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BEEF'S COW CALF WEEKLY    July 18, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> The Election-Year Blues Are Upon Us
> Futures Trading Finds Itself In The Spotlight
> TB Is A Big Deal In California Dairy Country
> Speculation Abounds On JBS Merger Decision
> ADUFA Approved; Antibiotics For Animals Safe
> Alberta Says It Will End BSE Testing Of Oldest Cows
> Beef Checkoff Launches New Website
> CRP Restraining Order Frustrates Cattlemen
> Cargill Introduces Branded Beef “Value Cuts”
> Cattle Feeding Risk Analyzer Available Online
> Cattle Operations Cited For Environmental Efforts
> Cattlemen Tackle Yellowstone Brucellosis Problem
> Congress, Special-Interest Groups Celebrate Farm Bill
> Dairy Industry Distributes Guidelines
> Deadline For FSA Nominations Is Aug. 1
> Diesel Price Climbs To Another Record High
> E-Verify Reauthorization Sought
> Five Ways To Maximize Farmland Ownership Profits
> Legal Defense Fund Files Suit To Stop NAIS
> Nebraska Grazing Conference Is Aug. 12-13 In Kearney
> Retailers Receiving Recalled Products To Be Disclosed
> Senate Eyes Curbs On Energy Speculation

    Our Perspective
      The Election-Year Blues Are Upon Us

As I get older, I find myself with increasingly less time to watch the national news. But even if that weren’t the case, I probably wouldn’t watch it much anyway.

Truth is, it’s never very uplifting, which is particularly the case of late. Whether it’s the housing market, the sub-prime credit industry meltdown, the federal government taking over insolvent banks, the rising price of food and energy, the conflicts in Iraq or Afghanistan, or the increasing fears over Iran’s pursuit of nuclear weapons, the news coverage is saturated with negativism.

These stories are all colored by an election-year spin intended to make things look even bleaker – to make a better case for the need for change. But these stories also carry an additional cachet because we are all touched a bit by them. We all have a son, relative or friend serving in the military; ranchers are rationing trips to town; and everyone is seeing disposable income shrink as prices for the basics of life rise. Couple those realities with the tone of the news coverage and it can make for increasingly dark times.

It’s during these times that I can feel myself falling into a sort of mental funk. Upon reflection, I almost always find that I’ve lost focus – putting my trust, my need for security and comfort, in the things of the world.

It’s exasperating spending time with those who have an extremely negative view of the world. They focus on their problems, or their perceived problems, rather than their blessings and the mission they were born to fulfill.

Always keep in mind that today is the greatest opportunity we will ever have. It is opportunities either squandered or taken advantage of that determine our ultimate destiny.
-- Troy Marshall



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    Futures Trading Finds Itself In The Spotlight

Oil may end up affecting the cattle pits. Record oil prices have created a severe backlash, and speculators in the oil market have emerged as a key target of those who believe oil prices are significantly higher than supply and demand fundamentals warrant.
-- Click on headline to read the rest of this story by Troy Marshall

      TB Is A Big Deal In California Dairy Country

Last week, 4,800 head of dairy cows in California were sent to slaughter, believed to be at risk of carrying bovine tuberculosis (TB). In addition, another 16,000 cows are under tight quarantine.

There have been three confirmed cases of TB in Fresno County dairies. One of the dairies under quarantine milks over 10,000 head and has been a major player in marketing elite dairy genetics, as well.
-- Troy Marshall

      Speculation Abounds On JBS Merger Decision

Recent articles suggest that the U.S. Department of Justice has focused its concern on the JBS merger in a couple of areas. The first is the vertical integration that would be created by the world’s largest packer owning the world’s largest feeder (Five Rivers), and the potential impacts on fed-cattle prices. The second is the impact of having National Beef’s Brawley, CA plant and Smithfield’s Tolleson, AZ plant under one management from a regional standpoint.

Industry insiders are now betting that while the merger will be allowed largely intact, JBS will likely have to divest itself of one of the plants in the California/Arizona market. They also are betting that Five Rivers will face operational restrictions, possibly even mandating that it continue to operate as a stand-alone company.
-- Troy Marshall

   
      ADUFA Approved; Antibiotics For Animals Safe

The House Energy and Commerce Committee approved H.R. 6432, the Animal Drug User Fee Act (ADUFA). This legislation authorizes the Food and Drug Administration (FDA) to collect fees from the animal-health industry to be used for the review and approval of animal-health products. The fees supplement FDA’s Congressional appropriations to provide for more timely review of new animal drugs.

Since ADUFA was originally passed in 2003, FDA has been able to reduce its review time for new animal drugs. This has allowed these new drugs to enter the marketplace quicker, while at the same time maintaining high standards for safety and effectiveness.

The committee also passed H.R. 6433, which establishes the Animal Generic Drug User Fee Act (AGDUFA). This will implement a fee program for generic animal drugs.

Both bills don’t limit the use of antibiotics for animals as some Congressional members have advocated. This was a major concern for producer groups and industry.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Alberta Says It Will End BSE Testing Of Oldest Cows

Alberta expects to test half as many cattle for BSE under a new surveillance program that stops targeting the oldest cows, the Calgary Herald reported this week.

The article says the provincial and federal governments no longer want to test cattle aged nine years or older, because worldwide experience shows animals that old are less likely to contract BSE.

Meanwhile, Canada’s CBC News reports that the Supreme Court of Canada cleared the way this week for a proposed multibillion-dollar class-action lawsuit on behalf of some 100,000 cattle farmers hurt by the 2003 BSE scare. The proposed lawsuit says the 1990 Canadian regulations on feeding cattle came a full two years after Britain had banned the practice, and three years after Canada barred uncertified cattle imports from the United Kingdom because of BSE fears. The Canadian feed ban went into effect in 1997.

Coordinated suits from producers in Alberta, Saskatchewan, Ontario and Quebec are seeking at least $7 billion in losses and another $100 million in punitive damages.
-- Calgary Herald and CBC News

      Beef Checkoff Launches New Website

MyBeefCheckoff.com is a one-stop shop for producers to learn about their checkoff investment. Designed by the Cattlemen’s Beef Board (CBB), which administers the national self-help program, the website informs visitors how national beef checkoff dollars are invested and the results of those investments.

Among the highlights of the new site are: easy access to CBB members and staff, expanded state beef council info and access, monthly e-newsletter signup, producer profiles, links to all checkoff-funded consumer and industry sites, and a newsroom.

“The site is interactive, well organized and very user-friendly,” says CBB member Richard Nielson, cow-calf producer from Ephraim, UT, and chair of the producer communications committee.
-- CBB news release



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    CRP Restraining Order Frustrates Cattlemen

Confusion and frustration ruled in many rural areas of the country last week after a federal judge in Washington state issued a temporary restraining order relating to USDA’s release of Conservation Reserve Program (CRP) lands for haying and grazing. Judge John Coughenour, U.S. District Court-Seattle, issued the order in response to a lawsuit filed by the National Wildlife Federation and six affiliate chapters. The suit claimed USDA failed to conduct an environmental impact assessment before opening up the acreage.
-- Click on headline to read the rest of this story by Rick Mooney, eHay Weekly Editor

      Cargill Introduces Branded Beef “Value Cuts”

With grocery costs climbing and some research suggesting that 30% of consumers may be cutting back on beef usage due to economic pressures, Cargill Meat Solutions has introduced a line of eight “value-priced” cuts of beef.

These lesser-known cuts of beef have been repositioned, with their standard cut names replaced with fanciful names derived from the Romance languages. The new trademarked brand names, along with their traditional cut names are:
  • Cabrosa™ Steak (ball tip)
  • Cordelico™ Sirloin (flap meat)
  • Delombre™ Petite Tender (teres major)
  • Maranada™ Steak (flank steak)
  • Marbello™ Steak (inside skirt)
  • Rigosa™ Roast (eye of round)
  • Savran™ Steak or Roast (top round)
  • Solenta™ Sirloin (tri-tip)
In the initial phase of market rollout, more than 2,000 grocery stores are offering a combination of the branded value cuts in their meat case. In addition to renaming traditional cuts, Cargill is offering menu cards, which provide a recipe for the beef cut, as well as complementary side items and an in-store shopping list.
-- Cargill Meat Solutions press release

      Cattle Feeding Risk Analyzer Available Online

Kansas State University offers an online tool to help cattle feeders determine the potential economic risk in specific groups of cattle. “Cattle Feeding Risk Analyzer” uses basic info provided by the cattle feeder to calculate an expected profit or loss. Variables supplied by the user include date purchased, gender, in-weight, net feeder purchase price, feedyard location, interest rate and expected finish date.

The calculator relies on models using historical data for cattle fed in Kansas and Nebraska. It uses futures and options prices from the major commodity exchanges to establish expected prices and distributions. Find it at www.naiber.org/cattleriskanalyzer.
-- Kansas Livestock Association release



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      Cattle Operations Cited For Environmental Efforts

Seven regional winners have been named by the 2008 National Environmental Stewardship Award Selection Committee (ESASC). The seven honorees will vie for the 18th national honor to be awarded in January 2009. The honorees include:
  • Region I: Sennett Cattle Co, Waynetown, IN.
  • Region II: Yon Family Farms, Ridge Springs, SC.
  • Region III: Guge Family Farm, Estherville, IA.
  • Region IV: Bradley 3 Ranch, Memphis, TX.
  • Region V: Veseth Cattle Co, Malta, MT.
  • Region VI: Babacomari Ranch, Sonoita, AZ.
  • Region VII: Hovde Ranch, Alexander, ND.
“These families have successfully conducted stewardship practices that serve as exemplary models for all cattle producers. They are actively working to protect and improve the environment and have proven that stewardship and good business can go hand-in-hand,” says ESASC chairman Dave Petty, a former national Environmental Stewardship Award Program (ESAP) winner from Iowa.
To learn more about ESAP, visit: esap.beefusa.org/program.aspx.
-- ESASC news release

      Cattlemen Tackle Yellowstone Brucellosis Problem

The Montana Farm Bureau Federation and the Montana Stockgrowers Association have begun to work with producers to develop a “hot spot” management pilot project as a solution to the brucellosis problem in the Greater Yellowstone Area. The plan is currently in the discussion stage and will continue to be refined with input from government officials, wildlife groups and area cattlemen.

The short-term objectives of the plan are regaining class-free status, implementing separate but complementary brucellosis management plans for bison, cattle and elk, and minimizing economic impact to producers. The long-term goal is to eradicate brucellosis so that vigorous, healthy wildlife populations and livestock grazing can co-exist in the Greater Yellowstone Area.

The preliminary proposal designates “hot spot areas” and “hot spot adjacent areas” with guidelines for proper livestock and wildlife management in those areas. Hot-spot designations would be temporary and tightly focused around the infected premise. Two years after the disease is eradicated in the hot spot, the designation would be lifted.
-- Montana Farm Bureau release

      Congress, Special-Interest Groups Celebrate Farm Bill

This week, members of Congress and the ag, conservation and nutrition communities held one of the largest ag receptions on Capitol Hill this year celebrating the passage of the 2008 farm bill. House Speaker Nancy Pelosi (D-CA) joined in thanking everyone for their effort in passage of the bill.
-- P. Scott Shearer, Washington, D.C. correspondent

      Dairy Industry Distributes Guidelines

In an effort to reinforce the importance of caring for dairy cattle at all stages of their lives, the National Milk Producers Federation (NMPF), Dairy Management Inc., and the American Association of Bovine Practitioners are distributing posters on basic animal welfare to all dairy producers across America. The posters are printed on a barn-safe plastic sheet in both English and Spanish.

The poster is titled “Top 10 Considerations for Culling and Transporting Dairy Animals to a Packing or Processing Facility,” and will be distributed this month through dairy co-ops to their members. Producers who aren’t members of a co-op can order a copy at 703-224-1381 or send an email to poster@nmpf.org. View the poster online at www.nmpf.org.

Additional information about animal welfare, including the 2007 publication “A Review of the Causes, Prevention and Welfare of Nonambulatory Cattle,” is available at www.vetmed.ucdavis.edu/vetext/animalwelfare/.
-- Burt Rutherford

      Deadline For FSA Nominations Is Aug. 1

Farmer and rancher candidate nominations for local Farm Service Agency (FSA) county committees will be accepted through Aug. 1. Elections are this fall.

FSA county committee members make decisions on disaster and conservation programs, emergency programs, commodity price support loan programs and other important agricultural issues. To be eligible, a person must participate or cooperate in a program administered by FSA, be eligible to vote in a county committee election and reside in the local administrative area in which the person is a candidate. Producers may also nominate themselves, and organizations representing minority and women may also nominate candidates.

To become a nominee, eligible individuals must sign form FSA-669A. The form and other info about FSA county committee elections are available at www.fsa.usda.gov; click on "News and Events," then County Committee Elections.
-- FSA news release

      Diesel Price Climbs To Another Record High

The U.S. average retail price for regular gasoline dipped 0.1¢ ($4.113/gal.) for the week ending July 14. Meanwhile, the U.S. average retail diesel price increased by 3.7¢ to an all-time high of $4.764.

On a regional basis, gasoline was up for the week in the Midwest ($4.066), Gulf Coast ($3.971), and Rocky Mountains ($4.097) but dropped in the East Coast ($4.071) and West Coast ($4.415). California was down 3¢ to $4.52/gal.

For diesel, all five regions set record highs. The East Coast was up 3.3¢ to $4.822/gal., the Midwest gained 4.4¢ to $4.698, the Gulf Coast added 4¢ ($4.737), and the Rocky Mountains jumped 4.6¢ to $4.718. The West Coast moved 2.3¢ higher to $4.909, and California was up 2.5¢ to $5.026/gal.
-- U.S. Energy Information Administration

      E-Verify Reauthorization Sought

Rep. Chris Cannon (R-UT) has introduced H.R. 6454, which would extend and expand the E-verify program. This program is widely used in the meat and ag community to verify the legal status and eligibility of workers. This legislation provides for the extension of this voluntary program, which expires Nov. 30.
-- P. Scott Shearer, Washington, D.C. correspondent

    Five Ways To Maximize Farmland Ownership Profits

Farmers National Company offers the following tips to maximize the profitability of farmland ownership.
-- Click on headline to read the rest of this story by Farmers National Company

      Legal Defense Fund Files Suit To Stop NAIS

The Farm-to-Consumer Legal Defense Fund sued USDA and the Michigan Department of Ag (MDA) this week in U.S. District Court (District of Columbia) to stop implementation of the National Animal Identification System (NAIS), marketwatch.com reports. If successful, the suit would halt the program nationwide.

MDA has implemented the first two stages of NAIS – property registration and animal ID – across the state as part of a mandatory bovine tuberculosis disease control program required by a grant from USDA. The suit asks the court to issue an injunction to stop the implementation of NAIS at either the state or federal levels by any state or federal agency.

Spokesman Taaron Meikle says the suit charges that USDA has never published rules regarding NAIS, in violation of the Federal Administrative Procedures Act; has never performed an environmental impact statement or an environmental assessment as required by the National Environmental Policy Act; is in violation of the Regulatory Flexibility Act that requires USDA to analyze proposed rules for their impact on small entities and local governments; and violates religious freedoms guaranteed by the Religious Freedom Restoration Act.
-- marketwatch.com

      Nebraska Grazing Conference Is Aug. 12-13 In Kearney

Two dozen speakers at the 2008 Nebraska Grazing Conference, Aug. 12-13 at the Kearney Holiday Inn, will provide farmers, ranchers, wildlife managers and advisers the opportunity to learn more about obtaining economic success through grazing, enhancing wildlife habitat and conservation.

Among discussion topics are: Marketing grass-fed beef, legumes in grass pastures, modifying animal behavior, land monitoring for management decisions, utilizing co-products in a beef livestock operation, transitioning to organic production, and winter grazing strategies. Concurrent sessions will delve into grazing basics and grazing and wildlife, as well as use of co-products in beef-production systems and grassland monitoring.

The conference concludes with a panel of graziers discussing their management strategies for adapting to high feed and fuel costs.
Registration, which includes two lunches, break refreshments, an evening banquet and materials, is $75 before Aug. 1, and $90 after. One-day registration is also available.

For more info, visit www.grassland.unl.edu, call 402-472-4101, or email grassland@unl.edu.
-- University of Nebraska Institute of Ag and Natural Resources

      Retailers Receiving Recalled Products To Be Disclosed

USDA Secretary Ed Schafer said last Friday his agency will begin in August to publicize retail stores receiving meat and poultry products involved in Class I recalls, those of the most serious concern to public health. The announcement provides a 30-day notice after the rule is published in the Federal Register before the process of listing retail stores takes effect.

USDA's Food Safety Inspection Service (FSIS) will post on its website – www.fsis.usda.gov – a list of retail stores that receive products subject to Class I recalls, generally within 3-10 business days of issuing the recall release. A Class I recall is one involving a reasonable probability of serious health consequences or death for those with weakened immune systems.

Retail stores include supermarkets or other grocery stores, convenience stores, meat markets, wholesale clubs and supercenters. FSIS won’t identify distribution centers, institutions or restaurants, since they prepare food for immediate consumption without packaging that is identifiable or available to consumers.

Recall announcements from FSIS always include the name of the establishment recalling the meat or poultry, reason for the recall, product description, identifying product codes, the recall classification and contact info at FSIS and the company involved. The additional info releasing the names of retail stores receiving recalled meat and poultry will improve the consumers' ability to identify, and discard or return, such products purchased, or still in their home, by checking the list of stores and locations, USDA says.
-- USDA release

      Senate Eyes Curbs On Energy Speculation

Senate Majority Harry Reid (D-NV) says he wants the Senate to pass legislation concerning speculation in the energy market. Reid has introduced S. 3268, the “Stop Excessive Energy Speculation Act of 2008.”

The legislation would increase the resources and authority needed by the Commodities Futures Trading Commission (CFTC) to detect, prevent, and punish price manipulation and excessive speculation, and give the CFTC emergency authority needed to rapidly implement the legislation. The House Ag Committee has been holding a number of hearings on this issue and is expected to pass legislation before the end of the month.
-- P. Scott Shearer, Washington, D.C. correspondent

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