NCBQ0211 by Catharine Snell

SPRING 2011

Cattlemen’s College® ■ 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.

SPRING

NATIONAL CATTLEMEN • The Journal for America’s Cattle Producers

Volume 27 • Issue 2

8 10

14 CAPITOL CONCERNS The 112th Congress has hit the ground running. New faces in Washington, D.C., have brought increased scrutiny and Congress is holding the current administration accountable by holding a series of oversight hearings. Learn why NCBA’s Washington, D.C., staff is optimistic about the direction of the new Congress.

6 LEADERSHIP & SOLUTIONS During the 2011 Cattle Industry Convention and NCBA Trade Show, the Beef Industry Long-Range Plan Task Force unveiled the newest roadmap to provide the industry with focused direction over the next three years. Task force co-chair Charles Miller shares some thoughts on the evolution of the current plan and its importance to the industry.

8 AROUND NCBA Blizzards and subzero temperatures couldn’t keep thousands of cattlemen and women away from Denver during the 2011 Cattle Industry Convention and NCBA Trade Show. Read about highlights from this year’s event and learn why Denver was the place to be the fi rst week of February.

DEPARTMENTS

Every year, Cattle Industry Convention and NCBA Trade Show attendees have the unique opportunity to participate in Cattlemen’s College.® It’s a chance to hear from industry experts who offer short courses in a diverse array of topics. For participants, it’s an opportunity to learn more about management strategies and topics that impact cattle operations throughout the country.

FEATURES

10 CATTLEMEN ATTEND COLLEGE

12 CATTLEFAX Get perspective from the experts at CattleFax about how market fundamentals, including smaller beef supplies and stronger beef demand, are expected to lead to record high prices for all classes of cattle in 2011 with continued increases in 2012.

18 ALLIED INDUSTRY AND PRODUCT COUNCIL DIRECTORY

ABOUT THE COVER Couser Cattle Company, owned by Bill and Nancy Couser of Nevada, Iowa, was the national winner of the National Cattlemen’s Foundation Environmental Stewardship Award.

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. 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.

Spring 2011 National Cattlemen

Finally, fly tags wired to hold more insecticide, without the wire.

Introducing new Corathon™ and CyGuard™ from Bayer, the only insecticide cattle ear tags available with new FyberTek,™ the fiber-filled technology that holds more active ingredient in a single tag. Slate-colored Corathon is 50% organophosphate, 25% more active ingredient than the Co-Ral Plus® Insecticide Cattle Ear Tag.

Clay-colored CyGuard holds 87% more pyrethroid insecticide than the CyLence Ultra® Insecticide Cattle Ear Tag. As your rotation team, new Corathon and CyGuard tags effectively control horn and face flies, season after season. Ask your animal health supplier about the two new Bayer tags with FyberTek or visit flycontrolcenter.com.

© 2009 Bayer HealthCare LLC, Animal Health Division, Shawnee Mission, Kansas 66201. Bayer (reg’d), the Bayer Cross (reg’d), Corathon,™ CyGuard,™ FyberTek,™ Co-Ral Plus® and CyLence Ultra® are trademarks of Bayer. I09924n

LEADERSHIP & SOLUTIONS

AROUND NCBA

Beef Industry Long-Range NATIONAL CATTLEMEN Plan Approved during Convention The Journal for America’s Cattle Producers

SPRING 2011 VOLUME 27, ISSUE 2

f you want to get address; but we need to somewhere, you should have some directional focus. have a roadmap and That’s what this plan does.” the beef industry is no The current plan will exception. Since 1994, the provide the beef industry beef industry has developed with focused direction long-range plans to provide through 2013, which is a such a roadmap aimed at shorter span of time than Charles Miller, previous beef industry longidentifying specific goals and co-chair of the range plans addressed. initiatives to improve the Long-Range Plan business climate for producers. “There was a decision to Task Force and a make this a 3-year plan versus So, where will this long range cattleman from five years as has been done in plan take us? Its vision is Nicholasville, Ky. the past,” said Miller. “We “An industry united around a common goal of being the are experiencing so much world’s most trusted and preferred volatility that a shorter plan seemed source of beef and beef products.” more appropriate. We also made the In October 2010, 23 industry decision to have a review that’s going leaders convened to begin developing to take place annually. If there are the latest edition of the Beef Industry things in the plan that need to be Long-Range Plan. That work tweaked, we have the opportunity culminated with the approval of a to go into the plan and address those long-range plan by the NCBA Board issues.” of Directors. The checkoff portions The Beef Industry Long-Range were endorsed by the Cattlemen’s Beef Plan (2011-2013) consists of a Board during the 2011 Cattle Industry vision, mission statement, strategic Convention in February. intent statement, six core strategies Participants in the current task force and goals, a number of supporting gathered information from various strategic initiatives and two critical sources; examined and prioritized success factors. A one-page summary the industry’s most urgent needs; and of the plan can be accessed at began to put together a vision, mission www.beefusa.org. statement and tactics to answer those “The next step is to take this plan needs. Charles Miller, co-chair of the out into the country,” said Miller. “We Long-Range Plan Task Force and a challenge our industry stakeholders, cattleman from Nicholasville, Ky., including our trade associations and said there is a sincere and committed individual producers, to use this effort to do everything possible to plan as they grow and develop their take the beef industry forward in a own goals and initiatives within positive manner. the beef industry. If we accomplish “There is such a tremendous amount the goals that have been outlined of challenge and change in our society in the plan, such as increasing the and in our economy, and that dictates value of beef exports and improving what is taking place in our industry,” consumer preferences for beef, then said Miller. “We’ve got a lot of things we are on the right path and the entire to do; we’ve got a lot of things to industry wins.”

Spring 2011 National Cattlemen

2011 Officers President President Elect Vice President Federation Division Chairman Policy Division Chairman Chief Executive Officer Publishing Team

Bill Donald J.D. Alexander Scott George

David Dick Bob McCan Forrest Roberts Mike Deering Holly Foster Kendal Frazier Mary Geiger Tod Kalous 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 David Evans, Jacob Fisher, Nicholas Manis, John O’Neil, Paul Woods Marketing Kent Agramonte Layout Catharine Snell Advertising Art Elaine Connell ©2011 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.

Optimize profit potential by optimizing overall herd health and breed-back rates. RangeLand® loose and tub minerals from LAND O LAKES encourage intake consistency without overeating. Plus, it stands up to rain and wind, so it‘s as durable as it is smart. See your LAND O LAKES dealer, call 1-888-669-6055 ext. 6230, or visit landolakesfeed.com. RANGELAND.® Consider it done.®

YOUR NCBA

AROUND NCBA

Cattle Industry Convention and NCBA Trade Show Attracts Thousands to the Mile High City

espite blizzards and subzero temperatures, more than 5,600 cattlemen and women made it to Denver the first week of February for the 2011 Cattle Industry Convention and NCBA Trade Show. The first order of business for convention attendees was to participate in policy meetings to develop a course of action for NCBA officers and staff during the coming year. But other highlights of the convention included the NCBA Trade Show with more than 260 companies exhibiting. Attendees also had a chance to take advantage of the Cattlemen’s College® educational forum and hear from general session keynote speaker Karl Rove, former senior advisor and deputy chief of staff to President George W. Bush. During his address, Rove challenged NCBA members to “get involved and stay involved” and to contribute to the NCBA Political Action Committee (PAC) to help elect members of Congress who support the beef cattle industry. Rove was not the only keynote speaker at the Cattle Industry Convention. Richard Picciotto, the highest ranking New York City Firefighter to survive the September 11, 2001, terrorist attacks addressed convention attendees during the Opening General Session. Picciotto told his account of that indelible day, shaking and inspiring audience members to the core. During the NCBA membership meeting held Feb. 5, 2011, NCBA members approved 2011 policy resolutions developed during policy committee meetings held the preceding day. Several policy resolutions were approved including policy on immigration; food safety; marketing; cattle health; and federal lands. Steve Foglesong, immediate past president of NCBA, presided over the meeting before handing over the reins to President-elect Bill Donald, said the policies established during

Spring 2011 National Cattlemen

convention are and Scott George, Cody, driven by grassroots Wyo., is the new NCBA cattlemen vice president. David and women. Dick, Sedalia, Mo., “Our members was elected chairman of chart the course for the NCBA Federation our organization Division, and Craig Uden, and for the entire Cozad, Neb., is the new beef industry. This federation vice chairman. organization is The new NCBA Policy producer-owned Division chairman is Bob and member McCan of Victoria, Texas, driven,” said and Don Pemberton of Foglesong. “As Hopkinsville, Ky., is the it has been since new policy vice chairman. 1898, our members During the annual NCBA President Bill Donald decide our policy board meeting, NCBA positions that members approved a beef are all geared toward sustaining this industry statement of principles. industry for future generations.” The statement was developed as “The committee meetings and a part of a checkoff funded issues membership meeting are the bread and management project and includes the butter of our organization. This is truly following principles: preserving the where the magic happens so-to-speak,” environment; protecting our livestock; said Colin Woodall, NCBA vice providing quality food for consumers; president of government affairs. “Our enhancing food safety; investing members take the time away from in our communities; embracing their operations and their families to innovation; and creating a sustainable travel here and debate important issues future. affecting the U.S. beef cattle industry. “We’ve had a tremendous They then put it on paper. When we convention this year, and I’m are fighting for U.S. cattlemen and excited for what’s to come for women in Washington, D.C., we use this organization,” Donald said. these policy positions as our roadmap.” “The challenges — from dealing Bill Donald, third generation with weather extremes like we’ve Melville, Mont., rancher, was experienced this week to educating officially elected to succeed Steve elected officials and consumers about Foglesong as NCBA president our industry — aren’t going away. But during the association’s board of like the challenges we’ve faced in our directors meeting. past, we will put our differences aside; “It is a great honor to be elected to we will succeed; and we will move our lead NCBA for the next year. There industry forward.” is tremendous opportunity out there for U.S. cattlemen and women, and we plan to make every opportunity a reality,” Donald said. “We’re a diverse outfit. NCBA represents the entire industry — from packers to cow-calf producers and everyone in between — but to be profitable it takes all of us working on the same issues.” J.D. Alexander, Pilger, Neb., was elected as NCBA president-elect,

AROUND NCBA Iowa Cattle Operation Wins NCBA Environmental Stewardship Award Couser Cattle Company, owned by Bill and Nancy Couser of Nevada, Iowa, was the national winner of the National Cattlemen’s Foundation Environmental Stewardship Award. Th rough the years, Bill Couser has actively partnered with environmental agencies and universities to use his farm for a number of sustainability research and pilot projects. During the 2010 NCBA Summer Conference, seven cattle operations were recognized for going above and beyond the call of duty when it comes to environmental stewardship. The top award winner from the seven finalists was announced during the recent Cattle Industry Convention and NCBA Trade Show. “Farmers and ranchers are the very best stewards of the land, but through the partnerships Bill and his family have established, they have set a standard more of us should all strive to achieve. Bill and his family are a perfect example of how important it is to step outside of a comfort zone to make a positive difference in this industry,” said Forrest Roberts, NCBA chief executive officer. Couser Cattle Company is a second and third generation multi-faceted operation that annually feeds and finishes 5,000 to 6,000 head of cattle and farms 5,000 acres, producing both corn seed and soybean seed. The business philosophy centers on working to ensure that both profit opportunities and environmental performance are present in cattle and farming operations. NCBA’s Environmental Stewardship Award Program (ESAP), now in its 20th year, was created to recognize beef producers who make environmental stewardship a priority on their farms and ranches while they also improve production and profitability.

The ESAP award is sponsored by Dow AgroSciences; the U.S. Department of Agriculture’s Natural Resources Conservation Service; NCBA; and the National Cattlemen’s Foundation.

Leadership and Scholastic Achievement Recognized during 2011 Cattle Industry Convention Some of the brightest new stars in the beef industry were recognized during the Best of Beef awards ceremony held during the 2011 Cattle Industry Convention and NCBA Trade Show. Dr. J.J. Goicochea, a veterinarian and cattle producer from Eureka, Nev., and president-elect of the Nevada Cattlemen’s Association was honored as the recipient of the Max Deets Leadership Award during the 2011 Cattle Industry Convention and NCBA Trade Show. This scholarship program was developed in honor of Max Deets who served as the president of NCBA in 1997. Established with contributions from the Kansas Livestock Association and NCBA, the award recipient is the Young Cattlemen’s Conference (YCC) chairman, who is selected by his or her peers on the basis of outstanding leadership. Goicochea was a member of the 2010 Young Cattlemen’s Conference and will serve as the chairman for the 2011 event. Ten outstanding students pursuing careers in the beef industry were also honored during the Best of Beef awards ceremony at the Cattle Industry Convention as recipients of the Chicago Mercantile Exchange Group Beef Industry Scholarships. The scholarship program was introduced in 1989 to celebrate the 25th anniversary of the Live Cattle Futures Contract on the Chicago Mercantile Exchange. Applicants submitted an essay describing an issue confronting the beef industry and their proposed solution. The

purpose of the program, which is coordinated by the National Cattlemen’s Foundation, is to identify and encourage talented and thoughtful students who will emerge as industry leaders. Megan Blythe, a student at Kansas State University, was the top winner and in addition to the scholarship, received a paid trip to the Cattle Industry Convention. Other scholarship recipients were: Elizabeth Oliver, Michigan State University; Allison Blythe, Kansas State University; Ira Parsons, Allen County Community College/ Kansas State University; Kassie Curran, Kansas State University; Ellen Hoffschneider, University of Nebraska-Lincoln; Daniel McFarland, Caddo Parish Magnet High School; Kurtis Clawson, Kansas State University; Kate Daley, California State University, Chico; JanLee Rowlett; Oklahoma State University.

PLC, NCBA Support Renewed Efforts to Delist the Gray Wolf The Public Lands Council (PLC), the NCBA, the American Sheep Industry Association (ASI) and 32 other livestock organizations from across the nation sent letters to U.S. Senator Orrin Hatch (R-Utah) and U.S. Representative Denny Rehberg (R-Mont.) in support of legislation they introduced in February to remove the gray wolf from the endangered species list under the Endangered Species Act (ESA). H.R. 509, introduced by Representative Rehberg, has bipartisan support from 15 cosponsors, while Senator Hatch’s (R-Utah) similar legislation, S. 249, has eight cosponsors. The bipartisan effort calls for a new management regime for the gray wolf that will empower state and local officials to create and implement recovery plans on a state-by-state basis, thereby bringing relief to livestock producers experiencing depredation.

www.NationalCattlemen.com

YOUR BUSINESS

Cattlemen Attend College By Holly Foster

ore than 750 cattlemen and women took advantage of the educational opportunities provided at the 18th annual Cattlemen’s College® held during the 2011 Cattle Industry Convention and NCBA Trade Show. The event, which is sponsored by Pfizer Animal Health, featured speakers and sessions that encompassed a variety of topics that are important to farm and ranch owners and managers. “We strive to ensure that when cattle producers travel from across the country to attend this event, they get an opportunity to hear from experts about issues impacting all aspects of their beef businesses,” said Tom Field, Ph.D., NCBA executive director of producer education. “The people who are in the business of raising beef have to be experts on so many topics, from finance and risk management, to land use and environmental policy, to understanding how consumer trends may impact their operations. Cattlemen’s College® gives attendees an opportunity to hear from experts in an interactive format about all of these topics.” This year’s event included 18 forums with tracks covering six general management topics — cattle genetics and breeding; cattle reproductive technologies; production management; business management; beef quality and consumer trends; and environmental issues. The program concluded with panel discussions that gave attendees a chance to interact with the speakers while they enjoyed a lunch that was sponsored by Certified Angus Beef. All of the sessions were well attended, but interest was high when it came to the use of some of the latest genetics tools. The genetics track kicked off with a session focused on the fundamentals of genetics and

Spring 2011 National Cattlemen

some of the latest advances in DNA technology. Attendees had a chance to hear about developments in cattle genetic evaluations and how some of the new genomics tools can play a role in the industry in the future. “There are several genetic traits in cattle that are considered ‘complex,’ but are important to profitability,” said Matt Spangler, a researcher with the University of Nebraska, Lincoln. “For the most part, genomic information for complex traits, or those that are controlled by many genes, such as reproduction and carcass traits, is only available to producers in a disjointed context. DNA information is not seamlessly integrated into EPD estimates and is currently published separately from EPD information.” The ability to combine some of the new genomic tests with EPDs, however, has several advantages according to Spangler. First, it increases the accuracy of genetic predictors for young animals, which is especially helpful for traits such as stayability, that are measured later in an animal’s life. Second, there is the potential to reduce generation intervals thus allowing for faster genetic change. Third, it allows for the generation of EPDs for novel traits such as efficiency and disease susceptibility, where the ability to collect actual data for traditional EPDs is difficult, if not impossible. “DNA test results add very little new information on a progenyproven sire, but there is value in the information that these tests can offer about young animals,” said Bob Weaber, an assistant professor at the University of Missouri and another presenter during the Cattlemen’s College® sessions. “For a breed like Angus, where genomic results for carcass traits are included in EPD calculations and provide similar

More than 750 cattlemen and women took advantage of the educational opportunities provided at the 18th annual Cattlemen’s College.® accuracy improvements, it may make sense for some seedstock breeders to shift their evaluation investment from ultrasound scanning to genetic profi ling. A specific instance where genomic testing offers advantages is in the case of embryo transfer calves or animals in single animal or small contemporary groups. Breeders should continue to collect ultrasound data in breeds that include this information in genetic evaluation systems but do not incorporate genomic information.” Spangler cautioned producers there are still limitations to marker assisted selection, especially for non-Angus breeders. “Current marker test panels are likely to work best in the populations where discovery occurred, but decrease in predictive power as

YOUR BUSINESS the target population becomes more genetically distant from the discovery population,” said Spangler. “In other words, if a test was developed in Angus populations the test will not be as accurate for other breeds, and that accuracy grows even lower in Bos indicus cattle.” “Most of the major beef breeds have a lot of discovery and validation work in progress, so the opportunity to take advantage of this technology should continue to grow,” added Weaber. “The eventual goal is to see more consolidation in the information that is made available into one of two basic forms, EPDS and economic index values,” said Spangler. “We’re not quite there, and the intermediate steps we’ve experienced to commercialize the technology, may have created some confusion about the best way to utilize this information.” The potential for these technologies is huge, however. The new information genetic profi ling may offer, and the improved accuracy of genomically enabled EPD, can be very beneficial in bull selection by commercial producers. “Having the genetic profi le of a young yearling bull used in computation of his EPD increases the accuracy of those genetic predictors and reduces your risk as a buyer,” said Weaber. “You may have the opportunity to get much more accurate information about traits that are important to your profitability such as calving ease. You also have the ability to potentially capture more profit by having more confidence in predictors for traits such as carcass merit and feed efficiency.” For those who were unable to attend the Cattlemen’s College® sessions, summaries of the presentations are posted at the Cattle Industry Learning Center at www.cattlelearningcenter.org.

Cattlemen’s College® speakers share their experiences using genetic proﬁling in cattle evaluations.

Environmental Regulation Creates Perfect Storm for Cattle Operations There was something for everyone during the Cattlemen’s College® program held at the 2011 Cattle Industry Convention and NCBA Trade Show. One highly attended session featured an update from Tamara Thies, NCBA’s chief environmental counsel. “The regulatory climate in Washington, D.C., is intense when it comes to environmental issues,” said Th ies. “Agriculture has become a target for onerous environmental regulation, more so than ever. Our

Tamara Thies, lead environmental counsel for NCBA, updates Cattlemen’s College® attendees about the latest environmental regulations coming down the pike.

industry has had constant battles with the current administration. There is an ever-increasing number of issues that are amounting to what I call a ‘perfect storm’ for cattle producers.” Thies discussed more than 15 policy and agency initiatives that could dramatically change the regulatory environment for cattle producers throughout the country. Citing the Environmental Protection Agency’s (EPA) interpretation of greenhouse gas regulation under the Clean Air Act as just one example of how far reaching some of the regulation can be, said Thies, “NCBA does not believe that Congress intended EPA to regulate green house gases under the Clean Air Act, and is supporting the House majority and Senate Republicans vow to stop EPA from acting outside of its role as an agency. Until Congress acts, EPA should not,” she added. Thies also discussed dust and ammonia regulation, as well as several initiatives focused on water quality and the Clean Water Act. The session was a chance for hundreds of cattle producers to get up-todate information on environmental regulation and its potential impact on their businesses. Visit Cattle Industry Learning Center at www.cattlelearningcenter.org to obtain a copy of Thies’ presentation. Holly Foster is a fourth-generation cattle producer and freelance writer based in California.

www.NationalCattlemen.com

CATTLEFAX

YOUR MARKET UPDATE

Small Supplies and Record Prices By Tod Kalous

he total U.S. cattle inventory decreased 1.3 million head in 2010 and totaled 92.6 million head on Jan. 1, 2011, which puts the total inventory back to levels not seen since the early 1950s. The total cattle inventory is expected to decline another 1 to 1.5 percent during 2011. The beef cow herd decreased by 500,000 head on Jan. 1 and totaled 30.9 million head. Beef cow slaughter increased by 310,000 head in 2010 versus 2009, and was the largest since 1996. This was driven by continued lack of producer profitability, drought, and probably the most important variable has been the increased consumer demand for lean ground beef driving cull cow prices to record high levels. In addition, a declining Australian cowherd, rising global demand for beef and a lower U.S. dollar limited the amount of beef imported into the United States in 2010. Beef cow slaughter has decreased by about 8 percent so far in 2011, and is forecast to be down 10 percent for the year as record high prices for calves will encourage some producers to hold their herds together. That said, continued strong cull cow prices will entice producers to sell cows and the beef cow herd will likely still be smaller on Jan. 1, 2012. The dairy cow herd increased 64,000 head in 2010 and totaled 9.15 million on Jan. 1. Although feed costs remain a wildcard in the dairy business as corn prices have skyrocketed, higher milk futures prices should encourage producers to at least maintain their herd size. Beef replacement heifers were down nearly 300,000 head totaling 5.2 million head and dairy replacement heifers were up 31,000 head totaling 4.6 million head. The percent of heifers placed on feed in 2010 was up, which also suggests fewer replacements were retained for the cowherd. However, since the

Spring 2011 National Cattlemen

first of the year the percentage of heifer placements has dropped back to the lowest level since 2006 in CattleFax data. And while it is too early to say this is a trend indicating producers are expanding, continuing to see reduced heifer placements over the next several months would indicate producers are at least beginning to think about holding back a few more heifers. The 2010 calf crop was estimated to be down 250,000 head and total 35.4 million and the 2011 calf crop is expected to be down another 400,000 head. The smaller 2010 calf crop and increased number of cattle placed on feed in 2010 has resulted in a significantly smaller feeder and calf supply outside of feedlots. On Jan. 1, 2011 the feeder and calf supply outside of feedlots was down 900,000 head and totaled 26.7 million head. As a result of the smaller supply, placements into feedyards are expected to slow over the next several months and lead to smaller fed slaughter levels in the second half of the year.

Bottom Line • The smaller beef supplies and stronger beef demand are expected to lead to record high prices for all classes of cattle in 2011 with continued increases in 2012. • Fed cattle prices are expected to average between $103 and $107/cwt for the year. Cattle feeding margins are expected to be tighter in 2011

due to the high feed costs and high feeder cattle prices leading to record high breakevens. • A 750-lb steer is forecast to average between $118 and $124/cwt, and a 550-lb steer calf is expected to average $138-146 in 2011. Continued excess bunk capacity chasing a declining supply will be supportive to feeder cattle prices. Calf demand will be strong this spring, particularly if grazing conditions are optimal. And while input costs for cow-calf producers are forecast to increase, this segment is expected to be profitable in 2011. • Slaughter cow values are forecast to average near $65/cwt compared to $58/cwt in 2010. Beef imports will remain limited in 2011 and consumer demand strong for lower priced beef lending support to the higher prices. • Bred female values are forecast to average from $150 to $200 per head higher in 2011, near $1,200 per head. With calf prices surpassing alltime highs and expected profitability in the cow-calf sector over the next several years, producers are likely to start to envision the economic incentive for mild expansion. Tod Kalous is a market analyst with CattleFax, a member-owned market information organization serving producers in all segments of the cattle business.

YOUR CAPITOL CONCERNS

NCBA Welcomes 112th Congress’ Commitment to Oversight By Mary Geiger

Oﬃcial White House Photo by Pete Souza

he November 2010 midterm election left NCBA optimistic for the 112th Congress. NCBA Vice President of Government Affairs Colin Woodall said the challenges from the last Congress coupled with ongoing challenges from the administration’s overreaching regulatory agenda, left U.S. cattlemen and women on the defense for the past two years. “Folks around the country sent a message loud and clear to Washington, D.C., last November that said ‘enough is enough,’” said Woodall. “With a shift in power in the House and with a more balanced Senate, we look forward to working with the new Congress to put the brakes on the onslaught of burdensome regulations coming from this administration.”

President Barack Obama shakes hands with Speaker of the House John Boehner before delivering the State of the Union address. Woodall noted that the revived commitment to regulatory oversight doesn’t stop on Capitol Hill. He said President Obama, on Jan. 18, 2011, signed an executive order titled “Improving Regulation and Regulatory Review” calling for “a governmentwide review” of federal regulations and “to remove outdated regulations that stifle job creation and make our economy less competitive.” According to Woodall, it is unclear what results the president’s regulatory

Spring 2011 National Cattlemen

review will produce. However, he said members of Congress aren’t waiting around to find out. “In the first three months of this year, members of Congress have begun holding hearings to ask the administration officials what they are thinking with regulatory proposals like the U.S. Department of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration’s (GIPSA) proposed livestock marketing rule and the Environmental Protection Agency’s (EPA) ongoing efforts to regulate dust,” said Woodall. “They are asking about the impact these proposals will have on farmers and ranchers, economic growth and job creation across the country.”

Environmental Protection Agency “Farmers and ranchers are the best stewards of the land. They have improved their practices to produce more food on fewer acres while using fewer resources,” saidTamara Thies, NCBA chief environmental counsel. “Unfortunately, the environmental extremists turned government bureaucrats at the EPA have put their agendas ahead of science as they plow ahead with costly and inappropriate policy proposals. From trying to usurp congressional authority to regulate greenhouse gas emissions, to attempting to regulate dust at unprecedented levels, the EPA must be stopped, and we are working with Congress to do that.” NCBA President Bill Donald said EPA Administrator Lisa Jackson has appeared multiple times before congressional committees to explain regulatory proposals coming from her agency. “This EPA does not seem to have any understanding of production agriculture and what it takes to feed a growing global population,” said Donald. “If

it takes calling the administrator to Capitol Hill every week in order to educate her about the negative affects the policies coming from EPA would have on production agriculture, food security and economic growth, then so be it.”

GIPSA USDA Secretary Tom Vilsack is no stranger to Capitol Hill either. Woodall said Secretary Vilsack has been questioned about GIPSA’s proposed rule on livestock marketing during multiple congressional hearings this year. “Secretary Vilsack appears to be sticking to his word to carefully review the more than 60,000 comments submitted on the proposed GIPSA rule and to conduct an economic analysis of the proposed rule,” said Woodall. “The proposed GIPSA rule would take our industry back in time 50 years, costing cattlemen and women millions of dollars. Innovation will be crippled and big government will disrupt the marketplace in a way never seen before in this industry. This administration has taken over our nation’s health care system, our financial industry and our student loan industry. We’re not going to stand by and let it take control of cattle markets and dictate how cattlemen and women market their livestock.”

Trade Finalizing pending trade agreements is a priority for NCBA, and according to Kent Bacus, NCBA manager of legislative affairs, it appears to be a priority in Congress as multiple congressional committees have called upon administration officials to explain the administration’s trade agenda. NCBA commends the administration for finalizing the U.S.-

You donâ&#x20AC;&#x2122;t need to reinvent the wheel to get sustainable beef. 'PS 3BMHSPÂŽ TVTUBJOBCJMJUZ JT NPSF UIBO B CV[[XPSE *U T B UISFF QBSU BQQSPBDI IFMQJOH UPEBZ T CFFG QSPEVDFST NFFU HSPXJOH EFNBOE

Economic Viability A single $30 wheel of Ralgro implants provides up to 552* additional pounds of beefâ&#x20AC;&#x201D; thatâ&#x20AC;&#x2122;s like marketing an extra calf.

Environmental Responsibility Ralgro maximizes your use of resources. So you can boost production without additional feed, land or time.

Social Accountability Ralgro helps you offer todayâ&#x20AC;&#x2122;s consumers a larger range of beef options, because youâ&#x20AC;&#x2122;re producing more â&#x20AC;&#x201D;with less.

#FGPSF ZPV TFUUMF GPS B OPO JNQMBOU iQSFNJVN w TFF IPX 3BMHSP DBO TVTUBJOBCMZ JODSFBTF ZPVS XFBOJOH XFJHIUT CZ MCT * $POUBDU ZPVS WFUFSJOBSJBO PS BOJNBM IFBMUI TVQQMJFS UPEBZ

(ze ranol ) .PSSJT "WFOVF t 4VNNJU /+ t JOUFSWFUVTB DPN t t #7 3" Ralgro is the property of Intervet International B.V. or affiliated companies or licensors and is protected by copyrights, trademark and other intellectual property laws. ÂŠ2011 Intervet International B.V. All rights reserved. *Data on file.

A withdrawal period has not been established for Ralgro in pre-ruminating calves. Do not use in calves to be processed for veal. For complete information, refer to product label.

YOUR CAPITOL CONCERNS South Korea Free Trade Agreement (KORUS FTA) and for committing to send it to Capitol Hill in the very near future. NCBA supports immediate passage of the KORUS FTA because it will eliminate the 40 percent tariff currently imposed on U.S. beef. In addition to the KORUS FTA, members of Congress have also pressed the administration to move forward with pending agreements with Panama and Colombia and to resolve

the trade dispute regarding Mexican trucks on U.S. highways. “The administration is saying the right things right now,” said Bacus. “But it’s time for their actions to reflect their words. These agreements mean increased profits for U.S. cattlemen and women; increased U.S. economic activity; and U.S. job creation. Congress needs to continue holding the administration accountable to its pledge to double exports by 2014.”

Get Results, Get Ragland.

Ragl Ra glan gl and an d Ma Magn gnes gn esiu es ium iu m Supp Su p le pp leme ment me nt M Min in ner eral als al s Lush Lu sh sspr p in pr i g pa past stur tur ures es don n’t aalw lway lw ayss ay prov pr ovid ov ide th he ma magn gn nes esiu ium iu m ca catt ttle tt le rreq equi eq uire re.. Fort Fo rtun rt unat atel ely, y oour y, ur ppal alat attab able l m le mag aggne nesi sium si um su upp pple leme ment ntss ke keep ep yyou ourr he ou herd rd heaalt lthy h, hy grow gr ow wing in ng an andd weell nouuri rish shed ed. Ragl Ra glan gl and an d Fl Fly y Co C nttro roll Prrod oduc uc cts t Prot Pr otec ot ectt yo ec your ur h her erdd fr er f om costl osstl t y an a d aggr ag grrav avat atin at ingg fly iinf in nfes nf esta es taati tion onss wiith on conv co nven nv enie en ient ie n , ec nt econ onom on o ic om ical al Rag agla land la nd M ll Mi l s pr p od oduc ucts uc ts:: • IG GR Fl F y Cu C rbb witithh Al Alto tosi to sidd si • Kn Knoc o ko oc kout u Fly C ut Cur u b wi ur with th A Altltltos osid os id andd CT an C C • Ra Ragl g an gl andd Ra Rabo bonn Bl bo Bloc ocks oc ks • Su Summ mm mer er Hea ealtltlthh Mi Mine nera rall ra with wi thh Rab abon on aand nd C CTC TC Call Ca ll 11-88 88888 8-54 854954 9-80 98014 80 14 to fifind nd a ddea eale ea lerr ne le near ar yyoou, u, and n ssto toop by ragl ra glan gl an ndm dmil ills il ls.c ls .ccom ffor or a fulll fu ll lis istt of oour ur ppro rodu ro duct du cts. ct s.

514572_Ragland.indd 1

Spring 2011 National Cattlemen

Federal Lands Dustin Van Liew, NCBA director of federal lands, said the Department of the Interior’s Secretarial Order 3310 (the Order), which directs the Bureau of Land Management (BLM) to rereview its land inventories to identify lands with wilderness characteristics, has caught the attention of lawmakers and ranchers across the West. “During a Natural Resources Committee hearing on the Order, Chairman Doc Hastings (R-Wash.) questioned BLM Director Bob Abbey about the administration’s authority to prioritize “wild lands” above other multiple-use activities on BLM lands,” said Van Liew. “He couldn’t. He was unaware if the statutory authority exists to elevate “wild lands” above other uses.”

The Power of the Purse Kristina Butts, NCBA executive director of legislative affairs, said oversight hearings aren’t the only tool Congress has to stop problematic regulations from moving forward. “The ‘power of the purse’ in Washington, D.C., lies in the hands of Congress,” said Butts. “The administration can propose a rule, but it’s up to Congress to give them implementation funding. With our nations’ debt topping $14 trillion, this Congress, especially the House, doesn’t have an appetite to spend money on regulations that will stifle economic growth or kill jobs.” According to Butts, the House of Representatives, in a continuing resolution (CR) to fund the federal government through Sept. 30, 2011, voted to block funding for many regulatory proposals that would negatively affect farmers and ranchers. Specifically, House-passed CR would block funding to the EPA to regulate dust; to implement its Total Maximum Daily Load rule for the Chesapeake Bay and its numeric nutrient criteria rule for Florida; and to move forward with its partial waiver for E15 ethanol. Additionally, it includes a funding block on the Order continued on page 18 2/11/11 12:22 PM

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 (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

ALLIED INDUSTRY PARTNERS 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 American Foods Group Beef Products, Inc. Cargill Meat Solutions Darden Restaurants DuPont Qualicon Gilroy Foods & Flavors H.E.B IEH Laboratories Kraft Foods/Oscar Mayer Lobel’s of New York

McDonald’s Corporation National Beef Packing Outback Steakhouse Preferred Beef Group Sam Kane Beef Processors JBS Tyson Fresh Meats United Food Group Wal-Mart Stores Wendy’s International

BIG BALE FEEDER

Get all the 2011 Post Convention Coverage

by Robbco Designs

CALL 800-743-5924

View our videos at www.robbinsfarmeq.com

516472_Robbins.indd 1

Spring 2011 National Cattlemen

www.BeefUSA.org

2/15/11 10:52 AM

continued from page 16 regarding wild lands designations as well as a block on payments under the Equal Access to Justice Act. The fate of the CR remains uncertain. In order to avoid a shutdown of the federal government, Congress passed a short-term CR to fund the government while congressional leaders work to resolve these issues and move forward with a budget plan.

Political Action Committee Woodall said educating elected officials about the U.S. beef industry is just part of the process and said the NCBA Political Action Committee (PAC) is a valuable resource to help elect individuals to the U.S. House and U.S. Senate who understand and support cattlemen and women. Woodall noted that the NCBA PAC established a goal to raise $1 million each election cycle to elect those candidates who have values and interests that are shared by the cattle industry. “Like it or not, running successful campaigns costs money,” said Woodall “We’ve got to work to elect people who understand or want to understand the importance of the beef cattle industry. At the same time, we must defeat those who would want to damage the industry. If you’re looking for change, the best way to get it is to change the personalities. We’ve got to be willing to help elect those who will fight for our industry.” Woodall continued, “We’ve had more successes in Washington this year because this election cycle brought new, friendly faces to Congress. They go to bat for cattle producers each day they’re in Washington. It’s important we show our support to them and contributing to the NCBA PAC is one way to do that.” Mary Geiger is associate director of communications for NCBA and is based in the Washington, D.C., office.

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