CALIFORNIA CATTLEMEN’S ASSOCIATION ______________ Since 1917
1221 H Street Sacramento CA 95814 (916) 444-0845
NEVER SEEN ANYTHING LIKE THIS by CCA President Mark Lacey
The saying “I’ve been to a holy roller meeting, a windmill greasing and a goat rodeo, and I’ve never seen anything like this,” pretty well sums up what our nation has been through since the first of the year. We‘ve witnessed unprecedented actions on behalf of governments, the collapse of a strong economy, opportunistic and despicable acts by politicians, polarization of a national crisis, a loss of civil liberties and at the same time generous acts of unity and charity. Here at home, one of the impacts that has disappointed me greatly is the cancellation of our tour meetings. The county groups did a great job working with the office to eliminate conflicting dates and it looked like I would be able to make every single meeting. Depending on how long this crisis lasts, hopefully we can reschedule for summer or fall. As of the date of this column, the Cattle Feeders Meeting is likely to be canceled, and the Midyear Meeting will probably be postponed, or held on a very limited basis so we can handle business that needs consideration before convention. As disappointed as I am about the disruption of our schedule, the disruption of the economy and cattle market that inturn causes direct impacts on our members is what gives me the greatest concern. The cattle feeders have experienced substantial losses going back to at least March. Stocker operators, who have been hampered by dry conditions all year coupled with distressed market conditions, have either already sold for a loss, or are standing by to take a pretty serious hit. Last, but not least the cow-calf folks in many parts of the state have also been dealing with drought conditions while trying to anticipate what the calf market could be like this summer and fall. So, the $64,000 question becomes: When in the midst of a (hopefully) once-in-a-generation worldwide crisis, what do we do about it? Well, CCA has been around for over a hundred years, mostly because of the never quit, independent and resilient attitude of cattle ranchers. We have members that grew up in the aftermath of the great depression, World War II, drought and bad markets. I myself am old enough to remember seeing the Western Livestock Journal after Nixon instituted price controls that caused cattle markets to lose half of their value. The joke was that guys tried to give cattle away, but no one would take them unless they paid the freight too. The point is CCA, and our members, have overcome many challenges because of ranchers’ adherence to the ideology of self-reliance (i.e., not relying on the government for the success of our businesses.) So, what are we doing in 2020? Going to the government for help! Now, we all know that we get some help from the government in the form of disaster insurance and conservation programs from time to time. This, 4 California Cattleman May 2020
however, may be the first time we legitimately need and want government aid because, while our markets were still slightly distressed, the unprecedented actions of the federal and state governments completely decapitated the live cattle/feeder markets, and depressed the calf market by at least 15 to 20 percent. So, this time we will gladly accept some help. So, what is CCA doing about it? Within a week of the government announcement we sent a letter to the California congressional delegation asking them to support producers and giving them some detailed suggestions. Next, staff worked closely with NCBA to support passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act that has $9.5 billion for livestock, specialty crops producers, local food systems (farmers markets). It sounds like quite a bit, but it will depend on how aid is distributed. To that end, we formed an ad hoc crisis committee to gather information on estimated lost value on cattle sales since the government intervention, and discussed different ideas for structuring aid payments for each sector including cattle feeding, stocker, calf ranches and cow-calf operations. These ideas were forwarded to NCBA’s working group going through the same process. In addition to payment structure ideas, suggestions were sent regarding tax treatment of aid payments and exempting capital gains on forced sale of livestock related to the crisis and drought, support of the agriculture labor force, transportation regulations and the availability of operating capital with low interest rates. Our priority is moving the aid out to producers, so we continue to work with NCBA to accomplish that. As you all know, government programs are not fast nor simple. There is likely to be a round four of stimulus and CCA will be working hard for the interests of California producers. Our state has been through a lot since last year; from wildfires, to drought, and now a national crisis that will have lasting impacts on the economy and cattle markets. Honestly, it must feel like the trials of Job for many. Just as it has been for the last 100 years, CCA staff is working – albeit under quarantine guidelines – to represent and support its members. In the absence of our face-to-face meetings, please call the office if you need services or have questions. You can also check the website for regular status updates. Together we will persevere, and rise to meet the challenges before us. The reason I feel confident in that statement is that cattle ranchers are a breed apart; independent, tough and resilient. That is why I love this way of life and the fellow ranchers I share it with. If we have faith, and remain steadfast in our values we will be rewarded like Job when this is all over. I hope all your families have faired well through this ordeal.
