Audrey Adamson, National Pork Producers Council, 2013 Pork Management Conference, June 18-21 in Denver, Colo.

1. National Pork Management Conference
Washington Update
June 2013
Audrey Adamson
Vice President, Domestic Public Policy

2. Presentation Summary
 The Congress: A House Divided & A Polarized Electorate
 The Demographics
 Follow the Money
 2012 Pork Industry Wins
 What’s Next in 2013
 Farm Bill
 AUDIENCE PARTICIPATION TIME
 ADUFA Reauthorization
 MCOOL Update
 Tax Reform
 Immigration Reform

4. A House Divided: 113th Congress
• House – 233 R’s vs. 200 D’s
• 84 Freshmen (97 in 2010) 35 R’s vs. 49 D’s
• Aggie/Blue Dogs Members Down from 24 to 15; 2010, Down 45 to
24
– 94% of R’s Will Hold Seats Romney Won
– 96% of D’s Will Hold Seats Obama Won
– 50% Won by At Least 20 Points (Record Level)
• Senate – 55 D’s vs. 45 R’s
– 14 Freshmen Senators 10 D’s vs. 4 R’s
– 80% of D’s Are From States Obama Won
– 78% of R’s Are From States Romney Won

5. • U.S. has Become More Polarized
– Regionally/Geographically & Ethnically
• Rural America: Mitt Romney by 20 Points
• Urban America: President Obama by 24 Points
• Obama Carried 27/30 Largest Cities
• What Has Redistricting Done for Next 10 Years?
– Created SAFE Seats---Gridlock?
– Caucasians Voted:
• 89% for Romney
• 56% for Obama
– Minority Groups gave Obama 80% of their Vote
• African-Americans: 93%
• Latinos: 71%
• Asians: 73%
A Polarized Electorate

6. Future Demographics
2012* 2060**
Caucasians 63% 43%
Hispanics 17% 33%
African-Americans 13% 15%
Asian-Americans 5% 8%
* U.S. population of 312 million in 2012
** U.S. Census Bureau projection -- U.S. population of 420 million by 2060
56
%
Who
Eats
PORK
?

7. Future Farm
Bills?
Election 2012 Results RED/BLUE
• BLUE is Where The Votes Are
And Will Be….
• Urban Pork Eaters
• PorkPAC Can WORK!
• Production vs. Urban Food
Messages
• WE CARE Messages
• Changes Accelerate Towards
2025--in Congress & in Ag
Committees
• How Do We Meet the
Challenge?
• How Do We Change?

8. Follow the Money

9. 9

10. • 4 Down…2 To Go
1. Jan2 Fiscal Cliff: Part 1 –Vote
2. March 1Sequestration - $85 B Across the
Board Cuts Over 6 Months,
Except….Entitlements
USDA: Up to 15 Day Furlough Meat Inspectors
3. March 27 Passed: CR FY 13 Passed So No
USG Shutdown
4. April 15 Passed: Budget Resolution FY 14:
NO PAY
 Debt Ceiling Fight, Again
 Fiscal Cliff Part II—Second Set of Budget Cuts for
Remainder of $1.2T Per to in August 2011
Agreement
Follow the Money

11. • In March Shutdown Avoided: CR extended Until
FY 14
– $1.043 T in Non-Emergency Funding-And Sequestration Cut Reduces
$984 B (includes:$100 B in “Emergency” War-Related Funding
 Key Point:
$55M in Funding for Federal
Meat Inspectors RESTORED
Follow the Money:
CR or Government Shutdown

12. 2012 Pork Industry
Wins

13. 2012 Pork Industry Wins
 GIPSA Rule Scaled Back & Stopped
 Mexican Trucking Fix Maintained
 Defeated HSUS Efforts to Mandate Fire Sprinklers in ALL Livestock Barns
 Stopped ABX Legislation BUT…
 NEW: FDA ABX “Voluntary” Guidance Issued
 Completion of Farm Bill Task Force (FBTF)
95% of FBTF Recommendations Included
 MPR Final & Export Reporting Rule Published (2013)
 Stopped Mandatory On-Farm Production Bill (aka. Egg Bill)
 Ethanol Hearing & “Off Ramp” Legislation– Introduced of Renewable Fuels
Flexibility Act
 NPPC Testified Several Times
 Major Earned Media Keep Food Affordable (KFA)—Consumer-Facing Messages

14. THE
MOVEMENT
• Farm Takeover Bill (Eggs)
• RFS Mandate/Feed Avail
• ABX
• Agile Campaign on Other Issues
• Engage Consumer & Other
Industry

16. What’s Next in 2013?

17. 2012 2013 Farm Bill?
17

18. NPPC Supports
 Support New Comprehensive Surveillance System: Pilot for
Pork
 Support New Catastrophic Event Insurance Program Study
 Support Beginning Farmer & Rancher Programs: Pork
Producers
 Support Reductions in CRP to Address Feed Availability
Situation
 Support Increase in Swine Research Funding
 Support Foreign Market Development & Market Access
Programs
 Support Feral Swine Eradication Efforts
 Support Extension Services

19. X Oppose a Livestock Title
X Oppose Egg Inspect. Amendments (aka Farm Production
Mandates Bill)
X Oppose “GIPSA Rule-Like” Provisions; NO Packer Ban;
NO Limit to 40 Hogs per Contract; NO Spot Market
Mandate
X Oppose Antibiotics Ban (PAMTA; DATA)
X Oppose Federal Purchasing Restrictions to Mandate
Production Practices
X Oppose Expansion of Advance Bio-Fuels Definition to
Include Corn-Based Ethanol
NPPC Opposes

20. 2013 Farm Bill
Status
May: Senate & House Ag Markups
Kept Egg Amendments Out:
Partnerships with Protect the Harvest &
KFA
June11 : Senate Passed S. 954 -- 66-27
• House Floor H.R. 1947
• Debate Began Today: Final Vote
Tommorrow?
• Continue Partnerships with Protect the
Harvest & KFA
• Amendments Expected: Egg Products;
Strike “King” Amendment; SNAP; Dairy;

21. Keep Food Affordable
Farm Bill Campaign

22. TAKE ACTION AGAINST
GOVERNMENT
MANDATES
KFA Ads: Conservative “Beltway”
On-Line Publications

23. NPPC & Protect the Harvest
Audio Audio Source SFX
[no spoken audio for 1.5 sec] Stock S-O-S morse code
Attention, Minnesota Farmers and Ranchers. This is a Protect The Harvest action alert. Male VO Morse code repeating periodically
under
H-S-U-S, America’s largest animal rights group, is working with supporters in the US Senate to add
the so-called “rotten egg amendment” to the Farm Bill. This proposal would give federal
bureaucrats unprecedented control over the day-to-day operations of farmers and ranchers.
Male VO Same
The National Cattlemen’s Beef Association, the American Farm Bureau Federation and the
National Pork Producers Council all strongly oppose the rotten egg amendment.
Male VO Same
The NCBA called the proposal the quote one size fits all farm takeover bill unquote. Male VO Same
Now is the time to act. Call Senator Amy Klobuchar at 202 224 3244 and tell her to stop the rotten
egg amendment.
Male VO Same
We repeat: H-S-U-S, the nation’s largest animal rights group, is trying to hijack the federal farm
bill.
Male VO Same
Don’t let animal rights extremists and federal bureaucrats take over our farms. Call Senator Amy
Klobuchar at 202 224 3244 and urge her to oppose the rotten egg amendment.
Male VO Same
Paid for by Protect The Harvest. Protect The Harvest dot com. Male VO No sfx
• Strategic Barnyard
Partnered w PTH—NO
TO EGG
AMENDMENTS!!!
• NPPC; NCBA & AFBF
• PTH Committed to
Helping American
Livestock Agriculture
• Radio Spots in Targeted
States
• NPPC Committed
Strategic Partnership
with PTH
Client: Protect The Harvest
Date: 2 May 2013
Format: Radio
Run Time: 60 seconds
Title: Minnesota Action Alert

24. SO NOW…. Its
Audience Participation
Time…..

25. Once again, the Humane Society of the United States is pushing their Rotten Egg Bill to create federal
legislation to dictate animal housing practices. If passed, this legislation will codify into law the
agreement reached between HSUS and the United Egg Producers to mandate cage sizes for laying hens.
We need to continue to remind our Members of Congress how this legislation creates a slippery slope
through which animal rights groups could create federal legislation affecting housing requirements for
pigs.
Thus far, thanks to your help, the U.S. Pork Industry has been successful in preventing this misguided
legislation from being included in the Farm Bill. We have successfully kept the legislation from being
included during the Senate and House Ag Committee discussions of the Farm Bill, yet HSUS supporters in
Congress continue to push the legislation. Next week an amendment will be introduced to the Farm Bill in
the House of Representatives to consider the HSUS/UEP agreement on the full floor and we need your
help to prevent its passage. For the U.S. Pork Industry to be successful we need to contact Members of
Congress and ask them to vote against the HSUS Egg Bill as part of the Farm Bill.
Please take a moment to call the Capitol Switchboard to be connected with your Member of Congress
and ask them if you can count on their vote against the HSUS Egg Bill. When you are finished with the call,
please contact Bryan Humphreys at humphreysb@nppc.org or 515-864-7987 and let him know what the
office told you.
Capitol Switchboard (855)-723-2847

27. Stop HSUS Egg Bill
• Visit – www.stophsus.com
• Call – (855) 723-2847

28. What’s Next in 2013?

30. 2013 ADUFA REAUTHORIZATION:
Completed
• Provides “fee for service” to speed up Animal Drug
Approvals--
• Barnyard Worked to Secure “Clean” Reauthorization-
– Sens. Gillibrand (NY) & Feinstein (CA)
– Reps. Waxman (CA) & Slaughter (NY)
• Per PEW; CU; EWG; HSUS; etc. Tried to Secure Passage of
Restrictions on ABX Use and New Data Collection Laws
• “Clean ADUFA” Passed Senate in May
– “Thanks” OP-Ed in DSM Register to Sen. Harkin
• “Clean ADUFA” Passed House in June
– Rep. Slaughter Called for Vote: 390-12
• Signed By POTUS

31. MCOOL
• U.S. Country-Of-Origin Labeling Law Violates
U.S.’ WTO Trade Obligations
– U.S. Law Must Comply or Risks Retaliation from
Canada and Mexico
• Proposed Rule Published March 2013
– NPPC Submitted Comments April 11
• Farm Bill Fix Language in House Bill
• Final Rule to WTO May 23
– Final Rule Like Proposed Rule
– CA and MX –Publishes Draft Retaliation List
• KEY: Avoid Retaliation by Trading Partners

32. Immigration Reform
• Animal Ag Producer & Packer/Processors Group Joins
Food Manufacturers Immigration Coalition (FMIC)
• FMIC Supports Comprehensive Reform
• May -FMIC Testifies Before House & Senate Judiciary
Committees
 Senate Judicuary Markup --NO FMIC Amendments
• Full Senate Debate Began June 12
• House Cttee Markup—June 18—Ag Worker Amendment
• Aim FMIC Amendments in House Bills--

33. NPPC Supports: Immigration Reform
• Senate Bill Includes:
• W Visa for Food Manufacturers
• W Visa Allows Workers FT Workers to Obtain a Visa for 18 Months (House is 36 months)
• End of 18 Months, the Worker Has to Complete a “Touch Back” for Specified Time in HOME Country
• Senate Bill Does Not Include :(FMIC Has Offered Amendments to Address These Concerns)
• E-Verify Provisions Are Still Vulnerable
• Includes Language to Maintain Current Functions, Concerns About Identity Theft and Liability for
Employers
• No Safe Harbor Provisions
• If Businesses Comply Fully, Should be Protected Against Fraud and ICE Sanctions
• Gap Between Employment Verification and Labor Laws
• A “Chicken/Egg” Dynamic Exists: Employers Are Prevented From Hiring Verified, Competent Employees
Because of Demographic Restrictions.
• 18 Month Visas Are Insufficient for Higher Skilled Employees
• 6-7 Months to Train an Plant or Farm Employee. Forcing a “Touch Back” After 18 Months Prevents
Employers from Recouping Cost of Training. Three Years is The Preferred for Full Time Employees.
• The House Drafts Includes All Asks by FMIC.

34. Comprehensive Tax Reform: Small
Biz Proposal
• House W-M Small Biz Discussion Draft Released
– Eliminating Special Exemptions for Farms so that They Are Subject to
General Limitation on Use of Cash Accounting Method—So, IF AVG
Gross Receipts of $10 M or More—for 3 prior Taxable Years—Must
Convert over Period of Time to Accrual Accounting
• NPPC Members Raise HUGE Problems:
– Makes Cost of Inventory- Animals in Progress would Convert to Accrual, Thus Taxable
– Receivables from Packers & Pre-Paids, feed & ingredients, also
– Might Require Producers to Borrow Money to Pay
– “Double Whammy” Tax Animals in Progress What if Markets Deteriorate?
• NPPC Signed onto Joint Aggie & Pork-Specific Letters to House & Senate
• NPPC; Producers; Lenders Met w W-M Tax Staff
• House Subcommittee Held Hearing
• More Follow-Up Needed
Why Should Ag be Different than a Biological Vaccine or Steel Company ?

35. Telling Our Story

36. Washington Policy Media Outreach
“Telling Our Story” WE CARE
• NPPC Online
Policy
Publications:
• NPPC: Earth
Day Story
• The Hill “AM”
Takeover
• 13,000+ Clicks

37. “WE Care”
Campaign
• Ran on The Hill’s
Website on April 16th
and 17th
• Linked to
PorkCares.org
• Thanks to Ben Falcon
& Son—In Oklahoma

38. Telling Our Story

39. Thank You
Questions? Comments?
Call/E-Mail: adamsona@nppc.org 202-347-3600

40. 2013 Farm Bill
• Senate Ag Committee Details:
KEPT EGGS OUT OF CHAIRMAN’S MARK, Markup & Final Passage
• MCOOL Repeal Amendment– Offered & Withdrawn
• Organic Checkoff Amendment– PASSED
• Undersecretary for Trade Amendment- PASSED
• House Ag Committee Details:
• GIPSA Repeal Amendment– PASSED, Supported by Ranking
Member
• MCOOL Repeal Amendment– Offered & Withdrawn
• MCOOL Economic Analysis- In Base Text
• Organic Checkoff Amendment- PASSED
• King Amendment– PASSED
– Denham (R-CA) 2nd Degree Amendment -- FAILED 33-13
• Hartzler Amendment (Catfish Inspection)– PASSED

41. 2013 Farm Bill
• House Ag Committee Markup Details:
• GIPSA Repeal Amendment– PASSED Voice Vote,
Supported by Ranking Member
• MCOOL Repeal Amendment– Offered & Withdrawn
• MCOOL Economic Analysis- In Mark/Base Text
• Organic Checkoff Amendment- Passed 29-17
• King Amendment– Passed Voice Vote
– Denham (R-CA) 2nd Degree Amendment -- Failed 33-13
• Hartzler Amendment (Catfish Inspection)– passed
30-15

43. 2012 FDA Regulatory Action on ABX
• Years of Activist Petitions; Lawsuits; Draft Legislation;
Letters to the President; Corporate Pressure Campaigns:
– ABX Overuse in Animal Ag=Causing Crisis in ABX Resistance in Humans
• Keep ABX Working; UCS; PEW; JHU/Bloomberg School
of Public Health; IDSA; NRDC; HSUS; Environmental
Working Group; other Human/Public Health
Organizations
• In 2012 FDA Issued “Voluntary”:
– Guidance for Industry #209
– Guidance for Industry # 213
– 6 Veterinary Feed Directive: Stakeholder Meetings
2013

44. Guidance for Industry #209
• “Production uses” (growth promotion and
nutritional efficiency) of ABX in classes
used in human medicine are injudicious
– Does not call them unsafe
• Requires other uses of these same classes
of ABX be under “veterinary oversight”

45. Guidance for Industry #209
• What does it really mean?
– Most growth promotion uses/dosages of ABX
used in human medicine will likely end within 3 –
4 years
• Unclear if drug companies will do additional research
to support new disease prevention claims
– Feed grade antibiotics that are in classes used in
human medicine will require a VFD
– Water medications and OTC injectables will be Rx

46. • Guidance #209 stated that antibiotics used,
or in classes used, in human medicine
needed to be used under veterinary
oversight
• VFD is FDA’s only regulatory mechanism to
demonstrate veterinary oversight of
antibiotics in feed
New Veterinary Feed Directive

47. Veterinary Feed Directive
• FDA hosted meetings with veterinary and
producers to get input on making VFD more
“user friendly”
– Written for up to 6 months for a production site
(dose, duration, refills)
– Approximate number animals treated, not tons of
feed
– Fax, email VFD forms – no originals required
– Records retained for 12 months

48. Animal Welfare
48

49. July 31, 2012
Sept. 5, 2012

50. MCOOL
Nov. 18, 2011
WTO Panel:
MCOOL Violates
U.S. WTO Obligations
Mar. 23, 2012
U.S.: Appeals WTO
Ruling
June 29, 2012
WTO AB: Upholds Panel
Ruling
May 23, 2013
Implementation Period
Ends
June 2013 – May 2014
Implementation
Proceedings (Estimate)
June – Dec. 2014
Retaliation Proceedings
(Estimate)
• Implementation and Retaliation Proceedings must be Requested by Canada or Mexico
• Estimated Period for Implementation Proceedings Assumes Proceedings before Both the
Panel and AB. If only a Panel Proceeding Occurs, this Phase Would Move Faster
• If U.S. Does Nothing to Implement the AB Ruling (i.e., does not make regulatory or
legislative changes), Canada or Mexico Could Immediately Initiate Retaliation
Proceedings. In This Scenario, Retaliation Could be Authorized by the End of 2013

51. EPA & CAFO Database
Release
• Issue Results from “Sweeheart Settlement” with
Environmental Groups in 2010: Searchable CAFO Database
• NPPC Objects---DHS Objects!
• EPA Agrees to Collects Farm Data, Anyway
– EPA Releases Data per FOIA Request in Early 2013-PEW;
Earth Justice; etc.
• EPA Called NPPC — After Fact……
• What did EPA Turn Over?
– 30 States Provided Data
– 9 Declined (KS & VA sent link to webpage)
– 350+ Documents
– NPDES and State Permit Holders
– Name, Address, GPS Coordinates
– Also: Inspection Reports, Random Notes, Phone and Email,
Employee Names, Integrator Names

52. EPA & CAFO-NPPC Response
• Media Fight Not Permanent Fix
• Bi-Partisan Issue = Bi-Partisan Fixes
• EPA Internal Review Reveals: “Mistakes Were Made”
• NPPC focus:
1. Serious Legal Concerns --EPA Action and Violations of FOIA and Privacy
Statutes
2. Two Letters to EPA Outlining Concerns and Legal Failures
3. EPA Staff Violated Numerous Federal Laws
4. Potential Criminal and Civil Liability (Don’t hold breathe)
• NPPC Working on:
 Bi-Partisan Amendments to Farm Bill Restricting EPA
 Questions During EPA Administrator Confirmation Hearings
 Requested EPA Data “Takeback”
 EPA Will Not Pursue NEW CAFO Rule—Limited Agreement in
Chesapeake Bay