Source: Rita Jane Gabbett, MEATINGPLACE, 11/18/11

Congress gave final passage Thursday for an agricultural appropriations bill that would, among other things, block the U.S. Department of Agriculture from finalizing parts of its proposed rule on livestock and poultry marketing, handing meatpackers and poultry processors a big win in their battle against the rule. The bill now goes to President Obama for his signature.  

The bill essentially forbids USDA from moving forward with rules proposed by its Grain Inspection, Packers and Stockyards Administration (GIPSA) that go beyond the specific mandate of the 2008 Farm Bill, which directed USDA to develop rules in four areas.

“The annual cost to the economy of such rules cannot exceed $100 million and  . . . the items included in the rules must be limited to the specific items described in the Act for which these rules were mandated,” said the report of the House-Senate conference committee that ironed out the differences between the two chambers.  Since USDA had already conceded that some of its rules would cost the economy more than $100 million per year – the federal definition of a “major” regulation – the bill stops USDA from going forward with its more expansive rules.

The Congressional action followed a long campaign by the industry to fight the “GIPSA Rule” proposed in 2010, which it said would cost billions and interfere in the relationship between cattle and hog producers and meatpackers, and between poultry farmers and processors.

The agriculture appropriations measure was part of a $182 billion packing funding domestic agencies and allowing the government to continue spending money until Dec. 16, thus averting for now the threat of a government shutdown.  The bill passed the House by a vote of 298-121 vote Thursday afternoon, and the Senate by a margin of 70-30 Senate later in the evening.

School Lunch
The agricultural bill contained a provision to stop the USDA from trying to produce rules for the school lunch program that would have limited offerings considered unhealthy by menu reformers, including pizza, potatoes, white bread, and the use of salt.  

USDA wanted to crack down on the practice of considering French fries and the tomato paste used in pizzas as vegetables, which could have forced schools to offer more recognizable vegetables to meet existing standards for school lunches.  USDA also wanted to promote whole-grain bread and low-sodium dishes.

User fees, exports
The bill includes just over $1 billion to fund the Food Safety and Inspection Service, which does not include new user fees for meat, poultry and egg inspection, something that had been proposed earlier in the process and was opposed by the meat and poultry industry.

It also fully funds the Market Access Program (MAP) and Foreign Market Development (FMD) at $200 million and $34.5 million, respectfully.

The National Chicken Council and the American Meat Institute issued statements praising Congress.
“AMI is pleased by the agriculture appropriations bill and commends the Congress for maintaining funding for federal meat and poultry inspection and agriculture export promotion, including the U.S. Meat Export Federation and the U.S. Poultry and Egg Export Council,” AMI President J. Patrick Boyle said.  “We also commend lawmakers’ action to prevent GIPSA from proceeding with the most disruptive and costly provisions contained in its 2010 proposed rule.”

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