**Animal ID: What's in It for Me?**

*Remarks for Bruce I. Knight, Under Secretary for*

*Marketing and Regulatory Programs*

*American Farm Bureau Federation*

*Salt Lake City, UT*

*January 8, 2007*

Thank you, Steve (Baccus). I appreciate the warm welcome and the
opportunity to talk about animal identification---and what's in it for
producers.

As you know, we are putting in place a [voluntary]{.underline} National
Animal Identification System, or NAIS for short. I hope many of you have
already signed up to participate in the first phase---premises
identification. And if not, I hope to convince you this morning that
it's in your best interest to register your premises---and to
participate in animal identification and tracing as well.

**[NAIS is Top Priority]{.underline}**

Secretary Johanns has made it clear that NAIS is and will remain one of
his top priorities. At USDA, we recognize that identification of animals
in the production chain is a critical tool in safeguarding our nation's
herds and flocks from disease.

NAIS is a voluntary system designed to protect animal health, protect
producers' businesses, protect access to markets, and protect neighbors
who share the rural landscape. Of course, protection begins with the
first step, premises registration.

It's simple, and it's free.

Many people have worked hard and long to lay the foundation for the
voluntary National Animal Identification System. From the beginning, our
goal has been to create a practical system focused on animal health. We
wanted a system that built on the work that states and industry
organizations have already done and the partnerships and working
relationships now in place.

NAIS meets the need for a modern system that can enable us to respond
quickly---ultimately within 48 hours when a disease outbreak occurs.
This is a system that will work effectively for producers and all those
in the livestock production chain.

Successful, voluntary animal identification is a process that starts at
the grassroots, in the communities, with each and every one of you. The
message I bring here today---and I say this without hesitation---is that
we need you in this effort.

**[Need for NAIS]{.underline}**

We all know that the threat of an outbreak in the United States is real.
Everyone can take appropriate steps to protect their animals, but some
risk remains. We're all working to make sure that disease outbreak never
arrives, that agri-terrorism never reaches our shores.

However, it's impossible to completely eliminate the threat or predict
when an outbreak will occur, where it will hit or how severe it will be.
That's why it's so important to establish a modern, effective system to
conduct rapid traceouts and tracebacks when an outbreak occurs---ideally
within 48 hours.

Delays lead to losses---lost livestock, lost markets and lost income.
NAIS will reduce those delays, cut losses and help retain markets.
Responding rapidly, containing the problem and eradicating disease also
reduces unnecessary loss of animals, the loss of labor, and the loss of
irreplaceable breeding stock and bloodlines. And, it prevents economic
harm to your operation or your neighbor's.

**[Where We Stand]{.underline}**

NAIS offers great promise, but only if producers choose to participate.
And the first step is getting premises registered so farmers and
ranchers can benefit when we have information to share.

Secretary Johanns has set some challenging goals for NAIS---including
getting 25 percent of premises registered by the end of [this
month]{.underline}. Today, we have more than 343,000 registered---out of
1.4 million premises. That brings us close to the first goal. But the
ultimate goal---having a critical mass of producers on board by the end
of January 2009---will be much more challenging.

So getting premises registered will be job one for this year---and
critical for 2008 as well. The big push is on commercial operations,
first and foremost. However, the threat of disease is size-neutral, so
we're encouraging everyone who has livestock---even just a backyard
flock or a couple of riding horses---to register their premises.

**[Premises Registration]{.underline}**

As you know, NAIS includes three components---premises registration,
animal identification and animal tracking or tracing. Farmers and
ranchers can participate in one, two or three components.

This is a voluntary system. So it's strictly up to you as a producer to
decide to what extent you want to participate.

Right now we're putting the finishing touches on the structure so that
the state and private databases where identification and tracing data
will be stored can work seamlessly with the federal system. But the key
to NAIS is the first component---premises registration, which costs the
producer nothing.

So, we're looking to convince you---and have you convince your
neighbors---to [take the first step]{.underline} and register your
premises. For NAIS to work, we need to get everyone on board. Farmers
and ranchers have to see how the system will work to help them manage
and market their animals.

**[Changes in NAIS]{.underline}**

I know we need to clarify some issues on NAIS. We've made some changes
in the system---and that's left some folks confused and unsure.

But the truth is we've made those changes in response to feedback we've
received from farmers, ranchers and our partners in the states and
industry organizations. And let me say that we've been very impressed
with the forward thinking and progressive attitude about NAIS among
several producer groups.

We've been listening and making course corrections in line with what
we've heard.

That includes making clear that at the federal level, NAIS is a
voluntary system.

Our objective is protecting animal health. We have the healthiest
livestock in the world---and we want to safeguard our animals.

Producers also want to help protect their neighbors. A modern disease
response system will also enable us to maintain consumer confidence and
competitiveness.

It will help keep markets open here at home and abroad.

**[Voluntary Approach]{.underline}**

We've made it clear---and I can't stress this too often or too
much---that NAIS is a voluntary system. Not a currently voluntary, then
maybe a mandatory system.

That's a voluntary system at the federal level, with a capital "V."

It is designed, pure and simple, to protect animal health, to protect
consumer confidence, to protect domestic and world markets, and most of
all---to protect producer economic investment and income. Participating
is a business decision.

It's the producer's business, and the producer's decision.

Producers can choose the extent of their participation. They can choose
to simply register their premises and stop there. Volunteering to
register your premises today does not commit you to participating in the
tagging or tracing phases of NAIS down the road.

There have been far too many myths, half-truths and misconceptions
circulating about NAIS. I hope we can lay them to rest. This is a
voluntary program centered on animal health.

At the same time, I think there's a strong case to be made for
participation.

Wise producers will make wise choices. That means identifying your
premises so when there's a problem we can get you the information you
need. It also means registering your premises to be a good neighbor and
help protect nearby farmers and ranchers.

Hardships associated with an animal disease outbreak are often felt far
and wide. The faster we can respond to disease, the faster we can
isolate an outbreak, the sooner life gets back to normal for everybody.

The bottom line is simply: Register to Protect: Your Animals. Your
Livelihood. Your Future.

Some day, not too far in the future, major food manufacturers, retailers
and restaurants---as well as individual consumers---will insist on
products from animals whose history can be traced. As you know, already
Canada and Australia are aggressively marketing their identification
capabilities. We want U.S. producers to be competitive.

**[Outreach and Communication]{.underline}**

To make NAIS successful, reaching out to producers and stakeholders is
essential.

Working with the states, APHIS has developed new communications
materials to provide information producers told us they needed before
they could make a commitment to register their premises.

In addition, on November 8, APHIS also launched a redesigned NAIS
website that better describes the system and why it is important. The
website---www.usda.gov/nais---includes a library of all the print
materials available as well as a section on "myths and facts" intended
to dispel misinformation.

Finally, on November 22, USDA published its draft NAIS user's guide on
the web for public comment. This document provides details on NAIS and
is the most up-to-date information resource on animal identification.

**[Confidentiality]{.underline}**

Let me turn to one of the concerns we hear about most
frequently---confidentiality.

We've had producers ask:

-   Are you going to track my animals on my farm?

-   Are you going to give out my private business information in
    response to Freedom of Information requests?

-   Will other federal agencies have access to information about my
    operation?

The answer to all these questions---and many more we have received---is
NO.

We have specifically built safeguards into NAIS to ensure that private
business information is safeguarded. Animal identification and tracing
information will be kept in state and private databases, not with USDA.
It will only be accessed when there's a need to trace animals in a
disease outbreak situation.

Secretary Johanns has said repeatedly that USDA will protect farmers and
ranchers' private information. We take our responsibility for
confidentiality seriously. We will not betray the trust that farmers and
ranchers place in us through NAIS. That trust goes to the core of the
development of NAIS as a true partnership.

**[Costs]{.underline}**

There's also been some concern about costs for NAIS. As I said, the
first step---premises registration---is free. But for those who choose
to participate in the second phase---animal identification---there are
costs involved.

Our goal is to keep those as low as possible by encouraging a wide
variety of options for tags. As you know, we have four tags from two
companies approved for cattle. As more industry working groups develop
recommendations for their species, we expect more companies to develop
products to meet those requirements.

In Phase III, state and industry organizations will maintain the
databases to enable animal tracing. Again costs will vary, depending on
the services the producer chooses to use. Competition among databases
should help to keep costs down.

We expect the payoff for producers to come as the market begins to pay a
premium for animals whose history is known.

**[Phase II]{.underline}**

As I said earlier, our primary push for the next year is premises
registration. But at the same time, we are moving forward on the next
two phases.

As you know, animal identification is currently available for some
species, but not all. The states and private industry continue working
on this component. There are two potential options for animal
identification---individual identification and group or lot
identification.

Only animals that move from their original premises to locations where
they come into contact with other animals---such as livestock auctions,
feedlots or fairs---need identification. Those that just move from their
premises of birth to custom slaughter don't require identification for
health purposes.

With the NAIS numbering system, USDA allocates the 15-digit animal
identification or group numbers to manufacturers authorized to produce
the identification devices.

USDA will authorize manufacturers, industry organizations, service
providers and states to maintain databases on animal identification
numbers issued. These databases are scheduled to become operational in
April.

Keeping information on distribution of the animal identification numbers
or AINs in state or private databases rather than USDA's AIN Management
System is part of USDA's effort to respond to producers' concerns about
privacy. Handling the information this way helps reassure producers
concerned about confidentiality, and, we believe, will help increase
participation in NAIS.

**[Phase III]{.underline}**

Let's turn now to Phase III---animal tracing. States and the private
sector will maintain records to permit animal tracing in the case of a
disease outbreak. Animal health officials will only request animal
movement information from these databases when there is a risk to animal
health.

Producers will be able to choose an animal tracing database to report
animal movements that might pose a significant risk of disease
transmission. Again, this is where competition among various databases
can help minimize costs and maximize confidentiality.

Each of the databases need hold only a minimum of information for each
animal or lot---the premises identification number, the animal
identification number and date of the event and the event itself---move
in or move out.

Databases can include more information, such as the species, age and sex
of the animal. But this information is not necessary for animal health
purposes. Since database creators and providers may offer additional
services, costs will vary.

Over the next few months, we will be working on technical requirements
to integrate private and state animal tracking databases with NAIS. We
expect to complete the Animal Trace Processing System within a few
months.

**[More Details on NAIS]{.underline}**

For folks who want more information, we have details on all three phases
of NAIS---premises registration, animal identification and tracing on
our new website: [www.usda.gov/nais](http://www.usda.gov/nais).

In late November, we published on the website a draft comprehensive user
guide on NAIS for public comment. We'd welcome your thoughts on this.

**[Conclusion]{.underline}**

Over the past year, I believe we've made significant strides with NAIS,
making some needed changes in response to feedback from producers. We've
made progress getting premises registered.

We still have work to do in finalizing the next two phases---animal
identification and tracing. But we are moving forward in partnership
with states and industry groups, building on the foundation that has
been laid over the past several years.

The good news is that NAIS is coming together. The structures are in
place or nearing completion to make it the answer to our need for a
modern system to protect animal health by enabling rapid traceouts and
tracebacks when a disease outbreak occurs. That benefits all those who
have livestock or poultry, protecting their animals, their investment
and their markets.

That's that bottom line. That's what's in animal ID for you.

In the end, a voluntary National Animal Identification System will be
successful---and pay off for American agriculture---because farmers,
industry organizations and states recognize its value, support it and
participate in it.