August 2021 - National Cattlemen by NCBA

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. AUGUST 2021 • Vol. 37, No. 11 • NCBA.org

MARKET SNAPSHOT WEEK OF 7/19/2021

CURRENT VS. LAST YEAR SOUTH CENTRAL 500-600 LB. STEERS

$171.87

$152.26

12.9%

LIVE FED STEERS

$96.36

27.4%

$122.80

CHOICE BOXED BEEF

$201.24

35.1%

$271.81

OMAHA CASH CORN

$3.13

99.8%

$6.24

IN THIS ISSUE 3

LEADERSHIP COMMENTS

ENVIRONMENT

Updates from NCBA CEO and NCBA President on policy issues and progress in D.C. and what NCBA is prioritizing. See what cattle producers are struggling with as ESA fights to keep animals on the endangered species list.

6,10,19,22

ADVOCACY

See how NCBA members are speaking up and promoting cattle as individuals and through state partnerships.

WEATHER

Where do producers stand in the coming months of heat.

MEMBERSHIP SPOTLIGHT

MARKET MATTERS

FEDERATION

Our members are changing the way we raise and market cattle.

By-Product values are improving but corn yields aren’t.

NATIONAL CATTLEMEN’S BEEF ASSOCIATION 9110 E. NICHOLS AVENUE, SUITE 300 CENTENNIAL, CO 80112

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State partners make strides in promoting beef.

Continuing to Support Animal Disease Preparedness and Protection from Foreign Animal Disease To fulfill NCBA’s mission of “serving the cattle and beef industry by improving the business climate, growing beef demand, and increasing the world’s access to beef,” it is imperative that cattle and beef producers have resources and programs available to give them flexibility and support to be better prepared for a foreign or emerging animal disease outbreak. NCBA’s cattle health policy team in Washington, D.C., is led by Allison Rivera, executive director of government affairs and includes Dr. Kathy Simmons, NCBA’s chief veterinarian, and Chase DeCoite, director of animal health and food safety policy. Together, this team focuses on issues involving cattle health and welfare, animal disease traceability, foreign animal disease preparedness, antimicrobial stewardship, animal disease research, international animal health and food safety. “Having watchdogs in D.C. handling issues for us is huge because we don’t have the time. We are too busy doing the actual cattle work and we’ve got to have someone watching out for us,” said Kansas rancher and Chair of the Cattle Health and Well Being Policy Committee Mary Ann Kniebel. One of the issue areas that has seen a lot of focus recently is foreign animal disease preparedness and response. In the 2018 Farm Bill, NCBA was able to advocate to secure funding and authorization for the first ever Farm Bill animal health provisions, which included the National Animal Vaccine and Veterinary Countermeasures Bank (NAVVCB), commonly known as the Foot-and-Mouth Disease Vaccine Bank, the National Animal Disease Preparedness and Response Program (NADPRP), and the National Animal Health Laboratory Network (NAHLN). NAVVCB is a “United States Only” vaccine bank that protects U.S. producers from the significant economic hardships arising from the introduction of FMD or other foreign animal diseases occurring on U.S. soil. The vaccine bank also gives producers a much-needed tool in their toolkit to control the spread of a foreign animal disease. “Our producers needed an FMD Bank that could provide a much-needed risk management tool so that if we ever experience an outbreak of FMD, we can mitigate the damage as quickly as possible. We need to be prepared, and this bank does just that,” said Allison Rivera, who worked diligently to get NAVVCB across the finish line in Congress. NCBA, and specifically the cattle health policy team, will continue to push for reauthorization and continued funding for the NAVVCB through the next Farm Bill which needs to be passed by Congress in 2023. NCBA Chief Veterinarian Dr. Kathy Simmons also spends

a significant amount of time working on another 2018 Farm Bill initiative, the National Animal Disease Preparedness and Response Program. This program allows U.S. Department of Agriculture Animal and Plant Health Inspection Service (USDA-APHIS) to provide funds to eligible entities to conduct high-value projects designed to mitigate the introduction and spread of foreign and emerging animal diseases that threaten U.S. agriculture. The NADPRP Consultation Board is made up of invited entities that provide advice to the program and is exempted from the rules of the Federal Advisory Committee Act (FACA). Dr. Simmons is NCBA’s representative on this board. In 2021, USDA-APHIS elected to fund projects at a level of $20 million for NADPRP and NAHLN. The 2021 project areas for foreign animal diseases include development of pointof-care diagnostic testing, vaccination planning to control outbreaks, animal movement decisions for outbreaks, and outreach and education projects on animal disease prevention, preparedness and response topics to targeted audiences. NCBA‘s cattle health team members also participate in the USDA Veterinary Services, National Training and Exercise Program to develop foreign animal disease drills and vaccination planning. NCBA actively supports continued research and funding for the prevention and control of foreign and emerging animal diseases, working closely with researchers at USDA Agricultural Research Service and USDA National Institute of Food and Agriculture. “Our biggest issue is always going to be emerging diseases. We’ve seen the havoc that’s been wrecked on other species and what’s happened to them because of all these foreign animal diseases that have come in — so we just work constantly to try to keep them out,” Kniebel said. Since 1898, the National Cattlemen’s Beef Association has worked to represent the needs of the cattle and beef industry. “The cattle health policy team continues to work hard on a slate of issues such as continuing industry success in antimicrobial stewardship and our continued work on animal disease traceability, and we look forward to continuing this work on behalf of our members who we work to support every day,” Rivera said. As an organization, NCBA understands that cattle production is an essential part of a steady food supply chain and serves as the backbone of rural economies across the United States. We are committed to protecting your ability – and the ability of generations to come – to continue the legacy of producing high-quality beef to feed an evergrowing population.

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NATIONAL CATTLEMEN 3

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Processing Capacity Key Concern in Washington By Jerry Bohn, NCBA President NCBA’s top policy focus throughout this year has been improving the business climate for cattle producers and increasing opportunities for profitability across the board. Issues like competitive markets and accurate labeling tend to get more than their share of media attention, but another topic is quickly catching up – processing capacity. Our members continue to tell us that a lack of processing capacity is a significant obstacle to their business. Depending on where you are in the country, you may be struggling to schedule a harvest date with your processor in the next several months. This bottleneck creates serious problems for our beef supply chain. We have long known that packing facilities are the squeeze point between cattle in the field and beef on the plate. Consumer demand for our product is very strong, both at home and overseas; 2021 is forecast to be a record-year for U.S. beef exports. We have the supply of live cattle to meet this demand, but a persistent lack of hook space is hurting producers’ bottom line. A recent study by Rabobank found that the cattle industry could economically accommodate an additional 5,700 hooks per day of processing capacity, or an additional 1.5 million head moving through the system per year. Unfortunately, growing our capacity to reflect that need is expensive. The average start-up cost for a beef processing facility is roughly $100,000 per hook -- meaning that someone trying to open a modest 25 head-per-day facility needs at least $2.5 million in financing just to turn on the lights. Beyond the startup costs, existing facilities face a shortage of qualified workers. Between incentives created by pandemic unemployment benefits and slower line speeds caused by social distancing protocols, the past year has heavily impacted the availability of skilled employees to harvest beef. For months now, NCBA has been working with Congress, USDA and the White House for the resources to expand processing capacity. We are proud that, in response to our efforts, the Biden administration and leaders in Congress have acted to not only increase capacity, but to do so through small, independent and local plants. You have probably heard about President Biden’s executive order, “Promoting Competition in the American Economy”. As a result of the executive order, USDA is committing $500 million to expanding processing capacity, in addition to addressing the accuracy of the “Product of the USA” label and launching rulemakings to support fair, transparent and competitive markets. USDA also announced that it will make over $150 million in grants available to small and local processing facilities to help them expand capacity, recover from COVID-19

challenges, and compete with the Big Four in the marketplace. At the end of June, NCBA secured the introduction of the bipartisan Butcher Block Act in the U.S. House. The legislation would establish a loan program through USDA that would support small, regional and independent processing facilities. This bill still has a long way to go before it becomes law, but NCBA is working every day to garner bipartisan support on both sides of the Capitol and advance this legislation to the president’s desk. Earlier in June, USDA announced the creation of two new, competitive grant funding opportunities for small, regional, and independent meat processors using funds NCBA fought hard to secure at the end of last year. Of those funds, $55.2 million will go toward the critical need for greater beef processing capacity. The grant program will support small facilities making improvements to achieve a Federal Grant of Inspection or to operate under their state’s Cooperative Interstate Shipment program. These grants are another important win for beef producers and NCBA is thankful to see USDA respond to our repeated pushes with rapid interest in the processing capacity issue. Many of these efforts rely on increasing the number of processing facilities available, but processors still face a critical shortage of skilled workers. In a letter to the leaders of the House and Senate Agriculture Committees, NCBA backed reforms to the H-2A temporary visa program to include yearround workers. Currently, the program only allows farms and ranches to hire immigrant workers for temporary or seasonal jobs. What works for seasonal farmers, like row crop producers, does not meet the needs of a year-round industry like livestock. NCBA continues to urge Congress to expand this program and provide the necessary employment flexibility to producers and processors. I’m highlighting these successes — the executive order, the Butcher Block Act and the USDA grants — because I want you to know that NCBA’s aroundthe-clock work has led to real progress for producers in every segment of the supply chain. The current situation is unsustainable and increasing hook space is an essential step toward producers gaining back the leverage to receive higher live cattle prices. “Black swan” events like the COVID-19 pandemic and the 2019 fire at a Tyson Foods plan in Holcomb, Kan., have underscored this urgent need, but the roots of the problem precede either of those events. At the end of the day, our goal is simple: boost your bottom line and keep Americans well-fed with beef. NCBA works every day to make sure your interests are protected in Washington. We will continue the pressure on lawmakers to help expand processing capacity, and we hope that by doing so, we will alleviate a critical chokepoint and get more U.S. beef onto the plates of consumers in the U.S. and around the world.

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 Editor

John Robinson Jill Johnson Sarah Drown

Death and Taxes By Colin Woodall, NCBA CEO Benjamin Franklin is the most wellknown source of the line that the only two certainties in life are death and taxes, and here in the United States, being taxed upon your death is a battle we still fight. NCBA has been the leader among agriculture groups in working to protect cattle producers from harmful tax policy. Over thirty years ago, NCBA helped form the Family Business Estate Tax Coalition to actively fight these burdens. We also helped coin the term “Death Tax” to get the attention of Congress on what the estate tax truly is. Over the years, we have been successful at making the Death Tax less of a burden and even achieved one full year of repeal. Like every policy issue, however, each new Congress and presidential administration wants to tackle the issue again. There are several bills in Congress that will directly impact you, your family, and your operation. The Sensible Taxation and Equity Promotion (STEP) Act sponsored

to sustainability. We cannot be that solution if we have to sell off portions of our operations to settle our tax debt. The President’s tax approach is completely counter to his climate goals. If we must sell our land, it is doubtful the next owner will put cows on it. For those of you close to urban areas, you can guarantee that the next crop growing on that land will be houses, and that will be the last crop it grows. Fortunately, we have Democrats and Republicans who see the folly in this approach and are helping us by speaking out against these proposals and introducing their own legislation to help protect us. NCBA will continue to lead the charge in fighting against additional tax burdens. When it comes to generational transfer of your operation, it is more than just a discussion about Federal tax policy. It is a discussion about taking proactive steps in developing your plans and expressing your wishes with your family. It is not a conversation anybody really wants to have, and that is why so many times the conversation takes place after it is too late. As someone who is going through a generational transfer, I am learning It is a discussion about taking proactive steps in these lessons firsthand. I developing your plans and expressing your wishes have heard with your family. It is not a conversation anybody presentation after really wants to have, and that is why so many times presentation the conversation takes place after it is too late. at cattlemen’s meetings about the need to plan early. I thought by Senator Chris Van Hollen from I still had plenty of time to talk about Maryland would eliminate the the future, but that ended up not stepped-up basis. Senator Bernie being the case. While my family had Sanders For the 99.5 Percent Act done quite a bit of planning to ensure would decrease the Death Tax the transition, I found I had not asked exemption to $3.5 million per person enough questions nor gained enough or $7 million per couple. With the understanding of the plan. Now I am current COVID land rush we are paying our attorney more money to seeing across the country, you do not protect the continuity of our operation. have to own a very large operation to have assets in excess of $3.5 That is money I could be putting million. The Agriculture and Food towards improvement of the land had I Policy Center at Texas A&M analyzed just not procrastinated. the impact of these bills by using I have full faith in our NCBA team’s their database of 94 representative success in protecting you from tax farms in 30 states. If both pieces of increases, but generational transfer is legislation passed to fund President about more than the taxes. I implore Biden’s initiatives, 92 of the 94 you to finish this fact-filled edition of representative farms would incur National Cattlemen and then gather additional tax liabilities of $1.43 million your family together and have the per farm at the time of generational dreaded talk. It probably will not be transfer. Most operations do not have fun or comfortable, but you must do that kind of cash to pay anything it for the sake of your operation’s close to that in taxes. future. Now, like many of you, I am The President has made it clear challenged with making a commercial that climate change is one of his cow-calf operation work, but first, top priorities, and I have written it is off to invest in a new chainsaw many times in this column about because I have a lot of cedar trees to how farming and ranching are a part of the solution when it comes get rid of.

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Contact NCBA: 9110 E. Nichols Ave., Suite 300, Centennial, CO 80112 (303-694-0305); Washington D.C.: 1275 Pennsylvania Ave. N.W., Suite 801, Washington, D.C. 20004 (202-347-0228). 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 any advertising promoting third-party lawsuits that have not been endorsed by the board of directors. ©2021 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or part, without the prior written consent of the National Cattlemen’s Beef Association.

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NATIONAL CATTLEMEN

ESA Implementation Creates Ongoing Battleground for Ranchers Cattle producers will sacrifice time, money, safety, and sleep to make sure that each one of their cattle is healthy and well-cared for. The needs of their herd always come first — but there’s a fluctuating list of other animals jockeying for attention as well. Wildlife conservation and management is an ever-present concern for operations across the country, and with a new administration underway, many producers have renewed questions about how the implementation and enforcement of the Endangered Species Act (ESA) may impact them. Codified in law nearly 50 years ago, the ESA was intended to provide an avenue for identifying species at risk of extinction and funding the tools to recover them. This critical and worthwhile mission, however, has grown less and less effective over the years. When the ESA passed, four distinct phases — identification of at-risk species, listing as “threatened” or “endangered,” recovery efforts to repopulate the species, and delisting when the species is fully recovered — were all equally important parts of the process to protect America’s wildlife. Since then, out of 1,660 species listed as “threatened” or “endangered,” less than 3percent have achieved recovery and delisting under the law. Failure to develop recovery plans, unclear or constantlychanging population targets, and inefficient procedures within the U.S. Fish and Wildlife Service (USFWS) have caused species to languish on the list long after USFWS has publicly declared them as recovered. This wastes time and prevents limited taxpayer funds from going to the animals that truly need help and protection. “The ESA was enacted with the clear directive that once a species is determined to be recovered, it should be delisted and responsibility for managing the species should revert back to states,” said NCBA Executive Director of Natural Resources Kaitlynn Glover. “The fact that this so rarely happens under ESA is an indication of how far this law has strayed from its original intent. The lack of delisting does not reflect the good work and success we’re seeing on the ground.” The flaws with the ESA are not just a matter of bureaucratic inefficiency – they have real consequences for cattle country. The law has often been used as a tool by extreme activist groups to block activities and management practices that have an outsized impact on farmers, ranchers and their lands.

“Rural Americans and livestock producers live with the consequences of ESA decisions, but their voices are cut out of the process. When decisions are made by people with a removed or nonexistent perspective on working these lands, managing this habitat day in and day out, the decisions rarely work in tandem with the significant investments ranchers are already making to protect wildlife species,” Glover said.

“Work with communities to achieve lasting success. Listen to their firsthand experiences with these lands and these species. Stop continually moving the goal post and exploiting the ESA as a long-term management tool when that responsibility clearly lies with state and local teams who are closer to the issue.”

No recourse when apex predators claim cattle

In March, USFWS recommended that grizzly bears remain listed as “threatened” under the ESA, despite a five-year assessment that found robust, recovered populations of bears across the entire species range. The announcement leaves the door open for future reintroduction of the species in the North Cascades ecosystem — a

Liesa Priddy knows firsthand how badly ESA implementation can go awry when the needs of the agricultural community are ignored. Priddy, who is the third-generation operator of a commercial cow-calf ranch in Florida, has long worked to implement best practices on her land that cut down on invasive vegetation, improve the flow of water across the property, and conserve wildlife habitat. She went back to school to earn a

move that would directly contradict years of input from local communities. The National Cattlemen’s Beef Association (NCBA) joined with the Public Lands Council (PLC) in immediately announcing their opposition. “The announcement is a perfect example of how the voices of local officials, rural towns, and cattle ranchers get dismissed by USFWS, and that is why NCBA is so determined to continue engaging and fighting on this issue,” Glover said. “The announcement disregards communities who have done everything right to support the wildly successful recovery of grizzly bears, even when that work came at great personal, financial cost.” What does NCBA want to see done differently? Glover is crystal clear.

degree in environmental studies. “I served six years on the board of the Fish and Wildlife Conservation Commission,” Priddy explained. “I was appointed by the governor because I expressed an interest in being able to represent agricultural producers like myself, that not only had ESA issues but had that interest in habitat conservation.” Her work exemplifies the old adage that farmers and ranchers are the original conservationists. “If you don’t take care of the land, it’s not going to support the growing of your product, whether that’s a plant product or livestock,” she said. Unfortunately, Priddy’s work — like thousands of ranchers across the country — has been impeded by

No voice in the process

the ESA more often than it has been supported. “The ESA has been very restrictive. The most visible animal we deal with on our property is the Florida panther,” Priddy said. “There’s really no workable compensation program for ranchers who lose animals to panthers. When you have a big apex predator like a big cat, that’s a lot more difficult to deal with.” Priddy estimates that she loses as much as 10 percent of her calves each year to panthers. “There’s really nothing that we’ve been able to do,” she said. Priddy has participated in research projects with the University of Florida and Naples Zoo by introducing different breeds into her existing herd that are supposed to be more protective of their calves against predators. So far, she’s seen little to no improvement. On the other side of the United States, producers grapple with similar losses to the gray wolf. NCBA has been leading the fight in court to have the gray wolf – a recovered species – delisted under the ESA. In supporting documents to NCBA’s court case, cattle producer Joe Wilebski of Minnesota said that he lost 26 calves to wolf attacks in a single year, and more cattle were permanently maimed. “In addition to the outright killing and maiming of calves, gray wolves have a stressing effect on my remaining cattle that reduces their economic viability,” Wilebski stated. “Waking up in the morning, I often wonder how many cattle are dead or missing due to gray wolf depredation. It has been a nightmare.” So where are cattle producers supposed to go from here? How can predator species be recovered in a way that doesn’t destroy the livelihood of farmers and ranchers? Priddy believes financial compensation is crucial. “Right now, my thoughts are to pursue two avenues — one is to try and [raise this issue with] some of the higher levels of [Farm Service Administration] management under the new administration, see if there’s any room there for improvement. And the other is to talk about, spread the word about, the need for payment for ecosystem services. I think there is a much more transparent program we need to have for landowners to take advantage of,” Priddy said. She envisions a program that repurposes Livestock Indemnity Program (LIP) funds to pay landowners

CORPORATE MEMBERSHIP DIRECTORY

These are companies that have teamed with NCBA as corporate 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 corporate members with NCBA (securing premium booth placement at the annual convention and trade show as well as other membership benefits), please call the Corporate Relations team at 303-694-0305.

GOLD LEVEL SPONSORS (Minimum $100,000 Investment)

Animal Health International www.animalhealthinternational.com Boehringer Ingelheim Animal Health Inc. www.bi-vetmedica.com/species/cattle.html Caterpillar www.cat.com Central Life Sciences www.centrallifesciences.com

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NATIONAL CATTLEMEN 5

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a set amount per acre based on the type of habitat they are conserving and providing for endangered species. She says this would be much more workable for producers than the current system of paying compensation per calf lost. When dealing with predators like panthers, calves that are taken can be impossible to track or visualize after-the-fact, and producers are almost always underpaid for the true number of animals killed. “It’s not a brand new idea, there’s a lot of supporters for it,” Priddy said. “It would just be a lot more beneficial

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to landowners that have habitat for endangered species.”

Success through voluntary conservation efforts Despite challenges with implementation, the majority of cattle producers are not opposed wholesale to the intent behind the ESA. Indeed, cattle farmers and ranchers have long been the ones on the ground, implementing management strategies and investing in improvements to their land that benefit livestock, native plant species and wildlife alike. This long

heritage of voluntary conservation work is something that NCBA would like to see better encouraged and incentivized by the ESA. “The ESA should be updated to voluntary conservation, not punish the same people who are investing the most in those species and the habitat they live on,” Glover said. NCBA’s member-approved policy stance is that the ESA should be improved to ensure the agency weighs all appropriate factors in listing decisions – including economic and ecological data – to incentivize voluntary conservation, increase coordination among land managers at all levels, require specific recovery goals, and ensure that, once recovered, a species can be efficiently delisted. A perfect case study for the importance of that voluntary buy-in from producers is the lesser prairie chicken. In May, USFWS announced that they would be listing the lesser prairie chicken under the ESA. One population segment was designated as “threatened” and other as “endangered”. Under an ESA designation, producers can face financial penalties or even jail time for making improvements to their land and wildlife habitat with a federal permit. The designation of the prairie chicken directly disincentivizes the continuation of a successful, decadeslong conservation partnership between public entities, private landowners and local conservation advocates. 95 percent of the lesser prairie

chicken’s habitat is privately owned, making collaboration with agricultural producers pivotal to the recovery of the species. “The designation tells those private landowners that their considerable private investment doesn’t count,” Glover said. “This is a terrible message to send at the very moment when the administration is seeking to enlist our industry’s help with a broad slew of conservation goals that can only succeed with strong public-private partnerships.” By USFWS’s own admission, millions of acres of land have been enrolled in voluntary conservation measures across the lesser prairie chicken’s range.

The path forward The road ahead is not without challenges. ESA reforms are necessary to encourage and incentivize voluntary conservation efforts – and NCBA will continue leading that fight. NCBA will also stay on the front line of the court battle for efficient delisting when species are fully recovered, like the gray wolf. From coast to coast, American cattle producers share a deep commitment to wildlife conservation and the health of the ecosystems they live and work in. Farmers and ranchers think not just in terms of seasons or years, but in generations. Investing in wildlife conservation helps ensure that healthy, balanced landscapes and iconic American wildlife are around for children and grandchildren to enjoy.

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NATIONAL CATTLEMEN

Finding Common Ground: Becoming a Beef Advocate Even before a consumer approaches the meat case at the grocery store, questions about price, taste, nutrition, and sustainability swirl. Consumers are bombarded with advertisements, slogans, and information at every turn, often with conflicting messages. So, how does someone make purchasing decisions when they do not know who to trust for accurate information about the products they are buying? Unlike 150 years ago when most families lived an agrarian lifestyle, today fewer than two percent of the U.S. population resides on a farm or ranch. These changes have resulted in a large gap between where food is produced and where it is consumed. In the past year alone, the beef community has faced new issues and challenges from special interest groups that leveraged the COVID-19 pandemic to shed light on their goal of ending animal agriculture, as we know it. Now more than ever, it is vital for producers, consumers, and all engaged members of the agriculture community to share their stories, instead of relying on someone else to do it for them. Whether you are new to advocacy or a seasoned veteran, everyone has a story to share, and a foundation to becoming a powerful voice for beef. Advocacy is for anyone in support of an idea or a cause. In the case of the beef community, advocates promote a lifestyle that raises a wholesome, nutritious product that is sustainable as producers seek to constantly improve their conservationist methods to care for their animals and the land. Producers across the United States have been joining the conversation and engaging in critical discussions surrounding the beef community, backing their beliefs and systems of thought through social media, writing editorial pieces, posting live videos, or continuing their education through programs such as Masters of Beef Advocacy (MBA). The MBA program, managed by National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, started in 2009, and to-date there are more than 19,000 graduates. The MBA program consists of five modules: • The Beef Community - Context of raising beef from pasture to plate focusing on the community of people involved throughout the beef lifecycle. • Raising Cattle on Grass - An introduction to the first step in the beef lifecycle and the many benefits of raising cattle on our country’s vast grass pasture resources. • Life in the Feedyard - A discussion on the role of feedyards, including animal care, nutrition, and environmental stewardship, at this important step in the beef lifecycle. • From Cattle to Beef - An in-depth look at the slaughter process and the humane handling and safety measures in place at today’s beef processing facilities. • Beef. It’s What’s For Dinner. - A primer on choosing and cooking the right cuts of beef and the important role of beef in a healthful diet. Once all modules are completed, graduates gain access to a variety of continuing education resources ranging from online courses that delve deeper into specific topics such as beef sustainability and nutrition, to in-person top advocate training, and more. Graduates are also invited to join the Masters of Beef Advocacy Alumni Facebook group, a virtual community for MBA graduates to ask questions and get connected to the latest advocacy resources.

Recently, the MBA program launched MBA NextGen, an updated version of online training modules. The refreshed training makes it easier than ever for a new generation of farmers and ranchers to share their stories and advocate knowledgeably for the beef industry. Updated information and resources are accessible with the click of a mouse to help answer consumer questions. The MBA program continues to be a free, self-guided online course that provides farmers, ranchers, service providers, students, consumers, and all members of the beef community the tools and resources necessary to effectively answer tough questions about consuming beef and raising cattle. Taking your first step into the advocacy arena can be intimidating. However, starting your journey as a beef advocate has never been easier, with programs such as MBA available to help you gain the knowledge necessary to begin sharing your story. During the time spent completing the MBA program, you will develop valuable techniques and skills to build relationships both in-person and online, to better communicate a powerful story about beef. The MBA program will help you rethink the value of your story and share updated talking points to help you keep beef front and center during all your conversations. When asked about the benefits of advocacy, Paul Dybedahl, Manager of Masters of Beef Advocacy, commented, “The MBA program is one of the most effective tools we have to teach a wide audience the core principles of the cattle industry and has been a tremendous asset in our efforts to better inform consumers and thought leaders about our industry. Whether you’re from a family of ranchers or a consumer simply wanting to know more about how that delicious beef dinner got on your plate – MBA NextGen can arm you with the information you need to be a strong advocate for the beef community and communicate with interested consumers.” If you are interested in becoming a beef advocate or learning more about the beef community, you can apply for the MBA program by visiting MastersofBeefAdvocacy.com. After submitting a short application, you will be admitted into the program and can access modules, which take approximately three hours to complete. To learn more about NCBA’s advocacy efforts, contact Chandler Mulvaney at cmulvaney@beef.org or Paul Dybedahl at pdybedahl@beef.org.

About the Beef Checkoff The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States may retain up to 50 cents of the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national Checkoff program, subject to USDA approval.

About NCBA, a Contractor to the Beef Checkoff The National Cattlemen’s Beef Association (NCBA) is a contractor to the Beef Checkoff Program. The Beef Checkoff Program is administered by the Cattlemen’s Beef Board, with oversight provided by the U.S. Department of Agriculture.

ADVOCACY POCKE

T GUIDE

BRIDGE

PREPAR E

COMMUNIT

SAFEGUAR

EF ADVOCACY

ABOUT MASTERS OF BE

A) is your go-to program for Masters of Beef Advocacy(MB f a strong advocate for the bee training and resources to be nity mu MBA graduates, join a com community. With over 19,000 on ak spe to ed par pre and nate of advocates who are passio n by completing your certificatio behalf of the beef industry, d ize pocket-guide can be util online, today! This advocacy ing and walks of life. Refer to talk by advocates at all stages ing rov use as a notebook for imp points, develop goals, and ce our res te. Our team hopes this your story as a beef advoca ns stio que and ready for any tough will help keep you prepared ing ent res y be placed in when rep or difficult situation you ma ct our team by emailing the beef community. Conta ocacy.com MBA@MastersOfBeefAdv

TABLE OF CONTENTS

.........2 ONS........................................... CULTIVATING CONVERSATI ....3-4 .................................................. 5 WAYS TO ENGATE TODAY... ........5-7 .................................................. HOT BUTTON ISSUES........ ........9-10 ADVOCATES......................... PROGRAMS FOR ALL BEEF

To obtain a limited edition, MBA Advocacy Pock et-Guide, come see the NCBA beef advocacy tea m. August 10th | 4:30 -5:30p.m. Located at NCBA Bo oth #508 August 11th | 4:00 -5:00 p.m. Located at NCBA bo oth #508

August 11th | 5:30-7 :30 p.m. Masters of Beef Ad vocacy (MBA) Alumni Reception Located in Delta Is land ABC. August 12th | 3:00 -4:00 p.m. Located at NCBA bo oth #508

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Summer 2021, Devastatingly Hot for Western States and the Corn Belt By Matt Makens, Atmospheric Scientist The first part of summer 2021 was a scorcher across the Western U.S., and that heat spread to the Upper Midwest at times, too. As we look forward and discuss temperatures to close out the rest of this summer and into fall, let us first begin looking at the heat experienced in the West, as it will serve as a guide for the outlook going forward. Overall, the first half of summer was five to ten degrees warmer than average for pretty much all the Western U.S. and for the Northern Plains, too. Meanwhile, across the Southern Plains and the Southeast, temperatures were between average to five degrees cooler than average. June was the hottest on record (127 years) for five western states: Arizona, California, Idaho, Nevada and Utah. Those in their top 10 percent of warmest Junes included all the Western U.S., Northern Plains, Upper Midwest, Great Lakes and New England states. Nearly 300 all-time hottest temperatures were recorded in June. The vast majority of those were measured in the Pacific Northwest. However, many of these records did occur from the Desert Southwest over the Four Corners region into the Central and Northern Rockies. Some were even measured in North Dakota and Minnesota. Of those, the hottest temperature in June was 120 degrees which was measured at two locations — the Hayfield Pumping Plant in California and Wikiup, Ariz. Other extreme temperature reports came from Portland, Ore., which hit a record high of 116 degrees and Seattle, Wash., set an all-time high temperature record of 108 degrees. As the June heat continued into July, significant heat-related issues were ever-present: wildfires, thinning herds, crop degradation, decreased surface water and soil moisture. Corn conditions worsened from June into July in the Northern High Plains and portions of the Corn Belt. Temperatures obviously are critical for a large swath of the Corn Belt where yield is sure to have impacts due to the heat. In other

The map above shows you those sites that recorded their all-time hottest temperature. crops, spring wheat conditions in late June into July were the worst of any year in more than 20 years. Although related, heat is not the only factor – these regions have been increasingly hard hit with drought, too. I have previously discussed in National Cattlemen and Cattlemen to Cattlemen on RFD-TV the moisture issues for large portions of the hay and corn areas; the moisture outlook remains poor and will be a focus in the next issue of this newspaper. For this article, let us focus on temperatures. It has clearly been an unusually hot summer across the West and Northern Plains, with that recap in mind. There are several reasons for this heat, which are considerations for the forecast. Over the extended period, the weather pattern that initiated the drought and its rapid growth across the West remains stuck in the routine, leading to continued dryness. Drought will create hotter conditions by the very nature that dry air gets

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hotter. So, classically a significant drought will produce significant temperature extremes until moisture returns, improving soil conditions and providing humidity to help keep temperatures cooler. Over short-term periods, we have tracked a jet stream that has repeatedly blown from Alaska and Northwestern Canada, diving toward the Central U.S. and southward into Texas. We saw this in February, which led to the extreme cold for the Central and Southern Plains. Now, the Southern Plains have had a cooler summer than much of the rest of the country. Plus, we see the impact of having that same jet stream position allow lots of heat to build over the Western and Northern U.S. Until the ocean-atmosphere pattern changes to cause a lasting shift to the jet stream, we are likely to see this trend play out for some time. You may recall previous discussions about La Niña and how that phenomenon perpetrated much of the

drought and heat situation (there is also a related feature in the Northern Pacific - the PDO - that has influenced the U.S. in conjunction with La Niña). La Niña weakened late in the spring and early this summer; however, I still believe we will have a La Niña impact return for the fall and throughout the winter ahead. As that forecast plays out in a very general, “what does La Niña usually do?” sense, you will notice hotter than average areas remain across the Western U.S. We may see cooler than average areas playout for the Southern Plains to the Great Lakes, and that can include parts of the Corn Belt. There is a problem with that assumption of being a typical La Niña—the drought’s grip on the Northern High Plains. Drought conditions are likely to keep temperatures warmer than average across the West, Northern High Plains and much of the Corn Belt. Again, drought creates a regional climate that supports hotter

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www.NCBA.org temperatures due to low humidity and lack of soil moisture. So, just to have that infamous La Niña is not likely to create a cooler change to the corn areas this fall. However, if La Niña (and other factors in the Pacific and Atlantic) comes together in just the right way starting late this year, we will eventually see that cooler impact on the High Plains, Corn Belt, Upper Midwest and Great Lakes but that is likely after the growing season. With that said, let us look at my forecast for temperatures through October, a period where the drought is the leading player in the temperature outlook. As just alluded to, months beyond October will be increasingly impacted by the potential growth and ultimate strength of La Niña. Typically, summer and early fall have a lower impact created by La Niña. That influence gets stronger from late fall through winter and into spring. Should La Niña indeed take a firm hold by late fall, we will see the temperature pattern impacted. Rather

than heat for the Northern Plains and much of the Corn Belt, we turn to a colder than average pattern in these areas. The potential exists for wintertime extreme cold to move into the Central U.S., as we saw early in 2021. A strong enough La Niña can also spread wet and cool conditions to the Pacific Northwest – however, considering the last year, I will be surprised to see much of a rapid change to this part of the country. The odds are dry and warm conditions continue for the Southwestern U.S. as well. This all leads me to expect the drought across the West and Northern Plains to continue to be a factor through the end of the year resulting in unusual warmth for much of that period. There is not much to change the drought situation as we have seen it this summer. From a producer’s standpoint, a La Niña repeat is not good news for 2022 in terms of the related temperatures and drought. We have not ‘beat the heat’ yet.

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NCBA Region lll Report By Mike Landuyt, Minn. Region III Policy Vice President Region III is comprised of the states of Iowa, Illinois, Minnesota, Missouri and Wisconsin. Region III is proud to have Don Schiefelbein from Minnesota serving as NCBA President-Elect. The Iowa Cattlemen’s Association has been busy conducting and planning for various programs. A highlight for May was a visit from the new Environmental Protection Agency (EPA) Administrator, Michael Reagan, who spent time with past Environmental Stewardship Award Program participants Dave Petty and Bill Couser. In June, the association hit the halfway point in the yearlong Young Cattlemen’s Leadership Program as participants completed the third of six scheduled sessions. Another event that is a mainstay in non-pandemic years is the Carcass Challenge – this year more than 125 producers, businesses and county cattlemen’s organizations and Iowa breed associations donated 74 steers for the competition. The association is now preparing for the 39th Annual Governor’s Charity Steer Show in August. This event raises funds for the Ronald McDonald House Charities of Iowa. The Iowa Beef Industry Council is a co-host for the event that raised $250,000 last year.

Illinois Beef Association IBA has completed a survey of the state’s cattle producers this summer to gather input and perspective on market discovery and transparency concerns in the fat cattle marketplace. The statewide poll collected input from members with cattle on feed, to inform board policy discussion and delegate participation in NCBA’s summer business session in Nashville.  The IBA leadership has also worked at the state level to connect with the new leadership in the Illinois’ General Assembly, raising awareness and

education on policy topics and regulatory challenges most impactful to the industry. Several new freshman members were elected in the state’s House and Senate last fall, including new faces on the Assembly’s agriculture committees. The Association’s new president and vice president were elected recently during the IBA Summer Conference held in Peoria. Dr. Paul Walker was selected to serve as the president, and Dave Duzan was selected for the vice president role. IBA also welcomed Jamie Martz, Kevin Rose, Cody Lowderman and Wes Hornback as new directors on the Board of Governors.  On July 13, Minnesota State Cattleman’s Association held their 40th annual summer tour hosted by the Rock Nobles Cattlemen. The tour had eight stops and approximately 1,000 participants. MSCA continues to work with MNDNR to update the states wolf management plan. As areas of the state move into the extreme drought category, MSCA is working with state and federal agencies to open governmentcontrolled land for haying and grazing. The Missouri Cattlemen’s Association is actively working to reform eminent domain laws in the state by preventing private, for-profit

lll

companies from acquiring private land for private gain. They are also clarifying which entities and agencies have legal authority to conduct inspections on farms and ranches in the state. Additionally, MCA worked to strengthen penalties for intentionally releasing feral hogs in the state. They are remaining laser focused on longterm structural changes in the beef cattle markets to bring more price discovery and transparency to the equation. MCA continues to work to meet the objectives of its three-year strategic plan for the association. MCA’s membership retention is at 88 percent and current, non-dues revenue stands at 71 percent of total revenue. The Wisconsin Cattlemen’s Association (WCA) is excited to announce the return of their annual Summer Tour. The tour was held on Saturday, June 26 and featured

three stops near Madison, Wis. The goal of the tour aligns with WCA’s mission to promote networking and education among beef producers. Wisconsin held a winter 2021 wolf hunt from Feb. 22-29, 2021, following the removal of the gray wolf from the federal Endangered Species List. WCA advocated for this early wolf hunt at both the legislative and Natural Resources Board level in January and February. The DNR has also formed a new Wolf Harvest Advisory Committee to advise the agency on wolf issues in advance of November 2021. Several farmer members are serving on this committee. Finally, the DNR has started the process to revise their wolf harvest administrative rule to incorporate updated quota and other wolf management recommendations, which are expected to be forthcoming from the new Advisory Committee.

Producers, consumers and industry partners discussed beef production and issues at Minnesota’s summer tour.

Binford Farms was one stop on the Minnesota summer tour.

The Environmental Stewardship Award winners for 2021 are Jerry Huth and Josh Scharf (Pictured with them is Matt Ludlow, President WCA).

Tour stops showcased facility designs that compliment operations production goals.

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Family Operation Opens Meat Shop During the Peak of the Pandemic Feddes family Meats began in July 2020, in the heart of the COIVD-19 pandemic. However, the Feddes family has been a member of the ranching community since 1925. Beginning with registered Herefords, the family switched to raising Red Angus cattle in 1991 and have been happy with the maternal traits and carcass performances seen in their cattle. They are now a multi-generational seedstock operation based out of Manhattan, Mont. Today, the ranch is managed by Chuck and Carol Feddes. Their son, Jake Feddes, and his wife, Alyssa, operate the ranch in Gallatin Valley. The three-generation operation also involves Jake Feddes’ children and his nephew. The valley is located at the north end of Yellowstone National Park so tourism is the largest economic activity. The Feddes family, while maintaining a ranch that calves approximately 300 cows a year, is unique in their ownership of Amsterdam Meat Shop — a stateinspected, custom processing facility in Southwest Montana.

How did Amsterdam Meat Shop start? Started in 1945, the shop was originally managed for 40 years before selling it in the 1980’s. After multiple ownerships, the shop became a state-inspected processing facility in 2015. Feddes purchased the shop in 2020 and added retail space for customers to purchase locally-sourced meat. “There are other meat shops in town, but they are not local,” Jake Feddes said. “We are the only state-inspected facility for 60 miles in any direction.”

How has Amsterdam Meat Shop changed and grown? Through the help of a state grant, Feddes says the shop has been able to increase its capacity and has nearly doubled production since they purchased it. They have increased the number of employees and currently process pork, beef, lamb, goat, alpaca and bison. “When we purchased the shop in July, it was just a meat shop,” Feddes said. “It didn’t have a retail section at all. So, when we bought it, we built on a retail store, and that is when we really started Feddes family Meats.” They used that opportunity to start marketing it as a local familyowned-multi-generational product and emphasized pasture-to-plate restaurant process and business. Additionally, the Feddes family added value to the shop by processing organic meat and practicing humane animal handling. “We go through trainings every year that teach us how to humanely handle the animals prior to processing,” Feddes said. “That has been important for people to know.” Currently, the processing facility is at maximum capacity. “We are booked out 14 months, so we are constantly trying to figure out how to be more efficient,” Feddes said.

“Maybe we will add one or two more head per week. That is the goal.”

What is next for Feddes Family Meats and Amsterdam Meat Shop? The Feddes family wanted to expand their retail section of the business, especially to areas with high tourism because consumers are willing to pay a premium for local meat. “One thing we are doing right now is that we bought a cargo trailer,” Feddes said. “We are turning it into a mobile store, with freezers, a countertop and back doors you can open up and come into our mobile store. That is our way to mitigate the economic costs of opening up a brick-and-mortar store in Bozeman.” This trailer will allow Feddes to interact with consumers and share the story of their operation with a wide variety of tourists who frequent Bozeman and the Gallatin Valley. “I have gotten to know some restaurant owners and restaurant managers [in Bozeman],” Feddes said. “I give them free product to try, and they test it out on their customers, and all of our experiences, so far, have been really good.” The owners keep coming back for more product, Feddes said. They are also starting to realize that customers are willing to pay the additional charge to have locally-grown meat on their plates. Feddes family Meat works with other, local producers to provide premiere beef to local restaurants. Feddes said they give producers 10 to 20 cents over the market price on carcasses to assist local ranchers and make the community more viable. Some of the restaurants Feddes works with have shown interest in touring their ranch and promoting the ranch to their customers. Feddes said they are eager to share their experiences on social media platforms. Many restaurants and stores in Bozeman prioritize telling the story of where their food is grown and produced. Feddes is using this as an opportunity to tell the story of sustainable practices used by cattle ranchers.

What can members of the beef industry do in the future to be more successful? As he developed relationships with local producers, consumers and restaurant owners, Feddes noticed consumers taking an increased interest in the way food is handled from farm to table. “Consumers are really interested in how we raise it and whether it comes from Montana,” Feddes said. “They want to know about antibiotics. They want to know how [cattle] are handled, if we use dogs, if we use hot shots, or all the different things that people are being misinformed about beef production.” One thing producers can do, Feddes said, is invite people to the ranch. If cattle owners are not sharing with the public how they practice sustainability—clean water, clean grass, cover crops to combat erosion—

then they are hurting themselves, Feddes said. “When talking to customers, I try to emphasize where the ranch is, how [cattle] are raised, how they are on grass, how even the grain finished ones are on grass for three-quarters of their life,” Feddes said. The art of cooking became relevant again during the pandemic, Feddes said. He said people were coming into the shop asking what a Chuck Roast is and how to cook it. “Once we started educating people on what it was and how to cook it, people loved the Chuck Roast,” Feddes said. “The last two months we have not been able to keep Cubed Steak in.” Consumers are relearning what cuts of beef are available to them, what they are used for and how to cook them. Learning and cooking new cuts is a fun process for consumers, Feddes said. Feddes also challenges producers to start direct marketing their cattle. “I think when it comes to direct-toconsumer marketing, it is important to do your homework,” Feddes said. “But it

is a great business opportunity for every producer out there.” The largest obstacle is finding a processing plant, he said. However, after that, it is easy to sell quality product. When the pandemic emptied the shelves of beef, producers had to combat the lack of meat and some producers, like the Feddes family, took their beef directly to the consumer and saw great benefits. “Consumers want to support local farmers and ranchers,” Feddes said. “Really the only way they can do that is through to direct-to-consumer marketing.”

How has the meat shop impacted the community? Amsterdam Meat Shop benefits people wanting local meat. It also provides a place for local livestock owners to sell their product and earn a premium. They are one of few facilities in Montana who process more than three species. Without Amsterdam Meat Shop, local farmers who provide a niche product would not have anywhere to process or market it, Feddes said. Education is a large part of their business. After local fairs, many 4-H members’ animals are processed at the shop and they open the doors for students to come see the hanging carcasses and cuts of meat. “We are really trying to create a family atmosphere here,” Feddes said. Feddes family Meats met consumers where they are with direct-to-consumer marketing, public education and community involvement. Along the way, they helped their fellow producers to market and sell their products locally. “If we, as producers, can go out there and teach the public and educate consumers that are removed two or three generations from the family farm or ranch it will make us more viable and will make it easier for us to stay in operation,” Feddes said. To learn more about the Feddes family or Amsterdam Meat Shop visit their website at www.amsterdammeatshop.com.

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Producer’s Perspective in Nashville “Grassroots,” “producerdriven”, “from the ground up” are all ways to describe the work during the Cattle Industry Annual Convention. It does not matter whether it is evaluating Beef Checkoff programs for FY 2022 or approving policy to include in the 2022 NCBA Policy Book, producers are in control. Below is where you will see the action happening in Nashville during the convention business meetings. All of these meetings are open to the public.

CATTLE INDUSTRY CONVENTION & NCBA TRADE SHOW CHECKOFF PROGRAMS Nasvhille | 2021

Beef Checkoff Program meetings are open to all beef producers. If you are in Nashville, do not miss the Checkoff Highlight Session, Tuesday, August 10, to hear from national contractors about work currently underway this fiscal year. The programs are a result of last year’s planning process which included producers from start to finish. Planning kicked off again in February when committee members set priorities based on the latest Beef Industry Long Range Plan. For more information on the full plan go to www.beeflongrangeplan.com. These priorities signaled to potential contractors what areas of focus they should bring forth in the form of proposals. During the Checkoff Program Committees, Wednesday, August 11, producers will score the proposed tactics submitted by contractors and relevant to their committee. These scores are then passed along to the Beef Promotion Operating Committee (BPOC) who will determine the final funding in September. Both the Checkoff Program Committees and the BPOC are made of beef producers from the Cattlemen’s Beef Board (all are appointed by the U.S. Secretary of Agriculture) and the Federation of State Beef Councils (all are representatives of a state beef council).

NCBA POLICY To lay the groundwork for Policy Committees, an update session is conducted by the NCBA Government Affairs team. The NCBA State of the Industry and D.C. Issues Update is Wednesday, August 11. The NCBA policy making process starts long before any national meeting when an idea is formulated at the state or even local level. This idea is brought forth in the form a resolution and assigned to one of seven Policy Committee Meetings, Tuesday, August 10 and Wednesday August 11. Voting in committee is done by organizations invested in NCBA’s policy division, the vast majority being state cattle organizations. The producers carrying the votes for an organization must be an NCBA member. In addition to new resolutions, every committee will review expiring policy—the policies that have been on the books for five years. Any policy passed in 2016 is up for review this year. Policies can be renewed, amended and renewed or deleted. Once a resolution passes a committee it goes before the Resolutions Committee which will review it to make sure it does not duplicate or conflict with existing policy. Every resolution that passes the Resolutions Committee will move on to the NCBA Policy Board of Directors, Thursday, August 12, for a vote. Resolutions do not become official policy until all members have the opportunity to vote via the Member Mail Ballot that will be in the September issue of this publication.

REGION MEETINGS Another set of producer-led meetings are the NCBA Region Meetings, Thursday, August 12. Each of NCBA’s seven regions has a Policy and Federation Vice President. The two vice presidents will lead the meetings which include state and national updates. Check the schedule for your region!

TUESDAY - August 10 10:00 AM

12:00 PM

NCBA Agriculture & Food Policy Committee

Canal ABC

10:00 AM

12:00 PM

NCBA Property Rights & Environmental Management Committee

Bayou CD

12:45 PM

2:45 PM

Checkoff Highlight Session

Ryman Ballroom

12:45 PM

2:45 PM

NCBA Live Cattle Marketing Committee

Canal ABC

5:00 PM

6:00 PM

NCBA Resolutions Committee

Canal D

WEDNESDAY - August 11 9:45 AM

11:15 AM

NCBA State of the Industry & D.C. Issues Update

Delta Ballroom

9:45 AM

4:00 PM

Checkoff Consumer Trust Committee

Governor's Ballroom A

9:45 AM

4:00 PM

Checkoff Domestic Marketing Com- Governor's mittee Ballroom E

9:45 AM

4:00 PM

Checkoff International Marketing Committee

Governor's Ballroom C

9:45 AM

4:00 PM

Checkoff Nutrition and Health Committee

Governor's Ballroom D

9:45 AM

4:00 PM

Checkoff Safety & Product Innovation Committee

Tennessee Ballroom A

9:45 AM

4:00 PM

Checkoff Stakeholder Engagement Committee

Tennessee Ballroom B

1:00 PM

3:00 PM

NCBA Cattle Health & Well-Being Committee

Canal ABC

1:00 PM

3:00 PM

NCBA International Trade Committee

Bayou CD

3:15 PM

6:00 PM

NCBA Federal Lands Committee

Canal ABC

3:15 PM

6:00 PM

NCBA Tax and Credit Committee

Bayou CD

THURSDAY - August 12 10:00 AM

11:00 AM

NCBA Region I Meeting

Governor's Chamber ABC

10:00 AM

11:00 AM

NCBA Region II Meeting

Governor's Ballroom AE

10:00 AM

11:00 AM

NCBA Region III Meeting

Presidential Ballroom B

10:00 AM

11:00 AM

NCBA Region IV Meeting

Governor's Ballroom B

10:00 AM

11:00 AM

NCBA Region V Meeting

Governor's Ballroom CD

10:00 AM

11:00 AM

NCBA Region VI Meeting

Governor's Chamber DE

10:00 AM

11:00 AM

NCBA Region VII Meeting

Presidential Ballroom A

1:00 PM

3:00 PM

NCBA Board of Directors (Sponsored by American Quarter Horse Association)

Presidential Ballroom CDE

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Testing New Additions to the Herd By Rosslyn Biggs, Oklahoma State University Extension Beef Cattle Veterinarian The addition of any new animal creates the potential for introduction of disease into the resident herd. One way to help prevent new disease introduction is by working with a veterinarian to develop a protocol. The protocol can specify the required testing of all new additions to the farm or ranch whether purchased, leased, or borrowed, as part of their written operational biosecurity plan. A plan for testing new additions will likely be based on a producer’s willingness to accept the risk of disease introduction combined with the known prevalence of disease, geographic origin of cattle, and the seller’s provided or guaranteed health history. It is always best for buyers to request a written health history of the prospects. Vaccination status, deworming history, reproductive evaluation and specific disease testing should be considerations. For additions of new bulls, buyers should require written documentation of a timely breeding soundness evaluation (BSE) conducted by a veterinarian

following the standards established by the Society for Theriogenology (SFT). Sampling for reproductive infectious diseases such as Tritrichomonas foetus and Campylobacter fetus should also be strongly considered for all non-virgin bulls. The addition of replacement females also requires assessment of reproductive parameters. Reproductive tract scoring may be a helpful evaluation when considering replacement heifers. If the female has been artificially inseminated or exposed to a bull, confirmation and stage of pregnancy should be determined. Testing for reproductive infectious diseases may also be warranted. Depending on pedigree, buyers of bulls and replacement females may also want DNA marker testing for heritable diseases causing genetic abnormalities. Although these diseases are not infectious, the introduction of these genetics by even a single sire or several closely related females can have a significant negative impact. Introduced infectious diseases have the potential to negatively impact the entire herd. Producers may want to discuss testing for diseases such as bovine viral diarrhea and Johne’ disease with their herd veterinarian.

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Even if a new introduction receives a clean report after testing and shipment, it is still recommended that the animal undergo a minimum two-week isolation before exposure to the resident herd as part of a

good biosecurity plan. Following the protocol developed by the herd veterinarian will help prevent the introduction of new diseases and protect the producer’s investment.

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Supporting Calves Through Weaning and Preconditioning Practices By Julia Herman, DVM, MS Beef Cattle Specialist Veterinarian, NCBA, a contractor to the Beef Checkoff A calf’s life seems simple this time of year. Calves are out in pastures with the cowherd, learning to eat grass and creep feed while having the assurance of a warm-milk meal when they want it. At every stage, nutrition, health, management and facilities will affect the productivity of the calf and its ability to rebound from stressful events. Several events in a calf’s life have the potential to become significant stressors that may impact their performance for the rest of their lives. Calving is the apparent first stressor as the calf is hitting the ground though weaning and shipping are the classic examples of stressful events in a calf’s life. Weaning occurs when calf suckling is stopped through a variety of techniques which allows the calf to transition to the next growth stage and allows the cow to begin preparing for her next calf. Weaning and shipping have many supporting factors including change in nutrition, disruption of the social bond between calf and dam, increased social stress as calves establish hierarchies within their groups, and impacts of an environment that is not familiar. It is not realistic to fully prevent all these stressors, though it is the responsibility of cattle producers to reduce calf stress by minimizing the effects of these stressors as much as possible. Addressing all these stressors in steps versus all at once may be more feasible to the operation, depending on labor. Stress is important to consider from an animal welfare perspective though it is difficult to directly measure. Appetite, immune response, and social behavior can all be negatively affected if weaning is not done appropriately, and each of these can have long lasting effects on productivity. Typically, behaviors such as walking, vocalizing, suckling attempts, and time spent lying, grazing, or eating are associated with stress. Growth performance and average daily gain can be an objective way to assess stress in animals, especially growing calves. Ideally, proper preparation of the calf through weaning and preconditioning will provide a healthy, confident calf ready to perform at the next stage of production. With drought affecting much of the country, special considerations will also be covered to manage calves and the herd when experiencing drought.

Weaning strategies All weaning strategies described below will be a stressful event that will have a negative impact on calf performance and health. It is important to find steps to minimize this stress and help the calf bounce back to normal appetite and behavior as quickly as possible. The checkoff-funded Beef Quality Assurance (BQA) program has information on low-stress handling, proper nutrition, and tips on herd health planning that will provide calves with the right foundation to handle any stressful event, including weaning. • Abrupt weaning – This involves complete separation of the calf from the dam and is often seen as ‘weaning on the truck’. Shipping at the time of weaning has shown the most risk of calves developing disease, especially Bovine Respiratory Disease (BRD), and poorer performance at the feedyard or next production stage. • Fence line weaning – Calves are separated by a fence which allows visual, auditory, and physical contact with the dam but removes the ability to suckle. Timing of this ranges between 7-14 days and will require space and a strong fence to separate the cows and calves. This technique gradually breaks the cow-calf bond which reduces stress. • Nose flaps or anti-suckling device – This is a two-stage weaning process where devices are inserted into the calf’s nose which prevents calves from comfortably nursing their dams. Calves are then completely separated a few days to a week later when the nose flaps are removed. Separation can occur

•

abruptly or combined with fence line weaning. Strategies needing more research » Transient weaning – The calf is transiently removed from contact with the dam for 24 hours on two separate occasions, prior to complete weaning via abrupt or fence line. The theory is the calf has some stress being removed from the cow but is returned to her the next day. The following removal, the calf is more comfortable with being away from the dam. » Nursing weaning – Calves are allowed to consume a milk meal prior to being separated overnight in a pen with creep feed. This is completed for up to seven days before complete separation occurs. This allows for gradual breaking of the cow-calf bond in addition to training calves to eat from a bunk. Each operation will need to assess which weaning strategy is best for their operation. It should be noted that weaning calves prior to shipping has been shown to be effective in reducing BRD, even without vaccination.1 Positive effects can be seen in periods as short as seven days, although most preconditioning programs recommend weaning at least 30 days prior to shipping.

Preconditioning advantages The USDA National Animal Health Monitoring System (NAHMS) Beef Cow-calf Study 20172 describes preconditioning as, “Practices that help a calf become ready to leave the operation of origin and that help reduce the calf’s stress when adjusting to a new location, such as a feedlot.” Preconditioning practices are becoming more popular due to both animal welfare considerations and added value to the calves when sold. Calves that are preconditioned generally transition to the feedyard with better appetites and good nutrition keeping their immune systems healthy. Typical practices, according to the NAHMS study, in a preconditioning program include: • Weaning at least 45 days prior to selling • Dehorning (if horned) • Castrating bulls • Administering appropriate vaccines (that may include at least one modified live 5-way vaccine, at least one clostridial vaccine, and potentially one Mannheimia haemolytica vaccine) • Deworming • Training the calf to eat from a feed bunk and drink from a water tank • Note that a true preconditioning program requires more than just vaccines given before weaning. Through this important growth time for the calf, it is integral to have a resource team to best care for your calves. Consultation with a nutritionist or feed company employee, extension beef specialist, or veterinarian to assist in developing a ration based on available foodstuffs is important. As the BQA program highlights, optimizing nutrition has multiple benefits including overall health of the calves and potentially better vaccine response. Preconditioned calves can benefit the seller by selling additional weight, receiving a higher market price with or without a labeled program, and maintaining healthier immune systems in calves.3 These calves have higher potential for profit in the feedlot due to stronger immune systems leading to lower risk of BRD illness and deaths, which is why they tend to sell better than calves who have not been through a preconditioning program.

Effect of drought Climate, foodstuff availability, and pasture conditions are all external factors in choosing a weaning or preconditioning strategy. This year with much of the western states in some degree of moderate to severe drought, those decisions may be coming earlier than expected. Early weaning can benefit the cow as her calories and nutrition are now staying with her, helping her maintain body condition. It can also lessen the stocking density on pastures, save forage, and allow those pastures to rest and recover better next year. Ensuring that these calves have been castrated, dehorned, branded, and vaccinated at least two weeks ahead before weaning will help alleviate some stress. If you are considering early weaning, having a plan on where and what to feed them or having a marketing plan to a stocker operation may be advantageous. Work with your herd veterinarian for advice on what plan is best for your operation. The array of decisions when choosing weaning and/or preconditioning strategies will be dependent on each operation’s individual goals, expectations, and resources. Any of these practices will require an assessment of the operation’s labor requirement, current facilities, and available feedstuffs. Working with a resource team of a beef nutritionist, extension agent, or herd veterinarian will help in making these plans and improve your herd and bottom line in the midst of a difficult season. For guidelines on calf health and nutrition management, check out the BQA Manual and other resources at bqa.org. 1 USDA National Animal Health Monitoring System 2020. Beef cow-calf management practices in the United States, 2017. https://www.aphis.usda.gov/ animal_health/nahms/beefcowcalf/downloads/beef2017/Beef2017_dr_PartI.pdf (Accessed July 17, 2021). 2 Taylor et al. 2020. Comparison of effects of four weaning methods on health and performance of beef calves. Animal (2020), 14:1, 161–170. https://doi.org/10.1017/ S1751731119001228 3 Hilton 2015. Management of Preconditioned Calves and Impacts of Preconditioning. Vet Clin Food Anim 31 (2015) 197–207. https://doi.org/10.1016/j. cvfa.2015.03.002

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Corn Acres Increase, but is it Enough? Coming into the USDA June Acreage report, average industry expectations were to see corn acres increase from the 91.1 million acres to around 94 million acres. Farmers had incentive to plant all available acres this year. Prices have been at the highest level since mid-2013 and there was plenty of opportunities to hedge in a margin. Yet, when the report was released, corn acres were only estimated to be 92.7 million acres. Over a million acres, lower than the industry expected. If acres would have been closer to 94 million, some pressure would have been reduced on yield potential. With a smaller than expected increase in acres, yield will now be the driver in the markets. In the June WASDE report, corn stocks to use was estimated at 9.2

$/bu

percent, with the 91.1 million acres and trendline yield of 179.5 bu./acre. Now to keep stocks to use steady at 9.2 percent, yield could drop 2.1 bushels, assuming no change in demand. Yet, where acres were significantly increased from a year ago are in the driest states of Minnesota, South Dakota, and North Dakota. These three states increased acres by 3.2 million from a year ago. Combined they account for 20 percent of total corn acres. So, the question of yield remains, can the eastern corn belt yield potential offset the lost yield in the northern corn belt? The next major report for the corn market will be the July WASDE. This will be the first report that yield could change, and a small downward revision may be warranted given the current crop conditions. Yet, the USDA may wait to change yield significantly. Now on to price, July is an important time in determining the yield potential and the market direction into the fall can be influenced by July weather. Current forecasts are calling for July to remain warm in the northern corn belt, with some chance of precipitation in southern Minnesota and eastern South Dakota. This would be supportive for crop development,

should it occur. If corn yield can be above the 177 bu./acre, then stocks to use has the potential to remain above 9 percent. This would suggest that December Corn Futures could have risk below $5.00 bu. in the fourth quarter. Yet, if yield risk is to the lower 170s then prices would remain well supported near current levels. Due to the uncertainty of yield, prices will

By-Product Values Improve Significantly in 2021 By Katelyn McCullock, Director Livestock Marketing Information Center July steer by-product values are at the highest value since the summer of 2015, approaching $13 per cwt. Steer by-product values have largely declined since 2014 bottoming at a weekly low of $6.71 in April of 2020. Weekly values remained under $10 per cwt from April of 2018 until the middle of March 2021. Since breaking through double digits, the weekly steer byproduct value has gained $2.66 through mid-July. USDA AMS creates a by-product value using prices and assigned weight values for steer hide, tallow, tongues, cheek meat, head meat, oxtail, hearts, lips, livers, tripe, lungs, melts, meat meal, bone meal and blood meal. Historically, the hide value represents a significant portion of the by-product value, about 31 percent in mid-July 2021. Other notable portions are bleachable tallow, representing almost 20 percent of the steer by-

$ Per Cwt. 14.00

product value, and oxtail, about 11 percent. The highest priced item in the steer by-product calculation is oxtail, which for the week ending July 9, 2021, was $612 per cwt. However, it is only weighed quarter of a pound per hundredweight. Oxtail prices have nearly doubled from last year helping support the by-product value. Steer hides have also more than doubled per piece. Other values have risen above 2020 levels. The overall steer by-product value was $5.68 per cwt higher than it was a year ago at the time of this writing. These steep price moves have happened in conjunction with the roaring back of the world economy from COVID-19. The U.S. ships the majority of by-product items to other countries, but in the case of hides and oxtails, values are much higher than pre-pandemic levels. Has the demand curve permanently shifted out? In the case of leather, we have been making the argument that leather seems to have waned as a

STEER HIDE AND OFFAL VALUE Live Animal Basis, Weekly

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preference to consumers. But at the same time, in the U.S., car sales have been very strong this year. We may still be dealing with changes related to supply chains in manufacturing as well as food chains all over the world. That makes it difficult to point to any one reason by-product values escalated as quickly as they have. Consumers may also be shifting away from more expensive animal proteins in favor of less expensive alternatives. The combination of supply chain troubles, more expensive meat cuts, and less cattle being slaughtered in the U.S. may be creating the ideal situation to see these values increase. Steer by-products are also not easily substitutable, i.e. a kidney is not as easily replaced with a liver, as a ribeye might be with a sirloin. On a per animal basis, adding more pounds to the carcass does not add more pounds of by-product. It is clear from by-product exports that the current quantity demanded is higher, but will it continue through to 2022? USDA Foreign Agricultural Service (FAS) has released data through May at the time of this writing. Variety meat exports were up 6 percent over the cumulative total last year. Whole hides increased 62 percent. On a value basis, variety meats in total through the first five months of the year were up 7 percent while whole hides increased 52 percent. Year-to-date totals have shown impressive increases, but they are also being compared to the height of the pandemic. Using the January through May data from 2019, exports of variety meats are down 4 percent, but hide totals are up 49 percent. Given the hide is the largest component of the by-product value, this strong increase is significant. The reason why, although unclear, is important.

continue to remain supported through July, and market volatility will remain. Bottom Line: The increased corn acres came in below industry expectations, and now the market will focus on yield potential. Price will likely remain elevated with a practical range of $5.50 to $6.38/bu. basis December futures through July.

If consumers once again favor leather products, the by-product value could be more supportive on fed cattle prices in the coming years than in the last five. However, if it is more of a supply chain manufacturing, or shortlived resurgence in items such as cars, hide values may once again slip lower and drag the overall by-product value down as well. Variety meats may be more at risk from high prices. Although export volumes are up compared to 2020 and 2019, the value is up only 1 percent from 2019, and may not be able to sustain further price gains without effecting quantity purchased. The U.S. exports nearly all variety meats regardless of price. Variety meats may currently be more influenced by food supply chains and other world economies strength as they are a food item rather than used in manufacturing. This could enable hides and variety meat values to move in different directions depending on the primary market driver at any given time. For now, both are seeing strong price gains, and stronger export figures.

NATIONAL CATTLEMEN 19

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NCBA Members Recognized by Beef Improvement Federation The Beef Improvement Federation (BIF) recognizes a variety of individuals within the beef industry who are pushing the boundaries to improve cattle production. They give several awards to members of the industry ranging from seedstock producers to commercial operations to ambassadors for the cattle industry. Among those recognized this year were NCBA members and owners of Cow Camp Ranch in Lost Springs, Kansas, and W&S Ranch Inc. from Smith Center, Kansas. Cow Camp Ranch was honored as the 2021 BIF Seedstock Producer of the Year at the annual symposium and convention in Des Moises, Iowa. The ranch, which began in the 1890s, is now in its fifth generation. It is owned by Kent Brunner and his son, Nolan. Brunner founded a registered cow herd in 1969 using Simmental genetics. Cow Camp Ranch became an early member of the American Simmental Association. The cow herd consists of 800 registered Simmental, Sim-Angus and Angus cows that are managed on native Flint Hills grass year-round. Crossbreeding is utilized to maximize the genetic potential of both the Simmental and Angus breeds. About 300 embryos are transferred every year, with the balance of the cow herd and replacement heifers artificially inseminated. In addition to the seedstock operation, the Brunner family owns and operates a 9,000-head commercial feedyard, managed by Kent’s brothers, Mark and Tracy Brunner. The entire Brunner family operation consists of 15,000 owned and leased acres, a large portion of which is native Flint Hills

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grazing lands. The remaining acres are devoted to hay and crop production. Also recognized at the annual symposium and convention was W&S Ranch, Inc. Awarded the BIF Commercial Producer of the Year Award, W&S Ranch is a registered Angus and commercial ranch owned by Richard Weltmer and his wife, Avis (Sprague). Weltmer served in the Korean War and founded Richard Weltmer Farms upon returning. In 1977, their sons, Kenton and Mike, returned to the ranch full-time. In 1978, the ranch’s name was transitioned from Weltmer & Sons to W&S Ranch, Inc. Weltmer’s grandson, Philip, and his wife, Jessica, returned to the ranch in 2003. W&S Ranch encompasses more than 6,000 acres of owned and leased land on which the Weltmer family runs a commercial cow herd, a small, registered Angus herd, a feedyard and a farming operation. They raise corn, soybeans and wheat. The commercial and registered cow herds consist of a total of 180 cows. All females are bred through artificial insemination (AI) using Angus or Sim-Angus genetics and are followed with Angus cleanup bulls raised by the Weltmers. The cows rotationally graze on native and summer grasses, then are placed on corn stalks. They have access to native grass during calving season and are provided supplemental feed from mid-January until breeding. W&S Ranch places an emphasis on improved genetics and profit-proven outcomes. With an openness to change, all segments of the business are continually evaluated to improve efficiency and effectiveness to maintain a viable operation for generations to come. Both W&S Ranch, Inc. and Cow Camp Ranch were nominated by the Kansas Livestock Association.

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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.

Power in Partnerships There is something fulfilling about working together toward a common goal. No one person has all the best ideas, and even the most independent thinkers and doers need others to share the workload. Partnering with other beef councils, non-profit and commodity organizations, private businesses and even consumers effectively leverages Checkoff funding, creating higher returns on investment and more powerful results. Check out how these state beef councils have realized the power in partnerships through unique programs.

Raise Your Glass to Beef The California Beef Council (CBC) partnered with products across various retail categories, including dairy and spirits, to create a five-week campaign in April and May entitled “Tacos, Tequila y Más.” CBC joined forces with the California Milk Advisory Board (CMAB) and E. & J. Gallo’s Camarena Tequila for a co-branded Cinco de Mayo promotion. The effort provided consumers with product offers and savings, recipes, videos and other taco and margarita-inspired content on a single online hub at www.TacoTimeCalifornia.com. The promotion reached consumers in major California markets including Los Angeles, San Francisco, San Diego and Sacramento. Consumers had two options for rebate offers through free cash back apps: $2 cash-back on any brand Carne Asada beef cuts 1 pound or larger through the Ibotta mobile app; or a $1 rebate on any $10 Carne Asada purchase through Checkout 51. The Ibotta rebate offer alone resulted in 1.7 million impressions and an overall redemption rate of 38.4 percent. “The beef rebate offers with both Checkout 51 and Ibotta saw high consumer engagement rates and well above national average redemption rates, which helped drive beef sales up to and over Cinco de Mayo,” said Christie Van Egmond, director of retail and foodservice marketing for the California Beef Council. Campaign partners were also

pleased with the overall results. According to the CMAB, “The results are fantastic! We know there are other drivers factored into the overall growth we’re seeing, but it reiterates why we need to be capitalizing on the Cinco de Mayo time period and partnering with relevant brands and associations to help increase the overall impact.” A representative from E. & J. Gallo commented, “Camarena Tequila and California Beef Council really are the perfect pair. Partnered with iHeartMedia, we have generated targeted impressions to drive shoppers to stores. This program was a proven success in 2021 delivering over 11.8 million impressions.” For more information, contact Annette Kassis, CBC director of consumer and brand marketing, at annette@calbeef.org or visit www.calbeef.org.

Beef Takes Flight and Hits the Track Through Unique Partnerships Virginia Beef Council (VBC) employed a non-traditional partnership this May during Beef Month to grow consumer trust in beef production. Ronald Reagan Washington National Airport (DCA) and Dulles International Airport (IAD) are both major hubs of business and international travel in the Washington, D.C. area. Pre-COVID travel numbers topped 3.7 million travelers per month, and as May marked the first day of lifted airline restrictions, passenger numbers dramatically increased nearly to normal capacity. VBC capitalized on reduced advertising rates to place sustainability video messages in the baggage claim locations on prominent large LED screens at each airport. At both locations, all travelers exited the airport through baggage claim to get to parking, rental cars, taxi and passenger pickups. Four 10-second videos highlighting producers’ conservation and sustainability practices ran on a twentyfour hour loop every five minutes for the entire month of May on a total of 36 screens in both locations. To view the videos scan the QR code. VBC also partnered with Richmond Raceway Complex in 2021 for a

States Work Together to Inspire Influencers When state beef councils work together, big things happen. On April 19, the New York Beef Council (NYBC) partnered with the Idaho Beef Council (IBC) to create an event which introduced 11 New York food and dietitian bloggers to Idaho’s ranching story. During the event, the bloggers experienced a virtual tour of the Prescott Ranch in Idaho, then with ingredients purchased in advance, they prepared the Prescott family’s Grandma Phyllis’ Finger Steak recipe together virtually. After the event, the bloggers were tasked with creating their own Finger Steak recipe and sharing it through social media channels. The goals of the project were to increase the recognition of the NYBC and IBC as the source for beef information and inspiration for beef items, flavors and taste; promote beef’s versatility and value by sharing a

unique cooking experience and regional culinary delight; provide an additional opportunity for beef to be front and center for consumers through the utilization of social influencers that would introduce a new, fun, easy and versatile food, utilizing an inexpensive cut; and provide a connection to beef and where it comes from connecting a high population region/state to a high cattle state and offering a perspective of farm versus ranch life and how family recipes connect everyone involved. This unique partnership connected high population state influencers with the beef industry in the west and provided an opportunity to engage social influencers and their followers to dispel the myths and misconceptions about the cattle industry. Participating bloggers indicated they learned a lot about the differences between ranching in New York and Idaho and enjoyed the personal engagement with the Prescott family in Idaho. Posts from the 11 bloggers on Instagram reached 178,000 and their Facebook posts reached 677,000. For more information, visit www.idbeef.org and www.nybeef.org.

year-long campaign that places beef in the winner’s circle as the top protein for summer grilling and tailgating season. Not only is Beef. It’s What’s For Dinner.® signage on display throughout the complex, a 150-foot fence in the concert venue area branded “The Pasture” displays facts about Virginia cattle production. An additional aspect of the partnership includes the first “Beef Up Your Health 10K” to be held on Aug. 28. A fun day for the entire family, participants will have the option to run in the 10K or 5K, and children ages 14 and under are invited to race in the one-mile. VBC will be on site to speak with runners about beef’s role in their healthy, active lifestyle and provide Virginia-made beef sticks as well as nutrition and beef production information. The “Beef Up Your Health 10K” kicks off the NASCAR Cup Series Playoffs which return in September. During this premiere NASCAR event, VBC will have two 30-second commercials displayed on the jumbotron highlighting Virginia beef farmers and beef as the #1 tailgating protein. Additional voice announcements will be made throughout the race as well as concession workers proudly wearing Beef. It’s What’s For Dinner. t-shirts and promoting beef menu items. For more information, visit www.vabeef.org.

NATIONAL CATTLEMEN 21

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Update on Policy from NCBA President By Jerry Bohn, NCBA President I write today to deliver a summary of a recent Regional Triggers Subgroup meeting, and to report on the results from the second quarter. The Regional Triggers Subgroup of NCBA’s Live Cattle Marketing Working Group met in Denver on July 6. These producer leaders, who were tasked with developing and implementing our Voluntary Approach to Achieve Price Discovery in the Fed Cattle Market, heard insights from economists, discussed current issues related to cattle markets, and analyzed the results of the second quarter. First and foremost, the subgroup remains committed to reaching a workable solution that improves price discovery in live cattle markets. Robust fed cattle price discovery is critical to all producers—regardless of the industry segment in which they operate. We often hear about the value of alternative marketing arrangements (AMAs) such as grids, formulas, and forward contracts. These tools have allowed producers to better manage risk and capture more value for their cattle, and NCBA supports their continued use wherever they fit the business models of our members. However, as we all know, increased use of AMAs over the years has led to a significant decline in negotiated trade. Simply put, they have worked a little too well. Just as NCBA and industry experts have warned against a total rejection of AMAs, we also know that the further we move down the road of reduced negotiation between buyers and sellers, the more risk we pose to price discovery. This loss of price discovery would have dire consequences for cattle producers, as well as our risk management tools. The benefits of AMAs cannot be allowed to come at the cost of robust price discovery. There must be a balance. That is why we continue to explore new means to encourage greater use of the cash market and negotiated grids through a voluntary framework. Using data collected under Livestock Mandatory Reporting (LMR) and published by the Agricultural Marketing Service at USDA, the subgroup found that no minor triggers were tripped in the negotiated trade volume silo during the second quarter. Thus far, we have fallen short of our goal to complete the packer participation silo. However, I am pleased to report that we have now finalized agreements with the four major packers to analyze their participation in the negotiated market from the third quarter onward. The completion of the packer participation silo brings the total number of minor triggers in our program to eight—one for each of the four cattle feeding regions analyzing negotiated trade volumes and one for each of those regions analyzing negotiated packer procurements. Resolving this critical piece of our voluntary effort will help ensure that both buyers and sellers of live cattle bear mutual responsibility for achieving robust price discovery. In the absence of confirmable packer participation data, only the negotiated trade volume silo was evaluated this quarter in accordance with our framework. As a result, a major trigger was not tripped during the second quarter of 2021. In the second quarter, we continued to see a striking level of buy-in to our voluntary framework from cattle producers. They have worked overtime to offer more cattle on a negotiated basis. In fact, due largely to the hard work of cattle feeders—particularly in the Southern Plains—we saw more negotiated market participation in the second quarter of 2021 than the first quarter. I am encouraged by the continued improvements we are seeing in negotiated trade from cattlemen and women nationwide and am confident we as an industry can continue to deliver impressive results. The same accolades cannot be given to some of the major packers. Every transaction requires both a willing seller and a willing buyer. Some packers have shown a desire to work alongside us to increase their procurements of negotiated cattle,

and we appreciate that they have did not make significant gains in the recognized the importance of price same period. High cattle supplies and discovery to the entire industry. That a shortage of adequate beef packing said, NCBA has been frustrated by the capacity have helped create a current apparent lack of urgency demonstrated market dynamic where leverage in by some of the largest purchasers of negotiations resides with the packers. fed cattle. The subgroup believes that While strategies to return leverage completing the packer participation silo to producers are outside the scope will encourage all major meatpackers to of this subgroup’s work, NCBA is be part of the solution to this problem. implementing strategies at USDA and During the subgroup’s meeting, we on Capitol Hill to increase beef packing discussed at length some of the lessons we have learned throughout I am encouraged by the continued improvements this process. First, cattle we are seeing in negotiated trade from cattlemen marketing varies substantially and women nationwide and am confident we as an from one region industry can continue to deliver impressive results. of the country to the next. In some areas, quality grades are the primary value driver. In capacity and support small-to-midsize others, it may be dressing percentage. processors. Meanwhile, the subgroup Second, it is important to will continue its work tirelessly to bring remember that price discovery and about greater price discovery. price determination are different Third, use of non-value-added things. For example, in four trading formulas, such as weighted averages, weeks during the second quarter, “cash plus” transactions, and “top of negotiated trade volumes exceeded the market” trades, neither contribute robust price discovery levels in all to price discovery nor further regions. Nevertheless, cattle prices

our objective to increase genuine negotiated trade in the market. Fourth, more research is needed to better understand both the role of competition, or packer participation, in price discovery and the industry-wide cost of reduced negotiated volumes. Sufficient data exists to quantify the dollar value of AMAs, but more academic literature is needed that quantifies AMAs impact on price. Finally, NCBA should examine LMR to determine if changes are needed to strengthen reported price information. For example, the formula bucket is a catch-all for transactions which do not meet the definitions of negotiated cash trades, negotiated grids, or contracts. Separately reporting some of the most common transaction types may provide greater price transparency. As has been said many times, there is no simple, silver-bullet solution to the challenges that are facing cattle producers in the market today. Reaching a solution that is both industry-driven and supported by sound research and science, that supports profitability for producers in every segment of the supply chain, will require transparency and nuance. The Regional Triggers Subgroup remains committed to the integrity of that process, and we encourage you to contact NCBA or your state affiliate group with questions.

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NATIONAL CATTLEMEN

Collegiate Students Are Taking Beef Knowledge to New Places The goal of the Collegiate Beef Advocacy Program (CBAP), a program sponsored by the American National CattleWomen (ANCW), is to develop beef advocates and leaders for the cattle industry. The program provides an outlet for collegiate students to use their unique strengths and talents to connect with consumers and peers to promote beef consumption.

The collegiate advocacy program matches the vision and purpose of ANCW by ensuring the selected students strengthen their leadership and communication skills, establish career networks and enhance their knowledge of the industry. This experience will assist participants in furthering their passion for beef advocacy by providing top-notch training, access to educational resources, and unique experiences. Two winners of the CBAP were selected for 2021. The winners were announced during the ANCW Annual Meetings held virtually in February, 2021. The students selected will each earn a $2,000 scholarship after the completion of their time on the team. The Collegiate Beef Advocates for 2021-2022 are Carli Eubank, from Pocasset, Okla., and Kathryn Slavick, from Mandan, N.D. Eubank is an agribusiness and agricultural communications double major with a minor in agricultural real estate appraisal at Oklahoma State University (OSU) in Stillwater. She is an active member of Sigma Alpha, a professional agricultural sorority and in 2020 she

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was recognized as the OSU Collegiate Cattlewoman of the Year. Eubank calls her family’s cow-calf operation in southwest Oklahoma home. “Serving on the CBAP team has deepened my passion for the cattle industry because of all the connections I’ve made through the program,“ Eubank said. “I love speaking with beef producers and industry professionals and learning their story. I am honored and humbled to be a voice for the industry that has given me so much gratitude and lessons, and my goal is to share that lifestyle with everyone I meet.” Slavick is an animal science and microbiology major with a minor in pre-veterinary medical sciences at North Dakota State University (NDSU) in Fargo. She currently serves as president for NDSU Collegiate Cattlewomen and is an NDSU Ag Ambassador. Slavick is the fifth generation on her family’s ranch in south-central North Dakota. “As a Collegiate Beef Advocate, I have discovered that you are never done learning,“ Slavick said. “With every CBAP training, workshop or experience, you gain more knowledge and insight into different

sectors of the industry. CBAP has exposed me to areas of the cattle industry I had not previously explored.” Eubank cherishes the time she spent learning from her mother and father on the ranch as a child. That background encouraged her to pursue a degree in agriculture and continue planting roots in the cattle industry.

Continued on page 24

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2021-2022 Collegiate Beef Advocates

Started in 1982, the Top Hand Club is NCBA’s member-driven recruitment program. Top Hand Club was developed to recognize those NCBA members who continually give their time and effort to increase the volume of NCBA’s voice in Washington, D.C. To become a Top Hand Club member, it’s as easy as counting to three. Any current NCBA member must recruit three new NCBA members. To remain in the club, members recruit two new members each subsequent year.

speaking, writing, networking and consumer communication skills so they can represent the industry professionally and deliver accurate information to their collegiate peers. During their year, the women will host a beef advocacy program on their college campus, engage in social media efforts to promote beef consumption, pursue opportunities to connect with peers by sharing the positive story of beef, and highlight the nutritional benefits of beef. They will spend a considerable amount of time traveling in their local states and across the country to experience beef events. Some of these events include their state affiliate’s conventions and ANCW’s Women in Ranching Education and Development (WIRED) seminars. The program is directed by Kristi Sproul, Continued from page 22 from Isabella, Okla. Sproul grew up in a ranching family in southeast Montana and “I believe there is no better life than on followed her family’s tradition by making the ranch,” Eubank said. “My passion for the her way to Oklahoma State University. She beef industry continues to deepen the more received her bachelor’s and master’s degrees I meet others and extend my knowledge of through the animal science department. She the industry.” is a senior external affairs coordinator for Slavick the state’s believes it second is important largest utility to have company a holistic As a Collegiate Beef Advocate, I have discovered and serves view of the that you are never done learning. With every CBAP on the Board industry of Directors to be an training, workshop or experience, you gain more effective for both advocate her county knowledge and insight into different sectors of the and CBAP cattlemen’s industry. CBAP has exposed me to areas of the cattle has helped association her gain and local industry I had not previously explored. that holistic Chamber of approach. Commerce. “I am Sproul and excited to her husband learn more raise and meet some fellow beef advocates at an commercial cattle and their daughter in upcoming WIRED event,” Slavick said. Northwest Oklahoma. The advocates are selected through The Collegiate Beef Advocacy Program an application and interview process that shows the incredible work of youth who is open to students across the country. want to see the cattle industry prosper. Applicants must meet specific requirements The program allows students from all like creating a video to explain their interest different types of cattle backgrounds, or in the program, performing advocacy events non-agriculture backgrounds, to bridge on their campus, interacting with state and the education gap between producers and local beef affiliates and many more. consumers. Once selected, the advocates will begin NCBA is proud to see new generations their year at the ANCW Annual Meetings held taking the reins to guide the cattle industry before the Annual Cattle Industry Convention into the future. and NCBA Trade Show. They will spend Although the pandemic has stifled the one year working as a team to learn how advocates’ opportunities for face-to-face to engage on various media platforms with interactions and conversations, they are still producers, consumers and peers. They have excited about the personal connections they opportunities to travel to events such as the are making from the program. Both Eubank NCBA Leadership Conference in Washington and Slavick are eager to attend the 2021 D.C., the NCBA Annual Summer Business Annual Cattle Convention and NCBA Trade Meetings, and state affiliate conventions. Show in Nashville, Tenn. The advocates receive training in public

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NEWS Summer Grilling Campaign Heating Up Summer is here, temperatures are rising, and the national Checkoff Summer Grilling campaign is in full swing. NCBA, a contractor working on behalf of the Beef Checkoff, has all the bases covered with beef grilling messages airing across a variety of advertising platforms. New Beef. It’s What’s For Dinner. ads can now be viewed on YouTube and across Smart TV channels like HGTV, Fox News, CBS, ESPN and other popular networks. And, new audio ads are also welcoming back consumers to the grill, appearing on Spotify and on a wide range of Sirius XM programming, including College Gameday, The Herd with Colin Cowherd and MLB Roundtrip. Nativo native advertising, appearing on popular websites such as Taste of Home, Saveur and Health. com, inspires consumers to build delicious and nutritious beef burgers. Google Search ads will be used to drive traffic to the Beef. It’s What’s For Dinner. Summer Grilling landing page, www. beefitswhatsfordinner.com/map, which includes beef grilling favorites and producer stories from across all 50 states. Through Labor Day, beef social platforms on

Facebook, Instagram and Twitter will publish exciting recipe content that features each state via inspiring travelogue style recipe content. While the pandemic had limited extensive travel in the U.S., the campaign inspires consumers and instills a feeling of being able to travel to each state via tasty recipes. Capping off this effort is a robust Food Network cable TV advertising buy, with over 200 Beef. It’s What’s For Dinner. ad airings, on popular shows such as BBQ Brawl: Flay v. Symon, The Kitchen and the new series, Grill of Victory. Preliminary campaign results are extremely positive, totaling more than 83 million impressions. Social media giveaways are also engaging consumers with weekly contests running through Labor Day, and to date have generated nearly 4,400 entries. Through additional state beef council funding, four state regional media campaigns have also kicked off, working to further ensure that consumers across the U.S. know that beef is, and always will be, King of the Grill!

Sustainability Continues to Be Top-of-Mind for Consumers and Producers

TRENDING IN FOOD & MEDIA

NCBA, a contractor to the Beef Checkoff, is continuing its efforts to educate consumers that cattle are part of the climate change solution, and not the problem. The campaign began in the spring and will continue into the fall through a variety of advertorials and public awareness components. The goal of the campaign is to help consumers continue to feel good about how beef is raised by highlighting the commitment of farmers and ranchers to raising beef safely, humanely and sustainably. To defend against Epicurious’ decision to no longer include beef recipes in the magazine’s properties, NCBA, on behalf of the Beef Checkoff, partnered with Food & Wine magazine to tell beef’s sustainability story. In a full-page advertorial, sustainability, nutrition and beef’s incomparable taste were

highlighted, defending beef’s rightful place at the center of the plate. Print and digital versions of a beef-centric advertorial were featured in the June issue and reached more than 913,000. Additionally, NCBA partnered with celebrity chef Lamar Moore and Dr. Tryon Wickersham, associate professor of animal nutrition at Texas A&M University, to pen opinion editorials (opeds). Moore’s op-ed, which defended beef’s rightful place in cooking and dining, was featured in LA Weekly. Dr. Wickersham’s op-ed explored the science behind and benefits of cattle’s upcycling ability and was published in the Fort Worth Star-Telegram and in Yahoo! News Canada. Both op-eds reached more than 2 million people. With financial support from the Federation of State Beef Councils,

a comprehensive public awareness campaign on sustainability was also launched for both consumers and producers. A special edition of the television show “Cattlemen to Cattlemen” was filmed at Feddes Red Angus in Manhattan, Mont., and featured a panel discussion about sustainability. Panelists included Chaley Harney, executive director of the Montana Beef Council; Dr. Tryon Wickersham; Clay Burtrum, producer and 2021 NCBA Federation Division chair; and Jake Feddes with Feddes Red Angus. Panelists discussed why sustainable practices and sharing your sustainability story are vital to the industry. The conversation also focused on how the beef community is already – and has been for decades – implementing sustainable practices and why it matters. Perhaps most importantly, panelists talked about how sustainability is profitable. The television show, which has an average monthly viewership of 1.58 million, will air on RFD-TV in September. Producer outreach was also the focus of an effort promoting sustainability through a full-page ad and editorial from Clay Burtrum. The two-page spread was placed in more than 30 publications including Successful Farming, Drovers and state affiliate and breed association magazines. This effort continues through the end of September and will reach a potential audience of nearly 3 million. The Federation-funded consumer component runs through September and will include digital, audio and print advertisements in the New York Times, The Washington Post and the Wall Street Journal, reaching a potential

SUPPLY CHAIN & PRICES Vulnerabilities in the food supply chain garnered more than 27,000 media stories and were included in outlets like The Washington Post and NBC News.1

Traditional media coverage of restaurants’ struggle with labor shortages and elevated prices increased 77%.1

SUSTAINABILITY & DROUGHT Outlets like CNN and The San Francisco Chronicle covered impacts on cattle production from drought in the West, leading to more than 16,000 mentions.1

Media mentions show sustainability continues to be a top issue, with outlets like CNBC and Bloomberg covering the topic in June.1

PLANT-BASED DIETS & ALTERNATIVES Even as mentions of plant-based diets decreased 3%, stories from outlets like Bloomberg and Yahoo! Lifestyle focused on plant-based summer cook-outs.1

Though meat alternative mentions decreased 11%, media outlets like Reuters and CNN still focused on new meat alternative products.1

#070121-11 National Cattlemen’s Beef Association. (2021). Traditional and social media listening dashboards. Retrieved from Meltwater: www.meltwater.com

audience of nearly 10 million. An annual event to “accelerate climate action,” Climate Week NYC will take place Sept. 20-26. To proactively defend against misinformation that may arise during the event, public awareness efforts will include a Times Square billboard, digital and audio components and an article in TimeOut New York. Each of these channels will feature positive information about beef’s role in a sustainable food system and cattle’s important ecosystem services. These efforts will have a potential reach of millions. Another key component of the reputation management work has been engaging consumers in major metropolitan areas throughout the country to increase awareness of beef sustainability. Each story was written by a local journalist and highlighted sustainability through the perspective of a local producer. So far, these sustainability articles have been published in Denver, Minneapolis, Seattle, Houston, Los Angeles and Philadelphia and have reached more than 2 million people. This comprehensive campaign is successfully educating consumers about the commitment beef farmers and ranchers have to conserving natural resources and protecting the environment. Farming and ranching families continue to improve the land for future generations, and the goal of these efforts is to highlight that positive work. For more information, visit www.BeefItsWhatsForDinner.com.

GOOD NEWS FOR BEEF Media mentions of beef recipes and demand trends remained strong, evidenced by 56,000 mentions.

GOOD NEWS FOR BEEF NCBA sustainability media efforts, a Beef Checkoff contractor, reached nearly 3 million people.1

GOOD NEWS FOR BEEF Dunkin’ discontinued Beyond Meat sandwiches at most locations, as covered in Yahoo! Finance.1

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