By Victoria G. Myers
Progressive Farmer Senior Editor
SAN DIEGO, Calif. (DTN) -- High beef prices and the warm breezes of San Diego lured many cattle producers to this year's annual meeting of the National Cattlemen's Beef Association. With standing room crowds in many of the opening sessions Wednesday, president-elect Tracy Brunner said he is getting ready for a pivotal year for the industry.
The list of priority areas for the cattle business in 2016 is long, but pressed to narrow that lineup down to a few top issues that could significantly impact the industry as a whole. NCBA's Chase Adams said keep an eye on these two: the Trans-Pacific Partnership Agreement (TPP) and Waters of the United States (WOTUS) rule.
TPP could be mark a monumental gain on the trade side, giving producers in the U.S. significantly improved access to Japanese markets. The 12-country trade pact comprises the U.S., Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, Japan, Canada and Mexico. It would greatly reduce tariff rates on U.S. beef exported to Japan. In 2014, for example, U.S. beef exports to Japan were valued at $1.6 billion. The tariff rate was 38.5%. Under TPP that rate would phase down over a 15-year period to 9%.
Kevin Kester, NCBA policy division chair and a California cattle producer, said, "With a growing middle class overseas demanding a higher-quality diet, we need strong trade agreements like TPP in place to level the playing field and allow us access to those consumers who are asking for our product."
Brunner told DTN the TPP is critical in leveling the playing field for beef producers in today's export market.
"The countries involved in TPP make up 40% of the world's economy," Brunner said. "If TPP is not ratified we concede dominance of the Pacific trading area to China. They will have their own trade agreement that will make it difficult for the U.S. to compete under their rules. TPP will give us the leverage we need to enter these markets in a way that will allow us to compete."
Brunner is a fourth-generation cattle producer in the western Flint Hills of Kansas. Cow Camp Beef is the family's diversified farm and ranch and is based between Manhattan and Wichita. It includes a finishing yard, purebred and commercial cattle.
The other major issue Brunner said he is watching right now is WOTUS. WOTUS is a classic example of government overreach, he said. He added this is a fight the industry cannot lose.
"The restriction of private property rights is very serious," he said. "We are in litigation to reverse the effects of WOTUS. We are not alone in that fight. We have Farm Bureau, the National Association of Realtors and other land use and private property rights groups fighting with us. WOTUS is just one example of the administration's regulatory overreach. Over the next 12 months we believe the administration will use more executive orders to expand jurisdiction and we have to push back."
Brunner added the upcoming election will be extremely important in determining the direction this issue takes, and he stressed the importance of the NCBA's political action committee as it works hard in the House and Senate to increase the understanding of the issue of property ownership.
"We intend to be successful," he added.
Victoria Myers can be reached at victoria.myers@dtn.com
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