F&R LivestockResource
Winter 2022 | Volume 5, Issue 2
Your direct source for livestock news and information
Published by Farmers & Ranchers Livestock, Salina, Kansas
In this Issue: 1 AMAs Drive Consumer Alignment Much discussion has taken place in the last half of 2021 regarding the government stepping in and imposing mechanisms to support the cash markets. Wes Ishmael tackles this topic, reporting on conclusions drawn by the nation’s most respected ag economists. As always, the devil is in the details.
10 Fertile Opportunity Today, genomic influence, current market dynamics and risk tolerance challenge cow-calf producers to consider potential value across production sectors. It all starts with a live calf from a consistent producer.
19 Margin Battle Brews Long expected cattle price recovery picked up steam through December. The forecast for early to mid-2022 is bullish. That’s the good news. The bad news is rising inflation adding to input costs will have an effect. At this point, the good news still outweighs the bad!
24 Beef Quality Bar Rising The fact that beef has gained an 8% share of the protein market is no accident. A couple of decades ago, progressive beef producers heard the signal from consumers to produce a better product or else. Today, consumers are reinforcing that message by paying record high prices for high quality beef.
26 Hurricane-Force Winds Spark Wildfires in Kansas The wildfires that devastated at least six counties once again remind us of our humanity and our need to rely on each other. Please take time to read and help if you can. Godspeed to all the families impacted.
27 Politics, Cattle and Beef Wes Ishmael reports on the timely presentation made by Scott Bennett, director of congressional relation for the American Farm Bureau Federation (AFBF) during the American Hereford Association’s Annual Membership Meeting.
28 Dog Whispering Izzy takes talking to the dogs to a new level. We’ve all done it…talking to the dogs, that is. The problem is, most of our dogs’ response would be the same as Wink and Jasper!
29 The 109th Annual K-State Cattlemen’s Day March 4 will recognize Pat Koons as the 2022 Stockman of the Year.
AMAs Drive Consumer Alignment Premiums and discounts segregate beef and find the highest value home. By Wes Ishmael
“Please do not create regulations and legislation that have the unintended consequence of harming value-based marketing,” said Mark Gardiner of Gardiner Angus Ranch, Ashland, Kansas, during testimony to a Senate Agriculture Committee hearing in June. “Doing so would undo many years of progress for producers such as my family and those of our customers. Onerous legislation has the potential to result in a reversal of quality that is simply unacceptable to consumers.
Legislation limiting progress (and ultimately is a detriment to quality beef production) punishes America’s beef producers.” The hearing came under the heading, “Examining Markets, Transparency and Prices from Cattle Producer to Consumer.” The value-based marketing Gardiner mentions comes under the heading of alternative marketing arrangements (AMAs). These are trading methods outside spot cash markets,
Continued on page 4 ________________________________________
PRSRT STANDARD U.S. POSTAGE PAID Jefferson City, MO 65101 Permit #303
Nematodirus (shown here), also known as the thread-necked
intestinal worm, is an unsightly parasite that causes infections marked by diarrhea and loss of appetite − both of which open the door for other internal parasites to cause even more damage.
Choose Safe-Guard® (fenbendazole) when you deworm to take out more profit-eating parasites. SAFE-GUARD is proven to kill 98.7% of worms, remaining powerful and effective, even in the face of parasite resistance.1 However, using SAFE-GUARD along with ivermectin has been shown to kill over 99% of worms.2 Choosing two dewormers from two different classes (like SAFE-GUARD + ivermectin) can help ensure you’re getting the toughest parasites – and helping slow the growing issue of parasite resistance.
B I T E B AC K AT K I L L M O R E WO R M S .C O M
IMPORTANT SAFETY INFORMATION | RESIDUE WARNINGS: SAFE-GUARD Paste and Suspension: cattle must not be slaughtered within 8 days following last treatment; Mineral and medicated feed products: 13 days; EN-PRO-AL Molasses Block: 11 days; Protein Block: 16 days; For dairy cattle, the milk discard time is zero hours. A withdrawal period has not been established for this product in pre-ruminating calves. Do not use in calves to be processed for veal. For complete information, refer to the product label. Reinhardt CD, et al. A fenbendazole oral drench in addition to an ivermectin pour-on reduces parasite burden and improves feedlot and carcass performance of finishing heifers compared with endectocides alone. J Anim Sci. 2006;84(8):2243-50. 2 Merck Animal Health National FECRT Database. 1
MAHCattle.com • 800-521-5767 © 2021 Intervet Inc., doing business as Merck Animal Health, a subsidiary of Merck & Co., Inc. All rights reserved. US-SFG-200400001
F&R Livestock
From the Editor
Resource
Volume 5, Issue 2 Winter 2022 Published quarterly by
Farmers & Ranchers Livestock, Salina, Kansas 1500 W. Old Hwy 40 Salina, Kansas 67401 (785) 825-0211 • (785) 826-1590 (fax) FandRLive.com
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Owner: Farmers & Ranchers Livestock, Mike Samples, Salina, Kansas (785) 826-7884 Editor: Deb Norton, Deb@CogentIdeasInc.com Production Coordinator: Julie Tucker Graphic Designer: Daric Wells Editorial Assistants: Dixie Russell, Dave Cumpton Contributing Editors: Wes Ishmael, Paige Nelson Contributing Artist: Ted Foulkes Sales Jay Carlson Carlson Media Group, LLC (913) 967-9085
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F&R Livestock Resource is published quarterly with mail dates of January 15, March 1, August 15 and October 1 by Farmers & Ranchers Livestock, Salina, Kansas.
Produced by www.CogentIdeasInc.com
By Deb Norton
“Rich people have a lot of problems. Poor people have one.” —Dr. Dan Thomson Marketing professionals are challenged to have a comprehensive understanding of the industries they work in, yet, have the capacity to avoid the minutia in developing short and long-term strategies. For the past nearly two years, civil discussions and not so civil arguments in the meat animal protein spaces have ultimately focused on who’s winning and who’s losing. Those on the losing side arbitrarily argue those on the winning side are too successful, making too much money and regardless of historical market performance… wait for it… the government should intervene. One of, if not the most important consideration in every marketing strategy is the perception of the end user. In meat protein production, the end user is the consumer. Whether it’s a fine dining restaurant, fast food franchise, a consumer shopping at Whole Foods or an inner-city single mom hoping to afford a pound of ground beef for her family, our collective success or failure is directly connected to every consumer. Respecting and being able to respond to the diversity of a global consumer adds even greater complexity. Dr. Dan Thomson, Jones Professor of Production Medicine and Epidemiology at Kansas State University for 15 years, founder of the popular “Doc Talk” series on RFD-TV, and current chair of the Department of Animal
Science at Iowa State University, arguably has consulted with every Fortune 100 company involved in the delivery of meat protein to the consumer. In his many presentations, Dr. Dan often states, “Rich people have a lot of problems. Poor people have one.” In my mind, this statement should be at the very beginning and the very end of every discussion we have in our industry relative to quality, affordability and access. Meat protein consumers represent Economists agree the chokeevery segment of society. Not just in hold on the supply chain will America, but around the world, consumers love beef. Meat processors are largely be resolved in 2022. challenged to produce beef that meet ethnic and religious, portion size, health, and safety requirements while making beef affordable. Further processing of beef satisfies a large consumer appetite for deli meats and table ready meals. The common denominator in the increasing demand for beef around the world is quality. Quality starts in the pasture. The cattle feeder will feed enough corn to get an animal to the optimum weight. The processor will fab the carcass to meet marketing specifications. The rest is up to the producer to make genetic and management decisions at the beginning of the supply chain that inherently provide opportunities for profitability at every production segment. Not every producer has the risk tolerance to retain ownership. However, every cow-calf producer can supply the next segment with a calf that can be successful as a healthy stocker or feeder calf with the genetics to meet premium specifications based on quality. No doubt the past nearly two years have wreaked havoc on the cattle market and created unprecedented pressure on the production side of the ledger. Yet, after months of civil debate and not so civil vitriolic verbal grenades being lobbed, not one ag economist supports government intervention. Joining in the bitter chorus is the societal faction whose goal is to ultimately eliminate food animal production. Economists agree the chokehold on the supply chain will largely be resolved in 2022. Providing we can finally get past the devastating impact of COVID-19, and societies and economies around the world can find a new normal, the greatest competitive advantage throughout the beef complex is quality. Beef will continue to compete with pork and poultry. Some will argue the meat protein sector’s newest competitor is the plant-based and cultured meat movement. So far, the data doesn’t support the claim. A recently published analysis indicated investors in plant-based and cultured meat startups have
Continued on page 23 _____________________________________
Farmers & Ranchers Upcoming Sales and Events
F&R Advertisers / Page / Sale Date
Cow Sales...................................Jan. 18, Feb. 15, March 15, April 19, May 3 Weaned/Vacc Sale................................................................................. Feb. 1 Bull Sales....Don Johnson, March 7...New Frontier Bucking Bull Sale, March 26
Apex Cattle...........................................................19...........................................................January 31 Bar S.......................................................................8............................................................. March 12 Cow Camp Ranch..................................................7........................................................... February 4 Don Johnson Angus.............................................12............................................................... March 7 Gardiner Angus Ranch.........................................15.................................................................. April 2 Gold Bullion..........................................................28............................................................... March 6 Green Garden Angus...........................................30.................................................................. April 4 J&N Ranch, LLC...................................................21......................................................... February 12 Jamison Herefords...............................................23......................................................... February 25 KSU Legacy Sale..................................................16............................................................... March 4 Laflin Ranch..........................................................13............................................................... March 5 Loving Farms........................................................18............................................................... March 5 Mushrush Ranches..............................................29............................................................. March 18 NextGen................................................................32................................................................ April 22 Nichols Farms.......................................................10...........................................................January 29 Ohlde Cattle Co....................................................20................................................................ April 18 Post Rock.............................................................25......................................................... February 26 Schiefelbein Farms...............................................11......................................................... February 19 Seedstock Plus.....................................................27.....................................Feb. 26, March 5, 12, 26 Wright Charolais...................................................20............................................................. March 12
Spring Spectacular Catalog Horse Sale Ranch Horse Competition (Catalog Horses Only)............May 20, 6:00 PM Roping & Performance Preview...........May 20, 1:00 PM, May 21, 7:30 AM Sale...................................................................................May 21, 10:00 AM
Farmers & Ranchers Livestock Commission Co., Inc. Salina, Kansas • (785) 825-0211
Don’t miss our next issue March 1, 2022. For advertising information, contact:
Jay Carlson | Carlson Media Group
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F&R Livestock Resource page 3
Continued from page 1 ________________________________________
such as formula and grid trades. For perspective, as use of AMAs increased, the percentage of fed cattle under federal inspection grading Choice and Prime grew from 54% in 2006 to 83% in 2020. Along the way, consumers became more willing to buy more beef at higher prices—the definition of increased demand. According to Randy Blach, CattleFax CEO, domestic consumer beef demand last year was the strongest in more than 30 years, based on the U.S. Consumer Beef Demand Index. That was helped by consumer incomes being replaced almost entirely by government stimulus. Prime and Choice beef production increased from approximately 11 to
12 billion pounds in the early 2000s to around 18 billion pounds last year, according to Blach, during this year’s
International Livestock Forum hosted by Colorado State University and the National Western Stock Show.
Along the way, the Choice-Select price spread maintained its strong pace, while the spread between Choice and the upper two-thirds of Choice grew. The Prime-Choice spread wilted because of the dearth of restaurant business. “We produce more high quality beef and consumers continue to say they want more,” Blach said. Since 2000, he noted that beef gained 7% share of total meat spending, away from pork and poultry.
Paying for Consumer Demand “The method of pricing all finished cattle on a live, cash basis was antiquated and needed to change. We felt strongly in the need to price cattle on a value-base system which paid for quality, instead of pricing all cattle on the average,” Gardiner said in his Senate Ag Committee testimony. He was explaining his family’s decision to join with others in 1997 to create what ultimately became U.S. Premium Beef (USPB), which maintains an ownership position in National Beef Packing Company, LLC (National Beef). “Alternative marketing arrangements have grown in use in recent decades for several reasons,” explained Glynn Tonsor, agricultural economist at Kansas State University, during the same hearing. “Initial interest in AMAs from both fed cattle buyer and seller perspectives originated from cost efficiencies (coordinating logistics, lowering marketing and procurement expenses, etc.). Furthermore, consumer demand signals leading to proliferation of beef products concurrently elevated demand for specific cattle, and with it, further use of AMAs. The above-noted production of beef items for specific market channels would be seriously constrained without this increased use of AMAs. In short, increased use of AMAs reduces costs and enhances demand in some segments of the industry—both worthwhile outcomes page 4 Winter 2022
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that increase the economic pie for industry participants.” Tonsor also pointed out that increased use of AMAs means less use of cash markets. “Understanding this situation underpins prudent assessment of any proposals that
page 6 Winter 2022
involve changes in how fed cattle are marketed,” he explained. “As USPB stakeholders, we were able to negotiate and implement a value-based system that changed from simply selling cattle, to marketing specific meat and meals desired by and in
higher demand by consumers,” Gardiner explained. “USPB, through its ownership position in National Beef, provided unprecedented opportunity to grass roots producers such as Gardiner Angus Ranch to be compensated for producing higher quality beef products. I stress that this opportunity has been for all sizes of producers. The families and operations earning the highest value per head are often considered small family producers. In a value-based system, the very family operation who never had market access due to limited cattle numbers can reap the largest financial benefit on a per head basis.”
“I encourage the industry to proceed forward in a manner that does not deteriorate economic benefits of the industry’s evolution in recent decades to improve beef quality and align effort with beef demand signals.” —Glynn Tonsor From its inception through 2020, Gardiner explained producers marketed 16.5 million head of cattle through USPB, earning more than $605 million in premiums above the cash market. In 2020, the average premium earned was $50.32 per head above the live cash market. “Considering earnings and distributions, along with grid premiums, more than $2.1 billion have been returned to USPB shareholders because of their investment in the company and the production of higher quality beef,” according to Gardiner. “USPB was an answer to a market experiencing intense challenges. Since the beginning, those who participate in USPB, market their cattle on a value-based pricing system, based on the quality of the beef produced. This is a market with targeted, well defined, repeatable end points directly influenced by consumer demands,” Gardiner explained. “Value-based pricing in the beef industry recognizes and pays premiums for the production of beef products in highest demand. This pricing mechanism also uses discounts for the production of undesirable beef, which does not hit the defined targets. The data confirms, through economic signals, what we are doing right, as well as areas in need of improvement. We have gone from selling a commodity product on a cash market, which does not differentiate quality attributes, to marketing on a value-based program which fully recognizes and pays premiums for quality production.” Likewise, Tonsor said to the Senators, “I encourage the industry to proceed forward in a manner that does not deteriorate economic benefits of the industry’s evolution in recent decades to improve beef quality and align effort with beef demand signals. This pursuit can also include regularly assessing the viability of ways to enhance the information content available on actively negotiated cattle and/or consider increased use of alternatives to traditional, spot markets in establishing base cattle values.”
Cow Camp Ranch Five Generations of raising seedstock and feeding cattle.
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MGR TREASURE x CCR COWBOY CUT 5048Z
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CE BW WW YW MILK STAY DOC CW MARB REA API TI 19 -2.0 79 128 30 24 11 47 0.89 0.61 195 98
CE BW WW YW MILK STAY DOC CW MARB REA API TI 13 -0.2 94 151 17 14 23 41 0.67 0.55 158 98
CCR POUNDER 7098H
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ASA 3873367 || Homo Black, Homo Polled CCR POUNDER 2045F x GDAR LEUPOLD 298
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BW WW YW MILK STAY DOC CW MARB REA API TI 1.2 88 134 24 15 14 32 0.24 0.66 129 82
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Cow Camp Ranch
SPRING BULL SALE 1:00 PM CT
February4
2022
Lost Springs, KS 190 Age Advantaged Simmental and SimAngus™ Bulls Sell
Entire offering of 2021 Spring Born Heifers
COW CAMP RANCH LOST SPRINGS, KS bullsale@cowcampbeef.com www.CowCampBeef.com
Kent Brunner 785-466-6475 Mark Brunner 785-258-0173 Nolan Brunner 785-466-1129 Tracy Brunner/Feed Yard 785-965-2228
Marty Ropp 406-581-7835 Corey Wilkins 256-590-2487 www.alliedgeneticresources.com
BAR S RANCH ANNUAL PRODUCTION SALE Saturday, March 12th, 2022 • Paradise, KS
SELLING YEARLING AND 2 YR OLD ANGUS, RED ANGUS AND CHAROLAIS BULLS REGISTERED AND COMMERCIAL FEMALES
Ken & Pat Stielow | bars@gorhamtel.com | 785-483-9733 David & Stephanie Dickerson | barsranch2@hotmail.com | 785-483-1454
Farmers & Ranchers Livestock Comm. Co., Inc. Salina, Kansas
Spring Spectacular Catalog Horse Sale May 21, 2022 • 10 AM
Ranch Horse Competition • Friday, May 20 (Catalog Horses Only) • 6 PM Roping & Performance Preview • Friday, 1 PM • Saturday 7:30 AM
Selling 300 Horses Only! 7% Commission $20 Pass Out Fee • $30 Substitution Fee 72-Hour Soundness Guarantee Catalog closes March 1 or first 300 horses!
Kansas’ Connection for Ranch & Rope Horses For More Information, Contact:
Farmers & Ranchers • 785-825-0211 | 785-826-1590 (fax) | www.fandrlive.com Mike Samples, Manager • 785-826-7884 | Kyle Elwood • 785-493-2901
Bid Live On
“Gavel’s Down, The B
For Immediate Assistan
Farmers & Ranchers Livestock Comm. Co., Inc. Salina, Kansas
2021 Futurity Results Placing Horse
Owner / Rider / Nominator
1st 2nd
Playguns Smartmate Busy at the Bar
Dan Barner / Alesa Jones / Dan Barner Dan Barner / Alesa Jones / Lisa Miladinovick
Playguns Smartmate Busy at the Bar
Dan Barner / Alesa Jones / Dan Barner Dan Barner / Alesa Jones / Lisa Miladinovick
Playguns Smartmate JK Smart Docs Holly
Dan Barner / Alesa Jones / Dan Barner Doug Regers / Cliff Hall / Jerry Kinsey
Playguns Smartmate Busy at the Bar SAH Blues Jacksprat A Shot of Chex JK Gabilan Huddy Boy Whiskeys Doc O Lena JK Smart Docs Holly Shining TJ Leos Three Skyline
Dan Barner / Alesa Jones / Dan Barner Dan Barner / Alesa Jones / Lisa Miladinovick Salvador Torres / Salvador Torres / Clayton Nisly Jos Lilley / Josh Lilley / JC Jensen Zack Parkins / Zack Parkins / Jerry Kinsey Dan Barner / Dan Barner / Dan Barner Doug Regers / Cliff Hall / Jerry Kinsey Frank Higgs / Troy Higgs / Doug Michaelis Kirby Smith / Kirby Smith / Scott Preston
Reining
Cow
1st 2nd
Trail
1st 2nd
Total
1st 2nd 3rd 4th 5th/6th 5th/6th 7th/8th 9th 10th
2021 Top 20, Saturday Lot Consignor
8 Lori Cline 52 Alan Long 166 Salvador Torres 163 Jamie Stover 19 Josh Lilley 102 Kirk Cunningham 24 Aaron Porter 4007 Salvador Torres 112 Shea Meeks 81 Foard Kemp 46 Sandy Albright 58 Patrick Chester 4001 Dan Barner 84 Glen Hall 23 Seth Larson 72 Kirk Cunningham 123 Dinges Performance Horses 32 Shea Meeks 11 Steven Ratzlaff 44 Clifford Morrison *Grade, all others AQHA
Horse
JG French Pep NZ Summer Merada Freckle Sprat Badge Dough Rey Mi Unikia Slid JAE Bar McCue Mr Enterprise Peppy Diamond Busin Baron King Caddie Verses Love Bird Sailing My Mercedes Busy at the Bar Doc Boon 45 Checkin a Frostie Jet Major Gin Butterscotch* HESA French Bruce SR Power Ball Baby Dunit Like Freckles
$
19,500 16,000 14,500 13,200 12,750 12,200 11,250 11,250 11,000 10,800 10,000 10,000 10,000 9,700 9,500 9,500 9,250 9,200 9,000 9,000
Notes
2010 sorrel gelding grandson of Frenchmans Guy—barrels 2016 roan gelding by Cats Merada—ranch, rope horse 2017 buckskin gelding Topsail Whiz X Colonel Freckles—head horse 2015 sorrel gelding by Rey Dual—solid head horse 2013 buckskin gelding by OSU Powerslide—head, ranch 2013 bay roan gelding by Genuine Doc McCue—head, ranch Top 5 Avg: $15,190 2013 brown gelding by Natural Enterprise—team rope 2018 bay gelding 3rd place futurity winner Top 10 Avg: $13,245 2011 bay gelding grandson of Mr Baron Red—team rope Top 15 Avg: $12,110 2010 sorrel gelding grandson of Genuine Doc—team rope 2015 APHA black tobiano mare—pretty, broke Top 20 Avg: $11,380 2012 chestnut gelding grandson of Custom Crome—head horse 2018 buckskin mare reserve champion futurity 2018 red roan gelding by Smart Lena Boon—futurity entry 2011 bay gelding by grandson of Jet Smooth—head horse 2016 red roan gelding grandson of Tanquery Gin—head, ranch horse 2013 buckskin mare pony 2007 palomino gelding grandson of Frenchman Guy—head horse 2018 blue roan gelding grandson OSU Power Slide 2016 buckskin gelding grandson Hollywood Dunit—ranch horse
2021 Top 20 Sunday Lot 342 390 309 385 405 414 417 406 338 233 402 345 419 301 322 207 300 368 375 298
Consignor
Rob & Sue Stevenson Tim & Pat Dan Barner Rob & Sue Stevenson Glenn Hall Joe Bevington Tim & Pat Dewey Trever Hall Lindsay & Braden Davis Rob & Sue Stevenson Neal Berry Tracy Cutler Tracy Cutler Wes Roberts Salvador Torres Tim & Pat Dewey Neal Beery Kalynn & Clay Hokr Scott Bankes Nicki Ragland
Horse
Chex Out My Nu Gun Don’t Stopp Red Rangers Smart One A Smooth Metalic Flashbac of Mine Bueno Peppy Jay Sing Two Me Shooter Topsail Whiz Chex CCC Cash Flow Roan Oh Whatta Metalic 02 Shaqed Up At Midnite Spooks Cashin In Spooks Nitro Splash High Brow Stoli Stylin Quixote Glows Bucks Believin Hustlin Moonshine NB Six Guns Gal Metallic Hot Roder Nuthin But Traffic
Sire
Lets Play Guns Don’t Stop Believen Ranger Cookie Mtalic Style JC Flashbac Peppys Gold Colonel Shooter Cat Whiz My Nu Chex Dry Cash Badger Pete Metalic Style Pepto Cee Lena Spooks Nitro Gun Spooks Nitro Gun Freckles Cat Diablo Stylin With Pepto Don’t Stop Believen Cats Moon Shine Sixes Sixgun Metalic Malice Dash Ta Traffic
$
16,500 12,700 9,000 8,750 8,200 8,000 7,200 7,100 7,000 6,750 6,600 6,500 6,000 5,750 5,500 5,300 5,300 5,300 5,300 5,100
Notes
Gray Gelding Sorrel Gelding Chestnut Colt Gray Filley Bay Colt Sorrel Gelding Sorrel Colt Sorrel Colt Red Roan Colt Red Roan Filly Red Roan Filly Buckskin Colt Buckskin Colt Bay Roan Colt Red Roan Colt Sorrel Colt Sorrel Colt Bay Filly Buckskin Filly Blue Roan Colt
For More Information, Contact:
Top 5 Avg: $11,030.00 Top 10 Avg: $9,120.00 Top 15 Avg: $8,103.33 Top 20 Avg: $7,392.50
Farmers & Ranchers • 785-825-0211 | 785-826-1590 (fax) | www.fandrlive.com Mike Samples, Manager • 785-826-7884 | Kyle Elwood • 785-493-2901
Auctioneers Love Nichols' Sired Feeder Cattle …so will your cow herd! Six Genetic Lines Sell Private Treaty
Fertile Opportunity Genetics offer producers multiple ways to improve herd reproduction efficiency and revenue. By Wes Ishmael
Nichols bulls are known for siring sale-topping feeder cattle. Year after year, feeder cattle from Nichols' customers have topped sales across the Midwest. Some have topped the sale averages by $83.00 per head. Our goal at Nichols Farms the past 70 years has been to create success for our customers. When one figures a bull will likely sire twenty calves a year, with an average breeding life of five years—100 calves sired with an average $83.00 per head bonus creates a $8,300 profit! Add in salvage value at $1,675 for this bull, your $9,975 lifetime-generated revenue makes a $4,000 to $5,000 bull investment look like a great purchase. Plus, you get impressive Nichols Farms’ sired females from your calf crop for replacements with bred-in fertility, sound feet, longevity and tolerance for fescue.
2022 Opening Day Private Treaty Bull Season
Saturday, January 29, 2022
Nichols Farms Bull Barn • Bidding starts 1:00 PM Selling 500 Bulls • Six Genetic Lines Good: $4,000 • Better: $4,500 • Best: $5,000 Angus • Simental • DX Angus (SimAngus) South Devon • Nichols Composites • Nichols Hybrids
“If you have a more fertile cowherd, the obvious benefit is you have more calves to sell,” says Kent Andersen, director of technical services for global beef genetics at Zoetis. “If reproduction is better, you’re getting more cows bred early and they calve earlier the next season. On average, calves born earlier are older and heavier when they’re marketed, and you have more uniformity. Cow replacement rates are lower, as are associated cow depreciation costs.” Yet, about 8% of the nation’s cows and heifers exposed to breeding fail to produce a calf each year, due mainly to fertility problems, according to “Beef Cow-Calf Management Practices in the United States, from USDA’s National Animal Health Monitoring Service. More specifically, 93.5% of cows exposed in 2017 calved or were ex-
Bulls with Calving Ease, Growth & Docility Offering the best bulls for both Angus and Hereford commercial cow herds
Consider the Hunt Advantage • More than 40 years in business • Relaxed buying experience, private treaty sales • Bulls and females raised under real world conditions • Genetics stressing balanced traits • Unmatched docility • Calf buy-back program • Guaranteed satisfaction, sight-unseen purchases
Should you want us to make your bull selections, we have a buy-from-home plan. We sell with sight unseen, satisfaction guaranteed. In 2021, we sold bulls into 17 states. So, join the list of happy Nichols Farms customers. Call us today and let’s discuss your needs and how we can assist. Check out our sale book online at www.nicholsfarms.biz
pected to calve. For heifers, the calving percentage was 83%. In 2018, researchers with the University of Florida Extension Service calculated the cost of infertility to U.S. cow-calf producers each year to be $4.7 billion. They also modeled annual losses at herd level. For instance, assuming a herd of 100 cows, with annual cow cost of $800, the annual economic loss ranges
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Limousin & Lim-Flex Bulls for sale at the ranch by private treaty. Bridgewater, Iowa Bull Barn: (641) 369-2829 • Ross Cell: (641) 745-5241 Dave Home: (712) 762-3810 • Cell: (641) 745-5730
Free Delivery Nationwide page 10 Winter 2022
HUNT LIMOUSIN RANCH Charles & Nancy Hunt
Dan, Melinda, Jenna, Adeline & Houston Hunt 10329 Hwy. 136 • Oxford, Nebraska 68967 308/991-3373 (Dan) • 308/920-1120 (Charlie) huntlimo@huntlimousin.com
WWW.HUNTLIMOUSIN.COM
31st
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Schiefelbein Showman Reg. # 19260249
Our record setting, top selling bull.
400 Bulls Sell...
Sat., February 19, 2022 • 11 a.m. at the farm near Kimball, MN
Plus
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Find Your Bull Here! ✦ Saturday, Feb. 19, 2022 Plan to join us for these events: Friday, February 18, 2022 12 noon 2 till 5 pm 4 till 6 pm 5 pm 6 pm
Viewing of Sale Cattle Tour of the Farm Social Hour (Free Drinks & Appetizers) Premium Beef Panel Free Prime Rib Dinner with all the fixings
Sale to be broadcast live!
Frank Schiefelbein & Family 74208 360th St., Kimball, MN 55353
Saturday, February 19, 2022 9:00 am 10:30 am 11:00 am
Viewing of Sale Cattle Free Beef Lunch 2022 Sale Begins
(NOTE: All events will take place at the sale facility)
Contact us today! Visitors always welcome.
320/266-8487 (Dan) • 320/224-5830 (Tim) • 303/324-5149 (Don)
info@schiefelbeinfarms.com • www.schiefelbeinfarms.com
Find us on Facebook
www.schiefelbeinfarms.com F&R Livestock Resource page 11
PERFECT PASTURE PERFORMANCE
26th Annual
Performance Bull Sale Monday, March 7th, 2022 • 6:30PM Farmers & Ranchers, Salina, KS
Deer Valley Growth Fund
Musgrave 316 Exclusive
CE
BW
WW
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90
169
33
94
175
299
+8
+.5
70
124
22
71
172
307
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177
292
MOGCK Entice
GAR Sure Fire
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Capitalist 316, President, Rainfall, Prime Cut, New Addition, Mohnen Apache, Solution
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KE Feeds • (620) 727-5197 1630 Avenue Q • Lyons, KS 67554 Sales@KEFeeds.com KEFeeds.com
page 12 Winter 2022
NO CREEP
All bulls sell with Genomic Enhanced EPD’s All bulls have passed a Complete Breeding Soundness Exam All bulls are born and developed by Don Johnson Family
Largest Offering Ever
60 Long-Yearling Bulls 15 Eighteen-Month-Old Bulls
Don Johnson and Linda Egger
6272 E Magnolia Road • Salina, Kansas Don 785-826-5628 • Linda 402-910-3152 tlclivestock@hotmail.com • www.donjohnsonangus.com
Call to request a catalog Follow us on for videos & photos
Reg 20216331
Reg 20212478
Reg 20058783
Poss Maverick
Poss Maverick
Southern Charm
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Reg 20047448
Hoffman Stagecoach
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ANNUAL ANGUS PRODUCTION SALE
SATURDAY, MARCH 5TH, 2022 • HIGH NOON • OLSBURG, KS This is the most dynamic set of bulls and females to ever be offered at Laflin Ranch! Selling 100 Herd Bulls, 50 Fancy Females, 9 Big Time Junior Show Heifer Prospects, Halter Broke and Ready to Go! Fall Pairs, Bred Heifers, Bred Cows, Donor Prospects and Embryos.
R.D.785-587-5852, Barb 785-468-3529 Look for Sale Videos and Sale Book online at www.LAFLINRANCH.com
from $4,000 per year if 4% fail to produce a calf to $10,000 per year at a failure rate of 10%.
Start with Heterosis Harnessing genetics to improve fertility starts with a breeding system that serves operation goals and resources, one that enables taking advantage of heterosis. Typically, the less heritable a trait—the more the trait is influenced by non-additive genetic effects—the greater the impact of heterosis. Re-
productive traits are lowly heritable. Conversely, the more heritable the trait—the more the trait is influenced by additive genetic effects— the less impact heterosis will have. Carcass traits are highly heritable,
while growth traits are moderately heritable. Consider research from the U.S. Meat Animal Research Center (MARC) at Clay Center, Nebraska. In its research herds, over time,
weaning weight per cow exposed is 20-25% more for crossbred cows, compared to their straightbred counterparts. Andersen points out weaning weight per cow exposed measures system level differences in production efficiency because it accounts for failures within the system, such as open cows and calves unable to survive until weaning. Increased weaning weight per cow exposed for crossbred cows stems from a number of factors, but mostly increased cow longevity. On average and in the same environment, USMARC data indicates crossbred cows last 1.36 more years in the herd and have 0.97 more calves, during their productive lifetime, compared to straightbred cows. Crossbred cows produce 600 lbs. more calf weaning weight during their productive life. The data is from an F1 terminal crossbreeding system where F1 cows are bred to bulls of a breed not represented in the cows. Retained heterosis varies based on the specific crossbreeding system. Systems can be exceedingly complex or as simple as using F1 bulls or composites.
Focus on Bulls Next Commercial producers should never underestimate the genetic impact of the bulls they choose that will more likely pass along genetics for improved fertility. Think here of EPDs for such traits as heifer pregnancy and stayability. “Bulls drive herd-level performance of metrics such as pregnancy rate and the age of females when they calve the first time,” Andersen explains. “Generally, about 85% of the genetic change in a commercial cow herd comes from the bulls used during the previous four years.” Commercial producers gained added bull selection power with genomic-enhanced EPDs (GEPD), which incorporate individual animal DNA into genetic evaluation. The net result is that bulls can be selected at younger ages with more prediction accuracy. If you’re aiming to improve herd reproductive performance via bull selection, Andersen emphasizes using selection indexes that prioritize replacement females. “Effective indexes account for the cost of production (feed), and the quality and the quantity of the output,” he explains.
Then Select Heifer Replacements After bull selection comes the chance to improve herd reproductive efficiency through replacement heifer selection. Commonly, research studies suggest heifers born earlier in the calving page 14 Winter 2022
GAR
19862808
HE SELLS APRIL 2 IN THE 43RD ANNUAL GARDINER ANGUS RANCH PRODUCTION SALE!
T
GAR Home Town
he rapid and sustained genetic progress we can make today was unfathomable a few years ago. GAR Home Free is evidence of the reality, through disciplined selection, a Home Town son that possesses even more potential to change populations of beef cattle. GAR Home Free’s dam, GAR Momentum F266, is one of the truly great Momentum donors to ever sell at GAR. In our quest to design Angus cattle that will have a live, efficient calf with explosive growth, moderate stature and produce a Prime carcass, more than 50 years of uncompromising discipline is irreplaceable.
GAR Momentum F266
Like his dad, Home Free is truly unique in his “you can have it all” genetic predictions. Also, like his sire, he has a stunning athletic presence and excellent feet! We have the tools to continue to raise the bar on quality beef production without compromising a single production trait IF we have the discipline to apply the tools. GAR Home Free sells in the Gardiner Angus Ranch 43rd Annual Production Sale, Saturday, April 2, 2022.
1182 CR Y • Ashland, Kansas 67831 • Office (620) 635-2156 • GAR@GardinerAngus.com • www.GardinerAngus.com The Henry & Nan Gardiner Family • Mark (620) 635-5095 • Greg (620) 635-0233 • Grant (620) 635-0382 • Cole (620) 635-0727 • Ransom (620) 635-0283 Proud to be a founding member of U.S. Premium Beef. More than $11.31 million in premiums and dividends have been paid to GAR customers using USPB delivery rights.
One Stop Shop March 4, 2022 4 p.m. CST Stanley Stout Center
SELLING 40 FEED-EFFICIENCY TESTED BULLS 20 Angus, 10 Simmental and 10 Hereford 41 FEMALES 20 Fall-Bred Cows and 21 Commercial Heifers 3 AQHA RANCH PERFORMANCE HORSES K-STATE PUREBRED BEEF UNIT 2200 Denison Avenue • Manhattan, KS 66502 asi.ksu.edu/bullsale Shane Werk, KSU PBU Manager - 785.565.1881 Dave Nichols - 785.317.4994 For a sale book: bullsale@ksu.edu
season tend to stick around longer. In lieu of documenting specific heifer birth dates, Thomas Short, Zoetis associate director, outcomes research, suggests identifying which heifers were born in the first 20 days of the season, the next 20 and so on. Traditionally, Andersen says replacement heifer selection revolves around visual appraisal—looking like a good cow—and when possible, picking early-born heifers sired by proven A.I. bulls that are superior for maternal traits. It’s no different at the Andersen family’s Nebraska cow-calf operation. Unfortunately, Andersen says the approach means culling some heifers
that should have been retained and visa versa. Various research suggests it takes about four years of production to break even on replacements. That’s where genomics can offer added opportunity.
Genomics Add to Replacement Selection “We are not trying to replace good cowboy common sense,” Andersen says. “The technology is meant to augment time-tested visual appraisal, such that we can evaluate traits in the unseen world that we know relate to the lifetime productivity of a given set of females.”
LIVESTOCK RISK PROTECTION - The Livestock Risk Protection Plan enables cattle producers to protect themselves against market price declines. Essentially, LRP is a tool to insure your equity position if the market drops unexpectedly. - Producers can customize coverage based on the type of feeder cattle or fed cattle, weights, number of head, sale dates, and expected sale price. Feeder cattle prices are based on the Chicago Mercantile Exchange and fed cattle prices are based on the Agricultural Marketing Service. - Contracts are available from 13 weeks to 52 weeks and coverage levels range from 70% to 100%. Producers have the opportunity to take advantage of federal subsidies which range from 35% to 55%, depending on coverage levels. This is a change from previous years where federal subsidy levels were capped at 13%. - Producers can choose to cover from 1 head up to 6,000 head per sales contract and can cover a maximum of 12,000 head per year. If the actual ending value is below the coverage price, the producer will receive an indemnity payment for the price difference. An example from the Nov. 29, 2021, market with a 39-week contract covering 98% of the board price is shown below.
In this example, the first row of 100 steers shows the producer protected his $64,193 investment by insuring he would receive a minimum of $133,492 at the sale’s closing. This insured a gross profit of $65,287 or $652.87 per steer. LRP can be customized to protect any operation and multiple contracts may be secured throughout the year. For more information on Livestock Risk Protection, please call: Brian Youngblood at 417-825-1203 or Kevin Charleston at 417-850-5470.
page 16 Winter 2022
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Tests today can provide genetic predictions for a host of individual performance traits in commercial heifers. Predictions are expressed either as a score or as a GEPD, along with the associated animal ranking, relative to a commercial cattle reference population. These genetic predictions typically come with various economic indexes that combine genetic merit for traits important to the given index. Different companies measure fertility differently. For instance, providing an estimation of how many more or less calves a female will produce in her lifetime, as opposed to the likelihood she will conceive or remain in the herd for a particular number of years. Andersen points out the information also enables making more precise mating and bull buying decisions for individual heifers and cows going forward. An added benefit of most available genomic tests today is parentage verification. In multisire pastures, that provides opportunity to match calves to individual bulls that have been genomically profiled. It helps track which bulls are contributing the most. It also helps manage inbreeding and future bull selection, Andersen says. Short points out there are differ-
Now on
ences between seemingly similar tests from different companies. Reasons include the reference population used to design the test and to calculate subsequent genetic predictions. When considering a specific genomic test, Short advises asking how accurate the test’s predictions are for the specific breed and type of cattle you want to test. “Keep in mind, heifers retained bare the total cost of all of the candidates tested,” Short says. “For instance, if it costs $300 to test 10 replacement heifer candidates and you keep five, the cost is $60 per heifer retained.” “As powerful as genomic tests can be in aiding selection, they cannot replace the foundational elements of planned crossbreeding and bull selection,” Andersen stresses. He points out that next to feed costs, cow depreciation typically represents the highest annual cost in commercial cow-calf operations. “Genomic technology available today gives cow-calf producers easy access to the power of GEPDs and economic selection indexes to make informed replacement female selection and breeding decisions,” Andersen says. This article first appeared in Progressive Cattle.
Selling 100+ Bulls and Females March 5th in Pawnee Rock, KS. All bulls have GrowSafe Feed Efficiency data and genomic-enhanced EPDs.
With little to no influence in the commercial beef industry in the last half-century, Shorthorn and Shorthorninfluenced genetics will produce maximum heterosis. And as Loving Farms has dominated performance in the Shorthorn breed with over 90 dams and sires recognized as Pacer and Pacesetter animals in the last six years, there is no better place to start.
ASH VALLEY ANSWER 0260 2021 High-selling bull to Leachman Cattle Co of Colorado Top 1% $Profit, Leachman’s all-encompassing $Index
page 18 Winter 2022
Call, text or email for a catalog. Marty Loving: 620.786.2018 | Scott Loving: 620.786.1369 scott@lovingfarms.com | www.LovingFarms.com
Margin Battle Brews Cattle prices are on the rise, but so are input costs. By Wes Ishmael
Long expected cattle price recovery picked up steam through December as front-end fed cattle supplies dwindled in tandem with continued beef demand strength. The five-area direct fed steer price the first week of December was $140.33/cwt., which was $11.10 more than a month earlier and about $30 more than a year earlier. Derrell Peel, Extension livestock marketing specialist at Oklahoma State University explains much of the improvement stems from getting past supply chain disruptions—stretching back to the Tyson packing plant fire in Aug. 2019— which depressed cattle prices and extended the timing of cyclically peak beef production. “Long term reductions in packing industry infrastructure, combined with chronic labor limitations, which predate but were made worse by COVID-19, added months to the time needed to improve the fed cattle market situation,” Peel explains in weekly market comments. Now, barring any new packing disruptions, improving supply fundamentals can take the wheel. “The industry will be better positioned to capitalize on the optimism that has been building in recent months,” Peel says. “Tighter supply and continued strong demand will take markets to higher levels.” USDA’s Economic Research Service (ERS) raised projected five-area direct fed cattle prices in the December “World Agricultural Supply and Demand Estimates,” based on current price strength and expectations of continued demand strength. In the latest World Agricultural Supply and Demand Estimates (WASDE), ERS forecasts the 2021 annual average five-area direct fed steer price $1.25 higher than the previous month at $122.56/cwt. The forecast 2022 average price increased $5 from the previous month’s estimate to $135. Prices were forecast at $138 in the first quarter, $134 in the second quarter and $132 in the third quarter. The 2021 average price was projected at $122.56. Similarly, ERS increased forecast prices for feeder steers, basis 750800 lbs. at Oklahoma City, in the December “Livestock, Dairy and Poultry Outlook.”
The forecast 2022 annual average feeder steer price was projected $3.50 higher than the previous month’s estimate at $159.00/cwt. The 2021 estimated annual average increased $1.25 to $146.80. So, next year’s annual average price is projected to be $12.20 more than in 2021. ERS forecast the average feeder steer price at $158 in the first quarter,
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Dan Leo — 308-750-0200 — sales@apexcattle.com — 1146 7th Avenue, Dannebrog, NE 68831
W W W
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Catalogs Mailed Upon Request, Call or Email Today! A P E X C A T T L E . C O M HETEROSIS...DON’T BE IN BUSINESS WITHOUT IT! F&R Livestock Resource page 19
15th Annual Bull Sale 5 PM, Saturday, March 12, 2022 Kearney, Missouri
Selling 160 bulls
Free Nationwide Delivery One half of bulls are 18 months old • First Year Breeding Guarantee
Richmond, Missouri Manager: Chris Peuster 816-529-2190 www.WrightCharolais.com
Drought Lingers Resurgent La Niña conditions this winter could continue to challenge drought recovery in some areas.
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page 20 Winter 2022
$154 in the second quarter and $159 in the third quarter. CattleFax is even more bullish. In December, Kevin Good, CattleFax analyst and vice president of industry relations updated the price outlook he shared at October’s American Hereford Association annual membership meeting and conference. In 2022, CattleFax projects calves to average $205/cwt., compared to $170 in 2021; yearlings to average $168, compared to $140 in 2021; fed steers to average $140, compared to $121 in 2021. “The early 2021 tailwind of record profitability for beef packers would typically bring significant slaughter capacity expansion, but this is not the case. Low farm-level cattle prices from 2019 through mid-2021, combined with the extreme drought in the Western U.S., have set the stage for lower feeder cattle supplies for at least the next 2-3 years,” according to the CoBank 2022 outlook report. “Expect the major packers and smaller independents to fiercely battle for fed cattle supplies, which in turn, will raise cattle prices and moderate packer margins.”
Based on the U.S. Drought Monitor at the end of November, 69% of the U.S. was abnormally dry or worse with more than 53% in some degree of drought (D1-D4). At the same time last year, 67% of the nation was abnormally dry or worse and 48% was in some degree of drought. Peel notes higher feed prices challenge feedlots, as well as cow-calf and stocker producers, especially in drought areas with reduced feed and forage availability. “Many beef cattle operations have already made significant adjustments and will have very little flexibility if the current drought extends into 2022. This could result in another severe round of cow liquidation in the first half of next year,” Peel says. “A decade ago, severe drought caused the unplanned liquidation of some 2 million beef cows and affected cattle markets for several years, arguably up to the current time. It is possible it could happen again.”
Inflation and Input Cost Add Pressure On the other side of the ledger it appears producers will battle elevated costs this year, borne by continued COVID-19 supply chain disruptions, global trade patterns and rising inflation. Animal protein supply chains face across-the-board cost inflation with
the most significant increases coming in four key areas—animal feed, labor, energy and freight, according to the Rabobank Global Animal Protein Outlook 2022. Analysts with the Livestock Marketing Information Center shared perspective on feed costs in a recent Livestock Monitor. Using Kansas Focus on Feedlot data from Kansas State University as the reference, they explain average feedlot cost of gain for steers was up 32.8% ($27/cwt.) year to date and heifer cost of gain was up 37.2% ($32). The December WASDE pegged the season average corn price at $5.45/bu. Price acceleration is even more glaring when considering fertilizer cost. Based on the Agricultural Marketing Service Illinois Production Cost Report (a bi-weekly report), Livestock Marketing Information Center (LMIC) analysts say the average price for anhydrous ammonia the last week of November was $1,434.38/ton, more than triple year over year. Plenty of that has to do with runaway natural gas prices. “Since the start of the year, anhydrous ammonia prices have increased 186.5% or $934 per ton, and since late-September prices have jumped 82.0% or $646,” according to LMIC analysts, in the Livestock Monitor. Other key fertilizer ingredients share the same trajectory. For instance, Dave Franzen, Extension soil science specialist at North Dakota State University explains, “China has supplied about a third of the world’s phosphate, and it has essentially banned exports through 2022. That puts the burden of supply on other countries, including the United States.” Consequently, with U.S. mine and production expansion limited due to environmental concerns, Franzen says, already-high phosphate will continue to increase at least through 2022. “The U.S. farm economy will continue to struggle with the ongoing supply chain dysfunction and cost inflation issues that emerged in the
summer of 2021,” according to the CoBank report. “Historically strong prices will be more than offset by
increases in cost structure for nearly all crop production including row crops, fruits and vegetables, and hay. CoBank
economists do not anticipate any significant pullback in farm-level costs until Q3, at the earliest…The single
36TH PRODUCTION SALE SATURDAY
FEBRUARY 12, 2022 12:30 PM AT THE RANCH
SELLING 100 BULLS JN BALDER C245
JN BALDER E431
HB011782
JN BALDEE B431 ET
JN BALDER E431 JN BALDER A472 ET JN BALDEE 1245 JN BALDER 8622
FREE DELIVERY RECORDED IN
JN BALDEE 050
JN BALDER F637 EFBEEF FOREMOST U208 SCHU-LAR SELECTION 16C SCHU-LAR 913 OF 208 M326 ET
JN BALDER F637
HB014414
JN BALDEE 1637
JN BALDER Z426 ET JN BALDEE 1232
VISIT WWW.CATTLETRACS.COM
This sale will be broadcast live on the internet.
JN BALDER D036
JN BALDER F674
HB014397
JN BALDEE 1674
JN BALDER F674 JN BALDER B844 JN BALDEE 1036 JN BALDER A426 ET JN BALDEE 519
Real time bidding & proxy bidding available.
Birthplace of Black Hereford Cattle
JN BALDER D451
JN BALDER F540
HB014355
JN BALDEE 1540
JN BALDER F540 JN BALDER A426 ET JN BALDEE 451 JN BALDER Z426 ET JN BALDEE 1212
Watch a video of sale cattle on our website. www.blackhereford.com
Office (913) 727-6446 • Dirck Hoagland (816) 225-1246 25332 Wolcott Road • Leavenworth, KS 66048 • www.blackhereford.com
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F&R Livestock Resource page 21
biggest wildcard for U.S. agriculture is export sales to China, currently the largest export market for U.S. farm products.”
U.S. Beef Exports Continue Record Pace U.S. beef export value soared in October (most recent data available), up 48% year-over-year to $956.9 million, the second highest monthly level on record, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef export volume was 7.5% more at 115,709 metric tons (mt). Through the first 10 months of the year, beef export volume totaled 1.19 million mt, up 17% from a year ago. Export value increased 38% to $8.53 billion, surpassing the full-year record
of $8.33 billion established in 2018. Beef export value per head of fed slaughter equated to $439.46 in October,
up 55% from a year ago. The January October average was $394.14, up 34%. “USMEF has always prioritized
KA-CHING.
MORE POUNDS. MORE CALVES. MORE PROFIT. Hereford bulls increase net profit by $51 per cow per year. That’s $20,000 in additional revenue for a typical 400-cow outfit, thanks to increased fertility and herd size. Herefords are also the efficiency experts, proven to add value to calves in the feedyard — $30 per head in profitability. That’s real money and real results.
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AHA_FandR_JrPage_Polled_KaChing_7x9_r1v1.indd 1
page 22 Winter 2022
12/7/21 2:08 PM
market diversification, and this is more critical than ever now that the red meat industry faces unprecedented transportation challenges and rising input costs,” says Dan Halstrom, USMEF president and CEO. “Exports (U.S. red meat) will likely reach about $18 billion in 2021, which is a remarkable achievement. While global demand is tremendous and we are cautiously optimistic about further growth in 2022, supply chain pressures are not easy to overcome and are a growing concern for exporters and their international customers.”
Supply Chain Woes Unabated Recently, the Federal Trade Commission (FTC) ordered nine large retailers, wholesalers, and consumer good suppliers to provide detailed information aimed at helping the agency shed light on the causes behind ongoing supply chain disruptions. “Supply chain disruptions are upending the provision and delivery of a wide array of goods, ranging from computer chips and medicines to meat and lumber. I am hopeful the FTC’s new study will shed light on market conditions and business practices that may have worsened these disruptions or led to asymmetric effects,” says FTC Chair Lina M. Khan. “The FTC has a long history of pursuing market studies to deepen our understanding of economic conditions and business conduct, and we should continue to make nimble and timely use of these information-gathering tools and authorities.” FTC issued orders to Walmart Inc., Amazon.com, Inc., Kroger Co., C&S Wholesale Grocers, Inc., Associated Wholesale Grocers, Inc., McLane Co, Inc. Procter & Gamble Co., Tyson Foods, Inc., and Kraft Heinz Co. In addition to better understanding the reasons behind the disruptions, the study will examine whether supply chain disruptions are leading
“USMEF has always prioritized market diversification, and this is more critical than ever now that the red meat industry faces unprecedented transportation challenges and rising input costs,” —Dan Halstrom to specific bottlenecks, shortages, anticompetitive practices, or contributing to rising consumer prices. The orders require the companies to detail the primary factors disrupting their ability to obtain, transport and distribute their products; the impact these disruptions are having in terms of delayed and canceled orders, increased costs and prices; the products, suppliers and inputs most affected; and the steps the companies are taking to alleviate disruptions; and how they allocate products among their stores when they are in short supply. “This next year has the potential to accelerate structural change as a result of escalating costs,” says Christine McCracken, senior animal protein analyst for Rabobank. “Success will most likely go the players that adapt to the changing business environment; embracing consumer preferences for sustainability and preparing for a surge in demand as economies continue to reopen and adjust following COVID-19-induced lockdowns.”
OECD projects real global gross domestic product (GDP) growth at 5.6% in 2021, 4.5% in 2022 and 3.2% in 2023. For the U.S., OECD projects real GDP at 5.6% in 2021, 3.7% in 2022 and 2.4% in 2023. “The COVID-19 omicron variant is shaping up to be the wild card of early 2022 and it could delay the rebalancing of the U.S. economy,” says Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “If omicron disrupts the services industry, the majority of consumer spending will again revert to goods, compounding supply chain and inflation problems. However, at this early stage, we expect omicron to have only a modest impact on the economy.”
Editor’s message continued Continued from page 3 _____________________________________
not seen a return nor will likely see a return soon. “Meatingplace” magazine recently reported research funded by Open Philanthropy, a research/investment firm and a major supporter of Good Food Institute found that “if produced at scale, cultivated (cultured) beef would cost approximately $17 per pound, with smaller production scales resulting in beef priced at over $23 per pound. According to the latest
USDA data, conventional ground beef averaged $5.05 per pound in September 2021.” No marketing system in any industrial space is perfect, including agriculture. The benefits of a robust system built on supply and demand are signals sent by consumers around the world, which are uncomplicated and undeniable. Today, quality is king.
Economic Recovery Slows In the meantime, global economic recovery continues but with less momentum and is becoming increasingly imbalanced according to the latest Economic Outlook from the Organization for Economic Cooperation and Development (OECD). “The strong rebound we have seen is now easing and supply bottlenecks, rising inflation, and the continuing impact of the pandemic are clouding the horizon,” says OECD Secretary-General Mathias Cormann. “The risks and uncertainties are large, as is being seen with the emergence of the Omicron variant, aggravating the imbalances and threatening the recovery. Keeping the recovery strong and on track will entail addressing a number of imbalances, but above all it will mean managing the health crisis through better international coordination, improving health systems and massively stepping up vaccination programs worldwide.” F&R Livestock Resource page 23
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Beef Quality Bar Rising Consumers are willing to pay more for what they want. Domestic beef demand is the strongest it has been in three decades. Beef gained about 8% market share over the last two decades. U.S. beef exports through September 2021 were on a record pace in terms of volume and value.
Kevin Good, CattleFax analyst and vice president of industry relations, said this is all a result of listening to the consumer. Good was speaking to members of the American Hereford Association (AHA), guests and
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Certified Hereford Beef ® is an example of a quality-based program offering a value-based grid to producers and a dependably satisfying eating experience to consumers. Good expects the quality grade trend to continue. “There will be a time when we produce 20-30% Prime in the national herd, and it’s not that far away,” Good predicted. “As we think about what our customer is demanding, let’s remember that last year, with COVID, we couldn’t sell Prime through restaurants, it went through retail. Every major retail chain in the U.S. now has a premium product offering. Consumers want it, so we’re going to have to provide it.”
Certified Hereford Beef® is an example of a quality-based program offering a
Post Rock Cattle Co.
Cowman’s Kind Bull and Female Sale
value-based grid to producers and a dependably
February 26, 2022
satisfying eating experience
at the ranch, Barnard, Kansas
to consumers. allied industry partners during an educational forum at the organization’s annual membership meeting and Conference in Kansas City, Missouri. “Think about grade, think about consistency. They are the driving points,” Good explained. “Today, we have a much better product than we had in the past and our customers are rewarding us with more dollars.” For perspective, 72.7% of all beef cattle graded Choice in 2020 and 10.2% graded Prime, according to USDA’s estimated national grading summary. Just 10 years earlier, 60.1% were Choice and 3.4% were Prime. Through October this year, 72.6% were Choice and 10.1% were Prime. Whether regarded as the proverbial chicken or egg, Good pointed out carcass quality increased as the industry applied premiums and discounts in order to get what consumers wanted. “About 70% of the [fed] cattle we sell in the U.S. today are sold on a grid or formula, so cattle are rewarded once the hide is taken off,” Good explained. “Plainer, poorer cattle that used to be par are now at a discount. The premium has gone away for middle-of-the-road cattle. You still have very distinct premiums for the top end.”
200 Lots Sell
120 Gelbvieh and Balancer Bulls 80 Gelbvieh And Balancer Females Every 6 year old female sells
CED 13
BW 0.5
WW 74
YW 105
MK 23
TM 60
CEM YG 6 -0.19
CW 27
REA 0.66
MB FPI 0.33 80.95
EPI 84.32
DCSF 66J2 Homozygous Black Homozygous Polled Purebred Gelbvieh Bull An example of the purebred Gelbvieh bulls selling. He was crowd favorite in the 2022 National Pen of 5 bulls at Cattlemen’s Congress. His dam stems from the Post Rock Twila cow family. 1346 yearling weight and 109 weaning ratio.
CED 10
BW 1.5
WW 71
YW 102
MK 6
TM 41
CEM YG 3 -0.05
CW 25
REA 0.32
MB FPI 0.45 77.73
EPI 77.54
CED
BW
WW
YW
MK
TM
CEM
YG
CW
REA
MB
12
2.4
77
111
15
53
6
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50
0.81
0.12 73.59
FPI
DCSF 103J1 Homozygous Black Homozygous Polled 81%GV 18%AN Bull Lead off bull in our National Pen of 5 bulls. Balancer and high percentage bulls like 103J1 sell. Calving ease, performance, carcass and eye appeal are combined in the bulls selling like 103J1 pictured above.
DCSF 258D8 Homozygous Black Homozygous Black 47% Balancer Cow Balancer females with longevity, eye appeal and great production records like 258D8 sell in the 2022 Cowman’s Kind sale. Selling 80 Balancer and Gelbvieh females that are dams and sisters to many of the bulls selling in our annual Cowman’s Kind sales.
3041 E Hwy 284, Barnard, KS Office 785-792-6244 Leland Clark 785-392-0888 Kyle Cavalli 785-531-1947 email: prcc@twinvalley.net
“Where calving ease, performance and eye appeal come together” Post Rock Farmers Ranchers ad 2022.indd 1
1/5/22 9:18 AM
F&R Livestock Resource page 25
Hurricane-Force Winds Spark Wildfires in Kansas Destroying Homes and Killing Cattle By Greg Henderson
High winds and dry conditions resulted in multiple wildfires in western Kansas on December 15. At least a dozen homes burned and at least three people were hospitalized. Fires were reported in Sheridan, Trego, Ellis, Russell, Osborne, and Rooks County. Fires were also reported in other counties. Ranchers in Oklahoma and Texas also suffered wildfires on the same day. Portions of Guymon, Okla., were evacuated the same day afternoon as crews battled wildfires on
the edge town. Texas reported at least five wildfires. This storm stands out for the record-setting warmth that fueled it, the number of reports of destructive winds it generated and for spreading severe thunderstorms, including tornadoes, farther north than previously observed in December. At times, the winds gusted more than 100 mph in parts of Kansas, stoking wildfires from the Great Plains to the Missouri River Valley. Across Kansas, the winds limited
visibility and sent semitractor-trailers weaving. Interstate 70 and a handful of other highways in western Kansas were closed down for hours. In Russell County in central Kansas, wildfires burned into the night, prompting evacuations in Waldo, Paradise and Fairport, and destroying multiple homes. Crews in the town of Russell worked through the night to restore power. The wildfires prompted the Kansas Livestock Association and other ag groups to begin coordinating dona-
GENETICS
THAT PAY
$20+ MORE PER
CARCASS
Success on the ranch is measured in dollars. Data from the Tri-County Steer Carcass Futurity Cooperative finds packers pay $20 to $34 more for SimAngus-™ and Simmental-sired cattle than English-sired counterparts.a Simmental influence also pays at auction. SimAngus-sired steer calves sold through Superior Livestock Auction earn more at sale time than all other calves.b It’s no wonder the percentage of SimAngus calves marketed through the industry’s largest video auction has grown eightfold since 2010.
STAND STRONG
SIMMENTAL 406-587-4531 • simmental.org
a Effect of sire breed group on carcass value of feedlot cattle harvested through Tri-County Steer Carcass Futurity Cooperative, Lewis, Iowa, 2002 to 2018. Odde, K. & King, M. (March 2021). Kansas State University.
Relationships Among Sire-Breed Group, Calf Sex and Year Group on Carcass Traits. Breeds represented in the English-sired group: Angus, Red Angus, South Devon, Hereford and Shorthorn.
b Effect of sire breed on sale price of beef steer calves sold through Superior Livestock Auction, summer 2020. Odde, K. & King, M. (December 2020). Kansas State University analysis of 394,900 head of beef calves.
Estimating the Value of SimAngus-Sired Calves: Superior Livestock Auction – Summer Sales, 2020. For lots of 50 head or more.
SIM_Ad_F&R_7.5X9.5_GeniticsThatPay_r1v1.indd 1
page 26 Winter 2022
11/18/21 8:09 PM
tions of feed, fencing supplies and cash for affected ranchers. The bulk of the acres burned are within the counties of Russell, Osborne, Rooks and Ellis. Ranchers in the hardest hit areas lost fence, livestock and feed resources, KLA said. Ranch homes and outbuildings also were among the losses. Heartland Regional Stockyards at Plainville will serve as a collection and distribution point for hay and supplies. Heartland has some cane hay on hand for those who need feed quickly. Contact the auction market at (785) 688-4080, Landon Schneider at (785) 259-3234 or Brandon Hamel at (785) 434-6280. Russell Livestock also is taking hay donations. Stockwater tanks are a need, too. A supply donation site for those impacted by fire in southwestern Lane County and surrounding counties has been set up at 3 E Rd 120, Dighton, KS. To coordinate a drop-off, call Erik Steffens at (620) 397-1687. Cash donations can be made through the Kansas Livestock Foundation (KLF), KLA’s charitable arm, by visiting KLA.org or sending a check, with “wildfire relief ” written in the memo line, to 6031 S.W. 37th, Topeka, KS 66614. All proceeds will be used to help those affected by the recent weather event. If you are in need of supplies or would like to make an in-kind donation, call KLA at (785) 273-5115. “The winds made it difficult to get burning fires contained,” said Gov. Laura Kelly. “Prepositioning firefighting personnel and equipment in western Kansas along with those assets responding, will allow our aviation assets to quickly respond and keep Kansans safe. Local responders work heroically to respond when wildland fires threaten their communities and the state stands ready to back them up, if needed.” “Much of Kansas is recovering from the storms and wildland fires,” said Mark Neely with the Kansas Forest Service. “The Kansas Forest Service is working with state and local partners to get fires under control and mopped up so that we can return to normal conditions.” Reprinted with permission from Drovers online.
Politics, Cattle and Beef Current issues that could impact cattle production and markets. “Pre-COVID, we had a just-in-time meat supply chain,” according to Scott Bennett, director of congressional relations for the American Farm Bureau Federation (AFBF). Packing plants chugged at full capacity, harvest animals left for slaughter as quick as they were ready, and meat left the plants and entered the supply chain immediately. “After seeing some grocery store shelves empty in April and May of 2020, seeing part of the supply chain just jam up, I think the general public is wanting to go to a just-in-case meat supply chain,” Bennett said. He explained that’s the impetus behind consumer and lawmaker interest in developing small, regional packing capacity. Bennett was speaking to members of the American Hereford Association, guests and allied industry partners during an educational forum at the organization’s Annual Membership Meeting and Conference in Kansas City, Missouri. Some producer-relevant issues lawmakers are wrangling with stem directly from the pandemic, while others continue their longtime simmer. These are other insights Bennett shared.
better, and it takes time,” Bennett explained. Now, technology enables making immediate changes like polling horned cattle or making black ones red. Less talked about gene edits include such things as making cattle resistant to specific diseases or more adapted to specific climates. So far, U.S. laws mostly prohibit gene-editing technology, so developers are going to other countries.
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Price Discovery Bennett noted heightened interest in cattle markets by Congress and producers. Plenty of that was driven by the eye-popping price spread between wholesale beef prices and fed cattle prices. AFBF is currently the only producer trade association in Washington, D.C., that supports some form of mandatory minimum cash fed cattle trade, in order to increase price discovery. However, Bennett pointed out it would not necessarily be the silver bullet many want. “Increased price discovery doesn’t necessarily mean higher prices. In fact, it could be the reverse,” Bennett said. “It could lower prices for producers.” On a related note, Bennett emphasized the need for Congress to reauthorize Livestock Mandatory Reporting, which mandates public price reporting.
Gene Editing “I’m sure it’s alarming to a lot of folks. My family [Knoll Crest Farm] has had Hereford cattle since 1944. The reason we are in the business is that generation after generation we selectively breed those cattle to become
“American Farm Bureau, with other trade associations, is working vehemently with USDA and FDA to try to come up with some kind of regulatory protocol that makes sense, that actually encourages development of this technology,” Bennett explained. “Even though you may disagree with the potential it has, it’s much better to have it in our own backyard than in another country where we don’t have the ability to control the outcomes.”
North Missouri Bull Sale
February 26, 2022 Kingsville Livestock, Kingsville, MO Selling 150 BLACK Balancer & Gelbvieh Bulls! All 18 months old!
Arkansas Bull Sale
March 5, 2022 Hope Livestock, Hope, AR Selling 70 Angus, Balancer & Gelbvieh Bulls! 2 yr olds & 18 months!
Red Reward Bull & Female Sale
March 12, 2022 Wheeler Livestock, Osceola, MO Selling 60 RED Balancer & Gelbvieh Bulls & RED females! Registered & Commercial!
South Missouri Bull & Female Sale
March 26, 2022 Joplin Regional Stockyards, Carthage, MO Selling 150 BLACK Angus, Balancer & Gelbvieh Bulls! 18 months & yearlings! Also BLACK females! Registered & Commercial!
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F&R Livestock Resource page 27
Dog Whispering
Humor
By Wes Ishmael
As best as Wink and Jasper could tell, this was a brand new game and more fun than any they could remember. Here they were—a young brace of Welsh Corgis—basking in the cozy, warm cab of a slow moving, pleasantly
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page 28 Winter 2022
humming pickup; a bowl of water on the floorboard with their favorite toys scattered around. And they could see their beloved master, Izzy, tapping and rapping on one window while making funny faces, then trotting around to the
window on the other side and doing the same, hollering and pleading as he went. Izzy, on the other hand was straining to see through the thickening snow while trying with increased urgency to figure out how to extricate his pups from doom as his one-ton lurched relentlessly toward the edge of a steep draw. Never mind how he was going to explain to his wife how the dogs locked him out of his own pickup, which he’d shifted into grandma gear to idle along as he tossed hay from the back to newly-arrived calves. As he jogged along, yelling through the glass that everything was alright, Izzy was frantically searching the ground, his pockets and the flat bed for anything stout enough to break a window. He still hadn’t given up on his dogs helping, though. “See that button there, just jump on that button right there,” shouted Izzy, pointing in the general direction of the automatic lock switch. “Just like you did a while ago,” encouraged Izzy. Tongues hanging out in excitement, Wink looked at Jasper and then Izzie. Jasper looked at Izzie and then Wink. Simultaneously, both dogs made a circuit of the bench seat, jumped to the floor for a round and then vaulted back onto the seat, perching on the armrest to peer out the window across the cab from Izzy. Izzy was rapping on the window with more urgency. “Wink, come on and hit the button for daddy. I know you can do it.” Wink was the elder and usually more dependable than Jasper. They were the only purebred stock Izzy had ever owned. “Right over here, buddy, jump on the button.” In one of those uncanny extra-sensory moments between man and beast, Wink turned to look at Izzy, cocked his head, padded purposefully across the seat, lifted up is paw and… click, there it was. “Yes!” shouted Izzy to the heavens as he heard the sound of liberation and reached for the door latch. Click! “No!” cried Izzy, yanking frantically on the latch. What fun, thought Wink. Izzy jammed his nose against the glass and pleaded, “Just one more time, little buddy. Just one more time for daddy.” Click. “Yes!” Click. “No!” Jasper tackled Wink. They rolled off the seat, down to the floorboard and across the accelerator, propelling Izzy’s truck past him. “Nooooo!” As Izzy caught back up with his ride he could see that the drop-off was
K-State ASI in Manhattan Brief Join on March 3 and 4 Mark your calendars to join the Kansas State University Animal Sciences and Industry faculty, staff and students in Manhattan on March 3 and 4 for the 2022 Stockmen’s Dinner, Cattlemen’s Day and Legacy Sale. The 51st Stockmen’s Dinner hosted by the Livestock Meat Industry Council, Inc (LMIC) will take place on Thursday, March 3, beginning at 6 p.m. at the Stanley Stout Center in Manhattan. Pat Koons will be honored during the event as the 2022 Stockman of the Year. Registration will be available online at asi.ksu. edu/stockmensdinner.
Pat Koons
The 109th Annual K-State Cattlemen’s Day will be Friday, March 4, hosted in Weber Hall. The day will start at 8 a.m. with refreshments, educational exhibits and a commercial trade show.
The program begins at 9:30 a.m. Lunch will be provided. Visit KSUBeef.org for a detailed schedule and registration information as it becomes available. The 45th Annual Legacy Bull and Female Sale will begin at 4 p.m. at the Stanley Stout Center, 2200 Denison Avenue in Manhattan. To learn more about this year’s offering and to request a sale catalog visit asi.ksu.edu/legacysale. Watch for more information about all three events to be posted to asi.ksu. edu. For questions about any of the events, contact Lois Schreiner at 785532-1267 or lschrein@ksu.edu.
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100 - Age-Advantaged, Feed Efficiency Tested Red Angus Bulls 100 - Stout Yearling Bulls (Red Angus & SimAngus) 50 - Fall calving Commercial bred Red Angus females 12 - “U Pick Em” Front-end Registered Red Angus Open Heifers
RANCHES
2346B N Road ∙ Strong City, KS 66869 620.340.7461 (Joe) 620.340.9774 (Daniel) info@mushrushranches.com MushrushRanches.com Follow us on FB at Mushrush Red Angus
F&R Livestock Resource page 29
only about 200 feet ahead. He vaulted to the bed, upended the nut bucket and spied a hoof pick. He grabbed the pick and slammed it against the
window. Not even a crack. “Wing glass,” thought Izzy. “No wing glass. I told them that was a problem when I bought it… Come
on, you worthless flea bags, open up!” Pant. Slurp. Bark. “Plug wires,” thought Izzy in triumph. “All I have to do is jerk the wires.”
Just For Fun by Ted Foulkes
He struggled to the front of the pickup, climbed to a precarious perch on the slippery brush guard and searched for the latch. “New game!” barked Wink and Jasper as they tried to climb onto the dashboard, licking the windshield and clawing at the ever-present mess of papers, new and used vaccine bottles and chew cans. “Where is it, where is it?” wondered Izzy, fingers numbly sliding back and forth beneath the hood. That’s when the left front tire hit a sizable rock, launching Izzy across the hood, off the right side and down to the frozen ground. He rolled over on all fours, looking helplessly at his dogs, who were looking out the back window at him, tongues hanging out in glee. “Wink. Jasper. My truck,” croaked Izzy. “I can’t look.” After what seemed like an eternity, staring at the ground in despair, it occurred to Izzy that he hadn’t heard a crash. There should have been a crash by now. Izzy looked up and started to run. The pickup had simply stopped, right at the precipice. For once, ignoring the gas gauge had paid off. Then he heard that joyous sound again: Click.
Green Garden Angus Calving Ease
Carcass
$Values
63rd Annual Sale
Monday April 4, 2022 1:00 pm
2335 10th Rd Lorraine, KS 67459
Dick & Shelly Ben, Anisha, Elliott & Sophie Dustin, Elizabeth, Cassie, Billy, Annabelle & Jane www.greengardenangus.com
page 30 Winter 2022
EST 1932
Selling 90 Registered Angus Bulls
Featuring: Heifer Pick of the Herd janssen@greengardenangus.com
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O
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FRIDAY, APRIL 22, 2022
G LE
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OFFERING 25O BULLS DEVELOPED ON FLINT HILLS GRASS
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GENETICS
to
FEEDLOT
to
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COVERING ALL FACETS OF THE BEEF INDUSTRY
