Thoughts from the Middle of Nowhere

U.S. Cattlemen To Congress: Fix USDA’s Argentina Mess

USCA (Jan. 7, 2008) - Exactly one year ago this week, the U.S. Department of Agriculture (USDA) issued a little-known and little-publicized proposal to import beef from Argentina, despite that country’s repeated problems with foot and mouth disease (FMD).

The U.S. Cattlemen’s Association (USCA) has made blocking USDA’s action one of its top priorities in 2008.

"FMD is the most contagious and deadly disease facing America’s ranchers today. An outbreak in the United States would devastate the industry virtually overnight," said Doug Zalesky, USDA’s International Trade Committee co-chairman. "It’s a mystery why our government would even consider importing that kind of trouble into America."

Under the USDA proposal, beef and cattle imports would be allowed from areas of Argentina that are considered to be FMD free. USCA says enforcing such a plan would be impossible and shipments containing FMD would likely slip through the cracks.

"FMD is an airborne infection; it’s not going to stop at an imaginary border erected by USDA," Zalesky expalined. "USCA does not believe that Argentina can be trusted to police itself or keep America’s best interests at heart. After all, this is a nation that intentionally defaults on U.S. loans and routinely attacks the U.S. within the World Trade Organization (WTO)."

Even after a year of consideration, no final decision has been published by USDA on its proposal, and USCA is growing impatient with the agency’s inaction.

A resolution passed by the USCA board of directors requests that Congress "take whatever steps necessary to block the proposed rule and to protect the domestic herd from foot and mouth disease."

USCA is also calling on all U.S. livestock producers to get involved to defeat USDA’s proposal. Other groups are following USCA’s lead on the issue. Numerous state cattle organizations have sent letters to Congress and USDA opposing the proposed policy and have passed resolutions against regionalized trade with Argentina.

"We can defeat USDA’s proposal if we unify in this effort," noted Zalesky. "I encourage all cattle producers to become engaged in the process of protecting the U.S. herd."

U.S. Cattlemen’s Association Policy on Regionalized Beef Trade with Argentina:

Whereas:

Foot and Mouth Disease is considered by the American Veterinary Medical Association to be the most economically devastating of all livestock disease.
Whereas: An outbreak of Foot and Mouth Disease in the United States could leave independent cattle producers in financial ruins as entire herds would need to be culled and international markets would be closed indefinitely.

Whereas:

APHIS/USDA has proposed to allow beef and cattle imports from regions of Argentina despite Argentina’s documented Foot and Mouth Disease problems.

Whereas:

Argentina cannot be trusted to keep infected beef from entering the United States and has shown little concern for rural America by defaulting on loans made by U.S. companies and by opposing U.S. farmers in international trade cases.

Whereas:

The U.S. Cattlemen’s Association passed a resolution in July opposing the APHIS/USDA plan because it is unworkable and could create gateways for diseased Brazilian and Argentine beef.

Whereas: APHIS/USDA has yet to rule out regionalized beef trade from Argentina despite an outcry of opposition from America’s ranchers.

Now be it resolved:

The U.S. Cattlemen’s Association calls on APHIS/USDA to immediately reject the pending regionalized beef trade plan and reaffirm its commitment to protect the domestic herd from Foot and Mouth Disease.

Now be it further resolved:

The U.S. Cattlemen’s Association asks the United States Congress to take whatever steps necessary to block the proposed rule and to protect the domestic herd from Foot and Mouth Disease.

Argentine Farmers Give Up Beef Business

Argentines are passionate about their beef — from cattle grazed on the sprawling pampas grasslands, it's a national staple, delivered inexpensively and received with religious fervor at Sunday barbecues nationwide.

But while Argentines are some of the world's top meat-eaters, consuming nearly 154 pounds per capita each year, soaring grain prices and export caps are driving many cattle ranchers to sell their herds and farm more lucrative crops instead. Ranchers have switched from grazing to grain on about 7.4 million acres since 2005 — a 10 percent decline in ranchland, said Pablo Adreani, an economic analyst with AgriPAC Consultores, an agricultural consultancy in Buenos Aires.

First off this story really points out how the Government can screw things up. To maintain high enough internal beef supplies, they don't allow the ranchers to export beef which drives beef prices down for the ranchers. Yeah, it keeps prices down for the consumer but what has happened. Beef herds have shrunk probably raising beef prices again.

Now, as an American beef producer this doesn't hurt my feelings because the competition from South American beef is fierce throughout the world. The less beef that Argentina exports means a better chance for my beef. Also by holding down production I don't have to worry about how much cheap beef the Argentine's can throw onto the American market. Not that that is a problem with the foot and mouth disease problems they have in Argentina. This keeps them from shipping beef to the US since the US won't allow beef in to protect the US beef herd from foot and mouth disease. No complaints here on all of that.

There is a little fly in the ointment here though. According to sources I hear from, the USDA is planning on moving forward with the rule allowing regionalization of foot and mouth disease in Argentina. This would allow beef to be imported into the US from Argentina even though there is outstanding cases of foot and mouth disease in the country by only allowing beef from areas where the disease is not a problem. Why would the USDA be doing this? I thought there job was to protect American farmers, not put them in harm's way. How do you regionalize a highly contagious disease that can be spread on the wind?

I really wonder sometimes what the true goal of the USDA is.

Vision Statement
To be a dynamic organization that is able to enhance
agricultural trade, improve farm economies and quality
of life in rural America, protect the Nation’s food supply,
improve the Nation’s nutrition, and protect and enhance
the Nation’s natural resource base and environment.

They sure don't act like this is their mission statement and goal. They are always trying to cut the American farmers throat, not help them, in my opinion.

Well, time to keep watching them and how their policies affect the business. As we see by Argentina's example, the quickest way to screw up an industry is to let the government "help" them out.

Reasoning draws a conclusion, but does not make the conclusion certain, unless the mind discovers it by the path of experience. Roger Bacon