April 2021 - National Cattlemen

N A T I O N A L CATTLEMEN

To be the trusted leader and definitive voice of the U.S. cattle and beef industry.

APR 2021 • Vol. 37, No. 7 • NCBA.org

MARKET SNAPSHOT

WEEK OF 3/22/2021 (prices vs. a year go) SOUTH CENTRAL 500-600 LB. STEERS $163.90

$146.26

12.1%

LIVE FED STEERS $109.89

4.0%

$114.25

CHOICE BOXED BEEF $243.03

6.3%

$227.75

OMAHA CASH CORN 63.1%

$5.31

$3.26

IN THIS ISSUE 3

LEADERSHIP COMMENTS

NCBA continues to work on transportation issues along with sharing beef production’s sustainability story with science and facts.

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POLICY

Transportation touches on a variety of issues important to farmers and ranchers, from cost to animal welfare.

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MARKET MATTERS

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FEDERATION

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CHECKOFF

Prime and Choice grading occurring at higher percentage; what higher corn, larger exports, tighter supplies mean for producers.

State programs highlight beef bringing communities together.

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Trending topics in food and beef; Beef Industry Safety Summit provides excellent value for participants.

A Tax on the Next Generation - Why It’s a Problem and The Need to Engage Preparing to transition the farm or ranch to the next generation is a complicated process. Considerations for keeping the operation viable in the immediate term must be taken into account along with a look into the future as burdensome taxes threaten the farm or ranch a family already owns before it’s passed on. This is a challenging scenario for cattle producers and NCBA is committed to fighting for the needs of family-owned businesses across the country with lawmakers in Washington, D.C. Missy Bonds of Bonds Ranch, a commercial cow-calf, stocker and feeder cattle operation headquartered in Saginaw, Texas, knows all too well the challenges tax laws present to farms and ranches. From a young age, Bonds knew that she wanted to take over the ranch.

“When I was about eight years old, we were all standing in the kitchen and I looked at my dad and said, ‘I want to be a rancher just like you daddy’,” Bonds reflected.

However, since Missy has taken an active role in the business decisions of the operation, she has experienced firsthand the headache that comes with navigating the extensive list of tax issues that affect her family’s operation daily. One of those tax issues is the Death Tax, also referred to as the estate tax.

The federal estate tax is a tax that applies to property transferred at death when the value of that property exceeds the estate tax exemption limits. While the estate owner is technically responsible for the tax, their heirs are often the ones obligated to make payments when taxes are due after the death of a primary owner. This tax is a familiar burden for farm and ranch families across the U.S. when considering generational transfer.

The situation that Bonds and her family are dealing with is familiar to a vast number of farm and ranch families around the country. It is very clear that the Death Tax creates an uncertain environment for producers when thinking about the future of their operation. This tax is one that causes such financial burden that producers have to make tough decisions to ensure that the next generation is set up for success.

“The Death Tax disproportionately harms cattle producers because with few options to pay off tax liabilities, many farm and ranch families are forced to make tough choices at the time of death – and in worst case scenarios, must sell off land to meet their federal tax burden,” said NCBA President Jerry Bohn.

In its present form, the estate tax is an obstacle to keeping family-owned ranches and farms intact and viable during generational transfers. Ranching is a debt intensive business, forcing cattle producers to rely on a land-rich, cashpoor business model. According to the U.S. Department of Agriculture (USDA), 91 percent of farm and ranch assets are illiquid. As a result, families are often forced to sell off land, farm equipment, parts of the operation or the entire ranch to pay off tax liabilities at the time of death.

In order to avoid the devastating experience of selling the family business, some families have started planning for how

they will handle the estate tax well before they actually have to pay it. This process causes families who are already operating on razor thin margins to take on a significant financial burden as a result of having to pay for the legal services to establish insurance policies and a business model that will allow the next generation to experience a smooth farm transfer.

“If you haven’t done the extensive estate planning, the next generation is going to risk losing the operation,” Bonds said. “You need more than just a will; you need a way for the next generation to pay for it. With what we have done, with the amount of money that we have paid to put all of this stuff in place, we could have hired two other employees,” she continued.

With more than 40 percent of farmland expected to transition in the next two decades, Congress must prioritize policies that support land transfers to the next generation of farmers and ranchers.

“As small business owners, environmental stewards, and the economic backbone of rural communities across the country, U.S. cattle producers understand and appreciate the role of taxes in maintaining and improving our nation. However, they also believe that the most effective tax code is an equitable one,” Bohn said.

NCBA believes that the estate tax policy is in direct conflict with the desire to preserve and protect our nation’s family-owned ranches and farms. While the Tax Cuts and Jobs Act of 2017 (TCJA) temporarily extended estate tax relief by increasing the exemption amount to $10 million per individual/$20 million per couple - indexed for inflation - and maintained a rate of 40 percent, this increase is only effective until Jan. 1, 2026. The exemption levels will revert to $5 million per individual/$10 million per couple when the legislation sunsets.

Absent full, permanent repeal, the estate tax will continue to be a major burden on cattle producers across the U.S. NCBA continues to work with members of Congress to convey the fact that not only does the agriculture industry deserve certainty in the tax code, they need it to ensure the success of the next generation of agriculturists.

The Death Tax Repeal Act of 2021 was introduced to the 117th Congress by U.S. Senator John Thune of South Dakota and U.S. Representatives Sanford Bishop (D-GA) and Jason Smith (R-MO). While NCBA stands behind this legislation, full repeal was not able to be achieved in tax reform that happened back in 2017 and there are far more barriers to achieving full repeal in this political climate. However, NCBA is committed to continue the fight on behalf of producers.

“Cattle producers deserve certainty in the tax code. They deserve to be able to make plans for the next generation of producers. The TCJA sunsets and conversations happening currently about potential changes in the tax code to volatility has a detrimental impact when you’re talking about generational transfer,” said Danielle Beck, senior executive

Continued on Page 4

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NATIONAL CATTLEMEN

NCBA is Working for You

The Science of Sustainability

By Jerry Bohn, NCBA President In March, NCBA continued its work to protect cattle producers and livestock haulers from the burden of government overreach.

Livestock haulers are a crucial part of our business and without the ability to safely and humanely move cattle around the country, cattle producers and the entire cattle industry would suffer a tremendous burden. That’s why this issue has long been a focus for NCBA, and why your association will continue to push for workable solutions for the industry.

Last month, NCBA worked successfully toward the introduction of S. 792, the Haulers of Agriculture and Livestock Safety (HAULS) Act of 2021, which was introduced with bipartisan support in the U.S. Senate. Livestock haulers are a critical component of the beef supply chain, and the HAULS Act would cut red tape and give them more flexibility. Right now, livestock haulers are subject to regulations under the current hours-of-service (HOS) rules. Currently, HOS rules allow for 11 hours of drive time, 14 hours of on-duty time, and then a required 10 consecutive hours of rest.

These HOS limits may be fine for truck drivers who deal in consumer goods like shoes or paper towels, but it's a different story when you're a livestock hauler working to humanely and safely transport live animals. Livestock haulers cannot simply idle or unload their trucks along the side of the highway or at a truck stop when drive time hours run out, because doing so would jeopardize animal health and welfare.

NCBA’s team in Washington, D.C., has been advocating against the one-sizefits-all regulations that have been created for the trucking industry. We know that livestock haulers must be able to deliver the animals being transported in a safe and timely fashion. Livestock cannot sit on the trailer for a 10-hour rest period with zero air flow, this is simply not in alignment with good animal welfare practice. We also continue to educate regulators and lawmakers about the longterm safety record of livestock haulers, who have long proven their ability to deliver animals safely and humanely.

Because NCBA continues to build and foster bipartisan relationships with lawmakers on Capitol Hill, we now have a Senate bill that would create some common-sense solutions

for livestock haulers and producers. If passed, the HAULS Act would add a 150 air-mile radius exemption under HOS regulations to the backend of hauls for those transporting livestock or agricultural commodities; eliminate current rules that limit the ag and livestock HOS exemptions to state planting and harvesting periods (making the exemption available year-round in all states), and updates and clarifies the definition of an agricultural commodity.

The HAULS Act represents the best long-term solution — a permanent change to existing HOS regulations that protects animal welfare, helps drivers maintain the highest level of safety on the road, and helps keep grocery stores stocked with beef. NCBA continues to tackle Electronic Logging Devices (ELDs) and continued exemptions under HOS due to the COVID-19 pandemic.

Since the pandemic began, NCBA has fought each and every month to secure a renewed emergency declaration from U.S. Department of Transportation, which provides an exemption from HOS regulations for livestock haulers. In the midst of the pandemic, NCBA also continued the fight against ELDs and was able to secure another ELD delay for livestock haulers until September 30, 2021 through the congressional appropriations process. The work continues on Capitol Hill to extend that ELD delay until September 30, 2022.

NCBA works on many issues on a daily basis, whether it’s an issue like the one above or one such as increasing market transparency, protecting public land grazing, or creating new opportunities for profitability, NCBA is at work every day in Washington, D.C., and across the country to ensure the interests of cattle and beef producers are met and protected. No matter what size operation you’re running, or which segment of the industry you’re invested in, I guarantee we’re working on a state or national issue that impacts your operation. That’s why it’s so important that you are an active, duespaying member of your local, state and national cattle associations. If you’re not a member of all three, I’d encourage you to join and get involved today. This industry belongs to all of us, so does the responsibility for delivering it to the next generation.

2021 NCBA Leadership President Jerry Bohn President-elect Don Schiefelbein Vice President Todd Wilkinson Treasurer Joe Guild Federation Division Chair Clay Burtrum Federation Division Vice-Chair Brad Hastings Policy Division Chair Mark Eisele Policy Division Vice-Chair Buck Wehrbein Immediate Past President Marty Smith Chief Executive Officer Colin Woodall THE OFFICIAL PUBLICATION OF NCBA

Senior Editors

John Robinson Jill Johnson

By Colin Woodall, NCBA CEO In 2006, the Food and Agriculture Organization of the United Nations published an examination of global livestock production practices in Livestock’s Long Shadow. The 416-page report concluded that greenhouse gas emissions from animal agriculture exceeded all emissions from the transportation sector. Well, that was downright false, and we were not going to allow our business to be insulted like that! NCBA immediately began to fight back and correct the record.

We worked with several scientists to build our case against Livestock’s Long Shadow. One in particular is Dr. Frank Mitloehner who leads the Clarity and Leadership for Environmental Awareness and Research (CLEAR Center) at the University of California, Davis. Dr. Mitloehner prepared a report showing the very foundation of Livestock’s Long Shadow was flawed because the U.N. looked at all the emissions created by the global animal agriculture supply chain, but only used tailpipe emissions when analyzing the transportation sector. That comparison just does not give any scientific credence to the claims the U.N. made.

Dr. Mitloehner shared his findings with the U.N., and they agreed that he was right; they were wrong. In fact, during an interview with the BBC in March of 2010, Pierre Gerber, one of the authors of Livestock’s Long Shadow, accepted Dr. Mitloehner’s analysis and said, “I must say honestly that he has a point – we factored in everything for meat emissions, and we didn’t do the same thing with transport, we just used the figure from the IPCC (Intergovernmental Panel on Climate Change)…” So, end of story, right? Not so fast. Here we are in 2021, and the environmental extremists still use the original U.N. report to champion their cause, and many policymakers still listen to them.

That is why we need to take a page out of the extremist’s playbook and push our version of the story. The difference is that our version is based on facts. We all know that cattle emit methane, and methane is a known greenhouse gas. Methane follows a cycle that is about a decade long. As a part of that cycle, methane undergoes

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a chemical reaction with oxygen and is converted to carbon dioxide.

Carbon dioxide is then taken out of the atmosphere by plants and grass that utilize it during photosynthesis for plant growth. Cattle eat the plants and grass, and release methane as a result of rumination. The methane enters the atmosphere and gets converted back to carbon dioxide which is absorbed by a new round of growing plants and grasses.

In 2018, a new methodology in accounting for methane’s role in climate change was first published by a team of international scientists led by a researcher from Oxford. This new method is called Global Warming Potential - Star, better known as GWP* and takes into account the methane cycle described above.

GWP* better represents the difference between short-lived and long-lived greenhouse gasses, and since methane is short-lived, we believe this is a game-changer for the cattle business.

This methodology factors in all the tremendous work we have done over the years to improve the genetics of our cattle and our cattle production practices. Between 1961 and 2018, the U.S. beef industry, through continued sustainability efforts and improved resource use, has reduced emissions per pound of beef produced by more than 40 percent while also producing more than 66 percent more beef per animal. GWP* clearly shows we are a part of the solution, not part of the problem.

Now, even though GWP* is a much better methodology, there are others out there that inaccurately account for methane. That is why we must do more to promote GWP* among the scientific community. Our cattle partners in other parts of the world are embracing this methodology. Well respected scientists like Dr. Mitloehner and Dr. Jason Sawyer at Texas A&M – Kingsville are making the rounds showcasing this methodology and promoting its use. We have to do the same, and that is exactly what NCBA is doing. We are taking GWP* and using it on Capitol Hill and with the Biden Administration. President Biden has made a commitment to using science.

Well, here is science at its best. Yes, cattle produce greenhouse gases, but we need to accurately measure and assess our impact on the climate.

GWP* does just that.

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NATIONAL CATTLEMEN

A Tax on the Next Generation Continued from page 1 director of government affairs for NCBA. NCBA is committed to continued work across the aisle to ensure that the needs of farm and ranch families across the country are being understood in Washington.

“We’re going to keep members on record as supporting full, permanent repeal. This is important in terms of messaging as we look at several potential legislative initiatives that may move towards reconciliation. The estate tax and stepped-up basis cannot become revenue raisers. We can’t balance the budget on the backs of ranchers,” Beck said.

It is imperative that lawmakers understand how detrimental tax policy, when done wrong, can be for farmers and ranchers.

It's even more important to convey the point that, for those in the agriculture industry, this topic is one that hits close to home.

“I am very fortunate that this is all prevention so far. I am very fortunate that we haven’t lost either one of my parents. This is all stuff that we have in place right now just in case something does happen, because it’s inevitable. I don’t want it to, but I know one day it’s going to. When that day comes, I don’t want to not only lose my parents, but lose my home as well,” Bonds said.

NCBA stands firm in fighting for increased opportunities for producer profitability and, with that, opportunities for the next generation of farmers and ranchers to be successful. However, politics is local, and producer engagement is incredibly powerful in this discussion.

NCBA is calling on producers to join us in advocating to your elected officials though our comment campaign. Use this link – https://p2a.co/7XlGhkV – to send a letter to convey, to your elected official, the importance of sound tax policy for rural America.

Take the time to tell your story, because ultimately the next generation depends on it.

Transportation in the Cattle Industry Requires Additional Flexibility to Lessen Burden Throughout the Supply Chain Transporting cattle throughout stages of production is a process sometimes overlooked in beef’s journey from gate to plate. Transportation touches on a variety of issues important to farmers and ranchers, from cost to animal welfare, which is why NCBA continues to make this a priority issue in Washington, D.C. Margaret Ann Smith, a sixth-generation cattle producer and owner of Southlex Cattle Company, coordinates the shipment of cattle across 22 states; from New Mexico to New Hampshire.

“It’s amazing how our product moves; starting with the cow-calf producer to the buying station onto a stocker and then to a finishing yard. From there cattle are transported to the packer and then the product lands at a grocery store or restaurant. Because the animal is moved several times, livestock haulers are a critical component of the beef supply chain and flexibility in livestock hauling regulations is waiting 10 hours for the driver’s mandatory rest period to expire. It becomes an animal welfare issue and it’s the right vital,” Smith said. thing to do for the animals to let the driver go another hour Current hours-of-service (HOS) rules allow for 11 hours or so.” of drive time, 14 hours of on-duty time, and then require Berry also said that whether a producer is selling five 10 consecutive hours of rest. When transporting livestock, calves or 500 calves, the transportation sector affects there is a real need for further flexibility beyond the current hours-of-service. Unlike drivers moving consumer goods, everyone from a cost standpoint. livestock haulers cannot simply idle or unload their trucks “Without flexibility, a potential increase in transportation when drive time hours run out costs ultimately gets passed without jeopardizing animal on to the producer; it’s figured health and welfare. into the break evens before bid Without flexibility, a potential increase Clint Berry, NCBA price can be made on cattle.

Livestock Marketing Council It doesn’t matter what size in transportation costs ultimately gets chair and Superior Livestock producer you are or where you representative, said the hours passed on to the producer; it’s figured into market cattle – everyone has of on-duty time can create transportation costs that are the break evens before bid price can be a challenging dynamic for passed on,” Berry said. “We livestock haulers. made on cattle. It doesn’t matter what size need more flexibility in certain “The current 150-air mile situations, so the producer and producer you are or where you market cattle exemption for livestock and the hauler aren’t impacted by ag commodity haulers really is – everyone has transportation costs that are situations out of their control, vital for our haulers within the and the HAULS Act addresses hours-of-service regulations. passed on.” “We need more flexibility in For example, during the big, some of our industry’s needs.” certain situations, so the producer and the seasonal runs at sale barns, Smith agreed and trucks will often have to pull in referenced how the industry hauler aren’t impacted by situations out of line and wait to get loaded after has been operating under an their control, and the HAULS Act addresses a sale; this wait can sometimes HOS exemption for the last year be as long as three or four due to the pandemic. some of our industry’s needs. hours. Once those livestock “We’ve proven that the haulers are in line, they are – Clint Berry beef industry and its haulers technically on-duty, but because are capable of operating safely of the ag exemption their onwhile keeping animal welfare duty clock of 14 hours does not a top priority.

This piece of legislation helps us bring the start until they are loaded and 172 miles down the road.” pandemic exemption to a reasonable and fair permanent Berry said. solution,” she said.

To deliver much-needed flexibility for livestock haulers, NCBA has long advocated against one-size-fits-all NCBA delivered S.792, the Haulers of Agriculture and regulations for the live haul sector, and the COVID-19 Livestock Safety (HAULS) Act of 2021, a bipartisan bill pandemic further highlighted the need for flexibility when it introduced in the U.S. Senate.

The HAULS Act would add a 150 air-mile radius comes to livestock hauling. exemption under HOS regulations to the backend of hauls “The HAULS Act represents a very positive step in the for those transporting livestock or agricultural commodities. right direction — a permanent change to existing hours-ofIt also eliminates current rules that limit the ag and livestock service regulations that preserves animal welfare as well HOS exemptions to state planting and harvesting periods as safety on our roads, while also making sure producers (making the exemption available year-round in all states), can keep our grocery stores stocked with beef,” said NCBA and updates and clarifies the definition of an agricultural Executive Director of Government Affairs Allison Rivera. commodity.

“The HAULS Act gives us more flexibility to handle a live commodity,” Smith said. “The thing I hear about We need you help! the most in conversations between cattle producers and livestock haulers is the 150 air-mile radius exemption. A driver is leaving a ranch or a buying station with cattle and Please reach out to your senators today and traveling 1,000 miles – adverse weather or an unforeseen ask them to cosponsor S. 792, the HAULS Act situation along the road may force a change in the delivery destination. Often they are so close – within 50 to 60 miles so that we can provide flexibility for livestock – but the way the rules are currently written forces livestock haulers under current HOS regulations. haulers to stop. That is simply not feasible when you just need another hour to get cattle unloaded rather than

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NATIONAL CATTLEMEN

Post-partum Management to Benefit the Cow

By Dr. Julia Herman, Beef Cattle Specialist Veterinarian at NCBA Reproduction is a major contributor to the productivity of the cow herd and can have long lasting effects on herd productivity and business sustainability.

Considering that reproductive failure is the most common reason for cows leaving the herd, it is important for cattle producers to evaluate the factors related to optimizing that cow’s reproductive success as she transitions from one breeding season to the next. There are many physiological changes the cow must endure before she is ready for the next breeding opportunity.

The checkoff-funded Beef Quality Assurance (BQA) program already provides a framework for effectively managing the cattle herd throughout the year. Managing post-partum intervals, nutrition, proper vaccination and timely marketing can all lead to a more productive and healthier herd.

Post-partum Interval Management Following calving, the cow exhibits temporary infertility as her body recovers from the previous pregnancy and calving process. This post-partum interval (PPI) is the period from calving to fertile estrus when the cow conceives again.

In beef cows, the PPI is usually 45-55 days (range: 40-80 days) depending on factors such as nutrition, suckling, age, season, breeding season length and others. First-calf cows will generally have a longer PPI since they are allocating energy to both growth and lactation.

Uterine involution is the time it takes for the uterus to repair itself after calving and return to its non-pregnant size. This also occurs during the post-partum interval and can take 20-40 days to fully recover from pregnancy.

Dystocia, or difficult calving, can increase the post-partum interval significantly, so it is very important that, if assistance is needed, intervention occurs early in the calving process.

Vaginal trauma or retained placenta (not cleaning) are potential problems that could impede healing. Post-partum care for both the calf and dam should be considered with all dystocias. Planning before calving season with your herd veterinarian on supportive therapies such as electrolyte supplements and pain medication can help the cow recover more quickly to care for her calf. Calves born to dystocias will also need extra care. In previous issues of National Cattlemen from January and February

2020, there are herd health and calving tips that may be a useful refresher. As a reminder, members can access previous issues of National Cattlemen through their member portal on the NCBA website (NCBA.org).

Managing this interval can have many benefits to both the individual cow and the overall cow herd. Cows that recover from calving more quickly will cycle earlier in the breeding season and have higher conception rates. Long term benefits include cows getting bred on the first cycle, a more uniform calf crop and allowing that cow to continue to be productive in upcoming seasons.

Increasing the post-partum interval can have negative impacts on the cow’s return to cyclicity, breeding season length and calf crop uniformity. Cattle producers must be diligent in evaluating the various factors that contribute to the health and recovery of a post-partum cow.

Nutrition Providing proper nutrition, both energy and micronutrients, is a yearround endeavor for any cattle producer.

BQA recommends each cattle operation have a resource group, including a veterinarian, nutritionist, extension agent, among others, to advise on herd health planning and management. Having a consultant for nutrition options can be helpful especially during the winter months when forage supply may be low and other foodstuffs or supplements could be utilized. For pregnant animals, good nutrition throughout gestation can have lifelong effects on the growing calf and also contributes to the future reproductive success of the dam.

A useful tool to monitor a cow’s nutritional status is the body condition score (BCS). BCS is a visual examination of the cow and estimating her nutritional status by the amount of muscle/ fat coverage over parts of the body.

BCS scores for beef cattle range from 1 (emaciated) to 9 (obese). This tool can be utilized at designated times throughout the year (i.e., at breeding, pregnancy diagnosis and calving) to gauge the herd’s nutritional status. For more information on BCS guidelines with example photos, consult the BQA National Manual.

A cow’s BCS at calving can be an indicator of reproductive success in the coming production year. Targeting a BCS between 5 to 6 for cows at calving promotes optimum reproduction and calf health. BCS of at least 5 or greater ensures the cow has sufficient

reserves to help overcome nutritional imbalances in the PPI. Nutrition throughout the pregnancy is important, although the last 50-60 days prior to calving has a major effect on that cow quickly returning to cyclicity after calving. Ensuring that cows do not lose weight before calving contributes to healthier calves and cows that are better able to care for that calf.

If a cow has a lower BCS at calving, this can prolong her post-partum interval and take longer for her to cycle and subsequently get bred. Calves birthed by thin cows have increased risk of morbidity and mortality during the first two to four weeks of life. Nutritional stress will reduce production of the animals and can increase health risks by impairing immune function. This year has shown us the challenges that Mother Nature can throw during the winter and addressing nutritional needs during cold weather has immediate and long-term benefits to the pregnant cow and her calf.

Supplementing protein when the grass has not greened up is crucial and can be achieved through a variety of feedstuffs or supplements. After calving, a cow’s nutritional needs increase even more due to early lactation and preparing for breeding. If facilities allow, it may be advantageous to sort cows

by BCS so that thinner animals may be fed accordingly to maintain their body condition.

Another tool that could aid in cows returning to cyclicity are ionophores like monensin. Ionophores are feed additives that improve feed efficiency and body weight gain in cattle by altering how certain rumen microbiota utilize nutrients.

Feedstuff type, quality and supply are regionally dependent, so it is important to have a working relationship with a cattle nutritionist, veterinarian or local extension agent to discuss various options to feeding cattle.

Pre-breeding Vaccinations Vaccinations are a preventive measure that cattle producers utilize for their herds. Always follow BQA guidelines and adhere to label instructions closely when administering cattle health products.

For breeding animals, there are specific

diseases that are important to prevent so reproductive rates are not affected.

Venereal diseases are sexually transmitted diseases that can negatively affect your adult cattle and the herd’s conception and pregnancy rates.

Both bulls and cows can be carriers for such diseases. Reproductive diseases of concern in cattle include campylobacteriosis (previously known as vibriosis), leptospirosis, brucellosis, infectious bovine rhinotracheitis (IBR), bovine viral diarrhea (BVD) complexes and trichomoniasis. Prevention of venereal and other infectious diseases by vaccination is the best and most economic practice for these diseases.

This list of vaccines should be considered when planning protocols with your herd veterinarian.

Much research has been dedicated to identifying safe vaccines for pregnant animals. Modified-live virus (MLV) vaccines pose a risk of inducing abortion if given to pregnant animals who have not been vaccinated with the same vaccine prior to pregnancy. To prevent vaccineinduced abortions, it is best to give MLV vaccines before the cow is bred, ideally 30-60 days prior to breeding, especially if vaccine history is unknown. This allows for the cow’s immune system to react appropriately to the vaccine. If given less than 30 days to breeding, conception rates may be negatively affected. MLV vaccines are especially important when vaccinating heifers so they mount a strong immune response to pathogens like IBR and BVD prior to breeding.

Killed-virus vaccines can be used safely on pregnant or non-pregnant animals.

However, the protection against BVD in these vaccines is questionable. Talk with your herd veterinarian on which vaccines are best for your operation.

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PLANS UNDERWAY FOR CATTLECON21 I

t’s time for the 2021 Cattle Industry Convention & NCBA Trade Show, Aug. 10-12, at the Gaylord Opryland Resort & Convention Center in Nashville. Adjust that dial and “Tune in to Tennessee” for networking, educational activities and family fun. Pull out your six-string guitar and count down these top reasons why you should make plans for Nashville.

1. Health and Safety are the #1 Priority. Visit with friends, network and conduct business in person knowing that the Gaylord Opryland Resort is using hospital grade disinfectants, incorporating technological innovations for sanitization and regularly cleaning high touchpoint areas.

2. Have Your Voice Heard. Engage with other producers, participate in meetings and share your ideas for advancing the cattle industry.

The checkoff and policy priorities discussed and evaluated at the convention help lay a foundation for important work critical to the success of the industry.

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4. Great Speakers and Educational Opportunities. Cattlemen’s College sponsored by Zoetis will feature cutting-edge topics and top industry leaders including keynote speaker, Dr. Jayson Lusk from Purdue University. Interested in improving your business, building a better herd or maintaining animal health? There will be six educational tracks to choose from. General Sessions will feature CattleFax and their 2021 U.S. & Global Protein and Grain Outlook Seminar, a session on sustainability, and the closing session will celebrate Beef Quality Assurance.

tions, a learning lounge with lightning-fast education sessions, chutes and scales, a Stockmanship & Stewardship demo area and new this year, outdoor exhibit space.

5. Entertainment. You can’t come to Music City without experiencing live entertainment. Get ready to kick up your heels during exclusive events such as Nashville Lights & Neon Nights and Cowboy’s Night at the Opry.

Registration and housing will open June 1, 2021, so mark your calendars. Need more reasons to attend? Visit convention.ncba. org today to get involved in #CattleCon21.

“We can’t wait to get everyone together once again for the most important cattle industry event of the year,” said Kristin Torres, NCBA Executive Director, Meetings and Events. “The exciting schedule is jam-packed with education and entertainment for the entire family.”

6. Trade Show. Bring your walkin’ boots! There will be 7.7 acres of displays and more than 330 exhibitors with daily trade show recep-

3. Family Friendly Event. SoundWaves Water Attraction is a new feature and is sure to be a hit with the kids and grandkids.

SCHEDULE AT A GLANCE Tenative Schedule as of 3/15/21

SUNDAY, AUGUST 8

8:00am-1:00pm .............................................................ANCW Meetings 1:00pm-9:30pm................................................................ANCW Ag Tour

MONDAY, AUGUST 9

8:00am-7:30pm .............................................................ANCW Meetings 2:30pm-7:30pm ........ Cattlemen’s College - Demo Sessions & Reception 6:00pm-9:00pm ......Cattle Feeders Hall of Fame Reception and Awawrds

TUESDAY, AUGUST 10

7:30am-2:00pm .......................... Cattlemen’s College Programs & Lunch 8:00am-12:00pm ..........................................................ANCW Meetings 1:00pm-3:00pm.............................................Checkoff Highlight Session 3:00pm-4:30pm...............................................Opening General Session 4:30pm-8:30pm .......................... NCBA Trade Show Welcome Reception 8:00pm-9:30pm ................ Environmental Stewardship Award Reception

2021 NCBA TRADE SHOW THESE BOOTS ARE MADE FOR WALKING- AND THAT’S JUST WHAT THEY’LL DO!

7.7 acres of the latest and greatest for the cattle business is what you’re going to find at the NCBA Trade Show in Nashville.

The NCBA Trade Show is a showcase of the latest in equipment, feed, technology and so much more all under one roof.

• 350 + Exhibiting companies • Receptions and social events each day • Education programs • Live Cattle handling demonstrations • Chutes and Scales -side by side comparison of the latest and greatest The NCBA Trade Show is your solution center and is more than just a trade show it’s an event! Mark your calendar and plan to attend the largest trade show for the beef cattle business. Whether you have 10 cattle or 10,000 this event is the one you can’t afford to miss.

WEDNESDAY, AUGUST 11

7:30am-9:30am ..........................................................General Session II CattleFax 2021 U.S. & Global Protein & Grain Outlook Seminar 9:00am-6:00pm.......................................................... NCBA Trade Show 9:45am-11:15 a.m .................................................... D.C. Issues Update 11:15am-12:15pm..................................................... Regional Meetings 1:30pm-6:30pm...........................Checkoff & Policy Committee Meetings 4:00pm-6:00pm ......... NCBA Trade Show Reception - Whiskey & Biscuits 7:00pm-11:00pm .....................................Nashville Lights & Neon Nights

THURSDAY, AUGUST 12

7:30am-9:30am ......................General Session III – Sustainability Forum 9:00am-4:00pm.......................................................... NCBA Trade Show 9:45am-12:00pm ................................ NCBA Board of Directors Meeting 3:00pm-4:00pm... NCBA Trade Show Reception -Pups & Suds Yappy Hour 4:00pm-5:30pm................................................ Closing General Session A Beef Quality Assurance Celebration 5:30pm-8:00pm ...............................................NCBA First Call Pre-Party 8:00pm-1:00am ...............NCBA Cowboy’s Night at the Opry & After-Party

CAN’T ATTEND IN PERSON? STAY TUNED TO CONVENTION.NCBA.ORG FOR ALL OF THE DETAILS ON THE VIRTUAL CATTLECON REMIX

WE ARE EXCITED TO GET BACK TO BUSINESS IN PERSON!

YOUR SAFETY AND HEALTH IS A TOP PRIORITY TO OUR TEAM AND PARTNERS! PLAN TODAY TO TUNE IN TO TENNESSEE.

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April Weather Outlook

By Don Day, Jr. Meteorologist

Editor’s Note: NCBA members can read weekly updates from meteorologist Don Day, Jr. by logging onto www.NCBA.org.

After a very stormy March across the lower 48 states, will April continue the hijinks of March with snowstorms, tornadoes and wild temperature swings? The answer is both yes and no.

Although weaker than a month ago, the colder sea surface temperatures in the subtropical Pacific (aka La Niña) continue and those cooler waters may impact how the rest of spring (April and May) will unfold.

Despite an increase in precipitation and the small easing of drought conditions in some areas of the central and western areas of the U.S. in March, many parts of the west and central U.S. still have drought conditions. Therefore, wet weather needs to continue into April to ease drought conditions.

Precipitation normally increases from March to May over most of the nation as the seasons change so you should expect an increase in precipitation across the nation in April. However, to gain ground in drought areas you will need above average precipitation in April (and later into May) to play catch up with drought conditions.

As we look at long range trends in April, we are concerned that some

dry areas may persist, despite the likelihood of some April showers in many areas. If La Niña persists, historical trends suggest that April will be warmer and drier than normal in some areas of the U.S. where drought conditions persist.

Let us first look at expected temperature trends in April. The graphic below shows that most of the U.S. and Canada will have above average temperatures in April. The yellow and orange areas highlight where temperatures are likely to be warmer than average. The bullseye of warmth is right over the central U.S. and covers most of the nation from the Rockies to the East Coast. We have seen this during past La Niña events, a warm April.

Regarding precipitation chances, April may disappoint when it comes to precipitation. While you should expect stormy weather in April with periods of rain, snow and thunder, long range trends suggest below normal precipitation for most of the U.S. While the northern tier of the nation as well as the far south and southeast may receive average or above average precipitation (white and green areas), a large part of the nation may experience below normal amounts of precipitation (brown).

In the drought-stricken parts of the west and central areas of the nation this would not be good news. However, as we saw in March, sometimes Mother Nature can surprise us with some bigger rain/snow producing storms.

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Embracing the Positives in Sustainable Cattle Production Cattlemen and women are the original climate heroes, preserving natural resources for generations, while producing safe, affordable and abundant protein for the world to enjoy. Myriah Johnson, senior director of beef sustainability research for the National Cattlemen’s Beef Association (NCBA) and Jason Sawyer, associate professor and research scientist with the King Ranch® Institute for Ranch Management shared how cattle production contributes positively to society.

Johnson posed a question often seen in media headlines: “How do we feed the planet in 2050?”. She explained the desire that exists to feed people in a way that is sustainable for generations in the future, and how beef plays a critical role in that sustainable food system.

“The fundamental value proposition of beef to the food system is the transformation of lower value resources, such as grasses and plant byproducts, to higher value protein full of micronutrients, which nourishes people,” Johnson said.

Although people often have different definitions of sustainability, responses generally fall into three major pillars including economic viability, environmental stewardship and social responsibility. Science-based evidence demonstrates how cattle management efforts are making positive contributions to all three pillars.

Johnson provided an overview of the economic and social benefits of the beef industry including its impact on local, regional and national economies, tax contributions, job creation, rural development and food security, among

“Methane is a natural result of ruminant digestion and can’t be eliminated without forsaking the critical capacity to upcycle human inedible feedstuffs,” he said.

There is 600 times more carbon dioxide in the atmosphere than methane and unlike methane, which disappears from the atmosphere in 8-12 years, carbon dioxide doesn’t break down.

“Overall, the U.S. beef industry’s contribution to atmospheric methane is very small, but even annual reductions of 0.5 or 1.5 percent in methane emissions can help lead the industry to climate neutrality in the near future,” Sawyer said.

Although often overlooked, the beef industry has positive environmental impacts when it comes to land-based carbon removal. Carbon uptake through grazing lands can help offset non-methane emissions currently attributed to beef production, according to Sawyer. If the warming potential of methane is properly accounted for, and Beef is good for people, the planet and current levels of carbon profit, and it is the complete package across uptake are included in the greenhouse gas profile of all three pillars of sustainability. beef systems, U.S. beef producers might already be approaching climate neutral production. others. According to a forthcoming Johnson and Sawyer discussed the report on the Economic Contributions benefits of grazing to the social and of the U.S. Beef Industry, more than 27 economic pillars of sustainability in billion pounds of beef are produced addition to environmental. “Cattle don’t annually, providing 144 billion, 3-ounce just use the land, they help protect servings of beef. In addition, U.S. beef ecosystems, soil health and wildlife in production and processing contributes addition to protecting public safety by $167 billion in gross sales and supports reducing fire risk,” Johnson said. “And, a labor force of more than 721,400 if cattle weren’t grazing on federal workers. “It matters that the beef lands, more expensive mechanical industry exists, and research shows its management would be required.” impact on communities,” Johnson said.

Johnson concluded, “Beef is good Sawyer focused on beef’s role in the for people, the planet and profit, and environmental pillar of sustainability. it is the complete package across all He suggested the industry focus on the three pillars of sustainability.” term “climate neutral” which means Sawyer agreed and added, “Beef implementing systems that have sustainability is a complex subject, minimal effect on projected global but there is a lot to be excited about. temperature change.

Production of beef is not degrading the According to Sawyer, there is a planet, but rather improving the planet lot of confusion about methane and its actual impact on the environment. while feeding the world.”

Ground Beef Prices Look Solid for 2021

Don Close, senior animal protein analyst with Rabo AgriFinance This past year’s beef demand success story includes a chapter for ground beef. And a number of factors foretell the continuation of that story for ground beef into the second half of 2021. The positive outlook provides a level of stability for cull cow prices, which could play a factor into cow liquidation.

Through this past year, beef has continued to be the focal point of retail sales. One of the few winners of the COVID-19 pandemic has been Quick Service Restaurants (QSR) that benefitted from being able to serve customers through drive-up windows. When QSR wins, ground beef wins.

Now just as the spring grilling season gets underway, the recently signed-into-law Stimulus 3 will provide up to $1,400 per person and $5,600 per household of four. That influx to personal income should create another increase in spending and be a big supportive influence to all meats. As more people receive their COVID-19 vaccinations and economic activity – including fullservice restaurants – return to a new normal, ground beef is expected to be a beneficiary alongside its meat menu brethren.

Price action of the trimmings market for the year to date have been interesting. Lean beef trimmings (90 Percent CL Trimmings) have consistently gained momentum and are trading 20 cents-per-pound higher than where they started the year. Fat trimmings represented by 50 Percent CL Trimmings have traded sideways at best and are trading somewhat counter-seasonal.

While retail and QSR demand are certainly part of the ground beef success story, supply is a factor, too.

Domestic cow slaughter is running at the same levels as a year ago, while imports of manufacturing beef are down. Imports from Australia and New Zealand were 19 percent below year-ago levels in January.

Imports of trimmings from both Brazil and Uruguay are above 2020 levels, but they represent a very small portion of total usage.

It is important to note ground beef used in different market segments typically has different originations. The lean trimmings portion of the blends for QSR patty manufacturers typically comes from imported 90’s. The imports come in as frozen blocks and the patty manufactures mix them with domestic fresh 50’s. The colder temperatures of the frozen 90’s keep the grinders cooler, which prevents the blended product from becoming tacky. The fact that imports are down help support the price strength in 90’s.

Price weakness for 50’s most certainly implies there is no shortage of fat. Looking ahead, more limited availability of fat may improve the 50’s price. Carcass weights should decline seasonally, fed cattle supplies should tighten measurably early in the second quarter, and I expect higher feed grain prices to have an influence on the finished weight of fed cattle during the summer and second half of the year.

In 2020, grocery stores across the country recorded double digit sales gains as restaurant closures and shelter-in-place orders forced consumers away from restaurants.

Retail ground beef typically comes from fresh domestic product, primarily from the fed beef supply (not cull cows). Retailers prefer the domestic product for traceability reasons. Also, the fresh, never frozen product is better for keeping grocery store packaging attractive and not soggy. The reopening of full service restaurants will probably dampen grocery store sales but will be far from erasing all of the 2020 gains.

As the calendar moves through the spring and heads into summer, the impact of Stimulus 3 is expected to wane. Consumers are expected to re-implement more and more activities that will pull on their disposable income. More driving and higher energy prices would pull from disposable income. More leisure travel and a return to more meals away from home would redistribute households’ disposable income. With an expected stop to stimulus contributions, consumer incomes could become strained during the second half of 2021. If this scenario plays out, ground beef could very well benefit again as consumers pull away from whole muscle cuts.

The one uncertainty in the ground beef price outlook for the year is drought. If drought conditions in the western U.S. intensify in severity or expand east, I’d expect more aggressive cow liquidation during the second half of the year.

Given my expectations for ground beef demand, however, even if cow liquidation and the supply for lean trimmings increase as the year unfolds, cull cow prices should hold a better level of stability than what the market has experienced during other cow liquidation phases.

If you are interested in additional insights into the beef industry, find the closest Rabo AgriFinance office on www.RaboAg.com.

Rabo AgriFinance is a leading financial services provider for agricultural producers and agribusinesses in the United States. Adding value through industry expertise, clientfocused solutions and longterm business relationships, Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for and take advantage of market opportunities. This comprehensive suite includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a division of Rabobank, a premier bank to the global agriculture industry and one of the world’s largest and strongest banks.

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NATIONAL CATTLEMEN 11

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Early Drought Planning Will Pay in the Long Run Drought conditions continue to impact much of the western half of the U.S. and threaten to move east depending on spring precipitation.

Though some regions do not yet face imminent threat, it is never too early to develop drought plans.

The natural optimism of agricultural producers and the inevitable hope that rain will come “any day now” makes it tempting to postpone drought planning. According to Derrell Peel, Oklahoma State University, it is better to have a plan that is ultimately not needed than wait until conditions force decisions at a time when alternatives are significantly reduced.

“The key is to start planning early; I can’t overemphasize that. If spring rains are light and conditions don’t improve then ranchers will be faced with few resources or options and forced to do things that are devasting to an operation,” Peel said. “Developing a plan that has fairly specific triggers based on a farm or ranch’s resource assessment is the best way to make decisions without being overwhelmed by everything all at once.”

Peel said the first step is to assess feed resources. With producers facing current high feed prices and tough winters in some parts of the country, they may not have much flexibility going into summer this year.

“Part of the planning process is to figure out your end game. Are you going to buy hay every 30 days just to get by or can you spend time now mapping out how you’ll rotate pastures and supplement the feed resources you currently have on hand,” Peel said.

“Depending on where you’re at in the country, water can get to be a bigger problem than feed so that may force a decision quicker than feed.”

A dry year adds another layer of complexity to planning nutrition and management for the herd. Droughtreduced pasture and/or hay production may lead to a need to reduce forage demands in cattle operations. Early cow culling may be the next step in the planning process.

“Novel management strategies may need to be implemented to account for less feed opportunity,” said Julia Herman, NCBA veterinarian and beef cattle specialist. One strategy is scheduling your herd veterinarian to diagnose pregnancy earlier than in previous years which can have many benefits. First, veterinarians can age fetuses more accurately earlier in a cow’s pregnancy. If your herd artificially inseminates (AI) and then follows up with a cleanup bull, having the veterinarian come out earlier can better predict AI versus live cover sires and group cows into approximate calving dates. It is recommended to schedule the pregnancy check date for 45-60 days after the cleanup bull is removed from the herd.

“Earlier pregnancy diagnosis can identify cows or heifers that either did not breed back or may have lost their calf late in the breeding season” she said “The animals can be sold as open animals, fed out before selling, or potentially be transitioned to a fall calving herd. Open, first-calf heifers could be marketed as breeding or feeder animals which may improve profits.”

Pregnant cows could be grouped by pregnancy stage and outlier groups could be sold as pregnant cows.

For instance, consider a herd with a longer breeding season and the herds’ pregnancies stage from 60 to 180 days (two to five months gestation) at time of pregnancy diagnosis. If the operation wanted to tighten their calving season next year, they could consider selling pregnant cows that were three months pregnant and younger. There are variations in this management style that may benefit your operation. Planning out the year for the cow herd is important to discuss with your herd veterinarian.

With less access to pasture or hay this year, other culling strategies may need to be considered such as applying more strict criteria to keep cows in the herd. Cows with large teats or pendulous udders, cows with missing or worn teeth, thinner cows, poor disposition, or any other ailment should be culled in a year where real estate

and feed sources are scarce.

Peel agreed and suggested making a priority list of how herd liquidation will be implemented if necessary. This should include older and open cows, growing replacement heifers, pregnant heifers, mature cows and so on. This plan may include consideration of relocating animals outside of the drought area and should evaluate the economic feasibility of relocating animals as well as the reality of locating and arranging a destination for animals.

Keeping good records throughout the year on important dates, sources of feed, and animal health product information will provide the best information for keeping animals in the herd.

“Every year, cattle producers must adapt their strategies to optimize productivity and profit on their operations. Ultimately, remember that healthy calves are born to healthy mothers and utilizing your resource group to make critical decisions will maintain the health of your business and operation,” Herman said.

According to USDA’s Jan. 1 inventory report, the cow herd is down 0.6 percent and Peel said he looks for 2021 to be flat. “The market is waiting for new information and a new sense of direction. If things like the drought or feed cost gets severe then it could be bad. If we can get through the pandemic, we could see prices that are

stable to higher in 2022,” he added.

Peel recommended that producers also plan for drought recovery, especially if herd liquidation comes into play. “You need a drought preparation plan along with a post-drought plan from the get-go; think about your plan and timeline for rebuilding. Ask yourself questions like, ‘If I have to sell cows will I add replacement heifers, pairs or bred cows and immediately restock?’ Will drought-forced liquidation have tax implications for my operation and affect the timing of when I can rebuild?’.”

It’s also important that producers think about the broader market situation when planning for drought.

Peel said trying to think ahead of the market is important because it takes a remarkably big drought to impact the market outside of a certain region.

It is okay to hope for better conditions as long as you plan for the worst. “If you start planning now you have some options and opportunity to react to what Mother Nature gives us. If you wait two months from now you could be severely impacted and the result will be increased financial and emotional stress. A comprehensive drought plan that considers short and long run considerations will help guide decisions to reduce the stress for both the producer and the business,” Peel said.

TYPICAL SALESMAN

Planning for a drought and the steps you can take now to be prepared for potential tough times ahead.

1.

Conduct a resource assessment starting with available feedstuffs and access to water; plan a rotation that will allow greater access these resources during drought

2. Evaluate your herd and management strategies: pregnancy check early, consider early weaning and identify older or cows without a calf that are likely culling candidates and consider culling early 3. Develop a priority list for potential herd liquidation to conduct in phrases if necessary; this should include action triggers, which could be specific dates or based on forage conditions, that will initiate the next phase of liquidation

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Higher Corn, Larger Exports, Tighter Supplies

By Lance Zimmerman, Manager – Research, Analysis and Data, CattleFax Cattle producers have dealt with near-constant chaos for 18 months. It is easy in those moments to build a market expectation based on what is happening now. After all, it is difficult to look down

the road when you are going 100 miles per hour and trying to avoid the pileup in front of you.

Recently higher corn prices and stronger protein exports could help cattle producers navigate the protein logjam that has created headaches in

Bottom Line:

recent years. The relief is likely to come slowly, but the supply situation at the end of 2021 should be more friendly for cattle producers.

Higher grain prices are dominating farm and ranch discussions today. The active corn futures contract has rallied $2.50/bu. from the 2020 lows to the recent highs, while the active soybean futures contract has added $6.

Like the corn market rally in 2010, this is causing beef, pork and poultry prices to adjust higher, and retailers and distributors are already accounting for the challenge.

Rising feed costs present more production risk to pork and poultry producers. For simplicity, assume those producers use a 75 percent corn and 25 percent soybean meal ration on an as-fed basis. That means the futures rally outlined earlier created a 75 percent increase in potential feed costs.

Most pork and poultry producers have seen sales prices increase enough to cover those costs and keep profitability in operations today.

However, feed prices are likely to stay elevated through 2021 and into early 2022. That will stifle the recent pace of expansion in those sectors.

The CattleFax forecast for beef, pork and poultry production is flat for 2021 and 2022 – staying near the 105.3 bil. lbs.

Cattle producers have faced never-ending obstacles as the expansion phase of this cattle cycle ended. There will still be trials to endure as an industry, but as 2021 continues, total protein supply might not be one of them.

produced this past year. Contrast that with the trend from 2015 to 2020 where total production increased 2.4 bil. lbs.

(2.5 percent) per year on average.

As production stagnates, expect global demand for U.S. protein to remain strong. Total beef, pork and poultry exports grew 1.1 bil. lbs. (6.4 percent) in 2020. It was the largest year-over-year growth since 2011. The previous five years increased 0.3 bil. lbs. (1.9 percent) on average.

The CattleFax export forecast in 2021 and 2022 outlines a larger-thanaverage increase of 0.8 and 0.5 bil. lbs., respectively. That will reduce U.S. per capita total beef, pork and poultry supplies 1.5 to 2.0 lbs. per person each of the next two years, if realized.

Elevated Number of Carcasses Grading Prime and Choice Continues in 2021

By Katelyn McCullock, Director of the Livestock Marketing Information Center Heavier carcass weights of 2020 gave rise to an elevated number of carcasses grading Choice and Prime. That trend has continued through the first two months of 2021.

The weekly USDA national grading percent released by U.S. Department of Agriculture’s Agricultural Marketing Service (USDA AMS) provides a breakdown of the percent of carcasses grading Prime, Choice and Select.

The first two months of 2020 showed, on a weekly average basis, that the percent of carcasses grading Prime was 9.56 percent. In 2021, that number has jumped nearly a percent and has been averaging 10.60 percent. In the last few weeks of February and beginning of March the percentage jumped to over 11 percent. Choice graded beef last year average 73.52 percent compared to 73.70 percent in 2021. Select graded carcasses have decreased by more than a percent compared to a year ago, averaging 12.63 percent this year versus 13.82 percent in the same period in 2020.

Last year was the largest jump in Prime graded carcasses since 2018, increasing the weekly average from 8.6 percent to 10.2 percent in 2020.

In 2018, the prime graded carcass

percentage jumped by nearly two percentage points over 2017’s average.

Prime graded carcasses accounted for a double-digit percentage of the carcasses presented for the first time in 2020, and this year is on pace to post another year-over-year gain.

Heavier carcass weights are likely a contributing factor, but the beef industry has long been focused on producing a high-quality product and has been able to achieve those gains through focused genetics.

Over the last five years, demand for higher quality cuts has expanded, with grocery retail offerings of Prime beef becoming more commonplace in the market. Still, a large proportion of Prime graded beef moves through the fine dining sector, but that proportion is changing. The pandemic shifted a large proportion of restaurant demand back to the retail sector and as a result, it’s likely that the increase in Prime beef that hit the market in 2020 had trouble moving to some degree.

Cold storage does not break out the different grades of beef—only the number of pounds that is boneless versus bone-in cuts. It is difficult to estimate how much Prime was frozen, but bone-in cuts are the smaller of the two cold storage categories.

Despite the demand disruptions, the

BEEF GRADED CHOICE As a Percent of Beef Graded

Percent 76 75 74 73 72 71 70 69 68

JAN

APR

JUL

Avg. 2015-19 Data Source: USDA-AMS Livestock Marketing Information Center

OCT

2020

2021 M-S-26 03/12/21

$/Cwt 425 400 375 350 325 300 275 250 225 200 175 150

Mar-20

CUTOUT VALUE Monthly

May-20

Prime

Jul-20

Branded

Sep-20

Choice

Nov-20

Select

Jan-21

Ungraded

Data Source: USDA-AMS, Compiled by LMIC Livestock Marketing Information Center

Prime cutout value averaged higher in 2020 than in 2019: $252.82 vs $247.48 per cwt over the course of the year.

However, that is misleading as Prime cutout values were only higher than the prior year in January, April and May. May averaged $406.31 in 2020 due to limited slaughter. The first two months of 2021, Prime cutout is above 2020 but there are significant questions about what demand looks like in 2021. Large questions loom if beef demand from grocery and other retail outlets will remain the same or if food service will post significant gains.

Fine dining remains a key component to marketing Prime beef.

Choice beef has the advantage of being generally more accessible than Prime. However, the increase in Choice beef combined with the challenges of the pandemic, brought 2020’s average Choice Cutout value to $223.23 vs $220.01 per cwt in 2019. Choice cutout values were well above 2019 for the second quarter, resulting in an annualized year-over-year gain. The first two months of 2021 have been slightly stronger than 2020 and is a promising start. Without the large cutout increases from slaughter disruptions in 2020, cutout values would have posted a yearover-year decline.

Bottom Line: Even though Prime and Choice grading are occurring at higher percentages, fed slaughter is expected to be smaller. Dressed weights will tell the full story of tighter supplies on a total pound basis. If restaurant demand stages a strong come back in the second half of 2021, expect to see cutout values elevated during that timeframe.

The first half of 2021 will post some significant year-over-year declines when compared to extremely high cutout values in 2020. Still, be looking for signposts that the restaurant and hospitality sectors are recovering—which should turn cutout values higher.

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NATIONAL CATTLEMEN

T H E F E D E R AT I O N O F S TAT E B E E F C O U N C I L S Building beef demand by inspiring, unifying and supporting an effective state/national Checkoff partnership.

Beef Brings Communities Together The beef industry has a long history of supporting communities nationwide, but its commitment to helping others was even more evident during the struggles over the past year due to the COVID-19 pandemic. States across the country have implemented programs that support schools, healthcare workers and those in need.

Here are a few states with programs highlighting beef bringing communities together.

Giving Back During Challenging Times

Oklahoma’s beef farmers and ranchers continue to give back to the community during these challenging times by supporting the Beef for Backpacks program. The program provides essential high-quality protein in backpacks distributed by local food banks to chronically hungry children.

Started in 2012, the program gives more than one million meat sticks to kids each year.

In other community efforts, the Oklahoma Beef Council has stepped up to support Oklahoma’s healthcare workers. Building upon the need for high quality protein snacks, the Oklahoma Beef Council (OBC) provided more than 4,000 beef sticks with a message of gratitude to physicians, nurses and other healthcare

workers at hospital systems managing high levels of COVID-19 patients.

Additionally, the OBC provided gift cards as part of a “thank you” drawing through its affiliate partnership with the Oklahoma Academy of Family Physicians.

“We are grateful for the incredible dedication of Oklahoma’s health community as they carry the burden for caring for Oklahomans under unimaginable circumstances, and this is one small way to say thank you,” said Heather Buckmaster, OBC executive director.

For more information, visit www. oklabeef.org.

Beef Gives Kids a Cool Ride

The “wheels on the bus” are rolling with beef in several Tennessee counties. The Tennessee Beef Industry Council (TBIC) had the unique and affordable opportunity to place some of the ‘Nicely Done’ beef ads on school buses in counties where the service was provided. District Solutions is a company that works with local school districts to sell advertising space on school buses and provides the local school system with over half of the ad revenue.

The 10-month campaign aligned with school schedules to place the kid-friendly beef ads on

buses. The TBIC focused on high population, rural, elementary, and middle school routes to reach consumers with a beef message and website information. In addition to showcasing how beef snacks and meals can be part of a nutritious and fun meal plan, farmers were also able to see their Beef Checkoff dollars being used in their communities.

Several beef producers commented that they were proud beef was being promoted in their community and one of the school nutritionists shared that kids liked having burgers on their bus.

“So far, the ads have been well received,” said Valerie Bass, TBIC executive director. “The showstopping beef ads have been standouts among the traditional bus ads.”

For more information, visit www.tnbeef.org.

Helping Students and Teachers Make the Grade In its ninth year, the Arizona Beef Council’s (ABC) Beef Up the Classroom grant program allows teachers the opportunity to use beef in their culinary or agriculture classes.

Inventive teachers use this program to teach students about cuts of beef, beef’s nutritional benefits, and to encourage more cooking at home with their families.

In the 2019-2020 school year, 788 students and teachers were reached with this grant program, and grants have been extended into the 20202021 academic year. As classrooms turned to remote learning in the spring of 2020, ABC continued to serve as a trusted resource for Arizona teachers by providing free, downloadable lesson plans and email reminders about beef information. Grant funding is provided by the Arizona Cattle Industry Research and Education Foundation.

Arizona’s Summer Ag Institute (SAI) was held virtually in June 2020. Typically, a maximum of 30 teachers attend the week-long tour, however, five days of virtual tours and presentations replaced the bus

trip, and 218 educators participated in the event, with an average daily attendance of up to 200. The 2021 Institute will be offered in a hybrid format, with two days in-person and two days virtual, allowing the program to continue to provide educators with agriculture knowledge. The event is a coordinated effort among Arizona’s agriculture education groups, including the University of Arizona Cooperative Extension and Maricopa Agriculture Center, Arizona Beef Council, Arizona Farm Bureau Federation, Arizona Milk Producers, Arizona State Cowbelles, and the Arizona Departments of Education and Agriculture. Support is also provided by the Arizona Foundation for Agriculture Literacy.

For more information, visit www.arizonabeef.org.

Producers Help Those in Need When COVID-19 impacted communities across Iowa, processing options were limited and Iowans were unable to find ample supplies of protein, the beef industry united to create the Beef Up Iowa program. The Governor’s office, Iowa Department of Agriculture and Land Stewardship, Iowa Beef Industry Council, Iowa Cattlemen's Association, Iowa Cattlemen's Foundation, Iowa State University and the Iowa Food Bank Association joined together to connect Iowa beef producers with food insecure Iowans.

Students and staff at Iowa State University processed cattle from Iowa beef producers, including 4-H and FFA members, who had limited processing options due to the pandemic. Participants, primarily youth, were paid market value for their animals through private contributions.

The meat was then distributed to food bank and food pantry feeding programs across the state.

Currently, more than 450,000 servings of ground beef have been distributed through the Iowa Food

Bank Association serving nearly every county in the state. Steers were initially purchased from 4-H and FFA members from more than 25 counties in Iowa and 45 youth were involved in the program. The program is continuing in 2021, processing beef at Iowa State University and distributing the product to food insecure Iowans.

“The effort truly took a village to make this beef machine run,” said Rex Hoppes, executive director of the Iowa Beef Industry Council. “This was truly a heartwarming and meaningful project for all our groups.”

For more information, visit www.iabeef.org.

NATIONAL CATTLEMEN 15

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NEWS Websites Make Beef Information Readily Available Beef Nutrition Education Hub

professional education units by the Commission on Dietetic Registration and the American College of Sports Medicine.

Beef Research

PLANT-BASED DIETS & ALTERNATIVES Plant-based diets continued to be popular in February, with traditional media mentions rising 13% compared to January.1 Innovation in 3-D printed whole-muscle cuts like “Ribeye Steak” led to an increase of 600% in traditional and social media mentions.1

BeefNutritionEducation.org The National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, recently launched the Beef Nutrition Education Hub at www.beefnutritioneducation.org.

The Beef Nutrition Education Hub, managed by a team of nutrition scientists and registered dietitians, is an education portal tailored to support the needs of the health and nutrition community.

From evidence-based educational webinars, to podcasts featuring credentialed health experts and immersive learning experiences, health and nutrition professionals have access to a variety of complimentary resources, including many that have been approved for continuing

TRENDING IN FOOD & BEEF

Outlets like The Wall Street Journal and Yahoo!

Entertainment highlighted beef’s health advantages.1

COVID-19 IMPACTS www.BeefResearch.org Research is paramount in every decision impacting the beef industry, and NCBA has made it easier to find beef-related research, with the redesign of www.beefresearch.org.

The mission of the site is to be the source for checkoff-funded research.

The checkoff-funded research programs include Beef Safety, Human Nutrition, Product Quality, Sustainability and Market Research.

From understanding consumers perceptions of beef, to improving the pre-harvest safety, to methods to improve beef eating experiences, to building the scientific evidence proving the nutritional benefits of beef, to measuring and identifying strategies to continually improve the sustainability of beef, research is essential. The research conducted in these areas each year provides the knowledge foundation for the industry’s checkoff-funded marketing, promotion, education and information programs.

Contactless options at restaurants remain salient. In fact, mentions of delivery-only restaurants in traditional media increased 34%.

Grocery stores are also expanding contactless options. Walmart announced it makes 1.5 million grocery deliveries every week, up 700% year-over-year.2

attending the meeting for many years.

Participants this year gathered to hear the latest research results, learn about advancements in food safety monitoring and testing methodology, and to openly converse with competitors to seek solutions benefiting the entire industry. The Summit continues to be a hallmark event for the industry to gather in a non-competitive spirit and address beef safety challenges.

The first sessions focused on what the beef industry could expect in the next six months from the agencies that provide inspection and oversight to producing safe beef. Perspectives from USDA-FSIS, FDA and CDC were shared that outlined pending regulatory changes and food safety investigations that may impact beef.

Additional sessions on the first day included an update on an industrywide effort to provide guidance and resource materials for reducing foreign material and an update on potential impacts that new USDA-FSIS regulation on shiga-toxin producing E. coli (STEC) will have for beef processors that harvest, fabricate or produce ground beef or trimmings.

The second day focused on Salmonella reduction and included an overview of USDA-FSIS’ published present and future vision for Salmonella control in beef and the implications to the industry, an overview of the use of risk assessment and quantification testing that can advance public health as well as a synopsis of the laboratory methods

GOOD NEWS FOR BEEF Beef demand remains strong, shown through steady Google searches and media around beef recipes.1

SUSTAINABILITY The UN and Chatham House released a report that encouraged plant-based diets to save habitats of 17,000 species.1 Bill Gates’ recent call for synthetic beef, while not his main climate focus,3 drove a 20% increase in beef sustainability mentions in traditional media.1

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GOOD NEWS FOR BEEF Major national media outlets highlighted increased industry efficiencies and benefits of grazing cattle.1

#030921-09 National Cattlemen’s Beef Association. (2021). Traditional and social media listening dashboards. Retrieved from Meltwater: www.meltwater.com Leonard, M. (2021). Walmart says its automated supply chain is ‘ready to scale’. Grocery Dive. https://www.grocerydive.com/news/walmart-automation-fulfillment-omnichannel-robotics-distribution/595383/ Temple, J. (2021). Bill Gates: Rich nations should shift entirely to synthetic beef. MIT Technology Review. https://www.technologyreview. com/2021/02/14/1018296/bill-gates-climate-change-beef-trees-microsoft/

2021 Beef Industry Safety Summit Goes Virtual The Beef Industry Safety Summit was held virtually March 1-3, 2021. This year’s summit marked the 19th annual event conducted by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, in partnership with the Beef Industry Food Safety Council (BIFSCo). The collaboration from industry-wide stakeholders was comprehensive and the event brought together more than 240 attendees representing all sectors of the beef supply chain including producers, feedlot operators, packers, further processors, retail, foodservice, academic and government research scientists, and students all focused on improving beef safety.

Though this was the 19th year of the meeting, the Summit continues to reach a new audience in the food safety community. In a post-event survey, more than 60 percent of attendees who responded have attended the meeting fewer than five times. While the meeting reaches new attendees, the Summit also remains valuable to individuals who have been

GOOD NEWS FOR BEEF

and testing available for Salmonella.

Updates from checkoff-funded pre-harvest beef safety research projects were shared followed by a brainstorming session on research gaps, next steps and calls to action for the industry to continue the commitment to reducing Salmonella in beef.

The final day began with a session featuring short updates on topics including the need for materials outlining food safety steps for producing direct-to-consumer meals and distribution, the direction of the Partnership for Food Safety in 2021, virtual food safety audits and preparation, foreign material avoidance education efforts in BQA, new research and potential changes to antimicrobial classifications and the food safety co-existence of produce and livestock production in proximity. To close the event, two sessions addressed current and future leaders of beef safety. The sessions focused on food safety talent acquisition and retention needed to address future challenges as well as a vision for the future leadership needs of the beef industry to continue to advance beef safety.

The 20th anniversary of the Beef Industry Safety Summit is scheduled to be held in Denver, Feb. 28-March 2, 2022. Visit www.bifsco.org/safetysummit for more information.

Positive attendee feedback showed that the Beef Industry Safety Summit provided excellent value for participants.

Overall an excellent virtual experience that greatly exceeded my expectations.

Enjoyed the variety of topics, some we normally don't touch on such as acquisition and retention of food safety talent to the beef industry.

The industry panel on Salmonella... AMAZING! The dedication of an entire day to Salmonella was great and needed.

I want to acknowledge the effort to hold the conference through the pandemic. I think it went well and the effort to gather information and personnel that would interest the majority of attendees seemed successful for being virtual.

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