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BEEF'S COW CALF WEEKLY    May 16, 2009  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Here Comes The Veto!
> The Horse Ban & The Law Of Unintended Consequences
> Enthusiasm Is The Key To Great Accomplishments
> 2008 Conservation Security Program Signup Extended
> Bryce Schumann Named Angus CEO
> Ethanol Beneath Their Wings
> Farm Bill Passes; Bush Veto Coming; Override Possible
> Gasoline And Diesel Surge To New Average Highs
> Improve Your Marketing Skills With MarketMaxx
> Kansas Program Targets Animal-Borne Ailments
> Korean Lawmakers Threaten Lawsuit Over U.S. Beef
> Legal Defense Fund Moves To Stop NAIS
> Meat & Poultry Promotion Coalition Support Farm Bill
> More Than 500 Groups Support Farm Bill
> New Portal Web Site Introduced
> Ranchers’ Roundup Set For May 20 In Sonora, TX
> Read About Cow Size In American Cowman Update
> Rising Food Prices & Small Firms
> Spring Storms Can Bring Unexpected Problems
> Studies Show Southeastern Cattle Do Measure Up
> Take Steps to Limit Damage To Muddy Pastures
> Vets Group Approves Horse-Transport Policy

    Our Perspective
    Here Comes The Veto!

One has to keep in mind that the $300-billion farm bill is largely about nutrition programs and conservation; only marginally is it about grain production. Nor is the livestock industry very directly involved, though it is indirectly influenced by a lot of it.
-- Click on headline to read the rest of this story by Troy Marshall



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      The Horse Ban & The Law Of Unintended Consequences

The banning of horse slaughter in the U.S. was one of those emotional ideas everyone agreed with initially and that rather handily passed into law. Unfortunately, the experts were right. Since the nation’s three horse-slaughter plants were closed by the pulling of federal inspection services last year, horse prices have fallen throughout the system, and neglect has skyrocketed as people have no way of disposing of unwanted animals.

This week, the Livestock Marketing Association (LMA), as part of its legislative efforts, called on members of Congress to change the law. LMA President Jim Santomaso said the industry is seeing “more and more reports of abandoned horses, and of horses turned out and left to starve, because owners can’t afford their upkeep, or have the means to properly dispose of them.” Santomaso, the operator of a Sterling, CO market, said LMA members report that horses are being left at their facilities when they don’t sell, “because their owners don’t want them back.”

Of course, the Humane Society of the U.S. looks to take the suffering even further, seeking legislation that would also ban the transport of horses to outside countries for slaughter. I suppose a bright side to all this is that the “wild” horse population stands to get a big new infusion of genetics, as people increasingly turn horses they can’t care for out onto public lands.
-- Troy Marshall

    Enthusiasm Is The Key To Great Accomplishments

It’s been said thousands of times that “nothing great is ever accomplished without enthusiasm,” something that’s especially true in ag. When one is dealing with Mother Nature and cyclical commodity markets, there are going to be a fair share of obstacles and challenges. Without enthusiasm for the future, it’s difficult to harness the energy required to take advantage of the opportunities created via difficulties.
-- Click on headline to read the rest of this story by Troy Marshall

   
      2008 Conservation Security Program Signup Extended

USDA’s Natural Resources Conservation Service (NRCS) has extended the signup period for the 2008 Conservation Security Program (CSP) until May 30. Landowners in 51 eligible watersheds across the country have two additional weeks to apply. Originally, signup was scheduled to end May 16.

CSP, a voluntary program, encourages and rewards producers who practice outstanding stewardship on working ag land by offering financial incentives that increase with the level of conservation effort. Soil and water quality are the primary focus of this program; however, program goals also include improved wildlife habitat, air quality, and environmentally responsible energy production.

NRCS began CSP in 2004. Currently, there are 331 enrolled watersheds covering nearly 248 million acres in CSP nationwide, including the 51 watersheds in this year’s sign-up. For more info about CSP and eligibility requirements, visit www.nrcs.usda.gov/news/
-- Texas AgrLife Extension news release



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      Bryce Schumann Named Angus CEO

Bryce Schumann, Lecompton, KS, is the new CEO of the American Angus Association (AAA), effective June 13. He has served as the AAA’s director of member services for the past seven years, and replaces John Crouch, who announced in February his intention to retire.

As CEO, Schumann will serve as chief administrative officer and vice chairman of the board of directors of each of the association’s subsidiaries: Angus Productions Inc., Certified Angus Beef LLC, Angus Genetics Inc. and the Angus Foundation. To learn more, visit www.angus.org/newsroom/releases/Schumann_Association_CEO.html.
-- AAA news release

      Ethanol Beneath Their Wings

Lovers may croon that the object of their affection is the “wind beneath their wings.” For farmers, it’s been ethanol.

According to the Kansas Farm Management Association (KFMA), the average net farm income for its members last year was $115,035, more than double the 2006 figure of $46,593 and $56,982 in 2005. Ten years ago, the average net farm income was $59,352, according to KFMA.

Livestock producers, hit with high grain and hay prices in addition to high fuel costs, didn’t fare quite as well. Operations classified as cash crop-backgrounding farms showed an average net farm income of $74,803. Cow-calf operations came in at $34,948.

In contrast, net farm income for dryland crop farms averaged $120,594; producers with irrigated crops averaged $280,585.

And it appears that grain prices will continue to be fueled by ethanol, according to the American Farm Bureau Federation. That’s good news for farmers battling high input costs, bad news for cattlemen battling the same high inputs plus high feed costs.

Commenting on USDA’s “World Agricultural Supply and Demand Estimates” report for May, Farm Bureau senior economist Terry Francl said, “With the exception of wheat, supply and demand balances particularly for corn and beans will remain tight and prices high. Moreover, despite the high crop prices of the past year or so, it is not clear that demand rationing has truly begun.”

Consequently, he says, it’s unclear just how high prices will go. “Perhaps $7/bu. for corn and $15/bu. for beans before the rationing process truly sets in. I sense we’re getting close to that point, but we aren’t there quite yet.”
-- Burt Rutherford

    Farm Bill Passes; Bush Veto Coming; Override Possible

In very strong bipartisan votes, the House of Representatives and the Senate passed the “Food, Conservation and Energy Act of 2008.” The House vote was 318-106 and the Senate vote was 81-15; a majority of both Democrats and Republicans supported the bill in both chambers. Some of the highlights of the $289-billion, five-year bill are:
-- Click on headline to read the rest of this story by P. Scott Shearer, Washington, D.C. correspondent



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      Gasoline And Diesel Surge To New Average Highs

The U.S. average retail price for regular gasoline jumped 10.9¢ for the week ending May 12 to an all-time high of $3.722/gal. Meanwhile, diesel registered its third-largest one-week increase – 18.2¢ – to set a new mark of $4.331/gal.

Gasoline increased for the seventh straight week, a time period that’s seen a total jump of 46.3¢/gal. Regional prices increased across the U.S., with the East Coast adding 10.3¢ to $3.713, the Midwest surging 15.7¢ to $3.736, and the Gulf Coast up by 10.9¢ to $3.616. The Rocky Mountain region increased 11.5¢ to $3.609, the West Coast moved up by 3.3¢ to $3.833, and California added 1.6¢ to reach $3.919.

Diesel’s new record is $1.558/gal. higher than a year ago. The East Coast increased by 18.3¢ to $4.377, the Midwest surged 19.7¢ to $4.298, the Gulf Coast added 18.4¢ to $4.268, and the Rocky Mountain region rose 12¢ to $4.276. The West Coast jumped 15.1¢ to hit $4.454, and California ballooned by 16.5¢ to $4.547.
-- Energy Information Administration

      Improve Your Marketing Skills With MarketMaxx

If you’re not yet playing MarketMaxx – the corn and soybean marketing game that can win you one year’s use of a new Gleaner combine or an AGCO tractor – then sign up at www.MarketMaxx.net.

The aim of MarketMaxx is to help improve your marketing skills. Signup deadline is May 31.

Each player has a simulated 100,000 bu. of corn and 50,000 bu. of soybeans to trade using futures, options or cash forward contracts. Each player has a password-secured individual account, and trades can be made at any time until the game ends on Oct. 31.

Eligible farmers who sell their entire allotment of corn or soybeans at the highest average price by when the contest ends will be grand-prize winners. Runners-up will also take home big prizes.

Grand prize for the corn contest is a Gleaner R5 or A5 series combine (up to 100 combine separator hours). The soybean winner receives a year's use (not to exceed 250 hours) of any PowerMaxx CVT-equipped AGCO RT or DT series tractor.

Second prize for each contest is a complete computer system plus software from Syngenta Crop Protection. Third prize in the corn contest is a complete Leica mojoRTK auto-steer system from Leica Geosystems. Third prize in the soybean contest and fourth prize in the corn contest is a DICKEY-john mini GAC Plus handheld moisture tester.

Participants receive the MarketMaxx e-newsletter for updates on the game. It features a contest leaderboard, market commentary from leading university and private grain-marketing specialists, and news. The newsletter arrives in your email box every other week throughout the year.

“MarketMaxx can show growers how to write a marketing plan, then allow them to use futures, options or forward contracts to make periodic sales when prices are high,” says Corn & Soybean Digest editor Greg Lamp. Best of all, there’s no cost to playing MarketMaxx, and no margin calls.

Go to www.marketmaxx.net for more info and to register.
-- Corn & Soybean Digest magazine

      Kansas Program Targets Animal-Borne Ailments

The Kansas Animal Health Department unveiled a program in Great Bend this week aimed at halting the spread of animal disease and identifying the source within 48 hours. The "Locate 48" campaign aims to increase the number of livestock premises registered through a national disease trace-back program. Just shy of 15% of such premises in Kansas are currently registered.

The need for animal trace-back came to a head in December 2003 after the first U.S. case of mad cow disease was discovered in Washington state. Bryan Rickard, Kansas Animal ID System manager, says the program is aimed at protecting Kansas' annual $12 billion livestock industry. The program includes sending brochures to all unregistered premises, a billboard and advertising.

As of May 5, a total of 461,846 livestock premises in the U.S., or 32.1%, have been registered. To learn more about the National Animal Identification System, visit: animalid.aphis.usda.gov/nais/naislibrary/documents/plans_reports/NAIS_Prem_Stat_Report.pdf
-- BEEF staff



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      Korean Lawmakers Threaten Lawsuit Over U.S. Beef

South Korean lawmakers opposed to the fuller reopening of beef trade with the U.S. are threatening a lawsuit to stop the plan. The JoongAng Daily reports three opposition parties – United Democratic, Liberty Forward and Democratic Labor – planned to file a constitutional suit this week to stop the government from implementing the terms of a Korea-U.S. agreement on imported beef.

“We want to protect the people from harm to their lives, health and safety. This cannot be done if the Minister of Agriculture legally implements the agreement,” the lawmakers said in a draft of the lawsuit. The lawmakers also want the government to go back to the bargaining table with the U.S. to hammer out key changes to the agreement before the beef imports are approved, among them is tougher feed regulations, the article says.

“Without a renegotiation on the beef deal, there is no point in discussing the ratification of the free-trade agreement," said Kim Hyo-seuk, the United Democratic Party floor leader.
-- Joe Roybal

      Legal Defense Fund Moves To Stop NAIS

Attorneys for the Farm-to-Consumer Legal Defense Fund today sent a Notice of Intent to Sue letter to USDA and the Michigan Department of Ag (MDA) over implementation of the National Animal Identification System (NAIS). It asks USDA and MDA to "immediately suspend the funding and implementation of NAIS," and "fully and fairly examine" the need for such a program.

MDA has implemented the first two stages of NAIS – property registration and animal ID – for all cattle and farmers across Michigan as part of a mandatory bovine tuberculosis disease control program.

The Notice (www.farmtoconsumer.org) charges USDA has never published rules regarding NAIS, in violation of the Federal Administrative Procedures Act; has never performed an environmental impact statement or an environmental assessment as required by the National Environmental Policy Act; is in violation of the Regulatory Flexibility Act that requires analysis of proposed rules for their impact on small entities and local governments; and violates religious freedoms guaranteed by the Religious Freedom Restoration Act.
-- Farm-to-Consumer Legal Defense Fund release

      Meat & Poultry Promotion Coalition Support Farm Bill

The Meat and Poultry Promotion Coalition sent a letter to the leadership of the Senate and House Ag Committees stating its support of the Livestock Title of the 2008 farm bill and urged House and Senate members to support the bill.

The letter said the coalition was pleased that the farm bill “does not include burdensome provisions, such as the ban on packer ownership and more regulation of poultry processors. We’re also pleased that the country of origin labeling (COOL) provisions provide producers, packers and retailers with greater clarity and reduce many of the burdensome requirements contained in the COOL provisions included in the 2002 farm bill.”

The letter was signed by the American Meat Institute, National Cattlemen’s Beef Association, National Chicken Council, National Meat Association, National Pork Producers Council and the National Turkey Federation.
-- P. Scott Shearer, Washington, D.C. correspondent

      More Than 500 Groups Support Farm Bill

A broad coalition of 557 organizations representing general farm organizations, commodity groups, specialty crops, conservation, nutrition, consumer and religious organizations sent a letter to all members of the House of Representatives asking them to strongly support the 2008 farm bill conference report.

The letter said, the farm bill makes “significant farm policy reforms, protects the safety net for all of America’s food producers, addresses important infrastructure needs for specialty crops, increases funding to feed our nation’s poor, and enhances support for important conservation initiatives.”

Some of the signing groups included: the American Farm Bureau Federation, National Farmers Union, America’s Second Harvest, American Farmland Trust, American Soybean Association, CropLife America, Farm Credit Council, National Association of Conservation Districts, National Association of Wheat Growers, National Corn Growers Association, National Cotton Council, National Grange, National Head Start Association, National Milk Producers Federation, U.S. Beet Sugar Association, and USA Rice Federation.
-- P. Scott Shearer, Washington, D.C. correspondent

      New Portal Web Site Introduced

www.RuralClassifieds.com is a new portal website that directs visitors to five internet sites serving America's farmers, ranchers, businesses and residents with free classified ads. A single log-in allowing users to place an ad on any of the sites, is easy to use and time efficient.

The websites include: www.BullShop.com, serving the cow-calf industry; www.GoatBreeders.biz, serving the goat industry; www.SheepBreeders.biz, serving the sheep industry; and www.RuralAds.com, serving the general rural market.
-- Web Biz, Inc. release

      Ranchers’ Roundup Set For May 20 In Sonora, TX

Ranching amid skyrocketing grain and fuel prices will be the focus of this year’s Ranchers' Roundup set for May 20 in Sonora’s Sutton County Civic Center. The program begins at 8:30 a.m., and topics include: feed and fuel price outlook, ranch management to minimize cost, brush control cost comparisons, current issues facing the livestock industry, livestock assistance programs and resources, and alternative income from rangeland. Registration, which covers a noon meal and educational materials, is $15 by May 16, and $25 thereafter. To pre-register or for more info, call Texas AgriLife Extension at 325-387-3101.
-- Joe Roybal

      Read About Cow Size In American Cowman Update

The latest issue of American Cowman Update is now available at www.americancowman.com. Published twice per month, the May 14 edition contains a look at beef production in the European Union and what it might portend for U.S. producers, new poetry by Steve Lucas, a discussion on cow size (americancowman.com/cowman_commentary/0513-cow-size-body-weight/), and much more. Sign up for the free, email newsletter at www.americancowman.com.. While you’re there, you can also read about University of Idaho Jason Ahola’s thoughts on the changes ahead for the U.S. beef industry – americancowman.com/business/0225-changes-beef-industry/; or Eric Mousel’s (South Dakota State University) advice on weed-control options for pastures – americancowman.com/pasture_and_range/0429-weed-control-pasture-options/.
-- Joe Roybal

      Rising Food Prices & Small Firms

The House of Representatives Small Business Committee held a hearing on rising food prices and their effects on the food chain. Witnesses noted that forces such as changing weather patterns, increased global demand for food items in the emerging markets, and record oil prices have created a “perfect storm” and that “no single variable could have caused the current situation on its own.” Witnesses included representatives of the National Farmers Union, National Restaurant Association, American Bakers Association, Grocery Manufacturers Association and the Renewable Fuels Association.
-- P. Scott Shearer, Washington, D.C. correspondent

      Spring Storms Can Bring Unexpected Problems

Cattle will eat just about anything that looks interesting in the pasture, says Dave Sparks, Oklahoma Cooperative Extension veterinarian and area food animal quality and health specialist. With spring storms popping up around the country, insulation and building debris can blow into pastures and be a problem.

Insulation can cause bloat, impaction and gastro-intestinal problems when consumed, including possible hemorrhaging of the rumen. Hardware disease from nails and other small pieces of metal is another concern.

“Producers are going to have to pick up as much debris from their pastures as possible,” Sparks says. “This can be a painstaking, labor-intensive process given the potential amount of small debris.”

Consider rumen magnets if there appears to be a lot of metal debris in your pastures after a storm, he says. “Insulation debris are more problematic because of the small size. Producers are unlikely to rid their pastures of every bit of insulation. If animals exhibit symptoms of insulation-related problems, producers should contact their local veterinarian immediately.”
-- Oklahoma State University release

    Studies Show Southeastern Cattle Do Measure Up

A long-held industry perception is that cattle from the South are worth less than their Midwestern counterparts. Not true, says Darrell Busby, Iowa Extension beef specialist.
-- Click on headline to read the rest of this story by Miranda Reiman, CAB release

    Take Steps to Limit Damage To Muddy Pastures

Not only has frequent rain slowed spring planting, but many pastures are getting muddy and damaged by hoof traffic, says Bruce Anderson, University of Nebraska (UNL) Extension forage specialist, in his latest “Hay & Forage Minutes.”
-- Click on headline to read the rest of this story by Bruce Anderson, UNL Extension forage specialist

      Vets Group Approves Horse-Transport Policy

The American Veterinary Medical Association (AVMA) recently approved a new policy on the humane transport of equines which reaffirms the organization’s opposition to double-deck trailers to transport horses and other equines.

The new policy also provides some guidelines on assessing trailers for equine transport. Considerations include: sufficient headroom so horses can stand with their heads at normal height; appropriate ventilation; no protrusions that can cause injury; doors and ramps big enough to provide safe loading and unloading; appropriate footing and enough space to redistribute weight should the trailer shift; and segregating stallions and other aggressive horses.

To see the complete policy, go to www.avma.org/issues/policy/animal_welfare/equine_transport.asp.
-- AVMA release



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