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INSIDE WLJ CARCASS ULTRASOUND 101 101—Like any job, being an ultrasound technician has its ups and downs. Testy cattle. Severe weather. Reliance on machines that sometimes just don’t feel the need to cooperate. It’s not always an easy job. Yet, those who arrive at the ranch, scanner in hand will tell you the job is fulfilling, rewarding, and invariably interesting. Page 4
CA REAL ESTATE ESTATE—A big question among California farmers and ranchers these days is whether this is a good time to sell the farm or, on the flip side, if this is a good time to buy a farm or ranch. Experts on land values say these two questions don’t have simple answers. Each situation is different, requiring potential buyers and sellers to weigh their options carefully. Page 5 CANDIDATE SPEAKS SPEAKS—More than 500 attendees jockeyed for a seat in a crowded auditorium to hear Herman Cain, candidate for president, during the 2011 Cattle Industry Summer Conference in Kissimmee, FL, Aug. 2, 2011. Page 6 CHECKOFF FIREWALL—The FIREWALL beef checkoff financial firewall at the National Cattlemen’s Beef Association (NCBA) is functioning as it should, according to officials of both NCBA and the Cattlemen’s Beef Board, which oversees the Beef Checkoff Program. Page 16 INDEX Beef Bits ................................... P - 3 Markets ...................................P - 10 Classifieds ...............................P - 12 Sale Calendar .........................P - 15
August 8, 2011 • Vol. 90, No. 44
A Crow Publication
Fight over Nevada pipeline goes public The fight over a planned pipeline between water sources near the Utah/Nevada border and the sprawling city of Las Vegas, NV, is heating up in advance of a series of public meetings on the project. The first meeting, held last week in a small town near the northeast corner of Nevada, saw diverse interests turn out in opposition to the Southern Nevada Water Authority’s (SNWA) plan to pipe water more than 300 miles to Las Vegas to accommodate the city’s needs now and in the future. The meetings, which are to allow the public to comment on SNWA’s draft environmental impact statement (EIS), are being held by the Bureau of Land Management (BLM) to assess the overall impact of the project on those most affected by the pipeline, in-
cluding farmers, ranchers, hunters, business owners and others who will feel the effects of less water in the already arid region. SNWA’s draft EIS, which was published in June, covers just the first phase of the project which, when complete, will transport an estimated 170,000-200,000 acre feet each year to Las Vegas’ golf courses and resorts. That water is critical to those in the corners of Nevada and Utah who depend on the resource for their livelihoods. “The EIS did us a favor by answering some of the questions we had about this project, but it left many more unanswered,” said Susan Lynn, a coordinator for the volunteer Great Basin Water Network (GBWN), a coalition of nearly 40 organizations which is opposed to the pipeline project.
Among the concerns members of GBWN have with the project is the potential damage it will do to water users in the affected area. “We have a number of concerns with the proposal, including the fact that in some areas, it is expected to draw down the aquifer by as much as 200 feet which, if you are a rancher or you rely on
ground water irrigation, will have significant consequences,” said Lynn. “The hydrology of that area is very complex and we don’t think that they have taken that into consideration. This project will be draining water from five separate valleys and we think in some of these areas they are double See SNWA on page 9
Judge restores grazing on Jarbidge allotment A J.R. Simplot Company spokesman welcomes a federal judge’s ruling that overturns a ban on livestock grazing on some southern Idaho public lands and that states limited grazing could benefit the lands by reducing kindling that stokes wildfires. U.S. District Judge B. Lynn Winmill ruled July 22 that grazing permit holders can continue to graze livestock in 17 allotments of the U.S. Bureau of Land Management’s (BLM) Jarbidge Resource Area, reversing a decision he had rendered in March suspending grazing on the allotments. In lawsuits, environmentalists argued that grazing livestock damage habitat crucial for endangered sage grouse and trample slickspot peppergrass, an imperiled plant. In his latest ruling, Winmill said he agreed with the testimony of experts on both sides who blamed the decline in sage grouse populations primarily on wildfires. The Murphy Complex Fire in 2007 consumed 650,000 acres in the Jarbidge Resource Area, destroying 70 percent of the area’s sage grouse habitat, he noted, adding he now believes careful grazing could help protect the land by reducing the number of plants that could fuel wildfires, halting or hindering the flames. See Jarbridge on page 11
Fed cattle firm despite outside market slide
LIVE STEERS DRESSED STEERS CME FEEDER $111.00 $175.00 $135.30 WEEK ENDING: 8-4-11
Cash fed cattle trade was slow to develop last week as cattle feeders held out for higher money. The light, early trade seemed to indicate that the tactic was working, with the light volume trading at $109.50 to $111 in the Corn Belt, although there were not enough animals trading hands at midday last Thursday to call the week’s trend. Most analysts believed that the firm cutout values and continued strong export business would help push prices higher last week. The bulk of the week’s business was expected to come in a range of $110-111 live and near $178-180 on the dressed trade. Outside markets might be the
one wildcard in the mix for the near-term. Equity markets were selling off hard early last Thursday and the resulting spillover into the commodity markets was adding some weakness to the deferred month contracts. The spot month August contract was showing some resiliency at midday last Thursday, which may help keep trade firm through the next week or two if it manages to maintain its strength. The U.S. dollar was posting some significant gains late last week as signs of slowing growth in Asia and Europe pulled down competing currencies. The rise in the dollar could have a large im-
pact on commodity markets if the trend continues for any length of time. Export markets have been responsible for a large portion of the strong beef trade since the start of the economic downturn in the U.S. If export markets begin to slow, it could take a toll on beef cutout values which would translate down the line to lower cattle prices, despite the positive inventory situation. The Choice boxed beef cutout value slid slightly last week, dropping just 14 cents in morning trade last Thursday to $173.37 while Select was up 55 cents during the session to trade at $170.06. Packers are report-
NEWS:
Time Sensitive Priority Handling
NCBA adopts farm bill guiding principles, interim policies National Cattlemen’s Beef Association (NCBA) Vice President of Government Affairs Colin Woodall said the “proof is in the pudding” that NCBA’s grassroots policy process works as the 2011 Cattle Industry Summer Conference wrapped up in Kissimmee, FL. Despite the fact that the current Farm Bill does not expire until 2012, Woodall said NCBA needs its “marching orders” because the debate of the next Farm Bill is well underway. “Cattlemen have long supported efforts to minimize direct federal involvement in the cattle industry. That is why our first priority during the 2012 Farm Bill debate is to eliminate or reduce the livestock title. We can thank that title for things like the USDA’s proposed livestock marketing rule and mandatory Country-of-Origin-Labeling, which will not benefit cattlemen in any way, shape or form,” Woodall said.
NCBA members also adopted several interim policy positions that will serve as the roadmap for NCBA’s staff in Washington, D.C. Interim policy was passed supporting additional research to identify and test alternative cattle production practices that maintain the highest standards for animal health and well-being without resulting in additional costs to cattlemen, losses in production, or mandated animal handling practices. “More than two decades ago, cattlemen took the initiative to work with scientists and veterinarians to develop voluntary animal care and handling programs,” Woodall said. “Those programs have worked because cattlemen take ownership in them.” NCBA passed interim policy that supports strengthening border security and improves current See NCBA on page 16
edly having to discount middle meats slightly to get them sold as demand remains lackluster. End meats are still receiving good demand from the export trade and some of that product is also being sourced to meet the demand for ground beef, according to market analysts. Last week, that U.S. dollar strength was helping to push boneless cow beef markets higher along with the end meats. As the U.S. dollar increased in value, the Australian dollar has also been climbing, making imports of boneless beef for grinding in the U.S. more expensive. Buyers instead are having to turn to domestic markets to fulfill their needs, pushing cow beef prices higher. Last Thursday, the cow beef cutout rose to $146.25, up 47 cents from the previous day. The 90 percent lean product reached $179.48 while the 50 percent trim hit $81.05, up $2 from the previous week’s level. To put the importance of the international trade into perspective, last week, Utah State University agricultural economics professor Dillon Feuz reported that through May, total U.S. beef and veal imports are down approximately 30 million pounds per month, or 15 percent when compared to 2010. “Total beef and veal exports through May are running 25 percent above the prior year; that is an additional 46 million pounds See Market on page 11