Editor's Note: Thank you, Prime Cuts Readers
Thank you to all the loyal readers of Prime Cuts who let me know we were experiencing technical difficulties when Prime Cuts was sent earlier this afternoon. I appreciate your feedback and we are working to correct the problem. I apologize for any inconveniences this may have caused. Thank you again for your interest in the Prime Cuts newsletter and your support of the Missouri Cattlemen's Association.
Sen. Talent Urges Senate Passage of Emergency Disaster Assistance for Producers
U.S. Senator Jim Talent (R-Mo.) today joined a bipartisan group of Senators to urge passage of the Emergency Disaster Assistance Act. Sen. Talent is a lead cosponsor of the disaster aid package introduced by U.S. Senator Kent Conrad (D-N.D.), which will provide production loss and economic assistance to agricultural producers for losses incurred during the 2005 and 2006 production year.
"For years, Missouri’s farmers and ranchers have had to cope with devastating drought conditions," said Sen. Talent, a member of the Senate Agriculture Committee. "A severe drought is a natural disaster that hurts our farmers, jobs and the health of our state’s economy. For example, a reduction of one bushel per acre in soybean production reduces Missouri net farm income by about $25 million. A similar per-acre reduction in corn production results in a $5 million decrease. This assistance is vital to our farmers and ranchers and I’m optimistic the Senate will move quickly to approve this legislation."
The disaster aid package combines legislation previously introduced to support ranchers and farmers impacted by drought in the 2005 growing season with emergency legislation to aid producers suffering from the 2006 drought. During the news conference, the Senators pointed out that this legislation is comprehensive and national in scope, covering hurricanes, drought, flood, disease and other weather related disasters.
Sen. Talent said this legislation is critical for drought-plagued states, like Missouri. Without sufficient rain in 2005 and 2006, the crop and livestock situation in Missouri is serious. Missouri producers also incurred additional livestock losses and production hardship, such as feed shortages. Over 62 percent of Missouri’s pastures are rated poor to very poor. Fall pasture growth has been minimal, especially in Southwest Missouri and livestock water supplies are critically short for the second year in a row. - The office of Senator Jim Talent
Message to Washington: Drought Assistance an Urgent Priority
by Mike John, President, National Cattlemen’s Beef Association
Cattlemen take great pride in their independent nature and the fact that our industry operates largely free of government subsidies and intervention. That’s a philosophy that NCBA members embrace with honor, even under the most difficult circumstances. But when Mother Nature wreaks havoc on the pasture and range that are the very foundation of our industry, disaster assistance can help avert herd liquidations and get thousands of livestock producers through a crisis.
Of the many weather-related disasters that challenge cattlemen, drought may be the most frustrating - and least understood by those outside or agriculture. Drought doesn’t often lead the evening news. It won’t usually make for must-see TV footage or banner newspaper headlines. Instead, drought inflicts its pain on farmers and ranchers over an extended period of time. And while recent rainfall and cooler temperatures are a very welcome sight in many regions of the country, they don’t mean the drought has ended – not by a long shot.
The cattle cycle, along with solid cattle prices, tells us that we should be in the midst of a strong herd expansion. But the drought has made herd growth sluggish at best nationwide, and absolutely unthinkable in some regions.
U.S. Agriculture Secretary Mike Johanns recently announced the new Livestock Assistance Grant Program, which will direct $50 million to states in the form of block grants. States will distribute these grants to livestock producers in counties designated as D3 or D4 on the U.S. Drought Monitor during the past six months.
Money is hard to come by in Washington, D.C., these days and the block grant concept is an innovative approach. But unfortunately, it will not provide adequate relief to our nation’s farmers and ranchers. More significant relief will come only on the heels of Congressional action. For that reason, producers must focus their sights on communicating the importance of drought and disaster assistance to their members of Congress.
Legislative steps have been taken toward providing disaster relief, including a $4 billion amendment to the Senate version of the Ag Appropriations bill. Most recently, S. 3860 and S.3855 were introduced by Senators Conrad Burns (R-Mont.) and Kent Conrad (D-N.D.), respectively. Each of these options would aid livestock producers by providing funds to reinstate the Livestock Compensation Program and the Livestock Indemnity Program for producers that have lost livestock as a result of natural disasters. The fiscal climate is very different now than it was when drought relief was last secured, and it will take a concerted effort for this relief to survive the entire legislative budget process. If you haven’t already contacted your representatives in Congress to tell them how important this funding is, please do so today. Sitting on the sidelines is not an option – your voice is needed if we are going to secure adequate disaster relief this year.
NCBA has been pressing for relief on other fronts as well Due in part to aggressive NCBA lobbying efforts, legislation was passed in 2003 allowing livestock producers an extended period of time to replace animals they were forced to liquidate due to severe drought before incurring income tax liability for the animals sold.
But some producers have dealt with enduring drought throughout this decade, and a further extension of this provision was needed in order for them to rebuild their herds at an acceptable time – not when they face severe shortages of hay and grazing ground for the cattle they have managed to keep. NCBA worked hand-in-hand with members of Congress to call for this alteration, and the Internal Revenue Service recently announced that farmers and ranchers affected by exceptional, extreme or severe drought conditions have been granted additional time to replace livestock they were forced to sell.
However, beef producers still attempting to maintain their herds have no insurance or federal program to rely on for assistance in these difficult circumstances. Crop insurance, complete with a significant federal subsidy, is available for many crops to insure against drought, fire, and other losses. But no such program exists for beef producers at large.
The Risk Management Agency recently announced two new pilot Group Risk Protection options for livestock producers to insure pasture, rangeland, and forage against losses due to drought. The announcement of these pilot programs is encouraging, and it is important that our industry continue to work toward the establishment of viable and effective insurance options for beef producers. But the fact remains that these programs will do nothing to help the producers currently suffering from the effects of drought.
When farmers and ranchers can stay afloat and maintain their foundation cow herd, they can continue to provide jobs, tax revenue and economic vitality for rural America. But without assistance, recovery can take many, many years for some operations. For others, recovery won’t be possible at all. Cattlemen must work to convince Congress and the Bush Administration of the urgent need for timely and significant disaster assistance. I’m asking for your help today in voicing this message loud and clear to your Congressional representatives.
In closing, I want to raise another point once articulated by the late Hubert Humphrey, who said, “The impersonal hand of government can never replace the helping hand of a neighbor.”
One of the most proud traditions within NCBA and the cattle industry is cattlemen helping cattlemen, neighbors helping neighbors. If you are fortunate enough to be in a position to donate hay, supplies, or financial assistance to your fellow cattlemen that have recently been hit hard by drought, wildfires and other weather-related disasters, please consider doing so. By pulling together, we can help keep our industry strong. You can learn more by calling NCBA at 303-694-0305, visiting www.beefusa.org, or contacting your state cattlemen’s association.
Mike John is a cattleman from Huntsville, Missouri, and president of the National Cattlemen’s Beef Association. - NCBA
Industry-Wide Beef Checkoff Task Force Makes Enhancement Recommendations
The Industry-Wide Beef Checkoff Task Force has developed four recommendations for strengthening the Beef Checkoff program, providing more stakeholder input and making it more inclusive. Conclusions of the 18-member group were reached following extensive fact finding and discussion, and finalized at a meeting in Kansas City, Mo., Sept. 7.
The mission of the Task Force was “To review, study and recommend enhancements to the Beef Promotion and Research Act and Order for the purpose of strengthening the Checkoff for the common good of the beef industry.” The group met three times this summer to discuss various possible changes to the Checkoff and their implications.
The recommendations are:
An opportunity to petition for a referendum. The beef referendum process be revised to provide producers the opportunity to petition every five years for a referendum on continuing the Checkoff. Ten percent of beef producers signing the petition at county offices will trigger the USDA to conduct a vote within a year. This is similar to the Soybean referendum model.
An adjustment of the checkoff rate. To assure strong demand-building initiatives for the beef industry in the future and to offset twenty years of inflation, adjust the per head checkoff rate to $2.00. The 50-50 split between State Beef Councils and Beef Board would remain the same. The industry will need to approve any checkoff rate change through a referendum.
Enhanced understanding of the Federation of State Beef Councils. The Federation of State Beef Councils gives priority to enhancing its identity in order to strengthen beef industry stakeholder understanding of the Federation. Options such as changing its name from The Federation Division to The Beef Checkoff Federation could be considered.
Making the checkoff more inclusive. Any reference to the charter date of established national non-profit industry governed organizations be eliminated from definition (1260.113c) in the Beef Promotion and Research Order. This will make the checkoff program more inclusive.
The four recommendations were passed by at least a super-majority (two-thirds) of the Task Force, not all were supported unanimously. These recommendations will now be presented to national and state beef organizations, which will consider them as they develop future policy regarding the Checkoff.
Members of the Industry-Wide Task Force were: Jamie Willrett, Co-Chair, National Cattlemen’s Beef Association; Scott VanderWal, Co-Chair, American Farm Bureau Federation; Charles Beckendorf, National Milk Producers Federation; Tracy Brunner, Kansas Representative; Virginia Coelho, California Representative; Terry Detrick, National Farmers Union; Mark Dopp, American Meat Institute; Jim Hanna, R-CALF USA; Bob Hanson, Montana Representative; Jack Hanson, National Livestock Producers Association; John Hendricks, Kentucky Representative; Steve Kraut, American Veal Association; Steve Owens, Livestock Marketing Council; Gayland Pedhirney, National Meat Association; Billy Perrin, Livestock Marketing Association; C.R. “Dick” Sherron, Texas Representative; Donald Stewart, Meat Importers Council of America; and Stephen Worley, Tennessee Representative.
Cattle Producers Applaud the Re-opening of the South Korean Market to U.S. Beef
Cattle producers in Missouri and across the country were pleased to receive news on September 8, 2006, of the long-awaited re-opening of the South Korean market to U.S. beef.
According to the National Cattlemen’s Beef Association, the governments of South Korea and the United States reached an initial agreement regarding import protocol on January 13, 2006, but since that time, Korean officials have delayed the actual re-opening by requesting additional meetings, reports and investigative tours.
After a final tour of our U.S. processing facilities, Korea has agreed to accept boneless beef from cattle younger than 30 months. This agreement is a small step toward fully normalizing beef trade with South Korea.
“Bone-in beef and variety meats historically accounted for roughly half of the total value of U.S. beef exports to South Korea,” said Gregg Doud, Chief Economist for NCBA. “A continued ban on these top-selling products in Korea is unacceptable.”
“The U.S. food safety system is second to none. Our beef is valued by American and international consumers alike for being safe, delicious, nutritious and affordable,” Doud continued.
“As we continue negotiations with South Korea on a Free Trade Agreement, we will insist on science-based trading principles.” Doud concluded, “A Free Trade Agreement with South Korea presents a lucrative opportunity for America’s cattlemen, but Korea’s continued ban on many of our most popular beef products must be lifted in order for this agreement to proceed.”
For more information on beef trade issues, contact the National Cattlemen’s Beef Association at (202) 347-0228 or visit www.beefusa.org or http://hill.beef.org/.
American
Horse Slaughter Prevention Act Passes House
Over the objection of meat groups and USDA, the House of Representatives
overwhelmingly passed H.R. 503, "The American Horse Slaughter Prevention Act,"
Thursday. The legislation, which prohibits the shipping, transporting, moving,
delivering, receiving, possessing, purchasing, selling or donation of horses and
other equines to be slaughtered for human consumption, passed by a vote of 263
to 146. The measure now moves on to the Senate, where Senators John Ensign
(R-NV), a veterinarian, and Mary Landrieu (D-LA) have reintroduced an identical
measure (S. 1915).
The new law effectively would shut down three foreign-owned plants that annually
process about 40 million lbs. of horsemeat for human consumption, mostly to
Europe and Japan. The three plants include Dallas Crown in Kaufman, TX; Beltex
Corp. in Fort Worth; and Cavel International in DeKalb, IL.
With no financial provision for care of these animals included in the
legislation, tens of thousands of unwanted horses presumably will be placed in
unregulated horse adoption facilities or abandoned. Lawmakers approved the bill
despite a recommendation from the House Ag Committee that no action be taken on
it, and despite the Energy and Commerce Committee discharging the measure
without a recommendation. The amendment failed on a 177-229 vote.
USDA says 65,976 horses were harvested in the U.S. in 2004, and 91,757 in 2005.
The American Association of Equine Practitioners estimates basic subsistence
care for an additional 70,000 horses annually would cost $1,825/horse/year.
That's just the first year. Then there are the subsequent years of care, and
that for the millions to later join them.
In fact, 32,000 wild horses and burros (many of them more than 10 years old)
currently are being maintained in pens by the Bureau of Land Management at an
annual cost to taxpayers of $160 million/year.
A recent analysis, "The Unintended Consequences of a Ban on the Humane Slaughter
(Processing) of Horses in the U.S.," found a ban on horse processing would
actually do more harm to horse welfare in this country. Commissioned by the
Animal Welfare Council (www.animalwelfarecouncil.org),
the study by nine university researchers found a horse-processing ban would
devastate the horse market by devaluing horses as much as $304/horse.
In a Sept. 6 letter, USDA Secretary Mike Johanns wrote to the House of
Representatives' Committee on Ag listing reasons why the agency opposed H.R.
503. Among them were:
Cattle-Fax Market Update
Yesterday (September 13) – Live cattle futures fell sharply lower on Wednesday with October down $1.77 at $90.32 and December down $1.42 at $90.45. The largest losses were on the nearby contracts with the back months losing $0.20-0.70. Feeder futures followed live cattle lower with September down $1.02 at $117.85 and October down $1.30 at $116.75. Fed cattle trade remained quiet as the board was sharply lower and packers own cattle into Thursday and Friday. Asking prices were unchanged at $93 to $94 live and $148 or better dressed. Bids ranged from $86 to $88 live and up to $139 dressed. Boxed beef values were sharply lower with heavy offerings weighing on prices after a few days of slow movement. Choice was $1.94 lower at $147.27 and Select was $1.76 lower at $137.84. Movement picked up to nearly 500 loads at the reduced prices. Corn futures opened lower on spillover weakness from Tuesday before buyers stepped in to rally prices nearly $0.03 by midday, then ended on both sides of unchanged at the close.
Last Week – Fed cattle trade was quiet throughout the week and failed to develop prior to press time. Precipitation in the southwest portion of the Southern Plains and up through the northwestern portion of the Northern Plains in the last week boosted optimism about this years wheat crop and grazing situation. The feeder cattle market worked higher with gains of $1 to $2 for the week. Calf prices ranged from steady to $2 higher. Market cow prices were steady to as much as $2 higher. The Choice cut-out price ended $3.09 higher at $148.37 and Select ended $2.73 higher at $138.12 on active volume and decreased production for the week -To join Cattle-Fax, call (800) 825-7525
Missouri Cattlemen’s Update
Welcome Fall Intern – Mariah Yates
The Missouri Cattlemen’s Association is pleased to announce Mariah Yates as the Fall 2006 Intern. Yates, a native of Monroe City, Missouri, recently began her senior year at the University of Missouri, where she is an Agricultural Education Leadership and Communication major. At Mizzou, Mariah is involved in the Ag Ed Society, Alpha Tau Alpha Honor Fraternity, and serves as the Vice President of the CAFNR Student Council. She is also an AFA Scholarship winner and Conference attendee. Mariah’s 4-H and FFA projects included cattle and sheep. She is part owner and operator of Yates Family Mums, and has also been employed at a Christmas tree farm. Mariah is the daughter of Steve and JoLynn Yates. Steve is an Ag Teacher and JoLynn an elementary reading teacher. Mariah has two older sisters, Stephanie (and brother-in-law Curtis) and Nancy, and a younger brother, Cary.
Mariah will work on a variety of projects this fall, including convention, junior programs, and membership. We are excited to have Mariah working for MCA. Welcome aboard, Mariah!
Arrest
Made in Cattle Theft Investigation
Colonel James F. Keathley, superintendent of the Missouri State
Highway Patrol, announces the arrest of Anthony A. Smith, 34, of Newburg, MO.
Smith was arrested in rural Phelps County on September 11, 2006, for
stealing-related charges stemming from a cattle theft investigation that began
in May 2006 in Cooper County. Smith is currently being held in the Cooper County
Jail.
The Governor’s Cattle Theft Task Force spearheaded the investigation, which
resulted in the recovery of 37 head of stolen cattle from a Phelps County farm.
The estimated value of the animals exceeds $45,000. Efforts are being made to
return the cattle to the original owner.
Corporal Steve Crain, Missouri State Water Patrol; Sergeant Mike Rogers and
Corporal David Mease, Missouri State Highway Patrol; and deputies with the
Cooper County Sheriff’s Office continue to investigate. It is expected that
additional cattle will be recovered in the near future. The success of this
investigation can be attributed to the collective effort and cooperation between
law enforcement agencies and the Missouri cattle industry.
The above charges for which Smith was arrested are mere accusations and are not
evidence of guilt. Evidence in support of the charges must be presented before a
court of competent jurisdiction whose duty is to determine guilt or innocence.
- Missouri State Highway Patrol
Agricultural Scholarships Available; Deadlines Rapidly Approaching
Missouri’s Cattlemen Foundation Scholarships
The Missouri’s Cattlemen Foundation is again offering $1,000 to high school seniors and current college students. Last year 20 scholarships were awarded. Applicants must be nominated by a current Missouri Cattlemen’s Association member. Previous recipients are ineligible to re-apply.
Applications are available from each Missouri Extension office and FFA chapter; most state colleges and universities; county cattlemen’s association presidents and state directors; or the MCF office. Applications must be in the MCF office or postmarked by September 30 to qualify.
The application is also available for computer completion at:
http://mocattle.com/MCF/foundationscholarship.htm.
National Cattlemen’s Foundation/Chicago Mercantile Exchange Scholarships
Applications are being accepted for the 2007 Beef Industry Scholarship Program, sponsored by the National Cattlemen’s Foundation (NCF) and the Chicago Mercantile Exchange (CME). All entries must be postmarked by October 10, 2006.
Twenty scholarships of $1,500 each will be awarded to young people pursuing careers in the beef industry. The program welcomes applications from talented and thoughtful students who have demonstrated a commitment to a career in the beef industry, either through classes, internships or life experience. Graduating high school seniors or full-time undergraduate students enrolled at a two-year or four-year college for the 2006-2007 academic school year are encouraged to apply.
Applications must include a 750-word essay that identifies a key issue confronting the beef industry and suggests a solution. Applicants must also submit a letter expressing future career goals, and two letters of recommendation. A full description the scholarship program and submission requirements can be found at the National Cattlemen’s Foundation website: www.nationalcattlemensfoundation.org/scholarship.aspx , or by calling 303-850-3388.
In addition to a scholarship, the first-place winner will receive airfare and lodging to attend the Cattle Industry Annual Convention and Trade Show in Nashville, Tenn., January 31 – February 3, 2007.
The Beef Industry Scholarship Program is a cooperative effort of the CME and NCF that was launched in 1989 to celebrate the 25th anniversary of the Live Cattle Futures Contract on the Chicago Mercantile Exchange. The CME has been a leader in the live cattle market since 1964, and the Beef Industry Scholarship Program exemplifies CME’s commitment to the beef industry.
Missouri State Fair Youth in Agriculture Scholarships
The Missouri State Fair Youth in Agriculture Scholarship applications are available on line at www.mostatefair.com. Applications must be postmarked by October 15. The scholarships are available to FFA and 4-H high school seniors who have exhibited at the Missouri State Fair.
Beef Producers Invited to Tailgate at Mizzou Football Games
Looking for tickets to the Zimmer Radio Group’s Tailgate for Mizzou Football? FREE pre-game food and drink is a sure hit! We have 50 tickets reserved for beef producers- and are giving away tickets for consumers on the website www.mobeef.org. If you’re interested in having some tailgate tickets (sorry, none for the actual game), please contact Dawn Thurnau at MBIC at dawn@mobeef.com or 573-817-0899 ext. 223. - MBIC
Mizzou Football and MCA Team Up for Outstanding Ticket Discounts
Tickets Available for Games against Ole Miss, Ohio, and Kansas
The Mizzou football team is set to build on its 2005 Independence Bowl Championship and Missouri Cattlemen’s Association members are invited to join in the fun!
The Tigers are teaming up with the MCA to offer significant savings off select regular ticket prices. Members can take advantage of big discounts, for three upcoming games at Faurot Field on the University of Missouri campus in Columbia.
The games will feature the Ohio Bobcats on Saturday, September 23rd and Big 12 rival Kansas on Saturday, November 25th.
Tickets to the Ohio game are only $20. And you can witness the annual Border Showdown with Kansas for just $35 (a savings of $10 per ticket for each game).
There is no limit on the number of tickets you can purchase for each game (subject to availability). For more information or to order by phone call 1-800-CAT PAWS and ask for the Missouri Cattlemen’s Association promotional offer.
This special discount offer is also available online! Simply visit mutigers.com and follow these instructions (internet fees apply);
1. click “Tickets”, located on left hand side
2. click “Buy Tickets Now”
3. click “Promotions”, located on left hand side
4. enter “MCA” as the promotion code and select “go”
Missouri Cattlemen’s Association promotional tickets MUST be purchased in advance of the game date. Tickets will be mailed until 10 days prior to the game date. All orders received inside of 10 days prior to the game will be placed at the Will Call ticket window at Faurot Field in Columbia.
Mid Missouri Cattlemen’s Association plans Feedlot Tour, Chili Cook-off
Feedlot tour - In view of the successful feedlot and packing plant tour the Mid Missouri Cattlemen’s Association enjoyed in March, and by popular request, we have scheduled a 3-day, 2-night trip to Iowa on September 21-23. September 21 we will tour a feedlot located in Macona, Iowa and a Packing House on the 22nd with a cattleman’s dinner that evening. We plan on leaving the Miller County Regional Stockyards at 6:00 a.m. September 21 and will return on the 23rd. We would be happy to have any fellow Cattlemen join us. For reservations or questions, please phone (573) 392-5572 or (573) 636-6700.
Chili Cook-off - On October 21, the Mid Missouri Cattlemen’s Association will host a Men’s Chili Cook-Off. The event will be held at the Miller County Regional Stockyards, with serving from 3:00 – 6:00 p.m. Teams or individuals are welcome. Registration must be made by calling the Stockyards at (573) 392-5572. Entries will be judged and prizes will be awarded. A meal and meeting will follow.
Girls, dust off those cook books - you are invited to bring any baked goods to sell during the cook-off. The winner of the Browning Shotgun raffle will be drawn after the meal; tickets will be available up to the time of drawing from any board member or at the Stockyards.
- Mid Missouri Cattlemen’s Association
Calendar of Events
Sept. 14 Polk County Cattlemen – Smith’s Restaurant, 7:00 p.m.
Sept. 15 St. Clair County Cattlemen – Eagle Ranch, Collins, 6:00 p.m.
Sept. 21 Henry County Cattlemen – Artesian Park Shelter #2, Clinton, 5:30 p.m.
Sept. 21 Johnson County Cattlemen – Johnson County Fairgrounds, 6:30 p.m.
Sept. 21 Morgan County Cattlemen – Mead Angus Farm, Versailles, 7:00 p.m.
Sept. 21 Greene County Cattlemen – Golden Corral North, Springfield, 7:00 p.m.
Sept. 21-23 Mid-Missouri Cattlemen’s Feedlot Tour to Iowa
Sept. 23 MJCA Board of Directors Meeting – MCA Office, 1:00 p.m.
Sept. 25 Benton County Cattlemen – Lincoln High School, 7:00 p.m.
Sept. 27 MCA Board of Directors Meeting – MCA Office, Columbia, 10:00 a.m.
For more cattle industry events, visit www.mocattle.com/calendar.htm
The Fine Print
This newsletter is a publication of the Missouri Cattlemen’s Association. All rights reserved – this newsletter may not be reproduced, in whole or in part, without permission of the Missouri Cattlemen’s Association. Did someone forward this message to you? To subscribe yourself, send an email to cattleinfo@mocattle.com.
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If so, please contact McKenzie Disselhorst at (573) 499-9162 or mckenzie@mocattle.com.