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BEEF'S COW CALF WEEKLY    November 21, 2007  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> 2007 Thanksgiving Dinner Bill Increases
> Aussie Scientists Find Muscling Gene
> Avoid Nitrate Toxicity When Cold Weather Hits
> CAB Logs Another Record Fiscal Year
> EHD Confirmed In Virginia Cattle
> Falling Ethanol Prices Cutting Plant Profits
> Farm Bill Action Stalls In The U.S. Senate
> Farmland Values Continue To Rise
> Firm Introduces Motor Oil From Beef Tallow
> Invasive Plant Alters Soil
> Nature Tourism Help Is Available Online
> New Studies Confirm Effectiveness Of E. coli Vaccine
> Pennsylvania Stops Dairy Labeling
> Philippines Allow Full Access For U.S. Beef
> Rancher Testifies On Death Tax
> Range Beef Cow Symposium XX Is Dec. 11-13
> Schering-Plough Completes Acquisition Of Intervet
> Tennessee Producers Have Tax Considerations
> Texas Farm Bureau Group Seeks Beef-Checkoff Increase
> Three Ominous Indicators Point To Drought In 2008

   
      2007 Thanksgiving Dinner Bill Increases

Menu items for the traditional Thanksgiving dinner with turkey, stuffing, cranberries, pumpkin pie and all the trimmings will cost more this year, but remain affordable, according to the American Farm Bureau Federation (AFBF).

AFBF's 22nd annual informal survey of the prices of basic items found on the Thanksgiving Day dinner table found the average cost of this year's dinner for 10 is $42.26, a $4.16 increase over last year's $38.10. The survey shopping list includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10.

The cost of a 16-lb. turkey, at $17.63 or roughly $1.10/lb., reflects an increase of 12¢/lb., or a total of $1.93/turkey compared to 2006. This is the largest contributor to the overall increase in the cost of the 2007 Thanksgiving dinner.

Other items increasing this year included: a gallon of whole milk, $3.88; a 30-oz. can of pumpkin pie mix, $2.13; 3 lbs. of sweet potatoes, $3.08; two, 9-in. pie shells, $2.08; a 12-oz. package of brown-n-serve rolls, $1.89; a 1/2-pint of whipping cream, $1.56; and 12-oz. of fresh cranberries, $2.20.

"Consumers can enjoy a wholesome, home-cooked turkey dinner for just over $4/person -- less than a typical fast-food meal. That's an amazing deal, any way you slice it," AFBF economist Jim Sartwelle says.

First conducted in 1986, AFBF volunteers look for the best possible prices, without taking advantage of special promotional coupons or purchase deals. This year's average cost of $42.26 is equivalent to $20.46 in inflation-adjusted dollars, which has roughly remained constant over the past 17 years.
-- AFBF news release



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      Aussie Scientists Find Muscling Gene

Researchers at Adelaide University in Australia have identified a gene that explains a large increase in retail beef yield. While the gene, called myostatin F94L, isn't the only gene that influences retail beef yield, it has a large effect. Homozygous animals have 13% larger ribeye areas and 4% more total retail yield, according to the research.

The gene is most commonly found in Limousin cattle, researchers say. According to the North American Limousin Foundation (NALF), the gene's high-yielding form occurs in 83% of the Limousin breed, meaning 68% of Limousin animals are homozygous for the trait and 28% are heterozygous.

"This gene appears to explain a much larger proportion of the genetic variation of the (retail yield) trait than any of the currently available gene markers for marbling, tenderness or feed efficiency," says Alex McDonald, general manager of the Limousin Society in Australia. "The discovery of what appears to be a major gene, which can be used to increase retail beef yield in all breeds of cattle throughout the world, is an exciting breakthrough."

Negotiations are underway with an Australian laboratory to provide a commercial gene test for the F94L modification.
-- NALF release

    Avoid Nitrate Toxicity When Cold Weather Hits

Almost as predictable as the coming of the winter season is the horror story of the death of several cows from a herd fed "the good hay" for the first time after a snowstorm. Ranchers who have harvested and stored potentially high nitrate forages such as forage sorghums, millets, sudangrass hybrids, and/or Johnsongrass, need to be aware (not fearful) of the increased possibility of nitrate toxicity, says Glen Selk, Oklahoma State University Extension cattle specialist.
-- Click on headline to read the rest of this story by Cow-Calf Corner Newsletter



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      CAB Logs Another Record Fiscal Year

The Certified Angus Beef® (CAB) brand recorded sales of more than 584 million lbs., the highest mark in its 29-year history, and annual brand sales topped $2.5 billion, for the fiscal year ended Sept. 30, CAB reports. That's the eighth consecutive year of annual sales volumes greater than 500-million lbs.

A record 13.5 million identified Angus-influenced cattle saw an acceptance rate of 16%, for a net 2.15 million certified cattle with an average carcass weight of 808 lbs. The enhanced CAB specifications, implemented in January, improved product consistency by eliminating outliers -- extremely fat or heavy carcasses and the largest and smallest ribeyes.
In addition:
  • CAB Natural increased 180%, with sales at 7.7 million lbs.
  • CAB Prime garnered a 23% increase at 6.4 million lbs.
  • Food service recorded a third-consecutive record sales year, with 12% growth, moving past the 200-million-lb. mark.
  • International sales increased nearly 40% to 51 million lbs.
For more info, visit CABpartners.com or certifiedangusbeef.com.
-- Certified Angus Beef news release

      EHD Confirmed In Virginia Cattle

Samples from cattle in Virginia's Orange County have tested positive for Epizootic Hemorrhagic Disease (EHD), according to the Virginia Department of Ag and Consumer Services.

The agency's Office of Veterinary Services had received reports of cattle with ulcers, sore mouths, reluctance to eat and lameness, all of which indicate the possibility of EHD. Samples sent to the National Veterinary Services Lab in Ames, IA, confirmed the cattle had been exposed to the virus.

EHD, a disease common in white-tailed deer, comes from a virus carried by biting gnats and it typically occurs in warm, dry conditions. EHD-infected cattle may experience weight loss or decreased milk production while symptoms are present. The disease is rarely fatal in cattle and poses no known threat to humans, according to Virginia ag officials.

To be on the safe side, Virginia animal health officials are advising cattle owners to report symptoms that may appear to be EHD to their local veterinarians to reduce the possibility of overlooking more serious diseases. The gnats usually die with the first hard frost. Until then, producers can use external parasite control and keep cattle away from deer, officials say.
-- Virginia Department of Ag and Consumer Services release



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    Falling Ethanol Prices Cutting Plant Profits

Recent declines in ethanol prices have sharply reduced profitability for ethanol producers, USDA's chief economist Keith Collins recently told the House Ag Committee.
-- Click on headline to read the rest of this story by Elton Robinson, Farm Press

      Farm Bill Action Stalls In The U.S. Senate

Action on the U.S. Senate's $288-billion farm bill has likely been postponed until 2008. That after a move to cut off debate this week fell five votes short.

Both parties blamed the other for the delay in action on the Food and Energy Security Act of 2007. Democrats claimed the opposition party was out to deliberately derail the measure, while Republicans derided Democratic efforts to limit the number of amendments to the legislation.
-- Joe Roybal



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      Farmland Values Continue To Rise

Farmland values continued to climb in the third quarter and bankers think that farmland values haven't yet peaked, according to the Third Quarter Ag Credit Survey by the Federal Reserve Bank of Kansas City.

In the survey of 273 banks in the 10-state Tenth Federal Reserve District, the farm income index surpassed the record high set in 2004. Nebraska posted the largest income gains with abundant yields and high crop prices boosting receipts.

According to the survey, bankers feel land values will continue to appreciate after harvest is complete. For more info, go to www.KansasCityFed.org/agcrsurv/agcrmain.htm.
-- Federal Reserve Bank of Kansas City news release

      Firm Introduces Motor Oil From Beef Tallow

Years ago, Conoco advertised its gasoline to consumers by urging them to "put a tiger in your tank." With its introduction of motor oil made from beef tallow, a firm called Green Earth Technologies could consider marketing its product with a tagline such as "beef up your engine."

Called G-Oil, it's the first bio-based, high-endurance motor oil to provide superior performance at competitive prices, reports Doane's Ag Report. While it takes nearly three barrels of crude oil to make one barrel of motor oil, Green Earth says it gets a full barrel of quality motor oil from a barrel of animal fat.
-- Joe Roybal

      Invasive Plant Alters Soil

Invasive plant species such as spotted knapweed aren't only taking a toll on native plant species, but have a detrimental effect on the biodiversity of microbes in the soil, says a new Colorado State University study to be published in the journal International Society for Microbial Ecology.

"Spotted knapweed originated in Eurasia where it's held in check by pathogens, herbivores and other plant competitors that evolved along side of it," says Amanda Broz, a graduate student in Colorado State's Center for Rhizosphere Biology, who conducted the research. "When knapweed was introduced to the American West, it escaped these natural enemies, allowing it to spread and take over many of our native grasslands."

Spotted knapweed arrived on both coasts of North America in the late 1800s as a contaminant of alfalfa seed. In addition to displacing native plant species, the weed increases water runoff leading to erosion and reduces forage for livestock and wildlife.

Researchers collected soil samples from areas near Missoula, MT, where spotted knapweed is particularly problematic, infesting more than 4.7 million acres in the state. In areas with very high-densities of spotted knapweed, there was 80% less DNA of fungi than areas with low-densities of spotted knapweed. Even areas with a low-density of spotted knapweed showed changes in the amount and types of soil microbes naturally found in the area.

Soil microbes can have a profound influence on molecular and biochemical processes in individual plants, plant community and ultimately the entire ecosystem. The disruption of the balance between native plants and microbial communities in the soil can have a negative effect on native plants while benefiting invasive species.

"A better understanding of the interactions between native plants, invasive species and the native soil community will help in developing more effective strategies in managing invasive species and restoring the landscape to its natural state," Broz says.
-- Colorado State University release



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    Nature Tourism Help Is Available Online

Your field of dreams may be for the public to come to your ranch or farm to enjoy a hayride, cut a Christmas tree, watch birds or partake in any number of outdoor activities. But improper planning could make it your nightmare, says Miles Phillips, a Texas Cooperative Extension recreation, parks and tourism specialist.
-- Click on headline to read the rest of this Texas A&M University release


      New Studies Confirm Effectiveness Of E. coli Vaccine

Two University of Nebraska-Lincoln studies have found that a vaccine product containing type III secreted proteins of Escherichia coli O157:H7 effectively reduces the probability for cattle to shed E. coli O157:H7 while also reducing E. Coli colonization of the terminal rectum under conditions of natural exposure. This is the first step in its evaluation as an effective intervention for food and environmental safety.

David R. Smith, DVM, PhD, one of the authors of the studies, says: "Together these studies provide important information about whether and how this vaccine works in field conditions. We gain confidence that the vaccine is effective by seeing that it reduces fecal shedding and colonization of cattle with E. coli O157:H7, observing the phenomenon of herd immunity, and noticing that greater numbers of doses increases the effect."

In the first study, 480 of 608 same-source steers were randomly assigned to 60 pens (eight head/pen) and one of four vaccination treatments (120 cattle/treatment, two head/pen). The four treatments were: no vaccination; one dose, vaccinated on arrival day; two doses, vaccinated on arrival day and again on day 42; and three doses, on arrival day, day 21 and day 42. The remaining 128 steers were assigned randomly to 12 pens within the same feedlot to serve as unvaccinated external controls.

The study found vaccine efficacy of receiving one, two and three doses of vaccine was 68, 66 and 73%, respectively, compared with cattle in pens not receiving the vaccine. In addition, this study found that vaccinating a majority of cattle within a pen offered a significant protective effect (herd immunity) to unvaccinated cattle within the same pen.

In the second study, a blinded clinical trial was conducted on 288 steers randomly assigned to 36 pens (eight head/pen), and pens were randomized to vaccination treatment in a balanced fashion within six dietary treatments of an unrelated nutrition study. Treatments included vaccination or placebo. Fecal samples were collected and terminal rectum mucosal (TRM) cells were collected for culture. Researchers found vaccinated cattle were 98.3% less likely to be colonized by E. coli O157 in TRM cells.

Both studies can be found in the Journal of Food Protection, Volume, 70, No.11, pages 2561 and 2568.
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      Pennsylvania Stops Dairy Labeling

The Pennsylvania ag department will stop dairies from labeling milk containers with hormone-free labels in a precedent-setting decision being closely watched by not only the dairy industry, but beef as well.

The order, effective Jan. 1, stops dairies selling milk in Pennsylvania from advertising that their product comes from cows that have never been treated with rBST, or recombinant bovine somatrotropin. The product has been used in dairy cows for more than a decade and since it can't be detected in milk, there's no way to test for its use, the Associated Press reports. State ag secretary Dennis C. Wolff said advertising one brand of milk as free from artificial hormones implies that competitors' milk is not safe, and often comes with what he said is an unjustified higher price.

The order also bars other kinds of "absence labeling," including claims that milk is free of pesticides or antibiotics, which all milk normally is.
-- Burt Rutherford

      Philippines Allow Full Access For U.S. Beef

The Philippines have fully opened its market to U.S. beef and beef products of all ages. Previously, imports of U.S. beef and beef products were restricted to boneless beef and offals from cattle less than 30 months of age.

Acting USDA Secretary Chuck Conner applauded the move and said: "The Philippines has set the standard for other Asian nations, and we will continue to press for full market access throughout the Pacific Rim."

In May 2007, the World Organization for Animal Health (OIE) formally classified the U.S. as a controlled-risk country for BSE. The designation confirms that U.S. BSE regulatory controls are effective and that U.S. beef and beef products of all ages can be safely traded.

The U.S. exported $4.9 million of beef and beef products to the Philippines in 2003. U.S. beef exports to the Philippines reached $6.3 million in 2006 when partial market access was achieved. Under this new agreement, USDA estimates that U.S. beef exports to the Philippines could potentially double in 2008.

More than 100 countries now allow the entry of at least some U.S. beef and beef products.
-- USDA news release

      Rancher Testifies On Death Tax

In testimony last week in Washington, D.C., Nevada rancher Dean Rhoads described the devastating effects of the federal estate tax.

Dean and wife Sharon own and live on a ranch established by her parents in 1943. "My mother-in-law died in 1976. My father-in-law paid a total estate tax of over $300,000. To do this, he could not afford to keep the ranch where my wife and I and our two daughters lived. Losing this ranch and our home was not only a personal blow, but it was devastating to our operation," Rhoads told the Senators.

When his father-in-law died in 1995, there was no more land left to sell to pay the Death Tax of more than $340,000. So they borrowed the money and are paying more than $18,000 a year to the IRS.

"It's difficult, but we can deal with the variables of weather, drought, labor shortage, market conditions and day-to-day business expenses such as the increasing price of fuel," Rhoads said. "But if you continue to add the specter of the burden of this unfair tax -- if we have to pay this much a third time as a family for one ranch -- I don't have much optimism for our future."
-- NCBA Cattlemen's Capitol Concerns

      Range Beef Cow Symposium XX Is Dec. 11-13

The 20th edition of the biennial Range Beef Cow Symposium, a cooperative program produced by the Extension and animal science faculty of South Dakota, Wyoming, Nebraska and Colorado, is set for Dec. 11-13 in Fort Collins, CO. If you're a cow-calf producer interested in practical production and management info, this is one educational meeting that is a must.

Set for The Ranch in the Larimer County Fairgrounds and Events Complex, the meeting offers info in the categories of: industry issues; consumers, products and markets; cow-calf nutrition; management practices; reproductive management; animal health; cattle selection and genetics; range and forage management; and markets and marketing. A highlight of each symposium is the Bull Pen Sessions, which are held each evening of the meeting and offer participants the ability to meet with presenters in small-group sessions.

For a detailed look at the program or to register, visit: www.rangebeefcow.com or ansci.colostate.edu/.
-- Joe Roybal

      Schering-Plough Completes Acquisition Of Intervet

Schering-Plough Corp. (www.schering-plough.com) announced Monday the completion of its acquisition of Organon BioSciences N.V. from Akzo Nobel N.V. for more than $16 billion in cash. Organon BioSciences is comprised primarily of Organon, a human health business, and Intervet, an animal health business.

The transaction makes Schering-Plough a global leader in animal health, a news release says. "We increase our science strength, and we increase our scale in animal health," says Fred Hassan, Schering-Plough chairman and CEO. "This greatly increases the value we will bring to customers. We see this strong combined animal health unit as a key strategic part of our integrated business that will contribute to long-term high performance."

Schering-Plough's agreement to acquire Organon BioSciences was announced on March 12.
-- Schering-Plough news release

      Tennessee Producers Have Tax Considerations

With the devastating drought in the Southeast forcing herd reductions and herd liquidations, many cattle producers have questions about the tax implications of the sales.

For producers in Tennessee, an IRS provision kicks in that will help, Jerri Lynn Sims, farm management specialist with the Tennessee Extension Service, told the Tennessean newspaper. With all 95 Tennessee counties declared a federal disaster area, Code Section 1033(e) offers the likelihood of relief.

"This code allows for the deferral of gains realized from involuntary conversion, including sales due to weather-related conditions of livestock held for breeding, dairy or draft purposes," Sims says.

Gain is deferred by purchasing replacement livestock of the same kind within four years. "This only applies to sales in excess of what you normally would cull," Sims said. "This code doesn't apply to market animals -- calves -- that were sold early, only breeding animals."

For more info, talk with your tax advisor.
-- Burt Rutherford

      Texas Farm Bureau Group Seeks Beef-Checkoff Increase

The Texas Farm Bureau (TFB) Resolutions Committee voted last week to pursue an increase the Beef Promotion and Research Checkoff from $1 to $2/head to offset the effects of inflation since the program started in 1985. Voting delegates will take action at the TFB state convention in Waco, Dec. 1-3.

Noting that funding commodity promotion programs is important to Farm Bureau members, TFB vice president Bobby Nedbalek said: "We've seen the benefits we've received from the checkoff as it has been and feel justified to increase the checkoff contribution to do more promotion of beef."

Among a host of other resolutions set for consideration in Waco are:
  • Request immediate funding to eliminate fever ticks from the temporary preventive quarantine areas in Texas and to prevent their spread throughout the U.S.
  • Address right-to-farm laws, noting anyone moving into a farming area shouldn't have the right to sue an ag producer because of dust, noise, odors or drift so long as the property had been in operation before the new resident moved in.
-- Southwest Farm Press

    Three Ominous Indicators Point To Drought In 2008

If you believe in omens, 2008 may be the wrong year to grow dryland corn in the Midwest, says Elwynn Taylor, Iowa State University Extension climatologist. He cites three indicators:
-- Click on headline to read the rest of this story by John Pocock, Corn eDigest.



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