Archive for August 24th, 2009

NAIS Will Render Average-Sized Producers Uncompetitive, Will Lead to More Concentration, Vertical Integration

Billings, Mont. – As promised, R-CALF USA has launched a 12-day blitz of news releases to explain in detail many of the reasons our members oppose the U.S. Department of Agriculture’s (USDA’s) National Animal Identification System (NAIS).

With this effort, R-CALF USA hopes to bring to light many of the dangerous aspects associated with NAIS with regard to invasion-of-privacy issues, the likely acceleration of the ongoing exodus of U.S. cattle producers from the industry, as well as other concerns we believe USDA has not even begun to ponder. Click here to view the entire 13-pages of formal comments R-CALF USA submitted to the agency on Aug. 3, 2009, to, yet again, oppose the implementation of NAIS.

In the third installment of our NAIS Opposition Blitz, we explore how NAIS will render average-sized and mid-sized cattle producers uncompetitive vis-à-vis large-scale producers and will accelerate the ongoing exodus of U.S. cattle producers, leading to more concentration and vertical integration:

* Two Kansas State University cost studies show that costs associated with NAIS are substantially lower for large-scale operations when compared to small- and mid-sized operations. For example, a spreadsheet published by KSU shows that costs of electronic identification for a herd size of 100 head (at a cost per head of $15.90) are $9.76 less when the herd size increases to 400 head.[1] Another KSU study also shows that costs per animal become substantially lower as operation size becomes larger – the average-sized U.S. cattle operation (with fewer than 50 head[2]) would experience costs that are $2.12 higher per animal than would a producer with more than 50 head but fewer than 100 head.[3] Thus, the studies clearly show that NAIS would competitively disadvantage small- to mid-sized producers when compared to larger producers. This cost disparity will accelerate the ongoing concentration and vertical integration of the U.S. cattle industry.

NAIS cost studies fail to include costs of upgrading facilities in order to accommodate scanner reading protocols. Many cattle operations use only minimal cattle-handling equipment (for example: horses, trailers, portable panels and portable chutes) to move cattle long distances and this equipment is not suitable for affixing eartags or ensuring accurate scanner readings. As a result, more elaborate and costly facilities would be required to meet NAIS standards and these upgrades would further create economic burdens on U.S. cattle producers.

The cost/benefit analysis completed by Kansas State University (KSU) is fundamentally flawed: 1) There are approx. 95 million cattle in the U.S. cattle herd. The KSU study found that the average eartag price was $2.25. Thus, the study’s conclusion that the total cost of NAIS would be $209 million would not even cover the price of one eartag for each head of cattle in the U.S. herd, let alone labor, equipment, and reading costs that would apply to each animal. 2) From 2000 through 2003, the U.S. slaughtered approx. 36 million head of fed cattle and cows and bulls each year.[4] Using the study’s average NAIS cost per animal of $5.97 per head, the study’s conclusion that the total cost of NAIS would be only $209 million per year would not even cover the cost of identifying each animal actually slaughtered during each of the four years in the middle of our current liquidation phase of the U.S. cattle cycle, which cost would be $219 million. Thus, the study erroneously assumes our U.S. cattle cycle is nonexistent and our herd size is static.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516.



[1] See RFID Cost.xls – A Spreadsheet to Estimate the Economic Cost of a Radio Frequency Identification (RFID) System, Version 7.6.06, available at www.agmanager.info/livestock/budgets/production/beef/RFID%20costs.xls.

[2] The average-sized U.S. cattle operation is 44 head, calculated by dividing the number of U.S. cows and heifers that have calved in 2008 (41,692,000) by the number of U.S. operations with cattle and calves in 2008 (956,500).

[3] See Table 2. Summary of RFID Costs for Beef Cow/Calf Operations by Size of Operation, Overview Report of the Benefit-Cost Analysis of the National Animal Identification System, USDA APHIS, April 2009, at 18.

[4] See Livestock Slaughter Annual Summary for years 2001-2003, USDA NASS, available at http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1097.

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Who speaks for family farmers?

Who speaks for family farmers?

By: Rhonda Perry, Minuteman Media, Worthington Daily Globe

ARMSTRONG, Mo. — My family has farmed in Missouri for over a century and I currently raise livestock and grain on 800 acres in Howard County, Mo. But folks like me always seem to get drowned out in Washington, D.C, by commodity groups purporting to represent my interests. The American Farm Bureau bills itself as the “voice of agriculture.” A seemingly innocent-sounding group called the National Milk Producers Federation (NMPF) calls itself “the only nationwide expression of dairy farmers.” These organizations spend millions in lobbying and donating money to politicians. In the halls of Congress, in the federal agencies, and in presidential administrations, representatives from these groups exert undue control over the agenda for food and agriculture policy.

It is nearly impossible to convince D.C. politicians that these corporate interests do not represent the interests of family farmers. Until now. The United States Department of Agriculture (USDA) recently concluded 13 listening sessions to hear farmers’ input on the despised National Animal Identification System (NAIS) that calls for us to electronically tag and track the movements of every one of our animals. Factory farms, however, are allowed one group lot ID for their thousands of animals. Over $130 million of taxpayer money has been wasted on this radical, corporate-driven bureaucracy that originated from the National Institute for Animal Agriculture, a group comprised of — surprise, surprise — the Farm Bureau, National Pork Producers Council (NPPC), NMPF and agribusinesses such as Cargill. Only a gigantic outcry from farmers has stopped NAIS from becoming mandatory by its proposed 2009 date.

At listening sessions across the country, including one in Missouri attended by over 300 people, up to 95 percent of producers were united in their adamant disapproval of NAIS and how it would do nothing to address animal disease or food safety. The few folks in the crowd willing to go on record for their support of NAIS were uniformly from the likes of NPPC, Farm Bureau and NMPF allies. That should tell the media, Congress, USDA and the Obama administration to quit listening to these interest groups and quit thinking of them as representing family farmers!

Why do we have such a broken food system that allows for deadly E. coli in our meat and now peanut butter? Why have factory farms been allowed to proliferate like viruses in rural America? Because these interest groups have been allowed to use their false facade representing America’s “farmers” to con politicians into buying their disastrous policies, while simultaneously conning the media into thinking that they speak on behalf of those farmers. Now they have conned USDA, President Obama and members of Congress into thinking we need a mandatory NAIS program.

These same corporate farm groups have opposed more testing for mad cow disease, opposed increased inspection of meat processing plants where most food borne illnesses start and continue to thwart any efforts to address antibiotic abuses on factory farms. Meanwhile they advocate for free trade agreements that bring in foreign animals from countries with known disease outbreaks like foot-and-mouth and BSE. Thus, the folks most responsible for breeding animal disease are now trying to shift responsibility from corporate meatpackers and factory farms onto the backs of America’s independent family farmers through NAIS.

Since 2006, NPPC has donated over $350,000 to federal politicians and spent over $3 million in lobbying. NMPF has spent $2.2 million in lobbying, including for a mandatory NAIS, even while dairy farmers suffer their worst crisis since the Great Depression.

We are thankful that USDA took the time to listen to the voices of family farmers instead of relying on the same old corporate interest groups. Given the shocking chasm between our corporate farm groups and real family farmers, NAIS is only the tip of the iceberg when it comes to bad farm policy that emanates from of Washington. So the next time you hear that “farm groups” oppose cracking down on antibiotics, or that they want to water down environmental regulations over factory farms or that we need another free trade agreement the likes of the one with Colombia, just remember whose interests these folks really represent–and it’s not rural America.

Rhonda Perry is a livestock and grain farmer from Howard County, Mo. She serves as Program Director of the Missouri Rural Crisis Center, a member of the National Family Farm Coalition.

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