The Stevenson Report

Balancing the Power of Eminent Domain

Eminent domain reform will come up before the Wyoming state legislature in its next session. Committee work has already taken place. This reform process has been prompted by the precedent setting case of Kelo vs New London decided by the U.S. Supreme Court. In order to stem the tide of the abusive application of eminent domain by both governmental and non-governmental entities many state governments have enacted their own limitations on the process in order to protect private property rights. Wyoming's eminent domain laws are in dire need of updates.

USDA's Sound Science, a Moving Target?

The USDA has once again demonstrated its inconsistency. It has sent a proposed rule change dealing with imported cattle from Canada to the Office of Management and Budget for review. This step must be taken before it submits the rule change for public comment.

PRRIP:The Big Giveaway

Wyoming governor Dave Freudenthal has shown us what he really is. The governor made a decision on the Platte River Recovery Implementation Program. He signed the multi-state agreement. The PRRIP looks like a big water giveaway, but it's really worse than that. It guarantees for the lower Platte River in Nebraska a minimum instream water flow provided by Wyoming water. A major purpose of the instream flow guarantee is to help endangered species resident on the Platte River in Nebraska. In accomplishing its goals the PRRIP sets two horrible precedents that will certainly damage Wyoming's future.

Trust the People

Lost somewhere in the debate over whether animal ID should be voluntary or mandatory is the question of what the original purpose of the program was supposed to be. Originally conceived by the United States Animal Health Association (USAHA), the concept of a national animal ID program was later co-opted by the NCBA and the USDA. Forgotten along the way was the question of what problem the program was supposed to solve, and the even more basic question of whether a national animal ID system was the best way to solve it.

Proof of NAFTA's Failure

NAFTA is a failure. That comes as no surprise to some people but now the best evidence is a project promoted as the NAFTA Highway. When NAFTA was created there was debate over whether it would produce prosperity for Mexico. If it did, as its proponents argued, then it would go a long way toward solving the illegal immigration problem. Critics were dubious of such vaulted expectations. Now comes proof of the critics predictions.

Any "V"olunteers?

Wyoming State Brand Commissioner Lee Romsa was recently quoted as saying that the USDA wants to initiate a voluntary animal ID system. They have told him that the program will be "voluntary with a capital V." A permanently voluntary system would be a change from a previously announced mandatory system by 2009. What should we believe?

Synchronized Swimming: How to Make Cattle Prices Go Down

What can the packers do if they want to make their input costs go down? It appears that all it takes is a bogus announcement that they're going to cut their chain speed. A slowdown in chain speed by all packers at the same time would normally indicate there aren't enough cattle ready for slaughter. That would be bullish for the fat market. But the packers figured a way to turn the psychology of the market on its head.

China's MAD Currency Policy

For July of this year our net trade balance deficit of over $68 billion dollars. That means that we bought from foreign countries $68 billion more than they bought from us. The largest contributor to that deficit is our trade with China. With China alone our July deficit was almost $20 billion.

USDA, Working Against the Consumer Interest Again

The USDA has issued a proposal that might end up completely changing the meaning of "grass-fed beef." Although the term "grass-fed beef" has not had a clear definition up until now, the new proposal would make it even more confusing. The phrase now implies that beef described this way was fed only on grass, or at least only on pasture containing mostly grass. The USDA's proposal would allow the feeding of other vegetation in a confined setting. That other vegetation would include some grain.

COOL Proof

In a stunning move Wal-Mart has announced that it will sell only U.S. shrimp in its stores in Alabama, Florida, and Texas. This maneuver has been prompted by consumer demand. Even the biggest retail store in the world has to bend to its customers' desires.

The House Should Be Embarrassed

A little over a year ago, shortly after the USDA promulgated new regulations that would allow live cattle to be imported from Canada, the U.S. Senate passed a resolution of disapproval. Such resolutions are rare. They are allowed by law in situations where a federal agency's proposed rules and regulations pass a certain threshold of economic impact. When that happens the Congress has a limited time in which it can disapprove of the proposed regulations and keep them from being implemented.

Business As Usual at GIPSA - Part IV

Earlier this year in the middle of February all four major packers stayed out of the market for two weeks. That obviously took some coordination. During that period of time the packers depended on their captive supplies to keep their plants going. The word is that they leaned heavily on those feedlots to ship as many cattle as possible even if that meant shipping them green.

Who's Getting Something for Nothing?

The National Animal Identification System continues its march through Congress. Representative Ron Paul (R-Texas) introduced an amendment to the 2007 Ag Approprations Bill that would have stripped all funding for NAIS. The amendment was defeated. NAIS remains funded. Among others, NCBA opposed the amendment, demonstrating their support for NAIS.

Do We All Stand Together?

We have always supported our troops. We have always supported openness and honesty. But now it seems the U.S. Army (to carefully distinguish the Army bureaucracy from the troops themselves) doesn't want to be forthcoming about possible expansion of the Pinon Canyon Maneuver Site (PCMS). Plans have been leaked out but the Army has responded with very little comment.

Economics Doesn't Turn Wrong into Right

We have long advocated for the enforcement of laws already on the books. We have already pointed out the lack of enforcement of the Packers & Stockyards Act. The failure to enforce immigration laws is just as bad. While we applaud the new plan to beef up our border security, it falls short of what is needed. The magnet that attracts illegals to this country is jobs. For over twenty years it has been against the law to hire illegals. It is punishable with a heavy fine. But enforcement has never been a priority.

Honesty is COOL

It has been said that corporations have no soul to save and no rear-end to kick. Do you believe multi-national companies are going to voluntarily label food products when they can continue to outsource cheaper, lower quality products from foreign nations? The debate over voluntary or mandatory country of origin labeling comes down to honesty.

Corporate America's Vanishing Allegiance

The European Union is in tatters, which admittedly is not a bad thing. Yet the particular reasons for its continuing collapse portend a dark future for the continent that once defined Western Civilization. In short, the EU represented a futile attempt to forge a multi-national consensus on almost purely economic terms, purposely devoid of past loyalties to individual nationalism or any vestige of spiritual truth.

Ray Hunkins for Governor!

In just a few months Wyoming voters will have the chance to elect a dynamic and decisive conservative to the Governor's seat in Cheyenne. Ray Hunkins is the man for the job.

The Trade Bubble

When the dot com bubble burst, it left Silicon Valley, California in its wake where most of the dot com tekkies had invested billions. The housing bubble may be on the brink of explosive deflation. And now, how about the trade bubble? If it bursts, the effect will be disastrous.

What USDA Could Learn from Wall Street

Members of Congress who are looking at the mandatory livestock price reporting laws would do well to look at how the New York Stock Exchange (NYSE) handles similar deals.

Business As Usual at GIPSA - Part III

On March 9th the Senate Agriculture Committee held a hearing to discuss the findings of the Office of Inspector General. The OIG report, highly critical of GIPSA, was released in January. Our Senator Thomas adamantly made the point that the Packers & Stockyards Act was originally intended to protect producers. Our thanks go to Senator Thomas. The current head of GIPSA has promised changes. These promises have been heard from others before. Perhaps it is time for some structural changes to be forced on GIPSA. Senators Thomas and Enzi have teamed with Senator Harkin to bring such changes about.

Pickett: A Fight Without Referees

By Dr.C. Robert Taylor, professor Auburn University, Expert witness in Pickett v. Tyson

A few courageous cattlemen, frustrated by USDA's failure to enforce the Packers & Stockyards Act, filed suit in 1996 against the nation's largest beef packer, IBP, now Tyson, alleging that the firm used captive supplies to manipulate the cash market for fed cattle, in violation of the P&S Act.

Business As Usual at GIPSA - Part II

The last month provides a vivid illustration of just how the packers can manipulate cattle prices. The fact that the big four packers, which control more than 80% of the market, are all staying out of the cash market at the same time isn't mere coincidence, while packers were reported to be leaning on captive suppliers to fulfill slaughter needs. Chain speeds have been reduced and plants went dark. We have never seen such "synchronized swimming" by the packers. Consequently, the packers have carved about $8 per cwt off fed cattle prices in just one month's time.

Business as Usual at GIPSA - Part I

In a private meeting the Administrator of GIPSA, James Link, said that he did not feel that the public wanted GIPSA to be a policeman. Link heads the agency recently disgraced by the resignation of Deputy Administrator JoAnn Waterfield under whose auspices the Packers & Stockyards division pretended to investigate complaints and logged normal activities such as letter writing as an investigation in order to keep up the appearance that GIPSA was doing its job. The USDA's Office of Inspector General uncovered the malfeasance.

USDA's Conspiratorial Incompetence

Here in Wyoming, a courageous individual is fighting for his rights. In Robbins v. Wilkie, Harvey Frank Robbins will hold the federal government's employees accountable for a violation of federal statutes. Under the Racketeer Influenced Corrupt Organizations Act (RICO) and the fourth and fifth Amendments to the Constitution, Robbins will get his day in court when the case goes before a jury in Cheyenne.

America's Dangerous Addiction to Foreign Goods, Not Just Oil

President Bush, during his State of the Union address, warned about America's addiction to foreign oil and said, "Keeping America competitive requires us to open more markets for all that Americans make and grow. One out of every five factory jobs in America is related to global trade, and we want people everywhere to buy American. With open markets and a level playing field, no one can out-produce or out-compete the American worker."

Top 10 Reasons Against Mandatory Animal ID

10. Liability Problem.
9. No Clear Congressional Directive.
8. Information Not Passed to the Consumer.
7. No Economic Benefit with Mandatory ID.
6. No Government Sanctioned Monopoly Wanted.
5. Freedom of Association.
4. No Cost/Benefit Analysis.
3. States' Rights.
2. It's Not Necessary.
1. It Doesn't Work.

Free Markets and Competition are Casualties of Political Graft

Political graft is defined as "the attainment of personal advantage or profit by dishonest or unfair means, especially through one's political connections." In today's political arena, it seems that institutionalized bribery has become an accepted business method with little consideration given to the ensuing impact on industries and markets.

Actions Speak Louder Than Words

Back in early December, Secretary of Agriculture Mike Johanns was asked if the Canadian border had to be reopened to cattle because prices in the US were too high, then how low did prices need to go before we closed the border? Mr. Johanns gave the typical politician's response. He answered by saying a lot that didn't address the question.

USDA Grade Stamp is America's Brand!

In 1962 the U.S. Department of Agriculture (USDA) began requiring imported meat, including carcasses, sides and cuts to be labeled with country of origin. In 1980 USDA began grading carcasses exclusively - both foreign and domestic. The country of origin stamp is required to stay with the carcass until it is graded by USDA. After the grade stamp is applied, no regulations exist to ensure the origin stamp remains on the graded product. When meat hits the retail case, whether its foreign or American, it carries the USDA grade stamp.

National ID, It Is Not Inevitable

Proponents of a national mandatory animal identification system are hard at work trying to condition us into thinking that the program is "inevitable". It is not.

Got MPC?

On October 31 the Federal Register carried a proposed rule that would permit a change in the definition of Class I fluid milk allowing the addition of milk protein concentrates (MPC) and to allow cheese makers to use MPC.

Taxation without Representation

When Secretary of Agriculture Mike Johanns announced that the USDA was going to appoint a livestock industry consortium to operate the proposed National Animal Identification System (NAIS), there was no corresponding commitment for the government to pay for it. The fact that there is no funding for the program, highlights some of the questions that remain unanswered.

Economic Patriotism

Implementation of COOL has been delayed again. Failure to pass such a simple and patriotic law just makes no sense. A Congressional conference committee has put in another two year delay, making the new scheduled implementation date Sept 30, 2008.

11th Circuit Grants Tyson "Economic" Eminent Domain

On Tuesday, August 16, 2005, the 11th Circuit Appellate Court overruled an Alabama jury and upheld Judge Strom's decision to overturn the jury's finding that Tyson Fresh Meats Foods, the nation's largest beef packer, used illegal practices to manipulate beef markets. In February 2004, the jury found Tyson liable for $1.28 billion in damages for eight years of market manipulation.

NAIS: Government By Proxy

by Terry A. and J. Randall Stevenson

They want to call it privatization. But it's not. The U. S. Department of Agriculture (USDA) has begun the process of instituting the National Animal Identification System (NAIS) for health and disease tracking purposes in livestock.

America's Sovereignty Is At Stake!

International trade agreements have become intrinsically linked to America's farm subsidy program, which is now being offered up for sacrifice. U.S. Trade Representative Rob Portman's recent announcement that the U.S. will cut farm subsidies by 60% or more is evidence that our domestic farm policy is being homogenized by globalists rather than through the democratic process of Congressional debate and approval harnessed with grassroots support.

Common Threads

Sometimes we have a much easier time understanding something when we can make connections or associations with something else. Then when we have a better understanding, we can be more effective in our efforts. Looking out for our own self interests can dangerously lead us into a myopic ineffectiveness. One of the best ways to broaden our understanding of the problems we face is to look for the common threads that bind these things together with the problems others face.

CAFTA-DR: Outsourcing Sovereignty, Importing Dependence

by Randy Stevenson

The Central American Free Trade Agreement- Dominican Republic (CAFTA-DR) will outsource America's sovereignty and create dependence on foreign agriculture. Farmers, ranchers and feeders should call their Congressmen urging them to protect our representative government and our economy by voting against CAFTA. The House of Representatives will vote soon on the measure, given administration pressure and deal making.

CAFTA-More Than a Trade Agreement

by Terry A. Stevenson

A common claim used by CAFTA proponents is that it is more than a trade agreement. Indeed, government officials have used this phraseology in their attempt to gain Congressional passage of this "trade" pact. In a speech given to the Heritage Foundation on May 16, 2005, Deputy Secretary of State Robert Zoellick stated, "Our domestic debate over the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA) is about much more than trade." The International Trade Administration, an agency of The U.S. Department of Commerce, defends CAFTA-DR by saying, "...CAFTA-DR can be viewed as more than a trade agreement...."

The Balance of Power

When Benjamin Franklin emerged from the Constitutional Convention on September 18, 1787 he was met by a Mrs. Powel, a lady who was very anxious for the results of the Convention. She asked Franklin, "Well Doctor, what have we got, a republic or a monarchy?" He succinctly replied, "A republic if you can keep it." Benjamin Franklin, along with the others who met in Philadelphia to draft a constitution for a new republic, were well acquainted with history. Because of this acquaintance with history Franklin knew how fragile a republic could be. Rome had had a republic that soon deteriorated into an empire with an autocratic ruler. History provided our founders with other examples of the degradation of governments into tyrannies, though they had not begun that way. Franklin's concern grew out of his familiarity with much human history that suggested that good governments don't last long.

Is Competition Necessary?

What has happened to competition as a fundamental principle in economics? In Wealth of Nations, Adam Smith used the terms "competition" or "competitor" literally hundreds of times. Yet many contemporary economists now reject the desirability or at least the necessity of competition as part of economic policy.

Preemptive Regulations

Terry A. Stevenson

Should the government make laws or regulations that keep people from committing crimes before they actually commit them? This certainly sounds like a strange question. But what we are talking about is the concept of preemption. To some the idea of governmental preemption is a scary thought. It is certainly an area where the government could abuse its power if such restrictions are not accompanied by hefty dose of common sense. While the concept of preemptive action on the part of the government may sound quite out of line, there are a number of very common instances where we encounter it in practice every day and consider it normal.

What Would Adam Smith Think?

Terry A. Stevenson

Ronald Reagan's favorite economist, Adam Smith, is often quoted for his support of free trade. Indeed Smith, who wrote Wealth of Nations in 1776, did promote the concept of trade with other countries. However, a closer look at his work demonstrates that the premise behind Smith's desire for free trade was something more basic-to break the power of monopoly. Consider some of the things he said. "By restraining, either by high duties, or by absolute prohibitions, the importation of such goods from foreign countries as can be produced at home, the monopoly of the home market is more or less secured to the domestic industry employed in producing them." Smith's fundamental premise was that monopolies should be prohibited. In his day monopolies were secured primarily through the application of trade limitations. The removal of those trade limitations was not so important to him as the destruction of the monopolies that thrived because of them.

Human Nature and the Maintenance of Liberty

Terry A. Stevenson

The maintenance of liberty requires a correct understanding of human nature. The founders of our country possessed this understanding. They knew well both human nature and human history and drew from that knowledge to craft the Constitution.

Economic Liberty, Chaos, and the Rule of Law

Terry A. Stevenson

Free enterprise is an integral part of America. It is difficult to think of anything more American than free enterprise. Many other countries around the world have tried to emulate American free enterprise with varying degrees of success. Many have long regarded socialism as the primary enemy of free enterprise. Yet by narrowly focusing on one destructive element of a nation's economy they have overlooked another.

Economic Morality

Terry A. Stevenson

The livestock industry is in turmoil. But the main topic of conversation is not drought or disease. Livestock producers have endured chronic losses of money while the entire meat-processing sector has thrived with record profits. Over the past few years the livestock markets have changed so that meat processors no longer purchase livestock by means of competitive bids. Instead, they use direct purchase and private contracts. Many of these contracts are not priced when they are made. They also own or have control of many animals they slaughter well beforehand. As a result the industry buzzes with accusations of market manipulation from producers and counter arguments extolling the virtues of horizontal concentration and vertical integration from the meat packers. Everybody is looking for new ways to solve these problems.