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BEEF'S COW CALF WEEKLY    July 3, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Readers Respond To Last Week’s Barack Obama Letter
> Tough Times In Canada
> Paralyzed Today Waiting For The Changes Of Tomorrow
> $100,000 Up For Grabs In Missouri Roping Fundraiser
> Beef Exports Continue To Climb
> Beef Well-Positioned For Current Economic Challenges
> Congress Takes Another Break
> EU Farmers Take To The Streets Over Prices
> Ethanol Coproducts Eyed As Fillers In Plastics
> Figuring True Opportunity Cost
> Gasoline Turns Back Up To Set New Record High
> K-State Ag Risk And Profit Conference
> Koreans Keep Protesting U.S. Beef, But Shoppers Buy
> Officials Look At Program That Sparked Korea Protests
> Rains Cut Midwest Corn By 1.2 Million Acres, USDA Says
> Supporters, Opponents Of Texas’ RFS Waiver Line Up
> Ten Senators Call For National Energy Summit
> Transitioning Ranch Ownership Is Symposium Focus
> UGA Technology Kills Foodborne Pathogens
> Who Can Afford Corn? Almost No One, Economist Says
> Ranch Estate Planning Seminar

    To Our Readers
      Readers Respond To Last Week’s Barack Obama Letter

I’m a bit disappointed that you saw it worth noting last week a response from Barack Obama to the June 6 article, "Obama Vs. McCain – What's The Difference." As I am sure you know, Obama never saw or read the article he “responded” to. The last thing Obama has on his mind is agriculture, beyond the ethanol producers in the Corn Belt who populate his campaign team with personnel and money. On the other hand, the windfall taxes he would like to impose on oil would seem to fit nicely for corn and soybean growers who are also making record profits.

As far as all of ag is concerned, they can consider a Marxist future with Obama. Maybe this is a tempting theology for those who yearn for a fair world but those of us who grew up in ag know that the world has never been, or ever will be, fair.

Those who seek this illusion create an environment ripe for despotism. Marxism and agriculture don’t do well together. History has proven this.
Jerry Gunderson
Nevada


I read with interest Barack Obama’s remarks about ag, and my opinion is that he’s got more bull than we do on our ranch.
Barb Brandyberry
Kansas


Apparently, Barack Obama found a staffer who could spell AGRICULTURE. His response to questions at a town hall meeting earlier this year in South Dakota were not too “ag savvy.” Unfortunately, as Troy Marshall’s original article pointed out, neither candidate for U.S. President has a good voting record for ag.

Just remember one thing: Obama is a NOT for horse processing. This factor alone, plus many others, will keep me from voting for him.
C.J. Oakwood
Illinois


It sounds like Mr. Obama has the BS (not bad for a city boy) down already. I believe that strengthening the USDA is his way of saying that he is going to grow government. Just what we in the farming and ranching business need – more government looking over our shoulder.
Mike Sagebiel
Texas



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    Our Perspective
    Tough Times In Canada

While Canada is often thought of as an extension of the U.S. due to the numerous similarities, it’s still eye opening to get a perspective from outside our boundaries.
-- Click on headline to read the rest of this story by Troy Marshall

    Paralyzed Today Waiting For The Changes Of Tomorrow

Change, change, change. At times, it’s difficult to sit through yet another presentation on change.
-- Click on headline to read the rest of this story by Troy Marshall

   
      $100,000 Up For Grabs In Missouri Roping Fundraiser

The “Best of the Best,” Joplin Regional Stockyards’ (JRS) annual fundraiser for Camp Barnabas, a Christian camp for kids and teens with life-threatening illnesses and disabilities, is Aug. 9.

Set for the Missouri Entertainment & Event Center in Springfield, the day includes the JRS “Best of the Best” calf-roping contest with the top National Finals Rodeo qualifiers from 2007 vying for $100,000 in prize money. In addition, “Whiplash” the cowboy monkey from Taco John's television commercials, will display his herding prowess by working sheep.

Also part of the day is a Cattle Industry College and Trade Show, which includes a presentation by Mike Murphy of CattleFax on “Navigating The Changing Business Environment.”

For more info, call 417-548-2333 or visit www.joplinstockyards.com.
-- JRS news release



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    Beef Exports Continue To Climb

Exports of U.S. beef are continuing their upward trend, the U.S. Meat Export Federation (USMEF) says. During the week of June 13-19, U.S. beef export sales exceeded those for the same week in 2003 – the last pre-BSE year – by 12%, reaching 14,700 metric tons (mt), or 32.4 million lbs. Beef export sales also exceeded the previous week in 2008 by 24%, although year-to-date exports still trail 2003 totals by nearly 39%.
-- Click on headline to read the rest of this USMEF release

    Beef Well-Positioned For Current Economic Challenges

The beef-cattle industry is well positioned to successfully compete and thrive given record-high corn and energy costs, says economist Bill Helming.
-- Click on headline to read the rest of this story by Bill Helming Consulting Services

      Congress Takes Another Break

Congress returns next week after being gone this week for the July 4 recess. The House of Representatives will be in session until the end of July and the Senate until the first week of August. Congress will then recess for the August break and the Democratic and Republican national conventions.

July is expected to be a busy month for appropriation bills. The Senate Appropriations Committee plans to consider the fiscal year 2009 ag appropriations bill in mid-July.
-- P. Scott Shearer, Washington, D.C. correspondent



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    EU Farmers Take To The Streets Over Prices

The summer of 2008 may well be remembered as the year farmers stood up to say “no” to falling prices and higher production costs. Or, at least in Europe.
-- Click on headline to read the rest of this story by Meghan Sapp, Brussels, Belgium

      Ethanol Coproducts Eyed As Fillers In Plastics

As if there weren’t enough competition for ethanol-production coproducts, USDA Ag Research Service (ARS) scientists say preliminary studies indicate distiller's dried grains with solubles (DDGS) could serve as a non-petroleum-based filler in plastics.

DDGS have a high fiber content and a molecular structure suitable for binding, two attributes that make it a candidate as a filler in plastics, says ARS ag engineer Kurt Rosentrater, based at the ARS North Central Ag Research Lab in Brookings, SD. He conducted the research with Robert A. Tatara of Northern Illinois University.

The researchers compressed molded blends of DDGS and phenolic plastic resin (ranging from 0 to 90% DDGS) and found DDGS concentrations between 25 and 50% worked best as fillers in plastics. Fillers such as clay, talc, glass, paper and metals are commonly used in plastics to increase strength, and also to save costs by reducing the amount of actual plastic resin used.

Using bio-based fillers such as bamboo, kenaf, corn stover, soybean hulls or even chicken feathers is receiving increased attention as a way to use less petroleum in plastic products. Thus both DDGS and distiller's dried grains are candidates for use as biofillers for plastics.
-- ARS News Service

      Figuring True Opportunity Cost

According to Wikipedia, the online encyclopedia, “opportunity cost” is defined as "the cost (sacrifice) forgone by choosing one option over an alternative one that may be equally desired. Thus, opportunity cost is the cost of pursuing one choice instead of another. Every action has an opportunity cost."

Opportunity cost has always been a factor in ag budgeting, and one frequently cussed and discussed over the years at feed mills, grain elevators and anywhere else farmers gather. With accurately assessing costs during the process of budgeting for cow-calf and feedlot-cattle enterprises now at the top of many discussions, opportunity costs have once again surfaced as a confusing and somewhat controversial issue.

Writing in the July 2 Beef Cattle Letter (beef.osu.edu/), Ohio State University (OSU) Extension’s Stan Smith says the primary point of discussion (argument) seems to revolve around how one might value feeder calves that were home-raised with the expectation of finishing them on the farm. Also, the value of homegrown corn, hay or other feedstuffs frequently comes into question.

Some of us prefer to use the cost of production of the calves or feedstuff as the basis for budgeting, even though the opportunity exists to market those commodities for more than the cost of production. Simply put, if one is to accurately account for the real value of the inputs that were home-raised, the value at which the commodity could be sold for on the open market, minus transportation and marketing costs, must be the value used for the enterprise budget.

In the case of feeding homegrown feed to cattle, even though one might have raised corn on the farm at a cost of production of $3.50/bu., if it can be transported to the local elevator at a cost of 10¢/bu. and then receive $7 cash for it, the value, or opportunity cost, of the corn entered into the fed-cattle budget must be $6.90/bu. ($7 minus the 10¢ transportation cost).

It's much the same when valuing home-raised feeder calves as one considers the pros and cons of retaining ownership and finishing them out. Regardless of the cost to produce them, their value for budgeting purposes is simply what they would bring in the marketplace, minus transportation and marketing costs.

Don't be fooled by your neighbor when he suggests, " . . . I'll make more because . . . I've already got them in the pasture, or in the barn, or in the hay mow, or in the bin!"
-- Stan Smith, OSU Extension



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      Gasoline Turns Back Up To Set New Record High

After a one-week respite, the U.S. average retail price for regular gasoline climbed 1.6¢ to a new record high of $4.095/gal. Meanwhile, the U.S. average retail diesel price dropped for the second consecutive week, falling by .3¢ to $4.645, for the week ending June 30.

Gasoline was up everywhere but the West Coast, which saw a .4¢ drop to $4.456. The East Coast added 1¢ to $4.057, the Midwest 3.5¢ to $4.031, the Gulf Coast 0.9¢ to $3.928, and the Rocky Mountain region 3.2¢ to $4.034. California was down 1.2¢ to $4.573.

For diesel, the East Coast, Midwest and Rocky Mountain regions registered slight decreases – to $4.704, $4.571 and $4.638, respectively. The Gulf Coast and West Coast rose slightly – to $4.604 and $4.817, respectively. California added 0.6¢ to hit $4.928.
-- Energy Info Administration

      K-State Ag Risk And Profit Conference

Volatility in ag is the byword for this year, and the K-State Ag Risk and Profit conference, Aug. 14-15 in Manhattan, will look at how producers can manage the volatility and gain a competitive edge in the market.

The conference will allow attendees to choose up to eight of the 19 breakout sessions. Sessions include topics such as Global Supply and Demand; Can We Feed the World?; Are Traditional Risk Management Tools Still Effective?; Livestock: Who Wins, Who Loses and Why?; Managing the Threat of $8 Corn; and more.

Early registration is $195 for the first attendee from an organization and $175 for the second or more if paid by Aug. 6. After that, the fee is $220 for the first attendee and $200 for the second or more. For info, go to wwwagmanager.info or contact Rich Llewelyn at rvl@ksu.edu or 785-532-1504.
-- KSU release

      Koreans Keep Protesting U.S. Beef, But Shoppers Buy

A Korean retailer, the first to make U.S. beef available for sale to Korean consumers since the first shipments were cleared for consumption on Monday, says demand has been steady. That’s despite weeks of street protests against the reopening, AFP reports.

Chang-Gyu Park, who heads the Korea Import Beef Association, said he sold 880 lbs. of U.S. beef on the first day from his A-MEAT outlet in the Shihung district of southwest Seoul. Among his customers were the prime minister, ardent fans of U.S. beef and curious shoppers, the article says.

"U.S. beef sales -- at a 30% discount -- until July 30!" read a banner over the shop. Park said his special discount price was a factor in luring back customers. He said some 80 of the 200-member beef importers' group would take part in the discount sale nationwide.

"I hope this will help spread the idea among South Koreans that U.S. beef is safe. They ate it before, eat it now and will eat it in the future," he said.

Choi Seung-Joon, 58, who bought 22 lbs. on Wednesday, said he had “taken pains to come here to buy U.S. meat to show that there are Koreans who do not believe in the politically motivated protests against U.S. beef. I have relatives living in the U.S. I am eating the same beef, which I am sure is OK, as they are doing."

But the Korea Herald reports that big retailers and supermarkets have thus far said they won’t sell U.S. beef due to low customer confidence and ongoing protests. Even McDonald's and Outback are advertising that Australian beef is their fare.

Meanwhile, the Korea Herald also reports that the Korean government will implement its new country-of-origin labeling (COOL) system on beef starting next week. The new regulation, beginning in December, will be applied to other meat such as pork and chicken, and kimchi, as well.

The rule requires all restaurants, retailers and catering services to check and notify customers of the origins of animals and meat they sell, regardless of size. Currently, only restaurants and cafeterias that have a floor size bigger than 100 square meters are obliged to clarify the meat's country of origin.

The new labeling system will also make it mandatory for restaurants to declare whether the meat is from premium Korean cows, regular meat cattle or milk cows. It will be applied to hamburgers and meatballs.
-- Joe Roybal

      Officials Look At Program That Sparked Korea Protests

Prosecutors are expected to soon request that Korean broadcaster MBC submit all materials from a program critics allege exaggerated the risks of BSE associated with U.S. beef, and sparked nationwide protests, the Korea Herald reports. The requested materials include roughly 870 minutes of original videotapes that contain interviews with experts and patients, plus other English-language content used in their coverage, which were edited to the 45-minute edition broadcast on April 29, the article says.

The investigative news program, PD Notepad, carried two installments, entitled "Is U.S. beef safe from risks of mad cow disease?" on April 29 and May 13. They are believed to have fueled BSE scares that have triggered two months of protests over the reopening of the Korean market to U.S. beef and hobbled the fledgling Lee Myung-bak administration.

The inquiry followed a June 20 complaint by Korea’s Ministry for Food, Ag, Forestry and Fisheries. It accused directors of the MBC program of having defamed government officials and negotiators engaged in the beef import deal with Washington by distorting and inflating facts about the unconfirmed risks of BSE.

"In order to unravel numerous suspicions surrounding the PD Notepad reporting, we need to compare the original tapes with what was actually broadcast," a prosecution official told reporters.
-- Korea Herald

      Rains Cut Midwest Corn By 1.2 Million Acres, USDA Says

Midwest corn producers are reporting losses of around 1.2 million acres to extensive rains and flooding in June, according to USDA’s June 30 "Planted Acreage" report.

USDA’s National Ag Statistics Service (NASS) reported the losses after re-interviewing 1,200 farmers June 23-25 in the flood-affected areas. NASS says it will conduct a more extensive acreage update survey during July. Findings from this study will be incorporated in the August "Crop Production" report.

Corn planted area for all purposes is estimated at 87.3 million acres, down 7% from last year. Despite the decrease, corn planted acreage is the second highest since 1946, behind last year’s total of 93.6 million acres. Growers expect to harvest 78.9 million acres for grain, down 9% from 2007. If realized, this would be the second highest since 1944, behind last year.

NASS reported that farmers increased corn plantings 1.31 million acres from their March intentions. But planting got off to a slow start across the Corn Belt, Ohio Valley and the northern half of the Great Plains as frequent rainfall and cool temperatures in March and April prevented spring planting preparations.

Producers were able to make rapid progress in May, particularly across the upper Midwest and northern Great Plains. Farmers reported that 97% of the intended corn acreage had been planted at the time of the survey interview compared with the average of 98% for the past 10 years.

Meanwhile, soybean planted area for 2008 is estimated at 74.5 million acres, up 17% from last year but 1% below the record-high acreage in 2006. Area for harvest, at 72.1 million acres, is up 15% from 2007. Planted acreage increases are expected in all states.

The largest increase is expected in Nebraska, up 950,000 acres from 2007, followed by Illinois and South Dakota, both up 900,000 acres. Increases of at least 800,000 acres are also expected in Indiana, Iowa and Minnesota. If realized, the planted acreage in Kansas, New York and Pennsylvania will be the largest on record. Nationally, farmers reported that 79% of the intended soybean acreage had been planted at the time of the survey interview, which is the lowest since 1996.
-- Elton Robinson, Farm Press

      Supporters, Opponents Of Texas’ RFS Waiver Line Up

The public comment period has closed for the State of Texas’ waiver request concerning the Renewable Fuels Standard (RFS). The Environmental Protection Agency (EPA) has until July 24 to make a decision on the waiver request.

Rep. Bob Goodlatte (R-VA) was joined by 50 congressmen urging EPA to grant the Texas waiver request. In a letter to EPA, Goodlatte and others stated, “By acting now to reduce the RFS mandate, the administration can immediately impact the supply of corn that will be used for food or feed and lessen the severe economic harm facing millions of Americans.”

Organizations filing comments in support of a waiver include: State of Texas, Environmental Working Group, Grocery Manufacturers of America, National Chicken Council, National Pork Producers Council, National Cattlemen’s Beef Association, National Petrochemical Refiners Association, and National Restaurant Association.

Among the organizations filing comments opposing the waiver are: American Farm Bureau Federation, National Association of State Departments of Agriculture, National Association of Wheat Growers, National Biodiesel Board, National Corn Growers Association, National Farmers Union, National Sorghum Producers, American Coalition for Ethanol, Association of Equipment Manufacturers, and Renewable Fuels Association.
-- P. Scott Shearer, Washington, D.C. correspondent

      Ten Senators Call For National Energy Summit

Ten U.S. senators called on Senate leaders to convene a bipartisan summit of energy experts in an “effort to develop a plan for securing America’s energy independence.” Among them are: Kent Conrad (D-ND), Saxby Chambliss (R-GA), Bob Corker (R-TN), Lindsey Graham (R-SC), Johnny Isakson (R-GA), Mary Landrieu (D-LA), Blanche Lincoln (D-AR), Ben Nelson (D-NE), Mark Pryor (D-AR), and John Thune (R-SD).

The senators said, “Our hope is to hear from the best experts on energy policy who can present an unbiased view of the most promising approaches – including both enhanced conservation and increased domestic fuel production – that can reduce gas prices, lessen our dependence on foreign oil, and strengthen our economy.”

Conrad, who organized the effort, said, “Our country is in serious danger because of skyrocketing energy costs. This growing crisis demands urgent action, and we must be committed to coming together in a bipartisan way to develop comprehensive energy legislation.”
-- P. Scott Shearer, Washington, D.C. correspondent

      Transitioning Ranch Ownership Is Symposium Focus

“Living the Legacy: Transitioning Ranch Ownership and Management to the Next Generation” is the theme of the 5th Annual HOLT CAT Symposium on Excellence in Ranch Management. Set for Oct. 30-31 at Texas A&M University (TAMU)-Kingsville, the program will stress the importance of a smooth transition and consistent operation between generations. Early registration is $150 until Oct. 17, and $200 thereafter.

The annual symposium is hosted each year by the King Ranch Institute for Ranch Management, part of the university’s Dick and Mary Lewis Kleberg College of Ag, Natural Resources and Human Sciences.

R.L. “Dick” Wittman of Wittman Consulting in Culdesac, ID is keynote speaker. He manages an 18,000-acre family farm partnership in Idaho that involves crops, cattle and timber, and provides consulting services and seminars in family farm business and financial management. His guidebook, “Building Effective Farm Management Systems,” is a toolkit for commercial-size family farm businesses to define their ultimate vision and establish a professional management and transition process that will lead them to that goal.

In addition, a pre-symposium training session on livestock handling, entitled “Stockmanship and Stewardship: Forgotten Skills of Cattle Handling…And More,” will precede the HOLT CAT Symposium. Leading the training session will be Curt Pate, effective stockmanship and instructor livestock handling expert. The cost for the pre-symposium is $50.

Participants may register for both events at krirm.tamuk.edu. Find more info by calling 361-593-5401 or e-mailing krirm@tamuk.edu.
-- King Ranch Institute For Ranch Management

      UGA Technology Kills Foodborne Pathogens

A new University of Georgia (UGA) antimicrobial wash rapidly kills Salmonella and E. coli O157:H7 on foods ranging from fragile lettuce to tomatoes, fruits, poultry and meats, UGA scientists say. Made from inexpensive, readily available ingredients recognized as safe by FDA, the technology is available for licensing from UGA Research Foundation, Inc.

The combination of ingredients kills bacteria within 1-5 minutes of application, and can be used as a spray and immersion solution. Its concentration can be adjusted for treatment of fragile foods such as leafy produce, more robust foods such as poultry, or food preparation equipment and food transportation vehicles.

Currently, a chlorine wash is often used to reduce harmful bacteria levels on vegetables, fruits and poultry, but due to chlorine's sensitivity to food components and extraneous materials released in chlorinated water treatments, many bacteria survive. Plus, chlorine is toxic at high concentrations, may produce off-flavors and undesirable appearance of certain foods, and can only be used with specialized equipment and trained personnel. Chlorine also may be harmful to the environment.

"We can't rely on chlorine to eliminate pathogens on foods," says Michael Doyle, UGA Center for Food Safety director. "This new technology is effective, safe for consumers and food processing plant workers, and doesn’t affect product appearance or quality. It may actually extend the shelf-life of some types of produce."
-- UGA release

    Who Can Afford Corn? Almost No One, Economist Says

Inexpensive and abundant corn helped move the ethanol industry into the alternative-fuels fast lane. With corn prices now at record highs, demand outpacing supply and crop losses inevitable with the Midwest floods, ethanol production could soon be stalled, says Chris Hurt, a Purdue University Extension ag economist.
-- Click on headline to read the rest of this story by Purdue University

    Industry Events
      Ranch Estate Planning Seminar

Keeping the ranch in the family is one of the most important long-term goals for many operations. A seminar on basic estate planning tools will help families make the sometimes difficult decisions on how to do just that.

The Texas A&M University Ranch Estate Planning Seminar, Aug. 6-7 in College Station, will offer an in-depth look at estate-management planning tools, such as wills, living trusts, use of partnerships and corporations, special-use land valuation, and more. Registration is $125/person. For more info, contact Sharon Wehring at s-wehring@tamu.edu or 979-845-2226.
-- TAMU release



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