NCBQ0111 by Catharine Snell

WINTER 2011

Convention Preview ■ CattleFax ■ Capitol Concerns ■

30/30 vision. see horn ﬂy free

30 days before Ày emergence throXgh /30 days after the ¿rst frost. WKDW RI )ocXs on horn Ày control all season and see a difference in your herd. It’s a fact; cattle that are bunched-up and stressed from the constant biting of horn Àies are not gra]ing and gaining as they should be. 7he ideal horn Ày control program starts with Altosid IGR in your feed supplement 30 days before Ày emergence to manage the Àies that have overwintered in your pasture.

Then, continue Altosid IGR throughout summer and into fall until 30 days after the ¿rst frost to help reduce horn Àies overwintering again. It’s 30/30 vision that will keep your cattle peaceful, pro¿table and horn Ày free all year long. ®

Talk to your supplement provider, visit www.AltosidIGR.com or call 800-347-8272.

There’s no substitute for

Trust.

“In 1992 we suddenly experienced significant death loss in our calves as a result of a Salmonella outbreak. After collaborating with our herd veterinarian, Dr. Randall Spare, and conducting our own research, we initiated a treatment regimen and vaccination protocol using ENDOVAC-Bovi®. At the time ENDOVAC-Bovi was commonly used in dairies on the West Coast. Since then, ENDOVAC-Bovi has been included in Gardiner Angus Ranch’s herd health program. We have not lost a calf due to Salmonella in 18 years.” — Mark Gardiner, Gardiner Angus Ranch

There are many demands made on beef producers today. Trusting the science and the products used to keep calves alive, vigorous and healthy are as important as the trust placed in the best ranch hand or the most reliable working horse. ENDOVAC-Bovi with IMMUNE Plus offers unprecedented cross protection against the most prevalent disease pathogens—E. coli, Salmonella, Pasteurella and Mannheimia. Protecting herd health with ENDOVAC-Bovi begins with a call to your veterinarian. For more information, contact your veterinarian, visit www.immvac.com or call

(800) 944-7563.

WINTER

NATIONAL CATTLEMEN • The Journal for America’s Cattle Producers

Volume 27 • Issue 1

12 Real Personal Income/Expenditures Per Capita (2005 Doll Consumer Spending Rate (Opposite of Savings Rate) 98.5%

Savings rate < 2%

98.0%

8 The 2011 Cattle Industry Annual Convention and NCBA Trade Show will be held in Denver, Feb. 2-5. If you’re in the cattle business, this is the place to be. Be sure to read about what to expect at this year’s event, which is sure to be better than ever.

19 2011 MARCHING ORDERS 2010 definitely had its challenges when it came to policy and regulations that had the potential to negatively impact cattle producers. In spite of that, NCBA staff still had lots of wins in 2010 and is looking forward to 2011 and working with the 112th Congress. Changes in party leadership in the House of Representatives and a shift in balance in the Senate mean policy staff can take a more proactive approach and set a brighter course for the nation’s cattle producers in 2011.

97.0% 96.5%

6 LEADERSHIP & SOLUTIONS Bill Donald, NCBA President-Elect and a third generation cattle producer from Melville, Mont. encourages NCBA members to come to Denver and the 2011 Cattle Industry Convention and NCBA Trade Show with a united industry front to guide the association in the coming year.

8 AROUND NCBA The industry lost a true leader when Richard McDonald, retired president and CEO of Texas Cattle Feeders Association passed away last October. Read about McDonald’s contributions to the cattle industry in this issue’s edition of Around NCBA.

DEPARTMENTS

MOUNTAIN ROUND UP!

FEATURES

12 IT’S TIME FOR THE ROCKY

97.5%

Forecast

16 CATTLEFAX American consumers’ spending habits have changed a lot in the last 20 years and the diﬀerences could have an impact on the beef industry.

22 ALLIED INDUSTRY AND PRODUCT COUNCIL DIRECTORY NCBA appreciates the generous support of its Allied Industry and Product Council members and encourages you to support these partners by purchasing their products and services.

ABOUT THE COVER Bill Donald, president-elect of NCBA and a third generation rancher from Melville, Mont.

www.NationalCattlemen.com Th is address takes you to National Cattlemen online.

National Cattlemen’s Beef Association reserves the right to refuse advertising in any of its publications. National Cattlemen’s Beef Association does not accept political advertising in any of its publications. National Cattlemen’s Beef Association does not accept advertising promoting third-party lawsuits that have not been endorsed by the board of directors.

Winter 2011 National Cattlemen

AHA017589P223AVG

LEADERSHIP & SOLUTIONS

AROUND NCBA

NATIONAL CATTLEMEN Focus on Unity and Sustainability The Journal for America’s Cattle Producers

WINTER 2011 VOLUME 27, ISSUE 1

s we gear up for the consumers, which makes us 2011 Cattle Industry money and offers consumers Annual Convention greater choice at the retail and NCBA Tradeshow Feb. market. When consumers 2-5, in Denver, I urge my are happy, we’re happy. fellow cattlemen to focus As individuals, we do on unity and sustainability. a lot to make our industry Too often we find ourselves sustainable, but we can’t Bill Donald, NCBA do it all. That’s why we focused on challenges rather President-Elect than opportunities. Don’t trust and invest in NCBA. get me wrong, this industry is facing I don’t know about you, but I tremendous challenges, but the key don’t have time to put on cooking to our success is transforming these demonstrations and beef promotion obstacles into opportunities for cattle seminars at retail markets across the producers of this generation and the country. But it’s happening because next. NCBA is unique in the fact that of NCBA and partnerships with the it represents all segments of the beef checkoff and the Federation of State industry. While this is a good thing, Beef Councils. As producers, we it sometimes causes internal division. don’t have the resources to march the Let’s move beyond this. I encourage halls of Congress telling our story. you to come to Denver with unity on NCBA does that too. The association your mind. We absolutely must act on is advocating for commonsense a united front for all cattlemen and policies in Washington, D.C., and is women. on a mission From beef to stop promotion government and producer overreach education to —primarily our efforts in unnecessary our nation’s and capitol, we have to stand firm and burdensome government regulations. rally together in order to stop those From beef promotion to lobbying who want our industry to come to a efforts in Washington, D.C., NCBA screeching halt. is fighting to make this industry Unity is the key to sustainability. sustainable. If consumers aren’t aware That brings up the question, what in the of the nutritional benefits of beef, world is sustainability? My definition is sustainability goes out the window. quite simple. To me, sustainability is a If we are regulated out of business, beef industry that provides for the next sustainability for future generations generation of producers and consumers. is gone. Cattlemen and women do their part I encourage you to come to Denver to contribute to the sustainability of proud of your national organization the beef industry. Specifically, farmers and with constructive suggestions that and ranchers are undoubtedly the best will make NCBA better. We need your stewards of the land, which allows the input in order to sustain our association land to be sustainable and profitable and to make it a better outfit for the for future generations. Farmers beef industry as a whole. Come to and ranchers are also creative and Denver ready to serve as a united front innovative thinkers who take risks in for this industry that we all call our order to provide higher quality beef for livelihoods and our passion.

Come to Denver proud of your national organization.

Winter 2011 National Cattlemen

2010 Officers President President Elect Vice President Federation Division Chairman Policy Division Chairman Chief Executive Officer Publishing Team

Steve Foglesong Bill Donald J.D. Alexander Scott George Bruce Hafenfeld Forrest Roberts Mike Deering Holly Foster Kendal Frazier Mary Geiger Warren Prosser Don Waite

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.

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 (202-347-0228). National Cattlemen is a 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 Heather Ciocca Publication Director Robert Shafer Advertising Sales Jacob Fisher, John O’Neil, Paul Woods, Pete Dicks, Robert Shafer Marketing Associate Erin Sevitz Layout Catharine Snell Advertising Art Reanne Dawson ©2010 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.

IGENITY® is changing the way you see your herd. It gives you the inside information you need to make more confident and informed decisions. From a single DNA sample, it creates a comprehensive profile of key economically important traits; traits like marbling and stayability that can help improve genetic selection and advance breeding programs. Simply put, it’s an easy-to-understand genetic profile that gives you an earlier, more accurate look at your herd’s potential.

Start moving your operation forward at IGENITY.com or call 1-877-IGENITY.

YOUR NCBA

AROUND NCBA

In Memoriam – Richard McDonald

he cattle “During all of the industry lost one years that I had the of its best when privilege of knowing Richard McDonald, Richard and retired president and working with him CEO of Texas Cattle on TCFA business Feeders Association and activities, I was (TCFA), passed away most impressed with Oct. 29 following an the integrity and inspiring year-long forthright manner battle with cancer. in which he carried Born Feb. 21, out his business Richard McDonald 1944, in Clifton, and personal Texas, to Roy and activities. He was Werner McDonald, Richard grew largely responsible in creating an up in San Benito, Texas, honing environment, and even a culture, his leadership abilities in FFA and within TCFA that is admired by 4-H, including serving as chairman all of his contemporaries in similar of the State 4-H Council. organizations,” said Paul Engler, Following graduation from founder of Cactus Feeders and San Benito High School, Richard 2002 TCFA chairman. “In fact, attended Texas A&M University, I would go so far as to say that graduating with a bachelor’s this is a legacy that he has left to degree in animal science in 1966. our industry.” He earned a master’s degree in The Richard McDonald 1969 and a PhD from Louisiana Leadership Institute has been State University in 1972 in animal established in honor of this great breeding, nutrition and statistics. leader’s legacy. The program offers His first job was with the Texas leadership development and training Agricultural Extension Service as for young people involved with an area livestock specialist. cattle organizations throughout McDonald joined TCFA as the United States. Contributions in executive assistant in 1974 and support of this effort may be sent to: retired as president and CEO in The Richard McDonald Leadership 2006, leaving giant footprints Institute, c/o The Amarillo Area on the growth of the association. Foundation, 801 S. Fillmore, Suite Former TCFA CEO Charlie Ball 700, Amarillo, Texas 79101. once wrote: “…McDonald became NCBA wishes to extend its known as a person who did his deepest sympathy to Richard’s wife homework, stood his ground and Sharon and his entire family. shot straight.” “As I reflect on all the association Upon retirement from TCFA, executives I’ve had the opportunity McDonald continued to share to work with, Richard is at the top his experience and wisdom with of the list. The positive impact of his others on numerous boards and many years of association leadership projects and was a consultant with at TCFA is recognized by the entire McCormick Company in Amarillo, beef industry,” said NCBA CEO Texas until his death. Forrest Roberts.

Winter 2011 National Cattlemen

Animal Agriculture Groups Urge Congress to Level Playing Field for Corn-based Ethanol NCBA, joined by five organizations representing the livestock, poultry and meat industries, sent letters to leadership in the U.S. House of Representatives and the U.S. Senate encouraging them to allow the ethanol blenders’ credit and the import tariff on foreign ethanol to expire in December and to oppose a proposal to create new subsidies for corn-based ethanol and to change the definition of “Advanced Biofuels” to include corn ethanol in the Renewable Fuels Standard. “NCBA supports our nation’s commitment to reduce dependence on foreign energy and efforts to develop forms of renewable energy, but doing so can’t come at the expense of cattle producers,” NCBA Executive Director of Legislative Affairs Kristina Butts says. “It is time for the mature corn-based ethanol industry to operate on a level playing field with cattle producers and other feed-grain users.” “From December 2007 to February 2010, cattle feeders have lost $7 billion in equity due to high feed costs and economic factors that have negatively affected beef demand,” according to NCBA Chief Economist Gregg Doud. “Congress should transition to a market-based approach to renewable energy production and stop picking winners and losers in the alternative energy sector.”

NCBA’s 2011 “Redbooks” Available For more than 25 years, NCBA’s Integrated Resource Management (IRM) Redbooks have provided an effective way for cattle ranchers to record their production records in order to enhance profitability. The 2011 Redbook provides more than 100 pages to record calving activity; herd health; pasture use; cattle inventory; body condition; cattle treatments; and more. The books also

AROUND NCBA contain an annual calendar; address section; Beef Quality Assurance national guidelines; and proper injection technique information. The IRM Redbooks can be customized with company information and/or logo on orders of 100 books or more at a reduced rate. Individual 2011 Redbooks are available for purchase for $6.25 each, plus shipping through NCBA’s website at www.beefusa.org. Please contact Grace Webb at 800-525-3085 for additional information.

NCBA Urges Congress to Quickly Ratify U.S.-Korea Free Trade Agreement The United States and South Korea on Dec. 3, 2010, reached an agreement on trade in automobiles that should finally lead to the ratification of this pending free trade agreement (FTA). The National Cattlemen’s Beef Association (NCBA) supports the agreement and is encouraged the countries have moved one step closer to ratifying what will be one of the most significant bilateral trade agreements to date for U.S. beef producers. NCBA Chief Economist Gregg Doud says the agreement, which was finalized on April 1, 2007, is historic for the beef industry because it will completely phase out South Korea’s 40 percent tariff on U.S. beef imports in equal installments over the next 15 years. “We are talking about $325 million in tariff reductions annually once fully implemented in an export market for U.S. beef that back in 2003 was worth $815 million,” Doud says. U.S. boneless beef from cattle less than 30 months of age briefly reentered Korea between April 27 and Oct. 5, 2007. South Korean imports of U.S. (bone-in and boneless) beef from cattle less than 30 months of age have steadily increased since the ban was again lifted on July 10, 2008. The United States is not the only nation working on a FTA with

South Korea. According to the U.S. Department of Agriculture, Korea has FTAs in place with Chile, India and the 10-country Association of Southeast Asian Nation’s group. Additionally, Korea has finalized an FTA with the 27-nation European Union and is also negotiating new FTAs with Canada, Australia, New Zealand and China. Doud says NCBA urges Congress to ratify this agreement quickly because “if Australia implements the same terms ahead of us, they would have a 2.67 percent tariff advantage over U.S. beef for the next 15 years.” “Finalizing the U.S.-Korea Free Trade Agreement will likely set the benchmark for U.S. beef trade with Japan, China and Hong Kong. There is tremendous potential to increase U.S. beef exports in Asia, especially China,” Doud says. “It is time for the U.S. to reinvigorate efforts to finally get back into these key Asian markets for U.S. beef.”

NCBA Releases New E-newsletter Environmental Steaks NCBA has launched a monthly electronic newsletter entitled Environmental Steaks where members can learn about key environmental policy issues and the actions NCBA is taking to address them. New editions of Environmental Steaks are featured in NCBA’s Member eUpdate. To subscribe to eUpdate, call 202-347-0228 or e-mail information@beef.org.

Proposed 2010 Dietary Guidelines Misguide Consumers NCBA Executive Director of Legislative Affairs Kristina Butts says the USDA Dietary Guidelines Advisory Committee’s recommendation to move to a plantbased diet is sending the wrong message to consumers. Adding to the misconceptions about the importance of meat in a well-balanced diet is USDA’s recently launched school

lunch recipe contest that excludes meat from the recipe categories. “First off, USDA’s Dietary Guidelines Advisory Committee’s recommendation for a plant based diet causes consumers to wrongly assume that they are eating too much meat. We are not eating too much meat. The fact is, plants already make up 70 percent of our diets. On average, Americans are consuming about 2.3 ounces of red meat per day, well within 2005 Dietary Guidelines for Americans,” says Butts. “By excluding meat from its Recipes for Healthy Kids competition, USDA continues to add to the misconception that meat is over consumed in the United States.” The Dietary Guidelines issued by USDA and the Department of Health and Human Services are updated every five years. Butts says U.S. cattlemen and women need to encourage their elected lawmakers to ask USDA to use science and facts when finalizing the dietary guidelines. Butts says lean beef needs to be incorporated as part of the solution to curbing obesity and promoting a healthy lifestyle for children and adults. “With the obesity epidemic growing and the baby-boomer generation aging, the benefits of high-quality protein like beef have never been more critical,” Butts says. “Calorie for calorie, beef is one of the most naturally nutrient-rich foods out there. A three-ounce serving of lean beef is an excellent source of protein, zinc, vitamin B and many other key nutrients. Beef should be part of a well-balanced diet, accompanied by fruits and vegetables.” The final recommendations are expected in January 2011.

PLC, NCBA Support Delisting Gray Wolf The Public Lands Council (PLC) and NCBA support the State Sovereignty Wildlife Management Act, which would return management authority of

www.NationalCattlemen.com

AROUND NCBA gray wolves to the states and remove them from the endangered species list. The legislation was introduced by U.S. Representatives Rob Bishop (R-Utah); Mike Simpson (R-Idaho); Denny Rehberg (R-Mont.); Cynthia Lummis (R-Wyo.); Trent Franks (R-Ariz.); Wally Herger (R-Calif.); Jason Chaffetz (R-Utah); and Dean Heller (R-Nev.). PLC and NCBA support their efforts to return wolf management to states and bring relief to livestock producers. â&#x20AC;&#x153;Wolf depredation of livestock is becoming increasingly prevalent in areas where wolves have been introduced under the Endangered Species Act (ESA). We lost a couple of calves and a cow this summer,â&#x20AC;? says NCBA President-elect and Montana rancher Bill Donald. â&#x20AC;&#x153;When the pack on our ranch grows to more than eight, wolf depredation of livestock starts. If the pack remains small it doesnâ&#x20AC;&#x2122;t bother cattle. Th is is evidence that wolves no longer need to be listed under the ESA. However, instead of

delisting wolves, the U.S. Fish and Wildlife Service (FWS) continuously increases ESA Recovery Plan goals, making delisting impossible.â&#x20AC;? According to PLC President and federal lands rancher John Falen, unlike many species listed under the ESA, wolves pose a serious threat to wildlife, humans and private property, especially livestock. Falen said the FWS does not have resources to manage continued listing of the gray wolf under the ESA. More specifically, he noted that studies have shown for every confirmed kill of livestock there are seven to eight that go unconfirmed. â&#x20AC;&#x153;Rather than continuing to allow the distant federal government to dictate how ranchers manage and care for their herds, the State Sovereignty Wildlife Management Act would return authority to the states where it rightly belongs,â&#x20AC;? Falen says. â&#x20AC;&#x153;Wolf depredation threatens ranchersâ&#x20AC;&#x2122; livelihoods and rural communities and economies relying on a profitable

All cows are

agricultural industry. It is time to end the unwarranted listing of the gray wolf. We urge more members of Congress to support this legislation.â&#x20AC;?

Farmers and Ranchers Authorize New Alliance In October, more than 60 representatives from more than 20 national food and agricultural organizations met and agreed to incorporate a U.S. Farmers and Ranchers Alliance (USFRA). NCBA was in attendance at this meeting and agrees with the need and intent for a joint coalition that will further enhance consumer trust in modern food production. â&#x20AC;&#x153;This alliance encompasses a broad array of industry and commodity groups,â&#x20AC;? says Forrest Roberts, CEO of NCBA and a member of the USFRA founding board of directors. â&#x20AC;&#x153;When it all comes down to it, though, weâ&#x20AC;&#x2122;re all in the business of raising food and we all recognize that a lot of consumers donâ&#x20AC;&#x2122;t really

Not Created Equal.

The Angus cow is the basis of the beef business. Sheâ&#x20AC;&#x2122;s a cost reducer and a quality builder. Her calves will put more dollars in your pocket. Sheâ&#x20AC;&#x2122;s built by decades of selection for performance. And sheâ&#x20AC;&#x2122;s backed by the industryâ&#x20AC;&#x2122;s most comprehensive genetic improvement program. So if your goal is to improve your cow herd: Look no further than the Angus cow. She has no equal.

Thatâ&#x20AC;&#x2122;s the power of

ANGU$.

'SFEFSJDL "WF 4BJOU +PTFQI .0 t XXX BOHVT PSH t ÂŞ "NFSJDBO "OHVT "TTPDJBUJPO

503959_American.indd 1

Winter 2011 National Cattlemen

11/3/10 8:29:08 PM

AROUND NCBA understand how their food is raised. All of the groups represented by USFRA have pursued various efforts as individual entities to better communicate with consumers, but this coalition represents a strategic

effort across the food industry spectrum that should better leverage our individual programs and continue to build awareness about the job that America’s farmers and ranchers undertake every day.”

molymfg.com

“

Rich Porter, Reading, KS 2010 BEEF Stocker Award Winner states:

RET GATE

TM TM

MOLY’S SYSTEM with TURRETGATE: has reduced exposure to people getting injured during processing by more than 90% frees up labor resources makes for less stress on the cattle

“

LOW-STRESS TurretGate • Circular Fencing Dual and Single Alleyways CATTLE HANDLING Transition • SILENCER Chute 785-472-3388

*Components may be purchased separately

503947_Moly.indd 1

11/18/10 12:12:04 PM 504879_Bayer.indd 1

11/18/10 10:42:39 AM www.NationalCattlemen.com

YOUR BUSINESS

It’s Time for the Rocky Mountain Round Up! By Holly Foster

uring the first week of February, thousands of cattle industry members will descend on the Mile High City for the largest event of its kind. The 2011 Cattle Industry Annual Convention includes the annual meetings of NCBA, the Cattlemen’s Beef Board (CBB), American National Cattle Women (ANCW), CattleFax and the National Cattlemen’s Foundation. Make plans now to attend this year’s convention, which will be held in Denver, Feb. 2-5, 2011. “If you’re in the cattle business, the 2011 Cattle Industry Convention is where you need to be,” says NCBA President Steve Foglesong. “This is the time for our members and other representatives of other national industry organizations to shape and create policy that will guide our work in the coming year. It’s also one of the best opportunities you have to network with other cattle producers and to take advantage of world class educational programs.” If you’re looking for ways to improve your farm and ranch businesses, be sure to register for the 18th Annual Cattlemen’s College sponsored by Pfizer Animal Health with lunch provided by Certified Angus Beef, which will be held Wed., Feb. 2. This year’s program will feature 18 sessions with topics ranging from “Fundamentals of Genetics and DNA Technology” to “Financing in the Age of Uncertainty.” There will also be a special Cattlemen’s College Plus session held at the National Western Complex, featuring live demonstrations of “Stockmanship and Stewardship” and “Reproductive Management Hands On.”

Winter 2011 National Cattlemen

NCBA President Steve Foglesong addresses convention goers during the Opening General Session at last year’s Cattle Industry Convention. “For the past 17 years, hundreds of cattle producers have attended Cattlemen’s College sessions and have gained invaluable knowledge that they’ve been able to take back to their operations to improve their bottom line,” says Tom Field, executive director of producer education for NCBA. “We do our best to ensure the topics are timely and relevant and that we feature leading experts. That commitment to a quality program is evidenced by the number of people who return year after year to attend.” The expert market analysts from CattleFax will also be conducting

their Annual Outlook Seminar on Friday, Feb. 4. This is usually one of the most highly attended sessions during the convention and provides attendees insight into the factors affecting supply and demand, the outlook for cattle and beef prices, as well as an analysis of issues that will shape the beef industry in the future. The session is free to CattleFax members or Cattlemen’s College registrants ($30 for all other convention attendees). The NCBA Trade Show is another place to be to learn about the newest products and tools to use on your

www.NationalCattlemen.com

YOUR BUSINESS

Hundreds of cattle producers from across the country will take advantage of the great educational opportunities oﬀered at the 2011 Cattle Industry Convention and NCBA Trade Show. farm or ranch. You can expect to see more than 250 exhibitors with information about anything you might need to run your business. The trade show will also feature cattle handling demonstrations in the Cattle Learning Center Demonstration Arena, live music and several receptions throughout the convention. The Cattle Industry Annual Convention and NCBA Trade Show is something that the whole family can enjoy. To make sure that younger attendees have a chance to participate, NCBA is again offering several youth programs. This will be the third year that the convention will include a Youth Quiz Bowl, Public Speaking Contest, Team Marketing Contest and Cattle Judging Contest. Additionally, the National Collegiate Quiz Bowl will be held Friday, Feb. 4. The Opening General Session on Wed., Feb. 2 will officially kick off the 2011 Cattle Industry Annual Convention. Attendees will hear from association leadership, but will also hear the inspiring story of Richard “Pitch” Picciotto, the highest-ranking firefighter to survive the World Trade Center collapse and the last fi reman to escape the devastation. Picciotto has chronicled his experience in the

Winter 2011 National Cattlemen

book Last Man Down, which is a tribute to the 343 fighters and 2,400 civilians who lost their lives in the Sept. 11, 2001 terrorist attacks. His story will be an inspiration to all those attending and should not be missed. Karl Rove, senior adviser to President George W. Bush from 2000-2007, deputy chief of staff from 2004-2007, and political pundit, will be the featured speaker for General Session II, which will occur on Friday morning. Rove will discuss “America’s Challenges” in a thought-provoking session that will feature his “genuine feel of inside knowledge.” In addition to the educational and business opportunities that the convention has to offer, there are also some fun social events planned. The Best of Beef Breakfast will recognize industry partners and producers for outstanding service, dedication and commitment to the industry. This Thursday morning event will also feature the crowd-pleasing cowboy poet Baxter Black who has been described by the New York Times as “… probably the nation’s most successful living poet.” The Cattlemen’s Tailgate Party will be the place to be on Thursday night and will be held at INVESCO

Field at Mile High, home of the Denver Broncos. In addition to a fun “half-time” show and live music, the evening will also feature the presentation of the 20th Annual National Environmental Stewardship Awards. Selected from NCBA’s seven regions, the national award winner will be announced and honored during the evening’s events. Closing out the convention entertainment, will be the Grand Finale Cowboy Comedy Club on Friday, Feb. 4 featuring Larry the Cable Guy. Following the comedy club, attendees will have a chance to dance the night away at the Boot, Scootin’ Boogie After Party. Convention participants will get down to business with several meetings that occur on Thursday, Feb. 3, including the NCBA Federation Forum and the Regional Caucus Meetings. Joint Committee and Subcommittee meetings and the NCBA Policy Committee and Subcommittee meetings will begin Friday afternoon at 12:30. “These meetings represent the grassroots efforts of our organization’s members to create the policy that will guide the association leadership and staff through the coming year,” says Steve Foglesong, president of NCBA. “Member participation is so critical to these efforts and ensures that the actions the Board of Directors takes at the annual business meeting reflect the needs of the association.” The 2011 Cattle Industry Annual Convention and NCBA Trade Show will wrap up on Saturday, with the NCBA Board of Directors and Cattlemen’s Beef Board meeting and will conclude with the NCBA Annual Membership Meeting. For information about any of the convention events or to register, please visit www.beefusa.org or call 303-694-0305. Holly Foster is a fourth-generation cattle producer and freelance writer based in California.

www.NationalCattlemen.com

Understanding the Consumer By Warren Prosser

.S. consumers spending habits have shown considerable changes in the last 20 years. Consumers’ purchasing power is a function of how much they earn in wages and how much they borrow or save. Evaluating the consumer from the late 1980s to 2008, some pertinent trends become apparent. Consumer debt per capita more than doubled; the savings rate went down by 75 percent; real disposable income per capita rose over 40 percent; and more than 50 percent of the working- age population was employed full time, which is the highest number on record. The combination of those items allowed for robust economic growth, with consumers being very optimistic, and financially flexible. The charts illustrate how consumers historically expected economic improvement and also the historical change in consumer spending behavior. During the 1990s, consumers were optimistic and the job market was encouraging. However beginning in 2000, consumers basically borrowed to support their spending habits. It is also worth noting that currently about 47 percent of the U.S. working age population has a full-time job. This is the lowest level since the 1980s. Likewise, consumer confidence and sentiment represent multi-decade lows. Looking to 2011 and beyond, the catalyst for incremental beef demand would be an unexpected decline in the savings rate. However, the housing market is expected to

Winter 2011 National Cattlemen

Real Personal Income/Expenditures Per Capita (2005 Dollars) Consumer Spending Rate (Opposite of Savings Rate) 98.5%

$42,000

Savings rate < 2%

98.0%

Forecast

$41,000 $40,000

97.5%

$39,000

97.0%

$38,000

96.5%

$37,000

96.0%

$36,000

95.5%

$35,000

95.0%

$34,000

94.5% 94.0%

$33,000

Savings rate > 5%

$32,000

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10F 11F 12F

CATTLEFAX

YOUR MARKET UPDATE

Source: BEA, FederalReserveBankofSt.Louis

continue to force consumers to pay down debt, which means regardless of an improved economic, job, and consumer conﬁdence outlook, Americans could still spend less of their income.

Bottom Line Meat supplies are tight globally, and the outlook for net disposable income, consumer sentiment, and employment is forecasted to improve; hence, higher beef prices are expected. That being said, there are still many concerns. Consumer purchasing power and conﬁdence are still expected to be about 7 percent, which is 50 percent less than the peak of 2007, respectively.

Likewise, over the past 20 years the consumer has been devoted to borrowing and spending, while not saving. Today the picture is diﬀerent and the reverse is true. 2011 retail meat prices will likely test the consumer, and it is unclear how much the consumer can bend. Presumably, if the savings rate does continue to rise and the outlook for incomes is uninspiring, expect U.S. consumers to be more resistant to higher prices than they have been in the past two decades. Warren Prosser is a market analyst with CattleFax, a member-owned market information organization serving producers in all segments of the cattle business.

Join NCBA’s Cattlemen to Cattlemen live from the 2011 NCBA Trade Show!

Host Kevin Ochsner will bring you news, education and entertainment live from Denver, Colorado! Tuesday, February 1, 2011 – 8:30 p.m. eastern Wednesday, February 2, 2011 – 8:00 p.m. eastern Live on RFD-TV www.CattlemenToCattlemen.org Check us out on Facebook and Twitter!

Healthier Cattle – Less Treatment Costs Our operation has around 330 head of mostly purebred registered Angus and is located in central Nebraska, an area that has low levels of copper, zinc and selenium. We have a good oral mineral supplement program but we wanted to be sure that our cattle are receiving optimum levels of trace minerals. The injectable is a logical choice because it gives us a sure way of getting those essential trace minerals in our cattle at the times they need them the most. We started using MULTIMIN® about 4 years ago on our calves. It was given at birth and again at weaning. The results were so impressive that we now use MULTIMIN on our entire herd. Adding MULTIMIN to our herd health program has helped improve immunity and overall health. Treatment costs are a fraction of what they were before MULTIMIN. We’re just not seeing pneumonia and other health issues that we were seeing prior to the use of MULTIMIN. Our reproduction efficiency has increased, especially with our first calf heifers, and the breed-back time with our older cows has improved. We are attaining higher weaning weights and getting better feed efficiency with improved daily gains. The red rusty look that used to be in some of the hair coats is gone. MULTIMIN more than pays for itself in the herd health and reproduction improvements that we’re seeing, plus treatment costs have decreased with MULTIMIN.

Danny Poss Poss Angus, Scotia, Nebraska

Get the Facts www.multiminglobal.com 1- 866-269-6467 • 1- 970-372-2302 Danny Poss with sons, Nolan and Nate, injecting newborn calf with MULTIMIN® 90.

your herd healthy through the worst of winter with Ragland Mills protein and mineral supplements. Our products are designed with durability and palatability in mind, so your herd stays healthy through every season.

Tubs in 125 or 200 pound sizes. They’re a convenient, economical way to get your herd the nutrients they need. Durable and palatable, Ragland tubs help your herd make the most of available forage year round.

503104_Multimin.indd 1

11/3/10 8:38:44 PM

Booth #8106

• Manage your own cattle and / or other owners in multiple feed yards! • Enter Cattle Inventory by Lot, Manually or Automatically! • Allocate Futures, Options and Contracts to Marketing Month, Lots or Owners! • View, Print or E-mail Reports! Assets Short Positions Short Calls: Short Futures: Long Puts:

Tough enough to be fed in bunks or on the ground, versatile enough to feed to all types of ruminants. Money-Maker gives your herd protein, vitamins and minerals to keep them growing and healthy through tough weather.

Gross

Per CWT

Long Calls:

Sales Revenue:

$353,018.25

$87.75

5.5

55 %

Long Futures:

Futures Net P/L:

$12,043.71

$2.99

20 %

Short Puts:

75 %

Total Liability

7.5 -2.5

#1 Profitability #2 Price Risk

Sales Revenue + Futures & Options

Liabilities Long Positions %

Total Assets:

Strategy

• Lot Summary – Net P/L of cattle with Hedges by Lot, Month or Owner! • View Cattle Inventory by Lot, Month, Owner, Yard, Quarter or Year! • Do What – If scenarios to help Optimize Your EQUITY! • Risk Management Positions!

Need For Goal:

#3 Basis Risk

Over

Net

Short :

Planned Objectives

Net Price Received (Futures & Options) Per Head Gross Per CWT $1,225.04

7.5

Actual Results

Risk Per Head

Objective

$20.00

Actual

$39.62

$1.45

$19.62

Break Even

$88.25

Price Received

$87.75

-$0.50

-$6.78

Actual

$1.75

$0.00

Proj Basis

$1.75

Hunters and conservationists can help wildlife weather winter better with our Deer and Game Blocks. Ragland Mills’ Deer and Game Blocks have the protein and minerals wildlife need to thrive even in harsh seasons.

$87.75

$1,184.63

Total Exp & Fees:

-$353,254.60

-$87.81

-$1,185.42

-$236.35

-$0.06

Fut & Opt P/L: Net P/L: Net ROE:

-$0.79

$12,043.71

$2.99

$40.42

$11,807.36

$2.93

$39.62

$150.00 Equity Per Head

71 % 9%

Net ROI: With Premiums:

Total ROI:

504646_CattleHedging.indd 1 11/22/10 6:49:06 PM

Per Head

$353,018.25

Total ROE:

Winter 2011 National Cattlemen

$0.00 Per CWT

Sales Revenue: Profit / Loss:

503645_Ragland.indd 1

$90.74

$365,061.96 Risk Per CWT

Gross

REQUIRED

Protected by U.S. Patent # 7,285,292.

$11,807.36

$2.93 12.7 % Equity

$39.62 71 % 9%

11/18/10 11:35:39 PM

YOUR CAPITOL CONCERNS

2011 Marching Orders By Mary Geiger

espite the multiple challenges cattle producers faced in 2010, NCBA’s Washington, D.C., office had multiple successes in its efforts representing cattlemen and women on Capitol Hill. From stopping pieces of legislation that would impose a costly, burdensome cap and trade scheme; ban the use of antibiotics in animal agriculture; and give the Environmental Protection Agency (EPA) authority to regulate every drop of water in our country, NCBA’s Washington, D. C. staff made sure members of Congress understood how these pieces of legislation would harm cattle producers, and ultimately, helped stop these bills from becoming law. Looking forward to the 112th Congress, NCBA is optimistic that it will have more success supporting legislation beneficial to the nation’s cattle farmers and ranchers, and not simply opposing legislation that could be harmful to cattlemen and women.

Kicking Off 2011 at Convention “With the building of relationships with the more than 100 new members of Congress and strengthening ties with those members returning to Washington, the 112th Congress has potential to be a good one for U.S. cattlemen and women,” NCBA President-elect Bill Donald says. “Convention next month will give NCBA members the opportunity to review our policy and give our Washington staff their marching orders for the year.” Donald says that members’ input during the policy process at the Cattle Industry Convention is critical to deciding NCBA’s priorities and determining how it will work any given issue. During the 2011 convention, current expiring NCBA policies and interim policies set during

the 2010 Legislative Conference will be discussed. “Our members will be addressing major policy issues at convention this year—ranging from federal farm programs to environmental issues and from cattle health to property rights and much more,” says Donald. “While the policy discussions are an important component to convention, it isn’t the only part. Th is year our members will have the opportunity to hear from Karl Rove, former advisor to President George W. Bush, and be entertained by comedian Larry the Cable Guy and cowboy poet Baxter Black.” Donald says the convention gives individuals from all segments of the cattle industry, young and old, from across the country the chance to come together and interact at the NCBA Trade Show, during general sessions and at the social events.

Midterm Election’s Impact on NCBA In the recent midterm elections, the U.S. House of Representatives saw a change in the majority party and the U.S. Senate became more balanced in power. NCBA Vice President of Government Affairs Colin Woodall says NCBA looks forward to opportunities to work with the new Congress. “There are a lot of new faces coming to Washington, D.C., and we are hopeful that they will choose to stand on the side with our nation’s farmers and ranchers, not against them,” Woodall says. “While we are optimistic about the new Congress, we’ve still got our work cut out for us because many of the new members did not come from an agricultural background and don’t have a strong understanding of the beef industry.” Woodall says the Washington, D.C. office has already started reaching out to the new members and to the new committee leadership to

begin educating them about NCBA’s priorities and about the beef industry. He also says members of Congress need to hear from cattle producers across the country and encouraged NCBA members to engage with their elected officials from day one of the 112th Congress.

Holding the Administration Accountable Change is coming to the nation’s capital in 2011. Fortunately for cattle producers, Woodall says folks around the country stood up and joined NCBA’s fight against a big government agenda by sending commonsense individuals to Washington, D.C. who will hold the administration accountable by bringing officials to Capitol Hill to explain their actions. “This administration has some explaining to do,” Woodall says. “NCBA and all stakeholders deserve the chance to question the administration about their policy proposals, and we look forward to working with the new majority in Congress to hold the federal government accountable in 2011.” In addition to the U.S. Department of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration’s (GIPSA) proposed rule on livestock and poultry marketing, NCBA is also concerned with the EPA’s draft policy assessment on particulate matter (dust) released in June, which calls for regulations twice as stringent as the current standard. NCBA is also concerned about EPA’s efforts to circumvent Congress and impose carbon emission regulations, ethanol mandates and more. “The role of the federal government is not to regulate industries out of business,” says Bill Donald. “It’s time for USDA to explain how the proposed GIPSA rule will improve marketing in the livestock industry

www.NationalCattlemen.com

YOUR CAPITOL CONCERNS and how the EPA’s onerous and nonscience based regulatory proposals and energy mandates will repopulate rural America.”

Legislative Priorities The current Farm Bill is set to expire in 2012, but Congress has already begun holding hearings to set the foundation for the next bill. NCBA will review its memberpassed policy directives at the Annual Cattle Industry Convention in February. NCBA Executive Director of Legislative Affairs Kristina Butts says it is important for NCBA to establish its policy priorities for the next Farm Bill. “We take our cues from our members,” Butts says. “Knowing what their priorities are for the next Farm Bill only serves to help us advocate for them on Capitol Hill. With our nation’s debt climbing and with the current budgetary restrictions, it will be more challenging than ever before to pass a Farm Bill, but from conservation and nutrition, to trade and competition, beef cattle producers have a major stake in the Farm Bill.” While the House and Senate Agriculture Committees will spend a significant amount of time working on the next Farm Bill during 2011, that issue will not be NCBA’s only legislative priority. Butts says that NCBA will also closely monitor legislation regarding food safety and nutrition, energy and tax issues, as well as animal welfare and environmental policy on behalf of its members.

Continued Battle Over GIPSA Rule While the comment period for the proposed GIPSA rule closed Nov. 22, 2010, the work on this issue is far from complete. USDA received more than 62,000 comments and is currently in the process of reviewing all of the comments. “The GIPSA rule would harm producers, consumers and rural America. The ball is in USDA’s court right now, and I am hopeful they are

Winter 2011 National Cattlemen

carefully reviewing all comments, especially those from those with skin in the game—real farmers and ranchers—before moving forward,” Woodall says. “The proposed rule would, among other things, restrict marketing agreements between producers and meat packers, dictate the terms of production contracts, require additional paperwork, create legal uncertainty and limit producers’ ability to negotiate better prices for the animals they sell.” NCBA submitted comments on the proposed rule and will continue to advocate for USDA to pull the proposal.

Expanding Markets for U.S. Beef “With 96 percent of our world’s population living outside of the United States’ borders, it is absolutely critical to our industry to expand opportunities to sell beef in the international marketplace,” says Bill Donald. “Expanding markets for U.S. beef will help President Obama achieve his goal to double exports in five years while also helping family farms stay operating and rural communities thriving.” According to the U.S. Meat Export Federation, beef export dollar amounts are higher than they have been since 2003. Th rough September, exports were 27 percent higher in value than last year at $2.9 billion. NCBA will continue to push Congress to ratify the South Korea-U.S. Free Trade Agreement (KORUS). If implemented, the KORUS FTA would reduce Korea’s current tariff from 40 percent to zero over fifteen years. The U.S. beef industry would see $15 million in new tariff benefits in the first year alone, with about $325 million in tariff reductions annually once fully implemented. If KORUS enters into force, Korea could eventually be a one billion dollar market for U.S. beef producers. Many see expanding trade opportunities as an area the new Republican majority and President

Obama can find agreement. Donald says that he is hopeful the 112th Congress will finish pending trade agreements and work to expand markets for U.S. beef in other international markets. In addition to the KORUS, NCBA will continue supporting passage of trade agreements with Panama and Colombia, and according to NCBA Chief Economist Gregg Doud, will look for avenues to reopen markets for U.S. beef in China and to end the unscientific trade restrictions Japan has in place for U.S. beef. “Beef exports have been a bright spot for the industry this year. In fact, we are on pace to reach record dollar amount levels for 2010. But we can do better,” Doud says. “This administration has passed multiple “stimulus” bills over the past couple of years, but for the U.S. beef industry, expanding trade is the best economic stimulus.”

Time to Roll “The past couple of years have brought major changes to the beef industry, to the political landscape and to our country as a whole,” Donald says. “But looking forward to the next year, I am hopeful for the beef industry.” Donald says that NCBA’s success in 2011 will require all members to stay involved. He says no matter the issue—from environmental to economic and more—members of Congress and the administration need to understand how public policy proposals affect beef producers. “Well-funded anti-animal agriculture activists are more than willing to tell their version of our story,” says Donald. “But we can’t let that happen. Now, more than ever before, we have to be willing to talk about our jobs producing the safest and most abundant food supply in the world. The future of our industry depends on it.” Mary Geiger is associate director of communications for NCBA and is based in the Washington, D.C. office.

G I B WS E N

ON GETTING YOUR CALVES

BOVATEC BIG IS COMING SOON. Â®

"O FBTZ BOE DPTU FGGFDUJWF XBZ UP EFMJWFS BO JPOPQIPSF t *NQSPWFE BWFSBHF EBJMZ HBJO t #FUUFS GFFE FGmDJFODZ t -PXFS DPTU PG HBJO Be sure to visit us at NCBA at booth #3095 and learn more about the big news UIBU DBO NBLF ZPVS DBUUMF o BOE ZPVS PQFSBUJPO o NPSF FGmDJFOU

Allied Industry Directory These are companies that have teamed with NCBA as allied industry members, demonstrating their commitment to the beef industry. Their involvement 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.

GOLD LEVEL SPONSORS

ALLIED INDUSTRY PARTNERS

(Minimum $100,000 Investment)

AgriLabs www.agrilabs.com Bayer www.bayer-ah.com Boehringer Ingelheim Vetmedica, Inc. www.bi-vetmedica.com Dow AgroSciences, LLC www.dowagro.com Intervet/Schering-Plough Animal Health www.intervetusa.com John Deere www.deere.com Merial www.merial.com Micro Beef Technologies www.microbeef.com Pfizer Animal Health www.pfizer.com Purina Mills, LLC www.cattlenutrition.com

ALLIED INDUSTRY COUNCIL Alpharma Barenbrug Cargill Animal Nutrition Central Life Sciences CME Group Elanco Animal Health Leo Burnett USA Novartis Animal Health U.S., Inc. Novus International Pioneer, A DuPont Business Y-Tex

ADM Alliance Nutrition, Inc. Agriculture Engineering Associates Alltech, Inc. American Live Stock Inc. AniPro Bank of America Merrill Lynch Beef Magazine Caterpillar Certified Angus Beef Certified Hereford Beef Croplan Genetics Destron Fearing Faegre & Benson, LLP Grow Safe Systems, Ltd Hartford Livestock Insurance IMI Global, Inc. Kent Feeds, Inc. Kunafin “The Insectary” Lallemand Animal Nutrition Lextron, Inc. Meat & Livestock Australia, Ltd. Midwest PMS, Inc. Miraco/Gallagher Moly Manufacturing New Holland Noble Foundation Nova Microbial Technologies

Nutrition Physiology Co., LLC Phibro Animal Health Plain Jan’s Priefert Manufacturing Company Quali Tech, Inc. Rabobank International Ridley Block Operations Ritchie Industries Inc. Roto-Mix SmartLic Supplement Feed In A Drum Stone Manufacturing Temple Tag Teva Animal Health The Vit-E-Men Co. Inc./Life Products Tru-Test U.S. Premium Beef, Ltd. US Bank Varied Industries Corp. Vigortone Ag Products Vitalix Walco International, Inc. Z Tags North America Zinpro Corporation

PRODUCT COUNCIL MEMBERS McDonald’s Corporation American Foods Group National Beef Packing Beef Products, Inc. Outback Steakhouse Cargill Meat Solutions Preferred Beef Group Darden Restaurants Sam Kane Beef Processors DuPont Qualicon JBS Gilroy Foods & Flavors Tyson Fresh Meats H.E.B United Food Group IEH Laboratories Wal-Mart Stores Kraft Foods/Oscar Mayer Wendy’s International Lobel’s of New York

Rocky Mounta Mountain Round U Up The FENCE MOWER’s unique design allows it to automatically maneuver around fence posts, saving hours of labor and eliminating the need for costly chemicals. Simply hook it up to a standard tractor PTO and let it do the work!

477168_Fence.indd 1

Winter 2011 National Cattlemen

5/3/10 10:59:41 AM

February 2-5, 2011 Denver, Colorado Color

Mixing Performance Mixing with rotation produces the best quality feed for Beef Operations. Our new staggered rotor has the best performance in the feed mixing industry. Mix wet or dry rations quicker with less maintenance. GeneRation II Staggered Rotor Mixers Advantages of the New Staggered Rotor t -FTT NBJOUFOBODFÂ&#x2030; elimination of springs and spring boxes t 'FXFS SFWPMVUJPOT GPS BO FWFO NJY t -FTT GVFM DPOTVNQUJPO t %FTJHOFE UP NJY XFU rations t *ODSFBTFE DBQBDJUZ JO some applications

Better Mix Less Time Saves Fuel

Watch our GeneRation II Rotor Video

www.rotomix.com Mixers

Commercial Series 540 to 920 cu. ft. Truck, Trailer or Stationary Oswalt D-Series 200 to 575 cu. ft. Truck, Trailer or Stationary

Forage Express 270 to 410 cu. ft. Truck, Trailer or Stationary

Waste Handling

Vertical Mixers

New!

Patent Pending

Cyclone Series Double Flighted Augers XJUI )%4 )ZESBVMJD %SJWF 4ZTUFN

Waste Disposal EďŹ&#x192;ciency Auto-Mix Verticals 1100 to 1500 cu. ft. Truck, Trailer or Stationary

"WBJMBCMF JO USVDL PS USBJMFS JO TJ[FT SBOHJOH GSPN UP DV GU DBQBDJUZ

Take time today, call for more information

Ask about our Compost Units!

R O T O ď&#x161;ş M I X - - $ t & 8 :"5 5 & " 3 1 t % 0 % ( & $ * 5 : , 4 ÂŽ

BENEFICIAL ENDOPHYTE TALL FESCUE

SAFE Safe for your grazing operation

B E N E F I C I A L E N D O P H Y T E TA L L F E S C U E

- Will not cause fescue toxicosis - Reduce your vet bills!

BarOptima PLUS E34 is the next generation of forage TM

tall fescue. This high energy, high yielding variety is bred with the revolutionary beneﬁcial endophyte E34

for superior pasture persistence. Unlike Kentucky 31, BarOptima PLUS E34 is safe, so you can avoid the costly effects of “fescue toxicosis.” Choose BarOptima PLUS E34, the safe, sustainable and proﬁtable alternative to Kentucky 31.

SUSTAINABLE

Three times more persistent than endophyte-free tall fescue - Pasture stand life as good as Kentucky 31 - Excellent heat and drought tolerance

PROFITABLE Increase gains by as much as 45% - More profitable use of pastures - Increase grazing time