Animal Ag Reacts to Omnibus Bill

Jamie JohansenAg Group, COOL, National Milk, NCBA, NPPC, Policy

capitol-nightLate last week Congress passed the $1.15 trillion Omnibus Appropriations Bill, which funds much of the government through fiscal year 2016. The bill repeals mandatory Country-of-Origin Labeling (COOL) which has been one of the hottest issues in animal agriculture as we wrap up 2015.

“USDA will be amending the COOL regulations as expeditiously as possible to reflect the repeal of the beef and pork provisions,” Agriculture Secretary Tom Vilsack said in a statement.

National Cattlemen’s Beef Association (NCBA) President Philip Ellis called it a significant victory for America’s cattle producers. “COOL has plagued our industry for many years now, costing us millions and driving us to the brink of retaliation from two of our largest trading partners. Cattle producers have had to bear the cost of this failed program for far too long, and we commend the leadership of Senate Agriculture Chairman Pat Roberts, House Agriculture Committee Chairman Mike Conaway and Representative Jim Costa (D-Cali.) for ensuring the United States is brought back into compliance with our trade obligations.”

The National Pork Producers Council (NCCP) also applauded the lawmakers. NPPC President Dr. Ron Prestage, a veterinarian and pork producer said, “I know tariffs on U.S. pork would have been devastating to me and other pork producers.”

According to Iowa State University economist Dermot Hayes, the average U.S. pork producer currently is losing money on each hog marketed, and those losses would have been exacerbated significantly under retaliation from Canada and Mexico.

Jim Mulhern, President and CEO of National Milk Producers Federation (NMPF) said the COOL repeal was important “to prevent new tariffs on U.S. dairy products at a particularly challenging time for our industry, given the depressed global market.”

“The package features key items that will help make Christmas a little merrier for the nation’s dairy farmers,” said Mulhern. “In particular, the tax measures will help farmers’ budgets in a year when they’ve been squeezed financially by low milk prices. Making the Section 179 credit permanent is a very welcome outcome after several years of short-term extensions of the provision.”