December 2021 - National Cattlemen

N A T I O N A L CATTLEMEN

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

DECEMBER 2021 • Vol. 38, No. 3 • NCBA.org

MARKET SNAPSHOT WEEK OF 11/15/2021

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

$164.00

$151.87

8.0%

LIVE FED STEERS

$109.62

19.8%

$131.35

CHOICE BOXED BEEF $286.28

$222.99

28.4%

OMAHA CASH CORN $5.64

$4.01

40.7%

IN THIS ISSUE 3

LEADERSHIP COMMENTS

4

30X30 PLAN

8

Intern Program

NCBA leaders recap successes as the holidays approach.

What’s the latest news on Biden’s 30x30 plan?

NCBA’s D.C. intern program turns out leaders for the cattle industry.

10

Weather

14

FEDERATION

15

CHECKOFF

A look into how La Niña is affecting all nine regions of the U.S. Racing towards healthier lifestyles with Team Beef.

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

PRSRT STD U.S. Postage PAID Denver, CO Permit No. 1673

Gearing up for the holidays with TV messaging and sharing stories via LTEs.

NCBA Pushes EPA to Support Clear Water Rules with Launch of WOTUS Campaign In October, NCBA launched a Waters of the United States (WOTUS) campaign aimed at developing fair, clear rules for cattle producers. While producers may have thought the WOTUS issue was behind them, court rulings and Environmental Protection Agency (EPA) announcements over the past few months have demonstrated that water rules are once again a focus in Washington, D.C. “Due to a recent court ruling that vacated the Navigable Waters Protection Rule (NWPR)—a rule that protected farmers and ranchers—the EPA is justifying the development of a new WOTUS rule,” said NCBA Chief Environmental Counsel Scott Yager. “NCBA is a leading voice urging the EPA to respect the needs of cattle producers and craft a rule that limits federal authority over common agricultural practices.”

The limits of federal water regulation have been hotly contested since passage of the Clean Water Act in 1972, involving numerous rulemakings and Supreme Court cases.

In 2015, the EPA created a widely overreaching definition that subjected nearly every water feature—including isolated features and areas that only held rainwater—to federal jurisdiction. Some of the common water features that fell under the 2015 WOTUS rule included grassed waterways, prairie potholes, rainwater, snow melt, small creeks, dry washes, drainage ditches, isolated wetlands, vernal pools, coastal prairie wetlands, pocosins, any waters within a 100-year floodplain, and any waters within 4,000 feet of a high tide line or ordinary high water mark.

“While the 2015 rule may have sounded good to a bureaucrat in Washington, it did not hold up to common sense out in the country,” Yager said. “A feature that you can step over or a field that only has water when it rains should not be regulated by the federal government.”

During the Trump administration, cattle producers saw relief from the onerous 2015 WOTUS rule with the finalization of the Navigable Waters Protection Rule (NWPR). The NWPR limited the definition of a WOTUS to substantial bodies of water, like oceans, large lakes, tributaries that run during a typical year or seasonally, and adjoining wetlands. While the NWPR was not perfect, it was substantially better than the 2015 WOTUS rule.

NCBA supported the NWPR and intervened in several court cases to uphold it before it was struck down by a U.S. District Court in Arizona.

Yager noted that the Arizona court decision created even more confusion for cattle producers who had already lived through the 2015 and 2020 rulemaking attempts.

“Immediately after the court decision, the EPA took the opportunity to apply the ruling on a nationwide scale, reverting back to the 1986 definition of WOTUS,” he said. “In the span of just over five years, cattle farmers and ranchers have experienced three different WOTUS definitions under the law.”

Even before the Arizona court decision, the Biden administration had announced their intention to repeal the Trump-era rule and create their own WOTUS definition.

“We were pleased to see cattle producers share their views with the EPA when the agency launched WOTUS listening sessions over the summer,” Yager said. “Sadly, our producers were outnumbered by activist groups who have historically favored an oversized definition of WOTUS.”

In October, the EPA announced a process for hosting regional WOTUS roundtables. The catch? Stakeholders like individual state affiliates or conservation groups were asked to propose an entire plan to the EPA for how they would host a roundtable that includes agriculture, conservation, development, water management, environmental justice and industry groups. Yager pointed out that placing the burden on stakeholders to plan the roundtable and create the guestlist is the EPA shirking responsibility.

“If you are a state cattlemen’s association, imagine trying to get environmental justice activists, conservation groups, developers and industry groups to sit at one table. These groups fundamentally oppose each other, and yet the EPA is asking ranchers and farmers to call a meeting with activists that do not believe our way of life should even exist,” Yager said.

To ensure that cattle producers’ voices are included in the WOTUS conversation, NCBA launched a multiphased campaign aimed squarely at the EPA and the Biden administration. The first phase of the plan is a sign-on letter asking EPA Administrator Michael Regan to support clean water and clear rules for cattle producers. The letter urges the EPA to focus their jurisdiction on “traditionally navigable waters,” or water one could fit a boat in, rather than the small stock ponds or ditches found on agricultural operations.

“In just three weeks, more than 1,000 cattle producers signed the letter, demonstrating their passion for this issue and sending a strong message to the EPA,” Yager said. “Our goal is to increase this number to truly show the EPA that the cattle industry is united on WOTUS.” The letter to the EPA is only the first phase of NCBA’s WOTUS campaign. NCBA is also looking for producers who are willing to discuss the good conservation work they do to protect water quality without the need for overburdensome federal regulation. NCBA is writing producer profiles that will explain to policymakers how new WOTUS rules impact long-time agricultural practices, and a personal story from a cattle farmer or rancher is extremely important for helping government officials understand that their decisions impact the livelihood of farm and ranch families.

“If you want to fight back against WOTUS, we need to hear from you,” Yager said. “I can tell policymakers every day that our industry will be impacted by their decisions.”

Joining the WOTUS fight is easy. Simply email Scott Yager (syager@beef.org) or Mary-Thomas Hart (mhart@beef.org) to discuss how you can be involved. To read and sign the WOTUS letter to the EPA, please visit NCBA.org/policy.

“NCBA has told the EPA that we need a WOTUS solution that works for cattle producers,” Yager said. “Now is the time to engage on this issue; sign our letter to the EPA, and share your story to protect not only your own operation, but the future of our industry.”

Open your smart phone camera and scan this code to sign our WOTUS letter to the EPA!

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07/2021

NATIONAL CATTLEMEN 3

www.NCBA.org

Regional Trigger Subgroup Update

Naughty or Nice?

By Colin Woodall, NCBA CEO

By Jerry Bohn, NCBA President It has been a little over a year since we first revealed the details of our voluntary framework to achieve robust price discovery in the fed cattle market.

Since then, I have written to you every few months to report our results from the preceding quarter. The third quarter took longer than usual to analyze since it was the first time we evaluated the packer participation silo, but I am now able to share our findings with you.

To briefly recap, our Regional Triggers Subgroup evaluates eight potential minor triggers—one for each of our four cattle feeding regions analyzing negotiated trade volumes and one for each of those regions analyzing negotiated packer procurements. We use data publicly available under Livestock Mandatory Reporting (LMR) to analyze the negotiated trade silo. Under agreements we reached with the four major packers earlier this year, the packer participation silo is evaluated by a neutral third party. NCBA provides the third party with the trigger thresholds and the packers provide their confidential procurement information. The third party then reports to NCBA whether or not triggers were tripped in the silo.

After reviewing the LMR data and the third party’s report, the Subgroup determined that three minor triggers were tripped during the third quarter. Each of these occurred in the packer participation silo. Under our framework, that constitutes a major trigger—the second over the course of this year.

While NCBA members are encouraged to submit legislative or regulatory ideas through their state affiliate organization, the Subgroup will continue to meet to try and identify potential solutions which may enjoy broad support. These individuals have been working extensively on this issue and represent a diverse array of the industry. I am certain their insights will be useful in helping guide the discussion at the Live Cattle Marketing Committee meeting in Houston, which is always open for any NCBA member to attend.

We should not dismiss the successes we achieved along the way. Negotiated trade volumes are up considerably this year compared to years past, particularly in the southern plains. As I have shared before, several market analysts and economists credit this uptick to the work NCBA and our state affiliates have done through this process, and I again want to thank cattle producers for answering the call to improve price discovery. Your efforts are not in vain. They are making an impact, and it is sincerely valued.

The creation of the packer participation silo is also noteworthy in and of itself.

Though we cannot compel them to change buying behaviors, getting them to provide closely guarded information to a third party was an accomplishment. Now that we have this component in place, we plan to continue evaluating the silo through the fourth quarter to see what insights it may provide. We also will continue to impress upon the packers the essential need for robust price discovery and will relentlessly reiterate their role in that process. Packers of all sizes, new and old, have a role to play, and we urge all to take it seriously.

I also firmly believe that NCBA’s close attention to this At the end of the day, we all want the issue, and use of our voice same thing: a profitable business to pass when needed, plays a role in on to our children and grandchildren. It preserving market integrity will take all of us standing together to during these volatile times.

Between the pandemic, plant ensure that happens. fires, cybersecurity breaches, labor shortages, global supply chain woes, and countless other hardships it would have So where do we go from here? Well, as been easy for some in our marketplace to we always do, we start with the policies set this issue aside for a time. We did not adopted by and voted on by you: our allow that to happen. We will not allow members. The policy which led to the that to happen going forward. We take creation of this framework and established that role very seriously. the Subgroup (M 1.10 – Fed Cattle Price I am not dismissive of the challenges Discovery) states: that lie ahead. It is serious and we have a “If the voluntary approach does lot of work to do together. But I am also not achieve robust price discovery… optimistic about our industry’s ability to and triggers are activated, NCBA will tackle it head on. As we prepare for the pursue a legislative or regulatory solution necessary discussions next February, I determined by the membership.” encourage us all to work together. At To be clear, this result does not the end of the day, we all want the same automatically change our existing thing: a profitable business to pass on position on any of the pending policy to our children and grandchildren. It will proposals in Washington, D.C. Per our take all of us standing together to ensure policy, the membership will reconvene that happens. to determine a legislative or regulatory Please do not hesitate to reach out to solution at the earliest opportunity, our staff with any questions or concerns which is through the policymaking by calling the NCBA Center for Public process held during our 2022 annual convention in Houston next February.

Policy at 202-347-0228.

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

In July or promotion. I had conversations of 2020, with a few producers who signed the a petition petition that told me they would not was started have done so had they really known by several what the referendum was going to do. individuals We are also aware of many and groups like R-CALF to call for unsavory tactics used to collect a referendum on the future of the signatures. There was one effort that Beef Checkoff. USDA initially gave put the names of those who signed the petitioners one year to collect the petition into a pot for a drawing signatures from 88,269 cattle to receive a cash prize. We heard of producers who had paid into the a similar process to draw for a pair of Checkoff during the previous year. boots. We even heard of somebody at When their time was up this past a gas station asking whoever walked July, they were woefully short on by to sign the petition. Reports of signatures. The petitioners then other actions came to us throughout asked USDA for more time and the year as our members saw the cited COVID-19 restrictions as one petition process in action. Even with of the reasons they did not have the desperate tactics, the effort did not opportunity to engage with as many produce the signatures needed. producers as they would have liked.

While we felt this was a disingenuous I see the lack of signatures as a request given their use of an online de facto referendum on the Beef petition portal, USDA nonetheless Checkoff. It was no secret in the granted their request for an additional countryside that this petition was 60 days. Due to the 30 days it took USDA to make this decision, the We did this because the Checkoff belongs petitioners to you, and we believe that you and every actually got an other cattle producer should have the right additional 90 days to collect to decide the future of this great program. signatures.

When time was finally up in October, there were not enough signatures to meet the threshold of collecting signatures. Petitioners were having 10 percent of America’s cattle at fairs, trade shows, rodeos and other producers ask for a referendum. gatherings of cattle producers. They NCBA decided early in this had the presence and tools to get the process to not fight the petition.

88,269 signatures, but ultimately did We did this because the Checkoff not because of the great programs belongs to you, and we believe that delivered by the Checkoff. The you and every other cattle producer nice list is chock-full of Checkoffshould have the right to decide the funded projects and programs being future of this great program. We delivered by State Beef Councils, the had hoped the petitioners would Federation of State Beef Councils and conduct the petition process with NCBA as one of nine contractors to integrity, but we soon found that was the national Beef Checkoff. We are not the case. They definitely make making the most of your Checkoff the naughty list because of the way investment. If you have watched they characterized the process and any holiday movies on the Hallmark some of the tactics they used to collect signatures. A referendum is Channel recently, you have seen Beef. about killing the Checkoff, but the It’s What’s For Dinner. commercials. petitioners were telling producers that Throughout the fall, Checkoff-funded it was going to be a chance to make commercials aired during college some changes to the program. That is football games on television and on absolutely not the way this works. A Sirius XM radio. Our year-long Beef. referendum simply asks if you support It’s What’s For Dinner. sustainability the continuation of the Checkoff. It campaign delivered our cattle health does not allow for any changes to be and environmental stewardship considered. Therefore, we can only message to tens of millions of deduce that the petitioners aimed consumers. We are also taking full to kill the Checkoff because why advantage of online e-commerce would you waste Checkoff dollars advertising. Our e-commerce summer to conduct a vote on a program you grilling campaign with Kroger stores want to keep? That is right, your delivered awesome results by selling Checkoff dollars would have been an additional $60 of beef for every used to conduct the vote, and USDA Checkoff dollar we used to advertise. told us it could easily be hundreds of thousands of dollars to do this. That is That is what you expect from your Checkoff, and that is why the petition hundreds of thousands of dollars that process came up short. would not go towards beef research

Contributing Writers

Creative Director Graphic Designer

Wendy White Ashley Willits Hunter Ihrman Sigrid Johannes Don Waite Dancinee Jennings

For ad sales contact Shannon Wilson 303-850-3345, or Jill DeLucero 303-850-3321.

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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4

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NATIONAL CATTLEMEN

What’s Happening With 30x30? not sealed-off environments. Healthy, thriving ecosystems are dynamic.

They require active management to respond to variables like catastrophic wildfire, invasive species, changing climate conditions and everexpanding development.”

A growing body of scientific research — not to mention decades of informal knowledge passed down generationally among farmers,

The proverbial oxygen in the room in Washington, D.C., has been totally consumed lately by President Biden’s Build Back Better Agenda and the bipartisan infrastructure package. These massive spending proposals have been a steep test of Democrats’ ability to leverage tangible wins out of power in the White House and a narrow majority in both chambers of Congress.

Amid all the frenzy, another marquee agenda item for this administration has fallen by the wayside in the mainstream media.

The 30x30 or “America the Beautiful” plan is still very much a priority for officials at the Department of Interior and USDA, and your NCBA policy team has been working persistently to hold ground and make progress for farmers and ranchers.

“One of the challenges this autumn has been making sure that the administration does not get any free passes to make unilateral changes to grazing regulations and other environmental regulations while everyone’s attention is diverted,” said NCBA Executive Director of Natural Resources Kaitlynn Glover.

“There has been a lot of focus on these Herculean spending packages, but 30x30 is still running in the background.

We’ve been monitoring the agencies’ actions on this goal constantly, and we are working to combat every proposed change that might seek to hamstring our producers and dismiss the value of their longstanding work in conservation and environmental stewardship,” she added.

Fighting For a Fair Count of the Acres Already in Play

The key? Making sure this work counts in the eyes of the Biden administration.

Producers in every corner of the country are performing valuable conservation work each day — work that not only strengthens, in many cases, the longevity of their operation but also has far-reaching benefits for the ecosystems they live and work in.

producers have led the effort to conserve land through easements, candidate conservation agreements, safe harbor agreements, and enrolling and sustaining acres in the Natural Resources Conservation Service,” LeValley said.

“We’re encouraged by these signs that the administration is hearing and understanding the value of cattle grazing,” Glover said. “There are certainly partners of ours within these agencies that see the many ways that the stewardship practices by our producers are compatible and, in fact, indispensable to the goals of 30x30.”

“That said, our optimism is distinctly cautious. There are still many avenues the administration could pursue to implement sweeping land management policies that restrict our producers’ good work,” she added.

Resurrected Fight Over Misguided Monuments

One such producer is Robbie LeValley.

LeValley represents the fourth generation of her family to ranch in western Colorado’s Delta County. In addition to her business as a cow-calf operator and part-owner of a local, direct-to-consumer processing plant, LeValley has made a strong mark in the conservation world. She has been recognized nationally for her work to revitalize critical Gunnison Sage Grouse habitat through managed grazing.

She makes an important distinction between the goal of preserving land and the goal of conserving it.

“Preservation is often viewed as passive management, allowing nature to take its course,” she said.

“Conservation, as originally proposed, was meant to be active management of the land, and it allows for changing conditions to be addressed.”

This distinction has been a central message that NCBA, the Public Lands Council and other partners in agriculture have delivered over and over again to the Biden team as they pursue the ambitious goals outlined in the “America the Beautiful” plan.

Preservation may sound great on paper, but in reality, it takes tools off the table and restricts our ability to respond nimbly and effectively to environmental changes.

“A land management philosophy that relies on preservation on some level also relies on the idea that vast landscapes can exist in a vacuum,” Glover said. “These are

ranchers and Tribal communities — supports this assertion.

“There is hard data to indicate that the grazing management that the majority of producers employ on their [federal] lands supports improved biodiversity, plant vigor and rangeland health,” said LeValley, who works on both public and private lands.

Advocating for responsible grazing as a science-driven, sustainable land management tool has been a key priority for NCBA and our partners since President Biden took office — and our persistence is showing.

In September, addressing attendees of the Public Lands Council Annual Meeting, two key administration officials admitted that public lands leased to ranchers should be counted toward the goal of 30x30.

“If we’re going to look at ways to restore and then conserve landscapes and ensure they are more climate resilient, we will need to be working on a lot of those lands with all of you,” said Nada Culver, then-acting director of the Bureau of Land Management.

Deputy Chief of the U.S. Forest Service Chris French also spoke at the event and relayed that his team is recommending to the administration that the majority of Forest Service lands be included in the 30x30 total — lands that include millions of acres grazed by livestock.

“When we look across the entire landscape of mixed ownership,

One of those potentially problematic avenues that has risen to prominence in recent months is the overly-broad application of monument designations.

In early October, the administration made the unilateral decision to put sweeping federal designations on millions of acres surrounding the Bears Ears National Monument and Grand StaircaseEscalante National Monument in Utah.

After much touting of their intent to collaborate with agricultural producers and state and local leaders, the administration moved forward with these controversial designations without a comprehensive conservation strategy — prolonging a game of political football with these lands that has been years in the making.

“Monument designations may bring the White House closer to scoring ‘conservation’ points on paper, but in reality, they lead to the kind of preservation strategies that we know from experience do not support healthy ecosystems long-term,” Glover said.

She stressed that NCBA will remain focused on hammering home the need for active management, including managed livestock grazing.

“As with any federal designation, when [30x30] was announced there was a lot of concern not only over the original designation, but also the cumulative impacts of additional restrictions on the landscape,” LeValley said.

“Additionally, producers have concerns about the vagueness and unintended consequences.”

Needless to say, while attention in Washington may whiplash back and forth between the administration’s priorities, NCBA is keeping one eye trained on 30x30 to ensure that we are proactively defending the property rights of producers and advocating for grazing as a climate and land management solution.

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.

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NOMINATE YOUR NEIGHBOR FOR THE

2022 ENVIRONMENTAL STEWARDSHIP AWARD Do you know a fellow cattlemen who is an excellent steward of the land?

Has a neighbor put outstanding environmental practices into place to better their operation?

If so, nominate them for the 2022 Environmental Stewardship Award.

For more information on how to get started, contact esap@beef.org or check out the website at www.environmentalstewardship.org

NOMINATIONS ARE DUE MARCH 11, 2022

Contact your state affiliate, NCBA staffer or sponsor representative for more information and assistance in submitting an application.

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NATIONAL CATTLEMEN

Preparing the Farm for the Next Generation

By Jordan Gottlieb Agent for New York Life Estate planning is important for farmers and ranchers because it determines who controls their estate now and after their deaths. Failing to prepare will result in the state and federal governments controlling how their assets are passed to their children.

In addition, it may result in estate taxes that may not have been owed if preparation was done. Do you want the government to control who gets what? Do you want to pay more in taxes? Probably not, so farmers and ranchers need to establish a strategy to ensure their assets are distributed according to their wishes. They need to ensure their debts are paid and decide which of the children will run the operation.

The sooner these strategies are put in place the better.

One of the most common mistakes made by farmers and ranchers when it comes to estate planning is not doing it. It can be tough to talk to children about issues like who gets what and how the operation will continue. However, these discussions need to happen.

Estate planning needs to be done to ensure that the farm or ranch continues to operate.

With proper estate planning, farm or ranch land doesn’t have to be sold to pay debts. Failure to do estate planning would be like failing to replace the tractor that keeps breaking down or selling that cow that didn’t breed back this year. It would not be good for the future.

The first step in estate planning is to establish your goals. Who gets the land? Who gets the farming or ranching operation? Are all of the children on board with these plans?

If the operations are passed to one or some of the children, what will the other children get to make it “fair”?

Get all the facts on the table when it comes to assets and liabilities. Talk with your children and get their feedback.

Without doing so, the plan may not be followed after your death.

Once goals have been established, the plan should be put in place using available tools such as wills and trusts, buy-sell agreements and different entities. The estate plan should then be updated regularly to account for marriages, divorces, land sales or additions, cattle and equipment sales

and purchases as well as taxes. If the estate plan isn’t adapted to changes, it may not have the results you wanted or needed.

Lastly, any strategy must take into account potential taxes. If a farmer or rancher’s estate is large enough, estate taxes may be owed at the time of death. The estate tax is currently a 40 percent tax applied to all assets

their parents want. A failure to talk with their children can result in their children fighting over the farm or ranch, because children who are not involved in the operation might want to sell it and can out vote those who want to keep it. However, if one of the kids wants to keep the farm or ranch going, there are ways to ensure that happens. For example, a child who

the parents’ goals and objectives must be revised. From there, documents must be updated, including any wills or trusts, buy-sell agreements must be restructured if necessary, and life insurance must be reviewed to make sure that the plan is funded, and the agreements are covered.

Throughout the estate planning process, accurate information is the key to making this transition successful. Certainty is needed when it comes to the value of all assets. Confirm all involved know the current situation, assets and liabilities that might be acquired in the future. Debt is a tricky subject, but it is a fact of life in the agriculture industry. It needs to be handled as a reality because sometimes it is the only way to keep the lights on and the business going.

You Bet Your Life

in excess of an $11.7 million exclusion for an individual — $23.4 million for a married couple. This means that taxes are currently owed if an estate exceeds $23.4 million for a married couple, but not if the estate is less than that. In 2026, this exclusion amount is scheduled to be reduced by half, which means that more farms and ranches will be affected. By taking action, farmers and ranchers can begin to reduce their estates so that, when they die, the estate tax will be reduced or eliminated as well. It is also extremely important to speak with your accountant before making any decisions.

For the Kids

Farmers and ranchers tend to be optimistic people. When relying on Mother Nature to keep the business going, it is a requirement. That optimism can also get farmers and ranchers in trouble when it comes to estate planning. That optimism can show itself when it is assumed that their children want the same things

wants to keep farming can take out a life insurance policy on their parents.

Upon the passing of the parents, that child immediately buys out the other siblings with tax-free money from the life insurance policy and in accordance with the terms of the parents’ estate plan. Estate planning such as this can secure the continuation of the farm for those who want to operate it.

In addition, it can help to prevent a lifetime of debt heaped upon them.

Whether or not to divide assets between the children depends on their relationship. If they have a good relationship, assets may be kept together. If they don’t, the assets can be separated. However, the kids may not want to raise crops and cattle, or their spouses may be against it. This should be discussed and determined in order to establish the estate plan.

Without checking if the kids want to farm, the estate plan may not survive. If children ultimately decide that farming and ranching isn’t in their future plans,

Life insurance tends to live on the back burner for most people, including farmers and ranchers, but it can be a valuable tool if used in the right way. The death benefit of a life insurance policy goes into the estate as tax free. When choosing the right amount of death benefit, there should be enough of it to cover operating expenses as well as taxes. In addition, the life insurance policy can be used to balance an estate between those children who want to stay in agriculture and those who just want the cash.

Not all life insurance policies are created equal though. Term life can get expensive and is hard to manage.

Finding the right company to work with can help clients move to permanent life insurance. Permanent life insurance can keep premiums level and may increase death benefit. It is important to make sure the company has viable options to make it permanent, otherwise they may be left with nothing in the future.

Find a team that is right for you that handles estate planning. When dealing with these issues, it may be wise to consider all resources, local and national, to ensure you meet your goals.

Jordan Gottlieb studied agricultural economics at Kansas State University and raised cattle before becoming an agent for New York Life Insurance. His passion is to help farmers and ranchers transfer their assets efficiently to the next generation.

Final Call for 2022 NCBA Leadership Candidate Nominations!

Deadline for all Applications: Wednesday, December 22, 2021 Accepting Candidates for the Following Positions

Important Dates:

PRESIDENT ELECT AND VICE PRESIDENT REQUIREMENTS: Current NCBA member; Served or currently serving on the Board of Directors; Have an individual, financial investment in the beef industry; U.S. citizen TERM: One year WHO CAN NOMINATE: Policy Division Directors; Federation Division Directors; NCBA Affiliates; State Beef Councils

WEDNESDAY, DECEMBER 22, 2021: Candidate application deadline

POLICY CHAIR AND VICE CHAIR REQUIREMENTS: Current NCBA member TERM: One year WHO CAN NOMINATE: Policy Division Directors; NCBA Affiliates

MONDAY, JANUARY 31, 2022: Candidate In-Person interviews with the Nominating Committee, Houston, TX

FEDERATION CHAIR AND VICE CHAIR REQUIREMENTS: State Beef Council member or Ex-Officio; Cannot simultaneously serve as a Cattlemen’s Beef Board member TERM: One year WHO CAN NOMINATE: Federation Division Directors; State Beef Council Directors; State Beef Councils EIGHT (8) BEEF PROMOTION OPERATING COMMITTEE MEMBERS REQUIREMENTS: State Beef Council member or Ex-Officio; Cannot simultaneously serve as a Cattlemen’s Beef Board member TERM: One year (Candidates can be re-elected for a maximum of six consecutive terms) WHO CAN NOMINATE: State Beef Councils

MONDAY, JANUARY 10, 2022: Candidate Letters of Support/ Recommendation deadline

THURSDAY, FEBRUARY 3, 2022: NCBA Board of Director’s meeting – final vote on Candidates For more information or questions, go online to NCBA.org/About/Leadership, and “CLICK HERE.” or scan the QR code.

For questions or assistance contact: Deb Warren (303) 850-3371 dwarren@beef.org

NATIONAL CATTLEMEN 7

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Infrastructure Bill Passes On Nov. 5, the U.S. House of Representatives passed the bipartisan Infrastructure Investment and Jobs Act of 2021. The National Cattlemen’s Beef Association (NCBA) is pleased to see the passage of this bill, as infrastructure investments are fundamental to the success of the U.S. cattle industry. NCBA Executive Director of Government Affairs Allison Rivera issued the following statement in response: “The infrastructure package includes several key provisions that NCBA has long advocated for, including funding for the modernization of roads and bridges, funding for high-speed rural broadband, congressional commitment to the improvement of the federal permitting process for critical water-related investments and an additional 150 air-mile exemption for livestock haulers on the destination of hauls, providing much needed flexibility under current hours-ofservice regulations.

“Investing in critical infrastructure is consistent with NCBA’s mission to increase producer profitability. The ability for cattle producers to efficiently raise cattle, haul them safely and compete in a fast-paced global marketplace has a direct link to the economic stability of rural communities and a resilient food supply chain. We look forward to the president signing the bill and stand ready to ensure proper implementation.”

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Internship Program Develops Future Leaders For 16 years, NCBA’s Public Policy Internship Program has welcomed more than 50 future leaders to the Washington, D.C., office to learn, lead and grow. This unique internship provides an opportunity for students interested in the beef industry and federal policy to engage with NCBA and Public Lands Council staff regarding policy, communications and membership, working closely with the lobbying and regulatory teams to advance policies important to the beef industry.

“I’m extremely proud of NCBA’s intern program. As one of the most soughtafter internships in D.C., we take pride in giving our interns real-world experience and working closely with members of our policy staff,” said Allie Nelson, NCBA and PLC director of operations. “Our interns automatically become a part of the team and have the same expectations as full-time staffers here — our program is both rigorous and rewarding.”

Interns receive experience working with NCBA’s Government Affairs team, communicating updates to NCBA members, reviewing Federal Register notices, participating in agency meetings and collaborating with Hill staff.

“As a former intern myself, I was able dive deep into the policy issues NCBA works on every day,” Nelson said. “Now, as the intern coordinator, I want to create that same kind of experience for our future leaders.”

A few recent interns shared their stories about how their internship experience prepared them for the next stage in their careers.

Kinzie Burtrum from Stillwater, Okla., served as an intern in the summer of 2021. Growing up on a cow-calf operation, she always knew she wanted to use her passion and skills to serve the cattle industry, and this internship was one more successful step in her career path. She enjoyed meeting with the NCBA policy team and learning about their different areas of expertise, and there was never a day that she did not want to go to work.

“It would be impossible to mention everything I experienced during my time in the NCBA D.C. office,” Burtrum said. “The most important thing I learned was how to advocate for all aspects of the agriculture industry especially to those who know nothing

about it. The D.C. staff truly demonstrates what it is like to advocate for beef producers in a professional manner.”

Burtrum is currently a senior at Oklahoma State University studying animal science with an emphasis in business and a minor in law and legal studies. After graduation this spring, she will attend law school in pursuit of becoming an agricultural attorney to represent the farmers and ranchers who feed and fuel the world.

Carter Estes from Lubbock, Texas, joined the NCBA team in Washington, D.C., in the summer of 2021 where he enjoyed the broad body of work that he experienced.

“The internship gave me a good sense of all aspects of cattle industry advocacy and made me feel like I was making a tangible difference for ranchers,” he said.

One of his fondest internship memories was shared with fellow intern, Kinzie Burtrum, when they visited the British Embassy to listen to policies on international trade relations. Estes noted that it was an impressive experience because they were able to engage with multiple representatives of the British government and view trade discussions in real time.

“I will carry all of the interpersonal communication skills that I gained at NCBA with me for my entire career,” Estes said. “This, coupled with the knowledge of advocacy in Washington, will be extremely useful for my future.”

Estes earned a bachelor’s degree in agricultural and applied economics from Texas Tech University, and he is currently finishing his Master of Public Policy degree at the Harvard Kennedy School and hopes to return to Texas or D.C. to further the interests of cattle ranchers across the country.

Continued on page 10

Kinzie Burtrum

Carter Estes

“Courage is being scared to death but saddling up anyway.”

– John Wayne

“I would rather be on my farm than emperor of the world.”

- George Washington

NATIONAL CATTLEMEN 9

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Winter Perspective as La Niña is Now Well Established

By Matt Makens, Atmospheric Scientist With winter upon us, the weather pattern dictating the next few months established itself from October to November. In this process, La Niña has returned and will be more of a traditional variety than what we had last year.

Before you assume this winter will be like last year’s, no two La Niña years will be identical and there are big variations.

The most significant difference between years is where the warmest and coldest areas of sea surface temperatures are positioned. As one example, October and November 2020 had very warm ocean conditions stretching all along the west coast of North America. Conversely, in 2021 the ocean is now much colder in these areas, and this will be one of the driving forces to the weather throughout this winter.

This season will be different from 2020 to 2021 in other ways, too. To call out a couple of additional examples, the Great Lakes and the Northeastern U.S. will have periods of wetter and cooler weather, and the Central to Southern Plains will have a milder stretch from December through February (a region of colder-than-average conditions last year).

I should take a moment now to focus on that last sentence. Yes, the overall average for the wintertime temperatures will be warmer for the plains. However, we will still see bouts of sharply colder temperatures in shorter durations. It can be misleading to say a mild winter on average despite having several weeks of it being colder than average.

I feel that aspect is missed in a lot of winter forecasts; the long-term average may not capture significant short-term events.

In general, this year will have a more classic La Niña pattern in which cooler and wetter conditions will favor the Pacific Northwest. Meanwhile, much drier and warmer conditions will cover the southern U.S.

Image of the La Nina weather pattern across the U.S. is provided from noaa.gov.

To look deeper into winter weather patterns, let’s take a moment to look at aspects of El Niño and La Niña winters. A reminder, in the weather world, winter is the calendar months of December, January and February.

Precipitation is the most significant factor; moisture is favored in El Niño years, whereas La Niña years are much more frequently dry. Where things are less distinct is within the temperature records.

Of the coldest winters for the U.S. since 1950, eight came in El Niño seasons versus six in La Niña — pretty even.

El Niño winters average a full degree warmer than average for the lower 48 since 1950. The warmest was by 4.55 degrees in 2015 to 2016. The coldest in 1977 to 1978 was more than 3 degrees below the average.

Compare that to La Niña’s winter average 0.78 degrees warmer than normal with the warmest being 1999 to 2000, which was 4.25 degrees warmer than average. The coldest was 1983 to 1984, which was 1.67 degrees cooler than average.

Of the two phases, El Niño has been the most extreme in wintertime temperatures.

You may be wondering about the winter of 1978 to 1979, the COLDEST winter (by far!) since 1895, which was during a neutral phase between El Niño patterns.

With those perspectives in mind, let us turn to this winter’s outlook. Drought will persist with fewer wet areas — as expected — during La Niña patterns. Temperatures will be warmer than average, with some cold pockets worth mentioning.

Below is the outlook for December through February: Northwest: For the mountains, precipitation totals will be more than average with near-normal conditions elsewhere. In similar patterns since 1950, the region is one-anda-half times more likely to be wetter than normal. Temperatures will be cooler than average to coincide with the wetter areas.

West: Occasionally, some moisture will fall for northern California; by in large, it will be drier than average for the region with the warmest conditions farther south.

More than two-thirds of similar years were dry.

Northern Rockies: Periods of wetness are possible, mostly for the Rocky Mountains with lower precipitation totals on the High Plains, but still with some occasional pockets of wetness. Since 1950, more than half of La Niña years were wetter than average. Frequent wind events will be a drying and warming mechanism, so plan on warmer-thanaverage temperatures for most of the region early on, but later in the season, there’ll come more frequent cold outbreaks. The coldest part of the region will be the Northern Plains.

Southwest: Other than periods of snowfall for the northern

mountain ranges of Utah and Colorado, the region will be dry, with drought growth likely. Wind events are possible with this La Niña pattern, too. Temperatures will run warmer than average, with the warmest anomalies coming out of New Mexico.

Rarely have similar weather patterns turned out to be wet for this area — 85 percent of those years were dry.

South: Drought growth is likely with drier-than-average conditions and warmerthan-average temperatures, particularly Texas. Wind events will further the drying.

Periodic cold fronts may drop temperatures significantly on a weekly scale, but overall, the three month period will average out to be warmer than normal. More than 75 percent of the most similar years since 1950 resulted in dryness.

Upper Midwest: Colder temperatures and longer-lasting cold outbreaks will develop here throughout the season. Temperatures will be near to and colder than average for most within the region. As far as moisture, the best will be for those farthest east, namely Michigan.

Ohio Valley: Periodic bouts of cold temperatures will be possible, but the longterm temperature average will be close to normal for the southern areas. Near-to and colder-than-average conditions will be recorded in the northern parts of this region.

Precipitation will favor those to the north and east as well as in Kentucky, leaving the rest of the region drier than average. Since 1950, fewer than half of the most similar years ended wetter than average for the entire region.

Southeast: Warmer-than-average temperatures are expected here. The precipitation outlook is drier than average; La Niña is a drought problem for this region, especially early in the season. Two-thirds of similar years resulted in dry conditions overall.

Northeast: For Maine to Massachusetts, wetter-than-average conditions will be here this winter, and it will be colder than average to go along with that. For the remainder of the region, nearly average precipitation with temperatures near and warmer than average.

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NATIONAL CATTLEMEN

Future Leaders

Continued from page 8

Nathalie Yoder from Altha, Fla., is currently an intern for the fall 2021 semester and enjoys being a part of the NCBA team and seeing how NCBA’s work affects the daily lives of cattle producers.

“I love seeing how everyone at the NCBA office genuinely cares about what they do here and how hard they work to ensure the continued success of our industry,” Yoder said. “On a tangible level, I really enjoy participating in event planning activities, which is giving me some direction for my career.”

Yoder’s experience at NCBA has taught her a lot about professionalism, communications and the inner workings of the policy process, all of which will help her in the future. She has an interest in event planning and was able to coordinate an event for a member of Congress. This experience gave her the opportunity to develop skills in logistics and coordination, as she was involved in every aspect of ensuring the event was successful.

“I was so proud to see the event come together seamlessly, and it was amazing to be with the rest of the staff enjoying a great evening knowing that everything went really well,” she said.

After her internship is completed, Yoder will return to the University of Florida in Gainesville and finish her degree in May 2022. Following graduation, she hopes to work in north or north central Florida, possibly in public policy related to agribusiness, event planning for agriculturally oriented companies or communications. No matter what path Yoder takes, one thing is for certain — her career will involve agriculture.

Chase DeCoite grew up in California with a family history in the dairy industry but found a passion for beef cattle as the student herd manager at the UC Davis feedlot. After earning a bachelor’s degree in animal science from UC Davis, Chase served as an NCBA intern in the summer of 2013.

“The NCBA policy internship showed me a whole new avenue for careers in agriculture,” DeCoite said. “Working for a trade association puts you at the epicenter of the industry providing a broad understanding and perspective of issues that impact all cattle producers.”

Chase also appreciated the level of professionalism that the NCBA team brought to work with them every day and

Nathalie Yoder

“Just take it five minutes at a time.”

how that professionalism, coupled with knowledge and tenacity, delivered real results for members. That staff dedication and commitment created a positive environment for the intern experience.

“I thoroughly enjoyed how NCBA immersed the interns into everything the policy team worked on,” DeCoite said. “As an intern, I always felt like a valued member of the team and not just temporary help.”

A moment DeCoite said he will never forget was sitting on the floor of the House of Representatives.

“It is one thing to see our government bodies on television and in the media but actually being there and having the history and the significance surround you is an inspiring and overwhelming feeling all at the same time,” he said.

Following his internship, DeCoite continued his education, attending Cal Poly San Luis Obispo, for graduate school where his research focused on perceptions of beef animal welfare programs. His journey then brought him back to the organization where he started his career.

DeCoite now serves as NCBA’s director of animal health and food safety, managing a policy portfolio that includes cattle health and welfare, food safety and traceability. Prior to his current role, DeCoite managed the Checkoff-funded Beef Quality Assurance program.

According to DeCoite, the internship at NCBA offered the opportunity to experience government in action, and he encourages all students to spend time in the nation’s capital.

“It provides an opportunity to see how your voice can make a difference and reminds you that, while it doesn’t always feel as such, our government is still by the people,” said DeCoite. “It was fascinating to watch how policy is formed and see how grassroots organizations like NCBA can have such a profound impact.”

NCBA, in conjunction with the Public Lands Council, offers internships for fall, spring and summer semesters in Washington, D.C., and is currently accepting applications for summer 2022. Applicants must be a junior or senior undergraduate student or graduate student with a background or major in agriculture as well as a background in cattle and/ or the beef industry, have a minimum GPA of 3.0 and have excellent research, writing, and communication skills. For more information and to apply, visit www.NCBA.org.

Chase DeCoite

“Perfection is the enemy of progress.”

-Winston Churchill

SAV ET

LEGISLATIVE CONFERENCE

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2022 NCBA Legislative Conference

March 29 - March 31, 2022 JW Marriott Washington DC

For more info visit NCBA.org.

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Feeder Cattle: Cyclical Trend is Your Friend

CME Feeder Cattle Index

250 $150s or 240 better.

230 It would 220 be unusual 210 for no break 200 to occur 190 into early 180 170 2022 from 160 today’s 150 cash, but 140 it has 130 happened 120 and could 110 again this 100 year. A spring fed market in Source: CME, CattleFax Weeks the low $140s and an average feeder-fed spread of 12 percent would equate to $159 cash feeders. A stronger fed cattle market could feed additional optimism into the deferred futures and be more supportive to feeder cattle.

Bottom line: Cash feeder cattle tend to soften into the first few months of the year, but cyclically tighter supplies should be more supportive this year with strong support in the low $150s. Basis the CME index, feeders should find resistance around $160 through early spring, but at this point in the cattle cycle, additional upside is possible if the fed cattle market outperforms or the deferred futures contracts price in exceptional optimism.

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22

$/cwt

By Patrick Linnell Analyst, CattleFax It’s often said in cattle markets that “live is the drive”. A large volume of backgrounded calves and feeder cattle will be changing hands in the next six months.

The trend in the fed market, plus other factors, should generally be supportive to feeder cattle in the coming months.

The feeder cattle market has a strong tendency to find lows for the year from January to April. In addition to larger volumes of cattle being marketed, these cattle are placed against the seasonally softer summer and fall fed cattle markets.

These seasonal supply and demand factors will influence the feeder market this year, but more unique factors are also at play. Most point to additional support, but as always, there are also items on the watch list.

With a contracting U.S. beef cowherd, 2021 will be the third year of declining calf crops. Current projections are for the supply of feeder cattle and calves outside of feedyards on Jan. 1 to be down 400,000 head from year-ago levels and the smallest since 2015.

Feedyard inventories should also moderate into the early new year, and managers will be actively looking to refill existing pens and the additional bunk space gained in more recent years. This should support feeder cattle demand, even if higher feed prices and costs of gain keep buyers somewhat more disciplined.

As recent higher fed cash trade confirms, the broader market trend is higher.

Tighter cattle supplies will support prices across the cattle complex. And additional upside is possible as front-end fed cattle supplies come more in line with packing capacity. Producers may more fully realize the market potential that comes from stronger beef demand.

The CME feeder cattle cash index (representing an 800-lb. Central Plains steer) has found strong support in the mid-$150s. Feeder cattle futures have been tremendously volatile, but the early 2022 contracts have spent most of the last month in the upper

Beef Cow Inventory Looks to Contract on January 1

By Katelyn McCullock, Director of the Livestock Marketing Information Center The latest Cattle on Feed report released by USDA NASS on Oct. 22, 2021, provided the industry with an update of the percent of heifers on feed. The importance of this number to borrow from the Oct. 25 Oklahoma State University’s Cow-Calf Newsletter Derrell Peel’s words, “Heifers are being diverted from breeding to feeding because of the drought.” The number of heifers on feed reached 4.485 million, about 38.8 percent of the total number of animals on feed as of Oct. 1. The proportion is the highest it’s been in two years, which is noteworthy because overall cattle on feed was down from a year ago.

From a total beef supply, more heifers in the slaughter mix should lower the overall dressed weight of killed cattle. Additionally, the high number of cows being slaughtered is dragging that average down. On a per head basis, that will decrease the amount of beef available, but the longer-term implication is that those heifers are not available for breeding in subsequent years. The trajectory of the cattle cycle has been contractionary for a few years now, but 2021 saw acceleration both in the number of cows liquidated and the movement of heifers to slaughter channels. Those management decisions are being confronted by the collision of severe drought conditions and cash flow needs.

Beef cow slaughter January through mid-October was up 9.3 percent year over year and has routinely had weeks when processing was over 70,000 animals. Heifer slaughter for that same period was up 4.4 percent. The combination adds about half a million head more beef-type animals being slaughtered than last year. Importantly, those increases are comparing to 2020, a year which also had breeding herd liquidation. Beef cow slaughter since the start of the third quarter has greatly accelerated and was up 10.1 percent for those weeks. Heifer slaughter on the other hand has slowed and was down 2.2 percent for those 17 weeks compared to a year ago.

Without that slowdown, the breeding herd would have been looking at a significant decline on Jan. 1. However, as more and more data become available, the Jan. 1 beef cow figure looks closer to 2 percent down. There are still nine weeks of slaughter data left in the year at the time of this writing. Note, heifers moving through slaughter channels before the end of the year are likely already in feedlots and represented as part of the Oct. 1 number of the 4.485 million head on feed. Although not all those animals will be slaughtered before year end, the total is about 1.8 percent higher than a year ago. With more heifers already expected, the cow slaughter figure will be critical to watch, and it has not shown signs of slowing down. Last year, the fourth quarter averaged about 67,700 head a week. So far, every week in October was over 69,000 head. The most recent week, Oct. 23, showed an enormous total of 76,400 head. That was the largest single week of beef cow slaughter since December of 2012.

Percent 40

75 70 65 60 55 50 45 40

JAN

APR

JUL

Avg. 2015-19

36 35 34 33 32 31 2009

2010

2011

2012

2013

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

2014

2015

2016

2017

2018

2019

2020 10/22/21

2021

2021 C-S-34 11/04/21

HEIFER SLAUGHTER Federally Inspected, Weekly

Thou. Head 220 200 180 160 140 120 JAN

APR

Livestock Marketing Information Center

37

2020

Livestock Marketing Information Center

JUL

Data Source: USDA-AMS & USDA-NASS

38

OCT

Data Source: USDA-AMS & USDA-NASS

Avg. 2015-19

39

30

Thou. Head 80

100

HEIFERS ON FEED AS A PERCENT OF TOTAL CATTLE ON FEED U.S., Beginning of Quarter

BEEF COW SLAUGHTER Federally Inspected, Weekly

OCT

2020

2021 C-S-13 11/04/21

The producer decisions focusing on cow kill and heifer placements into feedlots are starting to model previous significant drought behavior. Producers appear to be shipping cows directly after weaning, and this has far-reaching marketing implications later in the cattle cycle. The contraction in the cow herd will boost calf prices and feeder prices in the coming years as cattle supplies become increasingly shorter.

Additionally, the decline in dairy cow herd figures is expected to limit the crossbred calves entering the beef market and will have some repercussions. These numbers are more difficult to forecast but will likely be a factor in 2022 based on the 85,000 head decline in milk cows reported in October.

Replacement costs too are expected to increase, although, the drought outlook and cost to hold breeding stock will need to improve before producers are able to start rebuilding. LMIC forecasts calf prices in the Southern Plains to increase about $10 per hundredweight in 2022 on an annual basis and another $20 per hundredweight in 2023. This is an aggressive escalation in calf prices that is based on a 2 percent decline in the beef cow herd in 2022 and another 1-1.5 percent decline in the breeding herd in 2023.

NATIONAL CATTLEMEN 13

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Is China’s Beef Boom Sustainable?

By Don Close Senior Animal Protein Analyst, Rabo AgriFinance Every global beef outlook presentation, report and article for the past five years outlined demand growth in southeast Asia.

Japan continues to be our number one export customer both in volume and price. It is a stable, long-term relationship.

South Korea continues to post aggressive growth and holds a very close second position to Japan.

So, what has changed about my outlook for beef demand in this region? China.

Since China approved U.S. beef for direct shipment in June 2017, the industry has expected the country to become a strong customer. And when African Swine Fever (ASF) hit their hog herd, RaboResearch expected beef to benefit. But we also expected the Chinese’s inexperience with beef to hamper the premium protein’s ability to post huge gains there during their ASFinduced pork shortage.

COVID-19 changed everything.

Perfect Timing

China’s choice protein has always been pork. Beef consumption in China has traditionally been in meals consumed away from home in traditional hot pots, quick service (fast food) restaurants, Korean barbeques and western-style steakhouses. One of the biggest challenges in escalating beef consumption in China was teaching cooking techniques to Chinese home cooks.

China’s strict stay-at-home orders in late 2019, along with rapid escalation of online shopping and home delivery options — compounded with the perceived value of beef relative to higher-than-normal priced pork — greatly accelerated at-home cooking skills.

RaboResearch estimates that the combination of ASF and COVID-19 pushed ahead the beef knowledge and cooking skills of Chinese home cooks by at least 10 years from the trajectory set beforehand.

Throughout this period, Brazil, Argentina and Uruguay have been volume suppliers of beef. However, the increased consumption of beef and preparation skills have quickly made the Chinese aware of the taste differences between high-quality and lower-grade beef.

But Timing Isn’t Everything

This success story was dependent on a lot of moving

parts. Hard work over the years by the USDA, NCBA, U.S. Meat Export Federation and producers laid the groundwork. The Office of U.S. Trade Representatives and the Phase 1 trade agreement were important pieces.

Another factor is China’s sharp reduction in purchases from Australia due to political differences.

Now China is our third largest export customer. The market has 1.4 billion people, and its middle-to-high class population alone is twice the size of the U.S.’s total population.

CATTLEMEN’S

CALL

Can the Success Last?

RaboResearch expects beef shipments to China to grow for 2022 and in the foreseeable future. I believe the beef trade route to China will likely have its ebbs and flows. China hasn’t always been the most reliable trading partner. And there is always risk for political drama, especially with the apparent escalating tensions with Taiwan.

As the Chinese population continues to be more and more urban and disposable income increases, we expect the Chinese diet to continue to follow consumption patterns of a Western diet. While China has aspirations for self-sufficiency in pork and broiler production, they are quick to admit that they do not have the resources to be self-sufficient in beef.

Now may be the major turning point for high-quality U.S. beef purchases to breakthrough in China.

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

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

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NATIONAL CATTLEMEN

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

Beef Powers Athletes Across the Country It often takes a team to accomplish goals, and it’s no different when promoting beef to millions of consumers across the country. One way state beef councils educate consumers on the role beef plays in a healthy lifestyle is through Team Beef. From coast to coast, Team Beef participants recognize the nutritional benefits of lean beef and the vital role this high-quality protein plays in their training and are proud to wear Team Beef jerseys during races.

More than 20 states have Team Beef programs, with hundreds of runners, cyclists and other nutrition enthusiasts participating in events each year.

Members receive information about the beef industry and the nutritional benefits of beef, and some states require participants to complete the Masters of Beef Advocacy program before receiving their Team Beef jersey. These proud beef ambassadors then share information with other athletes, peers and communities.

While programs vary by state, most provide some level of reimbursement for race registration fees and all of them offer educational materials about beef and require participants to wear Team Beef jerseys during races. Here are a few states racing to the finish line with Team Beef.

Team Beef Gives Back

Runners and Riders Race for Beef

Not only do Team Beef participants in Colorado promote beef through their active lifestyle, but they give back as well. Ten percent of sales from Colorado’s Team Beef store goes to the Beef Sticks for Backpacks program, which produces and distributes high quality beef sticks to Colorado backpack programs that help feed kids facing food insecurity on the weekends.

The nearly 200 members of Colorado’s Team Beef have run more than 2,700 miles so far in 2021. From 5Ks to marathons, runners have been sharing beef’s positive nutritional message since the Colorado program began in 2011.

For more information, visit www.cobeef.com.

Team Beef South Dakota includes more than 150 runners and cyclists who want to promote beef, be physically active and showcase eating beef in a healthy lifestyle. Adult and youth members receive an official Team Beef South Dakota jersey and are encouraged to participate in at least two of the 10 suggested races or events.

Team Beef South Dakota has developed an online toolkit for members to access resources to enhance their beef advocacy skills, learn more about beef and utilize resources for potential community volunteer involvement.

In addition, the South Dakota Beef Industry Council created a 2021 Team Beef wrap-up video to showcase event activities throughout the year and celebrate a successful season. South Dakota is already gearing up for the 2022 season, with registration opening Dec. 1.

For more information, visit www.sdbeef.org.

Friends of Team Beef The Illinois Beef Association implemented a unique aspect to their Team Beef program in 2021.

The new Friends of Team Beef Illinois is for beef advocates who enjoy running but may not be avid runners.

“Friends” still serve as a positive role model for beef and actively spread the word to help educate others about beef but aren’t required to run a certain number of races. Once friend members complete the Masters of Beef Advocacy program, they have access to the Team Beef Illinois apparel store and a new private Facebook group, coming soon, will help them engage with one another. The group is helping build a strong fan base and support system for Team Beef Illinois.

For more information, visit www.illinoisbeef.com.

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www.NCBA.org

NEWS TRENDING IN FOOD & MEDIA ENVIRONMENTAL SUSTAINABILITY Negative environmental impacts from cattle and beef production were covered in outlets like Bloomberg and The Guardian.1 Outlets like The Associated Press and Reuters featured more environmentalrelated news as the U.N. Climate Change Conference (COP26) approached.1

GOOD NEWS FOR BEEF Newsy discussed cattle’s climate benefits, which was also featured in Yahoo! News.1

SUPPLY CHAIN & PRICES

Beef Back on Television for the Holidays The most flavorful time of the year is here, and families are gathering together for holiday meals featuring beef. Funded by the Beef Checkoff, the holiday campaign is bringing Beef. It’s What’s For Dinner. back to the Hallmark Channel with 125 ad

Outlets like Barron’s and MarketWatch focused on consumer impacts of rising meat costs in the U.S.1

airings during “Countdown to Christmas” movies. The television ads are expected to reach consumers 90 million times throughout the holiday season. In addition, beef will be promoted through food, agriculture and culinary influencers, e-commerce promotions, social media and earned media. Social posts this year will also include new Chanukah content featuring brisket recipes.

Seasoning’s Greetings from all of us at NCBA, a contractor to the Beef Checkoff.

Frustration among cattle producers with supply chain bottlenecks grew more apparent as ABC News and Fox News covered the issue.1

GOOD NEWS FOR BEEF TODAY and Fox News continued to feature beef recipes and cooking tips.1

PLANT-BASED DIETS & ALTERNATIVES McDonald’s announced a pilot of its McPlant meat alternative burger in eight U.S. cities, which CBS News reported.1 The Los Angeles Times ran an eightarticle series about the future of celland plant-based meat.1

GOOD NEWS FOR BEEF Insider discussed a study that concluded elevated levels of depression and anxiety in vegans.1

#110521-08 1. National Cattlemen’s Beef Association. (2021). Traditional and social media listening dashboards. Retrieved from Meltwater: www.meltwater.com

Sharing Beef’s Sustainability Message Starts at Home Everyone has neighbors, whether they are miles away or right next door, and the most interesting conversations happen when chatting with someone across the fence.

Consumers want to hear from their producer neighbors to learn about the food that is feeding their families.

With questions arising about climate change and how products get from farm to plate, sharing beef’s positive sustainability message starts at home through community conversations.

The National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, developed a letters to the editor (LTE) campaign to help share producer stories locally. While broad-based campaigns promote beef at the national level through advertising and social media, the LTE effort took a grassroots approach, giving producers a voice in local communities.

The U.N. Food Systems Summit and Climate Week NYC in September brought a lot of attention to climate

discussions and provided the perfect opportunity to educate people that animal agriculture is part of the climate change solution and not the problem. Producers and nutritionists shared their stories about sustainability efforts and the role beef plays in a healthy diet through letters to the editor, which were submitted to publications in their own communities.

More than 45 LTEs were placed in publications across 17 states, reaching 26 million consumers. Many of those reached live in urban areas neighboring cattle farms and ranches where there is a great need for consumers to better understand the industry’s commitment to protecting the planet and providing nutrient-dense protein.

This is one more example how the Beef Checkoff is bridging the gap between pasture and plate and bringing neighbors together for conversations that open doors to understanding.

Advance Your Beef Advocacy Skills: Blaze New Trails APPLICATION NOW OPEN Help the beef community by: • Driving demand for beef.

• Promoting and broadcasting beef’s unique position and core attributes to new audiences.

• Addressing and correcting myths around beef and production practices.

For more info scan the QR code with your camera or contact Chandler Mulvaney at cmulvaney@beef.org

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