[Congressional Record Volume 142, Number 108 (Monday, July 22, 1996)]
[Senate]
[Page S8477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG:
  S. 1981. A bill to establish a Joint United States-Canada Commission 
on Cattle and Beef to identify, and recommend means of resolving, 
national, regional, and provincial trade-distorting differences between 
the countries with respect to the production, processing, and sale of 
cattle and beef, and for other purposes; to the Committee on Finance.


     THE JOINT UNITED STATES-CANADA COMMISSION ON CATTLE AND BEEF 
                       ESTABLISHMENT ACT OF 1996

 Mr. CRAIG. Mr. President, I introduce a bill of critical 
importance to our Nation's cattle producers. The Joint United States-
Canada Commission on Cattle and Beef is designed to resolve some of the 
existing differences in trade practices between the two countries.
  As a former rancher, I have a firsthand understanding of the 
challenges that face the cattle industry. The prolonged down cycle is 
especially troubling because it affects the livelihoods of thousands of 
ranching families in Idaho and across the country.
  These beef producers are the largest sector of Idaho and American 
agriculture. Over 1 million families raise over 100 million head of 
beef cattle every year. This contributes over $36 billion to local 
economies. Even with the extended cycle of low prices, direct cash 
receipts from the Idaho cattle industry were almost $620 million in 
1995. These totals only represent direct sales; they do not capture the 
multiplier effect that cattle ranches have in their local economies 
from expenditures on labor, feed, fuel, property taxes, and other 
inputs.
  Over the years, cattle operations have provided a decent living and 
good way of life in exchange for long days, hard work, and dedication. 
While the investment continues to be high, the returns have been low in 
recent years.
  The problems facing the cattle industry in recent years are complex. 
The nature of the market dictates that stable consumption combined with 
increased productivity and growing herd size yield lower prices to 
producers. This, combined with high feed prices and limited export 
opportunities, has caused a near crisis.
  Many Idahoans have contacted me on this issue. Some suggest the 
Federal Government intervene in the market to help producers. However, 
many others have expressed fear that Federal intervention, if 
experience is any indication, will only complicate matters and may also 
create a number of unintended results. I tend to agree with the latter. 
Time and again, I have seen lawmakers and bureaucrats in Washington, 
DC, albeit well-intentioned, take a difficult situation and make it 
worse. This does not mean that I believe Government has no role to 
play. I have supported and will continue to support measures of proven 
value. However, I will continue to follow this situation closely with 
the hope that free market forces will, in the long run, aid in making 
cattle producers more efficient, productive, and profitable.
  The cattle industry is part of a complex, long-term cycle; however, 
there are producers who might not survive the short-term consequences. 
The Beef Industry Assistance Resolution addresses a number of these 
short term issues. These are issues that were raised at a hearing of 
the Agriculture Committee that I chaired a few weeks ago.

  The resolution has five sections--antitrust monitoring, market 
reporting, private sector self-regulation, recognition of barriers to 
international trade, and emergency loan guarantees.
  Section 1 encourages the Secretary of Agriculture and Department of 
Justice to increase the monitoring of mergers and acquisitions in the 
beef industry. Investigation of possible barriers in the beef packing 
sector for new firms and with other commodities is encouraged.
  Section 2 directs the Secretary of Agriculture to expedite the 
reporting of existing beef categories and add additional categories. 
These categories include contract, formula and live cash cattle prices, 
and boxed beef prices. The Secretary is also encouraged to increase the 
frequency of captive supply cattle from every 14 to 7 days. I am 
especially interested in the improved reporting of all beef and live 
cattle exports and imports. The second section also directs the 
Secretary to capture data on a previously unrecorded segment of the 
market--away from home consumption. While this market consumes 
approximately half of the Nation's beef production, very little is 
known about it.
  Section 3 encourages two very important measures within the private 
sector. First, meat packing companies are encouraged to fully utilize a 
grid pricing structure which will provide producers with a more 
complete picture for the particular type of the cattle they produce. 
Second, agricultural lenders are encouraged to consider the total asset 
portfolio, not just cash flow, when evaluating this year's beef loans. 
Even the best operators will have great difficulty cash-flowing a 
cattle outfit because of the prolonged period of low prices.
  Section 4 recognizes a number of barriers to international trade that 
adversely affect American beef producers. The section is meant to 
elevate the importance of all trade issues and specifically references 
the elimination of the European Union hormone ban and animal health 
barriers between the United States and Canada.
  Section 5 recommends that emergency loan guarantees be made available 
to agricultural lenders with cattle industry loans. I am disappointed 
that the President zeroed out funding for this program in his fiscal 
year 1997 proposal. I have heard from a number of lenders that a high 
number of loans are questionable for this fall.
  The Beef Industry Assistance Resolution is a measure designed to 
provide immediate, short-term solutions to some of the serious problems 
facing the cattle industry. I know that a number of my colleagues have 
legislation pending in regards to the cattle market. I would comment 
that I see this resolution as a starting point, not an ending point for 
cattle industry issues.
  Mr. President, I ask unanimous consent that the text of my bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1981

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. JOINT UNITED STATES-CANADA COMMISSION ON CATTLE 
                   AND BEEF.

       (a) Establishment.--There is established a Joint United 
     States-Canada Commission on Cattle and Beef to identify, and 
     recommend means of resolving, national, regional, and 
     provincial trade-distorting differences between the United 
     States and Canada with respect to the production, processing, 
     and sale of cattle and beef, with particular emphasis on--
       (1) animal health requirements;
       (2) transportation differences;
       (3) the availability of feed grains; and
       (4) other market-distorting direct and indirect subsidies.
       (b) Composition.--
       (1) In general.--The Commission shall be composed of--
       (A) 3 members representing the United States, including--
       (i) 1 member appointed by the Majority Leader of the 
     Senate;
       (ii) 1 member appointed by the Speaker of the House of 
     Representatives; and
       (iii) 1 member appointed by the Secretary of Agriculture;
       (B) 3 members representing Canada, appointed by the 
     Government of Canada; and
       (C) nonvoting members appointed by the Commission to serve 
     as advisers to the Commission, including university faculty, 
     State veterinarians, trade experts, and other members.
       (2) Appointment.--Members of the Commission shall be 
     appointed not later than 30 days after the date of enactment 
     of this Act.
       (c) Report.--Not later than 180 days after the first 
     meeting of the Commission, the Commission shall submit a 
     report to Congress and the Government of Canada that 
     identifies, and recommends means of resolving, differences 
     between the United States and Canada with respect to the 
     production, processing, and sale of cattle and beef.

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