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INSIDE WLJ WOLF TRAVELS TO CALIFORNIA—Following a month long soNIA journ across Oregon, the wolf designated OR-7 by Oregon Department of Fish and Wildlife officials has become the first verified member of the species to enter California in nearly 90 years. While wolf movement is expected, California ranchers said this one came across a little faster than expected. Page 9 RED ANGUS SECTION— SECTION—This week’s edition of WLJ includes a special Red Angus feature section. This feature includes a wide array of management articles from the Red Angus Association of America and advertising from some of the breed’s best Red Angus producers. Section starts on Page 14. FAR WEST PROPERTIES— PROPERTIES—Included this week is a special farm and ranch real estate section highlighting properties from some of the Far West region’s premier real estate brokerages. Agents throughout the area say that recreational activities are opening up new market opportunities. Section starts on Page 22. NANOTECHNOLOGY LAWSUIT LAWSUIT— Consumer safety and environmental groups sued the Food and Drug Administration last month citing scientific reports cautioning against the unregulated use of nanotechnology in consumer products. The case is the first lawsuit over the health and environmental risks of nanotechnology and nanomaterials. Page 32 INDEX Beef Bits .................................P-3 Sale Reports ...........................P-8 Markets.................................P-35 Classifieds ............................P-36 Sale Calendar .......................P-39
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Proposed legislation targets hidden cameras in agriculture While the Humane Society of the United States (HSUS) is hailing the demise of Florida legislation that would have restricted undercover video and photos, other states are working to get similar legislation passed. In Iowa, a bill introduced by Democratic Sen. Joe Seng and Republican Sen. Tim Kapucian would make it illegal to take a job or gain access to an animal facility under false pretenses. Iowa’s House File 589, known as the “ag gag bill,” if passed would become the nation’s toughest legislation against animal rights activists who use what they call covert operations to take videos and photos of alleged animal cruelty. The bill would make it illegal to videotape at farms, ranches, and other animal operations while undercover. Producers say the legislation is needed to protect Iowa against activists who deliberately cast their operations in a negative light and continue videotaping rather than reporting abuse immediately. Animal welfare groups claim the undercover recording is vital to protect livestock and food safety and that they must document multiple instances of abuse to show a pattern. Other states with similar pending legislation include Indiana, Nebraska, New York and Minnesota.
Iowa’s bill passed the House last year, but stalled in the Senate after the attorney general’s office pointed out potential legal challenges the bill would create. Based on freedom of speech, the U.S. Supreme Court has ruled that films exposing animal cruelty are legal.
Iowa’s Senate rewrote the bill in late 2011, eliminating the false pretenses language that prohibited animal activists from lying to employers. The rewritten language makes it a crime to enter or remain at an agricultural operation or to have a recording device without express permission from
the owner. According to Kapucian, the primary wording makes it illegal for an applicant to lie on a job application, and is specific to animal agriculture production. Critics contended last year that current trespassing law already See Videos on page 33
Photo courtesy of the Red Angus Association of America
Cattle Inventory Report confirms drought losses USDA’ Cattle Inventory Report came in with few surprises since the industry has continued to liquidate throughout severely drought-stricken areas. The report did show some early signs of expansion interest, but ranchers continue to remain cautious on reports that the drought may not be over. The historic drought conditions have taken their toll on some states, including Texas, where the cow herd in 2011 lost more than 150,000 head, three times more than the 45,000 re-
corded in 2010. Released Jan. 27 by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, and USDA, the Jan. 1 cattle inventory numbers were down by 2 percent. All cattle and calves in the U.S. as of Jan. 1, 2012, totaled 90.8 million head, 2 percent below the 92.7 million on Jan. 1, 2011. This is the lowest Jan. 1 inventory of all cattle and calves since the 88.1 million on hand in 1952. All cows and heifers that have calved were at 39.1 million, down
Fed cattle trade softens ahead of inventory report LIVE STEERS DRESSED STEERS CME FEEDER $200.00 $155.37 $124.00 WEEK ENDING: 2/2/2012
February 6, 2012 • Vol. 91, No. 18
Anticipation of last week’s winter weather sparked an early rally on Tuesday. The much anticipated winter storm in Colorado, Kansas, Nebraska and Iowa bolstered feedlot offering prices. Cash fed cattle markets were lightly tested last week, with a few cattle selling in Iowa at $124-126 live and $1.96-1.98 dressed. There was some softening in the beef markets and futures contracts traded lower for much of the week, lending to last week’s price decline. In the Southern Plains and Nebraska, live sales sold at $124 the previous week. In Colorado, live sales sold at $123 and in the western Corn Belt, live sales sold from $123-124 with dressed sales at $200. Fed cattle selling in the auction markets of Minnesota, Wisconsin, Iowa and South Dakota have been trading steady to $.50-1 lower compared to the same sales the previous week. “Demand,” not “supply,” remains the greatest challenge confronting this market. Carcass weight data for the second consecutive week showed signs of marketings not keeping pace with the increasing supply of market-ready cattle. The perfect witch’s brew combining higher replacement costs than the current selling price, fed cattle selling prices above the cost of gain, and a premium futures structure provide reasons that some producers may choose to defer marketings. The annual cattle inventory report contained few surprises. Total inventories were reported at 98 percent of the prior year. Heifers for replacements were up, while dairy heifers for replacements were down. Cattle inventories have been in decline since 1975. However, the decline in cattle inventories has been almost totally offset by rising carcass weights. Beef production has not declined commensurate with the decline in cattle inventories. See Market on page 34
2 percent from the 40 million on Jan. 1, 2011. Beef cows, at 29.9 million, were down 3 percent from Jan. 1, 2011. Milk cows, at 9.2 million, were up 1 percent from Jan. 1, 2011. Other class estimates on Jan. 1, 2012, and the change from Jan. 1, 2011, include: • All heifers 500 pounds and over, 19.4 million, down 1 percent. • Beef replacement heifers, 5.2 million, up 1 percent. • Milk replacement heifers, 4.5 million, down 1 percent.
• Other heifers, 9.6 million, down 2 percent. • Steers weighing 500 pounds and over, 16.1 million, down 2 percent. • Bulls weighing 500 pounds and over, 2.1 million, down 5 percent. • Calves under 500 pounds, 14.1 million, down 3 percent.Cattle and calves on feed for slaughter in all feedlots, 14.1 million, were up 1 percent. The combined total of calves under 500 pounds, and other heifers and steers over 500 pounds outside of feedlots, was 25.7 million, down 4 percent. See Inventory on page 6
BLM and Forest Service announce 2012 grazing fee The federal grazing fee for 2012 will be $1.35 per animal unit month (AUM) for public lands administered by the Bureau of Land Management (BLM) and $1.35 per head month (HM) for lands managed by the U.S. Forest Service. The 2012 fee is the same as last year’s. An AUM or HM—treated as equivalent measures for fee purposes—is the occupancy and use of public lands by one cow and her calf, one horse, or five sheep or goats for a month. The newly calculated grazing fee, determined by a congressional formula and effective on March 1, applies to nearly 18,000 grazing permits and leases administered by BLM and more than 8,000 permits administered by the Forest Service. The formula used for calculating the grazing fee, which was established by Congress in the 1978 Public Rangelands Improvement Act, has continued under a presidential Executive Order issued in 1986. Under that order, the grazing fee cannot fall below $1.35 per AUM, and any increase or decrease cannot exceed 25 percent of the previous year’s level. The annually determined grazing fee is computed by using a 1966
base value of $1.23 per AUM/HM for livestock grazing on public lands in western states. The figure is then calculated according to three factors—current private grazing land lease rates, beef cattle prices, and the cost of livestock production. In effect, the fee rises, falls, or stays the same based on market conditions, with livestock operators paying more when conditions are better and less when conditions have declined. The 2012 grazing fee of $1.35 per AUM/HM grazing fee applies to 16 western states on public lands administered by BLM and the Forest Service. The states are Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, and Wyoming. Permit holders and lessees may contact their local BLM or U.S. Forest Service office for additional information. BLM, an agency of the U.S. Department of the Interior, manages more land—over 245 million surface acres—than any other federal agency. Most of this public land is located in 12 western states, including Alaska.—WLJ