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A federal appeals court last Friday denied a request by Creekstone
Farms Premium Beef to test all its slaughter cattle for BSE.
It was the latest in a two-year odyssey that began in March 2006 when
Creekstone filed suit against USDA for refusing to allow the company to
voluntarily test cattle for BSE at its Arkansas City, KS facility. With
57 countries having banned U.S. beef imports due to BSE in late 2003,
Creekstone had hoped that testing of each carcass could help it regain
access to the lucrative Japanese market.
Creekstone won a resulting U.S. District Court ruling in March 2007 that
said USDA had no authority to control BSE testing. Friday’s appeals
court panel decision – voting 2-1 – overturns that decision.
Steve Kay reported last week that the panel – in its 25-page ruling
– said USDA is within bounds to bar meatpackers from testing slaughter
cattle for BSE. According to Reuters, Appellate Judges Karen
Henderson and Judith Rogers said USDA has authority under the 1913
Virus-Serum-Toxin Act to prevent sale of BSE test kits to meatpackers.
USDA interprets the law to control products for “prevention,
diagnosis, management or care of diseases of animals.”
David Sentelle, chief judge of the District of Columbia appeals circuit,
dissented from the decision. USDA “exceeds the bounds of
reasonableness” for a law enacted to prevent the sale of ineffective
animal medicine, he said.
The appellate court decision essentially upheld USDA's assertion that
the agency alone had authority to control products for prevention,
diagnosis, management or care of diseases of animals under the
Virus-Serum-Toxic Act. The ruling didn’t center on the scientific
issues of testing animals too young to be tested etc., or the fact that
the economic reasons for Creekstone Farms’ action had long since
passed with the Japanese market reopening.
The law was very clear, but that doesn’t change the strong sentiment
USDA's decision created within the industry. Everyone can see the danger
of using disease as a marketing tool, but everyone can identify with
Creekstone's frustration when they were losing significant dollars
knowing they had a perfectly safe product.
Creekstone has been going through a challenging economic environment,
and this may be one more stick on a heavy load.
-- Troy Marshall
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verified program designed to add even more value to your Charolais
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Politics is a microcosm of life sometimes; at other times, it’s
surreal. But it does teach us at least one important principle that is
valuable to us all, and that is that the story counts. In fact, the
story is paramount.
A politician's policies and stances are a lot like the attributes of a
product; they are important, but ultimately they’re not the deciding
factor for most people. They have to like you, identify with you,
respect you, or some variation along those lines. They have to feel they
understand you at a deeper level than just your resume, and they want to
know your story and of your shared values.
It’s no accident that Obama talks about his upbringing and his days as
a community organizer, or that Palin spent the first minutes of her
speech introducing her family and telling her story from the PTA to the
governor's mansion. The story is what matters.
Buying cattle isn’t any different. Yes, the facts matter – genetics,
weighing conditions, composition of gain, management, delivery dates,
etc. But the relationship is what will close the deal.
When you’re introduced to a potential client/customer, you only get
one chance to convince them you’re the type of person they’d like to
do business with. What is your story? That cattle buyer may not care
about your stance on taxation, but odds are he does about your beliefs
and principles.
-- Troy Marshall
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The CEO of Smithfield announced this week that the firm is
experiencing declining margins. He blamed the government mandates for
ethanol and joined the chorus of livestock producers calling for a
revision to the current flawed policy.
While supporters continue to trot out the argument that other factors
such as higher energy prices are having a larger impact on decreasing
margins and rising food costs, they’re missing the point. The
livestock industry willingly concedes that point.
That doesn't mean, however, that ethanol mandates don't have a major
impact. It’s almost humorous to hear the argument that subisidies that
caused 25% of the current crop to be used for an economically unviable
purpose, and with mandates looming that will increase that percentage,
have had little effect on the price. Just increase demand by 30% for any
product with limited supplies and see what that does to price.
It’s impossible to argue that ethanol hasn’t been good for
agriculture in the short term. Net farm income is projected to be 10%
over last year’s all-time record high of $95.7 billion. That’s up
57% over the 10-year average. For the first time ever, net cash income
is expected to exceed $100 billion.
The value of crop production is estimated to hit $188.8 billion, a 25%
increase over last year’s record and an increase of roughly $38
billion. Livestock cash receipts are expected to be up by nearly 6%.
Record harvests and record prices aren’t typically something that go
hand in hand, but ethanol has changed all that. In 2008, the rise in the
value of crop production is expected to be five times that of livestock.
Historically the value of crop production and livestock production
tracked fairly evenly, but that’s no longer the case and crop
production has grown to be the dominant player in agriculture.
-- Troy Marshall
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The House of Representatives and Senate return next week after their
summer recesses. The major item of business will be fiscal year 2009
appropriations. None of the appropriations bills, including agriculture,
have been completed.
It’s expected that Congress will pass a continuing resolution before
it leaves the end of September to keep the government running until
either November/December of this year or until early next year. A number
of tax extenders (biodiesel, research and development, etc.) expired
last December. Efforts will be made to extend these tax items for
another year.
Both parties will argue the need to complete a comprehensive energy
bill, but with only three weeks of session left it will be difficult for
Congress to complete action. Remember this is an election year, so both
parties will be using the next three weeks to push their election-day
agenda.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Ask a swine producer about the role of biosecurity and herd health
on the average hog farm, and a protocol and 20-minute lecture are surely
to follow. Ask a cow-calf producer, and you'd likely get a much less
detailed response.
-- Click on headline to read the rest of this
story by W. Mark Hilton, DVM, Purdue University
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Like never before, ranchers are faced with increasing costs of
production, and it's causing many of them to rethink their production
strategies. But, as they look ahead to winter herd management, cutting
costs just for cost-cutting sake may not be the best
approach.
-- Click on headline to read the
rest of this story by Clint Peck
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As Gustav drops the last of its rain on inland U.S., tropical storms
Hanna, Ike and Josephine serve as reminders for Gulf Coast and Atlantic
Coast residents to get prepared. The Department of Homeland Security’s
(DHS) “Ready” campaign encourages citizens to get an emergency
supply kit, make an emergency plan, and be informed about what to do if
these tropical storms gain strength and turn into hurricanes.
“Ready” recommends a three-day supply of water for each individual
in the family, including pets, along with non-perishable food, a
battery-powered radio, extra batteries and a flashlight. Also consider
medications and important documents like property insurance. In
addition, DHS recommends having a “to-go” kit that includes these
basic essentials, as well as blankets and clothing in case you must
evacuate quickly.
More info is available at www.ready.gov; in Spanish at www.listo.gov. Additional info,
including hurricane preparedness for livestock, is available at agrilifebookstore.org (click
on the “Disasters and Emergencies” tab); at texashelp.tamu.edu; and at
www.lsuagcenter.com.
Meanwhile, well-above-average hurricane activity is predicted for
September, according to the Colorado State University Hurricane Forecast
Team. This month is expected to experience five named storms with four
of the five expected to become hurricanes and two to become major
(category 3, 4 or 5) hurricanes. For details, go to tropical.atmos.colostate.edu.
-- Burt Rutherford
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Acting quickly after an industry-wide meeting last week in Kansas
City, representatives of beef industry organizations this week adopted a
standardized affidavit to declare country-of-origin for livestock.
Industry representatives from the livestock and meat sectors will meet
tomorrow with USDA Under Secretary Bruce Knight to present the
affidavit. “Our goal was to create a simple, efficient and effective
means of declaring livestock origin from conception to consumer, and we
believe this affidavit does exactly that,” says National Cattlemen’s
Beef Association (NCBA) President Andy Groseta. “Producers can fill in
information specific to their cattle and assert the origin of any animal
being sold. Livestock marketers further along the ownership chain can
use individual affidavits to create a single, combined affidavit for a
group of animals.”
In addition, industry organizations are looking at “gap cattle,”
which are animals traded between July 15 (the date that declared all
livestock present in the U.S. as being of U.S. origin) and the Sept. 30
implementation deadline for mandatory COOL.
“We are well aware that owners of these animals would be very
hard-pressed to recreate the paper trail documenting origin,” Groseta
said. “The industry consensus is that current owners should be
considered to have first-hand knowledge of those cattle. Therefore,
these animals should be allowed to move through the marketing chain
using the standard affidavit.”
The affidavit is available online at www.beefusa.org/uDocs/countryoforiginaffidavit453.pdf.
For a list of the participating organizations, read the cover letter at:
www.beefusa.org/uDocs/countryoforiginaffidavitcoverletter.pdf.
-- NCBA release
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The Kansas State University (KSU) Beef Stocker Conference, set for
Oct. 2 in Manhattan, promises a dynamic mix of insightful presentations
focusing on the stocker business specifically, as well as hands-on
demonstrations of the latest technologies available to stocker
operators. Among the presentations are: - Key findings of the
recently completed National Stocker Survey, the first of its kind
assessment of national attitudes, trends and practices in U.S. stocker
production.
- New realities in the stocker business.
- Current concepts in medicated feed additives.
Breakout sessions include:
- Making rational choices for stocker therapy.
- What is the importance of temperature in diagnosing sickness?
- Use of byproducts to exploit efficient performance.
- Implications of heavier cattle being fed fewer days.
- The real cost of cutting bulls.
- Injection-site considerations for quality beef.
- Pneumonia progression – a visual tour.
Demonstrations include:
- Ultrasound applications for earlier detection of quality cattle.
- Latest innovations in data collection and scale-head technologies.
- State-of-the-art cattle handling facilities.
The conference
begins at 9:30 a.m. at KSU’s Beef Stocker Unit, located just west of
Manhattan. Following the afternoon breakout sessions, participants can
stay and enjoy a Rocky Mountain Oyster Fry.
Registration is $25/person by Sept. 15, or $35 after that date. For more
info or to register, call 785-532-1267 or visit www.ksubeef.com and click on "2008
Stocker Conference."
-- Wes Ishmael
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The 2008 Kentucky/Tennessee Cow-Calf Conference is set for Oct. 3 at
the Western Kentucky University Ag Expo Center in Bowling Green.
BEEF is a co-sponsor of the event.
The festivities kick off at 8 a.m. with opening of the trade show,
followed by a presentation on grazing-management systems at 9 a.m., and
another on the economics of grazing systems at 10 a.m. A Cattle-Fax
cattle industry update and outlook follows at 11, with lunch at noon. At
1:45 p.m., risk management is the focus; a hands-on exercise entitled
“On The Hoof Cattle Grading and Marketing” is set for 2:45 p.m. The
meeting adjourns at 3:30 p.m.
In addition, a Kentucky Department of Ag hay-testing van will be on the
premises to analyze producers’ hay samples.
Registration is $25 for producers and $10 for students. Learn more at
www.dicksoncountyag.com.
-- Joe Roybal
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People place the call. Angus answers. Meat buyers pay a premium
for Certified Angus Beef® brand products and more than $200 million
in grid premiums have been returned to producers. Angus, the power of
people and progress.
www.angus.org
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Under the 2008 Farm Bill, farmers and ranchers who suffer losses as
a result of natural disasters after the 2007 crop year are eligible for
assistance programs. The disaster programs include a livestock forage
program for drought-affected livestock farmers, a livestock indemnity
program to compensate ranchers for livestock losses caused by a
disaster, emergency assistance for livestock, honeybees, and
farmed-raised fish, and a supplemental revenue assistance payment
program.
Eligible producers must have federal crop insurance or coverage under
the Noninsured Crop Disaster Assistance Program (NAP).
Since the 2008 Farm Bill was enacted after the application periods had
closed, producers without such coverage couldn’t comply with this
requirement. The 2008 Act, however, allows producers to pay a "buy-in"
fee – due no later than Sept. 16 – to be eligible for this new
disaster assistance.
Every producer whose crops, including grazing lands, are not fully
covered by catastrophic risk protection insurance or NAP may take
advantage of this one-time opportunity.
-- Farm Press
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Ohio State University will host its first-ever Low-Stress Cattle
Handling Workshop Sept. 20 at the Jackson Ag Research Station in
Jackson, OH.
“The event will be very hands-on,” says Kenny Wells, Jackson station
manager. “We’ll be spending most of our time in the corrals and
working facilities, watching and listening to the presenters as they
work with cattle. It will be completely focused on working with
commercial cattle in a real production environment.”
Registration is due by Sept. 12 and is $5/person, which includes lunch
and refreshments. For more info or to register, contact Wells at
740-286-3803 or wells.296@osu.edu.
-- Ohio State University release
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The Republican National Convention held “AgNite, A Celebration of
America’s Food and Ag Industry” on Tuesday night in Minneapolis. The
event was attended by thousands of convention delegates, members of
Congress, news media and food and ag industry leaders.
-- P. Scott Shearer, Washington, D.C.
correspondent
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A Renewable Energy Fair is set for Sept. 18 at the Cedar County
Fairgrounds in Hartington, NE. The 9 a.m. to 4 p.m. event offers
participants the opportunity to learn about small and utility-scale wind
turbines, see bio-diesel being made on the grounds, hear speakers
discuss hybrid and electric cars, learn about USDA programs on energy
efficiency and renewable energy systems, and gain the concepts of
home-built solar heaters and energy conservation programs and practices.
Other topics of discussion include: climate change, carbon credits,
cutting crop inputs and livestock feed costs, school wind projects,
energy safety, etc.
For more info, contact Martin Kleinschmit at 402-254-6893 or martink@cfra.org; or visit www.cfra.org.
-- Center for Rural Affairs
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The current U.S. population of red imported fire ants – which
infest millions of acres across the South – can be traced back to nine
to 20 queens in Mobile, AL. That's according to a genetic study by D.
DeWayne Shoemaker, USDA Ag Research Service (ARS) entomologist, and
Kenneth G. Ross, University of Georgia entomologist.
The red imported fire ant (Solenopsis invicta) native to South
America, is a major invasive pest insect and considered by the World
Conservation Unit to be among the top 100 worst invasive alien
species.
In their study, the scientists found those original nine to 20 queens
stowed away on a boat, presumably each with their worker force, and
began populating the U.S. in the mid-1930s. These ants spread outward
from the purported initial landing spot in Mobile.
Individual ants from two populations in South America and six
populations across the Southern U.S. were collected for genetic
analysis. Data collected substantiates the theory there is a close
genetic resemblance of ants collected near Mobile to a hypothetical,
reconstructed ancestral population. However, the data also raises the
possibility of a secondary introduction at a location 60 miles west of
Mobile.
Further genetic analysis will improve knowledge of the reproductive
biology, population demographics, genetics and invasive history of red
imported fire ants, which may assist in controlling them.
-- Sharon Durham (USDA) in Farm Press
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Check out the lineup of short videos available at BEEF TV – beefmagazine.com/beeftv/.
Available for quick viewing are profiles on five operations toured by
participants of the recent Minnesota State Cattlemen’s Summer Tour and
Trade Show.
In addition, you can find short summaries of presentations from the 2007
BEEF Quality Summit in Omaha, NE, as well as a video profile of the Sean
Mercer family, last year’s National Stocker Award winner.
-- Joe Roybal
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USDA’s Economic Research Service (ERS) has forecast net farm
income at a record $95.7 billion for 2008, which is 10% above the $86.8
billion farmers earned in 2007 and 57% above its 10-year average of
$61.1 billion. Net cash income, at $101.3 billion, is forecast to be
$13.9 billion (16%) above 2007, which was the previous record.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Republican platform adopted at the Republican National
Convention this week states the “U.S. government should end mandates
for ethanol and let the free market work.” This is a change in policy
for the Republican Party, which supported ethanol in its 2004 party
platform.
-- P. Scott Shearer, Washington, D.C.
correspondent
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A method to measure residual forage after grazing is explained in a
new bulletin available from the University of Wyoming (UW) Cooperative
Extension Service. MP-111.10, “Robel Pole Technique and Data
Interpretation,” was written by Mike Smith, UW Extension rangeland
management specialist. Find it at ces.uwyo.edu/PUBS/MP111_10.pdf.
The Robel pole is named for its originator, wildlife biologist Robert
Robel of Kansas. It’s a 4-ft.-long, white rod with half-inch bands
alternating white and gray on the lower 18 in. The bands are numbered
starting at the bottom with 0. A 4-meter string is attached 39 in. from
the bottom of the pole. A reading of the last band visible when seen
from a distance of 4 meters is taken with the base firmly on the soil
surface. A formula is then used to calculate the estimated amount of
forage.
“It is consistent, reliable and cost effective, and it covers a large
area in a short amount of time if established procedure is followed,”
Smith says. He adds that residual amount guidelines should provide a
resource manager with a better tool to assess soil surface protection
from erosion, forage remaining for other users or adequacy of remaining
forage to sustain livestock.
-- UW release
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The 2009 edition of The Farmers' Almanac is predicting
below-average temps for most of the U.S. this winter. However, the
National Weather Service’s trends-based outlook calls for warmer than
normal weather this winter over much of the country, including Alaska.
The Almanac predicts at least two-thirds of the country can expect
colder-than-average temps this winter, with only the Far West and
Southeast in line for near-normal readings, the Associated Press
reports. Above-normal snowfall is called for in the Great Lakes and
Midwest, especially in January and February, with above-normal precip
for the Southwest in December and Southeast in January and February.
The Northeast and Mid-Atlantic regions will likely have an unusually wet
or snowy February. In contrast, the usually wet Pacific Northwest could
be a bit drier than normal in February.
Looking ahead to summer, the almanac foresees near-normal temperatures
in most places. But much of the Southwest should prepare for unusually
hot weather in June and July, while Florida, Georgia and the Carolinas
will get oppressive July heat and humidity.
-- Associated Press
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Exports of U.S. ag-related equipment to nations around the world
topped $5.8 billion for the first half of 2008 compared to mid-year 2007
numbers, a 30.5% increase, according to the North American-based
Association of Equipment Manufacturers (AEM).
By regions, exports to Australia/Oceania grew the most during the first
half of 2008, an increase of 94% as the region took delivery of $347
million in U.S. farm equipment. Exports to South America rose 37%, to
total $406 million, while Central America purchased $398 million in
U.S.-made farm machinery, an 8% gain.
Agricultural equipment exports to Europe rose 30% for January-June 2008
compared to a year earlier to total $2.6 billion, and exports to Canada
were $1.55 billion, an increase of 35%. Exports to Asia increased 6% to
total $398 million, and exports to Africa of U.S.-made farm equipment
grew 29% and totaled $141 million.
The top 10 export destinations for U.S. farm machinery exports for the
first half of 2008 were: (1) Canada – $1.55 billion, up 35%; (2)
Russia – $456 million, up 63%; (3) Germany – $331 million, up 25%;
(4) Australia – $305.5 million, up 97%; (5) Mexico – $305 million,
up 9%; (6) France – $244 million, up 23%; (7) Ukraine – $243
million, up 71%; (8) United Kingdom – $233 million, up 25%; (9)
Belgium – $179 million, down 2%; (10) Kazakhstan – $156 million, up
56%. Brazil came in at number 11 with $145 million, a 29% increase.
-- AEM release
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Catch a roundup of each week’s cattle-market activity every Friday
afternoon at beefmagazine.com/market-update/.
Steve Kay, editor and publisher of Cattle Buyers Weekly, the
number-one marketing and business newsletter for the North American meat
and livestock industry, will provide the week-ending market summary.
As a new contributing editor to BEEF magazine, Kay also provides
a monthly column entitled “Meat Matters,” which deals with his
insights on meat-quality issues.
For more info on Kay’s Cattle Buyers Weekly subscription
newsletter, visit www.cattlebuyersweekly.com,
phone 707-765-1725, or email info@cattlebuyersweekly.com.
-- Joe Roybal
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Meteorologists talk about it daily in their weather broadcasts, but
not everyone knows what they mean by the term “dew point.”
“It’s a basic measure of humidity,” says Kansas climatologist Mary
Knapp. “But the dew point is actually a temperature – the point to
which the air would have to cool for its water vapor to reach the
saturation point. That’s assuming, of course, that the barometric
pressure and such don’t change.”
Unlike relative humidity, the dew point temperature doesn’t change
when the air temperature does, says Knapp, who runs the Kansas Weather
Data Library at Kansas State University.
“If the dew point and air temperature become the same, though,
something has to give. Having reached saturation, the water vapor will
start to condense – form water drops as fog, dew or frost,” she
says. “As a result, the dew point can’t be lower than the air
temperature. That’s why, in the absence of a frontal system, the dew
point in the afternoon is a fairly good predictor of how low the
upcoming nighttime temperature will fall.”
-- Kansas State University release
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Think of beef and most people bring to mind a juicy steak. But the
beef industry's most valuable product is ground beef, sold as such, in
patty form or in other ways. Estimates suggest these products represent
about 42% of all the beef consumed in the U.S. each year. In terms of
volume, the market is divided 50/50 between retail and foodservice.
-- Click on headline to read the rest of this
story by Steve Kay, www.cattlebuyersweekly.com
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