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I have read with interest your article on how the upcoming election
might impact agriculture (“Obama Vs. McCain – What’s The
Difference,” June 6 Beef Cow-Calf Weekly). I disagree with your
contention that agriculture is “far down” on the priority list for
both candidates. Agriculture is a very high priority for me. America
must retain its leadership in agriculture and I am committed to working
with farmers and ranchers to achieve that goal.
I have held rural forums and meetings in most agriculture states and
have released Rural Plans in states across the country. Unlike my
opponent, I supported the recent farm bill though I had hoped it would
have contained more reforms, including tighter payment limits. Senator
McCain and I have established very different records on agriculture.
Indeed, it is one of our major differences.
America continues to have the safest, most abundant and cheapest food
supply in the world. Even with the recent increase in the cost of food,
Americans spend only 10% of their disposable income on food – the
lowest in history. America’s farmers and ranchers are important to the
future of our country and I intend to give agriculture a high priority
in my administration.
Beef producers are a key component in a healthy and vibrant rural
America. By strengthening USDA and working to enhance food safety and
meat processing, my administration will assist the industry in providing
a wholesome and safe product to your customers.
Sen. Barack Obama (D-IL)
Democrat for U.S. president
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At press time, the details remained limited on the latest case of
BSE found and confirmed in Canada, other than she was from British
Columbia. The cow posed no risk to humans as she never entered the food
chain, the government said. The animal was detected through Canada’s
national BSE surveillance program, the Canadian Food Inspection Agency
says, and a comprehensive investigation in an effort to determine the
birth farm of the animal has been launched.
Given the magnitude of other news this week – E. coli recalls
to resumption of trade with South Korea, to the flood damaged corn crop
– perhaps it’s not surprising that this latest BSE case exerted
little impact in the marketplace. But it’s important to note that
expectations are that Canada will continue to find more BSE cows.
-- Troy Marshall
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If you haven't seen the latest Humane Society of the U.S. (HSUS)
video on YouTube, it’s probably worth viewing. It was shot at
the Portales Livestock Auction in New Mexico.
-- Click on headline to read the rest of this
story by Troy Marshall
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Being a low-cost producer is a sacred tenet of our industry, but
what business has ever increased profits by slashing costs? Don’t get
me wrong; watching overhead and expenses is good business, but profits
are generated by investing in making a more valuable product and
marketing it more effectively.
The problem with the whole low-cost doctrine is that it’s defensive in
nature, when the industry should be proactively working on increasing
its value proposition. Do we spend our time thinking of opportunities or
challenges, solutions or problems?
The low-cost mantra assumes that demand can’t be improved, that
marketing can’t capture value, and that individual players are locked
into a commodity system with no power to affect demand or price
received. If that’s your outlook, then the proper solution to tougher
economic times is to hunker down and focus on outlasting your
competitors. But when did survival become the goal of this industry?
Admittedly, this industry has been shrinking for a considerable time, so
sustainability does need to be the first goal of the cow-calf industry.
But ultimately our goal should be profitability.
-- Troy Marshall
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Estimates on the economic losses created by the recent floods are
running as high as $21 billion. And, as the damage to the 2008 crop was
being assessed, corn climbed to hover around $8/bu. Estimates for corn
usage for animal feed, ethanol and export are all in the process of
being revised downward compared to pre-flood numbers. And while
there’s even more uncertainty in the corn market than normal, one
thing we know for certain is that carryover stocks coming out of this
harvest are expected to be at historical lows relative to demand.
USDA's long-term estimates for corn prices now look almost ridiculously
low. And ethanol and energy policy continue to move up the political
hierarchy as consumers struggle to deal with soaring food and energy
prices.
-- Troy Marshall
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Tyson announced the sale this week of its Canadian beef operations
to XL Foods Inc. for $107 million in Canadian dollars. Tyson has already
closed three other plants and slipped from No. 1 to No. 3 in terms of
beef-slaughter capacity in the U.S. The stocks of meatpacking plants
have been taking a severe hit, but Tyson stock rose on news of the sale.
-- Click on headline to read the rest of this
story by Troy Marshall
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South Korean's government continues to walk a fine line on the
resumption of beef imports. On Saturday, it reached an agreement whereby
the U.S. government agreed to supervise a private industry accord with
South Korea to only export beef from animals younger than 30 months of
age.
-- Click on headline to read the rest of this
story by Troy Marshall
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Crops have incurred more than $8 billion in estimated
weather-related damage thus far in 2008, according to the American Farm
Bureau Federation (AFBF). Iowa accounts for about half the damage, but
there are notable problems in at least a dozen other states ranging from
the excessive wetness and flooding in Illinois to drought in California.
-- Click on headline to read the rest of this
AFBF release
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Beef research, controlling feed costs and the value of manure as
fertilizer will be among the topics at the North Dakota State University
(NDSU) Carrington Research Extension Center's annual beef production
field day July 15 from 9 a.m. to noon.
On the program are:- Updates on two producer feedout programs
(Dakota Feeder Calf Show and Eastern Dakota Feedout Project).
- Beef cow-calf research, including fetal programming, natural
supplements and a mineral study.
- Beef feedlot research, including natural supplements, glycerol and
pea feeding.
- Relative value of manure as fertilizer with high nitrogen,
phosphorus and potassium prices.
- Controlling feed costs, competitive feeds and prices, and altering
management practices.
- Update on developments in research and the market demand potential
for super feeds.
- Tour of the center's cattle-handling facilities
- Crop management tours and a noon lunch.
For more info, call
701-652-2951 or visit www.ag.ndsu.nodak.edu/carringt/.
-- NDSU release
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The key drivers in the short-term outlook for U.S. meat exports
include politics, economic variables, domestic production, market
access, consumer trends and competitor developments. Here’s a market
by market analysis:
-- Click on headline to read the rest of this
story by Clint Peck
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The fiscal year 2009 ag appropriations bill passed by the House Ag
Appropriations Subcommittee contains a provision pressing USDA to
expedite the rule governing non-ambulatory cattle – downer cows.
Rep. Rosa DeLauro (D-CT), chairwoman of the House Ag Appropriations
Subcommittee, said, “The repeated revelations of cattle abuse
occurring at livestock auction sites and slaughterhouses are extremely
troublesome. Not only are we again witnessing the inhumane treatment of
cows and the illegal slaughtering of downed cows for the food supply,
but also the distribution of potentially contaminated meat into the
school lunch program.
“USDA must not only publish a proposed rule to close the loophole that
allows downer cattle to be slaughtered for the food supply, but they
must expedite this rule, so it can be implemented immediately.”
This week another video regarding the treatment of downer cows at an
auction site was released by the Humane Society of the U.S. See “Yet
Another HSUS Video Of Downer Abuse Surfaces” elsewhere in this issue.
-- P. Scott Shearer, Washington, D.C.
correspondent
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USDA will release the much-anticipated 2008 acreage report on
Monday. The National Ag Statistics Service (NASS) has announced several
steps it is taking to assess the impact the extraordinary rainfall and
flooding in the Midwest is having on the 2008 crop. NASS will
re-interview producers during the week of June 23 in the affected areas
of Illinois, Indiana, Iowa, Minnesota, Missouri and Wisconsin to get a
more accurate determination of how much of the planted area will
actually be harvested for grain.
-- P. Scott Shearer, Washington, D.C.
correspondent
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BEEF magazine’s annual state of the industry report is now
available online at: beefmagazine.com/advertisers/BEEF%20SOI%202008_0609.pdf.
Penned by Shane Ellis, Iowa State University Extension livestock
economist, the 15-page PDF file provides an overview of the U.S. beef
industry’s current status and prospects, as well as discussion and
easy-to-reference graphics on demand factors, inventory issues by
sector, prices and profitability, industry structure, profitability and
more.
And for further discussion on state-of-the-industry topics, view the
article “2008 & Beyond” at beefmagazine.com/business/0601-experts-weigh-beef-industry-future/.
It includes the opinion and prognostications of four top industry
experts: Bill Helming, Randy Blach, Tom Field and Bill Mies.
-- Joe Roybal
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This spring’s devastating floods in the Midwest may do more than
uproot lives and hammer the corn crop. Authorities say the standing
water left behind, along with rising summer temps, may lead to more
Culex mosquitoes that carry West-Nile Virus.
In 2007, 3,630 people were diagnosed with the disease and 124 died. So
far in 2008, eight people have already been diagnosed in Arizona,
Mississippi, Oklahoma, Tennessee and Texas. In addition, West Nile is a
serious disease in horses and animal cases have been reported in
Alabama, Florida, Indiana, South Carolina, Utah, California, Illinois,
Louisiana and Texas.
For more on West Nile in both humans and animals, go to beefmagazine.com/mag/west_nile_warning/index.html
-- informify.com
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If you can’t attend the 2008 Beef Improvement Federation (BIF)
Annual Meeting and Research Symposium in Calgary, Alberta, next week,
follow the meeting online at www.bifconference.com.
-- Angus Productions Inc.
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The U.S. average retail price for regular gasoline slipped for the
first time since March 24, shaving .3¢ to $4.079/gal. for the week
ending June 23. Retail diesel also fell, by 4.4¢ to $4.648/gal., the
largest weekly decrease since Jan. 21.
For gasoline, the East Coast slipped by .5¢ to $4.047, while the
Midwest shaved just .1¢ to $3.996, the Gulf Coast fell by 1.8¢ to
$3.919, and the Rocky Mountain regional price rose .8¢ to $4.002. The
West Coast added 0.8¢ to $4.46, and California shaved . 75¢ to $4.58.
Meanwhile, diesel was down in all regions, falling by 4.1¢ on the East
Coast to $4.711/gal.; 4.4¢ in the Midwest to $4.574; 5.4¢ in the Gulf
Coast to $4.602, and 3.3¢ to $4.652 in the Rocky Mountains. The West
Coast dipped 3.6¢ to $4.816, while California fell for the third week
in a row, shaving 4.7¢ to $4.922.
-- Energy Information Administration
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More than 130 organizations and companies are calling on USDA to
allow for immediate penalty-free release of non-environmentally
sensitive cropland from the Conservation Reserve Program (CRP). In a
letter to USDA Secretary Ed Schafer, the Alliance for Agricultural
Growth & Competitiveness (AAGC) stated that “stronger measurers must
be taken very soon to ensure that grain and oilseed production more
adequately meets the demand for food and feed.” The letter also
noted:- For wheat, USDA expects global stocks to remain at
historic lows, despite a projected increase in U.S. production. In
addition, disease problems in portions of the U.S. wheat crop currently
being harvested will reduce yields and quality.
- For corn, domestic production is expected to decline by 34 million
metric tons (mt) to 298 million mt in 2008/09, even though biofuel
demand for corn will increase over the same timeframe. This dynamic
helps explain USDA’s estimate that ending U.S. stocks for corn will
fall approximately 50%.
- While production for soybeans will increase in 2008/09, USDA reports
expect that a 14-million-mt increase in production will only raise stock
levels 1.3 million mt.
- Corn/wheat for feed usage are forecast to decrease by more than 12%
for 2008/09. For animal ag to cut production by 12% will require severe
economic hardship on these producers while further pressuring consumer
food prices to move even higher.
Those signing the letter included:
Ag Retailers Association, American Feed Industry Association, American
Meat Institute, National Chicken Council, National Grain and Feed
Association, National Oilseed Processors Association, National Pork
Producers Council, National Turkey Federation, Pet Food Institute, and
U.S. Poultry & Egg Association.
This week, Schaefer said USDA will make a decision in the next two weeks
on this issue.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The latest edition of the North Dakota State University "Beef Cattle
and Range Research Report" is available online. To access the report,
visit www.ag.ndsu.edu/livestock/beef-reports.html.
The page also contains links to previous reports, as well as the most
recent NDSU research in areas related to beef cattle production,
including cow-calf, backgrounding and feeding, and animal health.
A limited number of the CD version of the report also will be available
on a first-come, first-served basis. To receive a copy of the report on
CD, contact Holly Erdmann at 701-231-7513 or holly.erdmann@ndsu.edu.
-- NDSU release
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Bovine tuberculosis (TB) has been detected in two more dairy herds
in Fresno County, the California Department of Food and Ag (CDFA)
announced this week. That brings the current total number of herds
affected to three.
USDA is beginning the process to officially downgrade California’s
bovine TB status from “accredited free” to “modified accredited
advanced,” CDFA says. The drop in status is required by USDA following
detection of two affected herds within 48 months. It means additional
testing requirements will be required on California’s cattle industry
when shipping animals out of state.
CDFA animal disease-control experts are working with USDA to evaluate
dividing California so that part of the state could return to a “TB
Free” status while intensive disease eradication efforts continue in
the affected area of California.
-- Central Valley Business Times
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Eco-labeling is a new certification program similar to the organic
label, but goes beyond the organic concept by reflecting new
land-management practices for the entire farm ecosystem, including
non-crop lands. With funding from USDA's Cooperative State Research,
Education and Extension Service (CSREES), a team of scientists, growers
and environmentalists in Wisconsin developed the "Healthy Grown" label
to reflect this land-management practice to promote balanced ag
management and support broad ecosystem health.
Paul Zedler from the University of Wisconsin, in collaboration with the
World Wildlife Fund and the Wisconsin Potato and Vegetable Growers
Association, is studying the biodiversity and ecological benefit, of
non-crop lands in ag landscapes.
Returning to natural vegetation has the benefit of sustaining
biologically diverse ecosystems and minimizing management costs. The
investigators expanded on an existing integrated pest management model
to understand insect population density and diversity changes among
different habitats. By controlling for beneficial insects, investigators
feel it may be possible to reduce the application of chemical
insecticides. The group is also using bird populations as indicators of
ecological function and ecosystem health.
Farmers who produce Healthy Grown foods participate in demonstrations,
presentations and discussions at field day events to encourage others to
adopt these management techniques. In addition, the project educates
consumers of the link between food grown with healthy land management
practices and ecosystem services. The eco-label lets consumers know that
producers grow foods following specific environmental standards and
practices to ensure ecosystem health.
As a direct result of the team’s work, the Natural Community standard
protocol for certification was developed in 2006. The program includes
identification of non-crop land near crop fields and the selection of
management activities, such as prescribed burning and invasive weed
removal, to increase biodiversity on these lands. The program also
requires farm monitoring to validate increased environmental services.
The certification standard will expand land-management practices into a
broader ecosystem perspective and increase the presence of beneficial
insect species, alternative pest control practices and environment
biodiversity. It will also help reduce the application of chemicals that
are harmful to the environment and costly to producers.
-- CSREES release
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The National Pork Producers Council (NPPC) is calling on USDA to
take steps to provide relief from high feed costs. NPPC in a meeting
with USDA Secretary Ed Schafer asked USDA to:- Release immediately
and without penalty non-environmentally sensitive acres from the
Conservation Reserve Program.
- Allow crop farmers to plant (at their own expense) a harvestable
crop on those acres that could not be planted this spring due to weather
condition, even though the farmer may have collected a disaster payment
on the ground. This action also may require congressional approval, and
we will ask Congress to act.
- Support a waiver of the biofuels mandate (Renewable Fuels Standard)
for ethanol as requested by Texas Gov. Rick Perry.
- Support the elimination of, or significant reduction in, the ethanol
blender's tax credit.
- Support the elimination of, or significant reduction in, the tariff
on ethanol imported into the U.S.
According to NPPC, “If more
crops can’t be planted and if there is no relief from the ethanol
mandate, feed costs will go even higher than the record levels we’re
seeing today, many livestock producers will go out of business, meat
supplies will fall and retail meat prices will rise. That wouldn’t be
good for the livestock industry, American consumers or the U.S.
economy.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Department of Homeland Security has released a draft
Environmental Impact Statement for building a National Bio and
Agro-Defense Facility (NBAF) and will hold public meetings to present
the impact analyses of siteing, constructing and operating the proposed
lab. The public is invited to attend and provide comments on the
National Bio and Agro-Defense Draft Environmental Impact Statement
(DEIS).
Most meeting locations will have an identical afternoon (12:30-4:30
p.m.) and evening (6-10 p.m.) session consisting of the following:
A one-hour open house to view material, register to present oral
comments, and speak informally with subject matter experts (12:30-1:30
p.m. and/or 6-7 p.m.). Presentation on the NBAF DEIS (1:30-2:30 p.m.
and/or 7-8 p.m.). Formal comment period (recorded by a court reporter)
(2:30-4:30 p.m. and/or 8-10 p.m.).
July 24 – Washington, D.C.; Grand Hyatt Bridge Room.
July 29 – Butner, NC; Butner-Stem Middle School Gymnasium.
July 31 – Manhattan, KS; Kansas State University Union Forum Hall.
Aug. 5 – Flora, MS; First Baptist Church Christian Life Center.
Aug. 7 – San Antonio, TX; Radisson Hill Country Resort Ballroom.
Aug. 11 – Old Saybrook, CT; Saybrook Point Inn Ballroom.
Aug. 12 – Greenport, NY; Greenport School Auditorium.
Aug. 14 – Athens, GA; University of Georgia Mahler Auditorium
Go to www.dhs.gov/xres/labs/editorial_0803.shtm
for full details.
-- U.S. Animal Health Association
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The National Cattlemen’s Foundation (NCF), in cooperation with the
National Cattlemen’s Beef Association (NCBA), has launched a disaster
relief effort to assist farm and ranch families impacted by catastrophic
flooding in the Mississippi River corridor and surrounding areas.
Many farm and ranch families in Iowa, Missouri, Indiana, Illinois and
Wisconsin have been displaced from their homes, or remain without power,
potable water, and other utilities. Crop losses are enormous, including
hay and forage normally used for livestock feed, as well as crops
targeted for fall harvest. Downed fences and other property damage have
also resulted in stranded and lost livestock, with thousands of farmers
and ranchers struggling to make repairs and keep their operations
functioning as well as possible.
NCBA is joining with state cattlemen’s associations across the nation
to provide assistance through the NCF. Every dollar contributed will
directly assist families struggling to keep their farms and ranches
operating under these difficult conditions. In conjunction with NCF,
state cattlemen’s associations from states in the affected region will
manage distribution of all funds donated. Donations are tax deductible.
Credit card contributions can be made by calling 1-866-BEEF-USA
(1-866-233-3872) with Visa, MasterCard, and American Express cards
accepted. Online contributions can be made at www.nationalcattlemensfoundation.org,
then selecting “Contribute Now” on the left-hand side of the screen.
Make check contributions payable to NCF, with “disaster relief”
included on the memo line. Donation checks should be mailed to:
National Cattlemen’s Foundation
9110 East Nichols Ave., Suite 300
Centennial, CO 80112 --- National
Cattlemen’s Foundation release
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One of every 3.3 lbs. of pork traded globally is U.S. product, says
the U.S. Meat Export Federation (USMEF). That’s up from one of every 6
lbs. traded globally a decade ago.
Ten years ago, the U.S. exported 1.116 billion lbs. of pork. In just the
first four months of 2008, the U.S. pork industry already has exported
1.389 billion lbs. to trading partners around the globe. In fact, U.S.
pork has set export records for 16 consecutive years, USMEF says.
-- USMEF news release
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Yet another video depicting the mishandling and abuse of downer
dairy cattle in a livestock auction market surfaced this week, further
chipping away at the industry’s contention that such incidents are
isolated. The video, surreptitiously captured by an undercover Humane
Society of the U.S. (HSUS) operative in May 2008, shows spent dairy cows
in a Portales, N.M., livestock auction being repeatedly shocked with
electric prods and dragged by chains.
It was the sixth livestock facility this year ensnared in video
depictions of animal cruelty in the ongoing HSUS campaign to expose what
it calls “widespread abuse of livestock across the country,” which
it contends is “looking less like the industry exception – and more
like the rule.”
USDA Secretary Ed Schafer called the situation “unfortunate” and
deplorable, adding that the weakened conditions of the animals would
have prevented their delivery to a slaughter facility.
“Furthermore, they would not have passed ante-mortem inspection by the
highly trained Food Safety Inspection Service inspection program
personnel. Simply put, the condition of these cattle would prohibit them
from even entering the first phase of a multi-phased process of
approving cattle for slaughter,” he says.
On May 20, Schafer announced a proposed rule to initiate a complete ban
on the slaughter of non-ambulatory cattle that go down after initial
inspection.
“Of the nearly 34 million cattle that were slaughtered last year,
under 1,000 cattle that were re-inspected were actually approved by the
veterinarian for slaughter. This represents less than 0.003% of cattle
slaughtered annually. However, to eliminate further misunderstanding of
the rule and, ultimately, to make a positive impact on the humane
handling of cattle, it is sound policy to simplify this matter by
initiating a complete ban on the slaughter of downer cattle that go down
after initial inspection.”
-- Joe Roybal
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