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Some words and terms simply don’t go together – words like
cerebral and all-star wrestler, heavy-muscled and Jersey cow, or thin
and show heifer. I’ve been following the market for quite some time
and two terms that simply don’t go together in that arena are $200 and
per-hundredweight; still, we've seen some three-weight calves bring
$2/lb. in the last couple of weeks.
I’ve always gotten a little nervous when people start talking about
new price ranges, and never seeing certain price levels again. Still,
it's mindboggling to think that it wasn’t that long ago when we were
talking about $100/cwt. five-weight steers and thinking that wasn’t
too bad of a price. Now we're thinking $1.50 is a range that’s a whole
lot more likely. That's a 50% increase in fairly short order!
While you can’t find a cow-calf guy complaining about recent price
levels being too high, those price increases have translated into higher
bred-female and bull markets as well. Already this year, we've seen that
producers can expect an extra $500 to $1,000 in bull costs, for example.
It's ironic that while I’ve been a sharp critic of ethanol subsidies
from both a philosophical and economic standpoint, today’s price
ranges probably wouldn't be possible without ethanol subsidies. The
higher grain prices brought to us courtesy of the subsidies fueled a
lack of profitability and fairly sharp liquidation in our industry,
which correspondingly brought higher prices. There may be fewer calves
and fewer cattlemen but the smaller industry appears to be positioned
for some pretty good times as we overshot the mark a little.
Just like writing "2011" on my upcoming checks, it will take me some
time to get used to these new price levels. But I have to admit that I
like the sound of $150/cwt. six-weights and $200/cwt. three-weights.
-- Troy Marshall
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• Pick up and pay for your Bull(s) when you’re ready for
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Call 641-369-2829 or visit www.nicholsfarms.biz where you
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1. Record cattle prices and higher prices on nearly every
class of cattle.
2. Lots of talk of expansion (will weather patterns and higher
prices for feeder heifers allow expansion to begin?)
3. Increased export demand – as market-access issues continue to
improve, the value of the U.S. dollar declines, and consumer confidence
grows.
4. Renewed pressure on obesity (thanks to Obama Care).
5. An improving economy and lingering questions about whether the
message of the last election registered with politicians. Or, will
increased regulation and out-of-control spending continue?
6. Animal welfare issues will continue to increase.
7. The final GIPSA rule will be issued, either resulting in
insignificant changes or a complete rejection of the value-based
marketing revolution and a return to commodity production rules.
8. Washington, D.C. will continue to expand its reach, while the
world views of those inside and outside the beltway continue to diverge.
9. Higher input costs with energy and feed-grain prices being key
drivers.
10. Higher prices will cause a shift away from value creation and
toward risk management.
-- Troy Marshall
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Many industry leaders can be heard commenting these days about how
nice it would be if the industry would focus on important issues and
quit wasting valuable political capital and time fighting among
themselves. Nobody can argue about the validity of this line of
thinking, but honestly I don’t see it happening.
-- Click on headline to read the rest of this
story by Troy Marshall
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Texas AgriLife Extension Service and Bexar Beef Cattle Committee
will present the free 2011 South Texas Beef Cattle Short Course at Palo
Alto Community College in San Antonio during three consecutive Thursday
evenings in January.
Designed to present a comprehensive overview on issues affecting the
production and management of beef cattle, course sessions will be from
6:30-8:30 p.m. on Jan. 13, 20 and 27. Registration is at 6 p.m. each
evening, with sessions beginning at 6:30 p.m.
Pre-registration, which is required, can be accomplished by contacting
Angel Torres at 210-467-6575 or matorres@ag.tamu.edu.
-- Texas AgriLife Extension Service release
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Does testing cut prevalence of bovine viral diarrhea virus (BVDV)?
It’s hard to say with any certainty, but data from the National Animal
Health Monitoring System (NAHMS) would indicate it doesn’t hurt.
NAHMS, a part of USDA’s Animal and Plant Health Inspection Service
(APHIS), periodically studies health issues related to various animal
species.
In its latest study on the cow-calf sector, researchers found a 10.7%
prevalence in operations that hadn’t tested for BVDV persistent
infection (PI) during the previous three years. On the other hand, no
BVDV PI positive operations were found when herds had been tested during
the previous three years.
“Although this doesn’t suggest testing performs perfectly in
eliminating BVDV PI, it is supportive of the effectiveness of BVDV
testing,” the report concludes.
The NAHMS study found that vaccination is the most commonly practiced
intervention against BVDV PI. However, very few operations engaged in
any biosecurity efforts to prevent BVDV from infecting their herds.
“Fewer than one of four operations (23.8%) gave a BVDV booster to
cows,” the report says. “Most operations don’t vaccinate breeding
females for BVDV, potentially leaving them more vulnerable to BVDV
exposure.”
In addition to vaccinations, management practices such as quarantine and
testing of cattle brought onto the operation are necessary to prevent
diseases from BVDV. “Most operations quarantined none of the new
cattle brought onto the operation during the previous 12 months, and
very few tested any calves for BVDV PI during the previous three
years,” the report says.
“Vaccinations can clearly provide protection against introducing BVDV
infection into the herd. However, with low levels of testing, no
quarantine of incoming cattle, and modest vaccination levels, it appears
many operations have no biosecurity and biocontainment plan for BVDV.”
For more info, go to www.aphis.usda.gov/animal_health/nahms/index.shtml
-- Burt Rutherford
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 There’s no mama like a Hereford-sired mama.
Net income of $51 more per cow per year and a 7% advantage in conception
rate compared to straight Angus females. Plus, Hereford is known for its
fertility and easy-going nature. Hereford bulls – better mamas and no
headaches.
Visit www.hereford.org for
more info.
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Private landowners – and especially family farmers and ranchers
– received an early Christmas gift as the beneficiaries of a renewed
federal tax incentive for conservation easements in effect through Dec.
31, 2011 and retroactive to Jan. 1, 2010.
The incentive, which expired at the end of 2009, has helped the Wyoming
Stock Growers Agricultural Land Trust work with Wyoming landowners to
conserve 148,000 acres of ag land and natural resources. The reinstated
incentive will cover any conservation easements donated in 2010 through
2011.
The renewal of tax incentives for conservation will aid in the
protection of millions of acres of the nation’s ag lands and open
spaces. These incentives allow modest-income landowners to receive
significant tax savings for donating conservation easements that
permanently protect important natural resources on their lands.
When landowners donate conservation easements to a land trust such as
the Stock Growers Ag Land Trust, they maintain ownership and management
of their land and can pass the land on to their heirs, while foregoing
their rights to develop the land. In doing so, the value of their
property is reduced, which can help families with estate planning or
enable ranch sales to other working ranchers.
The enhanced incentive, which applies to a landowner’s federal income
tax:
- Raises the deduction a donor can take for donating a voluntary
conservation agreement from 30% of their income in any year to 50%;
- Allows landowners who earn more than 50% of their income from
farming and ranching to use a conservation easement deduction against
100% of their income; and
- Increases the number of years over which a donor can claim a
deduction from six to 16 years.
-- Wyoming Stock Growers Agricultural Land Trust
release
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The U.S. Food and Drug Administration (FDA) is trying to get
pharmaceutical companies to voluntarily stop providing antibiotics to
promote livestock growth, reports the Des Moines Register. In a
recent meeting with consumer advocates, FDA revealed it’s negotiating
with one company to remove growth promotion as a labeled use for one
antibiotic, the article says.
The Obama administration earlier this year proposed to phase out the use
of antibiotics for growth promotion in livestock over concerns that such
usage leads to increased prevalence of drug-resistant bacteria that
threaten human health. FDA officials told the consumer advocates it
prefers a voluntary approach over the lengthy legal process of
restricting the drugs' use, says Steve Roach of Food Animals Concerns
Trust. The agency "seemed quite confident that some company was getting
close to doing something," he says.
FDA spokeswoman Siobhan DeLancey declined to comment on the discussions
with drug makers beyond saying that the agency "indicated we wanted to
work with companies, veterinarians and the industry to minimize use of
medically important antimicrobials."
Some doubt whether the agency has sufficient scientific basis to force
the companies to ban the growth-promotion uses, says Ron Phillips, vice
president of legislative and public affairs for the Animal Health
Institute, a trade group for the drug makers. But the FDA is still
"pursing this diligently. They would like to continue to see progress
made on this," Phillips says.
-- Des Moines Register
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Today, America's food producers are under attack. Extremists are
attempting to use emotional images and scare tactics to discourage
Americans from eating meat, milk and eggs because they do not believe
that we have that right, according to the Animal Ag Alliance (AAA).
-- Click on headline to read the rest of this
release by Animal Ag Alliance
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Technology, it seems, reaches into every aspect of our lives. Now,
it can even find you while you shop the aisles of your favorite grocery
store, according to Randall Stross, San Jose State University professor
of business.
What if manufacturers could make coupon offers on the spot, as you stood
in the aisle, within sight of the promoted product? Your cell phone
would identify your shopping predilections, allowing the manufacturer to
withhold the offer if you were likely to buy the product anyway. The
offer could go exclusively to those who just needed a little nudge,
Stross writes in the New York Times.
The possibility isn’t a distant one. Point Inside, a mobile technology
company in Bellevue, WA, has been testing still-incomplete technology
for determining where shoppers are standing in grocery stores and
big-box retailers. The goal is to determine accurate locations to within
one meter.
Current smartphone technology uses GPS and WiFi to find locations, but
they are generally accurate only to within 30 meters or so, says Joshua
L. Marti, Point Inside’s CEO. And GPS loses accuracy as it penetrates
walls. To build a system that will eventually solve this problem, Point
Inside is relying on other means, like a geotagged reference point
outside the store. It then uses AutoCAD software to create a detailed
interior map of the store, assigning latitude and longitude to every
aisle position.
The next technological challenge is geotagging the shoppers themselves.
Next year, Marti expects the arrival of smartphones capable of serving
as highly accurate, multidirectional pedometers. By knowing the exact
latitude and longitude of the store’s door, then using the phone to
track how many steps a shopper takes in which directions, the
shopper’s current location can always be known. The vision fulfilled:
Coupons sent to the phone for products within an arm’s reach.
-- New York Times
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The dire predictions made in 2007 when the last horse slaughter
plant in the U.S. was forced to close appear to have come true,
according to research at University of California-Davis School of
Veterinary Medicine.
-- Click on headline to read the rest of this
story by Burt Rutherford
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As the nation begins to emerge from recession, changes are on the
way for the restaurant industry in 2011, according to Technomic, a
leading foodservice research and consulting firm.
As federal menu labeling requirements take effect, Technomic says to
look for more items and detailed descriptions on “healthy” menus –
including gluten-free fare as well as more “under x calories” items.
Also expect to see more high-end restaurants and more ultra-niche
eateries with narrowly focused menus and high-concept ambiance.
Meanwhile, the middle class is expected to gravitate to reasonably
priced but high-experience-value, thrill-a-minute concepts with
memorable menus and consumers will continue to demand price deals
everywhere they eat.
Technomic predicts limited-time offers (including seasonal fare) will
trend up and “eating a little better” will translate into menu
modifications such as slightly-lower-sodium, slightly-more-glamorous sea
salt.
Regarding menu items, Technomic says the Korean taco signals the rise of
Korean barbecue and Korean food in general. Demand for comfort food is
expected, Technomic says.
For more information, go to www.technomic.com.
-- American Meat Institute
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Spurred by recent high-profile incidents of animal cruelty and
criticism from national animal advocacy groups, State Rep. Cory Mock of
Grand Forks and state prosecutors are drafting legislation that could
give North Dakota its first felony penalties for “egregious” animal
cruelty.
The North Dakota State’s Attorneys Association is drafting a bill
after consulting with the state stockmen’s association and other ranch
and farm organizations. Julie Ellingson, North Dakota Stockmen’s
Association (NDSA) executive vice president, says NDSA has been involved
in the state’s attorneys drafting of a bill along with other farm and
ranch groups and animal shelters.
“We’re pleased to have a chance to help shape that legislation with
other people who have the best interests of animals at heart,” she
says. “We want to make sure that any language drafted would find a
balance and … doesn’t unintentionally target animal agriculture.”
Mock says he’s working with legislative colleagues, NDSA, the North
Dakota Farmers Union and other groups to ensure all concerns are aired
out. “We don’t want to place the agriculture community in a
situation where they may be hurt – like a rancher arrested because his
border collie is nipping at the heels of his cattle,” he says.
Mock says he believes the legislature, which convenes next month in
Bismarck, will consider raising the penalty for “egregious” animal
cruelty from a Class A misdemeanor to a Class C felony.
Ellingson says NDSA will continue to monitor proposed legislation on
animal abuse and cruelty. “Farmers and ranchers take great pride in
how we take care of our animals. It’s how we make our living. But we
have a different view of animal rights than some of the anti-animal
agriculture activists. We don’t want to give them a loophole (to place
new restrictions on the handling of farm and ranch animals),” she
says.
-- Grand Forks, ND Herald
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USDA has been busy in the last weeks of 2010. Planning meetings have
been set for regulatory changes, proposals have been made for voluntary
restrictions of growth promoting antibiotics and newest to the list is
the new label requirements for meat and poultry.
-- Click on headline to read the rest of this
story by Jamie May
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It appears agriculture still has work to do in the new year. A
recent survey released by ZimmPoll shows that more than 73% of
respondents thought the consumer’s general perception of ag has grown
worse or remained the same in 2010.
This comes at a time when some might feel that ag is getting a break;
after all, groups like the Humane Society of the U.S. are under wider
scrutiny and some positive media continues to surface about the beef
industry. Yet, only 27% of respondents thought ag’s public perception
improved in 2010 and 30% argued it had deteriorated.
The survey seems to confirm that the latest trends in advocacy and
transparency need to continue to grow and that the quest for consumer
and public approval can only be strengthened. Hopefully it serves as a
reminder that as the new year approaches, we need to resolve to work
even harder to reduce those negative ratings and improve our
industry’s image in 2011.
See the results at agwired.com/2010/12/29/work-needs-to-be-done-on-consumer-perception-of-ag
-- Jamie May
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Before the spring calving season gets started, now’s a good time
to make the necessary preparations that will come in handy when the
first heifer needs help in the middle of the night. Here are some tips
from Glenn Selk, Oklahoma State University (OSU) Extension cattle
reproduction specialist, and Dave Sparks, DVM, area food animal quality
and health specialist.
- Equipment: Before calving season starts, do a walkthrough of
pens, chutes and calving stalls; make sure all are clean, dry, strong,
safe and functioning correctly. This is a lot easier to do on a sunny
afternoon than on a cold dark night when you need them.
- Protocol: Before calving season starts, develop a plan of what to
do, when to do it, who to call for help (along with phone numbers), and
how to know when you need help. Make sure all family members or helpers
are familiar with the plan. It may help to write it out and post copies
in convenient places.
Talk to the local veterinarian about the protocol and incorporate
his/her suggestions. Your veterinarian will be a lot more helpful when
you have an emergency during the kids’ school program if you have
talked a few times during regular hours.
- Lubrication: Purchase or locate lubricants to use on the
obstetrical sleeves. Many different lubricants have been used and one of
the best lubricants is probably the simplest – non-detergent soap and
warm water.
- Supplies: The stockman should always have the following in his
medicine chest: disposable obstetrical sleeves, non-irritant antiseptic,
lubricant, obstetrical chains (60 in. and/or two, 30-in. chains), two
obstetrical handles, mechanical calf pullers, and injectable
antibiotics. Don’t forget the simple things like a good flashlight
with extra batteries and some old towels or a roll of paper towels. It
may be helpful for you to have all these things and other items you may
want to include packed into a 5-gal. bucket to make up an obstetrical
kit so you can grab everything at once.
These and other ideas are covered in a new OSU Extension publication,
“Calving Time Management for Beef Cows and Heifers” (E-1006).
-- OSU “Cow-Calf Corner”
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South Dakota ranchers Reuben and Connee Quinn have relied on snow in
winter pastures for more than 30 years. They say cattle do well with
snow as their only water source if they know how to use it and have
adequate snow that’s not crusted and hard.
-- Click on headline to read the rest of this
story by Heather Smith Thomas
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South Korea has raised its foot-and-mouth disease (FMD) alert to the
highest level, culling and burying 480,000 pigs, sheep and cattle, and
vaccinating livestock to contain a fast-spreading outbreak of the
disease.
FMD has prompted authorities to shut down all livestock markets in the
country, leading to a rise in the wholesale price of beef and pork and a
possible rise in exports from the U.S., Australia and New Zealand.
“The disease is rapidly spreading in several regions simultaneously,
and we are concerned of a possible spreading to unaffected areas,” the
Ministry for Food, Agriculture, Forestry and Fisheries said in a
statement on Wednesday. The government raised the alert of “watch”
to “seriousness,” the highest level, and has set up a central
disaster center led by Agriculture Minister Yoo Jeong Bok.
-- Reuters
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Cash-cattle trade happened on Wednesday again this week in Texas and
Oklahoma. And for the second week in a row, the trend was up—sharply
up.
The Texas Cattle Feeders Association reports in its daily recap of
cattle prices that 17,612 cattle sold for $107 Wednesday, $3 higher than
last week and easily the high of the year. In fact, the only prices that
have been reported higher were a smaller number of cattle in the fall of
2003 at $110.
Meanwhile, fed cattle fetched $106 in Kansas on an estimated volume of
40,000 and fed cattle sold in Nebraska at $106 as well.
The price strength continued into the wholesale market, as boxed-beef
prices finished strong on Wednesday. Choice beef finished at $162.82, up
$1.55. Select beef was up $1.67 at $156.44. USDA reported weekly net
export sales of beef were 17,700 mt.
Market watchers say tight supplies of market-ready cattle and higher
beef prices encouraged the higher prices. Many of the sales yesterday
were with a two-week delivery clause. The normal delivery period is one
week.
For more, go to www.quinstarradio.net/CashCattlePricesTCFA12292010
-- Ron Hays, Radio Oklahoma Network and other
media reports
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Farmland prices continue to defy economic forces that are pulling
down other real estate values. A panel of Purdue University experts will
discuss what factors are behind the steady rise in farmland values
during a free webinar set for 1-2 p.m. EST on Jan. 10.
To register, visit the webinar home page at www.agecon.purdue.edu/commercialag/progevents/landvalueswebinar,
click on the "Register Now!" link in the "Registration Information" box
and complete the online registration form.
The panel includes ag economists Mike Boehlje, Craig Dobbins, Brent Gloy
and Chris Hurt; and Bruce Erickson, Purdue's director of cropping
systems management.
Webinar panelists won't attempt to predict future farmland values but
will discuss the forces driving prices higher and the events that could
keep moving them up or down. Among those forces are farm income,
interest rates, development potential and inflation, Boehlje says.
"Institutional and outside investors view farmland as a pretty good
portfolio asset," he says.
Boehlje, Dobbins, Gloy and Hurt outline farmland price drivers in their
paper, "Farmland Values: Current and Future Prospects." It can be
downloaded from the webinar home page, and webinar viewers are
encouraged to read the paper before the event.
Those unable to view the Jan. 10 program can listen to the webinar by
phone by contacting Aissa Good at 765-496-3884 or
aissa@purdue.edu.
-- Purdue University release
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The Federal Food, Drug and Cosmetic Act gives the Food and Drug
Administration (FDA) the legal authority to approve and regulate drugs
for animals. Before a drug company can market an animal drug, the
company must get the drug approved by FDA. To get FDA approval, the drug
company must prove that:
- The drug is safe and effective for a specific use in a specific
animal species. If the drug is for use in food-producing animals, the
drug company must also prove that food products made from treated
animals are safe for people to eat;
- The manufacturing process is adequate to preserve the drug’s
identity, strength, quality, and purity. The drug company must show that
the drug can be consistently produced from batch to batch; and
- The labeling is appropriate and truthful. The drug company must
make sure that the labeling contains all necessary information to use
the drug safely and effectively, including the risks associated with the
drug.
FDA’s role doesn’t stop after an animal drug is approved. As long as
the animal drug is marketed in the U.S., FDA continues to monitor:
- The drug’s safety and effectiveness;
- The drug’s manufacturing process to make sure quality and
consistency are maintained from batch to batch; and
- How the drug is marketed to make sure the advertisements are
truthful and not misleading.
However, FDA doesn’t regulate vaccines for animal diseases. Veterinary
biologics, including vaccines for animal diseases, are regulated by
USDA. For more on what the FDA does and doesn’t regulate, go to www.fda.gov/AnimalVeterinary/NewsEvents/FDAVeterinarianNewsletter
-- FDA
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“It’s pretty easy to be bullish on cattle prices as forecasts
call for still higher prices again next year. But it’s quite a bit
harder to be bullish on the overall industry's market structure when
it’s uncertain which operators will be around to enjoy those high
prices,” says Darrell Mark, University of Nebraska-Lincoln Extension
livestock marketing economist.
-- Click on headline to read the rest of this
story by Darrell Mark, LMIC’s In The Cattle Markets
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