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Prices near historic highs, supplies tight, and with efforts to
improve consumer demand continuing to make headway, there weren't a
whole of negatives to discuss at the industry's convention last week.
Of course, there were a multitude of issues on a myriad of fronts that
demanded industry attention, but the number-one concern was one that's
largely out of the circle of influence for the industry's association.
That concern was all about input costs -- fuel, steel, corn and
practically every commodity we use. While the long-term prospects for
this industry look as bright as they've ever have, the changes in our
price structure are heightening volatility and risk, and eroding profit
margins. It leaves the industry in a unique position -- tremendous
opportunities from a long-term perspective but lots of risk,
particularly in the short term.
Admittedly, there's quite a bit of uncertainty about the consequences in
the short term, but everyone's focus seems to be on those things they
can influence. And those are to continue to build demand and protect the
industry's competitiveness from an industry perspective, and from an
individual operation standpoint. That means focusing on increasing value
and efficiency.
-- Troy Marshall
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In addressing last week's Cattle Industry National Convention in
Reno, NV, USDA Secretary Ed Schafer indicated that one of his top
priorities as Secretary in what's expected to be a fairly lame duck
session would be to continue to work on reopening trade. He also
indicated the Bush Administration's continued issues with the farm bill,
and its promised veto if major revisions to either the House or Senate
versions aren't forthcoming.
While there's been a lot of talk about the dire consequences that would
occur if a new farm bill isn't passed, that isn't likely to happen.
Either a compromise will be created, or the last farm bill will be
extended. In an election year, Washington will do something: the
incentive is too large.
-- Troy Marshall
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Mercer Cattle, LLC, Richton, MS, was formally recognized as winner
of BEEF magazine's 2007 National Stocker Award (NSA) last week in Reno,
NV. Sponsored by BEEF magazine and Elanco Animal Health, the
recognition included a $10,000 prize and an expenses-paid trip to the
2008 Cattle Industry Annual Convention to receive the award.
The NSA is divided into three categories: backgrounding/drylot stocker
(feed-based); fall/winter stockering (forage-based); and summer
stockering (forage-based). A single winner is chosen from each category,
with the overall NSA winner selected from these. The two runners-up
divisional winners receive $2,500 in cash, sponsored by Elanco.
Among the finalists were Mercer Cattle, LLC, winner of the fall/winter
stocker division; Gallery Ranch at Dewey, OK, drylot/backgrounding
division; and Holcombe Ranch, Bartlesville, OK; summer-stocker division
winner.
For more detail on the Mercer operation, click here: beefmagazine.com/people/archive/beef_know_your_strengths/.
To view a video on the Mercer operation, visit: nationalstockeraward.com/
Nominations for the 2008 NSA are now being accepted. Deadline for
application is May 1. For more info on the 2008 contest, visit www.nationalstockeraward.com,
or contact NSA coordinator Wes Ishmael at 817-249-4545 or wesleysink@aol.com.
-- Joe Roybal
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More than 100 ag organizations have written the House and Senate Ag
Committees urging the Market Access Program be funded at least $240
million annually and the Foreign Market Development program be funded at
least $44.5 million as provided in the Senate-passed farm bill.
The letter said, "These programs are among the few tools specifically
allowed in unlimited amounts under World Trade Organization rules to
help American ag and American workers remain competitive in a global
marketplace still characterized by highly subsidized foreign
competition."
Those signing the letter included: the American Meat Institute, American
Soybean Association, National Chicken Council, National Cotton Council,
National Council of Farmer Cooperatives, National Milk Producers
Association, National Pork Producers Council, National Renderers
Association, Pet Food Institute, U.S. Apple Export Council, and the Wine
Institute.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Twenty-three ag organizations wrote the House and Senate Ag
Committee leaders urging the farm bill be completed by March 15.
The letter stated, "Farmers and ranchers are currently operating in the
dark -- the winter wheat crop is already planted and spring crop
producers are in the process of procuring inputs and securing financing
for the 2008 crop year. Other vital programs for conservation, rural
development, renewable energy and nutrition are also awaiting final
congressional action on the farm bill."
The groups reminded the committees that commodity programs had already
been reduced by 60% compared to the 2002 farm bill. They said,
"...further budget reductions will not result in a comprehensive farm
policy to address the challenges across rural America. Therefore, the
Administration's opposition to providing adequate revenue to fund the
new farm bill is short-sighted for American ag."
Organizations signing the letter included: the American Farm Bureau
Federation, American Soybean Association, American Sugar Alliance,
National Association of Wheat Growers, National Barley Growers
Association, National Cotton Council, National Farmers Union, U.S. Rice
Producers Association, and USA Rice Federation.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Beef, dairy and veal industry leaders attending the Veal Council
Meeting at the 2008 Cattle Industry Annual Convention & Trade Show in
Reno, NV, learned more about four new veal cuts designed for the casual
theme segment of the foodservice industry to help increase veal demand
nationwide.
The four new cuts include: the Osso Bucco for Two, Double-Bone Veal
Chop, Tuscan Style Veal Chop and Boneless Osso Bucco.
"These four cuts more fully utilize the veal square cut chuck," says
Mike Lemler, vice chairman of the Veal Council and a California veal
marketer. "The new cuts also make it economically attractive for veal
packers and processors to separate these muscles and add value for
foodservice operators in the casual dining segment."
The Veal Optimization Study funded in 2007 already created five new cuts
representing 20% of the veal square chuck cut. Those cuts included the
Veal Flat Iron, Veal Petite Tender, Veal Shoulder Tender, Veal Filet
Tender and Boneless Shoulder Rib.
For more, visit www.vealstore.com.
-- NCBA news release
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The 2008 Beef Industry Vision Awards, presented by the National
Cattlemen's Foundation, were announced last week.
The Vision Award, sponsored by Micro Beef Technologies, recognizes
individuals, businesses and organizations in the cattle industry who
have incorporated innovation into their operation in an effort to
enhance not only their business, but also the industry as a whole. The
award honors winners in all segments of the beef industry: cow/calf
operation, feeding operation, livestock market, packer/processor and
retail. Among the recipients were:- Cow-calf operator -- Robert
Bruner, Bruner Angus Ranch, Huntsville, TX;
- Feeder -- Paul Engler, Cactus Feeders, Amarillo, TX;
- Feeder -- James Herring, Friona Feedyard, Amarillo, TX;
- Livestock market -- Jackie Moore and Steve Owens, Joplin Regional
Stockyards, Joplin, MO;
- Retailer -- HEB, San Antonio, TX;
- Processor -- Eldon Roth, Beef Products, Inc., Dakota Dunes,
SD.
Nominees were evaluated on the basis of effective use of
technology, impact on production costs, ingenuity of implementation,
innovative marketing, impact on the industry and optimum resource
management.
-- National Cattlemen's Foundation release
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The day began with an early morning flight from Buenos Aires west to
the city of Mendoza, a city of 1 million inhabitants located in the
foothills of the Andes Mountains near Chile. Mendoza was founded in 1561
and is a budding gambling destination. It contains three casinos with
four more on the way.
It's our jump-off point for our four-hour bus ride back toward the east
to Villa Mercedes in San Luis Province, home of the nine-year-old Cactus
Argentina feedlot, a Texas-style cattle feeding venture between Tyson
Foods, Cactus Feeders and Cresud - an Argentine agricultural
conglomerate.
-- Click on headline to read the rest of this
story by Joe Roybal
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Last week, Bruce Knight, USDA Undersecretary of Marketing and
Regulatory Programs, addressed the National Cattlemen's Beef Association
(NCBA) Cattle Health & Well Being Committee. During his presentation,
Knight outlined what's on his radar for 2008.
-- Click on headline to read the rest of this story by
Alaina Burt
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The latest issue of American Cowman Update, published twice
each month and containing news and features of interest to smaller
cattle operations, is available at www.americancowman.com.
Included in the issue are articles on: appraisal advice for your horse,
carcass ultrasound 101, the newest in fencing, as well as a Steve Lucas
poem, "Valentine's Day The Cowboy Way," and much more.
At www.americancowman.com, you
can find lots of information on facilities, nutrition, health, pasture &
range, genetics, management tips of the week, recipes, and some
interesting reader blogs, to name a few of the offerings.
-- Joe Roybal
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Cattle, and the manure they produce, have long been accused of
playing a role in declining water quality. However, very little data
existed, particularly from forage-based livestock production systems, to
prove or disprove that claim.
That's changing. Researchers at the Ag Research Service's Beef Cattle
Research Unit at Brooksville, FL, have released results of a long-term
study that shows cattle and pastures can be managed in an
environmentally safe way.
Testing was done in three large pastures with a combined area of about
3,800 acres. About 1,000 cows, calves and bulls were used in the study.
Overall, there was no buildup of phosphorus or other nutrients in the
soil, despite an annual application of fertilizers and daily use by
cattle. In fact, soil analysis showed declining nutrient levels,
especially of phosphorus.
The next step in the research is to integrate environmental, plant and
animal genetic resources into a sustainable cattle-agroecosystem
suitable for the subtropical U.S. The goal, ARS researchers say, is to
optimize forage-based cow-calf operations to improve pasture
sustainability and protect water quality.
Visit www.ars.usda.gov/is/AR/archive/feb08/cattle0208.htm
for more info.
-- ARS release
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Fed-cattle prices between $92-$94/cwt. Feeder cattle between
$103-$105. And calf prices averaging near $115. Those were the 2008
average cattle price projections from Cattle-Fax in its
always-anticipated executive summary presented last week at the 2008
Cattle Industry Convention and Trade Show in Reno.
-- Click on headline to read the rest of this
story by Larry Stalcup
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The U.S. Department of Homeland Security (DHS) announced a series of
proposed rule modifications to provide employers with a streamlined
hiring process for temporary and seasonal ag workers under the H-2A
program.
The proposed rule would:- Require an employer attestation
regarding the scope of the H-2A employment and the use of recruiters to
locate H-2A workers,
- Crack down on employers and recruiters who impose fees on
prospective H-2A workers,
- Eliminate the ability of employers to file an H-2A petition without
an approved temporary labor certification, and
- Prohibit the approval of H-2A petitions for nationals of countries
determined to be consistently refusing or unreasonably delaying
repatriation of their nationals.
The rule also proposes the
establishment of a land-border exit system pilot program. Under the
program, H-2A visa holders admitted through a port of entry
participating in the program would also depart through such an exit
point and present upon departure designated biographical info, possibly
including biometric identifiers.
The proposed rule is available at www.dhs.gov for public comment and
will soon appear at www.regulations.gov under
docket number USCIS-2007-0055, until 60 days after publication in the
Federal Register. More info regarding the proposed rule, plus
instructions on submitting comments, is available in an accompanying
fact sheet available at www.uscis.gov.
-- Department of Homeland Security Release
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The Federation of State Beef Councils (FSBC) has awarded seven new
grants through its Federation Initiative Fund to help underwrite beef
promotions in states with high human populations but low cattle numbers
and limited checkoff collections.
The awards were announced during the 2008 Cattle Industry Annual
Convention and Trade Show, Feb. 6-9 in Reno. New grant awardees include
Florida, Georgia, Michigan, Nevada, New York, Oregon and
Pennsylvania.
The fund, which just topped $1 million, is supported by the FSBC, as
well as additional voluntary contributions from state beef councils in
Arkansas, Colorado, Idaho, Iowa, Kansas, Kentucky, Nebraska, Oklahoma,
South Dakota and Texas.
Money comes from the states' 50¢ portion of the $1 checkoff and
helps extend national efforts to increase beef demand, says Gary Voogt,
a Michigan producer and FSBC chairman.
"Here's an example -- there are 19 million consumers in New York State,"
he says. "That's more than six times the population of Kansas and more
than 30 times that of North Dakota. The need for a cooperative effort to
support member states and help distribute checkoff dollars to heavily
populated areas is crystal clear."
FSBC is an alliance of 45 beef councils that invest checkoff dollars to
support and implement beef promotion, education and research programs at
the state and national level. It has been in operation since 1963.
-- Larry Stalcup
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Rep. Collin Peterson (D-MN), chairman of the House Ag Committee, and
Bob Goodlatte (R-VA), ranking member of the committee, presented a
suggested outline for spending to achieve a new, 10-year farm bill. The
outline represents $6 billion over the current baseline.
-- Click on headline to read the rest of this
story by P. Scott Shearer, Washington, D.C. correspondent
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Cropland values boomed in fourth quarter 2007, easily surpassing the
previous highs posted in the last quarter, according to the Federal
Reserve Bank of Kansas City's fourth-quarter Survey of Ag Credit
Conditions.
In the survey of 268 banks in the seven-state Tenth Federal Reserve
District, both non-irrigated and irrigated cropland values surged at a
record pace, rising 21% and 18% above year-ago levels. Bankers also
cited more farmland sales in 2007 than in the previous year. They noted
more farmers were active in the land market, with fewer land purchases
for recreational use in 2007. Those surveyed expected farmland values to
rise further in 2008, especially in non-irrigated cropland.
A strong crop sector led to robust increases in the District's farm
income index in the fourth quarter. Overall income gains, however, were
tempered by declining livestock profits. Because of this, Nebraska
posted stronger fourth-quarter, farm-income gains, and Oklahoma pulled
back from a recent high in the third quarter.
Year-end capital spending strengthened as higher incomes allowed ag
operators to upgrade equipment and facilities. Farm credit conditions
also improved further, with higher loan repayment rates and historically
low requests for renewals and extensions.
A complete summary of the second quarter survey is available at www.KansasCityFed.org/agcrsurv/agcrmain.htm.
-- Federal Reserve Bank of Kansas City
release
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There are now 37 open seats in the House of Representatives with
more announcements of members retiring, running for another office, or
defeated in primary elections. The latest announcements include: Rep.
John Shadegg (R-AZ), Darlene Hooley (D-OR), and Kenny Hulshof (R-MO).
Hulshof, a well-respected member of the House Ways and Means Committee
and a strong advocate for ag, is running for the governorship of
Missouri. Meanwhile, two incumbents, Rep. Al Wynn (D-MD) and Rep. Wayne
Gilchrest (R-MD), lost in the Maryland primary on Tuesday. More
retirement announcements are expected.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Recognizing them for their prowess and success in marketing beef,
the beef industry last week in Reno honored its top National Beef
Backers.
The foodservice awards recognize chain and independent restaurant
operators that excel in menuing and marketing beef. More than 8.66
billion lbs. of beef were served in the foodservice channel in 2007.
Among the honorees were: - Cherry Valley Country Club, Skillman,
NJ, in the "Independent" category;
- Logan's Roadhouse, Nashville, TN, in the "Chain" category;
- The Rex Restaurant & Bar, Billings, MT, as the "Innovator of the
Year."
In addition, cited as the first annual National Retail Beef
Backer® Awards honorees were:- Chain (11+ stores)
-- Harris Teeter (166 stores), based in Matthews, NC.
- Independent (fewer than 11 retail stores) -- Foodmaster
Supermarkets (10 stores), based in Chelsea, MA.
- Innovator --The Kroger Company (2,400 stores), based in Cincinnati,
OH (recognized for its launch of the Flat Iron Steak). Chosen from all
the nominees, this award recognizes an innovative beef support program
or product merchandising program that succeeded in increasing beef
demand.
-- NCBA news release
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Last weekend, Chairman Collin Peterson (D-MN) and Ranking Member Bob
Goodlatte (R-VA) sent a letter to the farm-bill community to let them
know where the farm bill stands. The letter indicated they were working
on developing a "basic framework" designed to pass a bipartisan farm
bill that the President could sign.
The letter stated, "We don't believe that any strategy involving a veto
will be good for the country. We encourage everyone involved in this
process to look realistically at what can be accomplished. We know this
sense of realism will disappoint some people who wanted more out of the
farm bill. We wanted to do more, too, but reality tells us that the
possibilities are limited."
Peterson and Goodlatte's goal is complete work on the farm bill by March
15.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The U.S. average retail price for regular gasoline slipped 1.8¢
to $2.96/gal. as of Feb. 11, the lowest since late October 2007 but
71.9¢ higher than the price a year ago. Meanwhile, retail diesel
was unchanged at $3.28/gal, or 80.4¢/gal. higher than a year ago.
Regarding gasoline, all regions but the West Coast were down from the
previous week. The East Coast fell 2.8¢ to $2.977, the lowest price
since early November 2007 and 78.8¢ above the price a year ago. The
Midwest shaved 2¢ to $2.942, or 71.8¢ over last year. The Gulf
Coast fell 2.1¢ to $2.851, and the Rocky Mountain price fell
0.6¢ to $2.935. The West Coast moved up 0.5¢ to $3.06, while
the average price for regular grade in California was $3.108/gal., or
47.6¢ above the price a year ago.
For diesel, the East Coast dropped 1.4¢ to $3.324, the region's
lowest price since early November 2007 and 85.9¢ higher than a year
ago. The Midwest added 0.6¢ to $3.249 -- 82¢ above a year ago,
while the Gulf Coast fell 0.8¢ to $3.239, or 84.5¢ above the
level a year ago. The Rocky Mountains added 0.4¢ to $3.264, or
74.7¢ above the price a year ago, while the West Coast increased by
2.2¢ to $3.347 -- 57¢ over one year ago. California was up by
1.6¢ to $3.393/gal. or 48.8¢ more than a year earlier.
-- Energy Information Administration
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Russia this week authorized beef imports from five additional U.S.
processors, including JBS-Swift & Co., Tyson Fresh Meats and National
Beef Packing Co. That brings the total number of beef plants and cold
storage operations approved for export to Russia to 26. For a plant
listing, visit
www.fsis.usda.gov/Frame/FrameRedirect.asp?main=http://www.fsis.usda.gov/OFO/export/lrubeef.htm.
Russia allows imports of beef and beef products from animals under 30
months of age. The beef and beef byproducts must be derived from cattle
raised in the U.S. and processed in a manner to prevent contamination
with brain, spinal cord, eyes, skull and vertebral column regardless of
the age of the animal. Eligible beef and beef byproducts must be
produced under an approved Export Verification (EV) program for beef to
Russia. For more on the EV program for Russia go to
www.ams.usda.gov/lsg/arc/bev.htm.
-- American Meat Institute
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USDA released its 10-year ag projections this week and it
anticipates a drop in production of all meats for the next few years as
more and more corn is diverted to ethanol.
-- Click on headline to read the rest of this
story by Burt Rutherford
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In addition to being one of the cattle industry's modern legends,
the late W.D. Farr was also known for his intense interest and
involvement in water issues. To honor his lifetime of helping develop
commonsense water use and conservation policies, the Farr family has
donated Farr's water papers to the Colorado State University Water
Resources Archive.
The collection includes papers and photos related to all aspects of
Farr's life and work in water, ag and banking. The archive will process
the collection, organizing its contents and create an online search
program of the items. The archive hopes to make the Farr materials
available for public use in 2009.
-- Colorado State University release
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The Yolo Land & Cattle (Hank Stone Company) was cited as the 2008
Environmental Stewardship Award national winner in Reno. Representing
the National Cattlemen's Beef Association (NCBA)'s Region VI, the
operation competed against five other operations for the national
recognition. The award, now in its 17th year, is sponsored by National
Cattlemen's Foundation, NCBA, Dow AgroSciences, USDA Natural Resources
Conservation Service and U.S. Fish & Wildlife Service.
Among the other regional honorees were: Region I, Sunrise Club Calves,
Shippenville, PA; Region II, Dee River Ranch, Aliceville, AL; Region
III, Oak Knoll Ranch, Salem, MO; Region IV, Roaring Springs Ranch,
Frenchglen, OR; and Region VI, Alexander Ranch, Sun City, KS.
-- Joe Roybal
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