The National Farmers
Union commends USDA for releasing the proposed rules of the game for
implementing mandatory country-of-origin labeling (COOL). Many concerns
have been based upon the unknown, and now all parties involved can
focus their concerns on something that is more tangible.
USDA was forced to reconsider its earlier estimates that the COOL
law would be costly and burdensome to producers after the estimates
were questioned by numerous farm organizations, consumer groups, members
of Congress and even the General Accounting Office. It is good to
see USDA reduced its initial recordkeeping cost-estimate to about
one-fourth of the amount previously assumed. USDA admitted to inflating
the number of producers subject to the law, the wage rates for implementation
and maintaining records and the number of labor hours necessary to
comply with the law.
Farmers Union is most disappointed that the administration still fails
to acknowledge the law’s benefits to producers and consumers.
Country-of-origin labeling is a marketing tool for U.S. farmers and
ranchers, who produce the best products in the world. The labeling
law would give U.S. producers the opportunity to stand behind the
products they produce, similar to the differentiation processors and
retailers seek when they brand products to gain greater market share.
It is frustrating that USDA continues to ignore data on the benefits
of COOL, yet continually overstates the costs associated with the
mandatory COOL law. USDA’s cost estimates are based more upon
assumptions than its belief that there are no tangible benefits to
producers or consumers, when at least four academic studies have concluded
that consumers want and are willing to pay a premium for U.S.-labeled
products.
National Farmers Union also is concerned that there are no set recordkeeping
requirements for livestock producers, yet meatpackers would have legal
access to producer records that prove where animals were born, raised
and slaughtered. This is like the proverbial fox guarding the henhouse.
We were pleased to see that the rule explicitly states that retailers
will not be held liable for the information they receive from suppliers
relative to country-of-origin, which is a rumor NFU has worked to
clarify from the beginning. The rule does state the retailers will
be held liable for purposefully changing country-of-origin information
they receive, which is spelled out in the statute.
Now that the proposed rule is out, the efforts by those who have attempted
to weaken and delay the law are undermined. It is time for Congress
to work with the agriculture Dwepartment and all stakeholders to finalize
the rule as originally intended by Congress.
