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| February 2, 2007 | |
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Table of Contents It's Frustration Time In Storm-Hit Cow Country More Than 6,000 Cattlemen Gather In Nashville, TN Kansas, Nebraska To Host Farm Bill Forums Dakotas Plan Cost-Control, Risk-Planning Workshops Cattle-On-Feed Trends Continue Nebraska Offers Manure-Management Programs Wyoming Ranch Takes Top Environmental Award Bearish On Oil -- Bearish On Corn Prices Illustrated "Pasture & Range Plants" Book Available New Limousin EPDs Available Timber Wolves Off Endangered List In Three States Voters Show Strong Support For Ethanol Downer Animals Legislation is Back Earlier COOL Implementation Proposed In Senate House Ag Subcommittees Named Johanns Presents New Farm Bill Proposal CAB's New Uniformity Rules Now In Effect February Issue BEEF Content Available Online Harsh Weather Effects May Linger On Cattle Rural Entrepreneurship Conference Slated For Feb. 28 Huskers Plan Feb. 19 Beef Cow Nutrition Meeting ADVERTISEMENT The POWER of one BRAND can change your future in the beef business. Certified Angus Beef ®, the oldest, most successful branded beef program in the industry returned more than $50 million in grid premiums in 2003. The demand for CAB® brand products translates into fed cattle premiums of $2-$5/cwt. Source-verified, high-percentage Angus replacement females often top auctions by selling for $50-$100 per head above cash market. Sale barn surveys conducted at nine auction markets indicated premiums are paid, not for black-hided cattle, but for high-percentage-Angus cattle. One brand, one breed--the power of one can change your future in the beef business. www.angus.org  Certified Angus Beef® and CAB® are registered trademarks of Certified Angus Beef, LLC Our Perspective It's Frustration Time In Storm-Hit Cow Country It's impossible not to detect the change in attitudes that's occurred since corn skyrocketed to record price levels, and winter storms hit areas of the country hard. There are times when outside forces conspire to create difficulties and wreak havoc in our business, and the frustration that results is certainly understandable. However, during these times, one has to be careful to avoid the short-term market disruptions clouding your vision relative to long-term trends. At the same time, it is this time of year -- before the grass turns green -- when ranchers have time to contemplate their long-range strategic plans. It's also the time when some folks begin to realize there's a difference between living for the cows, and making a living from the cattle business. My mom always preached there was a major difference between working hard and working smart. It's great advice, but how does one go about working smarter? Perhaps the answer is actually very simple in theory but difficult in practice. The key to working smarter is doing what you love, doing what you have passion for, and doing what you're extremely good at and well-rewarded for. Find that magical elixir where your talents, passion and mission intersect, then put the bulk of your efforts in that area. If you're making $250/hour doing what you love, it's easy to delegate the jobs you don't enjoy, and paying someone $10/hour to do them-- in many cases, probably better than you could. If you find your frustration level building, it may be just the predictable pressures of a commodity business, or it may be a signal your management priorities aren't aligned. -- Troy Marshall Back to Top More Than 6,000 Cattlemen Gather In Nashville, TN At press time for this issue, the real policy discussions of the National Cattle Industry Convention in Nashville, TN, hadn't yet been held. The first 11/2 days are primarily composed of educational and informational programs. Following that, the committees get down to the business of making policy. There's no shortage of issues at these meetings -- everything from the environment to taxes -- that present both challenges and opportunities for the industry. But in the meeting halls this year, the talk among the 6,000+ cattlemen in attendance centers on several key issues. The primary topic is the corn market and the whole ethanol thing in general. The second is the national beef checkoff. The third is national ID. Let's talk about the latter two issues.
Back to Top ADVERTISEMENT Search, sort, select your seedstock. The Limousin Exchange is an easy, efficient way to locate and sort bulls and females that fit your specifications:
www.nalf.org  Farm Bill Kansas, Nebraska To Host Farm Bill Forums Ag policy experts from Kansas State University and the University of Nebraska-Lincoln will host a series of meetings in both states focused on the issues and options in this year's farm bill debate. Registration fees will vary at each location, so call or email for more info. The meetings will discuss the farm bill debate and examine the mechanics and implications of various proposals. Efforts to shift funding to an expanded Conservation Security Program also will be discussed. Each meeting will also provide an opportunity for producer discussion and feedback. Kansas meetings include:
-- Joe Roybal Back to Top Risk Management Dakotas Plan Cost-Control, Risk-Planning Workshops Cost control and risk planning for livestock producers is the focus of a workshop set for four locations in the Dakotas. Sponsored by North Dakota, South Dakota and Montana state universities, National Crop Insurance Services, and USDA's Risk Management Agency, the workshops are aimed at helping livestock and forage producers in the Northern Plains develop personalized cost-control plans. The 9 a.m. to 4 p.m. workshops will address energy-related issues affecting production costs, feed resources, risk-management tools, and financial-management strategies. Dates, locations and contact numbers for the workshops are:
-- Joe Roybal Back to Top Beef Markets Cattle-On-Feed Trends Continue Higher corn prices, and aggressive early placements of feeder cattle and calves, continues to make for lower placement numbers of late. The December placement number was 9% below last year's levels. Fed cattle marketings (aided by winter weather) were 5% lower than last year, as well. The overall cattle-on-feed number continues to fall -- now just 1% above last year's levels. Meanwhile, the number of heifers on feed is up 4% compared to a year ago, indicating expansion has stopped or significantly slowed down. -- Troy Marshall Back to Top ADVERTISEMENT Broad-spectrum rotavirus coverage Not only does Scour Bos® 9 from Novartis Animal Health US, Inc. incorporate three unique strains of rotavirus, it also includes four E. coli K99 isolates, coronavirus and Clostridium perfringens Type C. Its broad-spectrum protection and initial dose flexibility fit right in at preg-check. Begin protecting heifers up to 16 weeks pre-calving and give the annual booster up to 10 weeks pre-calving. Click on the Scour Bos logo for more information. 
Environment Nebraska Offers Manure-Management Programs Upcoming nutrient-management programs offered in Nebraska include:
-- Joe Roybal Back to Top Wyoming Ranch Takes Top Environmental Award Southeastern Wyoming's Thaler Land & Livestock Co. is the 2006 Environmental Stewardship Award Program (ESAP) national winner. The announcement was made last night during the 2007 Cattle Industry Convention in Nashville, TN. Thaler Land & Livestock Co. was among seven regional winners vying for the national award that honors cattle producers whose stewardship practices are inventive, cost-effective and contribute to environmental conservation. Other 2006 regional winners were: Blight Family Farms, Albion, MI; Hayston Farms, Mansfield, GA; Clan Farms, Atlantic, IA; San Pedro Ranch, Carrizo Springs, TX; Diablo Trust Ranches, Coconino County, AZ; and Brown's Gelbvieh Ranch, Bismark, ND. Homesteaded in 1916, Thaler Land & Livestock in LaGrange, WY, has been active in area conservation efforts since its founder, Joe Matje, worked to establish the South Goshen Conservation District nearly a century ago. Today, the third and fourth generations are represented by Dennis and Sandra Thaler, along with daughter and son-in-law Brandy and Kevin Evans, who together operate the 1,500-head commercial cattle ranch. "Over the years, the Thaler family has been an ambassador of stewardship, reaching out to educate schoolchildren, community groups, government employees, fellow producers, anyone that will listen," noted the ESAP Selection Committee. "They have an open-door ranch, where spreading the message about stewardship is a number one priority." Sponsored by the National Cattlemen's Beef Association (NCBA), Dow AgroSciences and USDA Natural Resources Conservation Service, the ESAP awards are in their 16th year. Nomination forms for the 2007 awards are due March 17. Any organization, group or individual can submit a nomination on behalf of a U.S. cattle producer. To obtain an application, go to www.beefusa.org/esap. -- NCBA news release Back to Top Industry News Bearish On Oil -- Bearish On Corn Prices The recent spike in corn prices may soon turn into a slump, says Michael Swanson, Wells Fargo & Co. economist. He expects oil prices to decline by $5-10/barrel during the next 12-18 months and ethanol profitability and expansion along with it. "To know the ethanol price, you need to know the price of gas," he says. "Right now, wholesale nearby reformulated blend stock gasoline is selling at $1.20-1.30/gal. The blending credit for blending in ethanol is 51¢/gal, so the nearby wholesale ethanol price is selling at $1.71-1.81." The net margin on $1.70/gal. ethanol is very small with $4/bu. corn, emphasizes Swanson. In fact, it's not sustainable for long. He's cautioning U.S. farmers about switching too many acres to corn in 2007. "If we switch a lot of acres into corn, the price of soybeans will go up, and if soybean prices go up to $8-9/bu., Brazilian farmers will be planting a lot more soybeans, and Brazilians can add a lot more soybean acres than we can," he says. Barring any bad weather news in major crop growing areas, however, Swanson says $4/bu. corn won't likely hold for long. Here's a look back at average U.S. corn prices per month since 1996: www.nass.usda.gov/Charts_and_Maps. Although there is a gap in USDA corn price data from 1970-1996, the USDA data on average U.S. corn prices from 1910-1970 is extensive. Here it is: www.nass.usda.gov/Statistics_by_State.pdf. -- John Pocock, Corn eDigest newsletter Back to Top Illustrated "Pasture & Range Plants" Book Available The second edition of "Pasture & Range Plants," revised by Robert Nicholson, Fort Hays State University (FHSU) plant and rangeland ecology expert, is now available. Originally published by Phillips Petroleum in 1963, the updated version is completely revised and includes more than 180, full-page, four-color, digitally remastered illustrations of important species of Great Plains plants, with easy-to-read reference guides. The hardbound copies are $25, with quantity discounts available. Order at www.fhsu.edu/alumni/plantbook.shtml, or contact the FHSU Alumni Association at alumni@fhsu.edu or 888-351-3591. -- Joe Roybal Back to Top New Limousin EPDs Available The North American Limousin foundation (NALF) says EPDs from the spring 2007 International Limousin Genetic Evaluation are available at www.nalf.org.
Back to Top Timber Wolves Off Endangered List In Three States Gray wolves, also known as timber wolves, are off the endangered species list in Minnesota, Wisconsin and Michigan the federal government announced this week. Granted protection in 1974 when their numbers in the protected areas were only a few hundred, today there are 3,020 wolves in Minnesota, 460 in Wisconsin, and 430 in upper Michigan. Another 30 live in Lake Superior's Isle Royale National Park. With the de-listing, the U.S. Fish and Wildlife Service and the Interior Department will transfer oversight to the states. Barring legal challenges, the transfer will take place 30 days after publication in the Federal Register. The agencies also proposed removing the northern Rocky Mountain population of gray wolves from the list, with removal of the bald eagle from the endangered species list expected next month. -- Joe Roybal Back to Top Voters Show Strong Support For Ethanol The Renewable Fuels Association released a poll recently showing 85% of U.S. voters believe the "government should be involved in the development of alternative fuels." Other findings of the Jan. 8-9 survey of 1,000 registered voters conducted by the Winston Group include:
-- P. Scott Shearer, Washington, D.C., correspondent Back to Top ADVERTISEMENT  This year Camp Cooley Ranch celebrates 20 years of ultrasound performance in our Brangus herd. From this work results some of the most powerful, performance proven Brangus, Angus and Charolais bulls to ever sell at Camp Cooley. Your search for Quality in Volume begins and ends at Camp Cooley Ranch. Give us a call or stop by for a visit! www.campcooley.com 1-800-251-0305 Government Downer Animals Legislation is Back Sen. Daniel Akaka (D-HI) and Rep. Gary Ackerman (D-NY) introduced the "Downed Animal and Food Safety Protection Act of 2007," which would prohibit "downed" animals from the food supply. Regarding S. 394 and H.R. 681, Ackerman said, "For years, the cattle industry and those who represent them have foolishly put profit ahead of public health and wound up jeopardizing both." The legislation would require the "humane euthanasia" of nonambulatory animals, prohibit the movement of conscious nonambulatory animals, make it unlawful for an inspector to pass any nonambulatory livestock or carcass, and require that nonambulatory animals be labeled, marked, stamped or tagged as "inspected and condemned." Similar legislation was introduced last Congress. -- P. Scott Shearer, Washington, D.C., correspondent Back to Top Earlier COOL Implementation Proposed In Senate Sen. Craig Thomas (R-WY) has introduced S. 404, the "Country of Origin Labeling (COOL) Act of 2007," which would move implementation of COOL to Sept. 30, 2007. It's currently scheduled to go into effect September 2008. -- P. Scott Shearer, Washington, D.C., correspondent Back to Top House Ag Subcommittees Named The House Ag Committee organized this week and named subcommittees for the 109th Congress.
Back to Top Johanns Presents New Farm Bill Proposal USDA Secretary Mike Johanns unveiled USDA's 2007 farm bill proposal this week, which includes more than 65 recommendations. Johanns indicated the proposal was more market-oriented and equitable as it deals with commodities. He said the proposal would spend $10 billion less than the 2002 farm bill over the past five years, excluding ad-hoc disaster aid. Some key highlights include: Commodities:
-- P. Scott Shearer, Washington, D.C., correspondent Back to Top ADVERTISEMENT Fresh water on demand, 24 hours a day. Ritchie manufactures a complete line of livestock watering products with the highest specifications in the industry. Ritchie fountains are available in stainless steel, heavy-duty poly or both and backed by a 10 year limited warranty. Contact us at 800-747-0222. www.ritchiefount.com  Beef Quality CAB's New Uniformity Rules Now In Effect Packing plants licensed to produce the Certified Angus Beef ® (CAB) brand began using new, 10-part carcass specs. Among them are three new uniformity specs approved by USDA -- ribeye area of 10-16 sq. in., hot carcass weight less than 1,000 lbs., and external fat thickness less than 1 in. -- the three main variables loosely governed by yield grade (YG). "Our original limit of YG 3.9 allowed too many outliers," says CAB president John Stika. The new specifications will turn aside an estimated 6.9% of cattle that would have been accepted for the brand in the past. "The new specifications will help remove some extreme sizing variables," said Mike Drury, Newport Meat Co. senior VP, Irvine, CA. "It is a step CAB had to take to continue delivering the most consistently superior product." The new specs indicate: "Carcasses shall be derived from cattle that meet the phenotypic or genotypic (AngusSource®) requirements of the USDA Specification for Characteristics of Cattle Eligible for Approved Beef Programs Claiming Angus Influence (GLA), and meet the following set of requirements:
-- CAB news release Back to Top Tips for Profit February Issue BEEF Content Available Online The editorial content of the February issue of BEEF is now available at www.beef-mag.com. Read farm-business management expert Harlan Hughes' third installment in his on-ranch accounting series. Meanwhile, Wes Ishmael's article, "Mating with a Guarantee" details how the future may finally be here for DNA-based diagnostic tools. The article also includes a comparison chart of 12 commercial DNA diagnostic products, detailing what traits the tests measure, the types of samples used, how results are reported, the cost and the turnaround time for results. In addition, there are other articles on a practical composite breeding system employed by Spade Ranches that optimizes heterosis in herds of any size, strategic supplementation strategies, and finding calves persistently infected with bovine viral diarrhea. -- Joe Roybal Back to Top Harsh Weather Effects May Linger On Cattle While this winter's harsh weather will subside, its effect on Plains-area cattle herds will linger in "secondary losses" -- weak calves at birth, cows in poorer condition than usual at calving, and rebreeding problems. Kansas State University DVM Larry Hollis says much will depend on how long storm cattle went without feed, which drains body reserves. With cows already stressed and lacking condition, a cold snap can sometimes spark spontaneous abortions -- usually within 48 hours of the drop in temperatures, Hollis says. "The key to keep that from happening is to feed well and start getting body condition back where it should be," Hollis says. He expects poor condition in cows at calving to precipitate more neonatal death loss in some herds. "It might help to get calves in a warming box if the lack of calf vigor is due to the cold. And this year, it may be especially important to give cows a warmer, dry place to calve," he says. This winter's effects could last until breeding time, he says, with more non-cycling cows. "Don't look at the hair -- look at the cow. Try to determine what she needs to make sure she's in the best condition at breeding time as possible," Hollis says. For more on winter feeding, body condition scoring, and neonatal calf care, visit www.beefcowcalf.com. The free BEEF magazine-sponsored Web site offers more than links to more than 2,000 fact sheets and research papers on hundreds of cow-calf production and management topics. -- Kansas State University news release Back to Top Rural Entrepreneurship Conference Slated For Feb. 28 "Opening Doors to Rural Success," is set for Feb. 28 in Kearney, NE. Set for the Ramada Inn, the conference will focus on building jobs and the rural economy from within and will offer training, networking, and professional development opportunities for startup and existing small businesses, rural communities, and family farmers and ranchers. In addition to allowing prospective entrepreneurs to network with experts and ask questions, the meeting will feature 30-40 teaching tracts covering such topics as writing business plans and marketing your business. Other sessions will focus on ag entrepreneurship, youth entrepreneurship, community development, and rural issues and policy. For more info, contact Kathie Starkweather at 402-687-2103, ext. 1014, kathies@cfra.org or visit www.marketplacenebraska.org. -- Joe Roybal Back to Top Industry Meetings Huskers Plan Feb. 19 Beef Cow Nutrition Meeting Feeding ethanol byproducts is the aim of a beef cow nutrition meeting Feb. 19 at the Prim Town Pub in Primrose, NE. Starting at 5:30 p.m., the program includes: utilizing corn co-products in beef rations, ration evaluation, impact of corn co-products on quality grade, mineral Nutrition and ethanol production. An evening meal is included for those registering by Feb. 15. Call Boone County Extension at 402-395-2158, or Nance County at 308-536-2691. -- Joe Roybal Back to Top ADVERTISEMENT
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