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Certainly, President Obama’s proposed budget is a long ways from
passing, but as one commentator put it, “it will be historic even if
only a fraction of it is passed into law.” (See it at www.whitehouse.gov/omb/)
It’s difficult to assess the impact of the size of these deficits on
long-term capital creation and access, the inflationary pressures that
will be created by such a massive devaluation of the dollar, or the
increase in commodity prices that will result. Political perspective and
objectives will determine how one views most of the proposals, but one
thing that can be said with 100% certainty is that we’re looking at an
unprecedented shift in the direction of the country.
This paradigm shift will inevitably lead to some major shifts in
agriculture as well. Setting aside the long-term impacts, either
scenario should be bullish for agriculture, especially for those with
land assets that are paid for. Those who are leveraged will have to
determine if this is the 1930s or the 1980s – the two time-reference
points everyone is referring-to and what those impacts will be.
- Personally, I don’t believe that the comparisons to the 1930s
are justified. Whether one looks at unemployment, interest rates,
inflation, or just about any other economic index, there’s very little
similarity to the 1930s. That is, with the exception of the erosion in
consumer confidence.
- Meanwhile, the comparisons to the 1980s seem to be equally invalid,
again with the exception of the erosion in consumer confidence. After
all, the situation and causes for today’s problems seem to be very
different from those of the 1980s. Will today’s changes create the
economic environment found in the late ’80s and ’90s or the early
’80s? The answer you derive will greatly influence how you want to
position your operation for the future.
As the magnitude of the change being proposed is without precedent, one
would expect the results of this shift to be unprecedented in the long
term, as well. Ultimately, the outcome for agriculture will be tied to
overall economic results, but in the short term, I can’t think of a
better industry than agriculture to be involved in at this time.
-- Troy Marshall
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pounds of calf to sell by using Gelbvieh or Balancer bulls on those
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It was yet another confusing step added to what has already been one
of the most screwed-up rulemaking processes in history. Last week, USDA
Secretary Tom Vilsack let it be known that the rule for mandatory
country of origin labeling (COOL) would go forward as proposed. He then
followed it up with a whole set of his own suggested changes (see
“Vilsack Asks Industry To Go Beyond COOL Rule” elsewhere in this
newsletter).
These included: the inclusion of processed foods, labeling of
mixed-country product, and a shortening of the time allowance on ground
beef from 60 to 10 days. In his letter, he also indicated that if his
voluntary suggestions weren’t followed, additional rules would be
forthcoming.
Canadian producers responded by asking their government to reinvigorate
the World Trade Organization challenge that earlier had been pulled off
the table.
-- Troy Marshall
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This is an exciting time in the cattle business, a time full of
change. And managing change is the challenge.
We would love to know what you’re thinking on some of these topics.
Take a few moments and send us an email with your thoughts on some of
the following topics. We’ll then summarize and share your thoughts.
- Do you expect prices to be higher or lower for calves, fed
cattle and cows next fall compared to this fall?
- Do you plan to expand, maintain or reduce cow numbers in the coming
year?
- Are you changing your bull-selection parameters this spring compared
to previous years? If so, in what way (reducing mature size, emphasizing
pounds, efficiency, carcass traits, calving ease, heterosis, etc.)?
- Do you expect to market your calves in the same manner next year?
How about five years from now?
- What is the greatest challenge you face?
- Do you expect the global economy to begin to rebound in 3-6 months,
6-12 months, or more than a year?
- If you were going to describe the cattle business to someone looking
to enter it, would you call it – a great opportunity, tough but worth
it, or pretty bleak?
Send your comments to: Troy Marshall, P.O. Box 297, Burlington, CO
80807; or e-mail seedstockdigest@hotmail.com.
-- Troy Marshall
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www.nalf.org
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A new coalition, Agriculture for a Democratic Workplace, announced
its opposition to the proposed card check legislation, “Employee Free
Choice Act.” The legislation would eliminate secret-ballot elections
in favor of card check. If a majority of the employees sign a petition
or card, then the facility would be organized.
Members of the new coalition include: American Farm Bureau Federation,
American Nursery and Landscape Association, National Cattlemen’s Beef
Association, National Chicken Council, National Milk Producers
Federation, National Potato Council, National Turkey Federation, United
Fresh Produce Association, U.S. Apple Association, and Wine
Institute.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Applications for the American Angus Auxiliary scholarships are now
available online. The postmark deadline for applications is May 10.
Interested Junior Angus members can download the application and find
info at www.angusauxiliary.com/scholarships/index.html.
For specific state and local Auxiliary scholarship info, visit the
website or contact your local Angus Auxiliary.
-- American Angus Association release
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According to the foodborne-illness data crunched by the Center for
Science in the Public Interest (CSPI) in its annual “Outbreak
Alert!” report (cspinet.org/new/pdf/outbreak_alert_2008_report_final.pdf),
a pound of fish and shellfish is 29 times more likely to cause illness
than the safest food category, a pound of dairy foods. After dairy,
produce is the second-safest category of food, followed by pork and
beef, then eggs and poultry.
“Outbreak Alert!” includes nearly 5,800 outbreaks that occurred
between 1990 and 2006 for which both the food and the pathogen are
identified. The data set has been published by CSPI for the last 10
years (see the article at: www.cspinet.org/new/200811251.html).
Of course, as the American Association of Meat Processors (AAMP) points
out in the Feb. 15 issue of its AAMPlifier newsletter, dairy
products have the advantage over the other foods because of the “kill
step” of pasteurization. While the AAMP article calls irradiation
“simply another tool to ensure the safety of” fresh meats, it could
be every much the silver bullet for ground beef that pasteurization is
for dairy products if food and producer organizations actually pushed
consumer education on the technology.
The beef industry, in particular, which has expended, and continues to
expend, millions of checkoff dollars on interventions to eliminate E.
coli O157:H7 in ground beef, should be pushing this technology
harder than anyone else. It’s interesting that despite all the effort
and allocation of shrinking checkoff dollars that have gone into
battling ground beef’s E. coli O157:H7 problem, USDA sampling
of ground beef turned up twice the incidence of E. coli O157:H7
positives in 2008 over the previous year.
-- Joe Roybal
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After three weeks of upward movement, the national average price for
regular gasoline dropped 5.5¢ to $1.909/gal. for the week ending Feb.
23. That’s $1.221 below the price a year ago. Meanwhile, diesel was
down for the sixth straight week, dropping 5.6¢ to $2.13/gal., $1.422
below last year.
Gasoline on the East Coast slipped to $1.912, the Midwest to $1.808, the
Gulf Coast to $1.785, the Rocky Mountains to $1.801, and the West Coast
to $2.221. California shed 3¢ to hit $2.261/gal.
Diesel was down across all regions. The East Coast decreased 5.1¢ to
$2.199, the Midwest 6.6¢ to $2.071, the Gulf Coast 5.9¢ to $2.074, the
Rocky Mountain price 2.5¢ to $2.158, and the West Coast was at $2.238.
California slipped 4.3¢ to $2.219/gal.
-- U.S. Energy Information Administration
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The American Gelbvieh Association (AGA) board has approved an
aggressive plan and policy to eliminate the Arthrogryposis Multiplex
(AM) gene from the Gelbvieh herdbook. AM is a genetic defect found in
certain lines of Angus cattle. The Balancer® cattle registered with
AGA have the possibility of being AM carriers if the Angus genetics used
in the hybrid seedstock carry the AM gene.
AGA’s plan requires all bulls applying for an artificial insemination
(AI) permit to be tested AM-free before a permit is issued, says Wayne
Vanderwert, AGA executive director. “AGA is also testing the 30 most
popular AI sires as a risk assessment for the breed.”
Vanderwert says the Gelbvieh herdbook’s exposure to the AM gene is
relatively low, but may increase as more Angus sires and dams are
tested. “We are in a good place and the policy will help us eliminate
AM carriers from the herdbook with a step-up policy over the next three
years. By Jan. 1, 2012, all Balancer cattle will need to test AM-Free to
be eligible for registry,” he says.
In addition, AGA will require testing of all AM-50 females in the
herdbook. An AM-50 animal has one or more AM-Carrier parents or more
than one AM-Carrier grandparent.
A complete copy of the policy and plan is available at www.gelbvieh.org.
-- AGA news release
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The House of Representatives passed a $419-billion omnibus
appropriations bill that completes the appropriations for fiscal year
(FY) 2009. Discretionary spending for ag in FY ’09 is $20.5 billion,
about $1.9 billion more than President George W. Bush’s request and
$2.5 billion over current spending. Among the highlights are:
- Food Safety and Inspection Service (FSIS) – $972 million, a
$41-million increase.
- National animal ID – $14.5 million, an increase of $4.8 million,
to meet the technology needs of the new animal-tracking system and
continue to enroll stockyards in the system.
- Livestock competition – $40.3 million, an increase of $1.8
million, to assure fair competition and fair trade practices, safeguard
farmers and ranchers, and protect consumers and members of the
livestock, meat and poultry industries from unfair, deceptive,
discriminatory and monopolistic practices.
- Imported poultry from China – prohibits USDA from moving forward
with a rule to allow poultry products from China into the U.S.
- Mandatory country-of-origin labeling (COOL) – provides $9.6
million for USDA’s Ag Marketing Service to administer and oversee the
implementation of mandatory COOL.
- Inspection pilot program – prohibits USDA’s Food Safety
Inspection Service (FSIS) from implementing a pilot program to inspect
certain facilities using a risk-based model until FSIS implements
changes recommended by the USDA Inspector General.
- The Senate is expected to pass the bill by March 6.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Kathleen Merrigan has been nominated to be USDA Deputy Secretary;
she currently serves as assistant professor and director of the
Agriculture, Food and Environment M.S. and Ph.D. Program at the Friedman
School of Nutrition Science and Policy at Tufts University. She served
as administrator of USDA’s Ag Marketing Service from 1999-2001, and
was a staff member of the Senate Ag Committee from 1987-1992.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Only 20-25% of cattle producers like to keep records, according to
Eldon Cole, University of Missouri Extension livestock specialist.
However, Cole says there is a financial incentive to keep very complete
production records on beef cow-calf operations. The incentive is
significant for those with age- and source-verified feeder calves.
The amount of the premium varies, but could be from $20-$35/head at
harvest. At least that’s the premium offered by some packers. “The
export market in particular wants beef from cattle with age and source
information. It’s not that much trouble to identify cows and calves
with tags or brands and the cost is minimal considering the expected
returns,” Cole says.
Producers not retaining ownership-to-harvest records will have to search
out feeder-calf markets or feedlots that may offer higher calf prices
for calves with trace-back potential. “Just putting ear tags in a set
of calves could send a positive message to the buyers on the seats that
these calves have been handled. That means not only are ages possibly
known, but there’s a chance they’ve had some vaccinations given to
them,” Cole says.
Not only do owners need the ear tag to prove the calves’ age, but the
paperwork must be available on birthdates and cow identification so in
case of an audit, the info can be proven.
“Tagging and birthdate recording is just the right thing to do,
whether it’s for the premium or just for management and breeding
purposes,” Cole says.
-- University of Missouri Extension release
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Drought-stressed pastures are an all-too-common sight across the
U.S. But with management and TLC, they can still be productive.
-- Click on headline to read the rest of this
story by Larry Stalcup
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The D.C. Circuit Court of Appeals denied this week a petition by the
National Cattlemen’s Beef Association (NCBA) and other groups for
review of the EPA rule that regulates dust under the Clean Air Act
(CAA). The regulation of ag dust means activities ranging from soil
tilling, cattle movements in feedyards, driving on unpaved roads, and
planting and harvesting crops could all come under EPA regulation.
Calling regulation of ag dust under the CAA “completely
unjustified,” Tamara Thies, NCBA chief environmental counsel, said,
“…the requirements imposed by EPA’s rule are simply unnecessary
and unattainable. In today’s tough economic times, this unwarranted
and burdensome government interference could prove to be devastating for
America’s cattle producers.”
EPA released a final rule on regulating particles in the air under the
CAA in October 2006, which says states should focus on regulating dust
in urban, rather than rural, areas because of a lack of scientific data
on health or environmental effects of ag dust. But because EPA stopped
short of exempting ag dust from regulation, NCBA filed an appeal of the
rule. Oral arguments were held Sept. 15, 2008.
"The CAA is intended to regulate pollutants that cause adverse health or
environmental effects," Thies explains. "Clearly, expanding this to
include the regulation of ag dust goes beyond the intent of the Act."
-- NCBA news release
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Bud Williams, Greg Judy, and Donnell Brown will share their
knowledge and experience at the “Seeds for Success” grazing
conference at Eastern Oklahoma State College in Wilburton, May 22-23.
Williams, a guru on low-stress livestock handling, will provide a
three-hour session covering both marketing and stockmanship. Judy,
author of “No Risk Ranching: Custom Grazing on Leased Land,” will
discuss high stock density grazing and his signature “no-risk
ranching” approach. Brown, seedstock and marketing manager for the
R.A. Brown Ranch in Throckmorton, TX, will describe how to match cattle
to the environment in terms of both genetics and economics.
Registration is $200 and includes meals. Attendees should RSVP with a
$50 deposit by May 8. For more info or to register, contact Troy Walker
at 918-448-7300 or visit www.eosc.edu/academic/agdiv.html.
-- Kerr Center news release (www.kerrcenter.com)
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This week, the Minneapolis Star Tribune came out with a story
entitled “The peanut recall: From start to end” detailing how Lunds,
a Minnesota-based grocery chain, responded to one of the largest and
most complicated food recalls (read the recap here: www.startribune.com/business/).
This excerpt made me pause: “A typical Lunds or Byerly's store carries
more than 30,000 distinct products, each with its own Universal Product
Code, or UPC. That's the black-and-white bar code that cashiers scan at
the checkout. It's also the key for most retailers when a recall is
announced; no other code works as quickly.”
Using this technology, all of Lunds’ products could be cross-checked
with the UPC code of the source (King Nut products). While the article
attempts to describe the complex food chain to consumers, I couldn’t
help but wonder when this level of traceability will be required for
beef products – whether from within our industry, or more likely,
consumers of our products.
-- - Alaina Burt
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When the EPA issued a final ruling Dec. 18 that required the
reporting of continuous air releases of ammonia and hydrogen sulfide by
large confined animal feeding operations (CAFOs) to local and state
emergency management entities, it created more than a little heartburn
for cattle feeders.
-- Click on headline to read the rest of this
release by Texas AgriLife Extension
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A total of 12 state legislatures are now considering measures to
express their support of, or actively encourage, the reestablishment of
U.S. horse processing plants. TheHorse.com reports resolutions
indicating opposition to HR 503, the federal Conyers-Burton Prevention
of Equine Cruelty Act, which would eliminate horse slaughter nationwide
and prohibit the export of horses to slaughter are either under
consideration or have already passed in: Arizona (SCM 1001), Kansas (HCR
5004), Minnesota (SF 133), North Dakota (HB 1496), South Dakota (SCR 2),
Utah (HJR 7), and Wyoming (HJR 8).
In addition, bills amending state laws to promote private investor plant
development are pending in: Arkansas (HCR 1004), Illinois (HB 0583),
Missouri (House, HCR 19; Senate, SCR 8), Montanta (HB 418), and
Tennessee (HB 1361).
The state measures were prompted by a resolution submitted into the
National Conference of State Legislatures' (NCSL) Ag and Energy
Committee in December 2008 by Wyoming State Rep. Sue Wallis and then
South Dakota State Rep. Dave Sigdestad.
A bipartisan organization, NCSL advocates for state governments'
interests before Congress and other federal agencies. The resolution
encourages legislators in rural states to promote horse processing on
the basis of generating jobs and addressing the issue of unwanted
horses.
"We want to take the emotion out of the slaughter issue and look at it
economically," Sigdestad said. "These bills are the only way we have to
get our voices heard in Washington."
-- TheHorse.com
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BEEF readers know food-animal agriculture is under attack.
Animal rights and environmental groups are doing all they can to
essentially pressure us out of business. And they aren’t limiting
themselves to honesty, either.
-- Click on headline to read the rest of this
story by Dave Sjeklocha, DVM, Sublette, KS
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USDA Secretary Tom Vilsack sent a letter to the packing industry
indicating that the final rule for mandatory country of origin labeling
(COOL) will go into effect as scheduled on March 16. However, he’s
encouraging industry to voluntarily implement stricter guidelines for
COOL. The letter outlined three areas:
- Labeling of product from multiple countries of origin. In
order to provide consumers with sufficient info on the origin of
products, processors should voluntarily include info about what
production step occurred in each country when multiple countries appear
on the label. For example, animals born and raised in Country X and
slaughtered in Country Y might be labeled as “Born and Raised in
Country X and Slaughtered in Country Y.” Animals born in Country X but
raised and slaughtered in Country Y might be labeled as “Born in
Country X and Raised and Slaughtered in Country Y.”
- Processed foods. The definition of processed foods contained
in the final rule may be too broadly drafted. Even if products are
subject to curing, smoking, broiling, grilling or steaming, voluntary
labeling would be appropriate.
- Inventory allowance. “The language in the final rule allows
a label for ground-meat product to bear the name of a country, even if
product from that country was not present in a processor’s inventory,
for up to 60 days. This provision allows for labels to be used in a way
that doesn’t clearly indicate the product’s country of origin.
Reducing the time allowance to 10 days would limit the amount of product
with these labels and would enhance the credibility of the
label.”
Vilsack said, "I strongly support COOL – it's a critical step toward
providing consumers with additional info about the origin of their food.
USDA will be closely reviewing industry compliance with the rule and
will evaluate the practicality of the suggestions for voluntary action
in my letter."
To view the letter, go to: www.ams.usda.gov/
-- P. Scott Shearer, Washington, D.C.
correspondent
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A recent study of land-based water conservation practices and the
affect on water yield in south-central Texas may provide help in
increasing water flows.
“Restoring Native Texas Rangelands for Increased Water Yield” is an
executive summary published by the Texas A&M Institute of Renewable
Natural Resources of its technical evaluation in a 20-county area around
San Antonio under the purview of the South Central Texas Regional Water
Planning Group.
Among the study’s findings, if rangeland restoration is done properly,
in the right locations and maintained over time, an additional acre-foot
of water yield can be gained for every 5-8 acres of brush converted to
native rangeland in the Edwards Plateau and for every 15-30 acres
converted in the South Texas plains. The cost of additional water yield
through rangeland restoration compares favorably to other methods of
acquiring additional water, according to the study.
To see the executive summary, go to www.texas-wildlife.org
-- Texas Wildlife Association
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The Feb. 20 item, “Oklahoma Tornadoes Offer A Stark Reminder”
advises readers that “If you are a cattle producer, being prepared
[for disasters] means record keeping and animal ID.” I would add that
there is more to being prepared for a disaster than being able to claim
animals afterwards, and it is essential to state this in an article
proffering advice.
What is of utmost importance is making every preventive effort to
protect animals from being harmed or lost in the first place. It is a
most basic responsibility. Although the link included with the article
provides helpful information to that effect, the author was remiss to
not have mentioned it straight out.
-- Mary Finelli
Silver Spring, MD
Editor responds:
Thanks for your feedback. You make a great point – if time permits, we
certainly must do everything possible to move animals to a safe place.
However, I live in “Tornado Alley” and can tell you from experience
that oftentimes when a tornado hits, short of an underground bunker,
there’s not much you can do. They come quickly, sometimes in a matter
of minutes, and even a small tornado can do tremendous damage.
-- Burt Rutherford
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I’d like to add a few points to the article, “Calving Tips”
(http://beefmagazine.com/health/calving/0101-advice-help-herd/),
which may help save more calves. I’m a veterinarian with 40 years’
experience. I also taught veterinary obstetrics at Washington State
University and had the good fortune to be able to use the artificial
uteri to teach the students proper manipulation of the fetus during
obstetrical management.
-- Click on headline to read the rest of this
story by Ronald Olsen, DVM
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