National Cattlemen’s Beef Association News

NCBA

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National Cattlemen’s Foundation Accepting Applications for Beef Industry Scholarships. The National Cattlemen’s Foundation (NCF) is now accepting applications for the 20222023 CME Group Beef Industry Scholarship. Ten scholarships of $1,500 each will be awarded to outstanding students pursuing careers in the beef industry.

Introduced in 1989 and sponsored by CME Group, the scholarship identifies and encourages talented students who play an important role in the future of food production. Students studying education, communication, production, research, or other areas related to the beef industry are eligible to apply for the annual scholarship program.

“We are proud to partner with the National Cattlemen’s Foundation and NCBA to help advance education opportunities for these hardworking students,” said Managing Director of Agricultural Products at CME Group, Tim Andriesen. “Risk management plays a critical role in the agricultural industry and these scholarships help develop our future leaders and ensure the continued success of beef production in the United States.”

Eligible applicants must be a graduating high school senior or full time undergraduate student enrolled at a two or four year institution. The application includes a one page letter expressing their career goals related to the beef industry and a 750 word essay describing an issue in the beef industry and offering solutions to this problem. The applicant or a family member must be a member of the National Cattlemen’s Beef Association.

The application deadline is November 12 at 1:00 EST. For more information and to apply, visit www.nationalcattlemensfoundation. org. Scholarship winners will be announced during the 2022 Cattle Industry Convention and NCBA Trade Show in Houston, Texas.

Organized in 1972, NCF is a 501(c) (3) nonprofit organization providing charitable, scientific, and educational activities to benefit the cattle industry.

NCBA Supports Additional USDA Funding for Beef Supply Chains. Recently, the U.S. Department of Agriculture (USDA) announced an additional $100 million investment into the food supply chain infrastructure. The National Cattlemen’s Beef Association (NCBA) supports this step to prioritize the expansion of beef processing capacity and dedicate further resources to build a more resilient cattle industry.

“Our number one goal at NBCA continues to be opening up new opportunities for cattle producers to be profitable,” said NCBA Vice President of Government Affairs Ethan Lane. “The pandemic accentuated a number of vulnerabilities within our supply chains—chiefly the choke point at the meatpacking sector, which has resulted in unsustainable prices for cattle producers and increased the cost of beef for consumers. Today’s announcement is another step toward returning stability to the markets, and NCBA urges USDA to announce eligibility requirements and application instructions as quickly as possible.”

The $100 million announced recently is in addition to the $500 million announced earlier this year.

Background - In July 2021, Secretary Vilsack announced that USDA would invest over $500 million in federal funds to support food supply chains and simultaneously opened a public comment period to determine the most effective means of distributing these funds. NCBA submitted comments calling for federally guaranteed, low interest loans and grants to be distributed to small

meatpackers looking to expand and new market entrants desiring to construct new regional small to mid-size processing plants.

NCBA expects USDA to announce the parameters of this program soon and will provide more information as it becomes available.

NCBA Vice President Urges Congress to Listen to Producers on Cattle Markets. Recently, NCBA vice president and South Dakota rancher Todd Wilkinson testified before the U.S. House Agriculture Committee. Wilkinson addressed the need to avoid one-size-fitsall policy prescriptions and the importance of considering nuanced policies that properly address transparency, processing capacity, price discovery, and oversight in the cattle markets.

“As producers struggle to get by, large meatpackers have realized record breaking windfall profits. These profits have not been shared equitability with cattle producers,” Wilkinson said. “Because the challenges facing our industry are so diverse, it is imperative that policy makers at all levels of government remain focused on viable and tenable solutions with vast industry buy in.”

Wilkinson urged Congress to resist one-size-fits-all policy prescriptions which may have disastrous unintended consequences and instead adopt a multipronged approach to bring relief to cattle producers, transparency to the markets, and resiliency to the beef supply chain.

Wilkinson’s testimony follows months of NCBA engagement with members of Congress on complex cattle market conditions and ensures that policy solutions address the correct issues without harming producers or their profitability.

To view Wilkinson’s testimony, please visit agriculture.house.gov.

BACKGROUND

Transparency - NCBA has long supported Livestock Mandatory Reporting (LMR), which provides market information to cattle producers. Thanks to NCBA’s engagement on this issue, Congress passed a temporary LMR extension during the most recent continuing resolution. NCBA has also advocated for the creation of a cattle contract library, which would provide information on the formula contracts in use between producers and processors. This information may help cattle producers capture more value for their livestock and better plan their business strategy.

Processing Capacity - Adequate processing capacity is essential for maintaining profitability in the cattle industry and providing a steady supply of beef from pasture to plate. Currently, there is a serious lack of processing capacity or “hook space” in the production system, leading to a chokepoint at the meatpacking segment. A recent study by Rabobank found that the industry could accommodate an additional 5,700 hooks per day of processing capacity or about 1.5 million additional head per year. Unfortunately, access to capital is a major barrier to starting new processing facilities. The average start up costs are roughly $100,000 per hook, meaning that someone trying to open a modest 25-head-per-day facility must secure $2.5 million in financing just to turn on the lights. NCBA is working with USDA to secure federally guaranteed, low interest loans and grants for small, independent, or regional meat processing facilities. In July, USDA announced that it would invest $500 million in federal funds to support expanded processing capacity, and in October, USDA pledged an additional $100 million investment. NCBA is continuing to push for additional processing capacity that returns leverage to producers and meets consumer demand.

Price Discovery - Cattle producers have long witnessed the decline of negotiated fed cattle trade in favor of Alternative Marketing Arrangements (AMAs), including formulas and grids. While these AMAs may help cattle producers manage risk and capture more value for their product, these methods depend on price discovery that occurs in the direct buyer-seller interactions of negotiated trade. Current research has shown that more negotiated trade is needed to achieve “robust” price discovery within the industry. NCBA’s producer-led working group developed a framework of triggers to monitor the levels of negotiated cash trade in different regions of the country. If robust price discovery is not achieved and the triggers are “tripped,” NCBA will pursue a legislative or regulatory solution determined by the membership.

Oversight - NCBA is the leading voice for oversight of the meatpacking sector. In June, NCBA supported a bipartisan group of lawmakers pushing the Department of Justice (DOJ) to complete their investigation into possible anti-competitive practices by big meatpackers. NCBA also urged the swift conclusion of this investigation in a letter to the leadership of the House and Senate Agriculture Committees on areas of concern in the cattle industry.

NCBA’s Redbook Makes Cattle Recordkeeping Easy. 2022 Edition Now Available. For more than three decades, cattle producers have simplified their recordkeeping with a handy pocket sized booklet from the National Cattlemen’s Beef Association. The 2022 version of the Redbook is now available to help cattle producers effectively and efficiently record their daily production efforts, which can help enhance profitability and reduce stress levels.

In addition to Beef Quality Assurance (BQA) practices and proper injection technique information, the 2022 Redbook has more than 100 pages to record calving activity, herd health, pasture use, cattle inventory, body condition, cattle treatment, A.I. breeding records, and more. It also contains a calendar and notes section.

“Producers tell us year after year that these booklets help make recordkeeping easy,” said Josh White, NCBA’s executive director of producer education & sustainability. “Having BQA information right at their fingertips is helpful as well.”

Redbooks can be purchased online at store.ncba.org for $7.25 each, plus shipping. Customization, including adding a company logo on the cover, is available in quantities of 100 books or more. For more information on custom orders, contact Grace Webb at gwebb@ beef.org or 303-850-3443.

NCBA Welcomes Cattle Contract Library Bill Amid Ongoing Push for Transparency. Recently, the National Cattlemen’s Beef Association (NCBA) welcomed the introduction of the Cattle Contract Library Act, led by Representative Dusty Johnson (R-S.D.) and Representative Henry Cuellar (D-Texas).

The bipartisan bill would establish a cattle contract library within USDA’s Agricultural Marketing Service (USDAAMS), equipping cattle producers with the market data they need to make informed business decisions and exert greater leverage in negotiations with major meatpackers.

The cattle contract library is widely supported by industry groups and lawmakers on both sides of the aisle, and the introduction of this legislation comes after more than a year of NCBA pushing for the creation of the library.

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IRM Red Books Are Here

Due to increased printing costs, the price of the books have increased to $7.00/each this year. We would like to thank Performance Livestock & Feed Company and Carolina Stockyards for again sponsoring this book.

The 2022 version is now available to help cattle producers effectively & efficiently record daily production efforts, which can help enhance profitablity and reduce stress levels. In addition to Beef Quality Assurance (BQA) best practices and proper injection technique information, it has more than 100 pages to record calving activity, herd health, pasture use, cattle inventory, body condition, cattle treatment, A.I. breeding records, and more. It also contains a calendar and notes section.

Simply return the order form below, along with $7.00 for each book to: N.C. Cattlemen’s Association 2228 N. Main Street Fuquay Varina, NC 27526

You can now order them through our website at www.nccattle.com/resources/merchandise/red-book-order-form. You can also call our office at 919-552-9111 or email us at kim@nccattle.com.