17 minute read
Hereford love
Love Breed of a
Hereford loyalists dedicated to long time king of beef
by Managing Editor Stevie Ipsen
For many cattlemen and cattlewomen in the U.S., the love of ranching is synonymous with images of horned Hereford cattle roaming the range. There are also cattlemen and cattlewomen who are sentimental for other reasons – they maintain loyalty to the Hereford breed because their dad or grandpa loved red and white cattle. And then there are beef producers who keep Herefords on their place not out of nostalgia but simply out of the common sense belief that Hereford genetics are the best way to keep well-rounded traits in their herd through heterosis.
Despite the ushering in of the Angus era through the 70s and 80s and the very successful branding of black-hided cattle through today, even those who raise predominately Angus cattle admit the beef industry is what it is because of Hereford cattle.
Steve Lambert, Oroville, raises purebred Hereford cattle, offering his best bulls to commercial beef producers across the west. A large portion of those bulls go to ranchers who also have Angus genetics in their herd.
“You will hear many cattlemen say that the black baldy is the best mama cow you can breed for,” Lambert said. “I won’t argue that. Hereford bulls pass on a lot of traits we need in the commercial business and the white-faced mama is one of those. She is a good mother, raises a stout calf, has good milk, high fertility and is easy to get along with and can travel in tough country.”
Matt Macfarlane, owner of California-based livestock marketing firm M3 Marketing, Rocklin, said he buys Hereford bulls for many reputable commericial breeders who are known for their Angus-based herds.
“People you might not typically expect to buy Hereford bulls often do. They do it because they are smart and recognize the value Hereford genetics bring to Angus herds,” Macfarlane said. “In all reality, the largest commercial guys in the west might have Angus-based herd but they continuously replenish their Hereford bull battery because the fertily, docility and maternal traits are hard to get from other breeds.”
It’s no secret that black hides do better at sale time but for many, the traditional Hereford-Angus cross is the best way to grow a cowherd. And the feed efficiency of Hereford-influenced cattle in the feedyard is impressive as well.
According to research done by the United States Meat Animal Research Center (USMARC), Herefords do well when pitted against other breeds in the feedlot. Against Herefords, the five-year cost difference per steer/year in terms of feed was $19.75 for Angus, $22.79 for Red Angus, $22.16 for Simmental and $5.80 for Charolais.
Lambert says he sees in his own commercial cows that the low-birth Angus calves that will perform on the rail with good yield grade and marbling but the docility that comes with Hereford genetics keeps Herefords in first place, in his opinion.
“Docility is a trait that gets overlooked by the dollar signs that Angus can bring. In my experience, I would trust Hereford-influenced cattle with the most irreplaceable parts of my operation like my kids and grandkids,” Lambert said.
It is believed the Hereford breed was founded on the draught ox descended from the small red cattle the Romans brought to Britain, and from a large Welsh breed. Herefords get their name from the county Herefordshire, where the breed began.
Herefords made their appearance in the U.S. in 1817 when Kentucky statesman Henry Clay imported a bull, a cow and a heifer. They became the predominant breed throughout the rangeland of North America.
Warren Gammon, from Des Moines, Iowa, developed the Polled Hereford breed after seeing some on exhibit at the Trans-Mississippi World Fair in Omaha in 1898.
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Three years later, he established the Polled Hereford breed registry with 11 head of naturally hornless whiteface cattle he had located and purchased. They were registered in the American Hereford Association (AHA), but were not singled out due to their lack of horns. Gammon formed the American Polled Hereford Cattle Club to maintain a separate record. He served as executive secretary for the association until 1921.
As a past president of the American Hereford Association, based in Kansas City, Mo., Lambert has traveled the country representing the breed and said one thing that rings true is that Herefords are adaptable.
“Herefords are still a large part of the Canadian beef industry because they are thick-hided and perform in the cold,” he said. “Yet, they flourish in the heat of South America, too. They can survive at high altitudes and cold climates. They’re very adaptable to the climate they’re in.”
“Whether we are dealing with the extreme heat of the Central Valley or the cold of the high desert, Hereford cows and bulls are hardy and can thrive anywhere we put them,” Lambert said. “It is great for me to be able to share that with my customers and to be certain that the product I am raising will perform for them.”
“In the hot summer months, our black cows are the first to find the pond to lounge in and the Herefords don’t miss a beat,” he says. “They just keep on grazing even in triple digit weather.”
Lambert said he got in the Hereford business because he was raised in the 70s when Hereford was easily the most popular beef breed and it made sense. He was brought up in the dairy business of the Northern Bay Area and his parents expanded to Polled Herefords in 1971.
“I reached a point where I was young and ambitious and was ready to start my own operation,” Lambert said. “I had Herefords because that is what we had but I considered myself to be forward-thinking and innovative and I thought Angus or Limousin cattle might be a good way to expand on what I was doing.”
Lambert said the Angus business wasn’t bad to him but in terms of seedstock, raising Herefords has been more fun.
“I love Herefords. They are so good to be around, they are easy to work with and make ranching fun,” Lambert said. “Not to knock black cattle because I still raise a lot of them on our commercial operation and they are great for cash flow but as I have gotten older Herefords have proven to be the best of all worlds.”
Though we live in a largely Angus-driven beef industry, all signs still point to success regarding the Hereford breed. In a recent news release from the American Hereford Association Executive Vice President Jack Ward expressed monumental success for the breed in 2021.
“The Hereford breed and demand for Hereford genetics is growing at an exciting pace,” said Ward. “We’re seeing expanded interest for Hereford genetics in the commercial sector through an increase in average sale prices and bull numbers.”
AHA reports U.S. Hereford semen sales increased by 9 percent in fiscal year 2021, with growth in domestic and international sales. Genetic trend lines also continued their march forward, with a reported 43 percent increase in the Baldy Maternal Index (BMI) and a 55 percent increase in the Brahman Influence Index (BII) during the course of the past six years.
Shane Bedwell, AHA’s Chief Operating Officer and Director of Breed Improvement, echoed Ward’s enthusiasm about the state of the Hereford breed.
“We really think we have an advantage in terms of fertility, the disposition advantage that Hereford brings to the table and continued advantages in efficiency, among others,” Bedwell said. “This is a great time to consider the advancements made and to celebrate the victories of the year with members a big time in our breed right now…We’re going to continue that story because it’s a good one to tell.”
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RECORD NUMBERS ENROLL IN HEREFORD FEEDOUT PROGRAMS
Seedstock and commercial cattle producers enrolled a record 756 head of Hereford and Hereford-influenced steers in the American Hereford Association’s (AHA) 2022 feedout programs. The significant increase in cattle numbers from 104 participants in 17 states underscores the value producers are gleaning from the opportunity.
“I enrolled cattle because I wanted to get the carcass data back and attribute how those cattle perform going back to their dam and sire,” says Lee Elzemeyer, a Hereford breeder from Richmond, Ind., who is participating in the Hereford Feedout Program (HFP) for the second year. “As a producer it is important for us to know which animals produce the highest quality meat, while also looking at other traits that can add premiums to the final product.” He encourages others to participate.
Participants in the HFP, which began in 2020, enroll a minimum of five head of steers that comply with a specified 45-day weaning and preconditioning protocol. They receive feedlot performance data for their cattle throughout the feeding period, as well as carcass data at the end.
Similarly, the National Junior Hereford Association (NJHA) Fed Steer Shootout (FSS) program, begun in 2017, enables NJHA members to enroll a minimum of one steer, meeting the same weaning and preconditioning requirements of the HFP. Juniors also receive feedlot and carcass data for their entries and have the opportunity to compete for lucrative prizes by participating in an associated feedlot education program. This year’s FSS includes 200 steers from 74 NJHA members in 17 states.
“The growth in the feedout programs provided by the AHA is exciting to see and is a great testament to the progressiveness of Hereford breeders across the country,” says Trey Befort, AHA director of commercial programs. “These programs provide a great avenue for participants to gain a better understanding of the cattle feeding industry, while collecting valuable data to benchmark genetic merit and make improvements.”
Cattle for both programs are fed at HRC Feed Yards at Scott City, Kan., which provides the platform for participants to maximize their profit potential and to expand their marketing avenues by gaining access to an industry-leading marketing grid offered by U.S. Premium Beef®. This allows participating cattle to be candidates for the Certified Hereford Beef® brand through National Beef Packing Company. HRC offers participants convenient, cost-effective financing options. HRC also hosts an annual field day where participants have a chance to see their entries during the feeding period.
Kora Hawkins, Jane Lew, W.V., competed in the 2020 and 2021 FSS and attended the field day. “Meeting new people, learning about the feedlot and understanding how cattle perform was a great experience,” she says. Hawkins is participating in the 2022 program and encourages others to participate to learn more about their genetics to make better breeding decisions.
For more information about the Hereford Feedout Programs, visit hereford.org/genetics/breed-improvement/ feedout-program/.
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COBANK: MONETARY POLICY COULD REPLACE COVID AS ECONOMIC WILD CARD
According to a new quarterly report from CoBank’s Knowledge Exchange,.despite the surge in COVID cases and the complications it brings, the U.S. economy continues to thrive. Workers are steadily returning to the labor force; the unemployment rate is currently under 4 percent and consumers are still spending confidently.
Until the omicron surge subsides, the biggest economic risk will be the millions of workers who report sick and hamper already beleaguered supply chains. The impacts for food and agriculture sectors will vary significantly by product but will generally be less severe than earlier in the pandemic, the report said.
“Economic risks from new, high-impact coronavirus variants will remain throughout 2022,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “But Americans are increasingly making peace with the notion that the virus, in some form, will be with us for months if not years, and we must find a way to live more normally with it. This shifting mindset will de-risk the economy to some degree.”
As of the end of 2021, the U.S. has regained 84 percent of the jobs lost since the pandemic began, equating to a deficit of 3.6 million fewer workers compared to early 2020. The supply chain outlook has improved due to more workers in warehousing and transportation. Since May 2020, the U.S. has added 800,000 jobs in the two sectors, eclipsing the preCOVID number of jobs by 3 percent.
As the labor market inches closer to full employment, any last arguments for the Federal Reserve to maintain its highly accommodative monetary policy are losing their merit. With the market now anticipating a sea change in monetary policy, the tightening of financial conditions has begun.
Grains, Farm Supply & Biofuels
Corn and soybean futures prices traded higher in the fourth quarter, reaching six-month highs at the end of December. Grain exports are recovering after barge movement disruptions caused by Hurricane Ida lingered into the fourth quarter. However, combined corn, soybean and wheat shipments to China have fallen by one-third compared to last season. Partially offsetting the decline in Chinese buying, combined exports of corn, soybeans and wheat to Mexico increased by 24 percent.
Farm supply cooperatives and ag retailers enjoyed a profitable fall season amid high crop prices, strong farmer cash flows and favorable harvest conditions. Fertilizer prices continued to climb, increasing approximately 20 percent in Q4 and 160 percent versus the year prior. Input cost inflation, crop protection product shortages and labor challenges could threaten farm supply margins through the spring 2022 planting season and potentially beyond.
Ethanol production rebounded to pre-COVID levels and Q4 profit margins rose to all-time records, currently averaging $1.34/gallon. Production reached a record 17 billion gallons annualized for two consecutive weeks in late October, before settling down to 16.3 billion at year end.
Animal Protein & Dairy
U.S. animal protein production moved moderately higher through Q4, but supplies remain under pressure due to robust demand. Combined production of red meat and poultry set a November record of 8.9 billion pounds, 3.5 percent larger than a year earlier. Ending stocks of poultry were down to five-year lows, and pork inventories hit 12-year lows. Meanwhile, fourth quarter wholesale meat indexes were 25 percent higher year-over-year, reflecting the heightened demand for animal proteins.
China’s imports of animal protein have slowed significantly from their record peaks during the summer months. For U.S. producers, reliance on China has waned for poultry and pork, while the opportunities for beef remain robust. The 2022 outlook for sales to China remains mixed, as the nation’s hog inventory has rebounded but African swine fever remains a wild card. China’s growing affinity for U.S. beef has made beef producers optimistic.
Milk supplies tightened further in Q4 as the U.S. dairy herd continued to shrink, particularly in the West and Southwest regions of the U.S. where feed availability remains a persistent challenge. However, signs of prosperity are on the horizon as heifer prices rise, dairy cow slaughter moderates and farm sales slow. Class III milk futures traded on the CME ended 2021 above $20/cwt after starting the year below $18/cwt.
Power, Water & Communications
Natural gas and coal prices soared to multi-year highs in 2021 as buyers scrambled to line up sufficient supply ahead of winter. Last year’s massive economic reboot and the inability of producers to keep up was largely to blame for energy supply shortfalls and run-away prices. However, some argue that energy transition played a role in high fuel prices as collective weaning from fossil fuels hobbles supplier response. The energy crisis playing out in Europe appears to support that analysis.
The Infrastructure Investment and Jobs Act provides $15 billion for lead pipe removal, a far cry from the $45 billion likely required. However, as the largest pay-out in a generation, the funding could make a meaningful dent in addressing this problem. Success of the current program will depend, in part, on how funds are spent.
The $65 billion in new broadband funding is triple the size of the Rural Development Opportunity Fund (RDOF), which was the largest federal government broadband subsidy program. States will receive two-thirds of the funding to build networks in unserved and underserved areas. By tapping into local knowledge of where coverage is needed and who can build it, the Federal Communications Commission appears to have learned from the shortcomings of previous programs.
