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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
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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
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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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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
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“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
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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
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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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www.angus.org
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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
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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
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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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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:- From animals exclusively born, raised,
and slaughtered in the U.S.;
- 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
- 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
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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
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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
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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
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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
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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
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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
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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
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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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