Transcript Thoughts Regarding The Cattle Industry

Provisions Of The 2008 Farm
Bill That Pertain To Livestock
Producers
Rodney Jones
OSU NW Area Extension
Economist
Livestock Provisions
• COOL (Country of Origin Labeling)
• LIP (Livestock Indemnity Program)
• LFP (Livestock Forage Disaster Program)
COOL
• Brief History,
– Controversial (supporters say it sells more
product, opponents say it costs too much and
is hard to implement)
– Became law in 2002 farm bill
– Implementation delayed, became mandatory
for fish and seafood in April, 2005
– Implementation for other covered
commodities again delayed
– Some modifications in 2008 farm bill,
implementation time line set
Implementation Timeline
• Rules in place September 30, 2008
• 6 month grace period for full compliance
– Gets us to about April 1 for full compliance
• Implementation began immediately
– Product produced prior to September 30,
2008 exempted
Covered Commodities
• Muscle cuts of beef, lamb, chicken, goat,
and pork
• Ground beef, lamb, chicken, goat, and
pork
• Wild and farm raised fish and shellfish
• Fresh and frozen fruits and vegetables
• Peanuts, pecans, macadamia nuts, and
ginseng
Who is Involved
• Retailers of covered commodities with an
invoice value of at least $230,000.00 annually
• Rules about the labels
– In English, legible, not obscuring other info,
consistent with FDA, FSIS, CBT, etc.
– Meat origin categories include: U.S. Origin;
Multiple Countries of Origin; Imported for
immediate Slaughter; and Imported meat
– Ground product labels must include all actual or
reasonably possible countries of origin
Retailers Must Keep Records
• Origin, supplier, identity of covered
commodities
• Maintained for one year
Who (What) is Exempt
• Food service establishments
– Restaurants, food stands, taverns,
lunchrooms, etc.
• Processed foods
– Changed in character by cooking, drying,
curing, smoking, etc.
– Food that is mixed with another food item
Why Should Producers Care?
• Retailers of covered commodities with and
invoice value of at least $230,000.00 annually
• Suppliers of covered commodities must
provide origin information to buyers
Suppliers (Growers, Distributors,
Handlers, Packers, and Processors)
Must Keep Records
• Make available information to the
subsequent purchaser about the country
of origin of the covered commodity
• Maintain records to establish and
identify the immediate previous source,
and the immediate subsequent recipient
of a covered commodity or one year from
date of transaction
Records
• Must be legible
• Hard copy or electronic
• Records used in the normal course of
business are acceptable
• Maintained in any location
• Must be made available to USDA
representatives within 5 days if requested
In The Case of Meat, Packers are
Responsible for Making the Origin
Declaration
• Packers must possess or have legal access
to records necessary to substantiate that
declaration
• Visual inspection may be sufficient???
• A producer affidavit is acceptable
evidence of origin provided it is from
someone with firsthand knowledge of the
origin of the animals, and identifies the
animals unique to the transaction
Affidavits
• Readily available from industry sources
(organizations, markets, web, etc.)
• Continuous affidavit – kept on file with
market outlet until revoked by signer
• Specific transaction statement – stand
alone for specific transaction, can be used
on invoices and other sales documents
• Packers may request a statement
indicating that records will be kept and
made available as required by law
Cow-Calf Implications
• Supply affidavits for animals sold if asked
– Record buyer, date, and location of sale
• Keep records to document claims
– Herd and calving records
– Vet and feed records
• Document herd inventory, and changes
since July 15, 2008
• Inventory raised cows and bulls
• Request and file affidavits on any livestock
purchased including breeding stock
Stocker/Feeder Implications
• Request and file affidavits for all
purchased animals (record seller, date,
and location)
• Provide affidavits for all sales (can be in
groups (keep records to verify
inventories)
• Can co mingle and re sort as long as
under same origin
• Segregate domestic and imported animals
unless individual ID is used
NAIS system is acceptable verification
LIP and LFP
• Established through the Agricultural Disaster
Relief Trust Fund
• Programs Include
–
–
–
–
Supplemental Revenue Assistance Program (SURE)
Livestock Indemnity Program (LIP)
Livestock Forage Disaster Program (LFP)
Emergency Assistance for Lvstk, Honey bees, and
Fish (ELAP)
– Tree Assistance Program (TAP)
LIP
• Will compensate producers for livestock death
losses
– In excess of normal mortality due to adverse
weather
– Between 1/01/08 and 10/01/11
• No sign-up period. Apply when disaster
apparent
– Within 30 days of loss
• No disaster declaration required
• Payment = 75% of market value of livestock on
day before death
Adverse Weather Events
• Wildfire, Blizzard, Hurricane, Tornado,
Lightning, Ice Storms, Earthquakes, Flood,
Tropical Storm, Extreme cold or heat.
• Disease that caused death must be related to an
eligible adverse weather event to trigger LIP
• Drought is not a trigger (because it is covered
under LFP) unless it is associated with anthrax,
a condition that is associated with drought
Eligible Livestock
• Beef and Dairy cattle (all weights), Buffalo,
Beefalo, Equine, Elk, Reindeer, Deer, Sheep,
Alpacas, Emus, Swine, Goats, Llamas, Poultry
• Must be livestock that normally graze
• Must be maintained for commercial use part of
a farming operation
• Ineligible – Hunting animals, Show animals,
Pleasure animals, Rodeo Stock, Pets, Animals
kept for home consumption
LFP
• Covers grazing losses due to drought, as
determined by the intensity level of the U.S.
Drought Monitor
– Payments are 1, 2, or 3 monthly payments,
depending on the intensity of the drought
• Rate is 60% of the lesser of
– Feed grain equivalent
– Monthly feed cost based on normal grazing land
carrying capacity
Drought-Loss Categories
• D2 (severe drought): 8 consecutive weeks in
any area of the county during the normal
grazing period = 1 monthly payment
• D3 (extreme drought): any area of county at
any time during the normal grazing period = 2
monthly payments
Drought-Loss Categories
• D3 (extreme drought): 4 weeks in any area of
the county during the normal grazing period =
3 monthly payments
• D4 (exceptional drought): any area of county at
any time during the normal grazing period = 3
monthly payments
• 3 months is the maximum payment on same
livestock
Eligible Livestock and Forages
• Livestock normally grazing in an eligible
county during the normal grazing period
– During the 60 days prior to the qualifying drought
(or fire) were owned, leased purchased, contracted
for purchase, grown under contract, or disposed of
due to drought conditions
• Native or improved pastureland with
permanent vegetative cover
• Forages planted specifically for the purpose of
grazing (small grain, forage sorghum)
To Be Eligible
• Producer must either have purchased NAP
coverage on the forage, or have purchased a
forage insurance product for the months in
which the drought occurs
• Thank You
• Questions or Discussion !!!!