Washington Insider-- Wednesday

By DTN's Washington Insider

Here's a quick monitor of Washington farm and trade policy issues from DTN's well-placed observer.

Ryan Will Use Committee Retreat to Sketch Outline of Tax Reform

House Ways and Means Chairman Paul Ryan, R-Wis., says that during this week's committee retreat, he and other Republicans will decide how ambitious they want to be this year in reforming the federal tax code. Ryan said the White House has indicated that it is interested in pursuing a corporate tax overhaul but Republicans say that would not address the problems faced by many small businesses that are taxed at the lower individual income tax rates, not the statutory 35% business rate.

"For us, you can't forget the small businesses," said Ryan. "Then, we just want to make sure we can have the best possible reform that creates jobs, that's fair, that gets us in a better global competitiveness position as a country," he added. "It won't be the full throttle tax reform that we all want on my side of the aisle, because the president doesn't want to do all of that. So we'll see if we can find a common ground."

On the other side of Capitol Hill, Senate Majority Leader Mitch McConnell, R-Ky., said the White House agreed that any tax overhaul should not increase revenues coming in to the federal government but administration officials disagreed on the need to reform the individual income tax.

There clearly is a need to prune the federal tax code. The advice to both Congress and the administration is to outline an ambitious, far reaching plan of reform and then see how much of that can be approved. That would be a better approach than to propose changes that only begin to gnaw around the edges of the wildly complex tax code and ultimately accomplish very little.

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Mexico Appears Satisfied with U.S. Move to Open Border to Mexican Truckers

Mexican trade officials are applauding last week's decision by the U.S. Department of Transportation to resume cross-border trucking permits after a pilot program expired last October. "The possibility of offering international cargo service with door to door delivery contributes to achiev[ing] a modern agile and efficient border, further strengthening the productive integration between Mexico and the U.S.," the Economy Ministry said last week in a written statement.

The ministry also called the decision to move forward with permit renewals a "fundamental step" towards meeting the recommendations laid out by a North American Free Trade Agreement dispute panel in 2001 to resolve the cross-border trucking issues.

A pilot program was initially launched in 2007 but was subsequently cancelled by the United States in 2009. Mexico then levied roughly $2.4 billion annually in retaliatory tariffs on U.S. agricultural and manufacturing goods. To resolve the dispute, the United States began a second pilot program that ended last October.

Trade between the United States and Mexico is valued at more than $500 billion annually, and about 70% of this is transported by truck, according to the Economy Ministry. This trade appears to be safe, at least until the next cross-border dispute arises.

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Washington Insider: Ag Gag Laws

There are few issues more controversial than clandestine surveillance of livestock operations accompanied by narratives that allege mistreatment. In many cases, the surveillance violates a producer's property and cherry picks images to emphasize in order to show livestock operations in as poor a light as possible, producers say. Since livestock groups are often well represented in many state legislatures, they frequently try to "do something about it," in the form of "ag gag," laws that provide heavy penalties for "guerrilla" videos and other attempted ag exposés.

However, in spite of the fact that they leave most observers feeling more than a little violated, they also seem to be effective in mobilizing support for animal welfare rules and animal welfare organizations. For many years, States have attempted to ban the recording of undercover videos showing animal farming practices but experts say they are likely to continue in 2015 despite pending constitutional challenges to laws enacted in Idaho.

Press reports indicate that the Washington state legislature will be the first this year to consider a bill that would make it a criminal offense to enter an agricultural production facility that isn't open to the public and, without the owner's written consent or judicial authorization, make audio or video recordings of the operation. Penalties could include up to one year in jail and a $5,000 fine.

The Washington bill is intended to align with the law Idaho enacted in last February, but which is facing a lawsuit by the American Civil Liberties Union of Idaho, Animal Legal Defense Fund and People for the Ethical Treatment of Animals among others. A U.S. District Court judge in September denied the state's motion to dismiss the case.

Animal rights and consumer advocacy groups contend "ag-gag" laws criminalize whistle-blowing and violate freedom of speech. They also are accused of preventing investigations that have led to the improved conditions for farm animals that consumers are increasingly demanding.

For example, an Idaho dairy operation in 2012 fired employees who eventually were charged with animal abuse after the group Mercy for Animals made an undercover videotape.

State sponsors of these laws often claim that they aren't intended to hide practices from the public but intend to prohibit falsified employment applications and trespassing on private property. Representatives of the meat industry question the motive of some animal rights groups, citing a mission to end animal production altogether.

Laws have been enacted in seven states including Iowa, Missouri, Montana and Utah. Since 2011, more than 15 ag-gag bills have failed, including 11 in 2013, according to the American Society for the Prevention of Cruelty to Animals.

"There have been ag-gag laws on the books for ages," Jessica Culpepper, a food safety and health attorney at Public Justice, an organization that represents the plaintiffs in the Idaho lawsuit. "But now there is a consumer demand to have animal products from animals that have been treated humanely. And that is starting to have a pull on food companies."

For example, the restaurant chain Chipotle Mexican Grille recently suspended an undisclosed pork supplier after finding it didn't meet a company animal welfare policy. Starbucks, McDonalds and other restaurant chains have outlined their own animal welfare policies.

With regard to another controversial issue, gestation crates, National Pork Producers Council spokesman Dave Warner recently argued to the press that many hog farms use gestation crates for hogs because they are in the best interest of the animal by protecting Midwestern sows from freezing winter temperatures. They also prevent fights among sows and protect newborn pigs, he said.

"I don't think those state laws are contrary to what consumers want to see," Warner said. "I know any of our members would gladly invite someone to their farm and show them how these animals are raised."

In general, it seems that the issue of gestation crates, among other practices, has moved beyond efforts to build public support. Some say the ag gag laws risk making producers look guilty of something, perhaps something very unpleasant. Perhaps is it time for producers to take the initiative and prepare their own videos that show operations as they really are, with explanations of what is being seen and why.

There may be costs to this strategy, and missteps are likely. But much of animal agriculture is losing ground with the public to well founded, self-important animal rights groups, many who care little for the niceties of private ownership or fact-bound reports.

Some producers say they already have moved to more open information policies, and perhaps others could benefit from similar efforts, as well, Washington Insider believes.

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(GH/CZ)

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