Mr. Chairman, I want to thank the Chairman of the Committee on Appropriations, Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies for yielding me this time and for his leadership in making…
Mr. Chairman, I want to thank the Chairman of the Committee on Appropriations, Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies for yielding me this time and for his leadership in making sure that we address the country of origin labeling issue correctly.
Many of my colleagues may not appreciate how hard the House Committee on Agriculture has worked on the country of origin labeling issue. Several years ago, the gentleman from California (Mr. Pombo), then Subcommittee on Livestock and Horticulture chairman, and some of his colleagues began a process to explore this subject. They started out with the hope that it could be accomplished in a way to provide an effective tool for producers to earn more in the marketplace. The subcommittee proceeded to meet with interested parties and the administration to develop the idea.
Subsequently, the fiscal year 1999 Agriculture appropriations directed the Secretary to conduct a comprehensive study on the potential effects of the idea. During an April 28, 1999, Subcommittee on Livestock and Horticulture hearing, the Clinton administration testified about the ``variety of regulatory regimes'' for labeling that could be adopted and further asserted that they ``believe there would probably have to be some kind of paperwork traceback system.'' The GAO pointed out that ``there is going to be significant costs associated with compliance and enforcement.''
Concerned that the costs outweighed the benefits for producers, the gentleman from California (Mr. Pombo) and others turned their attention to working with USDA to develop a credible voluntary program that allowed producers and processors to work together. Meanwhile, the GAO released its report in January of 2000 stating that mandatory labeling ``would necessitate change in the meat industry's current practices, create compliance costs across all sectors of the industry'' and asserting that ``U.S. packers, processors and grocers would, to the extent possible, pass their compliance costs back to suppliers, U.S. cattle and sheep ranchers, in the form of lower prices or forward to consumers in the form of higher retail prices.''
On September 8, 2000, interested parties submitted a petition to the USDA for a voluntary program and the Subcommittee on Livestock and Horticulture conducted another hearing on September 26, 2000, to review studies and the USDA's progress on the petition.
In early July, 2001, Under Secretary Hawks wrote industry to commit the Agriculture Marketing Service ``to begin action on the petition requesting a USDA voluntary, user-fee funded certification program that will enable a label for beef products.''
That same month, on July 26 and 27, the House Committee on Agriculture conducted its markup of the Farm Bill. The transcript of that markup has 12,463 lines of text, with 3,167 lines on amendments to create a mandatory country of origin labeling program. Fully 25 percent of the markup was devoted to this proposal, which was ultimately rejected because of concerns that the costs outweighed the benefits.
It has been mentioned by some that this has been passed on the floor of the House, and that is most certainly not correct. Mr. Chairman, an amendment was passed on the floor dealing with fruits and vegetables. The more complicated issue of beef and pork, which is the only subject covered by the provision in the Agriculture appropriations bill that delays implementation for a year, is the beef and pork provisions. The House has never taken a position on this, and this is far more complicated and costly for the producers than any of the other sectors, whether one likes the other ideas or not.
For those that attended the Farm Bill conference meetings, they know that labeling was a major topic of discussion there as well.
Despite a complete lack of any hearing record on the subject, the Senate insisted on its provision requiring labeling for beef, pork, lamb, fruits, vegetables, peanuts and fish.
Just weeks ago, on June 26, the Committee on Agriculture conducted an extensive hearing on the implementation of mandatory country of origin labeling. We learned a number of troubling things. We learned that most of the problems associated with implementation were a result of the law and not the administration's interpretation. We learned that while some groups still support mandatory country of origin labeling, the two largest livestock producer groups in America, the National Cattlemen's Beef Association and the National Pork Producers Council, both oppose it.
We learned that this new law will open everyone up and down the food production system to third party lawsuits with the potential of creating havoc for producers, packers, processors and retailers. We learned that because of the way the law is drafted, no matter what the administration does in writing the implementing regulations, because the retailers have been made ultimately liable for this labeling system, that they will set up their own regime to protect themselves against mislabeled products, and that regime is going to be very costly to producers.
If you are a domestic producer of beef or pork, you are going to have to comply with an enormous amount of record keeping, a great deal of cost which you are going to have to bear yourself. Lower prices for your product are going to be passed down to you by the processors, by the distributors, by the wholesalers, by the retailers; and that foreign competition, whether it is fine Argentinian Black Angus beef or Australian beef, they are simply going to slap it on the label and say we are guilty. It will cost them little, if anything, to comply; it will cost the U.S. producers more. Therefore, this is going to be a major competitive disadvantage for American agriculture. I would urge Members to support the
original Bonilla language in the appropriations bill to delay implementation for 1 year and oppose the amendment which has just been offered to strike that language. We need time to sort out the problems with this legislation before Congress ends up doing a lot more harm than good.
Mr. Chairman, I want to thank the chairman of the appropriations subcommittee for yielding me this time in strong opposition to the amendment offered by the gentleman from Colorado.
I would say to the gentleman that I have supported his amendments from time to time, but I do not believe he has looked at the facts here. We are $872 million less than last year right now. That is far greater than the 1 percent cut the gentleman is asking for. So we have already done the work that he has asked for in this case.
Secondly, because of the fact we are already taking that huge a cut, I can only say that the gentleman's amendment constitutes an assault on rural America. This is something that we simply cannot tolerate.
The gentleman cited the few areas where there have been some significant increases, one of those being telemedicine. As the gentleman knows, the telemedicine program is designed to link rural America, people in clinics and small hospitals and other rural outposts, where they can get some health care treatment, with the major university hospitals that get all the health care money in the first place.
So if you cut out the money that allows them to tap into really good health care provisions by being able to access them, and we held a hearing on this subject in the committee just a couple of weeks ago on the demonstration of the technology that can now reach rural America, if we are able to get these thousands of sites in small communities across America, which does cost a lot of money, and that is why I am pleased the chairman of the subcommittee has put an increase in there for this, if you cut that out, you are doing a lot more than just cutting out that money. You are cutting out the ability of folks in the smallest communities in the country from being able to finally get access to the kind of quality health care that people in large urban areas have, because they will be getting it from the same doctors with the same expertise drawing those same big salaries at those universities hospitals, and now they will be able to reach the smaller communities.
So I would encourage the gentleman to look elsewhere for the kind of savings that he is talking about here. I urge my colleagues to oppose the amendment.
Mr. Chairman, will the gentleman yield?
Mr. Chairman, I would ask the gentleman from New Jersey, because I appreciated his comments about biotechnology and we certainly do want the public to be educated about this, if he would not take up the offer of the gentleman from Texas, the chairman of the subcommittee, to work with him. Withdraw the amendment, work with him, and see if there is not something that can be done as we move to conference, because not knowing exactly how this money would be spent is sort of like writing a blank check.
I think if we had a little more cooperation and a little more communication about what we intended, then the Congress could actually be the ones to specify that, and there might be some merit in the gentleman's position.
Mr. Chairman, if the gentleman will yield further, let me say I was not the chairman at the time the farm bill was written, so I do not know the history of the intent in the language in the farm bill. But, again, this is something that has just been brought to my attention, and we would be happy to look into it and see what we can find in that regard and try to achieve some specificity in terms of how the dollars are going to be spent, if indeed we can do that. That, of course, is up to the chairman of the subcommittee, but I would certainly stand willing to work with the gentleman to try to find the right formula and the right dollars that he has to squeeze out of an already-tight process to do something in this area, because I think what the gentleman from New Jersey is proposing is worthwhile.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, I will not use the 5 minutes. I just want to say to the chairman of the Committee on Appropriations Subcommittee on Agriculture that this amendment is pursuant to discussions that we had and we very much appreciate his offering it. We think that this will be very helpful in making sure that conservation dollars actually reach the people who need it: America's farmers and ranchers. This will also help to resolve some of the issues regarding the allocation of those funds.
So I urge my colleagues to support this amendment.
Mr. Chairman, I thank the gentleman for yielding me this time. I rise in strong opposition to this amendment.
Mr. Chairman, this amendment is a very bad idea from a public health safety standpoint. The way that we inspect animals to prevent animals with anything from BSE to a whole host of other diseases from getting into the food chain is through the process whereby the animals are slaughtered. When they show up at the slaughterhouses, that is where the veterinarians are on hand to inspect them and to make sure that animals that are not healthy do not get into the food chain. They are pulled off the line at that point in time and the public has that safety assurance.
If we require that downed animals are euthanized on the farm and never get to that point in the processing system, we are going to drive this whole process literally underground.
The problem that we have is that the animals will then be buried on the farm or disposed of in some other way, perhaps even put into the food chain illegitimately, because that farmer has absolutely no incentive to do anything otherwise. It is a cost to them, and there is no compensation to them whatsoever.
So if you have an animal that has BSE, and we certainly hope that that never occurs in this country, but if it does, we will never know it if this amendment passes because that animal will never get to the veterinarian to be inspected to determine whether or not it has that illness.
Therefore, this is a very, very bad idea. The humane thing to do for the animal, to have it euthanized at a place in the process where the veterinarians are on hand and can properly inspect it, is the way to go here. It is very important that when animals are downed we find out why they are downed. It might simply be a dislocated hip or something else that is no danger to human consumption, but if it is an animal that has a serious disease, we want to know if that animal has spread that disease to other animals in the area, whether other animals on that farm have the same problem.
If they never get to the veterinarian, we will never find that out; and, therefore, this will become a very serious human health problem if we adopt this amendment.
I yield to the gentleman from New York.
Reclaiming my time, the gentleman's point does not cure the problem. And the reason it does not is that there is still a lack of incentive for that farmer to ship that animal to the veterinarian if he knows before it ever gets on his truck that he will not be able to get any compensation for it, any certification for it no matter what is wrong with the animal.
As I indicated, if the animal simply has a dislocated hip or some other ailment that does not make the animal unsound for human consumption, then the farmer has absolutely no incentive whatsoever to ever get it to the slaughter house.
Mr. Chairman, I thank the gentleman for yielding me time.
Mr. Chairman, I want to respond to the gentlewoman from Ohio (Ms. Kaptur) because she is responding to exactly the same amendment that the gentleman from New York (Mr. Ackerman) has informed us he has modified from provisions that he has offered earlier as well.
The gentlewoman wants to keep the animals from ever being shipped to the slaughter house. The slaughter house is where the inspection takes place to determine whether or not the animal has BSE. So if the gentlewoman accomplishes her goal, she is defeating that purpose.
The gentleman from New York (Mr. Ackerman) has said he has modified his amendment so that only funds cannot be expended for the purpose of certifying the animal for processing. That has still the same problem. The farmer will have no incentive to get that animal to the place where the veterinarians are so that inspection can take place. If we had billions of dollars to have veterinarians go to every farm, maybe they could accomplish their goal; but we do not have that kind of money. The farmers do not have the money. They are not going to spend it. So they would be risking public health by refusing to have the process work the way it was designed. Have the animals go to the slaughter house, be inspected.