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It still seems strange that agriculture is more concerned about the
energy bill than the farm bill but that's certainly the case and for
good reason. The fallout stands to be greater under the energy bill.
-- Click on headline to read the rest of this
story by Troy Marshall
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Anyone who follows the margins for the various industry segments
knows that losses in the packing industry have been mounting week after
week, since about mid August. A relatively profitable week for the
packing industry has seen them lose only $20/head.
-- Click on headline to read the rest of this
story by Troy Marshall
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The Colorado State Fair Board of Commissioners voted Nov. 30 to
continue to require all 4-H and FFA livestock entries at the Colorado
State Fair to hold a valid livestock premises ID number. The board also
voted to establish a timeline to implement premises ID for all large
animals on the fairgrounds during the event.
"Thousands of animals come to the fair and that makes the event an
amplification point for a disease outbreak," said General Manager Chris
Wiseman. "It's the responsibility of the fair to consider livestock
health issues; requiring premises ID numbers is an important tool for
disease traceability."
Premises ID is a portion of the National Animal Identification System
(NAIS) and identifies where livestock are, or have been, located. It's
voluntary at the federal and state levels, costs nothing, and requires
only general info: contact person and phone number, mailing and physical
location and type of livestock on the premises.
The Colorado Department of Ag and its Colorado Livestock Security System
(CLSS) encourages participation in the NAIS to help USDA and Colorado
maintain the health of all of Colorado's livestock.
"As an ag community, we must be more health conscious about our animals.
Premises registration at the Colorado State Fair is an important tool to
protect an industry that contributes $16 billion annually to Colorado's
economy," said Ag Commissioner John R. Stulp.
"While there are still some details to work out, I feel proud that the
Colorado State Fair has taken another important step in helping
officials move rapidly in the event of an animal disease outbreak,"
Wiseman continued.
For more info on voluntary premises ID in Colorado, log onto www.COanimalid.org or call
1-877-842-0102. For more info on the fair, visit www.coloradostatefair.com.
-- Troy Marshall
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Sen. Jon Tester (D-MT) has offered an amendment to the farm bill
that would require that a packer treat all producers the same
"regardless of any alleged business justification." Yes, this could
include paying more for high-quality cattle with superior genetics or
even cattle with known management attributes such as certain feeding
protocols to improve quality.
-- Click on headline to read the rest of this
story by Troy Marshall
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A number of ag organizations have sent letters to President Bush and
Congressional leaders objecting to the administration's refusal to
release funds for the GSM-102 export credit guarantee program, Market
Access Program (MAP), and the Foreign Market Development (FMD) Program.
The programs have been used by U.S. ag over the years to expand and
promote U.S. ag programs overseas.
The letter stated, "These programs are crucial to American ag's ongoing
efforts to open, expand and maintain overseas markets for U.S. products.
Furthermore, they're among the few tools specifically allowed in
unlimited amounts under World Trade Organization (WTO) rules to help
American ag and American workers remain competitive in a global
marketplace still characterized by highly subsidized foreign
competition."
The letter also stated that USDA has the authority to operate the MAP
and FMD programs, but that the Office of Management and Budget is
preventing the continued implementation of the programs. There are
indications that the U.S. has lost wheat sales to foreign competitors
because of the lack of availability of the GSM-102 program.
Some of the organizations signing the various letters included: American
Farm Bureau Federation, American Feed Industry Association, American
Soybean Association, National Association of Wheat Growers, National
Milk Producers Federation, National Oilseed Processors, National Pork
Producers Council, National Turkey Federation, Sunkist Growers, U.S.
Grains Council, U.S. Meat Export Federation, U.S. Rice Producers
Federation, and U.S. Wheat Associates.
-- P. Scott Shearer, Washington, D.C.
correspondent
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A letter was sent to Congressional leadership urging that the energy
bill be completed with a "robust" Renewable Fuels Standard (RFS). The
letter stated: "The nation is at a crossroads in dealing with energy
security. We can choose the path of least resistance and relegate future
generations to increased dependence on unstable and often hostile
regions of the world for our energy needs. Or we can take the necessary
action to begin to move America in a stable and sustainable energy
direction by increasing our reliance on domestic renewable energy like
biofuels."
The letter was signed by the American Coalition for Ethanol, American
Farm Bureau Federation, National Association of Wheat Growers, National
Biodiesel Board, National Corn Growers Association, National Farmers
Union, National Sorghum Producers, and Renewable Fuels Association.
-- P. Scott Shearer, Washington, D.C.
correspondent
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USDA announced 39 appointments to the Cattlemen's Beef Promotion and
Research Board. The board oversees collection of $1/head on all cattle
sold in the U.S., and $1/head equivalent on imported cattle, beef and
beef products.
The appointments include: Max Bozeman, Jr., AL; Weldon D. Wynn, AR;
Manuel Rodrigues, CA; Harold A. Wick, CO; Sidney L. Sumner, FL; Dan D.
Hinman, ID; William R. Frazee, IA; Paul L. Kent, MN; Dianne Sites, MO;
Lawrence J. Switzer, MT; David C. Schubel, NY; Brian C. Healey and Steve
Smola, OK; Sharon E. Livingston, OR; Daniel M. Kniffen, PA; Charles L.
Ezer and Mary Lou Bradley, TX; and Warren D. Viergutz, WI.
Reappointed members representing cattle producers by state or region
(unit) are: Virginia K. Coelho, CA; David W. Bateman, IL; Virginia J.
Davis, IN; Daniel F. Petersen, IA; Glenda J. Flora and Dana R. Hauck,
KS; Albert W. Pedigo, KY; O.D. Cope, MO; Ross D. Garwood and Doris L.
Rush, NE; Jeffrey L. Dahl, ND; Neil C. Kayser, Northwest; Franklin J.
Phelps, OH; Merrill Karlen, Jr., SD; Robert Q. Fountain, Jr., Southeast;
Robert D. Fugate, TN; Austin E. Brown III, Richard J. Hodge, and Sharon
G. Spenrath, TX; and Bobby L. Combs, VA.
In addition, R. Wayne Buck, CO was appointed to complete the term of a
producer who recently resigned from the board; and Donald E. Stewart was
reappointed to represent importers.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Congress plans to extend various programs of the current farm bill
until March 15, 2008. This would give the Senate time to finish the farm
bill and send it to the President for consideration.
Rep. Collin Peterson (D-MN), chairman of the House Ag Committee, said:
"This provision will protect the budget we have for the farm bill that
Congress is currently writing. We've seen promising movement in the
Senate, and I'm confident we can finish work on the farm bill early next
year."
According to Peterson, it won't include extension of the 2002 commodity
programs to the 2008 crop year because they will be part of the new farm
bill.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The second wave of the foot-and-mouth disease (FMD) that hit the UK
this fall was likely caused by contaminated soil from the government's
Pirbright scientific research lab, www.timesonline.co.uk
reports. The allegation is that contractors working on a $245-million
modernization of the lab collected soil contaminated with live virus at
the site and sold it as topsoil. Some of the soil was spread on land
next to a farm where animals were later identified with the disease, the
report says.
Under government guidelines, waste from any site dealing with
live-disease viruses requires a special disposal license, but the UK's
Department for Environment, Food and Rural Affairs appears to have
overlooked the need for such a licence in this case.
- www.timesonline.co.uk
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The U.S. average retail price for regular gasoline fell for the
fourth-straight week, shaving 6.1¢ to settle at $3/gal., as of Dec.
10, or 70.7¢ over last year. Meanwhile, diesel fell 9.1¢ to an
average price nationwide of $3.325, 70.4¢ higher than last year.
All regional prices decreased for gasoline, as the East Coast shaved
4.2¢ to $3.031, the Midwest dropped 10¢ to $2.895, the Gulf
Coast dipped 5.9¢ to $2.876, and the Rocky Mountain region fell
4.6¢ to $3.008. The West Coast was highest at $3.244, though it
fell 3.2¢ for the week. Average price for regular in California was
$3.329, down 3.2¢ but 82.5¢ more than last year.
Retail diesel was down across the country, as the East Coast shaved
7.2¢ to $3.372, the Midwest 10.9¢ to $3.276, the Gulf Coast
8¢ to $3.265, the Rocky Mountain region 9¢ to $3.397, and the
West Coast 9.2¢ to $3.44. At $3.455/gal., California was down
11.2¢ for the week.
-- Energy Information Administration
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"In it's current state," says Andy Gottschalk, a commodity broker
and owner of hedgersedge.com, "ethanol is not a
friend to the cattle industry."
That may seem a bit harsh, given the large amounts of distiller's grains
that are now a part of many cattle rations. But Gottschalk contends that
the effect ethanol has on demand and price of corn and competing grains,
coupled with tight global corn stocks, spells bad news for cattlemen --
particularly cow-calf producers.
"The sector of our industry most susceptible to the adverse impact of a
sharp increase in corn prices is the cow-calf sector. Higher corn or
feedgrain prices will ultimately limit the price the fed sector will pay
for calves and feeders. Each 10¢ advance in corn prices will reduce
the value of a calf or feeder $4-5/head," he says.
Nonetheless, renewable fuels got a big boost in the House energy bill
passed this week. The Energy Independence and Security Act passed by a
vote of 231-181 and calls for an increase in refiner use of renewable
fuels to 9 billion gals. in 2008 and increasing to 36 billion gals./year
in 2022. It also includes a separate mandate for biodiesel and
encourages the use of cellulosic sources for biofuels.
-- Burt Rutherford
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The Senate is slowly moving through the farm bill after the
leadership reached an agreement late last week to move forward. In the
agreement, both Democrats and Republicans are allowed to offer 20
amendments each during Senate consideration of the farm bill.
The leadership would like to complete the bill before the Senate leaves
next week for the year. This would allow the House and Senate to
complete a conference committee in January or February.
By a vote of 58-37, the Senate defeated Sen. Richard Lugar's (R-IN)
farm-bill alternative that would have ended most commodity subsidy
programs in favor of a larger crop insurance program. It also would have
provided more spending for conservation, energy, rural development and
nutrition. As of Wednesday, the Senate has considered nearly half of the
amendments.
-- P. Scott Shearer, Washington,
D.C. correspondent
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Politics always trumps economics, says Brad Lubben, and politics is
playing a key role in the current farm-bill debate. Lubben, a University
of Nebraska ag economist, says cattlemen need to pay close attention to
the farm-bill debate because the outcome will have a direct affect on
their operations.
For example, he says, all the studies show that both producers and
consumers will lose if the proposed ban on packer ownership of cattle is
passed. While there's a strong political push to regulate the packing
industry, he says it may be a situation of the cure being worse than the
disease.
"Is there market power (by packers)?" he asks. "Some studies suggest
there is, but the benefits of economies of scale outweigh the detriments
of packer ownership."
Another portion of the Senate farm bill that cattlemen are watching
closely is the country-of-origin (COOL) provision. "COOL is coming
whether this farm bill is passed or not. Mandatory COOL is on its way
Sept. 1, 2008," he says. The question is, can Congress get a farm bill
passed that contains a compromise COOL provision.
However, the current COOL debate may be moot, he adds. Mandatory COOL
may just be a transition to a process-verified and traceable
beef-production system. Major retailers are already asking for such a
system and that, in the end, may trump COOL.
-- Burt Rutherford
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Learn about the latest in cow-calf production at the 24th Annual
Four-State Beef Conference, Jan. 9-10. Held four times in four states --
Iowa, Kansas, Missouri and Nebraska -- in morning and evening sessions,
organizers say the 2008 conference will reflect on a year of
agricultural change.
Among the conference topics are: the ins and outs of ethanol
co-products, and their storage, mixing and feeding; a producer
perspective on tools for profitability; and pasture renovation,
interseeding legumes, and using wheat or triticale.
The meeting schedule is:- Jan. 9 -- Tecumseh, NE, Community
Building, 9:30 a.m.; and Washington, KS, First National Bank, 3:30 p.m.
- Jan. 10 -- Bethany, MO, Community Center, 9:30 a.m.; and Lewis, IA,
Armstrong Research Farm, 3:30 p.m.
Pre-registration, which is $25
and includes a beef lunch or dinner and a conference proceedings, ends
Jan. 4. To register, or for more info, contact Darrell Busby at
712-769-2600 or visit www.extension.iastate.edu/feci/4StBeef/.
A brochure is also available at www.iowabeefcenter.org.
-- Iowa Beef Center news release
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The five-state "Heart of America" grazing conference returns to
Missouri, Jan. 7-8, with grassland farmers expected from Ohio, Indiana,
Illinois, Kentucky and Missouri. The conference, which rotates among
sponsoring states, will be held at the Holiday Inn Select in Columbia.
Included on the program are: A discussion on the future of grassland
agriculture, No-risk ranching, From production to profit in ranching,
Grazing for ecological and economic sustainability, Use of ethanol
co-product feeds for livestock on pasture, The future of energy from
cellulosic products, and a producer panel commenting on production
methods.
Registration is $70/person. Visit agebb.missouri.edu/mfgc/
for a full program, and click on: "Heart of America 2008."
-- Heart of America Conference release
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Last week's item on "Groups Oppose Increase In Renewable Fuels
Standards" should have listed the American "Bakers" Association as
signing the letter, rather than the American "Bankers" Association. We
apologize for the error and confusion.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The payment limitations amendment by Senators Byron Dorgan (D-ND)
and Chuck Grassley (R-IA) failed to pass the Senate. Even though the
amendment received a favorable vote of 56 to 43, it was withdrawn
because of a previous agreement the amendment needed to receive 60
votes. The amendment would have put a limit of $250,000 on farm-program
payments.
The issue of payment limitations isn't over because the administration
is expected to want to make this a key point in the House-Senate
conference committee on the farm bill.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Invasive weeds, wildfires, biofuels, carbon sequestration, forage
crops and grazing management, wildlife management, rangeland and
pastureland management, ranching, and suburban pressures are topics of
the 2008 Joint Annual Meetings of the American Forage and Grassland
Council (AFGC) and the Society for Range Management (SRM), Jan. 26-31.
Planned for the Galt House Hotel and Suites in Louisville, KY, the theme
is "Building Bridges: Grasslands to Rangelands" and will bring together
1,500 ecologists, rangeland and pastureland scientists, public and
private land managers, policy makers, students and others interested in
forages, grasslands and rangelands. Included are more than 50 symposia,
technical sessions, workshops and poster sessions, as well as field
trips. For more info, visit: www.rangelands.org/louisville2008/louisville2008_index.shtml
-- SRM news release
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The Senate passed an energy bill that increases the Renewable Fuels
Standard (RFS) provision that provides for 36 billion gals. of renewable
fuels by 2022 with 15 billion gals. from corn-based ethanol. It will
also include a requirement to increase the efficiency of vehicles to 35
mpg by 2020. This increase in the Corporate Average Fuel Economy (CAFE)
is the first in nearly 20 years. The bill is expected to pass the House
next week and be sent to the President.
-- P.
Scott Shearer, Washington, D.C. correspondent
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Texas and New Mexico Extension are collaborating for the fourth
annual Southwest Beef Symposium, set for Jan.16-17 at the Roswell, NM
Convention Center.
Tailored for Southwest beef producers, the symposium consists of three
educational sessions and a trade show, says Bruce Carpenter, Texas
Extension livestock specialist. The first session targets controlling
ranch costs, while the second session addresses current topics and how
emerging issues may affect how future business is done back at the
ranch. The final session deals with managing calf health beyond the
ranch.
Registration is $50/person and includes a prime rib dinner, lunch,
refreshments and proceedings. Pre-registration ends Jan. 3. Learn more
at cahe.nmsu.edu/ces/swbeef,
or call Carpenter at 432-336-8585, or Clay Mathis at 505-646-8022.
-- Texas A&M University release
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A notice filed in the Federal Register by the U.S.
Citizenship and Immigration Services (USCIS) requires employers to use a
new Employment Eligibility Verification Form (I-9) starting Dec. 26 for
new hires. Failure to do so could bring fines and penalties. The new I-9
form is available online at www.uscis.gov.
-- Click on headline to read the rest of this
story by Delta Farm Press
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With higher feed prices facing Utah livestock owners, Utah State
Veterinarian Earl Rogers advised ranchers this week to refuse any offers
of low-cost pet food as a feed source. The Utah Department of Ag release
warns producers that most pet foods contain ruminant byproducts, which
could pose the threat of BSE in cattle.
Feeding such ruminant byproducts to cattle is prohibited under federal
and state law, and any rancher or feedlot operator feeding such material
faces severe federal and state sanctions. If it is discovered that any
herd has been fed ruminant protein, the entire herd is immediately
condemned and removed from the market.
"It's possible that some pet-food manufacturers who have heard of the
depletion of feed sources in Utah because of drought and fire may offer
their scrap material to Utah ranchers," Rogers says. "While their offers
to help our ranchers are commendable, both buyers and sellers must know
that any pet food containing cattle or other ruminant material cannot be
fed to other cattle."
-- Utah Department of Ag
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I'm disturbed by all the complaining today - particularly by
cattlemen - regarding grain-based ethanol. As a consulting nutritionist
with 400,000 cattle under my care, and as a dairy owner and cattle
feeder myself, I know the reality of high feed costs.
-- Click on headline to read the rest of this
story by Tom Peters, Ph.D., Consulting Nutritionist, Oregon,
IL.
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