WLJ - Vol. 91 No. 1

Page 1

“The Industry’s Largest Weekly Circulation”

The National Livestock Weekly web site: www.wlj.net • e-mail: editorial@wlj.net • advertising@wlj.net • circulation@wlj.net

INSIDE WLJ BISON RELEASE IN CAPROCK CAPROCK—The vision and master plan to create a larger buffalo herd inhabiting 5,000 acres came full circle with a celebration and the release of 80 buffalo. Page 5 NLCS RELEASES 15-YR. STRATEGY STRATEGY— The Bureau of Land Management released a plan to guide National Landscape Conservation System (NLCS) with land management efforts in coming years. The strategy supports the current multiple-use mission. Page 9 ACTIVISTS GROUPS BUSY BUSY—Animal activists groups have spent their summer targeting animal agriculture and training their followers. Securing rights for farm animals and promoting a vegetarian lifestyle are at the top of their agenda, along with educating their followers on how to create undercover videos and manipulate the media. Page 10

INTERMOUNTAIN NTERMOUNTAIN PROPERTIES— PROPERTIES This issue of WLJ includes a special look at the desirable Intermountain West region. The section includes a story on the markets in the area, along with advertising from some of the area’s foremost ranch and farm real estate brokers. Section starts on Page 11 INDEX Beef Bits .........................................P-3 Sale Reports ...................................P-9 Markets ........................................ P-14 Classifieds .................................... P-16 Sale Calendar .............................. P-19

Despite a lengthy waiting period, agriculture industries across the board are praising President Obama’s action on three pending Free Trade Agreements (FTAs) and hoping lawmakers will take a little less time to give the final approval. The FTAs with Colombia, Panama and South Korea were originally signed under former president George W. Bush, and are expected to boost U.S. exports by $13 billion and benefit the U.S. agriculture and manufacturing sectors, in addition to creating U.S. jobs. National Cattlemen’s Beef Association (NCBA) President Bill Donald said the long-awaited agreements, moved from the president’s desk to Congress, were very encouraging but also cautioned that the agreements are far from implemented. “Today marks the biggest leap forward we have seen in nearly five years when the trade pact with Colombia was signed,” said Donald. “Rural America is nearing a historic moment. These three agreements will create roughly 250,000 jobs right here in the United States and increase profitability for our nation’s family farmers and ranchers.” Donald said cattlemen will not rest easy until the agreements are fully implemented but commended members of Congress for their long-standing

support of free trade. The U.S. Meat Export Federation (USMEF) also praised Obama’s submission of the FTAs, touting it as a positive step toward improving the U.S. balance of trade and creating new jobs in America. “This move by President Obama is a critical step toward passing

Time Sensitive Priority Handling

free trade agreements that will help ensure a level playing field for U.S. exports internationally,” said Philip Seng, USMEF president and CEO. Like NCBA, USMEF is encouraging Congress to quickly move forward on the FTAs because of the benefits. USDA has estimated that ap-

proval of the FTAs would increase U.S. agricultural exports $1.9 billion in South Korea, $371 million in Panama, and $46 million in Colombia. They also would create an estimated 20,000 U.S. jobs. For the U.S. red meat industry alone, it is projected that the U.S.See President on page 6

Photo courtesy of HM Livestock, Mack Hitch

Colorado water wasted in out-flows Farm Bureau and Colorado Corn Growers found water flowing to Nebraska has significantly increased since 2006. As much as 600,000 acre-feet of water more than necessary under the South Platte River Compact flowed out of the state in 2010 because of the artificial recharge ordered by the state, the consultants said. State Engineer Dick Wolfe countered that the report misinterprets how much water is “owed” to Nebraska, but agreed that there is room for better accounting of the out-flows.

WWP victory affects up to 30,000,000 ac.

NEWS:

A Crow Publication

President sends three trade agreements to Congress

Colorado court-ordered well restrictions and shut-offs in 2006 have resurfaced, literally—flooding basements in northeastern Colorado; and figuratively—in water courts with lawsuits seeking a happy medium between all of the South Platte river stakeholders. According to farmers and ranchers in northeastern Colorado, more water is being sent down the South Platte to Nebraska than is necessary, in large part because of the 2006 restrictions. A study by Halepaska and Associates for the Weld County

LIVE STEERS DRESSED STEERS CME FEEDER $188.71 $139.07 $118.77 WEEK ENDING: 10-6-11

October 10, 2011 • Vol. 91, No. 1

Western Watersheds Project (WWP) is celebrating what its founder John Marvel called a “great court victory” after Idaho Federal District Judge B. Lynn Winmill issued a major ruling in favor of the anti-grazing non-profit group and against the Bureau of Land Management (BLM). The case involves 16 Resource Management Plans (RMPs) and their associated environmental impact statements, which together cover over 30,000,000 acres of public land across the West. States affected by the ruling are Idaho, Wyoming, Montana, Utah, California and Nevada. Wyoming Stock Growers Association (WSGA) Executive VicePresident Jim Magagna indicated that although the outcome of the case is not yet certain, the potential ramifications for public lands ranchers cannot be underestimated. “The substantive issues … that were before the court in this case and that the court decided have potentially very wide impact,” said Magagna. Todd Tucci, attorney with environmental law group Advocates for the West, is representing WWP in the case. “I’m unaware of any other case that deals with a larger landscape than this RMP case,” Tucci remarked. He described Winmill’s decision as “groundbreaking.” Winmill’s order, issued Sept. 28, faulted BLM for failing to adequately assess the cumulative impact of grazing and energy development on sage grouse, and for failing to consider sufficient alternatives to grazing and oil and gas development in 16 separate RMPs. The greater sage grouse is listed by the U.S. Department of Fish and Wildlife as a candidate species for an endangered listing. It has been designated “warranted but precluded,” meaning that although the declining population of the sage grouse warrants an endangered listing, the number of other species in more serious need precludes it from being listed at this time.

See WWP on page 20

In 2006, the state engineer reduced pumping on 4,000 of 9,000 irrigation wells in the South Platte River Basin, shutting 440 down completely. The 2005 compact requires curtailment in Colorado if the flow at the state line is below 120 cubic feet per second (cfs) from April 1 to Oct. 15. The compact requires Colorado to meet deliveries that would have been available at the time of Nebraska’s claim, June 14, 1897. “To represent that the collective volume of water in excess of 120

cfs that crosses the state line is a delivery of water that goes ‘beyond the compact requirement’ is a misunderstanding of the compact,” Wolfe said, in a letter responding to the report. The state has nine compacts and two court decrees that regulate deliveries of water to other states, and they may be based on percentages, amounts of water or stream gauge readings, Wolfe said. Wolfe also said other factors, including the Endangered Species Act settlement among Colorado, See Colorado on page 8

Fed cattle trade $6 higher Cattle futures traded higher last week, pulling the live and dressed cash markets with it. The October contract was trading at $122.20 Thursday and deferred contracts were trading in the same range. April seems to be where the next price advance is and was trading at $126.05 last Thursday. December corn took a quick dip last Tuesday, trading as low as $5.85, the best buying opportunity we’ve seen in some time. Cattle traded very late Friday afternoon Sept. 30, setting the market at $120 live. The momentum stayed with the market and most of last week’s trade was on Tuesday and Wednesday, trading steady with that Friday afternoon’s prices. Packers were enthusiastic buyers and purchased cattle $6 higher over the past five trading days. Packers are in an awkward situation as the boxed beef cutout continues to trade in the $184 range on moderately good trade volume. Processing rates were much higher than the prior week when 677,000 head passed through processing plants, 20,000 head more than the same week a year ago. The latest packer margin index showed packers losing $50 per head and they continued to be ag-

gressive buyers. “We saw further clean-up trade in the south at $120-$121 money with weekly sales volumes looking good enough to call trade largely wrapped up for the week,” said Troy Vetterkind, Vetterkind Cattle Brokerage, in his report last Thursday. “In the north, we saw cattle trade [Wednesday] at $121-122.50 live and $1.90-1.91 dressed,” he added. We haven’t seen cash cattle trade even with the futures markets for quite some time. “Futures will be the key, because if we continue to see fund buying push the board higher, packers may not have much say in the matter and will either have to cut kills or eat more margin,” Vetterkind said. Thursday cash cattle trade was virtually in the books following moderate trade in the north, along with some clean-up trade activity in the south. Open interest last Wednesday added 480 positions (340,879). Spot October reduced 1,002 positions (33,467) and December contracts increased 167 positions (155,358). “Fed cattle numbers probably won’t be any larger [this] week as feedlots remain quite current, See Fed Cattle on page 15


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