LETTER FROM THE PRESIDENT

Jerry Bohn, NCBA President

The past year was a trying time for all of us in the cattle industry. Between COVID-19, drought, wildfires and new political headwinds in Washington, a challenge is always lurking behind a corner for our industry. Still, American farmers and ranchers have met every challenge head on while remaining a source of relentless optimism.

For many of us, the Cattle Industry Convention in Nashville, Tenn., was the first big trip away from home in a while. Engaging in conversations with new and old friends reminded me of the uniqueness and resiliency of our industry.

In Nashville, we rolled out cattle industry sustainability goals. Sustainability is Washington’s new focus, and our industry is prepared. For generations, ranchers have used practices that conserve land and water. We already understand how to be good stewards of our ecosystem. With these new sustainability goals, we can finally share that story and ensure those unfamiliar with our industry know how sustainable we truly are.

Farmers and ranchers continually look for ways to improve their cattle and produce higher-quality beef. U.S. cattle producers raise the highest quality cattle and beef in the world and have worked hard for many years to build a brand consumers love and trust. One of NCBA’s top policy priorities is advocating for a business climate that will increase opportunities for producer profitability across the board. As part of that effort, NCBA is calling on the U.S. Department of Agriculture (USDA) to initiate reforms to enable producers to better capitalize on consumer demand by strengthening voluntary labels that educate purchasers and truly differentiate our products in the marketplace.

Just as interest exists among consumers to know more about the food they purchase, U.S. cattle producers increasingly desire to market beef by highlighting information such as origin of the cattle to capture potential market demand driven by state, regional or national sentiment. Unfortunately, USDA’s longstanding “Product of the USA” (POTUSA) label serves as a major disincentive in that regard and is a disservice to American consumers and cattle producers alike. The POTUSA claim implies that a beef product is entirely of U.S. origin, but imported beef only minimally processed or repackaged in a USDA-inspected facility is eligible to be labeled “Product of the USA”. It is not subject to source verification, is not tied to any kind of food safety standard, and is applied by packers and retailers in a manner that does not deliver value back to the cattle producer. NCBA pushed back on this misleading label, and I was encouraged to see USDA announce a top-to-bottom review of the label based on a petition NCBA filed in June. It is our hope that USDA’s review—which should incorporate our petition seeking a change in the label from “product” to something more accurate like “processed”—will pave the way for regulatory updates supporting the use of only voluntary, source-verified origin claims through programs like USDA-AMS’ Process Verified Program. This will allow our producers to truly differentiate their products in the marketplace and capture more of the beef dollar.

NCBA is also taking action to address processing capacity and price discovery issues in the cattle markets. Our Live Cattle Marketing Working Group developed a system of triggers that monitor the amount of cash trade occurring in different regions of the country. At the same time, NCBA is pushing for H-2A visa reforms to alleviate some of the worker shortages at ranches and packing facilities, strengthening the beef supply chain and keeping beef on grocery store shelves.

Even with all the other issues facing our industry, none of it matters if producers are forced out of business because of high taxes. NCBA is leading the fight to protect key tax provisions that facilitate generational transfer of family-owned agricultural businesses, such as farms and ranches. While this is not a new fight for NCBA, we have taken an aggressive approach to this issue since President Biden announced his “American Families Plan” in July. Through the plan, Biden proposed changes to longstanding provisions in the federal tax code, such as stepped-up basis and capital gains tax rates, that serve as tools for families to pass their operation from one generation to the next.

The team at NCBA is committed to working with members of Congress and the Biden administration to help them understand the complex structure of family-owned businesses, specifically farms and ranches. As a result of our grassroots letter campaign, we were able to send nearly 850 letters to elected officials. These letters make a significant impact, because as we have said time and time again — the most powerful advocacy tool in D.C. is the real-life impact stories of farmers and ranchers have.

NCBA is involved in so many policies it is impossible to summarize them all in one letter. Most importantly, you should know that the NCBA team is working tirelessly on your behalf every day. We are in the halls of Congress, the White House and federal agencies sharing your story. I am especially proud that, even as government offices and other industry groups closed their doors at the start of COVID-19, NCBA remained open. Our team was in the office and working on your behalf day-in and day-out. This year especially, I have seen our industry’s no-quit attitude, and that is a message we are proud to share.