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Here's an early Independence Day edition of CowCalf
Weekly.
-- BEEF Staff
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The U.S. has long been seen as a big part of the problem as it
relates to global warming. The U.S. failure to sign the Kyoto Protocol
agreement was viewed in some quarters as an example of the U.S. not
living up to its responsibility in combating global warming and
greenhouse gas emissions. The thinking was that the other developed
countries were taking the lead while the U.S. just sat on the sidelines.
-- Click on headline to read the rest of this
story by Troy Marshall
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Last week's Colorado Livestock Association Convention had an
impressive group of speakers who presented a tremendous amount of
information. They talked about the attacks on modern agriculture and
especially livestock production from the animal welfare and
environmental movements, the seismic shift in the regulatory
environment, the attack on the free-market system, the fragility of the
global economy, and policy decisions that should lead to increased
inflation, higher interest rates, reduced value of the dollar, higher
costs, higher taxes, etc.
I'm not disagreeing that the fuse may have already been lit, and in some
cases, might be pretty short. Nor am I saying that they’re wrong about
the political environment, or that the economists have reached the wrong
conclusions.
I certainly took heart, as well as copious notes, regarding their
suggestions on how to be prepared for this new environment. I'm just not
convinced that the road we’ve embarked on is as inevitable as is
assumed.
Even the proponents of these changes talk about fewer jobs, bigger
government, more taxes, reduced standards of living and harder choices.
But my generation was the one that had to move to two-family incomes to
improve on the lifestyle of the one-income families we grew up in. The
price was high in a lot of areas, but, as a whole, we weren’t willing
to accept that we were going to have less than our parents.
I do believe in balance. Perhaps a smaller home, or a smaller car to run
to town in isn’t all bad. Maybe we’ll all be happier working fewer
hours for fewer dollars. And perhaps walks in the park with the kids and
ice cream cones will supplant trips to Disneyworld.
I just don’t believe that is the type of solution and future that the
American people will buy into long-term.
-- Troy Marshall
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In our area, the wheat has never looked better, and every cloud has
farmers nervous knowing that a record crop is just a few weeks away –
barring hail or something else Mother Nature can devise.
This week, USDA announced record soybean acres, as well as corn acreage
that exceeded expectations. The old saw about “rain makes grain” has
a lot of truth to it, and the early indicators are that we could have
some real bin-busting grain harvests this year. Meanwhile, hay
production is shaping up to far exceed anything in the last several
years.
Of course, farmers will tell you that nothing counts until it is
actually harvested, and we still have a long way to go. But, feed
supply expectations and grass conditions are well ahead of projections,
and with reduced cow and swine numbers, supplies should be sufficient.
Admittedly, there isn’t a lot of reserve, and it’s been such an
extended period of time since feed buyers had any leverage that it may
take us a little longer than normal to see price adjustments, especially
on the hay side.
-- Troy Marshall
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I'm guilty. Statements like: “the U.S. has the safest, most
abundant and most wholesome food supply in the world” roll off of my
tongue without a second thought. And, most of the time, I’ll throw in
the little tidbit about how U.S. consumers spend less of their income on
food than anyone else, thus allowing U.S. agriculture to indirectly
subsidize every other industry in America.
Then you read a scientific report that ranks the U.S. as 7th out 17
industrialized countries for food safety and you’re forced to
momentarily pause. Maybe Russia, South Korea, Japan and Europe are more
correct in their assessments than we'd like to believe. Or maybe the
fact that we make more, and eat differently than other countries,
convolutes the whole food price, income level kind of number.
It’s always a matter of perspective. Relative to most of the other
industrialized countries, it’s probably safe to say that to Americans
in general, eating is more often than not a necessary evil rather than a
significant event in the course of a day. Perhaps a lower percentage of
our income being spent for food is more reflective of a low-margin
commodity mindset in agriculture than it is efficiency.
Don't get me wrong. I’d put American agriculture, efficiency, genetics
and adoption of technology up against just about anyone's. Still, it
would probably be productive to understand that some of the advantages
we claim are a little harder to justify empirically.
-- Troy Marshall
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Many Conservation Reserve Program (CRP) participants find themselves
facing some tough decisions after being notified their contracts will
not be renewed, according to Ted McCollum, Texas AgriLife Extension beef
cattle specialist.
-- Click on headline to read the rest of this
release by Texas AgriLife Extension
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The World Wildlife Federation (WWF) is suggesting to Europe that red
meat packaging carry labels advising people to consume no more than
three portions a week, and dairy products no more than three a day. This
comes on the heels of:
- A Meat Free Mondays campaign supported by celebrities like Paul
McCartney that was launched in the United Kingdom earlier this month.
- In the Belgian city of Ghent, officials are also encouraging
institutions and the general public to go meat-free one day a week.
- In Sweden, food and environment officials are seeking feedback on a
set of food guidelines that take environmental considerations into
account as well as health and nutrition.
But the latest WWF proposal would send a direct message to consumers at
time of purchase that the pack of meat they are buying represents “1
of 3 a week max.” It also calls for greater promotion of meat
substitutes like soy or rice; and suggests food manufacturers should
reduce the amount of meat used in composite foods like ready meals,
reports FoodNavigator.com.
Charlotte Lee-Wolf, one of the authors of the WWF report, told The
Grocer newspaper that at a population level the UK is eating 70%
more meat than it should, and 40% more dairy.
Philip Hambling of the British Meat Processors Association told
FoodNavigator.com: “Our view on this issue is that all food
production and consumption has a complex ‘footprint’ and that the
food industry, like every other responsible industry, needs to play its
part in lightening its footprint wherever possible.
“We should also bear in mind that food, including livestock and meat
production, has important environmental, social and economic benefits
too.”
He pointed at projects already underway to reduce the environmental
impact of meat production, including a product “roadmap” that is
being developed for the whole meat supply chain that will build on
developments in reducing energy and water consumption and waste
reduction and set medium- and long-term targets.
-- FoodNavigator.com
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The House of Representatives passed cap and trade legislation by a
narrow margin last Friday, 219 to 212, with more than 40 Democrats
voting with Republicans against the measure. Meanwhile, eight
Republicans crossed the aisle to vote for the 1,300-page bill, called
the American Clean Energy and Security Act of 2009, which now heads to
the Senate where another close vote is expected.
-- Click on headline to read the rest of this
article by Media reports
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Horses are an important part of many cattle operations, and just as
preventive measures are important for the cattle’s health, horses need
to be vaccinated too, says Larry Hollis, Kansas State University
Extension veterinarian.
“Rabies, tetanus, western and eastern equine encephalomyelitis and
West Nile virus are the four core vaccines recommended for all
horses,” he says.
The rabies vaccine is recommended because people commonly put their
hands in horses’ mouths when putting on a bit and headstall. The horse
owner could be exposed and not realize their horse had rabies if it
later dies and the brain isn’t tested for the disease, Hollis
says.
-- K-State release
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As of May 28, there were 161 premises in South Texas under
quarantine due to tick infestation, according to Bob Hillman, Texas
state vet and executive director of the Texas Animal Health Commission
(TAHC). That includes 65 premises in the permanent fever tick quarantine
zone that runs across eight counties along the Rio Grande from Del Rio
to Brownsville. Another 96 infested premises are in the free area or in
the temporary quarantine zones that were created to stop movement of
fever ticks further into the state.
From Oct. 1, 2008 (the beginning of the federal fiscal year) through May
28, 2009, there have been 121 newly infested premises detected. A newly
infested premise is detected at the rate of one every other day. With
four months left in the federal fiscal year, this year's number may
eclipse the 132 newly detected infested premises counted in 2008.
There is some good news, however, Hillman says. On April 16, more than
375,000 acres were released from temporary preventive fever tick
quarantine in Maverick, Dimmit and Webb counties. "We applaud the
efforts of cattle and wildlife producers who worked diligently with the
Tick Force to accomplish this effort," he noted.
For more on the fever tick issue, go to beefmagazine.com/health/long_thin_line/index.html
-- Texas Cattle Feeders Association Newsletter
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We buried my father-in-law in early May. Bob Young, a lifelong
rancher from Kimball, SD, took over the ranch from his father who
acquired it from the original homesteader. Through the years, Bob farmed
and raised livestock. Cattle were his first love and he operated
cow-calf and stocker enterprises until a few years ago.
-- Click on headline to read the rest of this
story by Joe Roybal
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It’s a conundrum that every confined feeding operation has to deal
with – what to do with stockpiled manure. USDA, under direction from
the Food, Conservation and Energy Act of 2008, has evaluated the role
that manure plays as a fertilizer and energy source.
About 5% of all U.S. cropland is currently fertilized with livestock
manure and corn acres account for more than half of the land to which
manure is applied. Expanded environmental regulations will likely lead
to wider use of manure as an organic fertilizer. While this will raise
production costs for livestock operations, especially those that must
haul the manure any distance, the overall impact on production costs,
commodity demand or farm structure will be limited.
While the report notes there is widespread interest in using manure as
an energy source, current use is very limited. That may change with
expanded government support, but the amount of manure used to produce
methane or electricity won’t be sufficient to compete with manure
supplies used as fertilizer because manure nutrients can be left behind
as residue in a more marketable form and manure-to-energy projects will
be most profitable in regions where manure is in excess supply.
Read the report at: www.ers.usda.gov/Publications/AP/AP037/.
-- USDA Economic Research Service
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The Master Cattleman Summit is set for Aug. 13-14 on the Oklahoma
State University (OSU) campus. “Hand-on” activities at the Animal
Science Building and at OSU’s Range Cow Research Center will focus on
forage production and availability, determining appropriate stocking
rates, forage management, risk management and minimizing input
costs.
Chip Ramsey, AgReserves, Inc., will be a featured speaker, discussing
keys to profitability on the extensive cow-calf operations he manages.
Todd Thrift, University of Florida beef specialist, will address simple
crossbreeding systems to maximize profitability of commercial beef cow
enterprises. A number of concurrent sessions are also planned.
Registration, which is $30/person, is limited to 180 registrants.
Register at orangehub.okstate.edu.
Additional info can be obtained by calling 405-744-6489.
-- Dave Lalman, OSU Beef Nutritionist
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The Samuel Roberts Noble Foundation's Ag Division will host a free
Stocker Cattle Seminar July 14, from 2-5:30 p.m., at the Kruse
Auditorium on the Noble Foundation’s Ardmore campus. Noble Foundation
consultants will highlight forage system options, stocker cattle
nutrition and health, and stocker breakevens and value of gain.
“This seminar has been designed to address the key issues that
ultimately affect profitability for producers,” says Deke Alkire,
Noble Foundation livestock consultant. Call Tracy Cumbie at 580-224-6411
for more info, or register online at www.noble.org/agevents.
-- Noble Foundation
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Pfizer Animal Genetics now offers a diagnostic test for the genetic
defect Osteopetrosis (OS), or Marble Bone Disease. Additionally, Pfizer
Animal Genetics has been approved by the Red Angus Association of
America (RAAA) as an OS testing lab.
The gene mutation responsible for OS has been identified and a
diagnostic test developed and validated in collaboration with Jon Beever
at the University of Illinois and the following organizations:
University of Nebraska-Lincoln, University of Wyoming, University of
Maryland, USDA Meat Animal Research Center, USDA Beltsville Agricultural
Research Center and RAAA.
A lethal genetic defect, OS influences Red Angus cattle. Affected calves
are most often stillborn 10-30 days premature, while those born alive
live less than 24 hours and have a short lower jaw and impacted molars.
The long bones on the affected calves are fragile and can be broken with
ease. The gene is inherited as a simple recessive.
Visit www.pfizeranimalgenetics.com
for more info, or call 1-877-BEEF DNA (1-877-233-3362). For a list of
list of OS-tested animals, go to: redangus.org/node/215.
-- Pfizer Animal Genetics release
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U.S. farmers planted a record-breaking soybean crop this spring,
according to USDA’s June 30 Planted Acreage report. Estimated soybean
acres are up 2% from last year, while corn acres are up 1%, and cotton
acres are down 4%.
Soybean planted area for 2009 is estimated at a record-high 77.5 million
acres. Area for harvest, at 76.5 million acres, is up 3% from 2008, and
will be the largest harvested area on record, if realized.
Compared with last year, planted acreage increased by 200,000 acres or
more in Kansas, Mississippi, Missouri, North Dakota and South Dakota.
The largest decrease is in Nebraska, down 400,000 acres from 2008, which
went into corn this year. Record-high planted acreage is estimated in
Kansas, New York, North Dakota and Pennsylvania.
Corn planted area is estimated at 87 million acres, up 1% from last year
but 7% below 2007. This is the second-largest planted acreage since
1946, behind 2007.
On May 10, corn planting was 48% complete, down 23 points from the
five-year average. By late May, however, drier conditions allowed
farmers to report 97% of the intended corn acreage as planted compared
with the 10-year average of 98%.
Meanwhile, all wheat planted area is estimated at 59.8 million acres,
down 5% from 2008. The 2009 winter wheat planted area, at 43.4 million
acres, is 6% below last year but up 1% from the previous estimate. Of
this total, about 31.4 million acres are hard red winter, 8.4 million
acres are soft red winter, and 3.6 million acres are white winter. Area
planted to other spring wheat for 2009 is estimated at 13.8 million
acres, down 3% from 2008. Of this total, about 13.1 million acres are
hard red spring wheat. Durum planted area for 2009 is estimated at 2.56
million acres, down 6% from the previous year.
-- Elton Robinson, Farm Press
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Reversing the trend of the previous eight weeks, the U.S. average
price for regular gasoline fell 5¢ to $2.64/gal. (week ending June 29),
or $1.45 below last year. Meanwhile, diesel was down for the first time
since May 4, shedding 1¢ to $2.61/gal., $2.04 below the price a year
ago.
The largest drop for gasoline occurred in the Midwest – 9¢ to $2.57.
The East Coast was at $2.63, the Gulf Coast $2.52, the Rocky Mountains
$2.60, and the West Coast $2.91. California fell 2¢ to $2.98.
Meanwhile, diesel was down in all regions but the Rocky Mountains, which
gained 2¢ to $2.63/gal. Otherwise, the East Coast and Midwest were at
$2.63 and $2.58, respectively; the Rocky Mountains at $2.63, and the
Gulf Coast at $2.57. The West Coast shed 1¢ to $2.71, and California
stayed even at $2.79.
-- U.S. Energy Information Administration
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USDA shocked the commodity markets with the release on Tuesday
morning of its Acreage and Quarterly Stocks reports. Corn acres came in
at just over 87 million acres, a 2-million-acre jump from March 31
expectations. With the trade anticipating a 1-million-acre decline from
the March report, 3 million more acres than expected was bearish for the
corn market, says Dillon Feuz, Utah State University economist.
Upon morning release, trading at midday plunged many of the corn
contracts down the limit of 30¢/bu., Feuz writes for the Livestock
Marketing Information Center’s June 30 In The Cattle Markets.
Quarterly stocks of corn were also higher than expected, coming in at
4.266 billion bu., on an expectation of just under 4.2 billion bu.
Meanwhile, this year's planted acres are 1 million more than last year;
with over 70% of the crop rated Good to Excellent, it will likely be the
second-largest corn crop ever.
“While the report will not be good for corn prices, it should
strengthen the cattle markets,” Feuz says. “Feedlots may actually be
able to buy corn this year at a price that will allow for some
profitability in cattle feeding.”
Feuz says early video sales for fall-delivered calves and yearlings have
been lackluster so far this year, and this report may also add a little
enthusiasm to the feeder market. But he expects feedlots to remain
cautious after losses the last three years with early summer forward
contracts being much higher than fall calf prices.
-- Dillon Feuz, Livestock Marketing Information
Center
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Paraguay hosted a global conference to eradicate foot and mouth
disease (FMD) worldwide. Representatives from more than 100 countries
were on hand to hear that the World Bank and the European Union will
provide funds to help eradicate the disease in poor countries.
Bernard Vallat, director general of the World Health Organization, said
the meeting signified the first time that "a conference has been
organized to tackle the problem and ensure a global commitment to
control FMD worldwide."
During the three-day conference, the current situation of FMD in the
world was assessed with specific reference to international, regional
and national FMD-control efforts. The updated control methods of the
disease, status of research on FMD, the application of disease
surveillance methodologies; the application of and development of
vaccines and the use, constraints and availability of diagnostic methods
in susceptible species will all be assessed and evaluated against future
needs and constraints.
Meanwhile, the U.N. Food and Agriculture Organization (FAO) estimates
Venezuela will be a country free of FMD in 2012, reports Francisco
Arias, the Venezuelan representative in the agency.
Arias says the Ministry of Agriculture and Lands has signed an agreement
with FAO to make formal the entry of Venezuela to the Project for
Strengthening Policies and Strategies to prevent, control and eradicate
the foot and mouth disease, which includes Peru, Bolivia, Ecuador and
Colombia.
"The project is aimed at strengthening the policies and strategies to
prevent, control and eradicate foot and mouth disease. It is
implemented, together with other Andean countries, to create a security
belt in the region, i.e., to build capacity to avert FMD outbreaks and
establish FMD-free areas," he says.
-- El Universal
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