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BEEF'S COW CALF WEEKLY    October 19, 2007  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Cow Numbers, Beef Demand Or Washington D.C.?
> Time To Narrow Your Customer List?
> Al Gore Nobel Peace Prize Winner!
> 14 Tips For Preventing Livestock & Equipment Thefts
> 25 By '25
> Ag Groups Ask Congress To Not Increase RFS
> Angus Numbers Set Records
> Are You Collecting Information Or Just Data?
> Beef Exports Show Increase
> EPA To Establish Ag Advisory Committee
> First Lawsuits Filed Against Shuttered Ground Beef Firm
> Former Ag Secretaries Support Peru Trade
> Grass Fed Marketing Claim
> How To Properly Clean A Syringe Gun
> Japan Says Whoa To Beef
> More House Members Decide To Retire
> No Progress On Beef With Korea
> Oklahoma Rains Bring Losses
> Plan To Be In Omaha Nov. 7-8 For BEEF Quality Summit
> Redesigned Web Site Offers More Forage-Related Info
> Senate Ag To Markup Farm Bill Next Week
> Tax Deduction Deadline Approaches
> U.S. Corn Forecast Up Slightly From September

    Our Perspective
    Cow Numbers, Beef Demand Or Washington D.C.?

In the past, if you asked me which factor is the most important in determining profitability in the cow/calf sector, I would have said supply and demand. If asked the question today, I would probably answer it the same way, but with hesitation. I certainly wouldn't call it a positive development, but the role of government is becoming increasingly important.

-- Click on headline to read the rest of this story by Troy Marshall



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      Time To Narrow Your Customer List?

Have you ever dreamed of having 20 order buyers lined up at the ranch gate to buy your calves, each wanting to pay you a hefty premium for superior genetics and management? You're not alone. Naturally, it seems everyone wants lots of potential customers to recognize the value in the product they are producing.

I do a lot of consulting on advertising and marketing for seedstock producers. Without question, the hardest concepts to internalize is this: We can't be all things to all people. And that profits are most closely linked to providing a truly exceptional and well-defined product to a subset of customers that recognize the value of what you are producing and capitalize on it.

Those who consistently top the market tend to sell calves to a very select group of buyers -- Ones they have built a relationship with, demonstrated value to, and mutually benefit. They do not achieve market-topping prices by exposing their product to the most potential buyers, but instead build a close relationship with the most important/beneficial buyers.

Perhaps it means adjusting our mindset a little. The odds are, if 30 order buyers are waiting around the load-out chute, they are going to be largely indifferent with an "I can take-them-or-leave-them" attitude. The ideal picture may be just one or two buyers who have been virtually committed to purchasing those calves since they hit the ground.
-- Troy Marshall

    Al Gore Nobel Peace Prize Winner!

If you ever needed proof of the public relations campaign being waged over global warming and the environment, all you have to do is look at the recent list of awards garnered by Al Gore.

-- Click on headline to read the rest of this story by Troy Marshall



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      14 Tips For Preventing Livestock & Equipment Thefts

Here is a list of 14 tactics provided by the Texas and Southwestern Cattle Raisers Association (TSCRA) to prevent theft on your property:
  1. Display TSCRA member sign (or the member sign from your state cattlemen's association) on gates and entrances. It's an excellent deterrent.
  2. Lock gates.
  3. Brand cattle and horses -- make sure the brand is recorded.
  4. Put your driver's license number on all saddles, tack and equipment.
  5. Video horses and tack. Keep complete and accurate descriptions on file. Establish an organized, easy-to-find, proof of ownership file to save valuable time in the recovery process.
  6. Count cattle regularly.
  7. Don't establish a routine when feeding. Vary the time when you feed.
  8. Be cautious of who you give keys and combinations to.
  9. If possible, park trailers and equipment out of view from the road.
  10. Keep tack rooms and saddle compartments on trailers locked.
  11. Don't feed in pens.
  12. Participate in neighborhood Crime Watch programs.
  13. Don't build pens too close to the roadway.
  14. Never leave keys in tractors or other equipment.
-- Burt Rutherford



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      25 By '25

The House of Representatives passed a resolution expressing the sense of Congress that by the year 2025 at least 25% of the total energy consumed in the United States should come from homegrown renewable sources. Today, renewable energy sources provide approximately 6% of total U.S. energy needs. The resolution was introduced by Congressmen Collin Peterson (D-MN), chairman of the House Agriculture Committee, and Bob Goodlatte (R-VA), ranking member of the House Agriculture Committee.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Ag Groups Ask Congress To Not Increase RFS

A coalition of meat and poultry groups have written Congressional leaders urging them to oppose any increase in the Renewable Fuel Standard (RFS) for grain-based ethanol in the energy bill. The coalition reminded the leadership that an expansion in the RFS as contained in the Senate-passed energy bill would result in higher production costs, impair international competitiveness, and risk driving some production off-shore.

The letter stated, "We strongly support efforts to encourage the commercialization of ethanol from cellulosic biomass and similar sources. Nevertheless, we note that by all accounts, this commercialization is still some years away. If Congress chooses to increase the RFS for cellulosic ethanol, the law should be clear that this portion of the mandate is to be met only with non-grains based fuels."

Those signing the letter were American Meat Institute, National Cattlemen's Beef Association, National Chicken Council, National Meat Association, National Turkey Federation, United Egg Association, and United Egg Producers.
-- P. Scott Shearer, Washington, D.C. correspondent

      Angus Numbers Set Records

Angus registrations totaled 347,755 in fiscal 2007, up from the previous year, according to the American Angus Association. Transfers, which represent sales of cattle to new owners, remained steady compared with previous years, with nearly 205,000 processed.

AngusSource®, a USDA Process Verified Program (PVP) that documents age, source and genetics, enrolled more than 90,000 head. And a record-high 13.5 million cattle were identified for the Certified Angus Beef® (CAB) program, which sold more than 583 million lbs. of CAB brand products this year, the highest figure since 2003.
-- American Angus Association release



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    Are You Collecting Information Or Just Data?

One of the first questions Harlan Hughes asks producers is: Are you collecting data or information? Hughes is a farm business management guru and monthly "Market Advisor" columnist for BEEF.

"Data are just raw numbers collected in some fashion. Information, on the other hand, is data that is used to make management decisions," he says.

-- Click on headline to read the rest of this story by Alaina Burt

      Beef Exports Show Increase

Exports of U.S. beef showed an increase in both value and volume through August, according to the U.S. Meat Export Federation (USMEF).

The value of U.S. beef exports increased 28% to $1.67 million, compared with the same period last year. U.S. beef and variety meat exports were up 16% in volume to 495,829 metric tons (mt) or 1.09 billion lbs.

According to USMEF, notable gains were made in Central and South America as export volume increased 68% to 5,986 mt or 13.2 million lbs. and value increased 64% to $10.9 million. This growth was driven by liver exports to Peru and frozen beef exports to Guatemala.

Larger markets such as Canada also showed gains with a 31% increase in volume to 81,380 mt or 179.4 million lbs. and a 34% jump in value to $372.1 million. Mexico remained the No. 1 market for U.S. beef and beef variety meat exports with a volume of 235,471 mt or 519 million lbs., valued at $781.5 million.

USMEF expects beef prices to remain strong domestically through the rest of the year due to relatively tight cattle supplies. However, U.S. beef will remain a good value internationally due to weakness in the U.S. dollar. For more, go to usmef.org/TradeLibrary/Statistics.asp.
-- USMEF release

      EPA To Establish Ag Advisory Committee

EPA announced the establishment of a Farm, Ranch and Rural Communities Federal Advisory Committee to advise the EPA administrator on environmental policy issues affecting farms, ranches, and rural communities. The committee's membership will include large and small farmers, ranchers, and rural communities; rural suppliers, marketers and processors; academics and researchers who study environmental issues impacting ag; tribal ag groups; and environmental and conservation groups. In the beginning, EPA will ask the committee to focus on three issues:
  • "How EPA's policies and regulations on climate change and renewable energy will affect the ag community. The ag industry -- through the development of renewable energy sources -- can play a significant role in the nation's ability to reduce its dependence on oil imports, as well as be a source and repository of greenhouse gas emissions.
  • An environmental strategy for livestock operations that considers regulatory and voluntary approaches and provides tools for producers to attain superior environmental performance.
  • Development of a constructive approach to advancing sustainable ag and protection of the environment, addressing communication between environmental and ag interests and urban encroachment in rural areas."
-- P. Scott Shearer, Washington, D.C. correspondent

      First Lawsuits Filed Against Shuttered Ground Beef Firm

A lawsuit was filed Oct. 1 against Topps Meat Co., the largest U.S. manufacturer of frozen ground beef until a 21.7-million-lb. recall due to potential contamination with E.coli O157:H7 forced it to close its doors recently. The lawsuit was filed on behalf of Albany County, NY residents Robert and Catherine McDonald and their young daughter, who became ill with an E. coli O157:H7 infection and was hospitalized after eating a burger made of Topps Meats ground beef on Aug. 17. The McDonald family is represented by the Seattle law firm, Marler Clark, and the upstate New York law firm Underberg & Kessler.

William Marler, attorney for the McDonald family, stated that "aside from sporadic cases, outbreaks traced back to meat products have been largely absent in the last five years. 2007 has been an anomaly in the meat industry, but now that outbreaks are happening, the industry needs to once again step up to the plate and compensate consumers for their injuries," according to a report from the Associated Press.

Another lawsuit was filed in the U.S District Court in New York, seeking compensation from Topps and a number of stores that stock its frozen meat, including Wal-Mart, ShopRite and Pathmark. The suit names four plaintiffs, according to Robert K. Jenner, a Baltimore lawyer.
-- National Meat Association "Lean Trimmings" newsletter

      Former Ag Secretaries Support Peru Trade

Four former Secretaries of Agriculture have written Congress in support of the Peru Trade Promotion Agreement stating the agreement "will achieve a more balanced bilateral relationship in the agricultural sector." The former Secretaries -- Bob Bergland, John Block, Dan Glickman, and Clayton Yeutter -- also reminded Congress of the gains ag has made because of previous trade agreements. "Our food and agricultural exports have grown to all-time records, due, almost entirely, to prior trade agreements. Indeed, it is difficult to name an agricultural product our farmers sell in the world market that has not benefited from earlier trade agreements. The U.S. cannot stand by complacently, however, while our competitors are negotiating preferential trade deals around the globe, or we will soon see an erosion of our hard-won access to key markets."
-- P. Scott Shearer, Washington, D.C. correspondent

      Grass Fed Marketing Claim

USDA's Agriculture Marketing Service (AMS) finalized a voluntary standard for a grass fed livestock marketing claim. The grass fed standard will be for a ruminant animal that grass and/or forage was the feed source consumed for the lifetime of the ruminant animal, with the exception of milk consumed prior to weaning. The diet is to be solely from forage and animals cannot be fed grain or grain by-products. The standard will go into effect on November 15.

To view the complete report, visit www.ams.usda.gov/lsg/stand/grassclaim.htm
-- P. Scott Shearer, Washington, D.C. correspondent

    How To Properly Clean A Syringe Gun

An article in the September BEEF titled "Are You Vaccinating Calves... Or Shooting Blanks" raised a few questions and a few eyebrows. Some readers were offended that their vaccine protocols should be called into question, while others appreciated the advice. However, one reader raised a question that wasn't addressed in the article -- how to properly clean a syringe gun.

-- Click on headline to read the rest of this story by Burt Rutherford

      Japan Says Whoa To Beef

On Wednesday, Japan suspended beef imports from the Cargill plant in Dodge City, KS. A recent 9-ton shipment from the plant had 225 boxes containing tendons not properly identified on paperwork issued by USDA. Tendons are not specified risk materials for BSE the Associated Press reports, and Cargill acknowledged that boxes may have been erroneously sent to Japan. Japan's Agriculture Ministry issued a statement banning shipments from the Dodge City plant until they receive a detailed report on the mix-up.
-- Alaina Burt

      More House Members Decide To Retire

This week, the 14th member of the House of Representatives announced he would not run for re-election next year. So far there are 12 Republicans and two Democrats that have announced they are either retiring or plan to run for the U.S. Senate. There are expected to be additional announcements this year. Only one member of the House Agriculture Committee, Congressman Terry Everett (R-AL), has announced retirement. There have been five Republican Senators who have announced they will not be running for re-election.
-- P. Scott Shearer, Washington, D.C. correspondent

      No Progress On Beef With Korea

No progress was made on reopening Korea's market for U.S. beef after two days of meetings between Korea, USDA, and U.S. trade representatives. The U.S. continues to press Korea to follow OIE standards by reopening its market for all beef products from all ages of cattle.
-- P. Scott Shearer, Washington, D.C. correspondent

      Oklahoma Rains Bring Losses

The torrential rains that ravaged Oklahoma this spring, summer and early fall generated an estimated $30 million in damages to conservation practices throughout Oklahoma, according to early numbers compiled by conservation districts and the Oklahoma Conservation Commission.

"The system that we have built over the last 70 years suffered extensive damage," Mike Thralls, executive director of the Oklahoma Conservation Commission, told Ron Hays with Radio Oklahoma Network. "The work that has been done since the dust bowl to protect our natural resources and to control flooding in our state was really knocked for a loop. We have never seen this level of damage."

Information released by the Conservation Commission showed the need for more than $8.8 million additional dollars to rehabilitate several high hazard dams. This figure was on top of the estimated $7.1 million for operation and maintenance of these and other flood control structures.

The Commission also proposed that an additional $8 million should be made available to landowners on a cost-share basis to repair damaged conservation practices such as terraces, waterways, farm ponds and other erosion control measures with another $3 million needed to restore riparian systems in Caddo County. Additional funds are also required to address roadside erosion and to purchase equipment. While all of these numbers are subject to change as assessment of the damage continues, one thing, according to the Conservation Commission, is clear. A majority, if not all of these funds, will have to come from the state.

Conservation leaders met with Gov. Brad Henry this week to talk about this need. According to Pope, discussions are already underway with lawmakers about possibly dipping into the state's rainy-day fund to help address what these conservation leaders are calling a pressing need for conservation infrastructure in the state.
-- Ron Hays, Radio Oklahoma Network

    Plan To Be In Omaha Nov. 7-8 For BEEF Quality Summit

Almost overnight, the ethanol juggernaut has reworked the U.S. agricultural landscape. Driven by ever-increasing, government-mandated production levels, almost 5 billion gals. of ethanol were produced in 2006, and Congress this fall will consider a Renewable Fuels Standard that could require as much as 36 billion gals. of renewable fuels be produced in the U.S. by 2012.

-- Click on headline to read the rest of this story by Bill Zimmerman

      Redesigned Web Site Offers More Forage-Related Info

Hay & Forage Grower magazine, a sister publication to BEEF, has redesigned its Web site. The site, hayandforage.com, offers the latest in forage-related info in an easy-to-find, one-stop format for hay, silage, grazing, forage testing, forage equipment, marketing and other forage-related topics. Click through the various categories listed across the top of the site and you get lists of stories related to those categories.
-- Hay & Forage Grower magazine

      Senate Ag To Markup Farm Bill Next Week

The Senate Agriculture Committee plans to markup the farm bill next Wednesday after an agreement was reached between Sens. Tom Harkin (D-IA), chairman of the Senate Agriculture Committee, Saxby Chambliss (R-GA), ranking member of the Senate Agriculture Committee, and Kent Conrad (D-ND), chairman of the Senate Budget Committee. Details of the agreement are expected later this week. However, indications are farmers will be given an option to choose between the current farm program or a state-based revenue insurance program. Also, mandatory country-of-origin labeling for meat is expected to be in the compromise.
-- P. Scott Shearer, Washington, D.C. correspondent

      Tax Deduction Deadline Approaches

A law boosting tax deductions for landowners who enroll land in a conservation easement is set to expire Dec. 31. Any landowner wishing to take advantage of the tax deduction that increased from 30% to 50% of a qualified donor's yearly income needs to act fast. For qualified working ranches and farms, the deduction is 100%.

The law tripled the carry-forward for deductions from five to 15 years, but the enhancements apply only to transactions made in 2006 and 2007. Talk with your tax or estate-planning consultant, or log on to www.lta.org/farmersandranchers.
-- Burt Rutherford

      U.S. Corn Forecast Up Slightly From September

According to a USDA survey, U.S. corn production is forecast at 13.3 billion bu., up slightly from last month and 26% above 2006. Based on conditions as of Oct. 1, yields are expected to average 154.7 bu./acre, down 1.1 bu. from September but 5.6 bu. above last year. If realized, this would be the second-highest yield on record, behind the 160.4-bu. yield in 2004.

Production would be the largest on record as growers expect to harvest the most corn acres for grain since 1933.

Forecast yields are higher than last year across the Great Plains, central Corn Belt and Delta where adequate rainfall during much of the season provided favorable growing conditions.

Expected yields across the Ohio and Tennessee Valleys, Northeast, and Mid-Atlantic States are down from last year, as drought conditions during much of the growing season reduced soil moisture levels and stressed the crop.

Meanwhile, soybean production is forecast at 2.60 billion bu., down less than 1% from the September forecast, and down 19% from last year's record high. Based on Oct. 1 conditions, yields are expected to average 41.4 bu./acre, unchanged from last month, but down 1.3 bu. from last year. Compared with last month, yields are forecast lower in Illinois, Kentucky, Tennessee, Wisconsin and most of the Atlantic Coast states.

Hot, dry conditions continued to cause most of the decline, especially in Delaware, Illinois, Kentucky, Virginia, and the Carolinas, all down at least 2 bu. from last month.

Yields increased from the Sept. 1 forecast in Iowa, Ohio, New York, the Dakotas, and most of the Gulf Coast states.
-- Southeast Farm Press



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