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Chris Hurt, Extension Economist, Purdue University, is calling for
"a much more optimistic outlook for the rest of 2007 and 2008" within
the cattle industry.
Hurt recounts that cattle prices have been on a roll in recent months.
In the first-half of 2007, per capita beef production was down about 1
percent yet finished cattle prices were up 9 percent. Positive price
signals are part of the outlook as well, including smaller per capita
beef supplies over the next 12 months, a beef breeding herd that is
headed downward, and strong domestic demand. It now appears that 2007
will provide record high finished cattle prices, averaging near $92 per
hundredweight, predicts Hurt.
Brood-cow producers will also be pleasantly surprised by near record
calf prices this fall and winter as both the optimism of finished cattle
prices and the recent sharp drop in corn prices are reflected in upward
adjustments to calf prices, he says.
The numbers in the just released USDA semi-annual Cattle inventory and
monthly Cattle on-Feed reports reinforce the optimism. The total number
of cattle and calves on July 1, at 104.8 million head, is down slightly
from year-previous levels. Beef cow numbers were down by 0.4 percent.
While this is a modest reduction, it indicates that cow-calf producers
have put the expansion phase of the cattle cycle on hold. Beef cow
numbers reached a low in 2004 and expanded a small amount in 2005 and
2006. The reduction of 100,000 beef cows in the last 12 months now puts
numbers back near the lows of 2004. Just as importantly, producers are
indicating that they do not intend to expand the herd in coming months
as there is currently a 6 percent reduction in the number of beef
replacement heifers being held to go back into breeding herds. The
number of cattle placed on feed in June was down 15 percent, and below
pre-report estimates. Placements of cattle weighing less than 700 pounds
were down 27 percent. Even those weighing 700 pounds or more were down
about 3 percent.
While beef cow producers have been pointing to smaller numbers, dairy
producers are thinking bigger as milk prices moved from under $15 per
hundredweight at the start of the year to over $20 this summer. Milk cow
numbers, at 9.15 million head, are unchanged from year-ago numbers, but
the number of dairy heifers being retained to go back into the herd is
up 100,000 head, or nearly 3 percent.
Beef supplies for the next 12 months are expected to be somewhat lower
than in the same period one year earlier. With population growth, this
means per capita supplies will actually be down and provides a basis for
strong finished cattle prices. Nebraska finished steer prices are
expected to average in the $88 to $92 range in the summer quarter.
Prices for the last quarter are expected to be higher, in the $90 to $95
range. For 2008, first quarter prices may fall in a range from $92 to
$96 with the second quarter stretching to $94 to $98. While these are
very strong prices, live cattle futures prices are even more optimistic.
If these forecasts are valid, 2007 will be a record high cattle price
year, exceeding by more than $4.00 per hundredweight the previous record
year in 2005 when Nebraska steers averaged $87.28, according to Hurt.
He goes on to say, feeder cattle and calf prices will feel the upward
price impacts of strong finished cattle prices and more moderated corn
prices. Feeder steers weighing 750 to 800 pounds are expected to average
in the $110 to $115 range this fall. Calf prices will be much more
encouraging to cow-calf producers than had been expected. Last fall and
winter, 500-550 pound steer calves averaged about $120 per hundredweight
at Oklahoma City . For this fall and winter, those prices are now
expected to be in the $130 to $135 range. Eastern corn belt calves tend
to be about $3 to $5 lower.
With the brighter outlook the cattle industry will begin to rethink
their current "smaller is better" strategy. Finished cattle weights will
likely move higher, calves will begin to flood into the feedlots, and
cow-calf producers will begin to think about retaining some of those
heifer calves rather than sending them to market, Hurt concludes.
Also in industry news, the National Cattlemen's Beef Association (NCBA)
wrapped up the Cattle Industry Summer Conference in Denver last Friday
with a meeting of the NCBA Board of Directors. About 800 cattlemen from
across the nation attended the Summer Conference.
NCBA members kept a close eye on Washington, D.C., during the Summer
Conference, as debate heated up on the 2007 Farm Bill, and work
continued on energy legislation. Thursday night, the U.S. House
Agriculture Committee advanced a compromise provision that addresses the
mandatory country-of-origin labeling (COOL) requirements for beef and
many other meat products, set to take effect in September of 2008. While
it does not repair all shortcomings in the existing COOL law, the
compromise measure makes many improvements for the nation's cattlemen.
It greatly eases U.S. cattlemen's concern that proving the origin of
their cattle -- especially in their existing herds - would require
burdensome and expensive record-keeping.
NCBA also announced its regional Environmental Stewardship Awards
Program (ESAP) winners for 2007 at the Summer Conference. Families from
six NCBA regions were honored for innovative practices that protect
land, air and water quality in conjunction with successful cattle
production. A news release on each of the six ESAP winners is available
at: www.beefusa.org/NEWSSixRegionalEnvironmentalStewardshipAwardsAnnounced31752.aspx
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If you care about your reputation as a calf supplier, you have to
care about how calves work for the next segment or link in the beef
chain. Genetics can make a big difference in feedlot and carcass value
potential, but management and environment can be up to five times more
important.
Some cattle can't make the premium quality grades, but most can grade
USDA Choice if you set them up for it.
Marbling, the taste fat in beef and chief factor in quality grade, can
develop early in a calf's life if we let it. Unfortunately, at several
stages of production, some calves are set up to fall short of their
grading potential.To read the complete article, click on the headline
above.
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In this day and age of animal identification and verification,
communication appears to be the primary link to achieve that goal. With
that in mind, ten cattle associations in the southeast have formed a
unique network to help facilitate the entire process for their cattle
producers.
Called the Southeastern Livestock Network, the limited liability
corporation is owned and operated by the cattlemen's associations in
Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina,
South Carolina, Tennessee, Virginia and West Virginia. Their primary
purpose is to protect producer interests in the National Animal
Identification System and provide identification and data management
services for cattlemen, auction markets, and buyers.
The network was created because the southeast has many producers with
small cow-calf operations. Collectively the calves from this region
represent one-fourth to one-third of all the calves annually put on
feed, so they are important to the industry. To read the complete
article, click on the headline above.
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Foot rot is an ongoing problem, especially in the early summer.
With wet conditions, cattle producers can expect even more problems than
usual, according to Dave Sparks, DVM, and Oklahoma State University Area
Extension Food-Animal Quality and Health Specialist.
It is important to know, however, that not all lameness problems are
foot rot and with a little care and planning the incidence and severity
of the problem can be controlled, he says. To read the complete
article, click on the headline above.
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Now is the time to register for the 2007 National Angus Conference
and Tour, a "Heartland Homecoming," set for Aug. 29-31 in Peoria, Ill.
The American Angus Association sponsors the event, along with corporate
partners Purina Mills LLC and Alpharma Animal Health. A day-long
conference program is followed by a two-day tour of Illinois Angus herds
hosted by the Illinois Angus Association.
The conference will feature a slate of top industry experts, and the
Illinois Angus breeders are rolling out the red carpet for the tour at
their various operations. The conference is Wednesday, Aug. 29, and
features experts that will address topics ranging from reproduction and
cow herd efficiencies to producing a high quality end product. Program
speakers include Bill Beal, Virginia Tech; Doug Parrett, Tom Carr and
Larry Berger, all with University of Illinois; Mark Polzer, Certified
Angus Beef (CAB) LLC; Sally Northcutt, Bill Bowman and Jerry Cassady,
all with American Angus Association.To read the complete article,
click on the headline above.
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The Master Cattleman Summit is scheduled for Aug. 9-10 on the
Oklahoma State University Campus in Stillwater.
Open to anyone who wants to attend, David Lalman, OSU associate
professor and Extension beef cattle specialist, says, "The summit is a
great opportunity for producers to come together and learn about the
current concerns in the cattle industry and discuss opportunities they
can use to increase value through marketing and production
decisions."
Interested parties can register online at www.agecon.okstate.edu/cattleman
or call Agricultural Conference Services at 405-744-6489. Registration
is $25 per person.
Sessions for the summit include: Managing Cull Cows for Added Value; A
Packer Buyers Perspective of Quality in Cows; Video of Cows to be
Fabricated; Assessing Risk in Managing Cull Cows for Added Value;
Fabrication and Component Pricing of Cow Carcasses; Improving Your
Bottom Line Through Selection and Culling; Heifer Selection: The Way We
Do It at Davidson Ranch; The Latest in Beef Marketing; Heifer and Cow
Culling Visual Appraisal; Heifer Selection and Cow Culling: Herd
Management Software; Using Quicken to Manage Your Personal and Ranch
Finances; Determining Forage Production at the Farm/Ranch Level; and
Vegetative Index Insurance.
Lalman said there is a block of rooms reserved at the Stillwater Best
Western for your convenience. Be sure to ask for the Master Cattleman
Summit Block. For additional conference information contact Lalman or
Glenn Selk at 405-744-6060. The Master Cattleman Summit is sponsored by
the American Farmers and Ranchers, Risk Management Agency, OSU Food and
Agricultural Products Research and Technology Center, Farm Credit
Services and OSU Master Cattleman program.
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Beef cattle producers in Alabama, Florida, Louisiana and Mississippi
can learn the latest in beef nutrition via an interactive video short
course sponsored by Alabama Cooperative Extension and the Gulf Coast
Beef Cattle Educational Alliance. "The Fall Nutrition Series" will be
offered once a month and is open to any producer interested in learning
more about beef nutrition.
Sessions will run from 6:45-9 p.m CDT, and are slated for July 31, Aug.
28, Sept. 25, Oct. 30 and Nov. 27. More than 15 sites across the state
will host the program. The July 31 session will focus on assessing
cattle's nutritional needs and available feed. . Registration is $50 for
all five sessions or $15/session. For more info, visit www.aces.edu/animalforage/2007fallnutritionseries.php.
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Learn how to address the practical problems of managing your acreage
at a special workshop planned Aug. 27-29 at the Holiday Inn in Riverton,
WY.
Headlining the event will be Joel Salatin, a third-generation
alternative farmer in Virginia's Shenandoah Valley. He believes that
healing the land and making it agriculturally productive can be done at
the same time using principles that are not dependent on size.
He will speak on developing an understanding of the interrelationships
between plants and animals, the need for diversity and how direct
marketing can be a part of vibrant rural communities. Also speaking at
the conference will be Jolene Brown, a professional speaker who brings
humor, hope and helpful ideas for those who want to celebrate life and
learn skills for the human and sometimes humorous side of their
world.To read the complete article, click on the headline above.
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Depending who you ask, alfalfa can be considered a friend or foe for
horses. It is a high quality, highly digestible feed for horses, but so
many myths surround its use that many horse owners underutilize or
misuse it. But a publication on feeding alfalfa hay to horses has been
designed to help. The concise, scientifically-based, user-friendly
publication by the National Alfalfa Alliance shows owners how to match
alfalfa hay to the age, class and activity level of their horse.To
read the complete article, click on the headline above.
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 Gallagher has a field staff of 26 fencing professionals
willing to come to your farm or ranch to review your needs,
troubleshoot your problem or simply discuss your future plans.
Rotational grazing, predator problems, horse fencing or any fence
related issue; we will likely be able to provide you with an effective
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Check out the Gallagher web site for the professional
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