N A T I O N A L C AT T L E M E N The trusted leader and definitive voice of the beef industry January 2019 • Vol. 35, No. 4 • NCBA.org
Water, and Sage Grouse, and Wolves – Oh My!
New Year, New Congress
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Welcome to 2019. And welcome to at least two years of a divided government. By now the dust has settled from the midterm elections, and new Members of Congress are situated in to their offices on Capitol Hill. What will it all mean for cattle producers? Let’s start with the big picture. President Trump’s Administration will be buoyed by Senate Republicans, who remain firmly in control of the upper chamber. However, the Democratic gains in the House of Representatives gave the Democrats command over the lower chamber. They are likely to use their new-found authority to take the Trump Administration to task. Expect oversight hearings, subpoenas, and lots of public drama. No cabinet secretary is safe. Still, not all hope is lost for the 116th Congress.
A “divided government” where no single party controls the White House, Senate, and House of Representatives is a common occurrence. Since 1981, a divided government has occurred following 14 of 19 Congressional elections. Plenty of opportunities to advance the public policy priorities of cattle producers will present themselves, and NCBA stands ready to capitalize. “NCBA is fully committed to working across both sides of the aisle to deliver policy wins for cattle producers,” said Allison Rivera, NCBA executive director of government affairs. “We look forward to working with House and Senate leaders to fix overly-restrictive Hours of Service rules for livestock haulers – an issue that resonates with Republicans and Democrats who understand these rules were not written with the livestock industry in mind.” NCBA’s Political Action Committee (PAC) demonstrates a firm commitment to supporting friends of the cattle business, no matter what party they happen to belong to. The PAC supported a number of successful Democratic candidates, including Sanford Bishop (GA), David Scott (GA), Darin Soto (FL), Jim Costa (CA), Kurt Schrader (OR), Henry Cuellar (TX), Filmon Vela (TX), and Sylvia Garcia (TX). When it comes to specific issues, international trade looks set to become a major focal point early on. Late last year the Trump Administration concluded negotiations on a trade agreement designed to replace the North American Free Trade Agreement. The new deal, called the U.S.-Mexico-Canada Agreement (USMCA), has been signed by all three countries but must be approved by Congress before it can be implemented. Democrats have expressed some reservations about the deal, but President Trump is itching to move forward.
While much of the country was getting into the holiday spirit, a few radical environmental groups – and one Member of Congress – seemed determined to take a more combative approach. Their target: Policy actions designed to improve conservation outcomes and reduce the regulatory burden on rural communities. Stinging criticism from livestock industry opponents is nothing new, but the vicious attacks on seemingly common-sense proposals signals that cattle producers are in for a long 2019. For starters, take the reaction to the new water rule proposed by the Trump Administration. The rule is designed to replace the disastrous 2015 Waters of the United States (WOTUS) rule, which vastly expanded federal authority and even brought irregular streams and ditches under federal jurisdiction. Days before the new water rule proposal was announced, a one-page talking points document drafted by the Environmental Protection Agency was leaked. A reporter wrote up a story summarizing the points but never published the leaked document. Still, the response from environmental groups was swift and conclusive. “Critics assail leaked details of scaled-back rule,” read the headline. Never mind that none of the groups had actually seen the document for themselves. Never mind that one-page document could hardly capture the nuances of a complex regulatory rule. The environmental groups prejudged the outcome and never looked back. NCBA refrained from commenting until the announcement was official. Once the details checked out, NCBA President Kevin Kester joined the rest of the agriculture community in welcoming the new rule. “The proposed water rule provides safeguards to keep our waters clean and clear rules for landowners to follow,” he said. “We look forward to engaging with the Environmental Protection Agency and Army Corps of Engineers to finalize the rule.” NCBA Vice President Marty Smith also praised the rule, making a live appearance on RFD-TV’s Market Day Report to discuss the details. Separately, the Trump Administration announced another improvement on a flawed environmental regulation from 2015. Like the new water rule, the release of updates to the 2015 Sage Grouse plan amendments engendered hysteria from radical environmental groups. But their rhetoric simply does not match reality.
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MARKET SNAPSHOT WEEK ENDING 12/14/2018 (prices vs. year ago)
IN THIS ISSUE Leadership Comments 2 Governance 4
SOUTH CENTRAL 500-600 LB. STEERS $154.99
LIVE FED STEERS $116.41
CHOICE BOXED BEEF $213.43
OMAHA CASH CORN $3.60
Federation News
6
7.4%
.9%
3.2%
11.8%
Market Matters
8
$167.52
$117.46
$206.87
$3.22