{"id":165,"date":"2009-10-30T00:33:51","date_gmt":"2009-10-30T04:33:51","guid":{"rendered":"http:\/\/amishinternet.com\/?p=165"},"modified":"2023-02-08T14:59:00","modified_gmt":"2023-02-08T18:59:00","slug":"the-money-behind-the-national-animal-id-system","status":"publish","type":"post","link":"http:\/\/amishinternet.com\/?p=165","title":{"rendered":"The Money behind the National Animal ID System"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAIS_Follow_The_Money_Header.jpg\" alt=\"Follow The Money\" width=\"700\" height=\"251\" \/><\/p>\n<div class=\"maincontent\">\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISFollowMoney_2.5.gif\" alt=\"There are around 2.5 Billion Farm Animals that the USDA wants to track under the proposed National Animal Identification System. If and when this tracking system is put into place, it will mean two things:\" width=\"700\" height=\"104\" \/><\/p>\n<p>1. A small number of private interests will make out big financially by supplying hundreds of millions of dollars worth of tracking devices and software to livestock producers.<\/p>\n<p>2. Small producers, unable to cope with the costly technology demands associated with animal tracking, could be forced to give up their farms and ranches \u2014 allowing major players like Cargill, Smithfield and Tyson to exercise an even greater control of meat production.<span class=\"biblio\">1<\/span>,<span class=\"biblio\">2<\/span><\/p>\n<p>For the time being, the animal tracking program is voluntary, though the USDA has invested more than $125 million in the last five years<span class=\"biblio\">3<\/span> trying to create the support and infrastructure needed to advance a mandatory NAIS for livestock. In particular, tracking cattle is a high priority for the agency because it is seen as a way to restore international confidence in American beef after the discovery of mad cow disease devastated the industry in 2003. Much of this money has gone toward registering farm premises where livestock are found throughout the United States into a central database, the first step in creating a national animal-tracking program.<\/p>\n<p>In order to advance the NAIS agenda, the USDA agreed in 2005 to begin privatizing parts of the system,<span class=\"biblio\">4<\/span> creating another incentive for powerful industry trade groups to support the program. By providing the hardware, software and tracking technology, private industry groups and technology companies have already been able to extract millions of dollars from the proposed NAIS.<\/p>\n<p>NAIS is the product of more than a decade of planning \u2014 mostly by the private sector \u2014 but only really gained momentum as an animal health measure seven years ago in response to the discovery of mad cow disease in the United States. NAIS continues to be as much the product of private industry and the non-profit trade groups that represent it as it is the USDA. Like wolves in sheep\u2019s clothing, these trade organizations loudly promote an animal-tracking system as necessary for the meat industry while positioning themselves or their industry partners to possibly reap the windfall revenues that a mandatory animal-tracking program would generate.<\/p>\n<h2>The Costs<\/h2>\n<p>In April 2009, the USDA released a cost-benefit analysis of NAIS which estimates that a full-traceability animaltracking system will cost the livestock industry alone $209 million annually.<span class=\"biblio\">5<\/span> The most costly part of NAIS involves Radio Frequency Identification (RFID), which could cost about $100 million for cattle alone.<span class=\"biblio\">6<\/span> The preferred method of tagging and tracing cattle, RFID uses tiny radio transmitters about the size of a grain of rice that are either implanted into an animal or into an ear tag that the animal wears. In theory, this technology gives livestock producers and slaughterhouses the ability to quickly \u201cscan\u201d each animal and determine where it came from, which could help trace diseases in the event of an outbreak.<\/p>\n<p>RFID technology is extremely costly for ranchers, but extremely lucrative for private technology providers. Currently only nine RFID manufacturers are recognized by the USDA as approved providers of the devices,<span class=\"biblio\">7<\/span> and a handful seem to have emerged as the dominant competitors, vying for the tens of millions of dollars in revenue<span class=\"biblio\">8<\/span> that a mandatory NAIS would generate each year.<\/p>\n<p>These RFID providers will likely generate revenue disproportionately from small livestock producers. USDA estimates show that among livestock producers that don\u2019t currently tag their beef cattle, the smallest producers \u2014 those with fewer than 50 head of cattle \u2014 would incur the highest RFID costs as a group, amounting to almost $35 million dollars a year.<span class=\"biblio\">9<\/span> This is approximately how much all other beef cattle producers combined would pay.<\/p>\n<p>For small livestock producers working on tight profit margins, these costs could be devastating. Larger producers have deep pockets and the advantage of economies of scale, allowing them to more easily adjust to the technological requirements of NAIS, a point that the USDA readily acknowledges.<span class=\"biblio\">10<\/span> The USDA estimates that the RFID costs per head of cattle are somewhere between 30 and 200 percent greater for the smallest producers than the largest producers under a full-traceability NAIS,<span class=\"biblio\">11<\/span> in part because big producers can buy larger quantities of RFID tags at a discount. Some estimates of the high costs small producers will pay are much higher than the USDA\u2019s,<span class=\"biblio\">12<\/span> with numbers surpassing $40 a head (about five times greater than the USDA estimate) when costs of RFID readers are included.<span class=\"biblio\">13 <\/span><\/p>\n<p>The costs that livestock producers could incur under NAIS include: buying an RFID tag for each animal, buying an RFID applicator, paying someone to implant the device, buying an RFID reader, buying a computer and paying monthly internet services, creating the necessary infrastructure on a farm to support animal tracking, and providing the time and labor needed to register individual animals in an Animal Tracking Database \u2014 which is also a privatized venture, mostly controlled by a small number of corporations and private interests.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyConsumersPay.jpg\" alt=\"Consumers will have to pay \" hspace=\"5\" vspace=\"5\" width=\"300\" height=\"281\" align=\"right\" \/>The costs and time needed to comply with program requirements would give the largest operations a competitive advantage. This further promotes an unhealthy control of the meat market among a handful of corporations. Ironically, large-scale operators use confinement methods and feeding practices that are viewed by many as increasing the risk of animal diseases that NAIS would track.<\/p>\n<h2>The Players<\/h2>\n<p>Consider the Kansas Farm Bureau, a non-profit group that, according to its Web site, \u201crepresents grassroots agriculture\u201d and \u201csupports farm families who earn their living in a changing industry.\u201d<span class=\"biblio\">14<\/span><\/p>\n<p>In carrying out these missions, the bureau has also managed to position itself to be a major beneficiary of the tech-fest that would unfold under mandatory NAIS. The Kansas Farm Bureau aggressively promotes its Beef Verification Solution, an animal-tracking program developed though its Agriculture Solutions division, in conjunction with AgInfoLink,<span class=\"biblio\">15<\/span> a private tech company16 that could be one of the leading beneficiaries of a mandatory NAIS. The Beef Verification Solution, according to the Web site, is the \u201cone-stop shop for ISO compliant, USDA approved radio frequency identification (RFID) ear tags, RFID readers and data collection software.\u201d<span class=\"biblio\">17<\/span><\/p>\n<p>Essentially, by contracting with private tech companies like AgInfoLink and using its members as its customer base, the Kansas Farm Bureau could generate large revenues for both itself and its private-sector partners.<\/p>\n<p>And measured by the support it has received so far, the Kansas Farm Bureau seems to have done pretty well for itself. The Beef Verification Solution has received the endorsement of numerous trade groups and fellow farm bureaus in big cattle-producing states like Colorado,<span class=\"biblio\">18<\/span> Oklahoma<span class=\"biblio\">19<\/span> and Nebraska.<span class=\"biblio\">20<\/span> The American Farm Bureau, the parent organization to all the state affiliates,<span class=\"biblio\">21<\/span> has endorsed the program, too.<span class=\"biblio\">22<\/span> By 2007, the Kansas Farm Bureau was boasting that the Beef Verification Solution was primed to capitalize on 24 percent of the cattle market.<span class=\"biblio\">23<\/span><\/p>\n<p>In marketing the Beef Verification Solution, the Kansas Farm Bureau and its partners encourage cattle producers to use other services provided by AgInfoLink,<span class=\"biblio\">24<\/span> one of six companies offering an animal-tracking database that the USDA considers fully functioning and capable of providing traceability.<span class=\"biblio\">25<\/span> In addition to promoting AgInfoLink\u2019s CattleCards and BeefLink software,<span class=\"biblio\">26<\/span> the Kansas Farm Bureau apparently also promotes business for the providers of RFID hardware, including the company Allflex.<span class=\"biblio\">27<\/span><\/p>\n<h2>Illinois Beef Association (IBA)<\/h2>\n<p>In addition to its partnerships with the farm bureaus, AgInfoLink has also partnered with the Illinois Beef Association (IBA),<span class=\"biblio\">28<\/span> a state-level affiliate of the powerful trade group the National Cattlemen\u2019s Beef Association (NCBA),<span class=\"biblio\">29<\/span> whose industry partners include corporate meatpackers like Cargill, Smithfield and Tyson.<span class=\"biblio\">30<\/span><\/p>\n<p>From October 2006 to September 2007, during which time the IBA began endorsing AgInfoLink, the organization received $1.2 million from the beef checkoff,<span class=\"biblio\">31<\/span> a government- initiated program that requires every cattle farmer in America to pay one dollar for every slaughtered head of cattle, supposedly to promote beef.<span class=\"biblio\">32<\/span> Most of that money, which amounts to around $45 million a year,<span class=\"biblio\">33<\/span> ends up in the hands of the NCBA<span class=\"biblio\">34<\/span> and its affiliates like the IBA.<span class=\"biblio\">35<\/span> It needs to be examined whether the NCBA is using this money in its efforts to promote an animal identification program, which would stand in contrast to its mission of supporting the interests of ranchers and cattle producers, many of whom may not support animal tracking.<\/p>\n<h2>National Cattlemen\u2019s Beef\t\tAssociation (NCBA)<\/h2>\n<p>The NCBA, which collects around $45 million dollars a year in beef checkoff money,<span class=\"biblio\">36<\/span> has worked as a major stakeholder in the development of NAIS, hoping that an animal-tracking program would have been in place by 2007.<span class=\"biblio\">37<\/span> In that year, an NCBA affiliate called the National Cattlemen\u2019s Foundation<span class=\"biblio\">38<\/span> entered into a cooperative agreement with the USDA<span class=\"biblio\">39 <\/span>to help register farm premises \u2014 part of a push to expand the NAIS database. Shortly before cooperative agreement was announced, the National Cattlemen\u2019s Foundation received more than $2 million from the USDA.<span class=\"biblio\">40<\/span><\/p>\n<p>Back in 2004, the NCBA began working with private technology groups that would benefit financially from NAIS. Called the Beef Information Exchange and apparently comprised of a group of animal-tracking service providers, the group was promoted by one of NCBA\u2019s members, Mark Armentrout, who was also the chief operating officer of AgInfoLink Global, Inc.<span class=\"biblio\">41<\/span><\/p>\n<p>Additionally, the NCBA sits with the American Farm Bureau on the board the United States Animal Identification Organization (USAIO),<span class=\"biblio\">42,43<\/span> which has its own NAIScompliant Animal Tracking Database,<span class=\"biblio\">44<\/span> a potentially big money-maker should NAIS become mandatory.<\/p>\n<p>Most of the big names in animal identification have aligned themselves with NCBA, sometimes making cash donations to the organization. Both Allflex USA and Schering-Plough Animal Health (Schering-Plough owns Global Animal Management), two approved technology providers for NAIS, donated $100,000 to the NCBA to become \u201cAllied Industry Partner\u201d Gold Level Sponsors.<span class=\"biblio\">45<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_3.jpg\" alt=\"The Sunset of Family Farming as we know it?\" width=\"600\" height=\"258\" \/><\/p>\n<p>Other technology providers like Destron-Fearing, Y-Tex and AgInfoLink count themselves as allied Industry Council members or associates.<span class=\"biblio\">46<\/span><\/p>\n<h2>United States Animal Identification\t\tOrganization (USAIO)<\/h2>\n<p>Established to \u201coversee a database solution for tracking animals\u201d<span class=\"biblio\">47<\/span> and built with members from some of the most powerful farm groups, the USAIO seems to have an interest in controlling a database for tracking animals \u2014 and perhaps benefiting from the huge revenues that would come with it.<\/p>\n<p>Like the National Cattlemen\u2019s Foundation, the USAIO entered into a cooperative agreement with the USDA to register farm premises. Shortly before the agreement was announced, the USDA awarded the USAIO $1.5 million in taxpayer money.<span class=\"biblio\">48<\/span> The group planned to register as many as 100,000 new farm premises under the agreement, the first step toward initiating a fully functional National Animal Identification System.<span class=\"biblio\">49<\/span><\/p>\n<p>The USDA has put $9 million toward these cooperative agreements,<span class=\"biblio\">50<\/span> with non-profit organizations<span class=\"biblio\">51<\/span>,<span class=\"biblio\">52<\/span> that frequently have close ties to industry. As one USDA official said about these organizations, \u201cIn many cases, these groups don\u2019t just represent industry, they are industry\u2026\u201d<span class=\"biblio\">53<\/span><\/p>\n<p>Big players like Microsoft may also leverage their financial power and political connections if NAIS becomes a mandatory program. In 2006, the USAIO teamed up with Microsoft and a company called Viatrace to offer what they called an \u201cindustry-led, multispecies animal tracking database to record movements of livestock from point of origin to processing.\u201d<span class=\"biblio\">54<\/span><\/p>\n<p>One report indicates that USAIO disbanded in 2007,<span class=\"biblio\">55<\/span> but the group\u2019s animal-tracking database remains on the current USDA list of approved providers.<\/p>\n<h2>Agri Beef<\/h2>\n<p>Agri Beef, a vertically integrated cattle operation<span class=\"biblio\">56<\/span> that regularly ranks as one of the largest in America,<span class=\"biblio\">57,58<\/span> serves as the first point of contact for USAIO\u2019s Animal Tracking Database.<span class=\"biblio\">59<\/span> Though the exact relationship between the USAIO, a non-profit group, and Agri Beef, a for-profit meat producer, is unclear, it seems that their animal-tracking database could generate big money for both the groups.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_5.jpg\" alt=\"Piercing pain in the ear!\" hspace=\"5\" width=\"358\" height=\"412\" align=\"right\" \/>The vice president of Agri Beef is Rick Stott,<span class=\"biblio\">60<\/span> listed as one of a handful of members on the USAIO in 2006.<span class=\"biblio\">61<\/span> He also has served as a member of major industry groups like the NCBA.<span class=\"biblio\">62 <\/span>And Stott worked on a governmentsponsored pilot NAIS project in the Pacific Northwest called the Northwest Pilot Project,<span class=\"biblio\">63<\/span> reportedly worth more than a million dollars.<span class=\"biblio\">64<\/span><\/p>\n<p>As the chairman of the project, which was administered by the Idaho Cattlemen Association<span class=\"biblio\">65<\/span> (affiliated with the NCBA<span class=\"biblio\">66<\/span>), Stott was able to help shape and test a pilot NAIS program based on the proposed national system, which he, his employer and his industry friends could benefit from enormously.<\/p>\n<p>But also disconcerting is that Stott, as the head of a pilot project, apparently was overseeing the collection and processing of private data of dozens of other cattle producers participating in the program<span class=\"biblio\">67<\/span> \u2014 essentially giving him access to proprietary information about his competitors. Big agribusiness groups have pushed the USDA to keep the animal-tracking databases out of government\u2019s hands, claiming that any other arrangement would subject a company\u2019s data to Freedom of Information Act requests or new government regulations.<span class=\"biblio\">68,69<\/span> But keeping the database in the hands of big agribusiness \u2014 whether with private companies or the trade industries that represent big agribusiness \u2014 could force small livestock producers to disclose confidential information about their operations (size of herd, types of animals, etc.) to competitors or the companies they sell to.<\/p>\n<h2>The Money Funnel<\/h2>\n<p>The financial windfall that has fallen from government to the private sector with NAIS has been mighty, and there seems to be no end in sight. The federal government has already spent more than $125 million on the development of NAIS,<span class=\"biblio\">70<\/span> funneling money into private industries and state governments to promote the animaltracking program.<\/p>\n<p>Though NAIS is not yet a mandatory program, many technology providers have already benefitted financially in a big way. Global Animal Management<span class=\"biblio\">71<\/span> and Digital Angel<span class=\"biblio\">72<\/span> have both received more than half a million dollars in government contracts for animal tracking devices, while Allflex has raked in close to $1 million.<span class=\"biblio\">73<\/span><\/p>\n<p>It is important to note that these companies spend money in lobbying efforts around NAIS. The owner of Global Animal Management, a large pharmaceutical corporation called Schering-Plough, plowed millions of dollars a year into lobbying efforts in both 2007 and 2008, some of it on animal identification issues.<span class=\"biblio\">74 <\/span>Between 2004 and 2007, Digital Angel spent more than a million dollars on lobbying efforts<span class=\"biblio\">75<\/span> and Allflex spent an undisclosed amount (under $10,000)<span class=\"biblio\">76<\/span> in 2006, 2007 and 2008.<\/p>\n<p>More disconcerting, it appears that two of these three competitors have partnered, further reducing competition among RFID providers. In 2008, Digital Angel and Global Animal Management (owned by Schering-Plough) announced a deal in which Digital Angel would acquire the rights to Global Animal Management\u2019s RFID tag<span class=\"biblio\">77, 78<\/span> made by Geissler Technology.<span class=\"biblio\">79<\/span><\/p>\n<p>Digital Angel\u2019s acquisition of a competitor\u2019s RFID-technology could prove to be a wise investment. As part of its 2009 budget, the USDA plans to spend millions of dollars on a campaign directed at the cattle industry called \u201c840 Start Up.\u201d<span class=\"biblio\">80<\/span> The \u2018840\u2019 refers to the United States\u2019 three digit country code that precedes animal identification numbers. The number also refers to the RFID devices that can store and transmit the ID numbers. As more and more farm premises are registered in a national database, the next step in NAIS is to outfit all farm animals with these 840 RFID tags.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_7.jpg\" alt=\"This is the meat that you will be paying much more for if this dastardly NAIS program goes into effect!!\" hspace=\"5\" width=\"361\" height=\"296\" align=\"right\" \/>And because RFID devices are sold by privately owned companies, the USDA\u2019s multi-million dollar \u201c840 Start Up\u201d campaign may really serve to funnel millions of dollars into the bank accounts of the few tech companies that have been approved to sell these products.<\/p>\n<p>Whether it is taxpayers or the farmers themselves who would end up paying for the technology under NAIS, it is clear that it will be the tech companies and the trade organizations they align with that will benefit.<\/p>\n<h2>Case Study: Wisconsin<\/h2>\n<p>One of the best places to follow the money behind NAIS is Wisconsin, where the Wisconsin Livestock Identification Consortium (WLIC) and its partner group, the Wisconsin Department of Agriculture Trade and Consumer Protection (WDATCP)<span class=\"biblio\">81<\/span> have managed to secure close to $7 million in federal funding and more than a million dollars in non-federal funding over the last eight years.<span class=\"biblio\">82,83 <\/span>Bolstered by a state law requiring every farm premises to be registered in a central database, these groups are serving as administrators of what amounts to a state-level pilot project for NAIS.<\/p>\n<p>The WLIC, a consortium of private industry stakeholders and government agencies, has used these federal tax dollars to fund groups that could benefit financially from NAIS. By the middle of 2005, WLIC reportedly was funding more than a dozen research projects valued at close to $400,000, with money going to the Wisconsin Pork Association,<span class=\"biblio\">84<\/span> which currently sits on the WLIC board of directors, and Smithfield, a current member of WLIC.<span class=\"biblio\">85<\/span><\/p>\n<p>WLIC was founded in 2002 as \u201ca proactive, livestock industry- driven effort\u201d<span class=\"biblio\">86 <\/span>with a mission \u201cto create a secure, nationally compatible livestock identification system.\u201d<span class=\"biblio\">87<\/span> The members and affiliates of the consortium read like a laundry list of the corporate and private interests that stand to gain from a mandatory NAIS. The big animal-ID tech companies, like AgInfoLink, Digital Angel, Global Animal Management, Y-Tex and Allflex USA, are all represented as members.<span class=\"biblio\">88<\/span><\/p>\n<p>In coalition with the Wisconsin Department of Trade and Consumer Protection, the WLIC has developed its own USDA-compliant Animal Tracking Database \u2014 one of six that the USDA considers fully functional and capable of providing traceability.<span class=\"biblio\">89<\/span><\/p>\n<p>The push for animal tracking in Wisconsin, however, has not gone smoothly. Some farmers continue to resist registering their premises or participating in animal identification \u2014 either because of privacy or property rights concerns, or, in the case of Amish farmers, on religious grounds.<span class=\"biblio\">90<\/span> In 2007, the Wisconsin Department of Agriculture began sending letters to dairy farmers on unregistered premises indicating their milk production licenses could be revoked if they failed to register their farms.<span class=\"biblio\">91 <\/span>This threat, which would have essentially forced non-compliant dairy farmers to go out of business, was eventually softened,<span class=\"biblio\">92<\/span> but to critics of NAIS, it demonstrates the heavy-handed tactics that government agencies  are willing to use to promote the program.<\/p>\n<h2>Case Study: Michigan<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_9.jpg\" alt=\"Government approved cows tagged with fascist RFID tags!\" hspace=\"5\" width=\"356\" height=\"497\" align=\"right\" \/>The state of Michigan has gone a step farther than Wisconsin, issuing a requirement that every head of cattle in the state must now have an RFID tag, essentially creating a state-wide mandatory animal-tracking system.<span class=\"biblio\">93<\/span> Additionally, Michigan is using an animal-tracking system maintained by Holstein Association USA,<span class=\"biblio\">94<\/span> a large nonprofit industry group.<\/p>\n<p>Until late spring 2009, the Michigan Department of Agriculture\u2019s Web site directed farmers needing to purchase the mandatory RFID tags to Holstein Association USA, which sells tags at $2 each,<span class=\"biblio\">95<\/span> plus a $20 fee for the applicator,<span class=\"biblio\">96<\/span> the tool that attaches the ear tag to the cow. (A recent update to the site now includes another tag provider, but the site still emphasizes Holstein Association USA.) In 2007, the state announced that cattle producers had bought more than one million RFID tags.<span class=\"biblio\">97<\/span> That represents at least $2 million in sales, with the proceeds apparently going to Holstein Association USA and the provider of its tags, a company called Allflex.<span class=\"biblio\">98<\/span> In addition to the revenues it may generate from the RFID hardware, Holstein Association USA also serves as the administrator<span class=\"biblio\">99<\/span> of Michigan\u2019s animal-tracking database,<span class=\"biblio\">100<\/span> which could provide another source of revenue. In 2007, Holstein Association USA boasted that its animal-tracking database is one of the world\u2019s largest, with more than 5 million cows registered.<span class=\"biblio\">101<\/span><\/p>\n<p>When the state of Michigan began requiring all livestock owners to register and tag their farm animals and then directing farmers to a single purchasing option for the animal-tracking hardware and software, the state essentially funneled millions of dollars into the Holstein\/ Allflex partnership.<\/p>\n<p>(If you diligently scour the Michigan Department of Agriculture\u2019s Web site, you find that you can also order RFID tags from Northstar Cooperative,<span class=\"biblio\">102 <\/span>which sells tags from Allflex and one other tech company, Digital Angel.<span class=\"biblio\">103<\/span> The USDA has declared nine different RFID-providers as NAIS-compliant, so it is unclear why the state of Michigan would direct its livestock producers to a single provider.<span class=\"biblio\">104<\/span>)<\/p>\n<p>On top of these de facto state subsidies to Holstein Association USA, the federal government has also given the group millions of dollars directly. Holstein Association USA has received more than $3 million in federal funding between 2000 and 2007 to develop animal-tracking programs.<span class=\"biblio\">105<\/span><\/p>\n<h2>NAIS Failure<\/h2>\n<p>If you take a hard look at the money associated with NAIS, you find that the numbers don\u2019t add up to a net benefit for consumers or livestock producers. The government has invested $125 million so far trying to promote NAIS, a program that will cost producers $200 million a year. These huge sums of money guarantee very little in terms of improved food safety because the tracking ends at slaughterhouses and meatpacking plants where most food safety problems occur. The money the USDA is plowing into NAIS would go far further if it were used instead to bolster existing food safety programs and existing animal health programs that aim to prevent disease.<\/p>\n<p>The costs associated with NAIS threaten to increase the price of meat for consumers and to ruin the businesses of countless small producers, who would bear significantly greater financial pressure relative to larger producers adapting to the technological demands of NAIS. Because NAIS favors large-scale industrialized operations, which have deeper pockets to pay for the necessary technology, and puts financial pressure on small producers, a mandatory NAIS could contribute to a further concentration of the livestock industry among a few corporations.<span class=\"biblio\">106<\/span><\/p>\n<p>Indeed, the only sure outcome of NAIS are the windfall rewards, which tech companies and the trade groups that support them are currently jockeying to catch. The consortiums they form with private technology providers and federal and state governments are too cozy and too lucrative to give the system an appearance of anything but a cash cow for corporate beneficiaries. The tens of millions of dollars in taxpayer money that has already poured into NAIS has done more to enrich a handful of money-minded organizations than to ensure food safety, and it is time that the USDA jettison this program.<\/p>\n<hr \/>\n<p>Endnotes<\/p>\n<p>1 Duffey, Patrick. \u201cDismantling of Farmland continues; Smithfield buying pork business.\u201d USDA Rural Development. November 2003.<\/p>\n<p>2 Heffernan, William and Mary Hendrickson. \u201cConcentration of Agricultural Markets.\u201d Department of Rural Sociology, University of Missouri. April 2007. http:\/\/nfu.org\/issues\/economic-policy\/ resources\/heffernan-report<\/p>\n<p>3 USDA. \u201cA business plan to advance animal disease traceability.\u201d September 2008 at 41.<\/p>\n<p>4 USDA. \u201cA business plan to advance animal disease traceability.\u201d September 2008 at 51.<\/p>\n<p>5 USDA. \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at Table 4.10.<\/p>\n<p>6 USDA. \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at Table 4.10.<\/p>\n<p>7 USDA. List of approved NAIS devices. animalid.aphis.usda.gov\/ nais\/naislibrary\/documents\/guidelines\/NAIS_ID_Tag_Web_ Listing.pdf<\/p>\n<p>8 USDA. \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at Table 4.10.<\/p>\n<p>9 USDA. \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at Table 4.2.<\/p>\n<p>10 USDA. See \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at 24, 29, 48.<\/p>\n<p>11 USDA. \u201cBenefit-Cost Analysis of the National Animal Identification System.\u201d January 14, 2009 at Table 4.2.<\/p>\n<p>12 Blasi, Dale et al. \u201cEstimated Costs of RFID (Radio Frequency Identification) Systems.\u201d 2005. http:\/\/beefstockerusa.org\/rfid\/. 2005.<\/p>\n<p>13 Cattlenetwork. \u201cJolley: Five Minutes With Dr. Dale Blasi, Kansas State University.\u201d May 8, 2009. http:\/\/www.cattlenetwork.com\/ content.asp?ContentId=313299<\/p>\n<p>14 Kansas Farm Bureau. \u201cAbout Us.\u201d http:\/\/www.kfb.org\/aboutus\/aboutus.htm<\/p>\n<p>15 Kansas Farm Bureau. \u201cKnowledge IS Power: The Value of Knowing Your Cow Herd From the Inside Out.\u201d December 2008.<\/p>\n<p>16 AgInfoLink \u201cAbout Us\u201d and \u201cLocations.\u201d http:\/\/www.aginfolink.com\/aboutus.html and http:\/\/www.aginfolink.com\/web\/locations\/ locations.htm<\/p>\n<p>17 Agricultural Solutions. \u201cBeef Verification Solution Program Description.\u201d http:\/\/www.agsolusa.com\/bvs\/Aboutus.htm.<\/p>\n<p>18 Kansas Farm Bureau. \u201cKFB\u2019s Beef Verification Solution Partners With Colorado Farm Bureau.\u201d November 16, 2007.<\/p>\n<p>19 Kansas Farm Bureau. \u201cKFB\u2019s Beef Verification Solution Partners With Oklahoma Farm Bureau.\u201d July 24, 2007.<\/p>\n<p>20 Kansas Farm Bureau. \u201cBeef Verification Solution Partners With Nebraska Farm Bureau.\u201d February 1, 2007 Kansas Farm Bureau. \u201cIncreasing the Value of this Year\u2019s Calf Crop.\u201d August 29, 2007.<\/p>\n<p>21 American Farm Bureau. http:\/\/www.fb.org\/index. php?fuseaction=newsroom.statefbs<\/p>\n<p>22 American Farm Bureau. \u201cExcitement Building for New Animal ID System.\u201d January 8, 2006<\/p>\n<p>23 Kansas Farm Bureau. \u201cIncreasing the Value of this Year\u2019s Calf Crop.\u201d August 29, 2007.<\/p>\n<p>24 Kansas Farm Bureau. \u201cIncreasing the Value of this Year\u2019s Calf Crop.\u201d August 29, 2007. 25 USDA. National Animal Identification System Compliant Animal Tracking Databases Status Report.<\/p>\n<p>26 Kansas Farm Bureau. \u201cKnowledge IS Power: The Value of Knowing Your Cow Herd From the Inside Out.\u201d December 2008.<\/p>\n<p>27 Kansas Farm Bureau. \u201cKFB\u2019s Beef Verification Solution Now Offers More Radio Frequency ID Tag Choices.\u201d July 3, 2008.<\/p>\n<p>28 AgInfoLink. \u201cAgInfoLink and Illinois Beef Association Team Up on Animal Information Services; Wellman Joins AgInfoLink Staff.\u201d April 17, 2007<\/p>\n<p>29 National Cattlemen\u2019s Beef Association. \u201cState Affiliates.\u201d http:\/\/www.beefusa.org\/affistateaffiliates.aspx<\/p>\n<p>30 National Cattlemen\u2019s Beef Association. \u201cAllied Industry Partners.\u201d www.beefusa.org\/affialliedindustrypartners.aspx<\/p>\n<p>31 IRS 990 form. 2007 at 8.<\/p>\n<p>32 Cattlemen\u2019s Beef Board. \u201cFinancial &amp; Audit.\u201d http:\/\/www.beefboard.org\/financial\/financial_audit.asp<\/p>\n<p>33 Cattlemen\u2019s Beef Board. \u201cAnnual Report.\u201d 2008 at 13. http:\/\/www.beefboard.org\/library\/annual-reports.asp<\/p>\n<p>34 Cattlemen\u2019s Beef Board. \u201cAnnual Report. 2008 at 14. http:\/\/www.beefboard.org\/library\/annual-reports.asp<\/p>\n<p>35 National Cattlemen\u2019s Beef Association. http:\/\/www.beefusa.org\/affistateaffiliates.aspx<\/p>\n<p>36 Cattlemen\u2019s Beef Board. Annual Report. 2008 at 14. http:\/\/www.beefboard.org\/library\/annual-reports.asp<\/p>\n<p>37 Cattlemen\u2019s Beef Board. Long-Range Plan 2010. 2006. http:\/\/www.beefboard.org\/library\/annual-reports.asp<\/p>\n<p>38 990 IRS Form. 2007.<\/p>\n<p>39 USDA. \u201cNational Cattlemens Foundation Partners With USDA To Register Premises As Part of the National Animal Identification System.\u201d November 30, 2007.<\/p>\n<p>40 Information found at www.usaspending.gov.<\/p>\n<p>41 National Cattlemen\u2019s Beef Association. 2004 Beef Business Bulletin Stories Archive. \u201cIndustry Seeks Private Sector Animal ID System.\u201d 2004.<\/p>\n<p>42 National Cattlemen\u2019s Beef Association. \u201cUSAIO Statement on USDA\u2019s National Animal Identification System Implementation Plan.\u201d April 6, 2006.<\/p>\n<p>43 Nebraska Cattlemen Newsline. \u201cIndependent Consortium Formed To Manage National Animal ID Database.\u201d January 18, 2006.<\/p>\n<p>44 USDA. National Animal Identification System Compliant Animal Tracking Databases Status Report.<\/p>\n<p>45 Information Available online at the National Cattlemen\u2019s Beef Association Web site (www.beefusa.org), under \u201cAllied Industry Partners.\u201d<\/p>\n<p>46 Information Available online at the National Cattlemen\u2019s Beef Association Web site (www.beefusa.org), under \u201cAllied Industry Partners.\u201d<\/p>\n<p>47 American Farm Bureau Federation. \u201cShawcroft Selected to Animal ID Organization.\u201d March 31, 2006.<\/p>\n<p>48 Found at USAspending.gov. The USDA has only ever awarded the USAIO one cooperative agreement, which was worth $1.5 million and which happened in close proximity to the USDA announcement of its NAIS agreement the USAIO.<\/p>\n<p>49 USDA. \u201cU.S. Animal Identification Organization Promotes National Animal Identification System.\u201d July 17, 2007.<\/p>\n<p>50 USDA. \u201cA Business Plan to Advance Animal Disease Traceability.\u201d September 2008 at 44.<\/p>\n<p>51 USDA. \u201cUSDA Announces Plans to Expand National Animal Identification System Cooperative Agreements to Nonprofit Organizations.\u201d Feb. 2, 2007<\/p>\n<p>52 USDA. \u201cA Plan to Advance Animal Disease Traceability.\u201d At 36.<\/p>\n<p>53 Email from Ed Curlett to \u201cCommunity Outreach Partners.\u201d January 16, 2007.<\/p>\n<p>54 Microsoft. \u201cHigh-Tech Animal Database Launched to Help Ensure U.S. Livestock Producers Maintain Competitive Edge in the Global Marketplace.\u201d March 1, 2006<\/p>\n<p>55 Northwest Pilot Project. \u201cFinal Report: Addendum.\u201d June 2007 at 15.<\/p>\n<p>56 Agri Beef. \u201cAgri Beef Co. Partners with Loomis Cattle Company to Develop the Finest Beef in the Northwest.\u201d<\/p>\n<p>57 Peck, Clint. \u201cNorthwest Entrepreneur.\u201d Beef Magazine. Jan 1, 2002.<\/p>\n<p>58 Northwest Farm Credit Services. \u201cIndustry Perspective, Feedlot.\u201d 2007.<\/p>\n<p>59 USDA. National Animal Identification System Compliant Animal Tracking Databases Status Report.<\/p>\n<p>60 Agri Beef Company. Information found at http:\/\/www.Agri Beef.com\/Agri Beefco\/contact.asp<\/p>\n<p>61 National Cattlemen\u2019s Beef Association. \u201cUSAIO Statement on USDA\u2019s National Animal Identification System Implementation Plan.\u201d April 6, 2006.<\/p>\n<p>62 NCBA. \u201cNational ID Program for Livestock on Track, Cattlemen Say.\u201d September 28, 2005.<\/p>\n<p>63 Northwest Pilot Project. \u201cFinal Report.\u201d 2006 at 34. http:\/\/www. northwestpilot.org<\/p>\n<p>64 Evans, Tony. \u201cA Beeper for Every Cow.\u201d Boise Weekly. June 21, 2006.<\/p>\n<p>65 Ibid.<\/p>\n<p>66 Idaho Cattle Association. \u201cAbout ICA.\u201d http:\/\/www.idahocattle. org\/about.dsp<\/p>\n<p>67 Northwest Pilot Project. \u201cFinal Report.\u201d http:\/\/www.northwestpilot. org<\/p>\n<p>68 American Farm Bureau. \u201cStallman says NAIS requires producer involvement.\u201d September 28, 2005.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_12.jpg\" alt=\"Farm families like this will be driven out of existance.\" width=\"694\" height=\"334\" \/><\/p>\n<p>69 Oklahoma Farm Report. \u201cNCBA Continues to Worry About Mandatory Animal ID.\u201d May 8, 2009.<\/p>\n<p>70 USDA. \u201cA business plan to advance animal disease traceability.\u201d September 2008 at 41.<\/p>\n<p>71 Information found at http:\/\/www.usaspending.gov<\/p>\n<p>72 Information found at http:\/\/www.usaspending.gov<\/p>\n<p>73 Information found at http:\/\/www.usaspending.gov<\/p>\n<p>74 Information found at http:\/\/www.opensecrets.org<\/p>\n<p>75 Information found at http:\/\/www.opensecrets.org<\/p>\n<p>76 Information found at http:\/\/www.opensecrets.org<\/p>\n<p>77 Digital Angel. \u201cDigital Angel\u2019s Recent Acquisition of Geissler Technologies Expands Company\u2019s Commercial Relationship with Schering-Plough.\u201d January 18, 2008<\/p>\n<p>78 Global Animal Management. \u201cProgram Compliant Tags.\u201d October 14, 2008. https:\/\/www.mygamonline.com\/trimerit\/images\/ approvedtaglist.pdf<\/p>\n<p>79 USDA. \u201cNational Animal Identification System: Official Animal Identification Number (AIN) Devices.\u201d December 10, 2008.<\/p>\n<p>80 USDA. \u201cA Business Plan to Advance Animal Disease Traceability.\u201d September 2008 at 47.<\/p>\n<p>81 Wisconsin Department of Agriculture Trade and Consumer Protection. www.datcp.state.wi.us\/premises\/index.jsp<\/p>\n<p>82 Data for the Wisconsin Livestock Identification Consortium found at www.usaspending.gov and www.fedspending.org<\/p>\n<p>83 Data for the Wisconsin Department of Agriculture found at www. usaspending.gov and www.fedspending.org<\/p>\n<p>84 National Hog Farmer. Wisconsin Funds ID Projects National Hog Farmer. June 15, 2005<\/p>\n<p>85 \u201cWisconsin Livestock Identification Consortium (WLIC) Board, Members, Ex Officio and Staff.\u201d http:\/\/www.wiid.org.<\/p>\n<p>86 Wisconsin Livestock Identification Consortium (WLIC). \u201cWLIC History.\u201d http:\/\/www.wiid.org.<\/p>\n<p>87 Wisconsin Livestock Identification Consortium (WLIC). \u201cWLIC Philosophy.\u201d http:\/\/www.wiid.org.<\/p>\n<p>88 \u201cWisconsin Livestock Identification Consortium (WLIC) Board, Members, Ex Officio and Staff.\u201d http:\/\/www.wiid.org.<\/p>\n<p>89 USDA. \u201cNational Animal Identification System Compliant Animal Tracking Databases Status Report.\u201d March 19, 2009.<\/p>\n<p>90 Jones, Tim. \u201cUsing modern laws to keep Amish ways.\u201d Chicago Tribune. September 20, 2008.<\/p>\n<p>91 Leaf, Nathan. \u201cLivestock Registration Law Opposed.\u201d Wisconsin State Journal. April 25, 2007.<\/p>\n<p>92 Hundt, Tim. \u201cPremises ID Enforcement Put on Hold.\u201d Vernon County Broadcaster. May 2, 2007.<\/p>\n<p>93 Michigan Department of Agriculture. \u201cQuestions and Answers for Mandatory Cattle Identification Program.\u201d http:\/\/www.michigan. gov\/mda\/0,1607,7-125&#8211;137059&#8211;,00.html<\/p>\n<p>94 Michigan Department of Agriculture. \u201cElectronic Identification Program.\u201d http:\/\/www.michigan.gov\/mda\/0,1607,7-125-48096_ 48149-86002&#8211;,00.html<\/p>\n<p>95 Michigan Department of Agriculture. \u201cOrder Bovine Tags.\u201d http:\/\/www.michigan.gov\/mda\/0,1607,7-125-48096_48149-172 599&#8211;,00.html<\/p>\n<p>96 Personal communication with Holstein Association USA sales associate.<\/p>\n<p>97 State of Michigan. \u201cOne Million Electronic ID tags purchased by Michigan Beef and Dairy Producers.\u201d November 8, 2007. Found at http:\/\/www.michigan.gov<\/p>\n<p>98 Holstein Association USA. http:\/\/www.holsteinusa.com\/animal_ id\/tag_id.html<\/p>\n<p>99 USDA. Food Safety Research Information Office. \u201cAnimal Identification Pilot Project.\u201d Available online at: fsrio.nal.usda.gov\/ research\/fsheets\/fsheet12.pdf<\/p>\n<p>100 Michigan Department of Agriculture. \u201cElectronic Identification Program.\u201d http:\/\/www.michigan.gov\/mda\/0,1607,7-125-48096_ 48149-86002&#8211;,00.html<\/p>\n<p>101 Holstein Association USA. \u201cHolstein Association USA Approved by USDA as a Compliant Animal Tracking Database.\u201d October 18, 2007<\/p>\n<p>102 Michigan Department of Agriculture. \u201cQuestions and Answers for Mandatory Cattle Identification Program.\u201d http:\/\/www.michigan. gov\/mda\/0,1607,7-125&#8211;137059&#8211;,00.html<\/p>\n<p>103 Northstar Cooperative. http:\/\/www.northstarcooperative.com\/ dhia\/ProductsAndServices\/spryRFID.html<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.naissucks.com\/images\/NAISfollowMoneyLR_img_13.jpg\" alt=\"www.Foodandwaterwatch.org\" hspace=\"5\" width=\"363\" height=\"151\" align=\"right\" \/>104 Several places on the Web site such as \u201cOrder Bovine Eartags\u201d direct you to Holstein USA, although in late spring 2009 some portions of the website did add Northstar Cooperative to the page. However, if you download a PDF entitled \u201cMandatory Cattle Identification Program Q &amp; A,\u201d the question-and-answer number-23 informs you that you can also order RFID tags from Northstar Cooperative.<\/p>\n<p>105 Information found at http:\/\/www.usaspending.gov<\/p>\n<p>106 Heffernan, William and Mary Hendrickson. \u201cConcentration of Agricultural Markets.\u201d Department of Rural Sociology, University of Missouri. April 2007. http:\/\/nfu.org\/issues\/economic-policy\/ resources\/heffernan-report<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>1. A small number of private interests will make out big financially by supplying hundreds of millions of dollars worth of tracking devices and software to livestock producers. 2. 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