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BEEF'S COW CALF WEEKLY    May 2, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Marketing In A Bear Market
> The Politics Of Ethanol Seem To Be Changing – A Little
> BEEF & Sister Pubs Launch Online Ag Career Center
> A Yankee Farming In Brazil
> ACE – Without Ethanol Retail Gas Would Be Higher
> AVMA Brochure Targets Students
> Beef Checkoff To Change?
> Cattle Buyers Summits Set For MT, TN And NE
> Ethanol Has Minimal Effect On Food Costs, Study Says
> FDA Proposes Drug-Funding Program
> Farm Bill Extended Two Weeks
> Horse Management Workshop
> Legislation Introduced To End Ethanol Program
> Oregon Large-Animal Facility Nearly Complete
> Packer Ban Defeated
> Payment Limitations Under Discussion
> Report Calls For Changes In Animal Ag
> Report Claims Food Safety System Is In Crisis
> Texans Debate Need For Rollback Of Ethanol Mandate
> The Economics Of $4 Diesel And One-Ton Trucks
> These Are Not Your Grandfather's Cows
> Whatever Happened To Irradiation?

    Our Perspective
    Marketing In A Bear Market

I received an email this week from a cattleman who wasn’t feeling particularly optimistic about profitability in his cow-calf program over the next couple of years. He asked how someone could effectively market cattle in a down-trending market where the cow-calf side of the business was losing leverage?
-- Click on headline to read the rest of this story by Troy Marshall



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    The Politics Of Ethanol Seem To Be Changing – A Little

Even though ethanol has been the primary driver in our industry the last couple of years, the beef industry has always been on the outside looking in on the debate. It makes issues like BSE, country-of-origin labeling, industry consolidation and international trade seem trivial by comparison.
-- Click on headline to read the rest of this story by Troy Marshall

   
      BEEF & Sister Pubs Launch Online Ag Career Center

Penton Media’s Ag Group, of which BEEF is a member, has launched a new targeted online career center. Agribizjobs.com (www.agribizjobs.com) offers industry employers a growing, qualified audience of ag professionals, and industry jobseekers with agribusiness-specific, categorized job listings. It’s a joint effort by BEEF and its sister publications, Corn and Soybean Digest™, Farm Industry News®, Farm Press®, Hay and Forage Grower® and National Hog Farmer®.

At www.agribizjobs.com, employers can view complete but anonymous resumes for free, and pay only to connect with a jobseeker. Jobseekers can post resumes in ag-specific employment categories and sign up to receive email alerts when new positions are posted that match their search criteria.

The site’s Anonymous Resume Bank enables both active and passive jobseekers to list their experience and qualifications in a protected environment, allowing them to stay connected to the employment market while maintaining full control of their confidential info.
-- Penton Media release



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      A Yankee Farming In Brazil

Corn & Soybean Digest’s Brazil columnist, Tyler Bruch, 28, will be featured in a special CNBC business news program Sunday, May 4 at 9 p.m. CST. His company, Global Ag Investments, will be profiled. Also, Bruch will explain how he transitioned from being a young, Emmetsburg, IA, farmer to a 50,000-acre farmer in Bahia, Brazil. The program will also be featured, in part, on NBC’s TODAY show May 5. For more details, check out www.cornandsoybeandigest.com.
-- Greg Lamp

      ACE – Without Ethanol Retail Gas Would Be Higher

The American Coalition for Ethanol (ACE) sent a letter to the nation’s governors reminding them that if ethanol weren’t available, retail gasoline prices would be higher.

The letter said, “Record-high energy costs and rising food prices are taking a painful toll on consumer pocketbooks, and this demands thoughtful discussion and attention. Unfortunately, these matters have been exploited by some to pressure federal and state governments to undo policies designed to support ethanol.”

ACE notes that, according to Merrill Lynch analysts, “oil and gas prices would be 15% higher if it was not for the availability of ethanol.”
-- P. Scott Shearer, Washington, D.C. correspondent



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      AVMA Brochure Targets Students

Veterinary students are the primary audience for a brochure produced by the American Veterinary Medical Association (AVMA) titled “Animal Welfare: Seeing the Forest and the Trees,” but anybody who deals with animals may find the info useful.

According to the brochure, science and ethics should be the basis of decisions about animal welfare, as well as a whole-system approach and careful consideration of the consequences of decisions, such as how changes to improve the behavioral aspects of animal welfare may result in detriments to the health aspects.

To see the brochure, log on to www.avma.org/issues.
-- AVMA release

      Beef Checkoff To Change?

Over the coming months, the Cattlemen’s Beef Board (CBB) will request suggested improvements to the $1/head beef checkoff from more than 100 national industry organizations, state beef councils, certified nominating organizations and national breed associations. The effort is a response to a recent meeting between USDA and CBB, where USDA officials spoke with CBB officers about their responsibility to develop and recommend changes to the Beef Promotion and Research Act and Order.

That legislation established the industry’s current $1/head checkoff, and established CBB to administer the program, subject to USDA approval.

“As the program administrator, CBB is authorized by USDA to provide information to the USDA Secretary that could be used to improve the program after 20 years of operation,” says Dave Bateman, CBB chairman. “So the board is asking industry organizations for their suggestions before it completes its report.” The recommendation process is to be completed by Nov. 30.

Within many organizations, that process has already begun. A number of state cattlemen’s associations, as well as the National Cattlemen’s Beef Association, have debated their positions on a possible proposal to increase the beef checkoff assessment from the current $1. Should producers make any significant changes to the law, such as agreeing to an increase, producers would have to vote on the change, Bateman says.
-- Beef Board release



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      Cattle Buyers Summits Set For MT, TN And NE

Coming soon – a series of special cattle industry events designed for anyone in the cattle marketing trade. Cattle Buyers Summits are set for May 15 in Billings, MT; May 22 in Chattanooga, TN; and July 11 in Kearney, NE. The events are designed to introduce the new initiatives of Beef Quality Assurance (BQA) programming.

“These programs are intended for anyone who trades feeder cattle, fed cattle and non-fed beef animals,” says Clint Peck, Montana director of BQA. “Cattle buyers are a very important segment of our industry and it’s our responsibility to keep them in the loop as to what we’re doing in BQA programming.”

Participants will also assess BQA programming and provide input into initializing BQA to better fit the needs of the industry’s cattle marketing segment. Cattle buyers from across the country are being sent special invitations to attend the summits. The speakers include:
  • Jim Warren, 101 Livestock, Aromas, CA
  • Emmitt Rawls, University of Tennessee
  • Kristen Larson, Prewitt & Co., Sidney, MT
  • Gary Smith, Colorado State University
  • Jim Robb, Livestock Marketing Info Center, Lakewood, CO
  • Andy Kellom, Verified Beef, Bozeman, MT
  • John Paterson, Montana State University
  • Eric Moore, DVM, Schering-Plough Animal Health (SPAH).
SPAH is the marquee sponsor of the meetings, for which there is no registration fee but seating is limited. RSVP by calling 406-994-4323 or emailing mharbac@montana.edu. For more info, visit www.mtbqa.org.
-- Clint Peck

      Ethanol Has Minimal Effect On Food Costs, Study Says

Texas A&M’s Ag and Food Policy Center conducted a study on the effects of higher corn prices on food costs. The study indicates that corn prices have little effect on retail food prices. Among the findings are:
  • Higher corn prices do have a small effect on some food items.
  • Important food items like bread, eggs, and milk have high prices largely unrelated to ethanol or corn prices, but correspond to fundamental supply/demand relationships in the world.
  • The livestock industry has borne the costs of higher corn prices, with structure of the industry unable to pass costs on, either up or down the supply chain.
  • The livestock industry is in the middle of this transition, and prices don’t yet reflect the impact of higher costs.
  • Relaxing the renewable fuel standard (RFS) doesn’t result in significantly lower corn prices. This is due to the ethanol infrastructure already in place and the generally positive economics for the industry. The ethanol industry has grown in excess of the RFS, indicating that relaxing the standard wouldn’t cause a contraction in the industry.
-- P. Scott Shearer, Washington, D.C. correspondent

      FDA Proposes Drug-Funding Program

The Food and Drug Administration (FDA) has proposed to Congress programs that provide funding for the review of “pioneer and generic animal drugs.” The Animal Drug User Fee Act (ADUFA) reauthorization would provide funding for the review of new animal drug applications for the next five years.

FDA is also proposing the first generic user fee program – the Animal Generic Drug User Fee Act (AGDUFA). It would support the review of generic animal drug applications and maintain current standards of safety and effectiveness.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Farm Bill Extended Two Weeks

Congress extended the farm bill for another two weeks until May 16, but the House-Senate conference committee on Thursday night made huge progress on a number of fronts. The conference completed the research, rural development, conservation, energy, forestry, crop insurance and livestock titles. The key items remaining to be finalized are the dairy import assessment, payment limitations and adjusted gross income limits, storage facility loans, and a few trade items. The conference is expected to meet again early next week to complete the bill. Next week’s column will include details of the various provisions.
-- P. Scott Shearer, Washington, D.C. correspondent

      Horse Management Workshop

Texas Tech University and Texas AgriLife Extension are teaming up to conduct a Basic Horse Management 101 workshop May 21 at Texas Tech University in Lubbock. Running from 8 a.m. to 4:30 p.m., workshop sessions include basic safety, pasture and hay selection, basic nutrition, general health care and dentistry, body condition scoring, and basic hoof care, among others.

Cost is $40 by May 16 and $50 thereafter. For more info, contact Robert Scott at 806-775-1680 or rj-scott@tamu.edu; or log on to lubbock-co.tamu.edu.
-- Texas AgriLife Extension release

      Legislation Introduced To End Ethanol Program

Rep. Jeff Flake (R-AZ) and Rep. John Culberson (R-TX) have introduced separate legislation to eliminate the current ethanol program. Flake’s legislation, H.R. 5911, “Remove Incentives to Produce Ethanol Act of 2008,” would repeal the renewable fuel standard (RFS), tax credits for ethanol producers, and tariffs on importing ethanol. Culberson’s legislation would eliminate income and excise tax credits for corn-based ethanol.
-- P. Scott Shearer, Washington, D.C. correspondent

      Oregon Large-Animal Facility Nearly Complete

The $12-million large animal hospital and diagnostic imaging expansion at Oregon State University (OSU) is nearly complete, reports Media-Newswire.com. Expected to significantly increase the ability of OSU’s College of Veterinary Medicine to serve the needs of Oregon’s large animal owners and industries, dedication is set for May 3, at 10 a.m., with a free public open house from 10 a.m.-4 p.m.

The new Lois Bates Acheson Veterinary Teaching Hospital and Large Animal Clinic boasts an intensive-care unit and isolation facilities for cattle, horses and other large animals; a multi-purpose, all-weather arena for assessing lameness; a nuclear medicine suite for assessing muscle and tissue damage; teaching and research space for students and faculty; and a new imaging wing that will include the most sophisticated CT scanner in Oregon.

By this summer, the newly expanded facility also will have in place a high-speed treadmill designed to evaluate racehorses and equestrian animals in motion.

For more info, visit oregonstate.edu/vetmed/new/news.htm.
-- Joe Roybal

      Packer Ban Defeated

During Thursday night’s House-Senate farm bill conference committee deliberations, the packer ban provision was defeated. A number of members talked about how this proposal would hurt their region of the country and had unintended consequences.
- P. Scott Shearer, Washington, D.C. correspondent

      Payment Limitations Under Discussion

According to various press reports, the latest proposal for payment limitations would be for the Adjusted Gross Income (AGI) cap to be set at $750,000 for non-farmers in 2009 and lowered to $650,000 in 2010 and $500,000 in 2011. The AGI cap for farmers would be set at $950,000 in 2009, but for every $100,000 over the limit, growers would lose 10% of their farm program payments. Current law is $2.5 million AGI cap. This is a major issue for the administration, which continues to argue for much lower AGI cap.
-- P. Scott Shearer, Washington, D.C. correspondent

      Report Calls For Changes In Animal Ag

The current “industrial farm animal production” system often poses unacceptable risks to public health, the environment and the welfare of the animals themselves, concludes a 2½-year examination conducted by the Pew Commission on Industrial Farm Animal Production in a study released this week (www.ncifap.org).

The researchers called for immediate and significant changes:
  • Ban the non-therapeutic use of antimicrobials in food-animal production.
  • Implement a disease-monitoring program to allow 48-hour trace-back in a fully integrated and robust national database.
  • Implement a new system to deal with farm waste as an industrial operation.
  • Phase out within 10 years the use of such practices as gestation crates and battery cages.
  • Amend and enforce laws to provide a level playing field for producers when entering contracts with integrators.
  • Increase funding for, expand and reform, animal-ag research.
Meanwhile, the Animal Agriculture Alliance (AAA), a broad-based coalition of producers, suppliers, packer-processors, private industry and retailers, expressed dismay at the study and its conduct.

“Despite our best efforts, we were not a meaningful part of the commission's activities. Much of the info and many of the experts offered to the commission were apparently either ignored or not used by the commission when formulating these recommendations. Highly respected experts from major land-grant universities who either made presentations to the commission or conducted research at its request stated that they felt the commissioners had pre-conceived notions about the U.S. livestock industry,” AAA said. View the response at www.animalagalliance.org/email/statement_043008.cfm.
-- Joe Roybal

      Report Claims Food Safety System Is In Crisis

Trust For America’s Health (TFAH) released a report this week claiming the U.S. food safety system is: “way past due for a smart and strategic upgrade.” See the full report at www.healthyamericans.org.

TFAH’s report, entitled “Fixing Food Safety: Protecting America’s food from Farm-to-Fork,” claims strategic inspection practices and state-of-the-art surveillance are needed to help modernize the nation’s food safety system. And fixing the system will require collaborative efforts by producers, processors, distributors, retailers and consumers, combined with strong leadership from the federal state, and local government. The recommendations include:
  • Repeal outdated end-product and processing plant inspection mandates; shift the emphasis of inspection practices to the prevention of outbreaks and illnesses through the entire food production process and supply chain;
  • Create mechanisms that allow inspection practices to keep pace with changes in the industry;
  • Establish uniform performance standards and best practices that are enforceable through actions including detention and recall authority and civil penalty authority;
  • Require food safety education for commercial food handlers;
  • Improve monitoring of foreign imports and international practices; and
  • Strengthen the Food & Drug Administration with increased funding and aligning resources with high-risk threats, with the long-term goal of realigning all federal food-safety functions.
-- Joe Roybal

    Texans Debate Need For Rollback Of Ethanol Mandate

Texas Gov. Rick Perry issued a call to the federal government last week for a 50% waiver from the federal renewable fuel standard (RFS) for ethanol produced from grain. A few others quickly sided with the idea, among them execs from Tyson and the Texas Cattle Feeders Association (TCFA).
-- Click on headline to read the rest of this story by Joe Roybal

    The Economics Of $4 Diesel And One-Ton Trucks

With record-high prices on new vehicles, $4/gal. fuel, and the limited maintenance and repairs that can be performed at the ranch on newer model vehicles, how much does it cost per mile to operate your one-ton diesel ranch/town truck? Extension specialists Ron Torell (Nevada), Willie Riggs (Oregon) and Duane Griffith (Montana) have an answer for you.
-- Click on headline to read the rest of this story by Ron Torell, Willie Riggs and Duane Griffith

      These Are Not Your Grandfather's Cows

Mature weight and milk production of many commercial beef cows are both greater than they were 30-40 years ago, says Glen Selk, Oklahoma State University Extension beef cow specialist. "Many ranchers haven’t recently weighed the adult cows in their herd to know what average mature weight to expect. Therefore, most commercial ranchers would underestimate the mature size of their cows. To expect large, heavy-milking cows to be in moderate body condition at calving and maintain condition through breeding, they must receive more feed than smaller, lighter-milking cows."

A larger, heavier-milking cow requires about 34% more energy on the average for an entire year, he says. Consequently, an operation that was carrying 100 of the smaller cows must carry only 66 of the larger cows in order to utilize the same quantity of forage from that farm or ranch. She also will need 34% more winter hay and supplement to maintain body condition.

"Because we have very high feed and fertilizer prices, this is a time to reconsider herd size to better fit the stocking rates required. Reduced stocking rates will be necessary on improved pastures if lower amounts of fertilizer are applied. The larger mature cow size also impacts the principle of percent body weight needed for heifers to reach puberty. Many ranchers underestimate the target weight for replacement heifers. If the cow eventually will be 1,000 lbs., the target for heifers is 650 lbs.; if she’s going to be the 1,250-lb. cow, then she needs to weigh 812 lbs. going into her first breeding season to expect a high cycling and pregnancy rate," Selk says.
-- Ron Hays, Radio Oklahoma Network

    Whatever Happened To Irradiation?

It was eight years ago on May 16 that irradiated ground beef first became commercially available in the U.S. That was the day that frozen ground beef patties in two-lb. boxes from Huisken’s Meats of Chandler, MN went on sale in 84 grocery stores in the Minneapolis-St. Paul metro area.
-- Click on headline to read the rest of this story by Joe Roybal



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