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BEEF STOCKER TRENDS

From the editors of BEEF Magazine
In the September 8, 2009 Issue
 
  The Need For National ID Grows Despite Fuzzy Direction
  2009 BEEF Quality Summit Postponed
  Livestock Indemnity Filing Deadline Is Sept. 13
  Wheat Potential Is The Best In Years
  Managing Silage
  10th Annual KSU Beef Stocker Field Day
  Send Questions & Comments To...

News

The Need For National ID Grows Despite Fuzzy Direction
The nation’s current livestock traceability system is busted to the point that George Teagarden says, “A highly contagious animal disease will devastate this country.”

That’s not alarmist rhetoric. Teagarden is one of the most practical, down-to-earth cattle producers you’d ever hope to meet. He also happens to be the state veterinarian in Kansas, a state that receives cattle from all 48 of the Continental U.S. states at least once every month. He was addressing participants at the recent ID Info Expo hosted by the National Institute for Animal Agriculture (NIAA).

Teagarden offered several examples of how the current traceability system – reliant upon successful state and federal disease eradication programs like brucellosis and tuberculosis – has made tracing cattle more costly in both time and money. Typically, animal health officials can find the animals in question, but it can be months after the fact.

Read the full article >

2009 BEEF Quality Summit Postponed
Due to current economic conditions, BEEF staff have reluctantly have decided to postpone the 2009 BEEF Quality Summit set for Nov. 10-11 in St. Joseph, MO. We thank you for your support of the BEEF Quality Summit over its successful three-year history, and also for your continued support of BEEF magazine.

With surveys indicating that 95% of past participants considered the BEEF Quality Summit content valuable and attendance worthwhile, BEEF staff is exploring alternative ways of delivering the BEEF Quality Summit content to our audience. So stay tuned!
--Joe Roybal

Stocker News

Livestock Indemnity Filing Deadline Is Sept. 13
If you’re going to file a claim under the Livestock Indemnity Program (LIP) for losses incurred from Jan. 1, 2008, through July 12, 2009, you have until Sept. 13.

LIP compensates livestock owners and contract growers for livestock death losses in excess of normal mortality due to adverse weather, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat and extreme cold.

“Producers need to file a notice of loss and complete the application for payment at the local county office of the Farm Service Agency (FSA)," says Dwight Aakre, North Dakota State University Extension Service farm management specialist. "A notice of loss can be reported by the producer to the local FSA office by phone, fax, email or in person."

Read the full article >

Wheat Potential Is The Best In Years
Thanks to lower wheat prices and plentiful moisture, some calf prices are getting an early boost from wheat-pasture prospects.

“The contrast in market indications and producer expectations for winter wheat grazing in the Southern Plains could not be more dramatic than 2009 compared to last year,” says Derrell Peel, Oklahoma State University Extension livestock marketing specialist.

Peel says wheat prices last year – as well as expensive seed and fertilizer – –kept some wheat producers from making wheat pasture available. Research in Oklahoma indicates wheat grazing decreases subsequent wheat production 5-6 bu./acre on average. Plus, planting early for wheat pasture increases the risk of crop failure.

Read the full article >

Stocker Management

Managing Silage
“Even after silage has been chopped and piled and packed correctly, it still can be damaged seriously by air and moisture slowly penetrating the outer 3-4 feet. In fact, good silage can lose 15-20% of its feed value from fermentation and spoilage under normal conditions,” says Bruce Anderson, University of Nebraska Extension forage specialist. “This loss can be cut in half, or even less, if covered well by a sheet of plastic.”

Before you say, “No kiddin’, we already do that,” read on.

Anderson recommends covering freshly chopped silage with black plastic immediately after filling the trench, bunker or pile. “Then cover the plastic with something to help hold it down,” he says.

Read the full article >

Event Spotlight

10th Annual KSU Beef Stocker Field Day
Sept. 24 – 9:30 a.m.
KSU Beef Stocker Unit, Manhattan, KS
Hosted by Kansas State University
  • Buying and selling right – Kevin Dhuyvetter, KSU.
  • Partnering with feedlots: Who brings what to the table – panel featuring Jerry Bohn (Pratt Feeders), Dan Dorn (Decatur County Feed Yard) and Jim Reeves (JMR Cattle Co.).
  • Thinking outside the shots, Dan Thompson, DVM, KSU.
  • Negotiating custom grazing arrangements – panel featuring Mike Collinge (Hamilton, KS), Tim Miser (Cottonwood Falls, KS) and Alan Hess (Alma, KS).
  • Cattle financing in a tight credit market – Gary Cotterill, Community National Bank, Chanute, KS.
  • Producing value-added cattle – Brian Bertelson, U.S. Premium Beef
  • Weed and woody plant control for pastures – Walt Fick, KSU.
  • Utilization of byproducts on pasture – Lyle Lomas, Kansas State University.
For more info, contact Lois Schreiner at 785-532-1267 or lschrein@ksu.edu

Calendar Of Events

Sept. 14-16 – South Dakota Grazing School, Al’s Oasis and the Lower Brule Trust Land, Oacoma; 605-688-6623, 605-280-0127 or www.sdgrass.org.

Sept. 22-23 – Georgia Grazing School, Livestock Instructional Arena, Athens, GA; www.caes.uga.edu/.

Sept. 22-23 – Tri-State Cow-Calf Conference, fairgrounds, Gray, TN; pubs.ext.vt.edu/.

Sept. 24 – KSU Beef Stocker Field Day, Beef Stocker Unit, Manhattan, KS; 785-532-1267 or www.asi.ksu.edu/.

Sept. 25-27 – Tri-State Meat Goat Conference, Shepperd Arena, Fargo, ND; 701-231-7522 or to www.ndsu.edu/sheepandgoat/.

Sept. 29-Oct. 1 – University of Missouri Grazing School, MU Forage Systems Research Center, Linn County; aes.missouri.edu/fsrc/news/fsrc5.stm.

Oct. 23-24 – Mid-Atlantic Grass Finished Livestock Conference, Holiday Inn Conference Center, Staunton, VA; 434-292-5331.

Oct. 29-30 – HOLT CAT Symposium on Excellence in Ranch Management, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

Dec. 1-3 – Range Beef Cow Symposium, Casper Events Center, Casper, WY; 307-837-2000.

Dec. 4-5 – National Beef Cattle Evaluation Consortium Symposium on Reproduction and Stayability, Denver Airport Marriott, Denver, CO; 607-255-4416 or www.nbcec.org/nbcec/.

Dec. 14-16 – Lectureship on Managerial Accounting for Ranchers, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

Contact

Send Questions & Comments To...

Wes Ishmael, Contributing Editor, BEEF Stocker Trends, at wesleysink@aol.com

Joe Roybal, Editor, BEEF magazine, at jroybal@beef-mag.com


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MARKETS

Demand – Competition Limit Prices

With corn prices declining ahead of what much of the market anticipates to be near-record production, and Wall Street stocks suggesting the overall economy is on the cusp of recovery, you’d think beef prices might enjoy some strength.

Nope.

The fed-cattle market lost steam last week, with Nebraska trading in the beef $2-$3 lower than the previous week at $129-$130; mostly $84 live. The best feedlots could muster after that in other regions was sideways trade with the previous week: $85 in the Southern Plains; $81-$82 in Iowa/Minnesota (129-$130 dressed); and $84.50 in Colorado through early Friday ($130 dressed).

“Cattle feeders find themselves in an environment at this time which should be positive, but shaky consumer demand and increased competition from pork and chicken are continuing to pressure the beef market,” analysts with the Agricultural Marketing Service (AMS) explained Friday. “With average daily livestock slaughter running around 128,000 head of cattle and over 420,000 head of hogs each day, that’s putting a lot of meat on the market with demand on the lackluster side.”

With no help from futures, and volume of the fall run picking up, heifer and steer calves sold steady to $3 lower; $2-$5 lower in the Southeast. Yearling prices were reported unevenly steady at auction and steady to $2 lower in direct trade for the week.

The summary below reflects the week ended Sept. 4 for Medium and Large 1 – 500- to 550-lb., 600- to 650-lb. (calves), and 700- to 750-lb. feeder heifers and steers (unless otherwise noted). The list is arranged in descending order by auction volume and represents sales reported in the weekly USDA National Feeder and Stocker Cattle Summary:

Click here for market prices >

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OUTLOOK

Farm Incomes Expected To Decline

No one with seed in the shed or vaccine in the ice box will be surprised to know that higher costs and lower prices mean folks are making less money in agriculture this year.

In round numbers, USDA’s Economic Research Service (ERS) estimates net farm income for 2009 at $54 billion, a whopping 38% below the preliminary estimate for net income last year. That’s also $9 billion less than the average $63.2 billion annual net income over the past decade.

Closer to home, ERS analysts say, “In 2009, average family farm household income is forecast to be $75,895, down 5.2% from 2008, and 8% below the five-year average for 2004-08. In 2009, the average family farm is forecast to receive 7.6% of its household income from farm sources, with the rest from earned and unearned off-farm income.”

For the week ending Aug. 30, according to the National Agricultural Statistics Service:

Corn – 5% is at or beyond the dough stage, 6% behind last year, and 13% slower than average. Development to the dough stage was active across much of the growing region where cooler temperatures and readily available soil moisture continued to provide nearly ideal conditions. 32% of acreage reached the dent stage, 10% behind last year and 28% behind normal. Progress to the dent stage was behind normal in all estimating states except Colorado and North Carolina. Lags of 33 points or more were evident in the Dakotas, Illinois, Indiana and Minnesota. 5% of the acreage has reached maturity, 1% behind last year and 8% behind the five-year average. The crop was most mature in North Carolina and Texas. 69% is reported Good to Excellent, 8% more than a year ago.

Soybeans – Pod setting reached 93%, which is on par with last year, but 3% behind average. Pod development remained active across the major soybean-producing regions of the country despite below average temperatures. Leaf drop had occurred on 3% of the nation’s acreage, 1% behind last year and 5% behind average. Leaf drop was most advanced on acreage in the Delta; however, progress in Mississippi was 34 points behind normal. 69% is rated as Good to Excellent, which is 8% more than at the same time last year.

Click here for more >

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NATIONAL STOCKER AWARD



Information on the 2009 award
Meet the past winners
Report on the first-ever National Stocker Survey
Download the 2009 National Stocker Award Nomination Form
Visit BeefStockerUSA.org

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