Archive for the ‘Agriculture News 09’ Category

In The Cattle Markets: Feedlots Continue To Fill Up

Wednesday, December 2nd, 2009

USDAs Cattle on Feed report released two Fridays ago indicated higher numbers of cattle on feed, in feedlots with capacity of 1,000 head or more, for the second straight month.

The 11,134 million head on feed was 1.5 percent higher than last year and over 6 percent above last month. The trade was expecting a 1.6 percent increase from last year, so the report was viewed as neutral to slightly positive for prices.

October placements at 2.474 million head were 1.5 percent more than last year, but under the 2.6 percent average of analysts’ pre-report estimates. Furthermore, October 2008 was a low placement month by historic standards at over 10 percent below 2007. So, although higher in 2009, placements were still nearly 8 percent below the 2003-2007 average, as calf crops continue to trend lower. Placements weighing over 700 pounds were up over 8 percent from last year, while the under 700 pound category was down 4.2 percent. One of the reasons for placements of heavier weights is the much improved pasture and range conditions in much of the U.S. that allowed yearlings on grass to gain well and reach market weight and the lighter calves to remain on ranges with cows. For example, early fall calf marketings in North Dakota have averaged 75 percent of last year’s levels.

Marketings in October came in at 96.7 percent of last year compared to pre-report estimates of 97.1 percent. Interestingly, South Dakota showed a 26 percent increase, followed by Iowa at 108 percent, and Nebraska at 101 percent reflecting the larger number of heavyweight cattle that were in Northern Plains feedlots. Both Texas and Kansas recorded marketings at 94 percent of a year ago.

Although there are more cattle on feed than last year, beef supplies should not be burdensome. Beef production in the 1st quarter of 2010 will likely be near year earlier levels according to LMIC estimates, and decline about 3 percent in the second quarter. And the number of cattle on feed is still about 3 percent below the 2003-2007 average.

Fed cattle prices will continue to be affected by domestic and export demand factors. Although some macro economists have declared that the recession is over, unemployment remains high and restaurant business continues to struggle. And, third quarter beef exports were down about 19 percent from last year.

The Markets

Fed cattle prices moved lower for the third straight week. Trading and demand in the North was light on Tuesday, with moderate trading on Wednesday, followed by light trading and demand again on Thursday. Trading was moderate in the Southern Plains on Thursday with light to moderate demand. The 5-area fed steer price was down almost a dollar at $82.77 on a liveweight basis and down over a dollar at $130.05 on a dressed basis. The Choice boxed beef price increased 16 cents to $140.10, while Select declined $1.63 so the Choice-Select spread increased to $7.83.

Feeder cattle prices last week were mixed and affected by local conditions. The CME January feeder cattle futures contract fell to life of contract lows in mid-week as December corn futures again rallied above $4 per bushel. By the end of the week feeder cattle futures recovered a $1 as corn lost a dime. 700-800 pound feeder steers were lower in Oklahoma and Montana. The 7-8 weights in Montana were all spring born calves. Steers in Nebraska averaged about $4 higher with moderate to very good demand from feedlot buyers. 500-600 pound steer calves were also down slightly in Oklahoma and Montana, but averaged about a dollar higher in Nebraska.

Corn prices in Omaha on Thursday were unchanged from the previous week. Prices for DDGS in Nebraska declined 50 cents per ton while WDGS prices advanced $1.50.

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com

NCBA Opposes House Proposal To Extend Current Estate Tax Law

Wednesday, December 2nd, 2009

 The National Cattlemen’s Beef Association (NCBA) is extremely disappointed that Congress has ignored repeated calls for estate tax (“death tax”) reform. The House Rules Committee announced today that H.R. 4154 by Rep. Earl Pomeroy (D-ND) will be considered under a closed rule. The Pomeroy bill would permanently extend the death tax at 2009 levels, without indexing for inflation.

 “The Pomeroy bill is a disservice to America’s family farmers and other small businesses,” said NCBA President Gary Voogt. “By keeping a flawed law in place, Congress will simply extend our problems with the current system into the future.”

According to the U.S. Department of Agriculture’s (USDA) Economic Research Service (ERS), farm estates are 5-20 times more likely to incur estate taxes than other estates. In fact, according to ERS estimates, one in ten farm estates (farms with sales of $250,000 or more annually) are likely to owe estate taxes in 2009. Farmers and ranchers are often forced to sell off land, equipment, or even the entire ranch just to pay off tax liabilities. This is money that could otherwise be re-invested to grow the family business and hand it down to future generations.

 “This is not a tax on the ‘wealthy elite’,” Voogt continued. “It is a huge burden—and in some cases, a death sentence—on family farms and small businesses.”

Most cattle producers have businesses that have been passed down through the generations for more than 50 years, and 15 percent of producers have operations that have been in the family for more than 100 years. Most of the time, these assets have already faced taxes two or three times over the course of a lifetime.

 “Taxing America’s farmers and ranchers out of business will impact all Americans,” Voogt continued. “Not only do our family farmers play a critical role in feeding the world’s growing population and American families right here at home, they also help preserve our nation’s treasured open space and environmental resources.”

NCBA continues to support a dual-track approach for death tax reform, including additional relief and an overall exemption for agriculture. Both types of reform are critical.

 “A simple extension of current law is unacceptable,” said Voogt. “America’s farmers and ranchers deserve more than the status quo; they deserve true reform.”

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com

U.S. Cattlemen’s Association Members Complete Capitol Hill Fly-In

Monday, November 23rd, 2009

U.S. Cattlemen’s Association (USCA) representatives were in Washington, DC during the first week of November to share cattle producers’ concerns with policy-makers on a number of cattle industry issues with a primary focus on the country of origin labeling (COOL) challenge under the World Trade Organization (WTO).

Led by USCA President Jon Wooster, San Lucas, CA and USCA Director Emeritus Leo McDonnell, Columbus, MT, the group met with representatives of the U.S. Senate Finance Committee’s trade staff, the U.S. Trade Representative’s (USTR) office and U.S. House Ways and Means Committee Trade Subcommittee staff members among others.

“As the COOL challenge progresses through the WTO process we want to make certain the cattle industry is positioned with trade representatives to ensure a vigorous defense of the law,” stated McDonnell. “These meetings were important in that they help officials better understand how our industry operates as well as sharing information that will be important throughout the WTO challenge. The message delivered was a strong one that outlines USCA’s expectations and willingness to serve as a resource in the case. USCA members have a great deal of expertise on international trade issues and as this case unfolds we want to be sure that every measure is taken to protect and preserve our right to label our product domestically.”

USCA representatives also met with J. Dudley Butler, Administrator of the U.S. Department of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration (GIPSA). “J. Dudley Butler’s appointment to lead GIPSA ushers in a new era at the agency,” commented Wooster. “Market competition and monopolization are promised to be closely scrutinized under his administration with special attention on enforcement of antitrust laws and the upcoming joint GIPSA-DOJ workshops will add greatly to this. This was a very encouraging meeting. We’re very fortunate to have someone with his experience and expertise appointed to this position and USCA looks forward to a close working relationship with Administrator Butler.”

During a meeting with Dr. Matt Messenger of the National Center for Animal Health Programs, USCA representatives discussed ongoing issues with Texas fever tick eradication. Chuck Kiker, USCA Region V Director, Beaumont, TX said certain regions in Texas along the Mexico border still suffer from substantial fever tick issues and that the overview of the issue presented during the meeting was encouraging. “It’s quite possible that a new vaccine will emerge in the U.S. to help eradicate fever ticks. The vaccine is already in use in Mexico and the results are successful. U.S. animal health officials are working closely with the Food and Drug Administration to win approval to use this new vaccine in the U.S.,” noted Kiker.

Defending the COOL WTO case, increasing U.S. beef access to foreign markets, along with clarifications on the follow up and implementation of federal programs regarding Hurricane Ike and drought across the Southwest, were topics of discussion during the meeting with USDA Farm and Foreign Agriculture Services (FAS) officials and Under Secretary Jim Miller. “USDA FAS has its plate full handling several critical issues for U.S. cattle producers,” noted Chuck Kiker. “We are pleased and impressed with their continuing commitment to make progress on all of these issues. Hurricane Ike and the drought caused massive problems in Texas. The implementation of relief programs will ensure that livestock producers across the nationa will be able to continue their operations and overcome the devastating effects of disasters,” remarked Kiker.

USCA officials also met with USDA’s Agriculture Marketing Service (AMS) staff regarding the national mandatory beef checkoff. “This meeting was very informative,” said Wooster. “There is no doubt that Senator Jon Tester’s (D-MT) bill to modernize the beef checkoff will be instrumental in reforming the Beef Act. This measure will enhance the decades old Beef Act. It is imperative that producers engage in the process by asking their U.S. Senators to sign on as co-sponsors of Senator Tester’s legislation.”

Wooster explained that the group also participated in discussions with administrators of the National Animal Identification System (NAIS), a hot-button issue for cattle producers.

“The Secretary of Agriculture has indicated that he will be announcing his plans for a redirection of animal identification and we await that announcement. It is clear that the animal identification issue is not dead,” warned Wooster. “Despite the fact that NAIS funding was drastically slashed in the most recent Congressional spending bill, a considerable cash reserve remains at USDA that can be used to develop an animal identification system for disease mitigation programs and to initiate some type of trace-back for disease outbreaks. This cash reserve, estimated in the millions, is the result of groups failing to meet prescribed benchmarks in their grants to promote premise registrations. As a result of those failures, grant funds were withheld and remain at the disposal of USDA. There is also a concern that a mandatory identification proposal may come up based on the identification systems used in the tuberculosis and brucellosis programs for interstate shipment of cattle.”

Wooster continued, “Animal health officials are having an increasingly difficult time tracing animal disease outbreaks due to the phasing-out of historically successful animal health programs like the programs for tuberculosis and brucellosis, and due to reducing the number of cattle being identified with an official ear tag. These are serious issues that will require the engagement of cattle producers across the country.”

USCA members received an update from USDA’s Dr. Freeda Isaac and Dr. Alecia Naugle concerning Canadian cattle imported into the U.S. for a feedlot destination in Washington State. The cattle entered the U.S. earlier this year but were turned out onto a forest grazing permit, a violation of import requirements. “We learned that of the 385 head involved all but four have been gathered and tested and that the four remaining head are believed to be dead,” explained Wooster. “All of the cattle gathered tested negative for tuberculosis. We appreciate USDA’s aggressive actions with this matter. Officials indicated that enforcement actions and remedies are ongoing and they are taking these violations very seriously.”

Meetings were also held on several current and forthcoming international trade issues. There was emphasis that cattle and beef need to be included under the special rules required for perishable and cyclical agricultural products as has been done in some of the trade agreements passed under the last Congress.

“I want to thank the U.S. Cattlemen’s Association members and supporters who participated in this fly-in,” said Wooster. In addition to Wooster, McDonnell and Kiker, Brian Malaer, Harwood, TX, Hollis “Peanut” Gilfillian, Stowell, TX and Jess Peterson, Washington, DC also attended.

“I also want to thank the Obama Administration officials, agency staff, and the Congressional staff who took the time to meet with the USCA delegation,” noted Wooster. “These meetings were extremely productive and we greatly appreciate the time and information provided in the meetings.”

“In a short period of time USCA has established itself as a respected voice for cattle producers on Capitol Hill,” continued Wooster. “This is the fourth fly-in in which USCA has led a delegation of U.S. cattle producers to Washington, DC. We have achieved a level of access that is unprecedented. Our approach is one of having a full-time representative for the industry in Washington, DC supported by regular visits from producers themselves. I encourage every rancher to get involved with USCA and become part of shaping the future of our industry.”

Established in March 2007, USCA is committed to concentrating its efforts in Washington, DC to enhance and expand the cattle industry’s voice on Capitol Hill. USCA has a full-time presence in Washington, giving cattle producers across the country a strong influence on policy development.

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com