with a sensible guestworker program. The new program, known as H-2C, modernizes and streamlines the agricultural guestworker program and would be administered by the U.S. Department of Agriculture (USDA), the federal agency that understands the unique needs of America’s food manufacturers and farm and ranch operations.

The existing temporary programs for general labor skilled workers are for seasonal labor only. Under the “Agricultural Guestworker Act,” the H-2C program would offer workers and employers more choices in their employment arrangements, creating more flexibility and making it easier for workers to move freely throughout the marketplace to meet demands. This new program will support food manufacturers, cattle operations, dairies, hog and poultry farms and other year-round agricultural employers.

“An effective occupational visa system may be the most important barrier to illegal immigration,” the coalition said. “The right visa system with the right screening tools will in effect be a ‘virtual border.’ The ‘Agricultural Guestworker Act’ and the creation of the H-2C program would serve the diverse interests of the agriculture and food manufacturing industries and will boost the modern agriculture labor market.”

Since not all agriculture jobs are the same or require the same level of skill and experience, the H-2C program would give employers the opportunity to invest their time in training workers for jobs by allowing them an initial stay of 36 months. Workers would then be required to leave for up to three months. After the period of leave, each H-2C visa holder would only be required to leave once every 18 months. This would provide farm labor stability and would encourage illegal farm workers to identify themselves and participate in the H-2C program.

Testimony delivered in February on behalf of the Food Manufacturers Immigration Coalition, which outlines the group’s major themes for immigration reform, is available by clicking here.

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The Food Manufacturers Immigration Coalition is composed of:

California Poultry Federation
Georgia Poultry Federation
National Cattlemen’s Beef Association
National Chicken Council
National Pork Producers Council
National Turkey Federation
North American Meat Association
The Poultry Federation (Arkansas, Missouri, Oklahoma)
U.S. Poultry & Egg Association
Virginia Poultry Federation

NPPC MEETS WITH CANADIAN, MEXICAN PORK PRODUCERS GROUPS
NPPC President Randy Spronk, President-Elect Dr. Howard Hill, Vice President Dr. Ron Prestage, CEO Neil Dierks and Vice President and Counsel for International Affairs Nick Giordano met this week in Canada with staff and board leadership from the Canadian Pork Council and the Mexican pork producer organization, the Confederacion de Porcicultores Mexicanos. The producer groups discussed issues of mutual interest, including the U.S. Country of Origin Labeling law, animal health, food safety, industry economics, animal care and trade.

AGRICULTURE GROUPS HOLDS PRESS CONFERENCE ON JAPAN ENTERING TPP
NPPC, the American Farm Bureau Federation, Cargill Incorporated, the National Milk Producers Federation, the National Potato Council and the U.S. Dairy Export Council Monday held a press conference to discuss the benefits to U.S. agriculture of having Japan in the Trans-Pacific Partnership (TPP) trade negotiations. Increased pork exports resulting from a TPP agreement would create more than 20,000 direct and indirect U.S. pork-related jobs, with the vast majority generated by Japan alone, according to NPPC. The United States last week agreed to accept Japan into the TPP talks. Click here to read more.

GROUP TWISTS DATA TO BLAME ANIMAL AGRICULTURE FOR ANTIBIOTIC RESISTANCE
Just days after the release of a Centers for Disease Control and Prevention (CDC) report showing that medical doctors annually are prescribing enough antibiotics to give them to 80 percent of Americans, the Environmental Working Group (EWG) this week issued its own report, claiming that antibiotics use in food animals is the main cause for people developing antibiotic-resistant diseases. It used selective and incomplete 2011 government data on retail meat samples to blame America’s livestock and poultry farmers for the growing problem of antibiotic-resistant illnesses in people. In fact, pointed out NPPC, 2000 to 2010 data from the federal National Antimicrobial Resistance Monitoring System show a very low incidence of pathogenic bacteria on meat and stable to declining rates of those bacteria that are resistant to antibiotics. The EWG report was released ahead of congressional action on reauthorizing the Animal Drug User Fee Act (ADUFA). Many groups who support legislation to ban the use in food animals of antibiotics that prevent or control diseases and of ones that improve nutritional efficiency are weighing in on ADUFA, urging Congress to limit the animal health products available to livestock producers. But, said NPPC, numerous peer-reviewed risk assessments, including studies from the U.S. Food and Drug Administration, have shown a “negligible” risk to human health of antibiotics use in livestock and poultry production. NPPC wants an ADUFA reauthorization bill that’s free of amendments. The law allows FDA to collect fees from animal health companies for the timely review and approval of products. Click here to read more.

NPPC URGES STANDARDS FOR TRICHINAE THAT INCLUDE SURVEILLANCE
The World Organization for Animal Health (OIE) has established a working group to revise the current OIE Terrestrial Animal Health Code Chapter on Trichinellosis. The working group has developed a final draft standard that will be up for adoption at the OIE General Session in May. The current draft chapter lacks specificity and flexibility, and only several European countries will be able to take advantage of the standard. Ironically, the draft chapter is so vague that it actually encourages countries to continue to impose additional trichinae-related restrictions on pork. This is not a global standard. The U.S. supports guidance provided by the International Commission on Trichinellosis that a population of pigs may be considered to pose negligible risk for Trichinella based on a statistically valid surveillance program and further proved through reported human health data. According to USDA’s Animal Plant and Health Inspection Service, there is a negligible risk of trichinae in U.S. commercial pork, and it does not present a risk to public health. Dr. Ray Gamble, president ex officio of the International Commission on Trichinellosis, found that the odds of trichinae in the U.S. commercial pork supply are 1-in-300 million. As a result of the OIE general session, NPPC is urging OIE officials to make appropriate changes to the chapter on Trichinellosis to ensure flexibility and specificity that allow countries such as the United States to document and defend its negligible risk status.

HOUSE AGRICULTURE COMMITTEE TO BEGIN MARKUP OF FARM BILL IN MAY
House Agriculture Committee Chairman Frank Lucas, R-Okla., Thursday met with Majority Leader Eric Cantor, Va., to discuss the timeline for Farm Bill action. According to committee spokesperson Tamara Hinton, a markup of a new five-year Farm Bill will begin May 15. The House Agriculture Committee last July approved a new Farm Bill, but a floor debate was never scheduled, prompting an extension of the 2008 Farm Bill. NPPC will keep members up-to-date on Farm Bill developments.

HOUSE APPROPRIATIONS SUBCOMMITTEE HOLDS USDA BUDGET HEARINGS
The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies held several hearings last week on USDA’s fiscal 2014 budget requests. Tuesday’s hearing featured testimony from Agriculture Secretary Tom Vilsack. Subcommittee Chairman Robert Aderholt, R-Ala., questioned the administration’s request of $137.5 for USDA, stating that the agency is “missing a major investment opportunity when it comes to agriculture exports.” Click here to read testimony and to watch the hearing. Wednesday the subcommittee held a hearing on the USDA Research, Education, and Economics budget request, with Aderholt calling on USDA to prioritize its research missions and questioning USDA Agriculture Research Service’s $155 million funding request. Click here to read testimonies. The subcommittee Thursday held a hearing on USDA Marketing and Regulatory Programs’ funding request for $925.5 million. Aderholt questioned the proposed decrease in funding for the Animal and Plant Health Inspection Service (APHIS), saying it is “USDA’s leading agency for fighting trade barriers overseas and helping U.S. exporters open new markets.” Click here to read testimonies.

HOUSE COMMITTEE SOLICITS COMMENTS ON AGRICULTURAL IMPACTS OF RFS
The House Committee on Energy and Commerce Thursday issued a notice asking for comments on the agricultural impacts of the Renewable Fuel Standard (RFS). The RFS last year required 13.2 billion gallons of corn-based ethanol to be blended into gasoline; it mandates that 13.9 billion gallons be blended in 2013, an amount that will use about 4.9 billion bushels of corn. NPPC supports reform of the RFS that ensures market stability, feed availability and the long-term sustainability of rural American economies. NPPC will be submitting comments. Click here to read the notice.

WHAT’S AHEAD

ANIMAL AGRICULTURE ALLIANCE SUMMIT TO BE HELD IN MAY
The 12th annual Animal Agriculture Alliance Stakeholders Summit, titled Activists at the Door: Protecting Animals, Farms, Food & Consumer Confidence, will be held in Arlington, Va., May 1-2. Click here to register.

HOUSE APPROPRIATIONS SUBCOMMITTEE TO HOLD BUDGET HEARINGS
The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies next week will hold a series of hearings on the budget requests for USDA’s Rural Development, Natural Resources and Environment and Farm and Foreign Agriculture Services and for the U.S. Food and Drug Administration. Click here for schedules.

Follow NPPC on Twitter, view NPPC’s Facebook page, and keep up to date with Hogs on the Hill.

The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for a combined 30 percent of global GDP. Japan already has free trade agreements with seven of the 11 TPP countries: Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.

The Obama administration on Friday agreed to accept Japan into the trade negotiations.

“Increasing pork exports are important to many more Americans than just pork producers,” said NPPC Vice President and International Trade Counsel Nick Giordano, who pointed out that more than 110,000 U.S. jobs are generated by U.S. pork exports. “We expect having Japan join the TPP will likewise provide increased market opportunities and more jobs for us.”

Japan’s economy is second only to China’s in the region, and it is the fourth largest U.S. agricultural export market overall. U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion. Japan is the top value export market for U.S. pork, accounting for almost $2 billion in 2012 sales.

NPPC was joined at the press conference by the American Farm Bureau Federation, Cargill Incorporated, the National Milk Producers Federation, the National Potato Council and the U.S. Dairy Export Council. Last week, those groups and more than 70 other food and agricultural organizations sent a letter to President Obama, urging the administration to welcome Japan into the TPP talks.

“The addition of Japan to the negotiations will exponentially increase the importance of the TPP to our members and to other sectors of the U.S. economy,” said the groups.

“The bottom line,” NPPC’s Giordano added, “is that TPP with Japan represents the single most important trade negotiation ever for the U.S. pork industry and for most of our colleagues in American agriculture.”

Representatives in attendance included:
David Salmonsen, American Farm Bureau Federation
Dervy Boughner Vorwerk, Cargill
Jaime Castaneda, National Milk Producers Federation/U.S. Dairy Export Council
John Keeling, National Potato Council

Click here to read the letter.

The Environmental Working Group (EWG) is using selective and incomplete 2011 government data on retail meat samples to blame America’s livestock and poultry farmers for the growing problem of antibiotic-resistant illnesses in people.

In fact, 2000 to 2010 data from the federal National Antimicrobial Resistance Monitoring System show a very low incidence of pathogenic bacteria on meat and stable to declining rates of those bacteria that are resistant to antibiotics.

The EWG report was set to be released today ahead of congressional action on reauthorizing the Animal Drug User Fee Act (ADUFA). Many groups who support legislation to ban the use in food animals of antibiotics that prevent or control diseases and of ones that improve nutritional efficiency are weighing in on ADUFA, urging Congress to limit the animal health products available to livestock producers.

But, points out the National Pork Producers Council, numerous peer-reviewed risk assessments, including at least one from the U.S. Food and Drug Administration, have shown a “negligible” risk to human health of antibiotics use in livestock and poultry production.

“Pork producers use antibiotics in targeted ways, under a veterinarian’s supervision, to protect public health and the health of their animals and to produce safe food,” said NPPC President Randy Spronk, a pork producer from Edgerton, Minn. “The data don’t show what groups opposed to modern food-animal production claim; they continue to distort information to fit their agenda to end modern agriculture.”

NPPC wants an ADUFA reauthorization bill that’s free of amendments. The law allows FDA to collect fees from animal health companies for the timely review and approval of products.

“Taking care of our animals to produce safe food starts with Congress passing ADUFA and not letting it die because of controversial amendments,” Spronk said.

PORK PRODUCERS FLY INTO WASHINGTON, MEET WITH MEMBERS OF CONGRESS
NPPC this week held its spring Legislative Action Conference in Washington, D.C. The biannual “fly-in” drew from around the country approximately 100 pork producers, who lobbied their congressional lawmakers on issues of importance to the U.S. pork industry, including EPA’s release of confidential CAFO data, feral swine eradication, the Animal Drug User Fee Act, the 2013 Farm Bill and Japan’s inclusion in the Trans-Pacific Partnership trade talks. NPPC staff presented pork producers with updates on legislative issues. Speakers at the conference included Acting U.S. Trade Representative Demetrios Marantis and USDA Under Secretary for Farm and Foreign Agricultural Services Michael Scuse. USDA Agricultural Marketing Service Deputy Administrator Dr. Craig Morris was presented with NPPC’s “Golden Tractor Award for Meritorious Federal Service” for his strong support of the U.S. pork industry. Producers and Capitol Hill staff and lawmakers also attended NPPC’s Capitol Hill-famous “Rack of Pork” congressional reception.

U.S. WELCOMES JAPAN INTO TPP TRADE TALKS; DEAL WOULD BE GOOD FOR U.S. PORK
The Obama administration today agreed to accept Japan into the Trans-Pacific Partnership (TPP) trade negotiations, a move hailed by NPPC. The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for a combined 30 percent of global GDP. Japan already has free trade agreements with seven of the 11 TPP countries: Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam. Japan’s economy is second only to China’s in the region, and it is the fourth largest U.S. agricultural export market overall. U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion. Japan is the top value export market for U.S. pork, accounting for almost $2 billion in 2012 sales. NPPC said that with Japan in it, TPP is the single most important trade negotiation ever for U.S. pork and many other U.S. agricultural products. Iowa State University economist Dermot Hayes estimates that a South Korea-Colombia-type outcome for U.S. pork in the TPP negotiation – meaning the elimination of all tariff and non-tariff barriers – will create 27,000 direct and indirect pork industry jobs in the United States. The agreement reached between Japan and the United States includes a long phase-out period on auto tariffs and classification of certain industrial products as “sensitive” for the United States and certain agricultural products as “sensitive” for Japan. The White House must give Congress 90-days’ notice that it plans to include Japan in TPP negotiations.

NPPC MEETS WITH JAPANESE AMBASSADOR
NPPC President Randy Spronk, NPPC President-Elect Howard Hill, CEO Neil Dierks and Vice President and Counsel for International Affairs Nick Giordano this week met with Japan Ambassador to the United States Kenichiro Sasae to discuss Japan’s request to join the Trans-Pacific Partnership (TPP) negotiations. NPPC supports the Obama administration’s decision to allow Japan to join TPP negotiations. The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Japan has received approval to join the negotiations from seven other member countries and is awaiting approval from Australia, Canada and New Zealand. Japanese officials hope to join the negotiations as early as July.

NPPC BOARD OF DIRECTORS MEETS WITH AMBASSADORS OF NEW ZEALAND AND VIETNAM
New Zealand Ambassador to the United States Mike Moore hosted a dinner for the NPPC board of directors this week. Vietnam Ambassador to the United States Nguyen Quoc Cuong and Simon Newnham, Minister Counsellor for trade at the Embassy of Australia, were also in attendance. The NPPC board and embassy officials discussed a number of market access issues for pork, the importance of reciprocal market access and Japan’s inclusion in the Trans-Pacific Partnership negotiations. Current TPP member countries account for a combined 30 percent of global gross domestic product (GDP). In 2012, the U.S. exported over $240 million to Vietnam, Australia, and New Zealand. Increased market access to these countries through a comprehensive TPP agreement will increase U.S. exports by hundreds of millions of dollars.

NPPC, NCBA CALL FOR REFORM OF RENEWABLE FUELS STANDARD
Following a Wednesday announcement by House lawmakers that they will introduce legislation to address issues with the federal Renewable Fuels Standard (RFS), the National Cattlemen’s Beef Association and NPPC urged Congress to reform the biofuels mandate. Reps. Bob Goodlatte, R-Va., Jim Costa, D-Calif., Steve Womack, R-Ark., and Peter Welch, D-Vt., at a press conference today said they would introduce the “RFS Reform Act” to “help ease concerns created by the ethanol mandate and protect consumers, energy producers, livestock producers, food manufacturers, retailers and the U.S. economy.” The RFS last year required 13.2 billion gallons of corn-based ethanol to be blended into gasoline; it mandates that 13.9 billion gallons be blended in 2013, an amount that will use about 4.9 billion bushels of corn, or about 40 percent of the nation’s crop. NCBA and NPPC last fall called on lawmakers to make changes to the RFS, following the U.S. Environmental Protection Agency’s refusal to use the safety valve built into it to waive the biofuels mandate in the wake of a severe drought that drastically cut the corn crop. The groups reiterated that request Wednesday. NCBA and NPPC want a reform bill that ensures market stability, feed availability and the long-term sustainability of rural American economies. Click here to read NPPC’s press release.

ANIMAL DRUG USER FEE ACT HEARING HELD
The House Energy and Commerce Subcommittee on Health Tuesday held a hearing on “Reauthorization of Animal Drug User Fees: ADUFA and AGDUFA.” Testimony was presented by U.S. Food and Drug Administration’s Dr. Bernadette Dunham, director of the Center for Veterinary Medicine;, Dr. Richard Carnevale, with the Animal Health Institute; Dr. Mike Apley, with Kansas State University; and Dr. Lance Price, with the George Washington University. NPPC strongly supports reauthorization of ADUFA –without amendments – because it benefits pork producers and animal drug companies. It allows FDA to collect from animal health companies user fees for conducting drug reviews and approvals. The user fees supplement FDA’s funding, allowing pork producers to gain access to important animal health products in a timely manner. Click here to view the hearing and read testimonies.

NPPC WEIGHS IN ON MEAT LABELING REGULATIONS, FEARS TRADE RETALIATION
In comments filed Thursday, NPPC expressed concern that Canada and Mexico could retaliate against the United States because proposed regulations by the U.S. Department of Agriculture may not make a meat labeling law compliant with U.S. international trade obligations. The World Trade Organization last year ruled that the U.S. Country of Origin Labeling (COOL) law violates U.S. trade obligations under the WTO Agreement on Technical Barriers to Trade. Canada and Mexico brought cases on COOL to the WTO in 2011. The international trade body gave the United States until May 23, 2013, to make its meat labeling law compliant with WTO rules. USDA recently issued proposed regulations changing the labeling law, but Canadian officials this week threatened retaliation against U.S. products because they maintain the regulations won’t make COOL comply with WTO rules. NPPC supports an approach to labeling that provides important information to consumers, complies with U.S. international trade obligations and does not undermine U.S. meat supply chains and unnecessarily raise costs. Specifically, NPPC supports an approach that will treat as “U.S. origin” hogs, pork and other meat products that have value added at federally inspected facilities. The requirement that producers gather and maintain information on where livestock was born and raised should be eliminated. At a minimum, said NPPC in its comments – the deadline for which was today – if USDA moves forward with the proposed regulations, it should establish an effective date that is 180 days after the latter of issuance of final regulations, or of a determination by the WTO that the final regulations are consistent with U.S. international trade obligations. Click here to read NPPC’s press release.

USDA PUBLISHES FIRST U.S. PORK EXPORT REPORT
USDA’s Foreign Agriculture Service (FAS) last week published its first report on U.S. pork exports. Within two weeks of export, FAS now will publish weekly reports detailing the destination of U.S. pork products. Under the previous system, reports were issued two months after the export date. Pork producers and those interested in pork trade now will be able to see accurate, timely data on the volume of pork being sent to export markets. During the reauthorization of the Livestock Mandatory Price Reporting law in 2010, NPPC urged that pork export sales be added to the Foreign Agriculture Service export reports to bolster market transparency and better monitor activity on pork exports. Click here to see the most recent report.

NPPC GRASSROOTS PROGRAMS HELD IN WASHINGTON, D.C.
A varied group of 18 individuals in the pork industry participated in the second of three sessions of NPPC’s Pork Leadership Institute (PLI) this week in Washington, D.C. The program provides producers with information about the pork industry’s legislative issues and teaches them how to interact with their lawmakers. Also in town were 12 swine veterinarians for the third and final session of NPPC’s Swine Veterinarian Public Policy Advocates Program. For more information on PLI, contact Bryan Humphreys at 515-278-8012; for information on the swine veterinarians program, contact Dr. Liz Wagstrom at 202-347-3600.

NPPC PARTICIPATES IN MEETING ON VETERINARY OVERSIGHT OF ANTIBIOTICS USE
Dr. Rick Tubbs, a graduate of NPPC’s Swine Veterinarian Public Policy Advocacy Program, this week travelled to Bowling Green, Ky., to participate in a public meeting on veterinary oversight of antibiotics use in livestock production jointly sponsored by the U.S. Food and Drug Administration (FDA) and USDA’s Animal and Plant Health Inspection Service (APHIS). Tubbs provided feedback on challenges faced by the animal agriculture industry and practicing veterinarians to FDA’s implementation of an initiative for the judicious use of medically important antimicrobials in medicated feed or drinking water of food-producing animals. NPPC believes that the loss of and restricted access to products expected with the implementation of FDA’s guidance on the use of antibiotics in livestock and poultry production likely will disproportionately affect small producers, have a negative effect on animal health and increase the cost of producing food while not improving public health.

WHAT’S AHEAD

AGRICULTURE GROUPS TO HOLD PRESS CONFERENCE ON JAPAN ENTERING TPP
NPPC, the American Farm Bureau Federation, Cargill Incorporated, the National Milk Producers Federation, the National Potato Council and the U.S. Dairy Export Council Monday, April 15 will hold a press conference to discuss the benefits to U.S. agriculture of having Japan in the Trans-Pacific Partnership trade negotiations. The United States today agreed to accept Japan into the TPP talks.

ANIMAL AGRICULTURE ALLIANCE SUMMIT TO BE HELD IN MAY
The 12th annual Animal Agriculture Alliance Stakeholders Summit, titled Activists at the Door: Protecting Animals, Farms, Food & Consumer Confidence, will be held in Arlington, Va., May 1-2. Click here to register.

Follow NPPC on Twitter, view NPPC’s Facebook page, and keep up to date with Hogs on the Hill.