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I've always considered myself an optimist. But at last week’s
cattle-industry convention, I got huddled up with feedyard owners a
couple of times and it was hard not to walk away with a pessimistic
attitude.
Everyone’s read about the feeding sector’s losses in recent times,
but numbers sometimes just feel like numbers until you talk to the
people experiencing it firsthand. That’s the greatest thing about
experience – once you’ve lived through a blizzard, written the check
for $150/ton hay, closed out a pen that lost $200/head and paid that
margin call – it gives you a different outlook than just reading
numbers in black and white.
This year is one of the most unique because it’s easy to find vastly
different perspectives within the same segment of the industry. Sure,
all cow-calf producers are aware of the decline in prices that occurred
after the financial crisis drove all commodities lower. But one's
perspective is drastically different depending on whether you contracted
your calves or sold them early, vs. later in the year.
The feeding industry would be similar, as some who were positioned
correctly in the corn and fed markets actually had a very good year.
Meanwhile, other feeders have had a year that would rival the worst ever
experienced in terms of profitability.
We've known for a long time that the feeding industry was burdened with
excess capacity, a lesson that’s been reinforced with the events of
the last 18 months or so. We're also aware of what it will take to
remove some of that capacity, but none of that makes it any easier to
live with if you are in the business. The bottom line is that economics
will dictate that some of that capacity is going to go away.
Still, there’s a lot of optimism; most of it is justified.
Fundamentally supplies are tight and are going to either tighten or
remain manageable in the foreseeable future. The American economy will
eventually rebound; when it does, prices should take a dramatic jump.
And that price jump could be explosive if one believes that inflation
rates are likely to increase.
The bottom line is that once the economy turns around, those who have
inventory are likely to reap huge rewards. The question that everyone is
asking, of course, is when will the economy turn around? Very few are
willing to speculate but everyone believes it is coming; it’s now a
function of timing, and the actual timing is critical.
-- Troy Marshall
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Once a bright and hopeful prospect, the proposed stimulus package
has actually become a negative influence on the U.S. economy. As is so
often the case, the stimulus bill has become something else – an
opportunity to reshape government's influence in the economy, as well as
fund a lot of programs that wouldn’t otherwise be funded if they had
to stand on their own merit.
-- Click on headline to read the rest of this
story by Troy Marshall
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The National Cattlemen’s Beef Association and others pushed back
hard and quick last week when dairy interests began talking about
another federally funded dairy buyout. Memories are still sharp and
backsides still raw – among both beef-cattle interests and politicians
– from the catastrophe created by the 1986 dairy buyout debacle. Thus,
the idea seemed to fade into oblivion quickly.
-- Click on headline to read the rest of this
story by Troy Marshall
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Kristy Lage, Arthur, NE, is the 58th president of the American
National CattleWomen, Inc. (ANCW). Lage has chosen the theme "BEE-Fit"
as she represents CattleWomen involved in the beef industry across the
nation.
As a theme, Lage encourages members to “Beef-Fit” showcasing the
power of protein as part of a healthy physically fit lifestyle, and
mentally fit to represent our industry with current and accurate
knowledge of the beef issues consumers need to understand in a changing
environment.
Lage has served ANCW and the beef industry on the local, state and
national level. A Cattlemen's Beef Board Representative since 2006, she
currently serves on the Retail Committee. She was Nebraska CattleWomen
president in 2004, ANCW Region VII Director and Legislative chair. And
she was a state team member for the National Beef Cook-Off in 2007 and
on the Committee in 2009.
Kristy and husband Ron are first-generation farmers and ranchers near
Arthur, NE. They have a diversified farming and ranching business with
cow-calf, backgrounding, plus irrigated corn, alfalfa and pasture.
Named to ANCW’s 2009 Executive Committee are: Lage; president-elect
Lana Slaten, AL; recording secretary Glee Swanson, NE; past president
Fita Witte, NM; Region I director Bonnie Bargstedt, NY; Region II
director Marcia Lightsey, FL; Region III director Bev Rowe, IA; Region
IV director D’dee Haynes, OK; Region V Director Linda Davis, MT;
Region VI director Barbara Jackson, AZ; Region VII director Janice
Rustad, ND; parliamentarian, Ginny Lee, NE; and Anna Larsen, NE,
historian.
In addition, Ginny Lee, Valentine, NE, was named the ANCW’s 2008
Outstanding CattleWoman of the Year. An active member for 40 years, Lee
has served on the board of directors, as secretary, on various
committees and as vice chair and chairman of the National Beef Cook-Off
(NBCO) Committee and co-chair of the 1999 NBCO. She is a wife, mother,
grandmother and active volunteer in her community and church.
The Outstanding CattleWoman of the Year Award is given to one
cattlewoman each year who has excelled at continued beef promotion on
the local, state, and national level, while contributing dedication,
commitment and support to the American National CattleWomen, Inc.
-- ancw@beef.org.
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“The U.S. beef industry is in a global slugfest,” says Clint
Peck, a BEEF contributing editor and director of beef quality
assurance at Montana State University’s Institute for Global Beef
Studies. “To succeed we must know as producers how we can work to keep
gaining ground in the marketplace at home and abroad.”
Peck will discuss these and other issues Feb. 11 at the World Ag Expo in
Tulare, CA. His 11 a.m. presentation, “Global Beef Systems – How Do
We Compete?” will provide participants with a better understanding of
the beef production and marketing systems around the world. He’ll also
shed light on what consumers are demanding as they make their beef
buying decisions as well as what is deemed “quality beef” around the
world.
Peck has traveled and studied beef systems in most of the world’s
major beef-producing countries. At the World Ag Expo seminar,
beef-production practices in countries like Argentina, Australia, Brazil
and the European Union will be examined in relation to the globally
unique systems of the U.S. and Canada. The program will conclude with
suggestions on how U.S. beef producers can compete in the global
marketplace.
The global marketplace is a key reason for optimism in the beef
industry, and one of the reasons why BEEF magazine, the official
beef publication of the World Ag Expo, encourages producers to attend
this event. A free beef lunch will follow the hour-long presentation.
-- Joe Roybal
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Researchers in Canada have developed a blood test that can diagnose
chronic wasting disease (CWD) in elk and believe it may eventually
provide a cheap way to screen cattle for BSE.
The test looks for signs of damaged cells in the blood, the researchers
reported in the journal Nucleic Acids Research. “We can now
take a blood sample from a live animal and look at the DNA patterns in
the blood and predict six months ahead of time whether an animal is
infected with chronic wasting disease,”
Christoph Sensen of the University of Calgary told Reuters.
Rather than looking for prions, they studied circulating nucleic acids
– little bits of DNA that get spat out when distressed cells die.
Sensen said it will take four years to replicate the findings in cattle.
-- Reuters
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Congressman John Dingell (D-MI) has introduced legislation to
increase the Food and Drug Administration’s (FDA) ability to police
food, drugs, medical devices and cosmetics. The bill requires all
facilities operating within the U.S., or importing food to the U.S., to
register with FDA annually. The legislation also requires payment of a
registration fee per facility to generate revenue to fund food-safety
activities at FDA.
New authority will be given to FDA to issue mandatory recalls of tainted
foods, and it strengthens fines imposed on food facilities that fail to
comply with safety requirements. Also, the bill requires meat, poultry
and seafood products to which carbon monoxide has been added to be
labeled with a consumer notice that the freshness of the product should
not be judged by color.
Additional food safety legislation is expected to be introduced in the
House of Representatives and the Senate this month.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The national average price for regular gasoline increased 5.4¢ to
$1.892/gal. for the week ending Feb. 2. However, the price remained
$1.086 below a year ago and $2.222 below the all-time high set July 7,
2008. Meanwhile, diesel dropped for the third consecutive week – 2.2¢
to $2.2246/gal. That’s $1.034 below the year-ago price, and $2.518
below the high set July 14, 2008.
Gasoline was up in all regions. The East Coast moved up 6¢ to $1.876,
the Midwest 5¢ to $1.87, the Gulf Coast 7.3¢ to $1.802, the Rocky
Mountains 6.8¢ to $1.712, and West Coast 2.5¢ to $2.082. California
was up 1.8¢ to $2.113.
Over the past 18 weeks (since Oct. 6, 2008), the average price of diesel
has increased only once, and all regions were down for this week. The
East Coast slipped 1.9¢ to $2.325/gal., the Midwest 3.1¢ to $2.201,
the Gulf Coast 1.3¢ to $2.189, the Rocky Mountains 1.4¢ to $2.229, and
the West Coast 1.6¢ to $2.303. California shed 0.8¢ for the week to
hit $2.288, which is $1.089/gal. under last year.
-- U.S. Energy Information Administration
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Senators Chuck Grassley (R-IA) and Herb Kohl (D-WI) have introduced
legislation to provide for greater review of mergers in agriculture by
the Department of Justice (DOJ). The legislation:
- Creates an Agriculture Competition Task Force (ACTF) to assist
the Justice Department and Federal Trade Commission in drafting
agriculture antitrust guidelines, examine problems in agriculture
competition, and coordinate activities to address anti-competitive
practices.
- Directs DOJ and the Federal Trade Commission (FTC), in consultation
with a working group of the ACTF, to draft ag-specific guidelines to use
when reviewing ag mergers.
- Amends the antitrust laws to shift the burden of proof in
agribusiness mergers to the defendant to prove that the merger will not
substantially lessen competition or create a monopoly in one or more
geographic markets.
- Requires DOJ and FTC to conduct a post-merger review of certain
agribusiness mergers (mergers that submitted second requests for
information) five years after they’ve been approved.
- Formalizes USDA’s review of ag mergers with the DOJ and FTC so
that USDA now will be an integral part of the anti-trust approval
process in every ag merger.
- Authorizes additional resources for GIPSA and DOJ to review ag
transactions.
- Creates USDA Office of Competition and Fair Practices, headed by
Special Counsel for Competition Matters.
- Creates DOJ Deputy Assistant Attorney General with responsibility
for ag matters.
Grassley said, “The DOJ has done little to ensure a competitive
environment in ag. The lack of enforcement and a propensity to approve
ag mega-mergers leads me to believe that we need to beef up our laws to
address vertical integration, concentration and predatory business
practices. Family farmers and small producers deserve a fighting chance
in the marketplace and consumers will also benefit from more vibrant
competition in the ag industry. We’ve been tinkering around the edges
for several years now. This legislation attempts to deal with the
problem head on.”
Similar legislation was introduced in the last Congress.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Humane Society of the U.S. (HSUS) is proposing that an Animal
Protection Liaison be appointed in the White House. HSUS wants this
person to coordinate animal-protection concerns including policy issues,
legislation and regulations. HSUS also advocates the appointment of an
Assistant U.S. Attorney to head a new Animal Protection Division in the
Department of Justice, “similar to the Civil Rights Division, to
ensure strong enforcement of federal animal-protection laws.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The latest monthly restaurant performance tracking survey conducted
by the National Restaurant Association confirms that the restaurant
business is in the midst of probably its worst contraction ever, the
Feb. 3 CME Group Daily Livestock Report says. The poll involves
about 500 or so restaurant operators regarding same-store sales
performance, customer traffic, expectations for future sales, and other
issues related to employment and capital expenditures.
The latest survey results show that, while sales lag across all
restaurant concepts, the fine-dining and family-dining segments have
been hit particularly hard. In fact, only 8% of operators in the
fine-dining concept reported higher sales than the previous year. Family
dining was slightly better but generally sales were down overwhelmingly
in this segment also.
Meanwhile, sales at limited-service restaurants, or quick-service
restaurants (QSR), were much better in comparison, with 49% of
respondents reporting lower sales compared to a year ago and 46%
reporting increased sales. This fits with generally positive results
reported from large publicly traded QSR companies, such as McDonalds,
the report says.
These results signal significant implications for the livestock
industry. With high-value cuts in less demand, light choice ribeye
prices closed on Tuesday afternoon (USDA quote) at just $4.2476/lb., 20%
off year-ago levels and 15% lower than the 2004-08 average. Prices for
other high-priced cuts are also down sharply.
“The better performance of the QSR concept should provide a boost to
demand for grinding beef raw materials and prices for beef trimmings are
steady to higher compared to year-ago levels. The problem that the
industry also faces is the general decline in foot traffic, which will
tend to negatively reduce beef volumes flowing through the system. Yes,
cattle numbers are down but fewer customers eventually mean fewer
restaurants and a real decline in U.S. aggregate beef demand.”
-- CME Group Daily Livestock Report
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The House Small Business Committee has indicated a number of issues
it would like to do oversight on this Congress. Issues include:
- Farm bill – implementation of the farm bill and its impact on
family farms, ranchers and rural small businesses.
- Climate Change – examine how farmers and small businesses can
contribute to climate-change mitigation, and how they can minimize their
climate impact that will positively affect their revenues and
profitability.
- Rail competition – examine competition problems facing small firms
as related to the rail industry and rail rates, and identify
anticompetitive barriers to entry. The committee will indentify
antitrust policies that increase competition and foster market
conditions, thus allowing for more competition in terms of price and
availability for rural areas.
- Food prices – review how commodity prices have dramatically
declined, yet retail food prices remain high.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Ask any reproductive physiology graduate student what their least
favorite activity is and they'll likely say, “heat detecting.”
That's because it's less interesting than breeding or preg-checking
cattle, says George Perry, South Dakota State University beef
reproduction and management specialist.
-- Click
here to read the rest of this story by Alaina Burt
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Is it time you finally fed out your calves? Though there's no sure
thing, the numbers point to a better profit potential in retaining
ownership of your calves through the feeder cattle stage or even the
feeding cycle. And if your genetics are good, high-quality carcasses may
give you an even better profit.
-- Click
here to read the rest of this story by Larry Stalcup
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Producers tend to pay attention to cow weight, but new research
suggests a cows milk production is also worthy of attention. The
research shows that cows with the genetic propensity to milk heavily
require more nutrients year round, not just when they are milking.
National Research Council data shows that a cow that produces 25 lbs. of
milk at peak lactation requires 10% more feed energy than a cow
producing 15 lbs. of milk at peak lactation. Looking at it in terms of
cow weight, to see a 10% difference in feed energy would require moving
from a 1,000-lb. cow to a 1,200-lb. cow, or a change of 200 lbs. of body
weight, says Matt Spangler, University of Nebraska beef specialist.
“There are breed differences in lactation yields, so breed selection
is critical in matching genetics to your environment,” Spangler says.
“We know that selection for increased yearling weights has led to
larger mature cows that are more expensive to maintain. Moderating
mature cow size and selecting for an optimal window of milk production
is beneficial when it comes to cutting costs regardless of your
production environment.”
Spangler says in limited feed environments, females with high
maintenance energy requirements may also have difficulty maintaining an
acceptable body condition score and rebreeding. “One study determined
that with limited nutrient availability, breeds with a high genetic
potential for milk production had longer anestrus periods which lead to
lower conception rates during a fixed breeding season. Other
researchers have concluded that selection for increased milk production
past an adequate threshold is not economically or biologically
efficient,” he says.
“Clearly identifying your production environment and realistic
production goals given that environment are critical,” he stresses.
“Profit lies in the optimization of expense and revenue and
optimization is always more challenging than maximizing or minimizing
inputs. It will require more effort, detailed financial records and a
structured breeding objective that builds a cow herd based on optimum
values and not extremes.”
-- Matt Spangler, University of Nebraska
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Montana State Vet Marty Zaluski told ranchers this week that the
state’s cattle industry will recover only if they buy into a Livestock
Department plan to eradicate brucellosis. The plan involves
blood-testing 153,000 cattle this year, vaccinating nearly 74,000 and
aggressively trying to distance livestock from elk during the first six
months of every year.
The plan relies heavily on ranchers honestly reporting their animals’
interaction with elk and bison, as well as vaccinating, tracking and
testing livestock in high-risk areas. Those actions will come with a
cost -- $2.5 million for the state in 2009, plus the uncalculated
expenses for ranchers deemed to be high risk due to exposure to elk and
bison around Yellowstone National Park. The park is considered the last
place in the nation where brucellosis is unchecked.
Montana lost its brucellosis-free status after eight cattle were found
with the disease in less than two years. Montana now is labeled a
“Class A” brucellosis state.
“I think if producers decide this plan is going to fail, then it’s
going to fail and we’ll be Class A for the foreseeable future,”
Zaluski said.
-- Billings Gazette
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The National Cattlemen’s Beef Association (NCBA) held the first
meeting of its newly formed Young Producers’ Council (YPC) at the 2009
Cattle Industry Annual Convention last week. The YPC was created in
2008, and is open to members ages 18 to 35. It is intended to promote
youth participation in both the beef industry and NCBA.
Dustin Dean, 32, Southwest Regional Director of Pfizer Animal Genetics
in Pleasanton, TX, was elected YPC chairman. Steven Yardley, 25, of
Yardley Cattle Company in Beaver, UT, is vice chairman.
“The average age of an NCBA member is 60 years old,” Yardley says.
“We’re going to see a void in member leadership in a few years, and
we need to develop young producers capable of filling that void and
providing direction for our industry.”
Dean says the YPC’s top three goals would be decreasing the average
age of NCBA membership by recruiting young members, creating an
attractive environment within NCBA for youth involvement, and developing
YPC as a strong and influential voice within NCBA.
NCBA President and Arizona cattle producer Andy Groseta says the
creation of this group was one of his main priorities during his term in
office.
“Young people are the future of our industry,” he said. “We
surveyed young producers recently, and although 90% said they had
opinions about NCBA policies, a third of them didn’t feel they had an
outlet for those opinions,” Groseta says.
Already, the YPC is seeing substantial interest from young people in the
cattle industry. On the social networking site, Facebook, the group has
more than 800 members.
-- www.beefusa.org
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Gary Voogt, a Marne, MI seedstock producer, is the new president of
the National Cattlemen’s Beef Association (NCBA). Read more about him
at: login.beefmagazine.com/wall.aspx.
Voogt succeeds Andy Groseta, a cow-calf producer from Cottonwood,
AZ. You can learn more about Groseta at: beefmagazine.com/people/groseta_desert_doer/
Steve Foglesong, who along with his wife and children operates a
cow-calf, stocker, feedlot and replacement heifer development program in
Astoria, IL, was chosen as NCBA president-elect; Bill Donald, a
third-generation rancher from Melville, MT, is vice president.
Newly elected to the NCBA Executive Committee are: J.D. Alexander (NE),
chairman of the Federation Division; Scott George (WY), vice chairman of
the Federation Division; Eric Smith (AL), chairman of the Policy
Division; and Tracy Brunner (KS), vice chairman of the Policy Division.
Elected as Federation Division Representatives to the Beef Promotions
Operating Committee were: David Dick (MO), Becky Walth (SD), Linda Joy
Stovall (TX), Tamara Ogilvie (NM), Craig Uden (NE), David Hamilton (NE),
Helen Weise (IA), and Chuck Adami (WI).
NCBA members also bid farewell to CEO Terry Stokes, who resigned after
13 years of service. He is replaced by Forrest Roberts. Among Roberts’
priorities for the coming year are: growing domestic beef demand,
expanding access to foreign markets, and protecting the U.S. beef
industry from actions that could impede a favorable business climate.
-- www.beefusa.org
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Feeding livestock when forage isn’t available is often an
expensive challenge for producers. But a new publication developed by
forage and grazing specialists in five states addresses this issue that
can affect the profitability of livestock operations.
“Extending Grazing And Reducing Stored Feed Needs” is an 18-page,
8½- by11-in. color publication available in PDF format at www.aces.edu/dept/forages/ExtendingGrazingReducingStoredFeedNeeds.pdf.
Written by Auburn University’s Don Ball, Ed Ballard of the University
of Illinois, Mark Kennedy with the Natural Resources Conservation
Service in Missouri, the University of Kentucky’s Garry Lacefield, and
Dan Undersander of the University of Wisconsin, the manual provides tips
on extending the grazing season.
The cost of providing pasture forage is usually no more than about
one-third of the cost of stored feed, says Ball, Auburn Extension
agronomist. With the recent sharp increases in livestock-production
inputs, producers should find this publication both timely and useful.
While the best techniques to reduce stored feed needs vary with
geographic region, type of farming operation, and other factors, this
publication outlines strategies that can be used to extend grazing and
increase profit. It was developed under the auspices of the Grazing
Lands Conservation Initiative, a consortium of livestock- and
forage-oriented organizations.
-- Maggie Lawrence, Auburn University
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Workshops to help producers with arthritis farm and ranch are
planned in Worland, Riverton and Wheatland, WY this month.
Workshops are set for Feb. 24 at the Washakie Learning Center in
Worland; Feb. 25 in Riverton at the Fairgrounds Armory Building; and
Feb. 27 in Wheatland at the Platte County University of Wyoming
Cooperative Extension Service (UW CES) office.
“More than 80% of ranchers and farmers experience some form of
arthritis,” says Randy Weigel, UW CES and project director for Wyoming
AgrAbility.
Topics include learning the symptoms, diagnosis and treatment of
arthritis, myths and facts of arthritis and ways to manage pain while
ranching and farming. Examples of assistive technology devices that can
make life less painful and what to look for when buying assistive
technology devices to help protect joints are also part of the workshop.
Speakers include Sarah Perry, Gottsche Rehabilitation Center
occupational therapist; Mary Fick Monteith, assistive technology
specialist with Wyoming Institute for Disabilities Assistive Technology
Resource; and Weigel.
Refreshments and a box lunch are provided. To learn more or register,
call 866-395-4986, or email agrability@uwyo.edu.
-- University of Wyoming Cooperative Extension
Service
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Sen. Byron Dorgan (D-ND) and six other U.S. Senate Democrats have
written USDA Secretary Tom Vilsack urging USDA to revise the mandatory
country of origin labeling (COOL) rule published by the Bush
administration. Their concern is with the provision that allows for
multiple country of origin label from products that are U.S. products
and foreign products.
The Senators said, “If we are just creating a system to label all
products as multiple-country origin, there’s no value in COOL and no
benefit to the consumer.”
The other Senators joining Dorgan were Kent Conrad (ND), Russ Feingold
(WI), Dianne Feinstein (CA), Amy Klobuchar (MN), Jon Tester (MT), and
Ron Wyden (OR). The rule is currently under review by the Obama
administration and scheduled to go into effect March 16.
-- P. Scott Shearer, Washington, D.C.
correspondent
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An endowed faculty chair has been established at Oklahoma State
University (OSU) to honor the legacy of the famous rodeo man, cowboy and
Oklahoma congressman. Ron Kensinger, head of the OSU Department of
Animal Science, says the Clem McSpadden Chair in Agricultural Youth
Leadership “will benefit the department of animal science by having a
faculty member who will focus on developing the next generation of
outstanding leaders for agriculture.”
McSpadden, a Chelsea, OK native and 1948 OSU animal husbandry graduate,
was a championship roper and professional rodeo announcer who went on to
serve Oklahoma as a state and federal lawmaker before his death last
year to cancer. He’s also credited with helping start country singer
Reba McEntire’s career by booking her to sing the national anthem at
the National Finals Rodeo.
For more info on the Clem McSpadden Chair in Agricultural Youth
Leadership or to make a gift, contact Kathy McNally at 405-744-7964 or
kmcnally@OSUgiving.com.
-- Oklahoma State University
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With the domestic and world economy in turmoil, and the new Obama
administration and a Democratic-led Congress begin their work, do you
think the costs of doing business as a U.S. beef producer will go up, go
down or stay the same? Perhaps you don’t know. That’s our monthly
poll available on the opening page of www.beefmagazine.com
-- Joe Roybal
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The Associated Press reports that a scheme in which workers in
federal veterinary laboratories located in Ames, IA, allegedly obtained
low-cost medicine intended for animals and used it for themselves and
their relatives may have been going on for “a number of years,”
according to John Clifford, USDA's chief veterinary officer. The
allegations involved primarily antibiotics, blood pressure medications
and pain relievers, but not narcotics.
-- Click on headline to read the rest of this
release by the USDA
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College students and high school seniors looking for help in funding
college expenses can submit an application for a Westchester Foundation
scholarship by March 1. Scholarships are awarded to high school seniors
accepted for enrollment or students already enrolled at an accredited
college, university or community college in a course of study related to
ag or agribusiness.
The Westchester Foundation was established by Murray Wise, Founder and
CEO of the Westchester Group Inc., with a mission to enhance the future
of American ag by helping to ensure a steady supply of bright,
dedicated, well-educated leaders. Students are selected based on
academic qualifications, community and school involvement, leadership
potential and financial need.
Provided the students maintain acceptable grade-point averages, the
scholarship can be renewed annually for up to four years, generally at a
minimum of $1,000/year. Download applications at www.westchester-group.com.
-- Westchester Foundation
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