The National Livestock Weekly December 13, 2004 • Vol. 84, No. 09 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication BSE trade rule moving ahead — Meat group denied mented, and we’re disappointed nal rule is published. In terms of timeliness, the court ulate a significant interest in the ‘intervener’ status. that those interests will not be im- NMA wanted to be kept abreast said, the only documents current- proceedings at this junction. NMA mediately represented before the of the rule changes and felt its ly being filed with them on this feels that once a final rule is issued A U.S. District Court in Mon- court.” membership needed similar notifi- matter is status reports and allow- by USDA, the court will hold a tana recently denied the National R-CALF filed the case in April cation. NMA said if R-CALF fol- ing intervention would likely prej- different opinion. Meat Association’s (NMA) request when USDA announced it was re- lows through with its intent to keep udice both R-CALF and USDA. On the last issue, Cebull held for intervener status in the Cana- opening the border to Canadian the border closed, NMAwould have Referencing related interest, the that USDA can defend the com- dian border reopening case involv- imports. R-CALF filed an injunc- immediate legal status in the court. court said, “While NMA may well pleteness of its procedures for de- ing R-CALF USA and USDA. The tion against the action saying it Both R-CALF and USDA op- have some cognizable interest in veloping a new rule, and, even if court did leave the option open for would jeopardize the health and posed NMA’s motion. this case at a future date, it is in- NMA intervened on USDA’s side, NMAto reapply after USDAissues safety of U.S. consumers. Judge Cebull considered four criteria determinable at this stage because NMA would not be in a position its final rule allowing imports of Richard Cebull granted the injunc- when deciding whether NMA had the case is awaiting completion of to know why the agency made its Canadian live cattle. tion and is requiring USDA to pro- the right to intervene—timeliness, USDA’s rulemaking process and it decision. NMA Executive Director Rose- vide 45-day updates to R-CALF interest relating to the subject of the is not possible for either of the The only other means for NMA mary Mucklow was upset with the before publishing a final rule allow- litigation, practical impairment of parties or the court to discern the to intervene, according to the court decision and said, “NMA’s efforts to ing both live-cattle and boxed-beef an interest of the party, and inad- direction the case will take ....” documents, would be under “per- represent the interests of American imports. USDA is also required to equate representation by the par- As far as practical impairment, missive intervention.” beef packers have been well docu- give a five-day notice before the fi- ties in the action. Cebull ruled NMA failed to artic- Cebull ultimately decided NMA’s interests were in direct opposition to those of R-CALF, and it would cause Heavy rain and snow has teamed up with unseasonably warm temperatures across most of the Southwest R-CALF “undue harm” to allow NMA Baled to produce much-better-than-average winter pasture forage. As a result, stocking rates are above normal to intervene at this juncture. and cattle are expected to stay on pasture another two to four months, according to stocker operators. After the decision, NMA said it will see what the outcome of the corn USDA rule is before deciding to reapply for intervener status. NMA believes USDA will issue a final suitable rule in a matter of days. NMA plans to review the rule and wait to see if R-CALF will seek option to expand the litigation. If R-CALF — Supplies bulging. works to keep the border closed, NMA said it will act to protect the Baling of corn, not just residue interests of its members. — stalks, is becoming more preva- Sarah L. Swenson, WLJ lent this year as they offer more Associate Editor profit opportunity for grain farmers and a very inexpensive, but viable feed resource for live- stock, particularly cattle. Fed trade In addition, the amount of available supply is expected to very slow increase through the winter as Fed cattle trade was slow to corn still in the field will become develop last week with limited less suitable for elevator storage early week trade at $85 in north- because of moisture conditions. ern feeding areas Tuesday, down At the end of November, US- Photo by Jeff Vanuga, NRCS $3-5 from a week earlier when DA said the U.S. corn harvest weather played a role in feedlot was only 95 percent complete, trade. Through Thursday mid- compared to over 99 percent day, only 70,000 head traded normally. However, there has Court hears checkoff debate nationwide, with only 5-10,000 already been 1 billion more head moving in Kansas and Both sides of the beef checkoff Questions about quirement that every time the gov- bushels harvested this year than constitutionality issue presented ernment speaks it has to tell you Texas combined. last year’s total record crop. Crop arguments to eight of the nine U.S. gov’t attribution. this is speech of the U.S. govern- Analysts weren’t positive what price packers would be market analysts said a lot of the Supreme Court Justices last Decision ment,” he said. corn remaining in the field needs Wednesday, in an effort to swing a Justices appeared to give sever- willing to pay for near-term slaughter supplies, but many to find alternative ways to be uti- final decision their way. expected by al suggestions concerning how the said they expected $86 to get lized because grain storage is Sources representing the plain- July 2005. government speech requirement the ball rolling. Packers, howev- so hard to find. tiffs in Livestock Marketing Associ- could be met by the beef checkoff er, were going against that the- Midwest and central Plains program, including a suggested tag- ation (LMA) v. USDA, Cattlemen’s ory last Thursday as they were hay and forage brokers last Beef Board and Nebraska Cattle- line by Justice David Souter of: “This is the government position only bidding $83-84, which was week told WLJ that they have men Inc. told WLJ they were very down from Wednesday’s offers had several instances where confident the court would rule the paid for by the beef industry.” Ginsberg expressed some con- of mostly $85. corn farmers have consigned program unconstitutional and dis- Last week’s slaughter volume cern that checkoff promotions are baled corn with full, intact ears band the program sometime next was up significantly, compared for sale. Most sources said that year. advocating eating beef, when there to the previous two weeks. That baled corn and cornstalks can be Hearing attendees called last are efforts being made by the U.S. was said to be offset, however, brought in by livestock produc- week’s event “very lively” and not- promotional pieces attributing the Surgeon General, another federal by the extremely slow move- ers at prices half to two-thirds ed several instances where justices information to the government. In government official, to promote eat- ment of boxed beef between of hay prices right now. directed very pointed questions at addition, Justice Anthony Kennedy ing beef in moderation as part of a packers and retailers during the “Baled crop residue is bring- both sides. asked why the word “American” balanced diet. She indicated that past week-and-a-half. isn’t even included in the promotion- ing $12-20 per ton before deliv- Justices David Souter, Ruth Bad- could be a conflict of interest for Packers had processed al campaign. Without that word, ery, and even with transporta- er Ginsberg and Antonin Scalia the government. See Markets on page 11 Kennedy asked, how is the public tion figured in, you’re still look- questioned whether promotions ad- Laurence Tribe, the lawyer rep- to know the U.S. government is en- ing at a viable feed resource that vocating the public to “eat beef” resenting LMA, argued that the is- were indeed government speech or dorsing such an issue? is $5-15 cheaper than FOB hay,” sue of government attribution was were simply the message coming In response, Gregory Garre, a said David Abercrombie, co-own- meaningless. Instead, he said U.S. from several members of the U.S. lawyer representing the Nebraska er and general manager of Kear- beef producers are being forced to beef industry. Cattlemen, said the government pay for ads and promotions that ney, NE-based, ABC Forage The defense was asked why the doesn’t need to make its involve- they disagree with and that is un- Sales. “With intact ears, the checkoff should be considered gov- ment known on every ad funded by constitutional. price is up to $30-35 per ton, ernment speech when there isn’t the program. “Even if the government took See Corn on page 5 any indication on any of the ads or “There isn’t a constitutional re- See Checkoff on page 6 INSIDE WLJ Time Sensitive PROPERTY RIGHTS—Several SCHOOL COOL—The most vo- MEXICO EXPORTS—For the NEXT WEEK—The 2005 Nation- INDEX U.S. agricultural groups are close- cal proponent of mandatory coun- first time in its history, Mexico last al Western Stock Show will mark Beef Bits ............................P-3 (priority handling) ly watching a property rights suit try of origin labeling continues to week sent a load of beef to Japan.