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BEEF'S COW CALF WEEKLY    January 30, 2009  |  A PENTON MEDIA PUBLICATION
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What's New on American Cowman?
-B is for Buckling Up
-Beef Management Calendar
-Winter weather stress on calves can linger for weeks
-Kansas to host Women in Ag conference Feb. 12-14
-Ernst elected CHB President | American Hereford Association
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-Beef industry looks to strengthen its export resurgence
-Vilsack says action already taking place at USDA
Wholesale fertilizer prices drop
Read the January issue online
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    Table Of Contents
> Average Gasoline, Diesel Prices Slip For The Week
> Approval Of Beef Checkoff Slightly Lower
> Art Douglas Presents 2009 Weather Outlook
> Beer, Red Wine Marinade May Cut Cooking Risks
> CWD Found In Minnesota Farmed Elk
> Capitalizing On Your Calf Crop Begins With Breeding
> Cattlemen Hear Long-Term Outlook
> Comment Period For Payment Limitations Rule Extended
> Fighting Another Dairy Herd Buyout
> Grassfed Association Plans February Conference
> Homeland Security Launches Educational Campaign
> House Ag Committee Subcommittees Named
> House Ag Committee’s Oversight Agenda
> House Passes Stimulus Package
> National Beef Backer Awards Announced
> New Ag Weather Website Available
> New Members Named To Senate Ag Committee
> North Dakota Agri-Tourism Workshops Scheduled
> Overton Grazing School Now Accepting Enrollment
> Prohibition On Non-Ambulatory Cattle Proposed
> Transformation Of U.S. Livestock Industry Report
> Vilsack Outlines Priorities
> Workshop On Managing Ohio's Beef Industry Offered

   
      Average Gasoline, Diesel Prices Slip For The Week

Reversing the trend of the previous three weeks, the national average price of regular gasoline at retail dropped 0.9¢ to $1.838/gal. for the week ending Jan. 26. Meanwhile, the national average price of diesel slipped 2.8¢ to reach $2.268/gal.

The weekly gasoline average was $1.139 lower than the price a year ago. The East Coast was up 0.6¢ to $1.816, the Midwest was down 5.4¢ to $1.82, the Gulf Coast was unchanged at $1.729, the Rocky Mountain region was up 3.7¢ to $1.644, and the West Coast rose 2.8¢ to $2.057. California was up 3.1¢ to $2.095.

Diesel dropped in all regions, with the East Coast shedding 3.3¢ to $2.344, the Midwest 3.2¢ to $2.232, the Gulf Coast 2.5¢ to $2.202, the Rocky Mountains 0.6¢ to $2.243, and the West Coast 1.9¢ to $2.319. California fell 2.3¢ to $2.296/gal.
-- Energy Information Administration



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      Approval Of Beef Checkoff Slightly Lower

Producers continue to have a favorable opinion about the Beef Checkoff Program, despite the current economic challenges facing the industry. A representative survey of 1,200 beef producers nationwide found that 68% of producers approved of the checkoff, down from 72% a year ago.

“With negative market conditions we expected that overall approval might drop,” says Richard Nielson, an Ephraim, UT, cow-calf producer and chairman of the Joint Producer Communications Committee.

The late December and early January survey asked producers whether they agreed or disagreed with a series of statements about the checkoff. A large majority, 83%, felt the checkoff program has helped contribute to a positive trend in consumer demand for beef. About the same number believed the program had value in weak economic conditions and were confident the checkoff is on their side during a crisis.

When it comes to their own operation, roughly 70% of respondents felt the checkoff helped contribute to the profitability of their operations. And 64% believed the checkoff program is being managed well. To view the full report, go to: www.beefboard.org/news/files/Checkoff%20in%20the%20news/Beefmemo0901b2.pdf.
-- Cattlemen’s Beef Board

      Art Douglas Presents 2009 Weather Outlook

Climate expert Art Douglas delivered his 32nd annual weather outlook to attendees of the “CattleFax Outlook 2009” session in Phoenix on Thursday.

“Cold La Nina conditions along the equator will continue to keep the tropical jet stream weaker than normal across the southern tier of states. With a weak jet, late winter and spring drought will continue to strengthen from California into Texas and the Southeast. Drought impact will be most severe in California and Texas and sections of the Piedmont.

“The heavy snow pack in the northern Corn Belt will retard spring warming and result in excess oil moisture from the eastern Dakotas into Minnesota, Wisconsin and northern sections of Iowa and Illinois. This will not be favorable for early field work in the upper Midwest. La Nina conditions are forecast for the late spring and this should result in normal to slightly below normal rainfall in the central Corn Belt.

“Assuming La Nina conditions persist into the middle of the summer, the best bet is for a slightly warmer and drier summer from the northern Rockies into western portions of the Corn Belt. The summertime ridge of high pressure across the nation should be stronger than normal due to the combined effects of La Nina, a warm Atlantic and a cold East Pacific. This combination typically favors a relatively active summer monsoon pattern in the Southwest.

“Argentina and Uruguay continue to be gripped in severe drought while crop areas of Brazil appear to be progressing well. Only slight improvement in likely in the crop in Argentina during the next month. Australia continues to be gripped by drought in the southern two-thirds of the continent while the north is enjoying a healthy summer monsoon. If La Nina conditions persist into July and August, winter rain areas of southern Australia could show improved wheat and grazing conditions in their upcoming winter.”
-- CattleFax Outlook 2009 Executive Summary

      Beer, Red Wine Marinade May Cut Cooking Risks

Marinating beef in red wine or beer may reduce the levels of potentially cancer-promoting compounds, according to a study from Portugal, reports www.FoodNavigator.com. According to University of Porto researchers, the beer or red wine marinade reduced levels of heterocyclic amines by up to 88%. Heterocyclic amines, formed during the frying or grilling of fish and meat, are reported to promote carcinogenesis in humans.

Reporting in the Journal of Agricultural and Food Chemistry, the researchers marinated eight beef samples in pilsner beer, eight in red wine, and kept four as control samples. The beef was marinated for different amounts of time, ranging from 1-6 hours, followed by frying.

All samples marinated in red wine or beer contained lower levels of heterocyclic amines than the control samples, the researchers reported. Carcinogenic compounds such as 2-amino-1-methyl-6-phenylimidazo[4,5-b]pyridine and 2-amino-3,8-dimethylimidazo[4,5-f]quinoxaline were reduced by 88% and 40%, respectively, after marinating for six hours.

Furthermore, the levels of 4,8-DiMeIQx, a compound with reported mutagenic properties, was reduced significantly when the beer marinade was used.

In taste-panel tests of pan-fried steak (control) or red wine- or beer-marinated steaks, no significant difference was found in the odor, color and overall quality of steaks marinated in beer and the control, non-marinated steaks. The marinade duration was limited to two hours as a longer marinade was reported to produce detrimental effects on odor, color and overall quality.
To see the article, go to: www.foodnavigator.com.
-- FoodNavigator.com



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      CWD Found In Minnesota Farmed Elk

The Minnesota Board of Animal Health (MBAH – www.bah.state.mn.us) says a farmed elk, a seven-year-old female, from an Olmsted County herd tested positive for Chronic Wasting Disease (CWD).

As part of mandatory surveillance program requirements, the elk’s brain stem and lymph nodes had been submitted to USDA’s National Veterinary Services Laboratory (NVSL) in Ames, IA, after slaughter. NVSL confirmed the animal had CWD, and MBAH quarantined the herd on Jan. 23.

Minnesota implemented mandatory registration and CWD surveillance programs for farmed cervidae herds in 2003. When farmed cervidae over 16 months of age die or are slaughtered, herd owners must submit brain samples for CWD testing.

CWD is a fatal brain and nervous system disease found in cervidae in certain parts of North America. The disease is caused by an abnormally shaped protein called a prion, which can damage brain and nerve tissue.

Infected animals show progressive loss of body weight with accompanying behavioral changes. In later stages of the disease, infected animals become emaciated (thus “wasting” disease). Other signs include staggering, consuming large amounts of water, excessive urination, and drooling. There is no evidence that CWD can be transmitted to humans.
For more on CWD, visit www.bah.state.mn.us.
-- Minnesota Board of Animal Health

    Capitalizing On Your Calf Crop Begins With Breeding

Two producer-panelists speaking at the recent BEEF Quality Summit shared their perspective on what it means to manage costs and product quality for profit.
-- Click on headline to read the rest of this story by Alaina Burt



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      Cattlemen Hear Long-Term Outlook

Here are the highlights of the U.S. cattle industry’s long-term outlook, according to officials addressing the “CattleFax Outlook 2009” session in Phoenix on Thursday.

“Per-capita beef supplies will decline 1.5-2.0 lbs. during 2009. Supplies are expected to continue to decline into 2011.
“Per-capita meat supplies (beef, pork and poultry) are expected to decline nearly 4 lbs. during 2009. This will be the largest year-to-year decline since 1981-82.

“Demand will be the biggest wildcard during 2009-2010, both domestically and globally. The magnitude of the current recession suggests this will be the longest and one of the deepest of any time in history. Demand is expected to remain soft through 2009, but exports are still expected to grow compared to 2008.

“Production costs will moderate during 2009 compared to last year. Costs will remain elevated but should decline slightly for the year in total.

“The single biggest opportunity for the U.S. beef and cattle industry is expanding market access for U.S. beef products.

“Opening the Japanese market to product less than 30 months of age could add nearly $4/cwt. to the fed market and $10/cwt. to the calf market.

“Mexico and Canada are two of the largest export destinations for U.S. beef. Non-tariff trade barriers, like mandatory country of origin labeling, are short-sighted legislation for an industry trying to compete in a global marketplace. If the U.S were to lose access to Mexico and Canada, it would negatively impact the market by nearly $50-$60/head on all classes of cattle.”
-- CattleFax Outlook 2009 Executive Summary

      Comment Period For Payment Limitations Rule Extended

USDA Secretary Tom Vilsack is directing USDA to extend the comment period for the payment limits rule for an additional 60 days. Vilsack says, “Let's be clear – in no way is this move a signal that we will modify the rules for the 2009 crop year. Sign-up has begun and it's important that clear and consistent rules remain in place so that producers can prepare for the crop year and manage their risk appropriately."
USDA has received seven comments on the proposed payment limits rule.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Fighting Another Dairy Herd Buyout

Just as historically short cattle numbers are adding support to the topsy-turvy cattle markets, the dairy industry is seeking to make a buy-out program for that industry part of the nation’s economic stimulus package.

The National Cattlemen’s Beef Association (NCBA) sent a letter to the Senate last week opposing the proposal.

“The cattle industry is not subsidized by the government, nor do we wish to be,” says Andy Groseta, NCBA president. “However, we are subject to the unintended consequences of policy directed towards other sectors of agriculture, such as the dairy industry. Flooding the market with beef and driving down the price for our products will be devastating for America’s cattle producers.”

Groseta explains the proposal would use taxpayer dollars to raise dairy prices by buying older dairy cows from farmers, taking approximately 6.5 billion gals. of milk off the market. This would result in nearly 320,000 additional head of cattle entering the beef market, which could drastically reduce the price of beef cattle.

“All of agriculture is experiencing the impact of the current economic downturn, and the cattle industry is no different,” Groseta says.

According to NCBA, proponents of the buyout suggest lessening the consequences for the cattle industry by using USDA Section 32 funds to purchase ground beef. A similar plan was implemented in 1986, which didn’t prevent the cattle market from crashing. The 1986 buyout resulted in a 25% decrease in the price paid to producers for beef cattle and sent the cattle markets to the lowest point seen in the last 30 years. In total, the beef industry saw a $1-billion loss from the buy-out in 1986.

“NCBA doesn’t support utilizing taxpayer dollars to both fund this proposed buyout and to try and mitigate its ill effects on the cattle business,” Groseta says. “This is a flawed proposal and we urge Congress not to include it in the stimulus package.”
Now would be a good time to express your thoughts about it to your senators.
-- Wes Ishmael, BEEF Stocker Trends

      Grassfed Association Plans February Conference

The American Grassfed Association will host its sixth annual conference Feb. 5-7 in Lexington, KY. Participants will learn economic strategies in alternative ranching/farming practices, hear an update on government regulations and see carcass-cutting demonstrations, among other things. For info, log on to www.americangrassfed.org.
-- American Grassfed Association release

      Homeland Security Launches Educational Campaign

The U.S. Department of Homeland Security’s (DHS) Ready Campaign, in partnership with The Advertising Council, is introducing a series of social media tools to further engage Americans in emergency preparedness. The initiative is an extension of “Resolve to be Ready in 2009,” a nationwide effort to encourage individuals, families, businesses and communities to prepare for emergencies in 2009.

The tools will engage Americans in taking the three simple steps communicated in the Ready Campaign: Get an emergency supply kit, make a family emergency plan, and be informed about the types of emergencies that can happen in your area and their appropriate responses.

At the initiative’s center is a new webpage, “Be Prepared,” which features an interactive widget providing updates on emergency situations, local emergency contact info, an instructional video, emergency-kit checklists and guidelines on how to better prepare for an emergency. Users can also access a clickable map to find contact info for state and local government agencies.

The widget helps users stay up to date on the latest Ready activities through Twitter news feeds (by following the user name “ReadydotGov”). The widget can be posted to social-networking profiles, blogs, wikis and personal homepages.

The program also includes a tool for visitors to create a comprehensive family emergency plan and share important info with family and friends. Furthermore, visitors are encouraged to share their preparedness story by submitting a video to the Ready Campaign Video Blog. Access the new webpage by clicking on the online banner on the homepage of www.ready.gov.
-- DHS release

      House Ag Committee Subcommittees Named

The chairmen and ranking members for the House Ag Subcommittees were named this week. Conservation, Credit, Energy and Research: Tim Holden (D-PA), chairman, and Bob Goodlatte (R-VA), ranking member; Department Operations, Oversight, Nutrition and Forestry: Joe Baca (D-CA), chairman, and Jeff Fortenberry (R-NE), ranking member; General Farm Commodities and Risk Management: Leonard Boswell (D-IA), chairman, and Jerry Moran (R-KS), ranking member; Horticulture and Organic Ag: Dennis Cardoza (D-CA), chairman, and Jean Schmidt (R-OH), ranking member; Livestock Dairy, and Poultry: David Scott (D-GA), chairman, and Randy Neugebauer (R-TX), ranking member; and Rural Development, Biotechnology, Specialty Crops, and Foreign Ag: Mike McIntyre (D-NC), chairman, and Michael Conaway (R-TX), ranking member.
-- P. Scott Shearer, Washington, D.C. correspondent

      House Ag Committee’s Oversight Agenda

The House Ag Committee expects to conduct oversight on a number of issues during the 111th Congress. Some of the items the committee has indicated it expects to review are:
  • USDA’s implementation of the 2008 farm bill.
  • Current state of health of the U.S. farm economy.
  • USDA’s implementation of the farm bill payment limit and adjusted gross income provisions.
  • Increase in agribusiness consolidation.
  • USDA’s implementation of the energy title of the farm bill.
  • Availability of biofuels pumps and approved fuels.
  • EPA’s regulation of Animal Feeding Operations.
  • Role and effectiveness of the Federal Crop Insurance Program.
  • Address sanitary and phytosanitary (SPS) barriers and other technical barriers to U.S. ag exports and examine USDA efforts to eliminate such barriers.
  • USDA’s enforcement of the Humane Methods of Slaughter Act and humane handling regulations.
  • Assess effectiveness of the Grain Inspection, Packers and Stockyards Administration (GIPSA) in determining market manipulation in the livestock industry.
  • USDA’s mandatory livestock price reporting system.
-- P. Scott Shearer, Washington, D.C. correspondent

      House Passes Stimulus Package

The House of Representatives passed an $819-billion stimulus package with no Republican support. The bill includes approximately $275 billion in tax cuts and almost $545 billion in domestic spending. The Congressional Budget Office estimates that 65% will be spent by September 2010. The Republicans offered a $475-billion alternative focused heavily on reducing individual and business taxes which failed.
-- P. Scott Shearer, Washington, D.C. correspondent

      National Beef Backer Awards Announced

Winners of the National Beef Backer Award, which recognizes chain and independent restaurant operators who excel in menuing and marketing beef, were announced this week. This year’s national winners include: Cattlemens Restaurants (Santa Rosa, CA) in the “Independent” category, Charlie Brown’s Steakhouse (Mountainside, NJ) in the “Chain” category and Merriman’s Restaurants (Kamuela, HA) as the “Innovator of the Year.”

  • Cattlemens Restaurants is a regional chain with eight locations in Northern California. Founded in 1968 by ranchers Pete Gillham Sr., and Pete Gillham Jr., it features the best cuts of beef, served simply and in generous portions in a charming Western ambiance. John Frenzel, marketing director for Cattlemens Restaurants, says, “With a mouthwatering menu, innovative beef promotions and a dedication to satisfying guests, Cattlemens Restaurants has remained a place where tradition has outlasted the trendy.” All steaks are hand-cut on premise the same day they’re served, then grilled to perfection, Frenzel says.
  • Charlie Brown’s Steakhouse has been committed to serving beef selections at an incredible value for 40 years. In addition to traditional prime rib and steak cuts, the firm features newer beef cuts such as the Ranch and Flat Iron steaks as a way to continue offering their patrons a delicious steak at an affordable price,” says Tom Law, executive chef.
  • Merriman’s Restaurants’ chef and owner, Peter Merriman, says beef is a central part of the upcountry Hawaii lifestyle, and its regional menu. “Our partnership with local ranchers guarantees us high-quality, great tasting beef products and an authentic dining experience,” Merriman says.
-- Cattlemen’s Beef Board

      New Ag Weather Website Available

The Weather Channel has a new website aimed at ranchers and farmers. The Farmers Forecast site adds ag-related alerts in addition to the severe weather alerts already available at the www.weather.com site. These alert producers to warnings with freeze, frost, high wind or hail indicators for each forecasted day. Not only does the page include the percent of precipitation, but an actual projection of the amount of rain expected.

In addition to 36-hour and 10-day forecasts, the new section includes an almanac that allows users to compare the forecast with typical and historical weather conditions. Producers can reference past weather conditions and plan for their crops accordingly using info such as daily and monthly averages, as well as actual reported conditions from the day, week and month to date.

To see the weather site, go to www.weather.com/outlook/agriculture/forecast/73162 and enter your zip code.
-- Ron Hays, Radio Oklahoma Network

      New Members Named To Senate Ag Committee

Three new members were named to the Senate Ag Committee – Michael Bennett (D-CO), Kirsten Gillibrand (D-NY), and Mike Johanns (R-NE).
-- P. Scott Shearer, Washington, D.C. correspondent

      North Dakota Agri-Tourism Workshops Scheduled

North Dakota State University (NDSU) Extension is conducting two workshops for individuals interested in starting a farm- or ranch-based tourism business in North Dakota. Workshops are Feb. 10 at the McKenzie County Courthouse in Watford City, and Feb. 12 at NDSU's Carrington Research Extension Center.

The 10 a.m.-3:30 p.m. programs will cover tourism trends and business opportunities; assets for tourism in rural North Dakota; educational vacations; financing an agri-tourism business; and the legal, liability and health considerations of an agri-tourism business. The program also will include a business assistance panel that will provide information on how the NDSU Extension Service can assist these efforts, the North Dakota Intern Program and student learning through YouTube (Watford City only).

Registration is $15/person, plus $10 for each additional person from the same organization or family before Feb. 6; or $25 at the door. Go to www.ag.ndsu.edu/ccv/happenings.htm for registration forms. Send the completed form and check payable to NDSU Extension to: NDSU Extension Center for Community Vitality, 2718 Gateway Ave., #104, Bismarck, ND 58503. For more info, call 701-328-9718 or email kathleen.tweeten@ndsu.edu.
-- NDSU release

      Overton Grazing School Now Accepting Enrollment

The 2009 Overton Pasture and Management Workshop is now accepting enrollment for two sessions, March 24-26 and March 31-April 2. Designed to help novice and experienced ranchers fine tune their livestock operations to reduce costs of inputs and increase returns, the courses are set for the Texas AgriLife Research and Extension Center at Overton.

Each session lasts three days, with time split between classroom and in-field instruction. Topics cover all aspects of running a beef operation, from establishing and maintaining high-quality forages to calibrating sprayers, taking soil samples, castrating and vaccinating cattle, and dehorning calves. Also included is training on writing a business plan for a ranch, keeping proper records, choosing the appropriate forage species for different soils, understanding soil fertility, establishing forage systems that minimize winter feeding costs, setting correct stocking rates, choosing the right cattle breeds, promoting good animal health, and marketing cattle.

Enrollment for the three-day course is $350 and includes all meals, coffee breaks, refreshments and workshop handbook. See a full agenda at overton.tamu.edu/grazingschool.htm. To register or for more info, contact Jennifer Lloyd at 903-834-6191 or jllloyd@ag.tamu.edu.
-- Texas AgriLife news release

      Prohibition On Non-Ambulatory Cattle Proposed

The Senate Appropriations Committee included language in its portion of the stimulus package that would prohibit the slaughter of nonambulatory cattle for human food.
-- P. Scott Shearer, Washington, D.C. correspondent

      Transformation Of U.S. Livestock Industry Report

USDA’s Economic Research Service (ERS) has produced a report on the transformation of the U.S. livestock industry. The report looks at the many factors that have gone into the change from smaller to larger operations, as well as the implications.

Larger operations are able to realize lower costs and higher returns, while tighter coordination among firms at different processing stages can reduce financial risks, according to the report. This change has been driven by strong financial pressures.
View the whole report at www.ers.usda.gov/publications/eib43.
-- USDA Economic Research Service

    Vilsack Outlines Priorities

USDA Secretary Tom Vilsack outlined his priorities this week in a meeting with reporters. The priorities include:
-- Click on headline to read the rest of this story by P. Scott Shearer, Washington, D.C. correspondent

      Workshop On Managing Ohio's Beef Industry Offered

Ohio State University (OSU) Extension will offer a program series in February to aid beef producers in managing their businesses while staying on the cutting edge of the industry.

“Managing Dynamic Change in the Beef Cattle Industry” will be held on consecutive Wednesdays and Thursdays in February. Hosted at two locations, Highland County Training and Employment Center in Hillsboro and Alexander High School in Albany, each program begins at 6 p.m.

OSU Extension, along with the Ohio Cattleman's Association (OCA) and the Southern Ohio Agricultural and Community Development Foundation, will host the program. Registration is $50 for the first person from a cattle operation and $25 for each additional person from that same operation.

Go to fairfield.osu.edu/ag/beef/beefNovr12.html to learn more, or contact John Grimes at 937-393-1918, Rory Lewandowski at 740-593-8555, or OCA at 614-873-6736.
-- Ohio State University release

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