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BEEF'S COW CALF WEEKLY    June 6, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Obama Vs. McCain – What’s The Difference?
> A Chat With Randy Blach On The Beef Economy
> CFTC Proposes Initiatives To Improve Ag Futures
> Climate-Change Regs Carry Huge Farm Price Tag
> Conference Focuses On New Uses For Eastern Red Cedar
> Controlling Thistles By Digging And Grazing
> EPA Accepting Comments On RFS Waiver Request
> Farm Bill Inching To The Finish Line
> Fiscal Year 2009 Budget Passes Senate
> Gas Up For 10th Straight Week; Diesel Dips
> Mandatory Country Of Origin Labeling Defined
> Protect Your Herd From High-Sulfate Water
> Texas Proposes Feral Hog Rules
> Tips For Preventing Pasture Bloat
> Turf Tops Surf In The Battle Of Sub Sandwiches
> USDA Announces July 18 Deadline For LCP And LIP Sign-Up
> USDA Forecasts Record Ag Exports For 2008
> USDA Names Grain Inspection Advisory Committee
> Union Targets Oregon Feedlot; Whole Foods Caves



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    Our Perspective
    Obama Vs. McCain – What’s The Difference?

With the top of the two party tickets now seemingly fixed, we can now – from an ag and, more importantly, a ranching perspective – try to determine what their promised change is going to be. The answers may not be all that comforting, but it always pays to be proactive rather than reactive from a management standpoint.
-- Click on headline to read the rest of this story by Troy Marshall

   
    A Chat With Randy Blach On The Beef Economy

Summing up the state of the cattle business has never been easier: input costs are historically high and likely to climb higher, in a volatile manner that often defies logic.
-- Click on headline to read the rest of this story by Wes Ishmael

      CFTC Proposes Initiatives To Improve Ag Futures

The Commodity Futures Trading Commission (CFTC) has announced several policy initiatives addressing concerns in the ag futures markets. These actions are the result of an April 22 roundtable discussion on issues including the lack of convergence between futures and cash, the impact of higher margin requirements and the role of speculators and commodity index traders.

CFTC asked its Ag Advisory Committee, under the leadership of Commissioner Michael Dunn, to develop solutions for improving convergence. The committee also will discuss how exchanges determine margins, daily price limits and methodologies for setting settlement prices.

The commission will continue to work with ag lenders to facilitate an understanding of financing issues faced by market participants. This is increasingly important as commodity prices have risen and financing margin levels becomes more difficult for producers and commodity merchandisers.

Commissioners voted to withdraw the proposed rulemaking that would have increased federal speculative position limits on certain ag futures contracts and would have created a risk management hedge exemption from speculative limits for ag futures and options contracts.

Another initiative would subject traders to additional reporting and classification. The commission will develop a proposal to require more detailed info from index traders and swaps dealers in the futures markets, and review whether classification of these traders can be improved for regulatory and reporting purposes.

Other commission actions are designed to review and propose revisions to improve ag trade options and provide greater market transparency.

“The commission is committed to ensuring that our agricultural futures markets function properly in their risk management and price discovery roles,” the commissioners wrote.
-- Kansas Livestock Association



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      Climate-Change Regs Carry Huge Farm Price Tag

New climate-change regulations and rising energy prices could increase U.S. farmers’ costs by $6 billion to $12 billion, according to a study conducted by Doane Advisory Services for The Fertilizer Institute (TFI). The study analyzed the energy price impacts of S.3036 (formerly S.2191), “America’s Climate Security Act” (Lieberman-Warner) on eight major U.S. crops and found the legislation would lead to a significant decline in farm income.

“The better-something-than-nothing attitude that seems to have ruled the climate change debate up until now needs to be replaced by a measured look at solutions that don’t threaten such a vital sector of the economy, says TFI President Ford B. West. “Particularly, as the world experiences a food crisis, it’s important that steps to control climate change don’t penalize farmers in the world’s most efficient food production system.”

Senate debate was scheduled to begin this week on the Lieberman-Warner bill, which calls for about a 70% reduction of emissions below 2005 levels by 2050. Estimates indicate the bill would cost the U.S. economy $6.7 trillion over 50 years.

See the study at: www.tfi.org/issues/climate/doanestudy.pdf.
-- TFI release

      Conference Focuses On New Uses For Eastern Red Cedar

“Eastern Red Cedar: From Peril To Profit,” a July 8-9 seminar in Oklahoma City’s Moore-Norman Technology Center, will highlight new uses of Eastern Red Cedar trees.

“A recent study shows by-products from the trees can actually be marketed for profit for landowners, business owners, entrepreneurs and communities,” says Tom Lucas, coordinator for the High Plains Resource Conservation and Development Council, which is hosting the conference.

Speakers will present findings of the recent USDA Red Cedar Study, as well as economic development project ideas, how to manufacture cedar products for profit and new business development using red cedar. Scientist and health professionals will also discuss the benefits to society from the removal of Red Cedar, and its affect on wildlife, water supplies and the health of Oklahomans.

“Landowners now have the opportunity to receive income for the cedar trees on their land to help offset the high cost of their removal. This can also open the door for entrepreneurs and existing businesses to take advantage of the by-products,” Lucas says.

Learn more at www.highplainsrcd.com.
-- Resource Conservation and Development Council

      Controlling Thistles By Digging And Grazing

Once musk thistles come into full bloom, digging is one of the few options left to prevent their seed from spreading, says Bruce Anderson, University of Nebraska forage agronomist. He passes along his first-person experience with musk thistles in his latest “Hay & Forage Minutes.”

“A couple weekends ago I spent some time digging musk thistles out of my pastures at home. Yes – I get them, too, but not very many. I don’t have a lot of pasture so it took me only a couple of hours to dig all the thistles I could find. So don’t feel too sorry for me.

“Part of the pasture I use belongs to a neighbor. When he saw me digging, he came out to visit. He noticed there were a lot fewer thistles in his pastures now compared to what he had a few years ago before I started using them. And I didn’t spray like his previous tenants. He also remembered all the thistles in my own pastures years ago when I first started grazing them. What was I doing?

“I told him I sprayed my pastures the first year because thistles were so thick I couldn’t possibly control them by hand. But I didn’t like spraying and definitely didn’t like spending around $10/acre for spraying. So in subsequent years, all I’ve done is use the shovel. Plus, I pick off the blossoms and carry them home to destroy since viable seeds sometimes still develop even after digging.”

Just as important, he says, is his grazing management. He moves cattle on a timely basis to keep his grasses and legumes healthy, thick and regrowing vigorously. The cattle then do most of the control work for him by offering no bare ground or unshaded area for new thistle seedlings to get started. That’s his secret – reduce seeds available and enhance competition.
-- Bruce Anderson, University of Nebraska-Lincoln

      EPA Accepting Comments On RFS Waiver Request

The Environmental Protection Agency (EPA) is accepting public comments on a petition filed by the State of Texas to reduce by 50% the Renewable Fuels Standard (RFS) mandate for grain-based ethanol production in 2008. This mandate was included as part of the Energy Independence and Security Act of 2007 (EISA) that passed in December 2007.

Comments are due by June 23. EPA requests that comments focus on whether the statutory basis for a waiver of the RFS requirements has been met. Other specific issues open for comment include:
  • Whether compliance with the RFS is causing severe harm to the economy of the State of Texas.
  • Whether the relief requested will remedy the harm.
  • The extent to which a waiver would change demand for ethanol and affect corn or feed prices.
  • The date on which a waiver – if granted – should commence and end.
Visit www.epa.gov/otaq/renewablefuels/rfs-texas-notice.pdf for more info.
-- Cattlemen’s Capitol Concerns



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      Farm Bill Inching To The Finish Line

The Senate passed the farm bill again including the trade title by a vote of 77-15. The bill will be sent to President George W. Bush for an expected veto.

Next week, the House of Representatives and Senate are expected to vote to override the President’s veto again. This is the result of a clerical error in which the farm bill was sent to the President without the trade title. The trade title includes the Foreign Market Development Program, Market Access Program, GSM 102 and 103, and food aid.
-- P. Scott Shearer, Washington, D.C. correspondent

      Fiscal Year 2009 Budget Passes Senate

The Senate passed the FY 2009 budget resolution conference report. The Congressionally passed budget doesn’t include the administration’s proposal for $96 million in new user fees for meat, poultry and egg products inspection programs.
-- P. Scott Shearer, Washington, D.C. correspondent

      Gas Up For 10th Straight Week; Diesel Dips

The U.S. average retail price for regular gasoline increased for the 10th straight week, climbing 3.9¢ to $3.976/gal. Meanwhile, the national average diesel price fell for the first time since May 4, slipping 1.6¢ to $4.707.

For gasoline by region, the East Coast was up by 3.3¢ to $3.97, but prices in the Central Atlantic and New England increased by more than 5¢ to climb to $4.001 and $4.028/gal., respectively. The Midwest was flat at $3.952, the Gulf Coast was up 1.7¢ to $3.846, the Rocky Mountain region gained 3.9¢ to $3.89, and the West Coast jumped 13.7¢ to $4.166. California increased 14.3¢ to hit $4.242.

Meanwhile, diesel dipped in most regions. The East Coast shaved 2¢ ($4.759), New England was flat at $4.846, the Midwest was at $4.643, the Gulf Coast $4.664, and the Rocky Mountains added 2.7¢ to $4.68. The West Coast hit $4.878, while California was at $5.027.
-- Energy Information Administration



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      Mandatory Country Of Origin Labeling Defined

The National Meat Association recently provided this summary of the mandatory country of origin labeling (COOL) law set to go into effect Sept. 30.

The commodities covered by mandatory COOL include:
  • Muscle cuts of beef, lamb, chicken, goat, and pork; and
  • Ground beef, ground lamb, ground chicken, ground goat, and ground pork.
Non-meat ingredients are not a part of mandatory COOL. Also, if the commodity is an ingredient in a processed food item, the covered commodity is then excluded from mandatory COOL.

A processed food item in this case would mean a retail item derived from a covered commodity that has undergone specific processing resulting in a change in the character of the covered commodity, or that has been combined with at least one other covered commodity or other substantive food component (e.g., chocolate, breading, tomato sauce), except that the addition of a component (such as water, salt, or sugar) that enhances or represents a further step in the preparation of the product for consumption, would not in itself result in a processed food item.

Specific processing that results in a change in the character of a covered commodity includes cooking, curing, smoking and restructuring (e.g., emulsifying, extruding, or compressing into patties or meatballs). Examples of items excluded as a covered commodity include teriyaki flavored pork loin, roasted beef, breaded chicken tenders, and beef patties.

For commodities to receive U.S. COOL labeling, the beef, pork, lamb, chicken or goat must be:
  1. From animals exclusively born, raised, and slaughtered in the U.S.;
  2. From animals born and raised in Alaska or Hawaii and transported for a period of not more than 60 days through Canada to the U.S. and slaughtered in the U.S.; or
  3. From animals present in the U.S. on or before July 15, 2008 and once present in the U.S., remained continuously in the U.S.
– National Meat Association

    Protect Your Herd From High-Sulfate Water

Connee Quinn’s terse note to herself from the summer 2002 is as searing as the drought that withered that year’s shortgrass prairie: “Hot and dry,” she wrote. “Lost 12 head.”
-- Click on headline to read the rest of this story by Burt Rutherford and Lance Nixon

      Texas Proposes Feral Hog Rules

The Texas Animal Health Commission (TAHC) this week published proposed regulations to prevent captured wild hogs from creating additional problems, while still giving hunters an opportunity to pursue the animals.

Estimates are that as many as 3 million feral hogs live in Texas and cause millions of dollars of damage. “If these proposed rules are adopted, they will supersede TAHC’s current feral swine regulations that aren’t comprehensive,” says Dee Ellis, Texas assistant state veterinarian. “We know we can’t get rid of feral swine, but we can find ways to deal with the animals so that it benefits all sectors of the industry.”

Deadline for public comment on the proposed rules is July 6. TAHC commissioners will consider the rules for adoption at their July 29 meeting in Austin. Go to www.tahc.tx.us to view the proposed regulations.
-- TAHC release

    Tips For Preventing Pasture Bloat

Pasture bloat is primarily a disease of cattle that graze pastures where legumes make up greater than 50% of the total forage. You may hear pasture bloat referred to as “frothy” bloat due to the large amount of froth or foam produced in the rumen, which the animal has difficulty eructating.
-- Click on headline to read the rest of this story by W. Mark Hilton, DVM, Purdue University

      Turf Tops Surf In The Battle Of Sub Sandwiches

A new book called “Eat This Not That” by David Zinczenko provides an interesting read. On its 384 pages, it juxtaposes on opposite pages various examples of food genres. For instance, a Burger King Whopper with cheese faces off on one page against a McDonald’s Big Mac sandwich. By the way, the Big Mac wins the face-off by virtue of its 220 fewer calories and 18 fewer grams of fat.

One interesting comparison is on pages 130 and 131 where two sandwiches from the Subway chain are compared – a 6-in. double roast beef sub vs. a 6-in. tuna sub. The beef sub weighs in at 360 calories and 7 grams of fat, while the tuna sub has 530 calories and 31 grams of fat. In fact, even with twice the meat – and thus double the protein – a Subway beef sub still has only a fraction of the fat found in its tuna counterpart.
-- Joe Roybal

      USDA Announces July 18 Deadline For LCP And LIP Sign-Up

USDA's Farm Service Agency (FSA) says livestock producers have until July 18 to enroll in both the 2005-2007 Livestock Compensation Program (LCP) and Livestock Indemnity Program (LIP). Sign-up began last September for the programs, which provide aid to livestock producers who suffered eligible losses due to a natural disaster from Jan. 1, 2005 through Dec. 30, 2007.

LIP provides payments to eligible livestock owners and contract growers who incurred the death of livestock because of a natural disaster. LCP provides payments to eligible livestock owners and cash lessees who suffered feed losses or increased feed costs because of a natural disaster. Find more info at disaster.fsa.usda.gov.
-- Cattlemen’s Capitol Concerns

      USDA Forecasts Record Ag Exports For 2008

U.S. ag exports are expected to reach a record $108.5 billion for FY 2008. The latest USDA quarterly forecast calls for a $7.5-billion increase from February’s record forecast, and $26.5 billion above the final 2007 export level. Grains and animal products account for two-thirds of the export gains.

“U.S. producers are on track to export a record 63-million tons of corn, and set new export volume and value records for pork,” says USDA Secretary Ed Schafer. “Export volumes and values are also up for many horticultural products with sales growth to Canada and the European Union being exceptionally strong.”

Asia continues to be an important growth market for U.S. ag commodities, with U.S. exports to China forecast to hit a record $10.5 billion, up almost $3.4 billion from 2007. Canada and Mexico remain the top U.S. markets worldwide with exports forecast to reach $30.5 billion in 2008 – $5 billion above 2007.

“Trade agreements have a significant impact on our ability to sell America’s ag products in world markets,” Schafer says. “Canada and Mexico, our two North American Free Trade Agreement (NAFTA) partners, currently buy 28% of the value of America’s ag exports – up from 20% purchased 15 years ago when trade began under NAFTA.”

Ag imports into the U.S. are also expected to hit a record – $78.5 billion. But the $108.5 billion in projected export sales by American farmers and ranchers will net a positive ag trade surplus of $30 billion for the U.S.

Access the summary and full report of USDA’s “Outlook for U.S. Ag Trade” at www.ers.usda.gov or www.fas.usda.gov.
-- Farm Press

      USDA Names Grain Inspection Advisory Committee

USDA announced members of USDA’s Grain and Inspection Advisory Committee. Those appointed as new members are: Thomas E. Bressner, IL; Bennie B. Lackey, Jr., AR; Marvin R. Paulsen, IL; and Jon G. Stoner, MT. Alternates appointed are: Randall R. Deike, WA; Cassie L. Eigenmann, Auburn, IL; and Paul J. Lautenschlager, ND. The advisory committee meets twice a year to advise USDA on the establishment of programs and services under the U.S. Grain Standards Act.
-- P. Scott Shearer, Washington, D.C. correspondent

    Union Targets Oregon Feedlot; Whole Foods Caves

Amidst record high feed and fuel prices, the Beef Northwest feedlot in Boardman, OR, has found itself battling an additional challenge – pressure to unionize from a California-based group called the United Farm Workers of America (UFWA).
-- Click on headline to read the rest of this story compiled by Kindra Gordon



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