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BEEF'S COW CALF WEEKLY    April 17, 2009  |  A PENTON MEDIA PUBLICATION
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What's new on BEEF?
- BEEF Daily blog
- Will the IRS view your ranch as a hobby?
- Are low rate herbicide applications worth the risk?
- Roll On, Rendering Trucks, Roll On
- Read the April issue online
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- A Lender’s Lessons On Business Survival
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- Read the April issue online!
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    Table Of Contents
> A Scottish Woman Provides A Lesson For All
> The Cattle Market Shows Some Pop
> NAIS Is Back In The Headlines
> ACRE Enrollment Opens April 27
> Ag Asks For Resolution Of Mexican Truck Issue
> BQA Training In West Texas
> Beef Cattle And Forage Crops Field Day Is May 7
> Beef Exports Maintain Momentum
> Congress Returns Next Week
> Drought-Related Tax Breaks Available
> EU Pushing For Animal Welfare In WTO Agenda
> Ethanol’s Effects On Food Prices Documented
> In Praise Of Cages For Laying Hens
> NRCS Accepting Ranchland Protection Applications
> No Engine Performance Change With 20% Ethanol
> Novel Technology Detects FMD
> Now Is A Good Time To Get After Fire Ants
> Online Petition Opposes “Criminalizing Horsemeat”
> Prepare Now To Beat Drought Later
> Rush Limbaugh Supports HSUS
> Senate Approves Resolution On Death Tax Relief
> Texas Plans 2009 Beef Cattle SPA Workshops
> Tips For Dealing With Flood-Damaged Hay
> U.S. Ag Largely Applauds Cuba Policy Change
> U.S., Canada Near Accord On Organic Equivalency
> USDA Plans Animal ID Dialogue And Listening Tour

    Our Perspective
      A Scottish Woman Provides A Lesson For All

If you want to be inspired, and have the time to watch a fascinating seven-minute video, go to www.youtube.com/watch.

The video is of a Scottish woman who has never been married (claims to never have been kissed) and lives with her cat “Pebbles” in a small village. She has become an overnight sensation on both sides of the Atlantic.

The video is of her audition with “Britain's Got Talent,” a British TV show that is similar to “American Idol” in the U.S. The video has been viewed more than 13 million times and Boyle has been featured on morning news shows all across the U.S., as well.

I've probably watched this video five times now and it gets better each time. I don't want to ruin the surprise of the video. However, it illustrates one of those moments that remind us not to judge a book by its cover and that talent and beauty sometimes emerge from the strangest places. It is worth the seven minutes it takes to watch the clip.
-- Troy Marshall



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      The Cattle Market Shows Some Pop

Whether it’s simply spring demand kicking in or tighter numbers catching up to the market, the entire cattle complex showed quite a bit of strength this week. Of course, six months ago, most analysts would have said that the prospects of $90 fats next week would be a big disappointment instead of a positive one. However, a whole lot has changed in the last six months; the one thing that hasn't is that the supply side of the market remains very positive, and demand continues to exceed most expectations.
-- Troy Marshall

    NAIS Is Back In The Headlines

While the National Animal Identification System (NAIS) never went away, it has simmered on the back burner for quite some time. The proliferation of age- and source-verification programs has enabled many producers to capture the economic benefits associated with traceback capabilities, leaving NAIS in the position of being one of those industry initiatives where customers say they want it, scientists tell us we need it, but nobody wants to bear the cost.
-- Click on headline to read the rest of this story by Troy Marshall

   
      ACRE Enrollment Opens April 27

USDA says producers can enroll in the Average Crop Revenue Election (ACRE) program beginning April 27. ACRE is the new option to the traditional counter-cyclical payments provided in the 2008 farm bill.

Producers will have until Aug. 14 to make their decision for the 2009 crop. Producers who elect the ACRE program for a farm agree to: 1) forgo counter-cyclical payments; 2) accept a 20% reduction of the direct payments; and 3) accept a 30% reduction in loan rates for all commodities produced on the farm. More info about the ACRE program is available at local Farm Service Agency (FSA) county office or visit www.fsa.usda.gov.
-- Scott Shearer, Washington, D.C. correspondent

      Ag Asks For Resolution Of Mexican Truck Issue

Over 140 ag organizations and companies wrote President Barack Obama urging him to work “expeditiously to resolve” the Mexican trucking issue that has resulted in tariffs on U.S. exports to Mexico. The U.S. Department of Transportation’s Cross Border Trucking Pilot Program with Mexico was terminated by Congress earlier this year. Opponents of the program have argued that Mexican trucks lack adequate safety.

The U.S. is now in violation of its bilateral trade obligations with Mexico on international trucking. Mexico has instituted retaliatory tariffs on $2.4 billion worth of U.S. manufactured and ag exports.

The letter to Obama said, “…we strongly urge you to work with Congress and quickly resolve the Mexican trucking issue to end retaliatory tariffs. Until this issue is resolved, Mexico’s retaliation will continue to economically harm U.S. farmers, manufacturers and service providers and those who work in these industries.”

Those signing the letter included the American Farm Bureau Federation, American Meat Institute, American Peanut Council, American Seed Trade Association, American Soybean Association, Corn Refiners Association, International Dairy Foods Association, National Association of Wheat Growers, National Cattlemen’s Beef Association, National Corn Growers Association, National Grange, National Milk Producers Federation, National Pork Producers Council, U.S. Meat Export Federation, and USA Rice Federation.
-- Scott Shearer, Washington, D.C. correspondent



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      BQA Training In West Texas

The Texas AgriLife Extension Service and the Texas and Southwestern Cattle Raisers Association (TSCRA) will conduct a free Texas Beef Quality Producer Program April 21 in Lubbock.

Registration begins at 9:30 a.m. at the Texas AgriLife Research and Extension Center in Lubbock. The half-day training and certification will cover the program’s principles, record keeping, environmental stewardship, genetic selection, cattle handling, culling, and vaccine and drug use.

The program is free and includes a catered lunch. For more info or to RSVP, which is requested, contact TSCRA’s Stacy Fox at 800-242-7820 or sfox@texascattleraisers.org.
-- Texas Agri-Life Extension release

      Beef Cattle And Forage Crops Field Day Is May 7

The Kansas State University Southeast Ag Research Center’s (SARC) Beef Cattle and Forage Crops Field Day is May 7 at the Mound Valley Unit. The program, which kicks off at 8:30 a.m. with coffee and donuts, are: mineral supplementation of grazing beef cattle, bermudagrass variety selection, factors affecting market value of feeder cattle, pasture weed and brush control update, and evaluation of hay storage systems. For more info, contact SARC at 620-421-4826.
-- KSU news release

    Beef Exports Maintain Momentum

Increased beef exports to South Korea and Vietnam helped overcome declines in the beef industry’s leading markets of Mexico and Canada, says the U.S. Meat Export Federation (USMEF).
-- Click on headline to read the rest of this release by USMEF

      Congress Returns Next Week

Congress returns next week to a full agenda. Priorities will be the conference report on the budget and begin the appropriations process for fiscal year 2010. The House Ag Committee plans hearings on crop insurance and food safety.
-- Scott Shearer, Washington, D.C. correspondent



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      Drought-Related Tax Breaks Available

Livestock producers forced to sell during drought conditions in 2008 are eligible for tax breaks offered by the IRS. And producers who have already filed returns without the tax breaks can file amended returns to take advantage of the benefits, says Jose Pena, Texas AgriLife Extension Service economist based in Uvalde.

According to Lance Williams, producer relations specialist with the Texas Department of Ag in Austin, the IRS allows producers to defer taxes on drought-related livestock sales. In addition to the sale of livestock, the breaks also apply to animals purchased in the future as replacements, Pena said.

“Reporting income from the sale of inventory livestock may be delayed,” he said. “If you sell or exchange more livestock than you normally would in a year because of a drought, flood or other weather-related conditions, you may be able to postpone reporting the gain until the next year.”

The drought-related break on replacing livestock extends over two years, and up to four years if an area has been officially declared a disaster area, he said. The tax deferment for livestock sales allows a one-year postponement.

Producers can get specifics from their certified public accountants and the IRS tax codes, Williams said. For more information, please visit www.irs.gov/pub/irs-pdf/p225.pdf and www.irs.gov/irb/2008-42_IRB/ar10.html .
-- Texas Agri-Life Extension release

      EU Pushing For Animal Welfare In WTO Agenda

The European Union (EU) is pushing for the inclusion of animal welfare standards in World Trade Organization (WTO) multilateral trade negotiations, reports www.thaindian.com.

"Inclusion of animal welfare standards in the WTO agenda is urgently needed to effectively enforce animal standards worldwide, and to improve the appalling condition of slaughter houses in many countries, including India," New Delhi, India-based Citizens for Animal Rights (CAR) said in a release.

Quoting European representatives, the CAR added: "Animal welfare concerns are being increasingly recognized in food production around the world, but they must be formalized within the WTO trade agreements."

But the India government opposes the EU move, reports financial express.com, citing such moves as “non-tariff trade barriers by developed countries to curb exports.”

But Michael Scannell, adviser to the European Commission's Animal Health and Welfare Directorate, says: "Getting formal recognition of animal welfare standards within the binding WTO agreements is crucial for unlocking the UN and World Bank resources needed to help the developing world raise its animal welfare levels."
-- Media reports

      Ethanol’s Effects On Food Prices Documented

The Congressional Budget Office (CBO) in a recent report, “The Impact of Ethanol Use on Food Prices and Greenhouse – Gas Emissions,” found ethanol contributed just “0.5 and 0.8 percentage points of the 5.1% increase in food prices” from April 2007 to April 2008. The report says, “Over the same period (April 2007 to April 2008), certain other factors – for example, higher energy costs – had a greater effect on food prices than did the use of ethanol as a motor fuel.”
-- Scott Shearer, Washington, D.C. correspondent

    In Praise Of Cages For Laying Hens

My wife and I used to have free-range chickens. We didn’t get an abundance of eggs because the hens hid them in the barn hay – and then brought us batches of live chicks instead of breakfast makings. And, they stopped laying during the winter so we had to buy commercial eggs at the local grocery.
-- Click on headline to read the rest of this story by Dennis T. Avery

      NRCS Accepting Ranchland Protection Applications

USDA’s Natural Resources Conservation Service (NRCS) is accepting applications for the Farm and Ranch Land Protection Program (FRPP), a voluntary conservation program that helps farmers and ranchers keep their land in agriculture. Eligible entities can apply at any time, but must submit applications on or before June 1 to receive consideration for fiscal year 2009 funding.

FRPP provides funds to purchase development rights to keep productive farmland in ag uses. Working through existing programs, NRCS joins state, tribal or local governments and non-governmental organizations to acquire conservation easements.

Only eligible entities may submit applications. These include state, tribal or local governments and non-governmental organizations that meet specific requirements. The entities must have an established farm and ranchland protection program.

FRPP can provide up to 50% of appraised fair market value of the easement on the farm or ranch. At least 50% of the appraised fair market value of the easement must be provided by the eligible entity.

Land proposed for funding in FRPP must meet one of three eligibility categories:
  • Contain at least 50% prime and unique farmland soils and soils of statewide and local importance.
  • Contain historic or archeological resources.
  • Contain land that supports the farm and ranch land protection policies of state or local programs.
-- Southwest Farm Press

      No Engine Performance Change With 20% Ethanol

A study by the Minnesota Center for Automotive Research at Minnesota State University found that increasing ethanol blended into gasoline from 10% to 20% causes no significant change in the performance of automotive fuel systems. The study included eight models of fuel pumps running each model using one of three different fuels – gasoline, E10 and E20. Pumps with E20 showed less wear than those run with gasoline.

The study results are available at: www.mda.state.mn.us/news/publications/renewable/ethanol/e20endurance.pdf. -- Scott Shearer, Washington, D.C. correspondent

      Novel Technology Detects FMD

Scientists at the Plum Island Animal Disease Center in New York are using infrared thermography (IRT) to identify cattle that may be infected with foot-and-mouth disease (FMD). While the technology has been used for years in other fields, USDA researchers at Plum Island say it’s the first time it’s been used as a tool for early detection of FMD.

“It’s a huge endeavor to examine animals one by one. Even on a small farm it’s a big task,” says Louis Rodriguez, research leader. Using IRT technology isn’t intended to be a diagnostic test, he says. Rather, it enables scientists to concentrate their resources by quickly isolating animals that require further testing.

It works by spotting hot hooves. In an IRT photograph of a group of cattle, the hooves of healthy animals appear blue-green, whereas infected cattle have orange-red feet. The Plum Island researchers found they could detect elevated hoof temperatures up to two days before cattle developed clinical signs.

For more info, go to www.ars.usda.gov/is/AR/
-- Agricultural Research Service release

    Now Is A Good Time To Get After Fire Ants

When it comes to fire ants, Dale Pollet, Louisiana State University (LSU) AgCenter entomologist, says the best months to start a control program are April and October.
-- Click on headline to read the rest of this release by Delta Farm Press

      Online Petition Opposes “Criminalizing Horsemeat”

“Oppose Criminalizing Horsemeat” is an online petition available at: www.rallycongress.com/support-animal. It seeks to “urge Congress and the Obama Administration to protect the private property rights of livestock owners and to oppose legislation that would restrict the market, transport, processing or export of horses; to recognize the need for humane horse processing facilities in the U.S.; and not to interfere with State efforts to establish facilities in the U.S.”

Give it a read and sign if you agree.
-- Joe Roybal

      Prepare Now To Beat Drought Later

If you’re worried about a drought again this year or looking for ways to limit the forage problems drought can cause, Bruce Anderson, University of Nebraska Extension forage specialist, has some advice.

Early spring is a time when action can be taken to minimize some of drought’s problems, Anderson says. He suggests to begin by preparing a strategy for using leftover hay.

“One of the better options is to feed hay a bit longer this spring before turning cows out to permanent pasture. This action is exactly opposite of my usual recommendation to graze more and feed less hay, but allowing pastures to accumulate a bit more growth before grazing begins will provide more total grazable forage if drought prevents much regrowth later on,” he says.

Leftover hay also can be used later during the grazing season to give pastures more time to recover between grazings, he adds.

Another strategy is to plant drought-tolerant forages for pasture or hay. Summer annual grasses like sudangrass, sorghum-sudan hybrids, and pearl millet are excellent choices.

“Wait until soils are good and warm before planting these grasses, though. Late May or early June usually is best,” Anderson advises. “So reserve some ground now for these drought-insurance grasses, before you plant everything to corn, beans, and other crops.” Anderson says these grasses can also be planted into the stubble as a double crop after wheat harvest.

“If the rains don’t come, planning and acting now to reduce potential forage losses from drought will pay big dividends,” he says.

Editor’s note: For more info, read “Five Drought-Planning Steps To Take Today,” at: beefmagazine.com/cowcalfweekly/drought-planning-steps/index.html.Also, see “Drought Checklist” at: beefmagazine.com/mag/drought_checklist/index.html.
-- Bruce Anderson, University of Nebraska

      Rush Limbaugh Supports HSUS

Yes, you read the headline correctly. Rush Limbaugh, the bastion of conservative thinking in the U.S., has become a spokesman for the Humane Society of the U.S. (HSUS).

The move didn’t go unnoticed by cattle folks. The Texas Cattle Feeders Association (TCFA) contacted its members, asking them to contact Limbaugh and explain HSUS’ true agenda. Here’s what TCFA said:

“Fans of Rush Limbaugh have been shocked to learn that he has become an advocate for HSUS. In fact, Rush has narrated two commercials on behalf of HSUS.

“To hear the audio of Rush's commercials supporting HSUS, click here: www.hsus.org/press_and_publications/press_releases/rush_limbaugh.

“Rush is probably like many supporters of HSUS – well-intentioned in wanting animals to be treated with compassion but uninformed about the organization's real mission. We hope you will send a message to Rush at: ElRushbo@eibnet.com.

“Please feel free to use all or part of this sample message:

Rush,

Because we share many of the same conservative beliefs, I am very saddened to learn of your support for an organization that is working hard to put all cattlemen, including me, out of business. The Humane Society of the United States (HSUS) has long pursued a goal of putting an end to all animal agriculture.

I know you believe in doing solid research. If you really check into what HSUS is up to, you will find that – despite having $200 million in assets – HSUS does not operate a single animal shelter nor provide financial support for local humane societies or shelters. HSUS is nothing other than a radical political organization determined to force all Americans to eat a vegan diet and forfeit the unique nutritional properties of beef.

Many well-intentioned people have been duped into donating their hard-earned dollars to HSUS because the drive-by media refuses to expose the truth about HSUS. I hope your show will become a place where people can get the facts about this organization's real agenda.”
-- Burt Rutherford

      Senate Approves Resolution On Death Tax Relief

A non-binding budget resolution passed in the U.S. Senate last week supports raising the death tax exemption to $5 million/individual and $10 million/couple, indexed for inflation, while reducing the maximum tax rate to 35%. Currently, estates valued at more than $3.5 million, or $7 million for a couple, are taxed at a 45% rate.

The National Cattlemen’s Beef Association (NCBA) lauded the 51-48 vote on the measure sponsored by Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ). The Obama administration had proposed exempting estates up to $7 million, with a 45% tax rate for estates beyond that level.

“This is a huge victory for America’s farmers and ranchers,” says Gary Voogt, NCBA president and rancher from Marne, MI. “Nearly half of NCBA’s members have operations that have been in their families for more than one generation, and they should have the right and the ability to pass these operations on to their children and grandchildren.

“Many farmers and ranchers are what we call 'land rich and cash poor',” explains Voogt. “This is not a tax cut for the rich. Cattle producers are often forced to sell off land, farm equipment, parts of the operation, or the entire ranch just to pay off liabilities under the death tax.”
-- NCBA news release

      Texas Plans 2009 Beef Cattle SPA Workshops

Texas AgriLife Extension is planning two 2009 Beef Cattle Standardized Performance Analysis (SPA) workshops – April 28 at the Nolan County Extension Office in Sweetwater, and May 6 at the Texas Agrilife Research and Extension Center in Vernon. Both programs begin at 8:30 a.m.

Stan Bevers, AgriLife Extension economist at Vernon, says SPA “can make good cow-calf producers better by measuring individual operations and comparing them to a pool of similar operations.”

Participants will complete an in-depth financial and production analysis of their cow herd, specifically the calves weaned in 2008.

"This analysis will give them an excellent idea of where they currently stand," he says. "Comparing their findings with others helps them establish both short and long term goals for their herd."

Registered participants will be sent forms to organize data before the workshop. Assistance in gathering and organizing the records and data needed to complete the analysis is available, so participants should register as early as possible, Bevers says. Confidentiality of the producer’s data will be maintained.

Following completion of the analysis, each participant will receive an individual meeting with a specialist certified in the program, and guidance on developing and using the info to measure cow herd performance and cash flow. They will also get a "herd report card" that compares their herd’s performance to other herds. Software and supporting materials will be provided.

For more info or to register, contact Bevers at 940-552-9941, Ext. 231 or s-bevers@tamu.edu; or Bill Thompson at 325 653 4576 or .
-- Texas AgriLife Extension release

      Tips For Dealing With Flood-Damaged Hay

Floodwaters have inundated hay supplies in many parts of North Dakota and Minnesota this spring.

"Time is of the essence in salvaging wet hay," Greg Lardy, North Dakota State University (NDSU) Extension beef cattle specialist, tells producers dealing with flood-damaged hay this spring. "It will heat and mold very quickly, leading to spoilage as well as the possibility of spontaneous combustion."

Lardy recommends producers move dry hay off wet hay because the water in the wet hay will soak up into the dry hay.

Producers also need to watch the hay for signs of heating, such as a strong burning odor, noticeable vapor or a hot feeling when it's touched. Hay bales that are 30-40% moisture content pose the greatest risk of fire, so producers should check them often. Check daily if the hay seems to be heating.

To check a haystack's temperature for fire risk, drive a sharp-pointed pipe into the hay, lower a thermometer inside the pipe and leave it there for about 20 minutes. Hay is approaching the fire danger zone at 150° F. At 170°, hot spots or pockets of fire are possible, so have the fire department on standby.

One option to reduce fire risk if the hay temperature rises to more than 140° F, is to split the hay into two piles and monitor it daily.

Lardy warns against feeding hay that’s been flooded to livestock because floodwaters are considered contaminated. Thus, the hay probably isn't safe for livestock consumption, or worth the time and expense of drying it. Instead, dispose of it or spread it on fields as fertilizer.

Producers also should not feed moldy legume hays, such as alfalfa or clover, to livestock because the hay could cause reduced performance, sickness, abortions or death.

For more info on dealing with wet hay or other flood-related issues, visit NDSU's flood info web page at www.ag.ndsu.edu/disaster/flood.html.
-- NDSU release

      U.S. Ag Largely Applauds Cuba Policy Change

The recent loosening of several trade and travel sanctions against Cuba hasn’t produced a consensus of opinion for the Obama administration. While U.S. ag interests – happy at the growing possibility of opening trade with Cuba in the near future – have been supportive of the move, some Obama supporters have knocked the new Cuba policy as too timid. Others have derided it as a reward to a despotic Cuban government.

As a result of the policy changes, those living in the U.S. with relatives in Cuba are now allowed to visit them regularly. In addition, care packages and unlimited money transfers between family members in the two nations are allowed. U.S. telecommunication companies will also have greater access to the island nation.

Prior to the recent policy shift, an executive order by President Bush had limited travel to Cuba to once every three years and limited remittances to family members at $300 annually.

“This is a good first step, but we can and should do more,” says Sen. Max Baucus (D-MT), Senate Finance Committee chairman. “I urge the President to relax restrictions on the sale of U.S. ag products to Cuba. We need to make it easier for America’s farmers and ranchers to sell their high-quality products, including Montana’s world‐class wheat and barley, to one of our closest markets.”

During the last session of Congress, Baucus introduced legislation to ease trade and travel restrictions for U.S. farmers and ranchers. He plans to introduce similar legislation in the coming weeks.

Baucus says an independent International Trade Commission study found that removing U.S. export restrictions would increase the annual U.S. share of Cuba’s ag imports to nearly 70%. If true, that would mean an annual boost of over $300 million in U.S. ag sales.

U.S. ag sales to Cuba have averaged $400 million annually since 2000, says Bob Stallman, American Farm Bureau Federation (AFBF) president. Top commodity sales include poultry, wheat, soybeans, rice and dairy. With expanded trade to the country, the AFBF expect ag sales to increase to more than $1 billion annually.

“Current language in the omnibus appropriations bill aids U.S. agriculture by allowing travel on a general license for those making ag sales to Cuba rather than the specific license currently needed,” said Stallman. “This would ease delays that significantly impact the ability to transact commercial sales with Cuba, which in some cases, have been lost to U.S. competitors because of the restriction.

“Other priorities for AFBF in regard to Cuba include commercially defining ‘cash payments in advance’ as intended by Congress in the 2000 Trade Sanctions and Reform Act; allowing the country to directly wire payment to U.S. banks instead of going through a third-country bank as it does now; and issuing visas for Cuban inspectors to travel to the U.S. to meet with suppliers, inspect facilities and verify procedures and standards associated with the sale of U.S. food and agricultural exports to Cuba.”

For more on U.S./Cuba trade, see deltafarmpress.com/searchresults
-- Forrest Laws, Farm Press

      U.S., Canada Near Accord On Organic Equivalency

The U.S. and Canada have agreed to finalize organic equivalency standards by this summer, says the Organic Trade Association.

Canada’s nationwide Organic Products Regulations, set to be implemented June 30, will require all Canadian organic products to be endorsed by a certification body accredited by the Canadian Food Inspection Agency (CFIA). Meanwhile, USDA’s final rule on national organic standards, fully implemented in October 2002, is slightly different from the new Canadian regulation. USDA says the two governments intend to reach an agreement before the introduction of the new rules for Canadian organic produce, which would ensure that trade continues uninterrupted.
-- FoodNavigator.com

      USDA Plans Animal ID Dialogue And Listening Tour

USDA Secretary Tom Vilsack held a roundtable discussion with various stakeholders to discuss views on the National Animal Identification System (NAIS). Vilsack said, “Much work has been done over the past five years to engage producers in developing an animal identification system that they could support. However, many of the issues and concerns that were initially raised by producers, such as the cost, impact on small farmers, privacy and confidentiality and liability, continue to cause debate.”

USDA plans a future nationwide listening tour to seek additional stakeholders concerns and solutions regarding NAIS. As of April 5, a total of 510,750 livestock premises in the U.S. – or 35.5% – had registered under NAIS out of an estimated total of 1,438,280 premises. For a a breakdown, visit: animalid.aphis.usda.gov/nais/premises_id/update.shtml
-- Scott Shearer, Washington, D.C. correspondent

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