Canadian Cattle Trade Injunction Overturned
Total Page：16
File Type：pdf, Size：1020Kb
The National Livestock Weekly July 18, 2005 • Vol. 84, No. 40 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication Plains ranch values Canadian cattle trade at historical highs injunction overturned The preliminary injunction against USDA’s final its final import rule because he didn’t agree with rule regarding imports of Canadian cattle into the the decision, and that he may have not shown an U.S. was overturned by a three-judge panel with appropriate amount of deference to USDA. the Ninth Circuit Court of Ap- Leaders from the Washing- peals last Thursday. The deci- ton Cattlemen’s Association sion was made the day after ar- (WCA) said the panel appeared guments on the issue were pre- very educated on the issue and sented. were trying to find out what fac- “The court, after considera- tual basis was used by Cebull to tion of the briefs of the parties grant the injunction. and the various amici curiae, “They (the justices) seemed and oral arguments, has deter- interested in finding out more mined that the order of the Unit- about the reasons behind Ce- ed States District Court for the District of Montana bull’s original ruling. They seemed to be wonder- of March 5, 2005, granting a preliminary injunc- ing why there wasn’t more deference paid to US- tion enjoining the enforcement of a final rule issued DA, or more facts and reasoning in his decision by the Animal and Plant Health Inspection Ser- (granting the injunction,” said Jack Field, execu- The eastern Plains region of the U.S. is very rich in farms and vice....must be reversed,” the court’s order said. No tive vice president of WCA. ranch land. Ranch brokers and realtors both say the current mar- specifics were announced by the court as of press Cebull ruled in favor of R-CALF’s preliminary in- ket for those properties is nearing, or has exceeded historical highs. time last Thursday. junction request May 2, five days before USDA Sources said the majority of these properties that have been sold Before the ruling was announced, hearing atten- was scheduled to reopen the border to Canadian are being kept as agricultural operations, either in part or in their dees indicated that most of the court’s questions were cattle 30 months or younger. The border was orig- entirety. originally directed at counsel representing R-CALF inally closed to Canadian cattle and beef in May “The land market throughout the western Cornbelt and east- United Stockgrowers of America. 2003, after the country reported its first confirmed ern Plains is very strong with most areas seeing land values at his- The justices were particularly interested in R- case of BSE. Beef from animals under 30 months torical highs or setting new highs,” said Monty Meusch, head re- CALF’s contention that USDA was inconsistent in of age with specified risk materials (SRMs) re- al estate broker with Farmers National, Omaha, NE. “Demand is its use of scientific justification when finalizing its moved was allowed back into the U.S. several being pushed by area farmers and ranchers wanting to expand their rule to allow Canadian live cattle into the U.S. months later. However, cattle and beef without age current operations, investors seeking to place cash in real estate R-CALF attorney Russell Frye told the appellate restrictions and SRMs removed had not been grant- for diversity, safety and income, and IRS 1031 tax deferred exchange court that District Court Judge Richard Cebull ed access. A hearing on R-CALF’s request for per- buyers who have sold land for development and now must re-in- agreed with the allegations that USDA made its manent injunction against Canadian cattle and vest the sale proceeds or pay capital gains tax.” According to import rule on the basis of politics and then worked beef is still scheduled for July 27. Legal sources said Meusch, 60-70 percent of agricultural real estate for sale is cur- backward to justify the rule by incorporating science. a decision from the bench on that day will be un- rently being bought by active farm and ranch families. “We still He also said the arbitrary nature of USDA’s action likely. have a good interest from active producers who are insuring their was evident since the original rule allowed beef from The ruling of the appellate court was to be im- future by expanding,” he said. all ages of cattle to enter the U.S. when only live cat- plemented immediately, which sources said meant tle 30 months or younger would be allowed. that Canadian live cattle would be allowed to start See Plains Edition on page 9 There was an indication from the appellate pan- crossing the border as soon as possible. — Steven el that Cebull may have ruled against USDA and D. Vetter, WLJ Editor Endangered species bill criticized by ranchers Beef A proposed bill that would amend sections of The first criticism is for language mandat- Western state ranching organizations called the Endangered Species Act (ESA) is being crit- ing a 50 percent compensation trigger. Under those two modifications “uncalled for” and an icized by property rights organizations, includ- this change, landowners would have to prove effort to appease radical environmentalists and demand ing western ranching groups, and it hasn’t even that wildlife protection provided under the species conservationists. been introduced in Congress yet. ESA has resulted in 50 percent or more of pri- Two western state cattle organization exec- pulls feds Aleaked copy of Rep. Richard Pombo’s (R-CA) vate land being removed from their manage- utives told WLJ last week that the 50 percent “Threatened and Endangered Species Recovery ment before compensation can be applied for. trigger for compensation, if included in the ESA, Act of 2005” showed the proposal includes two Secondly, Pombo’s bill would give invasive plant could force many of their ranching members out $2 lower main items of concern for property owners. species protection. of business or severely hamper their financial After a couple weeks of steady stability. prices, feedlots nationwide were “Forget 50 percent, most ranchers would start starting to feel the pressure and to lose their viability after losing 10-15 percent traded cattle $1-2 lower than Hay mold a growing concern of their production. And, to compound it by hav- the prior week. Forage and ruminant nutritionists ing to go through a verification process that Through last Thursday, are urging producers to be careful when says 50 percent of your land has been impact- northern Plains cattle feeders it comes to buying their fall and winter ed by ESA actions is ludicrous,” one state exec- sold 55-60,000 head at mostly — Negative hay and other harvested forages due to utive director said. “People will still be in lim- $127 dressed. Southern Plains bo for years before agencies issue final deci- impacts on concerns that mold is more prevalent and Southwest feedlots finally this year than the past several years. sion, all the while not able to use their land.” pulled the trigger Thursday af- calves cited. First and second cutting hay from the On the issue of including “invasive” species ternoon at $80-80.50 live, com- central and northern Plains, Intermoun- under the auspices of the act, private property pared to mostly $82 the previ- — Additional tain West and Northwest are of the most interests said ranchers could be forced off their ous week. Texas feeders sold waste weighs concern because of the abnormally-heavy grazing or pasture lands because a certain for- 35-40,000 head, while Kansas financially. rains that inundated those areas during age has been deemed “threatened” or “endan- trade totaled 45-50,000 cattle. spring and very early summer. gered.” In addition, there is concern that some Beef demand was significant- “A lot of early hay was already down grasses commonly used for lawns or yards could ly softer the week after the when it got rained on,” said Kurt Leffler, be classified for ESAprotection and then the gov- Fourth of July weekend, which hay specialist with LMO Agriculture, ernment would technically have control of those See Markets on page 11 Inc., Decatur, MO. “Even with allowing it to dry several days, chances are the air was still areas, as well. damp enough to threaten hay quality and safety at baling time.” “For instance, tall fescue, a grass commonly He also said the wetter-than-normal spring helped pre-harvest mold levels which usually used by homeowners for their lawns, could qual- accumulate on the under side of leaves where the sun can’t do its job of killing or minimiz- ify as an invasive species and be regulated by ing mold colonies. the federal government,” said the private prop- Leffler said it appears that in several areas of Missouri, Kansas and Colorado, mold may erty group Liberty Matters, in a statement. have impacted 8-10 percent of the first and second cutting hay harvests, with some produc- Congressional aides said last week that Pom- ers reporting 20-25 percent spoilage. Usually, Leffler said, mold rates are well under five per- bo’s proposal is expected to be introduced in cent, at two to three percent. the House of Representatives by the end of Ju- See Mold on page 6 ly, but did not know any specific date. — Steven D. Vetter, WLJ Editor INSIDE WLJ Time Sensitive Priority Handling TEXAS RANCH — The ranch DOWNER BAN — The current JAPAN TRADE — U.S.