NCBA Legislative Update

CATTLE INDUSTRY FIGHTS CONTROVERSIAL SEC CLIMATE RULE

WASHINGTON (June 17, 2022) – Today, the National Cattlemen’s Beef Association (NCBA) filed comments on the U.S. Securities and Exchange Commission’s (SEC) controversial proposed greenhouse gas disclosure rule. The rule would require publicly traded companies to disclose their direct (scope 1), energy/electricity consumption (scope 2), and supply chain emissions (scope 3), creating a burden on cattle producers who supply beef to publicly traded processors, restaurants, and retailers. “With cattle producers facing record inflation, rising input costs and labor shortages, another bureaucratic rule from Washington is a burden we cannot afford,” said NCBA President Don Schiefelbein, a cattle producer from Kimball, Minnesota. “Policymakers should be focused on lowering costs and solving the real problems facing farmers and ranchers, not creating more complex rules that require a team of lawyers to understand.” While the proposed rule is aimed at public companies, mandating the disclosure of scope 3 emissions would place a burden on cattle producers who supply beef to public entities. Additionally, the federal government has acknowledged that accurately calculating emissions on the farm or ranch level is impossible, while industry-wide metrics are already collected by the Environmental Protection Agency (EPA) and U.S. Department of Agriculture (USDA) at a level that should satisfy federal regulators. “Cattle farmers and ranchers are America’s original conservationists. Thanks to decades of innovation and continuous improvement, cattle account for just 2% of overall U.S. greenhouse gas emissions,” said NCBA Environmental Counsel Mary-Thomas Hart. “Cattle producers have a proven track record of sustainable practices and should not be penalized with overreaching rules from an agency with no expertise in agriculture.” In addition to submitting technical comments, individual cattle producers submitted over 6,700 letters to the commissioners of the SEC and members of Congress to inform them of the widespread unintended sequences this rule would have on the cattle and beef industry. NCBA’s technical comments were filed with a coalition of agricultural organizations including the American Farm Bureau Federation, National Pork Producers Council, National Cotton Council, National Corn Growers Association, National Potato Council, American Soybean Association, Agricultural Retailers Association, National Association of Wheat Growers, U.S. Poultry & Egg Association. Numerous NCBA state and breed affiliates submitted comments as well.

BACKGROUND

The SEC is a Wall Street regulator, not an environmental or agricultural agency. This proposed rule goes far outside the SEC’s primary jurisdiction and places an unreasonable burden on private small businesses, farms, and ranches. NCBA has urged the SEC to limit the proposed rule to publicly traded companies—the agency’s actual jurisdiction. For agriculture specifically, this rule would force private entities to release confidential information. Court decisions like American Farm Bureau Federation v. EPA have solidified the right to producer data privacy. Industry-wide emissions data is already collected through the annual EPA Greenhouse Gas Inventory and USDA Life Cycle Assessments, which should satisfy any requirement for supply chain emissions data.

NCBA REJECTS HARMFUL CATTLE MARKET MANDATE BILLS

WASHINGTON (June 22, 2022) – Today, the National Cattlemen’s Beef Association (NCBA) once again voiced opposition to the Cattle Price Transparency Act of 2022 and the Meat and Poultry Special Investigator Act of 2022, which were marked up by the Senate Committee on Agriculture, Nutrition, and Forestry. “The U.S. cattle industry is home to one of the most complex set of markets in the world. Rather than embrace the freedom of that marketing system, Congress is instituting a one-size-fits-all policy that will hurt cattle producers’ livelihoods. Cattle markets are finally returning to normal after pandemic-fueled uncertainty, but these heavy-handed mandates will stifle innovation and limit marketing opportunities,” said NCBA Vice President of Government Affairs Ethan Lane. “Cattlemen and women deserve the freedom to market their cattle in whatever way they want.” The Cattle Price Transparency Act of 2022 would subject every cattle producer in the country to a business-altering government mandate. The bill would severely restrict the use of Alternative Marketing Arrangements (AMAs), which provide stability to producers and allow them to invest in creating higher-quality and specialty products that command a premium. The bill also fails to consider the unique ways producers raise cattle in different regions of the country. Although the bill was introduced when cattle markets experienced uncertainty because of the COVID-19 pandemic, market conditions have improved on their own without heavy-handed government intervention. This legislation would jeopardize that recovery. The Meat and Poultry Special Investigator Act of 2022 would create a new special investigator position at the U.S. Department of Agriculture (USDA) to investigate “competition matters.” Unfortunately, the legislation is duplicative and only creates additional bureaucracy for investigating anticompetitive behavior. “NCBA supports oversight of the market, but creating a duplicative, bureaucratic new special investigator role is the wrong approach. Congress should be focused on the issues that are hurting producer profitability now—rising food, fuel, and feed prices,” said Lane. NCBA’s grassroots policy, which is voted on by individual cattle producers, opposes both bills.

SUPREME COURT REJECTS R-CALF LAWSUIT, ENDING EFFORT AGAINST BEEF CHECKOFF

DENVER – Today, the Supreme Court of the United States denied R-CALF’s lawsuit against 13 state beef councils and the Beef Checkoff. This ruling effectively ends yet another R-CALF attack on the Beef Checkoff and prevents the activist attorneys at Public Justice, from further diverting Checkoff and beef industry resources. “For too long we have allowed R-CALF and their attorneys to divide our industry and draw attention away from the important job of beef promotion and research. The Supreme Court’s rejection of R-CALF’s petition confirms the Beef Checkoff, and its overseers, are adhering to the letter and spirit of the laws that protect and guide producer investments in the program,” said NCBA CEO Colin Woodall.

NCBA intervened in the lawsuit in its early days to help defend state beef councils from R-CALF and their activist attorneys, who falsely attacked state beef councils and the cattlemen and women who volunteer their time to support the industry as Checkoff leaders. Multiple court decisions rejected these allegations and reaffirmed the work and direction of the Beef Checkoff and those who guide it. “R-CALF has repeatedly attacked the Beef Checkoff, engaging lawyers who are closely aligned with extremist animal rights groups like PETA and others, in an attempt to further their efforts,” said Woodall. “It’s time that our industry stands up to R-CALF and insists that they end these attacks on the Beef Checkoff and the volunteer cattle producers who direct it.”

The National Cattlemen’s Beef Association (NCBA) has represented America’s cattle producers since 1898, preserving the heritage and strength of the industry through education and public policy. As the largest association of cattle producers, NCBA works to create new markets and increase demand for beef. Efforts are made possible through membership contributions. To join, contact NCBA at 1-866-BEEF-USA or membership@beef.org.