F&R Livestock Resource Winter 2022

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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,

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