NCBM1009

OCTOBER 2009

Extension Agents ■ Corn Crop ■ CattleFax ■ Activists ■

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The chain will not be broken.

The food chain in America is not about hide color. It’s about quality, it’s about passion, it’s about people making a life-long investment to feed a global population of more than six billion people. Our food chain begins with an Angus genetic supplier in the nation’s breadbasket and ends with a satisfied eating experience from the family dinner table to the Waldorf=Astoria. The strength of our food chain depends on a quality product with sustainable value from the pasture to the center of the plate. Angus, the power of people and progress.

Angus Seedstock Producer Kevin Yon, Ridge Spring, South Carolina Commercial Bull Customer Joe Davis, Westminster, South Carolina Manager, Irsik & Doll Feedyard Mark Sebranek, Garden City, Kansas

Feedlot Owner/Partner Cindy Williams, Chappell Feedlot, Chappell, Nebraska; Tom & Cindy Williams, owners Chairman of the Board, National Beef Packing Company & CEO, U.S. Premium Beef Steve Hunt, Kansas City, Missouri

President, Certified Angus Beef LLC John Stika, Wooster, Ohio Owner, DeBragga & Spitler Marc John Sarrazin, New York, New York Executive Chef, The Waldorf=Astoria for 23 years John Doherty, New York, New York

3 2 0 1 F r e d e r i c k A v e n u e , S a i n t J o s e p h , M O 6 4 5 0 6 - 2 9 9 7 • ( 8 1 6 ) 3 8 3 - 5 1 0 0 • w w w. a n g u s . o r g © 2007-2009 American Angus Association

LEADERSHIP & SOLUTIONS 4

We’re Working to Protect Your Business

By Forrest Roberts

B

y the time you read this, NCBA will be starting a new fiscal year, and I will be nearly nine months on NCBA CEO the job as your Forrest Roberts chief executive officer. Prior to joining the staff team, I had always been involved with NCBA as a member and volunteer leader. From my member vantage, I was struck by the awesome responsibility NCBA shouldered as the oldest and largest national cattlemen’s organization.

NCBA is called to be the definitive voice and trusted leader for cattlemen across the country. Our job is to: • Protect the business climate within which you operate; • Protect and grow demand for beef in the United States, the world’s largest beef-consuming nation; • And expand access for U.S. beef exports.

Our ability to do these three things is essential to your profitability.

Your NCBA team has achieved some important results against these goals: • Made significant progress towards Death Tax reform with two pieces of legislation.

In April, the Senate passed an amendment on Death Tax relief that would raise the Death Tax exemption to $5 million per individual and $10 million per couple, indexed for inflation, and reduce the maximum tax rate to 35%.

At the end of July, Congressmen Mike Thompson (D-Calif.) and John Salazar (D-Colo.) introduced HR 3524, the Family Farm Preservation and Conservation Estate Tax Act. It would exempt working farm and October 2009 l National Cattlemen

ranch land from the Death Tax, as long as the land is kept in production agriculture. Should the land be used or sold for other purposes, a recapture tax would be imposed.

• Fought the passage of the Clean Water Restoration Act (CWRA), which would drastically expand federal regulatory control over all wet areas and grant sweeping authority to regulate all “activities” affecting those waters.

NCBA helped delay the Senate Committee markup of the CWRA several times. It eventually passed out of Committee and now heads to the full Senate for a vote. Sen. Crapo (R-Idaho) placed a hold on the bill, indicating that he would filibuster if necessary. His hold means the Senate would need 60 votes to pass the bill — which would be difficult to get. Th is makes NCBA’s continued lobbying efforts important as we work ensure this bill does not pass.

• Grew the number of consumers who believe beef is a great balance of taste and nutrition (from 65% to 73% and a good value for the money (from 54% to 67%).

In the past nine months, NCBA worked with volunteer leaders to develop a strategic plan that sets the course for your association for years to come. NCBA has never had its own strategic plan, and I would argue: How do you know where you’re going and what it takes to get there without one? It’s pretty tough.

NCBA’s Strategic Plan anchors on the industry’s long range vision: a beef industry that is profitable, growing and sustainable for future generations. It defines NCBA’s purpose clearly: Be the definitive voice and trusted leader in the beef industry. And it calls for financial, Continued on Page 20

NATIONAL CATTLEMEN The Journal for America’s Cattle Producers

OCTOBER 2009 VOLUME 25, ISSUE 1 2009 Officers President President Elect Vice President Chairman Federation Division Chairman Policy Division Chief Executive Officer NCBA Publishing Staff Editor Assistant Editor

Gary Voogt Steve Foglesong Bill Donald J.D. Alexander Tracy Brunner Forrest Roberts Curt Olson Joe Snyder

To Learn More About NCBA Call 1-866-BeefUSA (1-866-233-3872) or visit www.BeefUSA.org.

To receive e-mail updates from NCBA, contact Sheryl Slagle at sslagle@beef.org.

Contributors CattleFax staff Jacque Matsen Dan McCarty Heather Vaughan Daren Williams About the Cover: Producers work cattle in northeast Kansas.

Photo by Brett Spader, Kansas Livestock Association How To Contact National Cattlemen’s Beef Association: P.O. Box 3469, Englewood, CO 80155 (303-694-0305); Washington, D.C.: 1301 Pennsylvania Ave. N.W., Suite 300, Washington, D.C. 20004 (202-3470228). National Cattlemen is a monthly publication of the National Cattlemen’s Beef Association.

Published by Naylor, LLC 5950 NW 1st Place Gainesville, FL 32607 Phone: 800.369.6220 | Fax: 352.331.3525 Web site: www.naylor.com Naylor Publisher Kathleen Gardner Naylor Editor Elsbeth Russell Project Manager Troy Dempsey Publication Director John O’Neil Advertising Sales David Evans, Robert Shafer, Paul Woods Marketing Associate Erin Sevitz Pagination Catharine Snell Advertising Art Reanne Dawson ©2009 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or in part, without the prior written consent of the National Cattlemen’s Beef Association.

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5

YOUR NCBA

Who Am I? Jonathan Marohl operates Marohl Yellow Top Angus in Solen, N.D., and works for Novartis Animal Health as a territory manager and the North Dakota Stockmen’s Association as a brand inspector.

Coming in November’s National Cattlemen • Lease or Buy? • Winter eFed

Around NCBA NCBA’s Cattlemen to Cattlemen Continues Educational Series

AgroSciences, John Deere, Igenity, Pfizer Animal Health and Intervet Schering Plough Animal Health.

Sagebrush management, corn stock baling and managing bovine respiratory disease are just some of the topics you’ll see covered on fall episodes of NCBA’s Cattlemen to Cattlemen. The weekly TV show is carried on RFD-TV. Th e program airs Tuesday nights at 8:30 p.m. and repeats Wednesday at 10:30 a.m. and Saturdays at 9 a.m. (all times Eastern).

“Informing and educating cattlemen across the country is really the goal of our show,” said NCBA Executive Director of Producer Education Dr. Tom Field. “These upcoming episodes really focus on what producers can do to address issues on their operations and offer practical tips.”

Also this fall, cattlemen can tune in for updates from Capitol Hill and features on cattlemen from around the country, including a dairyman from Wyoming and a cattle feeder from Nebraska.

The show is always available online at www.

CattlemenToCattlemen.org. You can also become a fan of the show on Facebook and join in discussions based on the week’s content. Also follow the show on Twitter — just search “NCBA C2C.” NCBA’ s Cattlemen to Cattlemen is made possible by the generous support of Fort Dodge Animal Health, Purina Mills, Bayer Animal Health, McDonald’s, Dow

What’s the best way to improve your business?

Leave it!

Saddle Up to

January 27-30, 2010

Leave it long enough to come to the most rewarding cattlemen’s convention of the year!

At the 2010 Cattle Industry Annual Convention and NCBA Trade Show: + Outstanding speakers will challenge you to rethink how you do business. + Industry experts will share their secrets of success. + The Trade Show will boost your use of cutting edge tools and information.

Join your fellow cattlemen in San Antonio, January 27-30, 2010.

For more information visit www.beefusa.org or call 303-694-0305 For information on exhibiting, contact Kristin Torres at 303-850-3335 or ktorres@beef.org.

6

• Canada and Mexico • Taxes

October 2009 l National Cattlemen

Nominations Open for 20th Annual Environmental Stewardship Award Nominations for the annual Environmental Stewardship Awards are now open for 2010. The award, now in its 20th year, recognizes producers at the regional and national level who demonstrate outstanding stewardship practices and wildlife habitat improvement while maintaining profitable cattle operations.

“Cattle producers doing good things for the environment isn’t unusual, but their efforts often go unnoticed,” says Dave Petty, the Eldora, Iowa, cattleman who chairs the selection panel. “Winners of the award set an example for fellow producers by demonstrating successful management practices that not only benefit the environment, but also help their bottom line.” Petty was the national winner in 2001. “By recognizing our best stewards, we encourage other producers and show the public some real positive things going on across the country being done by a lot of cattle producers.”

Any organization, group, or individual may nominate a U.S. cattle producer. From the field of nominees, seven regional winners are selected by an expert panel representing NCBA, conservation and sportsmen’s groups, federal and state agencies, and land grant universities.

Judges consider the management of water, wildlife, vegetation, air and soil, as well as the nominees’ leadership and the sustainability of the business as a whole. Regional winners will be announced in July 2010. From the seven regional winners, judges will choose a national winner to be announced at the Cattle Industry Annual Convention in January 2011.

The program is funded by Dow AgroSciences and the USDA Natural Resources Conservation Service.

For information, including examples of past winners, visit www.EnvironmentalStewardship.org or contact the National Cattlemen’s Foundation at 303-694-0305.

Just in Time for the Holidays NCBA members enjoy an exclusive benefit program with Cabela’s — the world’s foremost outfitter of hunting, fishing, and outdoor gear. NCBA members get 15% off the price of Cabela’s gift cards purchased through NCBA for your cattle business. The gift cards are good anywhere Cabela’s conducts business: catalog, in-store, or on-line and can be used for any of their merchandise. A $500 gift card only costs you, as an NCBA member, $425 plus a $1 card fee! You can join NCBA online. Go to www.beefusa. org and click on the Join/Renew Now button or call 1-866233-3872.

Quality People . . . Quality Products!

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7

ASK AN EXPERT

What Is Shaking in the Market?

Compiled By Dan McCarty and Curt Olson

What opportunities do you see in the market for the coming year?

Bryan Prins Prins Cattle Company Sisseton, S.D. With the amount of equity lost in the cattle industry in the last year cattle feeders will have a tendency to temper their demand on feeder cattle. So feeders should trend lower. The wild card to this is, of course, feed costs. The reduced price of corn and the threat of early frost in the Northern Plains could actually support the feeder cattle prices. But in general cattle feeders are going to want to buy feeder cattle with lower break evens.

John Rose Rose Cattle Company Three Forks, Mont.

One of the opportunities that I see in the coming year is for producers to get involved in programs like source and age verification, All Naturals, preconditioning and other available programs. As the price drops and the market gets tougher you need to add value to your product. The second opportunity I see is with the nation’s cow herd being at historically low levels. We have the quality and the genetics available in our area to produce replacement females for rebuilding our nation’s cattle numbers.

What trends do you see that you are most concerned about?

Prins: One of the most interesting trends over the last six months is how flat the fed market is. Th is has created the opportunity or necessity to use the futures market to attain profitability on the cattle being fed.

Rose: Volatility of the market is a trend that makes it very difficult to manage budgets and cash flow. The other trend that concerns me most is the lack of commitment of the people in the industry to invest resources, both in time and money, to promote our product. Also to let people know the story of our commitment to the environment and the welfare of our animals.

8

October 2009 l National Cattlemen

In this market, do you recommend producers use any kind of price protection or risk management techniques?

If so, what?

Prins: Obviously producers should use any type of niche markets to provide profitability. Otherwise selling rallys on the live cattle futures while controlling feed costs is advised.

Rose: Producers in our area are going to have to do more risk management than they have done in the past to sustain a viable business.

In addition to forward contracting cattle for fall delivery, they must look for opportunities to manage price on the board or multi-year contracts with the feeding sectors of the industry.

The second opportunity I see is with the nation’s cow herd being at historically low levels.

Besides the economy, what issues are weighing on your customer’s mind?

Prins: Most cattle feeders have been more conservative over the last few months because of the huge loss of equity. The feeder cattle being purchased must have realistic break evens because the advancement of the live cattle market is minimal considering the depressed prices of competing proteins.

Rose: The economy is, of course, the No. 1 issue on the minds of our producers. Most of our short-term problems go back to the economy.

But just as important for the long term would be the political climate, not only in our state but nationally as well. Animal welfare and grazing on public lands are just a couple of the issues we deal with on a daily basis.

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YOUR BUSINESS

What’s the Future for Extension?

By Curt Olson

E

veryone has seen the statistics: only 2% of Americans are involved in agriculture. And as society changes, the institutions that serve it must also. Th is recession has put state budgets under the knife, and Extension programs, the agricultural, educational backbone of rural America, are getting cut.

Founded in 1862, Extension and its land-grant university system have evolved over the years to meet the changing needs of the times and the constituents it serves. From the Great Depression to today’s great recession, Extension offices continue to meet the needs of their constituents on a local basis. While that dedication remains, the means of delivery and operation are changing. And what traditionally has been a free service in some areas now has a fee attached.

Dr. Bob Weaber works for Missouri Extension as a beef cattle genetics specialist. He says their program is fortunate that it is going into the fiscal year with a flat budget, with the understanding that the state could take some funding back.

To offset some costs, there is more emphasis on fee-based programs.

“One of the things that’s developing in our program is a transition from cost-free programs to a system that is more of a pay-

for-service where we don’t recoup all of the dollars. We are encouraged to look at all the programs and figure out the cost and a reasonable assessment to level against attendees.”

As you can imagine, the concept

We’ve got to make sure we culture and cultivate those good ranch kids. isn’t met with universal, enthusiastic support. Dr. John Paterson has been working with Beef Extension since 1984. He hopes his program can avoid crossing that bridge. In Iowa, keeping a local office open is up to the county. There Iowa State University withdrew support for 100 county offices and reorganized into regional networks — 20 of them.

Weaber says that in the long run

Extension may benefit from charging a fee. “NAHMS (National Animal Health Monitoring System) surveys say cow/calf producers put more value on the information they have to pay for. Even though the credibility of Extension is good, producers discount the information because it’s free. Charging for it may increase attendance at events and raise the perceived value of the information.”

How that gets delivered is changing. “As our budgets downsize, we’ve gone to these other tools (electronic) and it puts more onus back on the producer to gather that information,” says John Lawrence of the Iowa Beef Center. “They may have to watch the paper more closely for a meeting that’s two counties over.

They may have to go online and read the information rather than have someone standing there telling them.

They might have to sign up for an e-mail newsletter. If you don’t ask for it, you certainly won’t get it. The old model of ‘there’s always going to be a beef cattle meeting the third week of January in my hometown,’ that may not be the case anymore.”

Paterson estimates there are about 11,500 professional cattlemen in Montana. Smart. Savvy. And just as in Iowa or Missouri, when they need help, they need answers quickly.

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October 2009 l National Cattlemen

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YOUR BUSINESS “Information is changing,” he says. “It is so rapid now. They (ranchers) are getting hold of information so quickly. But here’s the challenge. How do you know if what you gather is good information?

I think you’re going to see more Extension programs done in Webinars and more computer-backed educational programs but don’t ever forget: Those people want to see you on their ranch.”

In the not-so-distant future, the beef specialist providing you information and education may be from another state, a shared resource in a multi-state regional program.

Weaber says there is more talk of expanding on that. Lawrence points to the nearly 30-year-old Four State Beef Alliance (Iowa, Kansas, Nebraska, Missouri) as an example of how Extension programs already reach across state lines to deliver educational programming.

“We are seeing more collaboration and sharing of resources,” Lawrence

says. “There is a Web-based program at the national level called eXtension.

The information is organized by a community of practices, such as beef cattle, manure management, etc.”

The site puts up the most current and best publications on a topic, hosts Webcasts, archives them, and there is a frequently asked questions section. Anyone in the country can go online and sign up for it. You provide your name and address so when you type in a question, the site managers look at your address and send you information that applies to your area.

The demands on Extension aren’t diminishing. The questions are getting more sophisticated.

“If society asks for things, cattlemen have responded because they have become so consumer focused,” Paterson says. “Ranchers are asking about cap and trade, greenhouse gases. What can I do to reduce them? How do I change the diet to reduce those emissions?

I want to feed balanced diets so I don’t put excess nitrogen back on the soil. They want to make sure from an environmental standpoint they are doing the right things. Animal care also is a rising issue.” And like producers everywhere, they’re looking for proven ways to add value that will pay.

Missouri’s cattlemen tend to be what Weaber calls professional agriculturalists. They are just as likely to have row crops as cattle. “The questions deal with controlling cost of production, using as many reduced cost inputs as possible, management of intensive grazing, stockpiled fescue, genetic management,” he says. “Producers are getting lots of information about DNA testing so they need answers, and they still turn to Extension to help them figure it out as the independent ‘voice of reason.’”

Like any business forced to deal Continued on Page 26

2010 National Shows & Sales Angus, Charolais, Gelbvieh, Braunvieh, Hereford, Highland, Limousin, Lowline, Maine-Anjou, Miniature Herefords (World Show), Salers, Shorthorn, South Devon and Tarentaise Also Chianina, Red Angus, Simmental Shows & Sales plus Galloway, Texas Longhorn, Piedmontese, Bison and Yak shows.

For schedules and information, please visit NationalWestern.com or call 303-299-5557

www.NationalCattlemen.com

11

YOUR INDUSTRY’S ISSUES

Anti-Beef Activists Attack

By Jacque Matsen

R

emember the old adage keep your friends close and your enemies closer? For beef producers, that means keeping track of enemy No. 1: the wily anti-beef activist groups. If you think PETA is the industry’s biggest concern, Pew is an exclamation you make when something smells bad and Pollan is what causes your allergies to act up, read on.

The anti-beef movement has progressed beyond a few well-known and predictable animal rights activist groups and has seen significant shifts in the last five years — shifts in money, power, tactics, issues and the players.

Here’s your guide to the who’s who and what’s what of today’s activist movement.

Then and Now Five years ago, the cattle industry was worried about groups such as Consumers Union, the Organic Consumers Association and Public Citizen capitalizing on the first U.S. case of “mad cow” disease to scare consumers into thinking organic beef is the only safe beef. The first in a series of online, animated short fi lms about the “Meatrix” were released around this time. They reached hundreds of thousands of folks with the message that today’s “factory farmers” put profit before people (both customers and workers).

Meatrix mastermind GRACE, the Global Resource Action Center for the Environment, executed a successful and entirely Internet-based campaign to promote the fi lm among its young, Internet-savvy target audience.

Anti-beef activist groups are not afraid of change. In fact, they’re famous for starting innocuous sounding spin off groups, hiring “credentialed” experts and tagging on to seemingly unrelated issues to achieve the ultimate goal of ending animal agriculture.

12

October 2009 l National Cattlemen

Power Shifts from PETA Perhaps most significantly, there’s been a power shift from the selfdescribed “media sluts” at PETA to the more reasonable-seeming Humane Society of the United States (HSUS) and its smooth talking leader, Wayne Pacelle.

“HSUS leverages its dog and cat reputation — and when compared to the idiocy of PETA — sets itself up as the ‘moderate’ group in the movement,” says Steve Kopperud, executive vice-president of the Washington, D.C.-based lobbying consulting firm Policy Directions Inc. He believes the media are buying into the slicker package, as evidenced by the recent high-profi le news coverage about HSUS and football player Michael Vick teaming up against dog-fighting.

Hmm, which do you think Pacelle values more, making a difference for pets or making a difference for his bottom line with tremendous exposure to new potential financial contributors?

HSUS can afford to be slick.

David Martosko, director of research for the Center for Consumer Freedom, points out HSUS has four times as much to spend as PETA. “HSUS has no intention of ever going away. Just look at the group’s tax returns. Last year, HSUS put over $1.8 million into pension funds for its employees,” Martosko says.

According to the Animal Agriculture Alliance, charitable donations to animal rights organizations have steadily increased for the last five years, with HSUS clearly leading the pack.

Slicker Tactics Prevail This power shift from ruckus to refined also means a change in tactics — from messy “Meat is Murder” protests complete with fake blood to more professional, and

successful, petitioning, leafleting and lobbying. Th ink painted girl on a fake grill on the street near the Cattle Industry Summer Conference in Denver vs. California’s Proposition 2. PETA didn’t achieve even one local media story, but HSUS will ride the momentum from its victory in California into Ohio and Michigan.

And if HSUS is successful with Proposition 2-like efforts in additional states, Pacelle is likely to set his sights on federal legislation.

This is exactly why Martosko believes more must be done to expose the true motives of HSUS. “You’ve got to help ordinary people question whether it’s a legitimate humane society, or just PETA with a nicer wristwatch,” he says.

Public service announcements also are a newer, favorite tool of activists, especially for The Cancer Project.

This is a credible sounding subsidiary of the vegan activist group Physicians Committee for Responsible Medicine. About the time the media caught on to PCRM’s financial connections to PETA and started acknowledging the group’s activist roots in coverage, The Cancer Project got more active. PCRM has received untold amounts of free advertising for Continued on Page 14

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YOUR INDUSTRY’S ISSUES Continued from Page 12

Video Makes the Activists Job Easier

its vegan messages through Cancer Project PSAs featuring celebrities like “House” actress Lisa Edelstein.

Another group called “The Supreme Master” also has been successful with PSAs and targets advertisements that link beef consumption to global warming.

Although newer to the United States, Supreme Master was estimated in a 1997 TIME article to have nearly 300,000 followers in Taiwan alone. Although it may not have the credibility of some longer-standing U.S.-based groups, Supreme’s base of motivated volunteers and extensive financial resources means it’s definitely a group to keep our eye on.

The same technology that allows you to carry around a digital camera in your pocket also enables activist groups to capture bad actors whom they hold up as proof that the industry isn’t doing what it says it is.

And video speaks louder than words.

Animal Rights Embraces Environmentalism If you haven’t noticed, everyone is now an expert on the environment — chefs, nutritionists, Congress, economists and countless others, including animal rights activists. All have added environmental effects to the list of reasons why consumers should cut back on beef. Thanks to the United Nations report “Livestock’s Long Shadow,” the activist groups have a compelling message to echo: Eating red meat contributes 18% to global greenhouse gas emissions — more than all forms of transportation combined.

Recognizing the public’s interest in environmental sustainability, animal rights activists are all too happy to ignore Environmental Protection Agency data that show livestock contribute less than 3% to total U.S. greenhouse gas emissions.

Martosko warns: “Without question, the marriage of the animal rights and environmental movements has the potential to be the most damaging trend in the long run. If it becomes conventional wisdom that livestock producers are causing a planetary catastrophe, farmers and ranchers will find themselves operating in a restrictive climate from which they will never completely recover.”

14

October 2009 l National Cattlemen

Every employee at every feedlot and packing plant must behave in a way they wouldn’t be ashamed of if it were captured on video.

The January 2008 release of hidden video from the California packing company Hallmark/Westland was highly successful for HSUS. Pacelle was able to call into question the safety of our beef product, suggest that producers more broadly were not providing the expected care to their animals and parlay the stunt into a profitable fundraising campaign.

And then, HSUS used the footage to lend emotion and impact to its Proposition 2 ads. The implication was this kind of thing is happening all the time, you just don’t see it without groups like HSUS looking out for the animals. HSUS took a tactic PETA had been using for years and gained mainstream awareness so Pacelle’s following is likely to continue the effort. According to Martosko, “PETA has 11 full-time undercover investigators, and there’s

no reason to believe HSUS has any fewer.”

Every employee at every feedlot and packing plant must behave in a way they wouldn’t be ashamed if it were captured on video. Producers have to call out and correct even the smallest animal handling miscue by our colleagues and neighbors because as shown with Hallmark/Westland, one bad actor can pull the entire industry down.

The New Face of Activism Activism has been taking many forms for the last several years and the anti-beef folks aren’t always as obvious as PETA, and even HSUS. Take Michael Pollan for example.

He’s a New York Times reporter turned celebrity who is beloved by the food and nutrition influencer communities and idolized by feature reporters across the country. In 2002 he followed a steer from start to steak and wrote a scathing article about modern beef production for The New York Times Magazine. Since then, he’s written two successful books — often required reading for college students — and contributed to projects like this year’s documentary, “Food, Inc.” Pollan and the like are not the types to attack farmers; in fact, they love farmers — as long as they’re the right kind of farmer (natural, organic, grass-finished only). The problem with that is an efficient production system is being demonized by folks who don’t have answers for how we’ll otherwise feed America. Small farmers are depicted as a victim to “the man” rather than an intelligent business owner who can make the smart decisions needed to produce safe and wholesome food.

Add to these folks the Pew Commission on Industrial Farm Animal Production, which released a 2008 report claiming modern food production is damaging the environment, rural communities and human health. Combined, Continued on Page 26

October 2009 Dear Beef Producer: Intervet/Schering-Plough Animal Health is committed to bringing you products backed by the highest standards of quality, professionalism and integrity.

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YOUR INDUSTRY’S ISSUES

When Journalism Becomes Activism

By Daren Williams

I

respect journalists. I really do.

I have great respect for people who can put aside their personal biases and report news, deliver facts and help readers or viewers develop informed opinion.

I also respect activists. Seriously, I respect people so devoted to their cause, so passionate in their beliefs, that they are willing to go to extremes to stand up for what they believe. At least I know where activists stand.

I do not respect activism disguised as journalism. Time magazine’s August 31 cover story, “The Real Cost of Cheap Food” wasn’t journalism. It was activism disguised as journalism; one man’s opinion disguised as news.

That’s my opinion.

Time magazine once was a respected news magazine. At some point Time decided their job was to interpret, not report the news. That’s according to Time staff writer Bryan Walsh.

Walsh freely admitted in an interview on Agri-Talk that he ignored expert sources provided by NCBA in penning his attack on American agriculture. Walsh went “on the record” saying that Time no

16

October 2009 l National Cattlemen

longer looks at both sides of an issue or gives equal time to each side.

In his own words, Walsh said, “The angle we’ve been taking at Time is ... rather than just doing the sort of story where you look at 50% on one side and 50% on another, you allow the writer to look at it and to make some of his own judgments.”

Unfortunately, Walsh had already passed judgment and made up his mind before he ever contacted your staff at NCBA. Nevertheless, we worked hard to change his mind.

We arranged for him to talk with one of the nation’s leading researchers studying livestock’s impact on the environment. We insisted that he talk to Dr. Shalene McNeill, NCBA executive director of Nutrition Research, about beef ’s role in a healthy diet. We got him on the phone with Dr. Tom Field, NCBA executive director of producer education, to discuss the differences between conventional, organic, natural and grass-fed beef. We even invited Walsh to visit feedlots in Nebraska and Colorado to show him firsthand how today’s beef is produced by people with a deep and

abiding respect for animals and the environment.

He took time to speak with every source we provided (choosing to interview our feedlot managers by phone rather than in person) and then went out of his way to ignore every word, every fact provided to refute the misinformation he eventually included in his article. Worse yet, he insulted the good people he spoke to, calling work at a feedlot “monotonous and soul-killing.”

Continued on Page 24

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YOUR BUSINESS

USDA Expects Big Corn Crop

I

n spite of a cool wet spring that delayed plantings, the 2009 corn crop is forecast to be the second largest on record. Corn production is forecast at 12.8 billion bushels, up 471 million bushels from last year. Harvested acreage is forecast at 80 million acres for grain, down 100,000 acres from July but up 2% from last year.

Based on Aug. 1 conditions, yields are expected to average 159.5 bushels per acre, up 6.1 bushels from last month’s trend yield of 153.4 bushels and the actual 2008 yield of 153.9 bushels. If realized, this would be the second highest yield on record, behind 2004, and production would be the second largest, behind 2007.

The Aug. 1 corn objective yield data indicate a record high number of ears per acre for the combined 10 objective yield states (Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri,

Nebraska, Ohio, South Dakota, and Wisconsin). As of Aug. 2, 68% of the crop was rated in good to excellent condition in the 18 major cornproducing states, up 2 percentage points from a year ago.

Total use for corn is forecast up 350 million bushels to 12.875 billion bushels this month as a result of increased demand. FSI use is increased 100 million bushels to 5.475 billion in 2009/10. Th is reflects the 100-millionbushel increase in ethanol usage, which is supported by favorable ethanol producer returns and strong incentives for ethanol blending.

As foreign production prospects are reduced, U.S. exports for 2009/10 increased 150 million bushels to 2.1 billion in August. There is also increased import demand originating from Mexico and Taiwan.

Increases in production are only partially offset by the increases in total use for corn; ending stocks are raised 71 million bushel to 1.621 billion bushels for 2009/10. For the 2008/09 marketing year, exports are raised 50 million bushels to 1.85 billion, reflecting shipments to-date. Th is lowers 2009/10 beginning stocks to 1.72 billion bushels, but supplies rise as sharply higher forecast production is more than offsetting.

Corn prices received by farmers for 2009/10 are forecast at $3.10-$3.90 per bushel, down 25 cents on both ends of the range. The marketing year average reflects higher prices for corn sold for forward delivery over the past several months ahead of the sharp downturn in futures and cash markets since early June.

Source: USDA –ERS, Aug. 14

Total use for corn is forecast up 350 million bushels to 12.875 billion bushels this month as a result of increased demand.

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Heavy In, Heavy Out

By Kevin Good

I

n-weights through the summer and early fall were heavy. As an example, placement weights for August in CattleFax data was record large at 748 pounds. This is 24 pounds above last August and 42 pounds above the five-year average.

August was the third month in a row that placement weights were above both a year ago and the fiveyear average. From June-August, placements weights have been 14 pounds over last year, and up 26 pounds compared to the five-year average.

In August, placements weighing 800 pounds and over were record large and made up 45.3% of the placements, compared to 34.7% last August and 29.9% on the five-year average. Th is would be over 200,000 head more of 800-pound and up cattle than August of last year.

The trend continued through September and it is estimated that nearly an additional 400,000 more cattle over 800 pounds were placed on feed since June. The heavier placement weights were a function of a higher percentage of the 2008 calf crop being placed on summer grazing programs in 2009, due to a combination of low calf prices last fall and the improved moisture conditions in most regions this year.

The correlation between heavier in-weights and heavier out-weights is well documented. In the second half of 2008, placement weights averaged 18 pounds above year earlier levels.

The end result is that carcass weights on fed cattle year-to-date in 2009 are 13 pounds heavier than the previous year and record large. As a result of the heaver in-weights over the past four months, look for heavier out-weights/carcass weights in the December-February time frame.

October 2009 l National Cattlemen

This will contribute to ample beef production through the winter, despite the expectation for belowyear-earlier cattle on feed numbers to continue. As always the effects of weather can affect feedyard gains and

Continued from page 4 membership and organizational targets that will ensure NCBA’s financial viability, voice and strong leadership into the future. My commitment is to make sure we succeed for you.

I also have spent a great deal of time in the country, which reenergizes me like nothing else. It is so important to me to stay grounded in this way — to hear your ideas and take them back to your NCBA team to find the right solutions.

While we are an industry comprised of many independent families and business owners, it is clear to me we are connected by so much common ground: • We need the government to stay out of telling us how to run our businesses.

• We need consumers to know we

therefore out-weights. In addition, feed cost, the structure (premium/ discount) in the deferred live cattle futures, the swap on feeder cattle, and profitability on the fed cattle being sold can all affect out weights.

share their values. Because we feed our families the same beef we send to grocery stores and restaurants around the world, we take our commitment to quality, nutrition and safety seriously.

• We need the media and policy makers to understand it is going to take innovation to feed a hungry world with a population that is expected to double by 2050 and a planet that is not expected to grow any time soon.

I am optimistic about the future.

Global demand for high-quality protein will increase. And you make the best darn protein the world has to offer. We need you and your neighbors as members.

And we need all of you engaged to ensure a bright future for this great industry.

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CAPITOL CONCERNS NCBA, Working for you in D.C.

Greenhouse Gas Regulation

By Heather Vaughan

C

attle production has become a target of Washington bureaucrats trying to reduce greenhouse gas emissions and prevent climate change. Here’s a primer on the proposals that could impact how you do business.

Clean Air Act Regulation In 2008, the Environmental Protection Agency put out something called and Advanced Notice of Proposed Rulemaking (ANPR) to determine whether carbon dioxide and greenhouse gases should be regulated under the Clean Air Act. A Supreme Court decision determined that the Clean Air Act authorizes EPA to regulate greenhouse gas emissions if EPA determines that they cause air pollution that could endanger public health. In response, EPA issued the ANPR, which asked for comments on the consequences of regulating greenhouse gases under the Clean Air Act. This ANPR wasn’t a “cow tax” but it was the source of widespread confusion about it last year. USDA estimated that should regulation under the Clean Air Act be required, beef cattle operations with more than 50 head would have to comply.

Adverse Health Effects In April, the Obama Administration issued a proposed rule that found that there are adverse health effects from greenhouse gas emissions. Should this become final, it would pave the way for regulating greenhouse gas emissions under the Clean Air Act. “With so much scientific uncertainty surrounding the question of whether human activity is responsible for climate change, it is inappropriate for the EPA to only

22

October 2009 l National Cattlemen

consider one side of the debate — especially considering the devastating consequences that their actions could have on an already struggling U.S. economy,” says Tamara Thies, NCBA chief environmental counsel.

“Additionally, the Clean Air Act is ill-equipped to regulate greenhouse gases. Should EPA move forward, we could find ourselves in a mire of bureaucracy and red tape.”

NCBA submitted comments opposing this finding.

Mandatory Registry Earlier this year, EPA proposed a mandatory registry of greenhouse gas emissions. Should this registry become mandatory, all methane and nitrous oxide emissions from manure management practices at cattle feeding operations would need to be reported.

NCBA opposed this regulation, which would be a significant financial and administrative burden on cattle operations. It also would not provide meaningful data to address EPA’s long-term goal of reducing major sources of greenhouse gas emissions.

Congressional Action NCBA succeeded in getting two key amendments included in the the House Interior and EPA Appropriations Bill. One from Congressman Tom Latham (R-Iowa) would prohibit the EPA from requiring cattle operations to report greenhouse gas emissions from manure management systems.

Congressman Todd Tiahrt’s (R-Kansas) amendment would prohibit EPA from regulating greenhouse gas emissions emissions that result from livestock production under the Clean Air Act; in other words, it would ensure cattle operations are not subject to a “cow

tax.” If included in the conference package and signed by the president, these amendments will be effective for one year.

Cap and Trade All of these actions are separate from the Cap and Trade Bill, which is being debated by Congress. That bill — the American Clean Energy and Security Act of 2009 (HR 2454) — sets a cap-and-trade system for greenhouse gases.

While NCBA succeeded in ensuring the final bill exempts agriculture from regulation under the cap and provides a list of eligible ag offsets, NCBA opposes the overall bill because of the economic burdens it would impose on cattle producers.

The bill could have serious negative effects on energy and fertilizer prices.

Get the Facts Agriculture constitutes only 5.77% of all total U.S. greenhouse gas emissions. Livestock production contributes only about 2.8% of all U.S. greenhouse gas emissions. At the same time, land use, land use change, and forestry activities resulted in a net carbon soil sequestration of approximately 14.8% of total U.S. carbon dioxide emissions, or 12.5% of total U.S. greenhouse gas emissions.

As such, agriculture provides a significant net benefit to the climate change equation. The relative contribution of GHG emissions from beef cattle manure management activities is on the decline since 1990, representing only 0.127% of total GHG emissions in 2007.

NCBA has aggressively argued that the livestock industry should not be regulated under the Clean Air Act or through a mandatory registry of greenhouse gases.

YOUR CAPITOL CONCERNS USDA Adds Weight Category for Livestock Indemnity Program USDA’s Farm Service Agency (FSA) will add an additional weight category to the Livestock Indemnity Program (LIP) for non-adult beef cattle, non-adult dairy cattle, and non-adult buffalo/beefalo. LIP compensates livestock owners at a rate of 75% of the market value of the livestock for losses in excess of normal mortality rates due to adverse weather. NCBA has actively pushed for changes to this program, which has historically set the weight categories for assessing market value at under 400 pounds and over 400 pounds. This has caused undervalued assessments for livestock losses.

NCBA met with FSA to highlight the importance of fixing this problem.

FSA said that the over-400pound category will be split into two categories: 400 to 799 pounds and 800 pounds or more. This change will ensure that the assigned market values for over 400 pounds reflect the statutory requirement for the payment to be 75 percent of the market value for the livestock.

FSA state offices will establish new normal mortality rates for each of the new weight categories covered under LIP and FSA national headquarters

will establish average fair market prices for each category.

Pork Industry Requests Financial Assistance NCBA’s Chief Economist Gregg Doud provides an analysis of the pork industry request for financial aid. The National Pork Producers Council requested $250 million in financial assistance from USDA to help pork producers. USDA agreed to buy $30 million in pork products for use in federal food programs. USDA will continue working to reopen export markets that were closed after the H1N1 flu outbreak.

While this assistance may provide some short-term relief to pork producers, it is only a temporary solution which does not address the real issues facing the entire livestock industry. Recent economic losses are not isolated to the pork industry.

The U.S. cattle feeding industry has lost an estimated $7 billion since this recession began in December 2007.

Year-to-date, U.S. poultry production is down 5.4% and beef production is down 4.2%. Pork production is down 2.6% and wholesale pork prices are 25% below a year ago. This decline was set in motion by the U.S. pork industry’s

inability to export pork to China and Russia due to H1N1.

NCBA remains concerned that the pork industry’s inability to reduce supplies will continue to add to the economic woes of the entire U.S. meat complex. The beef, pork and poultry industries are inextricably linked. The supply and demand of competing meats are a constant influence on beef and cattle prices.

The H1N1 virus exacerbated the hog industry’s inability to sufficiently reduce pork supplies in the months succeeding the global economic downturn and has precipitated a significant negative economic impact on U.S. beef producers.

These same factors combined with the influence of country of origin labeling are resulting in the worst economic crisis in Canada’s pork industry in some 60 years. The Canadian Pork Council has asked its government for a $741 million loan program, $15 million for international marketing and $68 million to pay some farmers to stop raising hogs after losing about 11% of its hog farms and 13% of its sow herd in the last year. U.S. imports of Canadian pork are up 2.6% through the first half of 2009.

Staff Profile Bethany Shively

Bethany Shively is the newest addition to the D.C. staff, where she serves as Associate Director of Media Relations. Originally from Medfield, Mass., Bethany first came to the Washington area to attend James Madison University in Virginia, studying media arts and design with a focus in print journalism.

Since graduating, she has held a number of positions in government and public affairs, most recently working as the assistant press secretary at the Department of Energy.

At NCBA, she continues to combine her policy experience with her communications talents. “My job is to tell NCBA’s story to the press,” Bethany explains. “I want to make sure that when the media is discussing an

issue that impacts cattle producers, they’re telling our side of the story.”

For Bethany, that means working on a broad array of issues, including animal health, renewable energy, international trade, tax policy, and environmental regulations.

“I couldn’t ask for a nicer, brighter, more dynamic group of colleagues, and I’m proud to be a part of the NCBA team,” Bethany says. “This is a pivotal time of change in D.C., and it’s more important than ever that we’re constantly communicating our message to the press. I’m looking forward to helping build up our media efforts to ensure our voice is heard loud and clear at both the national and local levels.”

www.NationalCattlemen.com

23

These are companies that have teamed with NCBA as Allied Industry members, demonstrating their commitment to the beef industry. Their involvement and investment strengthens our future. NCBA members are urged to support these partners in turn by purchasing their products and services. Those who would like to become Allied Industry partners with NCBA (securing a premium booth placement at the next annual convention and trade show), please call the Association Marketing team at 303-694-0305.

Allied Industry

Directory Gold Level Sponsors (minimum $100,000 investments) Micro Beef Technologies www.microbeef.com Pfizer Animal Health www.pfizer.com Purina Mills, LLC www.cattlenutrition.com

Intervet/ ScheringPlough Animal Health www.intervetusa.com www.spah.com John Deere www.deere.com Merial www.merial.com

AgriLabs www.agrilabs.com Bayer www.bayer-ah.com Caterpillar www.cat.com

Dow AgroSciences, LLC www.dowagro.com Elanco Animal Health www.elanco.com Fort Dodge Animal Health www.fortdodge.com

Allflex USA, Inc. Alpharma Barenbrug Boehringer Ingelheim Vetmedica, Inc.

Cargill Animal Nutrition Monsanto Novartis Animal Health Health U.S., Inc. Central Life Sciences Novus International CME Group Leo Burnett USA

ADM Alliance Nutrition, Inc. AgInfoLink American Live Stock Inc. Beef Magazine

Lextron, Inc. Midwest PMS, Inc. Nutrition Physiology Co., LLC

Agriculture Engineering Associates Albion Advanced Nutrition Alltech, Inc. AniPro Certified Angus Beef Certified Hereford Beef Cline Wood Agency Croplan Genetics Destron Fearing Faegre & Benson, LLP

Farm Journal/Beef Today Grow Safe Systems, Ltd Hartford Livestock Insurance Kunafin “The Insectary” Lallemand Animal Nutrition Meat & Livestock Australia, Ltd. Miraco/Gallagher Moly Manufacturing

American Foods Group Applebee’s International Beef Products, Inc. Booker Packing Company Cargill Meat Solutions Darden Restaurants

DuPont Qualicon Gilroy Foods & Flavors H.E.B. IEH Laboratories Kraft Food/Oscar Mayer

Allied Industry Council Pioneer, A DuPont Business Y-Tex Zinpro Corporation

Allied Industry Associates SmartLic Supplement U.S. Premium Beef, Ltd. Vigortone Ag Products Walco International, Inc.

Priefert Manufacturing Company Ridley Block Operations

Allied Industry Partners Temple Tag Teva Animal Health Tru-Test US Bank Vitalix The Vit-E-Men Co. Inc./ Life Products Western Farm Credit Association WW Livestock Systems Varied Industried Corp.

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Continued from Page 16 This is what I mean by activism disguised as journalism.

But at least now we know where Bryan Walsh stands. He stands firmly in the footsteps of other journalists turned activists like Michael Pollan (“The Omnivore’s Dilemma”) and Eric Schlosser (“Fast Food Nation”). These self-righteous food elitists denounce affordable food for all in favor of their own personal preference for food grown in their own organic garden or that they can buy at their local farmers market — food few Americans could afford to buy and don’t have the space or desire to grow on their own.

The so-called “sustainable” food production model they support will not sustain a growing world population. If we reverted to 1950s-era technology we would need 165 million more acres to produce the same amount of beef we produce today. Raising and grazing cattle more than doubles the amount of land we can use to produce food in this country because more than 85% of grazing land is not suitable for food crops. Americans are not going to get the facts from Bryan Walsh and Time magazine.

That’s why it is more important than ever that all cattleman in this country get engaged in their local and state organizations, and NCBA. Working together, we can take our message directly to consumers through programs like the beef checkoff-funded Masters of Beef Advocacy program. Working together, we can take our story to policymakers in Washington, D.C., and your state capital. Working together, we can fight back against one-sided, agenda-driven attacks from the media as we have with Bryan Walsh and Time.

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October 2009 l National Cattlemen

Daren Williams is NCBA’s executive director of communications and leads NCBA’s spokesperson training programs.

ENVIRONMENTAL STEWARDSHIP

Making It Work in Texas

By Curt Olson

Left to right, Minnie Lou Bradley, James Henderson, Mary Lou Bradley-Henderson

M

innie Lou Bradley made a name for herself building an integrated ranch and beef marketing business. The Texas rancher also was the 2008 NCBA Region IV winner of the Environmental Stewardship Award.

The Bradley 3 Ranch is located in the Red River Basin in northwest Texas. There’s rolling plains, rock outcroppings, harsh weather and a family that has made a living there since 1954. The ranch runs a registered Angus herd, and the landscape has helped them become innovators.

“We’re not in pristine country. We’ve got our challenges,” Minnie Lou says.

Ranch improvements have been a continual process.

Through the years, they have worked closely with the ranch management program at Texas Christian University, where they have developed a reputation for continually tweaking things from one year to the next.

“We’ve always tried to think ahead. We’re not afraid to try things,” says her son-in-law James Henderson.

One of the things they have done successfully is increase the amount of forage available to them on the ranch, where battling invasive species is an ongoing fight.

“With prices for a ranch, you can’t continue to just add and add; and so if we can make more pounds of beef per acre, that’s what we’re trying to do,” Minnie Lou says.

“We started making progress when we were able to get off that country during the growing season, give it a little rest, let it go to seed and then doing the spraying to get rid of the weeds.”

They started a rotational grazing system using cross fencing that allowed them to rest parts of the range 100 days a year. They also turned their attention to rehabilitating land that was being eroded, and ended up creating nesting places for several species of birds. That opened up a new enterprise — hunting leases.

“We found that if we really managed things — water, grass, forbes, trees — for our livestock, we’re also doing that for our wildlife. That goes hand in hand,” James says.

“I wouldn’t think you could be a good rancher if you aren’t a good steward of the land,” Minnie Lou says. “You might think you are but you’re kidding yourself.”

“The work is far from done,” daughter Mary Lou Bradley-Henderson says. “You’re really only limited by your imagination and spirit,” she says. “We’ve come a long ways and I think we’ve only begun.”

The award is managed by the National Cattlemen’s Foundation and sponsored by NCBA, Dow AgroSciences, the USDA Natural Resources Conservation Service and the U.S. Fish and Wildlife Service. To see video of the Bradley 3 Ranch, go to www.cattlementocattlemen.org, click on archives and view the Sept. 16, 2008, show.

www.NationalCattlemen.com

25

Continued from Page 11

Continued from Page 14

with tight budgets, there is an upside to this. Weaber and Lawrence both see this helping sharpen the focus on the core programs that Extension delivers.

When Iowa made its cutbacks, it made a decision to retain the technical expertise. But beyond shrinking budgets and new technology, the future of Extension lies somewhere out there on today’s ranches and farms.

“In the future, where are you going to find guys like me?” Paterson asks.

“We’ve got to make sure we culture and cultivate those good ranch kids.

We need someone with a farm background who understands production agriculture. Are we doing the right things in education to attract, cultivate and keep those kinds of kids?”

they produce a growing trend of “antis” who are trying to convince consumers that the affordable food they’re buying comes at great social cost. When asked what issue will be the most significant for producers to defend against in 2010, Kopperud said, “Onfarm drug use … basically any technologies on farms and ranches will be under the microscope.”

The important thing is to get engaged in showcasing how beef is produced. Many activists are successful because they exploit what disconnected and urban consumers don’t know about food production. NCBA’s check offfunded Masters of Beef Advocacy program is a great start. Sign up for the online program to learn how to talk to consumers about these issues (e-mail MBA@beef. org). If you’re not going to talk about what you do for a living, others will, and you probably won’t like what they have to say.

Beef producers can’t be everywhere

“Consumers are bombarded with nutrition information. We need to make sure our beef messages break through in a clear and concise way,” says Larry Schnell.

Larry Schnell

Auction market operator Dickinson, N.D.

Jacque Matsen is the director for Issues & Reputation Management at NCBA.

“Consumers listen to their doctors, dietitians and nutritionists — the people we’re educating about beef ’s health benefits,” he adds. “We’re sharing facts about beef as a nutrient-rich protein source — facts we’ve discovered through checkofffunded research.”

Beef-nutrition messages have been shared with health professionals, who have extended the messages to millions of customers nationwide. “Our checkoff plays an integral role in delivering fact-based beef information to these professionals and, ultimately, to consumers.”

NCBA’s Cattlemen to Cattlemen TV Show on RFD-TV Airs Tuesdays at 8:30 p.m.

My beef checkoff … extending your reach to help build beef demand.

Get to know your checkoff and hear more from Larry at

MyBeefCheckoff.com Funded by the Beef Checkoff.

26

October 2009 l National Cattlemen

Wednesdays at 10:30 a.m. and Saturdays at 9:00 a.m. (all times Eastern).

Check your local listings.

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