February 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. FEB 2021 • Vol. 37, No. 5 • NCBA.org

improve the business climate for U.S. cattle producers. It’s NCBA’s goal during the year ahead to protect the industry from government regulation and showcase our positive impact on the environment.” As a former president of the Kansas Livestock Association, and after serving many leadership roles at both state and national levels, Bohn brings a wealth of knowledge about the issues to his new role, but he also understands the importance of teamwork in tackling any job. Through his involvement in industry organizations over the years, Bohn said the goal and the purpose have often been the same. That’s the drive to protect the individual cattle producer’s ability to operate his or her business as they see fit and pass on a legacy to the next generation. The relationship between NCBA and its members and state affiliates is of the utmost importance to Bohn. “Local cattlemen and women provide the input that develops and directs NCBA policy work. That’s how it should be and that’s what makes our organization strong and unique.” Bohn knows that working together and keeping focused on the association’s goals will be paramount for success during his term in 2021. The association’s commitment to helping producers through the pandemic coupled with a list of policy wins last year and ambitious policy priorities for the year ahead mean it’s important to get to work quickly, especially during the first year of a new White House administration. “I’ve been part of the successful completion of these longterm, industry goals for many years. Last year, we were able to check important priorities off the list, from a replacement for WOTUS, to trade deals, to improvements to the National Environmental Policy Act and Endangered Species Act, and more, we accomplished a great deal. We also succeeded in ensuring much needed relief was available to producers impacted by the COVID-19 pandemic. But there’s still a lot that we need to get done in the months ahead,” he said. Bohn points to the number one topic on the minds of cattlemen and cattlewomen: profitability. “NCBA is committed to improving the business climate for our members as a producer-driven organization with a focus on issues like price discovery and transparency in cattle markets along with bolstering the risk management tools available to producers. These were topics brought forward by our state affiliates last year and we’re focused on working toward solutions in the year ahead,” Bohn continued. “Ensuring that all alternative protein products are held to fair and equal standards while doing away with false marketing claims is also a top priority.” Another focus for NCBA in the year ahead is positioning the beef industry as a leader in sustainability with consumers and policy makers. “We need to be a leader in the sustainability conversation with a focus on science, the achievements of our industry, and a look at the day-to-day practices every cattleman and cattlewoman follow that protect our resources. We have an outstanding track-record when it comes to sustainable production in the U.S. and we know our industry is a positive A Kansas native and cattle feeder that shares an contributor to the environment. We need to show that appreciation, with many NCBA members, of a hard day’s our methods are the global model for sustainable beef work producing a quality protein, Jerry Bohn understands production,” he said. the pressures facing producers. As he takes the helm of the While the next four years will be an adventure in National Cattlemen’s Beef Association (NCBA) this year, he Washington, D.C., Bohn is confident that NCBA will do what it will bring important perspective to the job and is committed to working together to achieve crucial goals. has always done - build relationships, educate administration “Like many of our members, I recall horrific winters in the officials, and fight for your right to raise cattle. early ’90s, a “We have a March blizzard lot to do as an in 2008 and association and as the cow that an industry, not This is a great industry and we have a great story to tell about what stole Christmas just during my in 2003. I we’re doing and why we’re doing it. It’s important for us to tell that term as president, experienced but in the years story and to do so not just for ourselves, but for the generations that the rise and fall ahead of us,” of prices and Bohn said. “This follow us. That’s what we’re trying to do at NCBA, so I hope folks will the drought is a great industry situation we join us and be a part of it. and we have a went through great story to tell from 2011 to about what we’re 2014. And, doing and why of course, all we’re doing it. It’s the challenges our industry has faced due to the pandemic important for us to tell that story and to do so not just for in 2020,” Bohn said. “Those tough times are a reminder of ourselves, but for the generations that follow us. That’s what the resolve of cattlemen and women. As NCBA president, we’re trying to do at NCBA, so I hope folks will join us and be I’m looking forward to the chance to forge a stronger bond a part of it.” between our state and national associations as we work to

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

Jerry Bohn is Committed to the Future of Beef

MARKET SNAPSHOT WEEK ENDING 1/22/2021 (prices vs. year ago) $109.52

CHOICE BOXED BEEF $210.82

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IN THIS ISSUE Leadership Comments

Federation 6 Governance 8 Market Matters

Checkoff 14

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NATIONAL CATTLEMEN

Cattle Producers: Constantly Driving Forward By Marty Smith, NCBA President As I look back on my year as president, while it certainly didn’t go as planned, one of the things I’m most proud of is that our members and this organization didn’t sit down and quit. We got to work, because that’s what we do best. I am proud of our response to the pandemic. Many of our producers faced seemingly impossible situations and NCBA acted quickly to engage USDA and the Administration for support and relief. We pushed USDA to expand their market investigation to ensure that all parties were acting legally in a market that was under intense pressure. At the same time, we worked to ensure agricultural enterprises were included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program (PPP), which resulted in the Coronavirus Food Assistance Program (CFAP) being released. This program included $19 billion in direct support to agricultural producers and when NCBA members experienced problems with how CFAP payments were calculated, we lobbied for and delivered a second and soon-to-be third round of CFAP payments to help producers get closer to being made whole. In many of these cases, we got results the same day of our asks, showing our level of influence in Washington. As we worked on the issues created by the pandemic, NCBA also made significant progress on the policy priorities we set in February 2020. After NCBA worked for years to update the National Environmental Policy Act (NEPA), the improvements we fought for became law. We also saw the defeat of environmental activist groups in court after they attempted to challenge the positive improvements made to NEPA. NCBA fought for more than five years to replace the ill-conceived 2015 Waters of the United States (WOTUS) rule with the Navigable Waters Protection Rule, which was finalized this year and includes critical exemptions for cattle producers. Shortly after Christmas, the Dietary Guidelines Advisory Committee finalized the 20202025 Dietary Guidelines for Americans (DGAs). These guidelines recognize what we already know: that beef has a role as part of a healthy diet. For the next five years, the DGAs will be a primary resource used to set nutrition guidelines for federal meal programs and provide direction for nutrition and health professionals. During the past year, NCBA worked to ensure a fair and transparent process and, because of that work, beef will remain at the center of the plate in school lunch programs and elsewhere. In any other year we would all be gearing up for the annual Cattle Industry Convention and taking a victory lap to celebrate our accomplishments. Unfortunately, while there is a lot of promise for 2021, we are still working to regain normalcy. All of you have heard by now that the convention was moved to August and we are hosting the virtual Winter Reboot in February to stay connected and learn about important industry topics. When I took over as NCBA president at the last convention in San Antonio, I did not know I was about to lead cattle producers through one of the toughest times of my generation. No one could have predicted what we as an industry were about to face but I have never turned down a challenge and I knew that I had a duty to guide our industry into more certain times. I want to give credit to all our members and this association for buckling down and continuing to produce beef. THE OFFICIAL PUBLICATION OF NCBA Before becoming president, I made it one of my goals to aggressively communicate the work NCBA does as the trusted leader and definitive 2020 NCBA Leadership: voice of the U.S. beef industry, and this year we President Marty Smith did just that. We put our member-driven policy President-elect Jerry Bohn process on display at Summer Business Meeting. Vice President Don Schiefelbein We delivered on our policy priorities and will Treasurer Joe Guild soon be releasing new ones. NCBA, like cattle Federation Division Chair Buck Wehrbein producers, constantly drives forward no matter Federation Division what. This was a hard year, but as producers we Vice-Chair Clay Burtrum showed the world our grit and we came through this stronger for it. Policy Division Chair Todd Wilkinson It has been my honor to serve as your Policy Division Vice-Chair Mark Eisele president this past year. I want to thank all our Immediate Past President Jennifer Houston members, state affiliates and NCBA’s volunteer Chief Executive Officer Colin Woodall leadership for giving me this opportunity of a lifetime. You are what makes this association Senior Editors John Robinson strong. I am more encouraged than ever by Jill Johnson where this organization is headed. I look forward Editor Kate Maher to seeing you all in person later this year. Contributing Writers Steven Johnson

Wendy White Creative Director Don Waite Graphic Designer Dancinee Jennings For ad sales, Shannon Wilson 303-850-3345, Nicole Bechtel 303-850-3465, 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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Sustainability.Yes, I Said Sustainability By Colin Woodall, NCBA CEO Well, if you are still reading past the title of my column, then we are making progress. The topic of sustainability is one we have been talking about for years and the response has been mixed. Some of you are interested in this topic, some of you get mad, and many of you just allow your eyes to glaze over. I believe all three reactions are warranted due to the many ways this topic has been presented. I have seen just about every presentation imaginable on sustainability, and to be honest, I have had all three reactions myself. I have seen the talks where cattle production is the root cause of climate change, and we must be more sustainable to save the planet. I have seen the talks where everybody else is to blame for climate change, and cattle production is actually the solution. There are presentations on consumer expectations, political ramifications, media hype and more. Every speaker has their own approach, their own appeal, and many times, their own science or facts. Political science seems to power far too much of this discussion. Remember when the Food and Agriculture Organization of the United Nations released Livestock’s Long Shadow back in 2006? That report erroneously stated that livestock is responsible for more greenhouse gas emissions than transportation. The U.N. report’s allegations against livestock have been debunked and discredited, but here we are 14 years later, and that report is still being used against us. Activists who have committed every ounce of their being to their cause are rarely swayed by facts. Political science is their preferred tool and that is why they are not deterred from using the U.N. report knowing it is wrong. Activists’ passion and commitment to their beliefs is one reason this topic is so difficult to navigate. It is hard to have productive and rational discussions about sustainability under passionate circumstances. To be fair, our passions run high, too. We work hard to protect our natural resources, and it does not sit well when our own commitment is questioned. The difference is that we live on the land, and actually manage these resources while the activists fight behind a computer screen. Our connection and dependence on natural resources is the reason we must lead and tackle sustainability head-on. As former NCBA president J.D. Alexander said, “If you’re not at the table, you’re on the menu.” Regardless of how you feel about climate change and sustainability, the issue is not going away. We hear about this from consumers, foodservice, retailers and the government. President Biden has made it abundantly clear that tackling climate change is one of his priorities. Each group has a different take on what sustainability is, so that gives us a unique chance to engage and take the field playing offense. Some perceive sustainability as nothing more than the government or other groups trying to tell us how to produce cattle. That perception is not wrong, but I believe we can change that viewpoint. Many of you are producing cattle on land that has been in your family for generations. If that is not sustainable, then what is? Longevity and success are how we play offense. Sustainability is about showcasing the great work this industry has done for years in protecting the land. We can produce the same amount of beef we did in 1977 with one-third fewer cattle. We improved our production practices to achieve this, and it is important to remember we did it without the government telling us what to do. We remain committed to continual improvement, so that means our industry will get even better at maximizing beef production on increasingly limited acres. Oh, and talking about acres, we must showcase the upcycling superpower of cattle. Upcycling is where we take plants of little or no value to us as humans, such as grass, and allow cattle to graze on them in order to convert their stored energy into the best-tasting protein on Earth. Our role in upcycling is one we can use to lead the discussion around cattle production and sustainability. I am going to spend more time in future columns digging into the facts we can use to lead this discussion, but for now, I am asking that you take another look at sustainability and recognize the strategic nature of charting our own course on this subject rather than having to play defense against more rules, regulations and restrictions. The time is now. Leaders lead!

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NATIONAL CATTLEMEN

Digital Command Center Tracks Food Trends in Media Through the Digital Command Center, NCBA, a contractor to the Beef Checkoff, regularly monitors coverage across traditional and social media for emerging issues, trends and opportunities. NCBA keeps a pulse on coverage around changes and innovations in the food industry and the resulting potential challenges and opportunities for beef. Last quarter’s media coverage around food and beef trends heavily centered around COVID-19, meat alternatives and sustainability. COVID-19 Impacts Nearly a year since the coronavirus pandemic began, COVID-19 is still impacting the food industry. During the past quarter, CNN Business reported that quick service restaurants brought back bargain deals to attract more customers, as concerns about the price of food rose. In December, with renewed shutdowns of in-person dining, restaurants were forced to get creative—some chefs even rented out hotel rooms for safe, private meals, Bloomberg reported. Food brands expanded contactless options. Throughout the fall of 2020, media reported on changes and innovations among fast food brands. Fox Business and Yahoo! News reported on fast food locations that shifted to a model of drive-thru or online-ordering only. Meanwhile, grocers also continued to invest in delivery, pick-up and online shopping. Mentions of “contactless experiences” increased more than 2,800% in traditional and social media in 2020. Articles about COVID-19 and beef have significantly decreased since the start of the pandemic. In December, media reported on the steps that processing plants took to protect workers, like sending at-risk employees home with pay and advocating for prioritization of employees for vaccine administration. Traditional media mentions of “COVID-19 and Beef” remain 83% lower than the peak in May. Eating with the Environment in Mind Food companies responded to consumers’ concerns

about their environmental impact. In response, fast food and quick service restaurants rolled out reusable packaging and unveiled new labels that show menu items' carbon footprint. In fact, traditional media mentions of “climatarianism”—a 2021 food trend identified by publications like Healthline—increased nearly 500% in the month of December alone. Industry advancements were also highlighted in media. In October, The New York Times featured sustainability advancements in the beef industry, and in November, The Wall Street Journal featured research on seaweed to reduce cattle's methane emissions. Additionally, in December, MSN covered the U.N. report that urged consumers to reduce food waste to lessen greenhouse gas emissions and famine conditions. Discover Magazine even encouraged consumers to eat offal to reduce food waste and become more sustainable. Meat Alternatives Plant-based alternative products expanded distribution. Media coverage was extensive in October as meat alternatives announced expanded distribution in China and other countries, as reported in articles from MarketWatch to Yahoo! Finance. Additionally, Bloomberg reported that large companies like Unilever were considering expanding their plant-based portfolios. Lab-grown meat also made headlines. In December, much of the media coverage about meat alternatives centered around the anticipation for lab-grown meat. Though there were approximately 10,000 articles about meat alternatives this past quarter, there was a decrease in mentions compared to the previous quarter. Still, plant-based meat alternatives make up less than 1% of protein sales. The Digital Command Center will continue to monitor these trends as they evolve and ensure the beef industry is aware of the impact media conversations may have on beef's reputation.

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 Corteva Agriscience™ www.corteva.com John Deere www.deere.com Masey Ferguson www.agcocorp.com/brands/massey-ferguson. Merck Animal Health www.merck-animal-health-usa.com Micro Technologies www.microtechnologies.com Moly Manufacturing www.molymfg.com

TRENDING IN FOOD & BEEF

Traditional and social media mentions of “climatarianism”—the practice of eating for the environment—increased nearly 500% in December.1

Roto-Mix www.rotomix.com

GOOD NEWS FOR BEEF Focus shifted to reducing food waste for consumers to reduce their environmental impact.

Lab grown meat received more media attention as Eat Just launched a labgrown chicken product in Singapore.

GOOD NEWS FOR BEEF Meat alternatives still represent less than 1% of the protein market share.2

COVID-19 Restaurants continue to reimagine operations to abide by pandemic guidelines. Media mentions of contactless experiences grew 2,800% in 2020.1 The supply chain took steps to protect employees as packing plants sent at-risk workers home and anticipation grew for the vaccination of food service workers.

Zoetis Animal Health www.zoetis.com ALLIED INDUSTRY COUNCIL Allflex Livestock Intelligence Bayer Environmental Sciences CHR HANSEN Elanco Animal Health Farm Credit Council

Huvepharma, Inc. Lallemand Animal Nutrition Norbrook, Inc. Rabo AgriFinance RAM Trucks

ALLIED INDUSTRY PARTNERS

PLANT-BASED ALTERNATIVES Meat alternatives continued to drive headlines as Beyond Meat expanded to Costco and Food Dive named Impossible Foods Innovator of the Year.

Purina Animal Nutrition LLC www.purinamills.com/cattle Ritchie Industries Inc. www.ritchiefount.com

SUSTAINABILITY The Lancet Countdown report, which was featured in outlets like Bloomberg, suggested reducing red meat consumption to lessen emissions.

New Holland Agriculture www.newholland.com

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

44 Farms ADM Animal Nutrition, Inc. AgriPrime Insurance Agency Agri-Pro Enterprises of Iowa, Inc. Alltech, Inc. American Hereford Association American National Insurance American Wagyu Association Anipro Arm & Hammer Animal and Food Production Arrowquip Bank of America Merrill Lynch Barenbrug USA Bass Pro Shops/Cabela’s Behlen Manufacturing Bimeda BioZyme Cargill Animal Nutrition Case IH Certified Hereford Beef CME Group DATAMARS Livestock Dell Technologies Diamond V ENDOVAC Animal Health Food Safety Net Services Furst-McNess Company Gallagher Gravely, an Ariens Company Greeley Hat Works Growsafe Systems LTD Hayden Outdoors Real Estate Hyundai Construction Equipment IMI Global Insure My Forage International Stock Food

Kent Nutrition Group Krone Kubota Tractor Corporation Kunafin “The Insectary” Laird Manufacturing Meat&LivestockAustralia,Ltd. Micronutrients National Corn Growers Association Neogen New Generation Supplements Noble Research Institute Novus International Parker McCrory PBS Animal Health Phibro Animal Health Priefert Ranch Equipment Provimi QualiTech, Inc Quality Liquid Feeds R&R Machine Works Red Angus Association RFD-TV Roper/Stetson/Tin Haul Apparel and Footwear Stone Manufacturing Superior Livestock Syngenta Tarter Farm and Ranch Equipment The Hartford Livestock Insurance The Vit-E-Men Co. Inc./ Life Products Trans Ova Genetics U.S. Premium Beef Vermeer Vitalix Westway Feeds Y-Tex Zinpro Performance Minerals

PRODUCT COUNCIL

1. 2.

#011321-06 National Cattlemen’s Beef Association. (2020, October 31). Environmental Sustainability Dashboard. Retrieved from Meltwater: www.meltwater.com IRI Market Advantage Total Store View + Perimeter, Total Meat

American Foods Group Cargill Meat Solutions Certified Angus Beef Culver’s Darden Restaurants empirical Fareway Stores, Inc. Five Guys

McDonald’s Corporation National Beef Packing Omaha Steaks Performance Food Group Preferred Beef Group Tyson Fresh Meats Wendy’s International

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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.

The Federation Working for You There are a lot of questions out there about the Beef Checkoff and the role of the Federation of State Beef Councils. As we kick off a new, and hopefully better year, it may be a good time for a Federation refresher, along with updates from state partners. Hopefully, this collection of information demonstrates how the Federation helps build the state and national partnership.

Federation Refresher First and foremost, the vision of the Federation of State Beef Councils is to build beef demand by inspiring, unifying and supporting an effective state and national Checkoff partnership. The cornerstone of the Federation is giving states a voice in the national Beef Checkoff. In addition to a strong vision, the Federation’s Board of Directors approved the following Statement of Beliefs. • We believe in the success of a strong state and national partnership resulting in increased consumer demand for beef and higher consumer confidence. • We believe in producer control of checkoff funds through the Qualified State Beef Councils, which are the foundation of the Beef Checkoff. • We believe in the industry Long Range Plan as a guidepost for the Beef Checkoff and the principle of “one vision – one plan – one voice”. History State Beef Councils began to develop in 1954 and more than 30 existed before the Beef Checkoff became law in 1986 and received 79% producer approval during a 1988 referendum. Prior to the Beef Checkoff, producer dollars for national promotional efforts flowed primarily from the state level. Today, states continue to ground the program.

It’s where the $1-per-head checkoff assessment is collected, and where the decision-making process begins for this grassroots, producer-driven program that markets beef around the world. The Federation began in 1963, and its home was further defined in the Beef Promotion and Research Order as the Beef Industry Council (BIC) of the National Live Stock and Meat Board (NLSMB), or any successor organization to the Beef Industry Council, which includes its state affiliates the Qualified State Beef Councils (QSBCs). In 1996 the industry recommended merging the BIC and the National Cattlemen’s Association to create efficiencies and develop one voice for the beef industry. Through its bylaws, NCBA’s Federation Division has authority over all checkoff matters within NCBA. As a division of NCBA, the Federation of State Beef Councils represents the 44 Qualified State Beef Councils. Collectively, the QSBCs include over 700 state board members and these board members represent a wide range of industry organizations and every segment of the beef industry. Funding In keeping with a long history of pooling checkoff dollars from QSBCs to promote beef “where the consumers are”, states invest in the Federation to enhance the national checkoff and leverage producer

Hungry “Coasties” Feast on Beef Members of the Florida Beef Council (FBC), Florida Cattlemen’s Association and Florida CattleWomen prepared and served an appreciation lunch for 250 U.S. Coast Guard service members in December. The event was held at U.S. Coast Guard Station Port Canaveral, the world’s second busiest cruise port next to the iconic Kennedy Space Center. Although the star of the meal was freshly grilled beef steaks, service men and women also enjoyed local delicacies such as frog legs, locally harvested “swamp cabbage” (aka heart of Sabal Palm), Florida grown sweet corn and homemade baked goods from members of the Florida CattleWomen. “Honoring the hard work and sacrifice of our service members is important throughout the year but certainly extra special at the holidays,” says DeAnne Maples, FBC director of beef marketing and promotion. “I think the Coast Guard is often an overlooked branch of service. As Floridians, we live on a giant peninsula, and our Coast Guard ‘Coasties’ are pretty important to ensuring the safety of our waters.”

Find the Federation of State Beef Councils 2020 Investor Report at ncba.org/federationannualreport.aspx 2020 Federation Division Board

dollars through a coordinated partnership.

Wehrbein, Buck Burtrum, Clay Anderson, Rosemary Baxter, Keith Bishop, Andy Black, Dean Blalock Jr, Ralph Boydstun, Terry

Bradshaw, Lee Brenny, Katie

Buckley, Brent A Carter, Darren Cooksley, George Cooley, Tim Creighton-Smith, Kathy

Chairman, NE

Vice-Chairman, OK Nebraska Beef Council, NE Missouri Beef Industry Council, MO Kentucky Beef Council, KY Iowa Beef Industry Council, IA North Carolina Beef Council, NC Illinois Beef Council, IL

Idaho Beef Council, ID Minnesota Beef Council, MN Hawaii Beef Industry Council, HI South Carolina Beef Council, SC Nebraska Beef Council, NE Arizona Beef Council, AZ Montana Beef Council, MT

Lickley, Bill Link, Sue Lyman, Alan Maag, Douglas M

Maddock, Travis Martin, Nathan K Martinell, Kiley McClintock, Stacy

McDowell, Pat McGregor, Scott

McMillan, Becca Miller, Sallie Moorhouse, Ryan

Morris, Brett

of Directors Idaho Beef Council, ID Colorado Beef Council, CO

Region III - Federation, IL Oregon Beef Council, OR Region VII - Federation, ND Missouri Beef Industry Council, MO Montana Beef Council, MT Kansas Beef Council, KS Texas Beef Council, TX Iowa Beef Industry Council, IA Oklahoma Beef Council, OK

Region V - Federation, CO Region IV - Federation, TX Oklahoma Beef Council, OK Kansas Beef Council, KS

Services/ Resources In addition to benefitting from global marketing and research, QSBCs or t 202 0 Inve stor Rep have access to a variety of shared services through NCBA’s Federation Division such as communications, governance, leadership development, creative services, website development and promotional materials. The Federation Division works closely with QSBCs on a daily basis and provides training opportunities such as the annual Partnerships in Action conference, State Beef Council Director orientation, monthly program update webinars and producer education events. Crow, Janet

Cutler, Michelle Dalton, Jay Daniel, Gary

Deering, Gary Dinis, Britt Downey, Barb

Dvorak, Weston Ellis, Spencer Ferguson, Matt Forester, Bryan Fountain Jr, Robert Q

Gaffney, Val Gattis, Dan George, Lynn

Gilmer, Andrew Graham, Jamie

Hanrahan, Daniel Patrick Harris, Dan

Hastings, Brad Hellyer, Timmery Horstman, Joe Jeffcoat, Chris Johns, Flint Johnson, Jeff

Johnson, Joe

Johnson, Laurie Jones, Larry Kane, Jess Morgan

Keith, Joel Kellom, Andy Krutz, Ken Larios, Jesse

Lastovica, Steven R

Missouri Beef Industry Council, MO Nebraska Beef Council, NE Nevada Beef Council, NV

Tennessee Beef Industry Council, TN South Dakota Beef Industry Council, SD Colorado Beef Council, CO

Kansas Beef Council, KS North Dakota Beef Commission, ND Wyoming Beef Council, WY New Mexico Beef Council, NM Texas Beef Council, TX Georgia Beef Board, GA Wisconsin Beef Council, WI

Texas Beef Council, TX Wyoming Beef Council, WY Virginia Beef Industry Council, VA Ohio Beef Council, OH Iowa Beef Industry Council, IA Kansas Beef Council, KS Texas Beef Council, TX Wyoming Beef Council, WY Indiana Beef Council, IN Pennsylvania Beef Council, PA Florida Beef Council, FL Idaho Beef Council, ID

Mississippi Beef Council, MS South Dakota Beef Industry Council, SD Kansas Beef Council, KS Oklahoma Beef Council, OK Kansas Beef Council, KS Montana Beef Council, MT

Moyer, Jaret

Mundhenke, John Niess, Scott O'Brien, Kyra Oeschger, Dale

Para, Liz

Patton, Gary Payne, Gloria

Price, Clark Ramm, James J Reeves, Larry

Rehder, Steve

Richards, Brandi Robison, Allan

Rudolph, Jeff Rush, Ivan

Temme, Douglas Terry, Don Thomas, Tracy Thomas, VeaBea Thompson, John

Uselton, Russ

Voll, Mark J Walker, Steve Walth, Becky

Weltmer, Philip Weston, Nikki

Wiedel, Gregg Wiley, Garry

Wilson, Chloe Wintch, Mark

New York Beef Council, NY

Winter, Richard Yanta, Zachary

Texas Beef Council, TX

Yates, Jerry Yeoman, Byron

California Beef Council, CA

Kansas Beef Council, KS Iowa Beef Industry Council, IA

Kansas Beef Council, KS Michigan Beef Industry Commission, MI Washington State Beef Commission, WA Arkansas Beef Council, AR North Dakota Beef Commission, ND

North Dakota Beef Commission, ND Nebraska Beef Council, NE Alabama Cattlemen's Association - Beef Council, AL Iowa Beef Industry Council, IA Texas Beef Council, TX Ohio Beef Council, OH Nebraska Beef Council, NE Nebraska Beef Council, NE Nebraska Beef Council, NE

Region II- Federation, TN Kansas Beef Council, KS South Dakota Beef Industry Council, SD Louisiana Beef Industry Council, LA Tennessee Beef Industry Council, TN North Dakota Beef Commission, ND

Region I - Federation, NY South Dakota Beef Industry Council, SD Kansas Beef Council, KS Utah Beef Council, UT

Nebraska Beef Council, NE Michigan Beef Industry Commission, MI Texas Beef Council, TX Region VI- Federation, UT Texas Beef Council, TX

Texas Beef Council, TX West Virginia Beef Industry Council, WV Oklahoma Beef Council, OK

There’s a Cowboy in the Kitchen The Montana Beef Council (MBC) created Cowboy in the Kitchen to answer questions about beef and beef preparation and help consumers see and understand easy ways to prepare beef for an excellent eating experience. MBC is pairing a chef and a cowboy in a kitchen setting to tackle topics and teach tricks to boost confidence (and beef sales) through simple video instruction. The dynamic interaction of the chef and the cowboy play very well together, and it is a comfortable and witty environment for learning. The first series focused on the Prime Rib and helped consumers learn how much to buy for their gatherings, proper cutting instruction, seasoning tips and roasting. Stay tuned! There will be plenty more to come with this fun and educational series. Learn more at montanabeefcouncil.org.

One Simple Ingredient In response to growing media attention given to alternative protein products, the Kansas Beef Council (KBC), under the direction of voluntary producer board members, created a nutrition-focused campaign that highlighted the positive nutritional attributes of beef and one key area where alternatives cannot compete; beef has one simple ingredient, beef. Titled “One Simple Ingredient”, the campaign consisted of two commercials, multiple articles and several collaborations with well-known digital influencers. The first video commercial of the series bolstered the taste attributes and high-quality protein that fuels the lifestyles and adventures of young Millennial and Gen-Z professionals, while the second focused on how beef’s nutritional package fuels the success of student athletes. The videos have been promoted through multiple platforms, including YouTube, digital radio, Google advertising and social media. In addition, the campaign aired on local broadcast networks during Kansas City Chiefs and Kansas State University football games. The videos have been seen over 2 million times and the campaign has generated more than 3.5 million impressions in a 12-month period. KBC is continuing to promote the campaign throughout 2021. Visit http://bit.ly/kansasbeef for more information on the campaign.

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Top Five Genetic Selection Considerations for Cattlemen Cattle producers are experiencing higher input costs and tighter profit margins. With the need to protect their bottom line, increase productivity, and improve sustainability outcomes, genetic selection tools and strategies offer a compelling path to help accomplish those goals. There are a variety of options and resources available for producers that are cost effective and relatively easy to implement in any herd. This article outlines some of those options which, alone or in combination, could benefit producers. The highlighted resources below: breeding objectives, crossbreeding, utilizing Expected Progeny Differences (EPDs) and/or genomics and physical selection tools, are a few examples to consider. Several thought leaders in cattle breeding and selection contributed their ideas on the importance of incorporating these strategies or technologies.

strengths and weaknesses of a herd will assist when identifying a breeding objective. “A breeding objective, and identifying the associated ERT, helps producers narrow their focus when selecting sires to enable profitable genetic selection decisions,” Dr. Spangler concluded. "Furthermore, deciding the target market will aide in making the right choices today to influence profitability in the future."

2. Crossbreeding Crossbreeding is both a costeffective and impactful strategy when looking to improve the efficiency and overall sustainability of a commercial herd. The heterosis or hybrid vigor of 1. Breeding Objective crossing two or more cattle breeds Getting started, it is critical to have clear and helps breeders optimize a number of achievable goals in mind. Are you looking to generate traits. Producers can achieve enhanced bulls for the commercial cattlemen, focus on heifer performance and get those extra development, raise high growth cattle to be fed out, or pounds in an extremely cost-effective method. possibly a combination of the three? The individuality “Crossbreeding, specifically leveraging the and independent nature of cattle producers lends itself advantages of heterosis and breed complementarity, to numerous and varied ways by which to achieve the continues to be an important tool for beef producers same goal. “A well-formed breeding objective clearly to improve production efficiency and sustainability sets production and marketing targets and identifies in their herds. The advantage of maternal heterosis labor and environmental constraints,” said Dr. Matt offers substantial gains in reproductive performance Spangler, Extension Beef Genetics Specialist with of crossbred heifers and cows and extended University of Nebraska. “Forming a breeding objective production longevity,” said Dr. Bob Weaber, Professor helps identify and Extension economically Geneticist at relevant traits Kansas State (ERT), those traits University. “The A well-formed breeding objective clearly sets that have a direct US Meat Animal cost or source of Research Center production and marketing targets and identifies labor revenue associated estimates and and environmental constraints. with them.” others support As a costan increase in effective way to weaning weight connect to the per cow exposed target market, the of more than 25% breeding objective will help the producer decide for F1 cross cows over their straightbred counterparts. which traits are most desirable for their program. Although many breeds have been selected towards Depending on the customer, certain traits and common objectives, heterosis still exists among characteristics will have a greater importance. There breeds and is only available to producers using are many factors that need to be considered when crossbreeding systems.”  identifying a breeding objective. A producer will Producers should weighB:10.63" the benefits of need to pinpoint the environment of their operation. crossbreeding in reaching their breeding objectives T:10.38" Available resources, grazing seasons and climate will against adding additional management when S:9.88" system and breed determine the type of cattle a producer could raise. considering which crossbreeding Additionally, analyzing the current performance, inputs to utilize. Crossbreeding schemes may be

simplified by starting with or purchasing crossbred females, and using bulls of differing breeds, or potentially crossbred (often called hybrid or composite) bulls on those females. Many breeds now participate in multibreed genetic evaluation systems which could make bull evaluation less complicated. If selecting a breed that does not participate in the multibreed evaluation approach, the US Meat Animal Research Center’s across breed adjustment table can be used to evaluate genetic inputs from different breeds. “Genetic improvement programs for beef cattle at the commercial level should include both a plan to leverage heterosis and breed complementarity as well as additive merit of parent stock selected using EPDs and Indexes within breed,” Weaber said. 3. Expected Progeny Differences/Indexes EPDs are a tool used to compare cattle within the same breed. With EPDs a producer can forecast the genetic potential of an offspring, based on the pedigree and performance of parents and other related cattle, paired with individual performance within an offspring’s contemporary group. Breed associations serve members as the collection base for performance data and subsequent EPD calculation, because EPDs are breed and pedigree dependent. Serving as the hub of information, breed associations have different programs available for a producer to utilize when optimizing their use of EPDs. “EPDs are a powerful tool and should be used Continued on page 9

“If we’re being truthful, we’re grass farmers. We manage the land so cattle can harvest it.” KEVIN YON YON FAMILY FARMS, SOUTH CAROLINA

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Governance

NCBA Region VI Report By Tim Koopmann, Region VI Policy Vice President California Cattlemen’s Association The California Cattlemen’s Association (CCA), along with a coalition of business groups, was instrumental in defeating Proposition 15 during the November election. If passed, Prop. 15 would have been the largest tax increase in California history and saddled ranchers with increased property taxes. CCA successfully advocated for the defeat of proposed legislation that sought to reduce the availability of food by-products for use in animal feed and for additional regulations under the California Environmental Quality Act. Wlidfires continue to plague the state. CCA, with support from the California Cattle Council, has been successful in positioning ranchers and livestock as key to increasing management to create a more fire resilient state. Democratic legislators are eager to work with CCA to increase grazing throughout the state, provide liability protection for prescribed burns, and provide ranchers access to their livestock during fires. CCA will be laser-focused on wildfire legislation throughout 2021. Drought conditions persist in California. CCA will be advocating to improve drought relief payments in the next Farm Bill. Hawaii Cattle Council, Inc. Struggling with drought, all counties currently qualify for application for Livestock Forage Disaster Program assistance.

The drought is also exacerbating the issue of overpopulation of invasive deer; the Hawaii Cattle Council (HCC) is attempting to acquire funding for deer-proof fencing and increased or expanded hunting to reduce the pasture damage. This problem is statewide, with the greatest impact being in Maui. State land suitable for grazing has been primarily administered by the Department of Land and Natural Resources with poorly drafted and very short-term lease structure. A legislative act passed over 18 years ago stated that such grazed lands were to be transferred to the Department of Agriculture. Limited transfers have occurred, and HCC is working to achieve enforcement of the Act. HCC is seeking funding for continued research and expanded development of treatment protocols for the invasive Two-lined Spittle Bug. Nevada Cattlemen’s Association President Tom Barnes and Interim Executive Director Darci Riggins reported that the Nevada legislature will meet this year beginning Feb. 1, 2021. The session is limited to 120 days. Already, there are numerous water rights bills being discussed which may challenge priority status and a definition of water highest and best use. The Nevada Cattlemen’s Association (NCA) supports the water laws currently in place. The Nevada Department of Agriculture and the Animal Industry sub-division has undergone a change of leadership that has placed non-livestock staff in strategic positions. The NCA will be diligent in assuring that the cattle community needs are met. Legislation has already been drafted that would reduce the number of livestock producer seats on the board and NCA will strongly oppose this action. The NCA will sponsor and manage the 55th Annual Fallon Bull Sale to be held on February 20, 2021. Utah Cattlemen’s Association Drought conditions have persisted, with central and southern Utah reporting the second driest water year on record. Weaning and yearling weights were lighter and cull cow sales were higher than average. Cattle feeders in Utah took a financial beating this year. Several feeders have indicated that they will cease feeding operations and have not restocked. The major cull cow processing plant in Utah is rumored to be closing in the spring of 2021. This will impose additional marketing costs, including freight, for

Trust is Basic to Good Governance When someone says yes to serving on a board of directors, the magnitude of the responsibility shouldn’t be ignored. A word used often in governance is fiduciary, which is the Latin word for trust. It encompasses much more than financial responsibility. Duty is also a word often affixed to fiduciary as in the three foundational duties of Care, Loyalty and Obedience. Duties every board member should take seriously. Duty of Care – First, a board member should care enough to show up. This may seem obvious, but some do not take this seriously and think attendance is optional. In some cases, a board member can be held liable for a decision of the board even if they weren’t present. Second,

a board member should prepare for the meeting. If materials are distributed ahead of time, read them. Finally, exercise independent judgment – otherwise why have a board if only one opinion prevails? Duty of Loyalty – An individual’s loyalty on a board is to that board. A board member commits to acting in good faith as well as declaring their allegiance to the organization’s purpose and well-being. When making decisions, a board member should focus on what is best for the entire organization and not just the group that may have appointed them. Duty of loyalty also includes respecting and supporting majority decisions of the board – even when on the losing end of a vote. Conflict of interest must also be addressed if someone uses the office to promote or advance a transaction between the

breeding cull sales. It is readily apparent that the state needs additional packing and processing capability; the Utah Cattlemen’s Association (UCA) will be looking for funding to incentivize business development. Many small plants are booked months in advance. Many ranchers fear that the results of the federal elections will lead to a massive reassignment of land to the Bears Ears Monument and a continued erosion of federal lands grazing acreage. Utah has a new governor who should be agriculture friendly, however, he has appointed a new Commissioner of Agriculture, the fourth in three years. Producers need stability in this position. Utah has two new congressmen, neither having agricultural knowledge or experience. UCA will work with them to make sure cattle producers needs are heard. Spring bull sale season is upon us, with reduced cow numbers in the state as well as fall calf prices and weaning weights that were disappointing; seedstock producers have concerns. New Mexico Cattle Growers Association The majority of the state remains under severe drought conditions. Cattle markets remain low but steady, with many cull cows, pairs and bred cows/heifers being liquidated by feed strapped producers. The New Mexico State Livestock Board has imposed mandatory negative trichomoniasis test for bull sales other than those destined for harvest. The State veterinarian has set eradication as the goal. The New Mexico Cattle Growers Association held an aggressive membership drive for younger members and hired Jonas Moya as the organization’s executive director in July. Arizona Cattle Growers Association This past year was rough with COVID-19, a total state average of four inches of moisture with parts of Arizona going around 200 days without measurable precipitation, and cattle market declines. Breeding stock culling has been intense with many producers questioning sustainability at their given scope and scale of operation. The Arizona Cattle Growers Association is focusing on engaging the younger generation for creativity. organization, themselves, relatives or associates. This also includes voting on items that might benefit the individual, their family or company they work for specifically. It is best to recuse oneself from the vote. Duty of Obedience – A board member must follow the organization’s governing documents to carry out its mission and to ensure that funds are used for lawful purposes. In other words, read and implement the bylaws, articles of incorporation and any other documents that pertain to the function and governance of the organization. Ignorance does not hold up in court. Comply with state and federal laws relating to the organization. Serving on a board is a privilege – yes, even if someone has been volunteered by others to serve. A good board member will always take fiduciary responsibility seriously for the good of the organization.

NATIONAL CATTLEMEN 9

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Top Five Genetic Selection Considerations for Cattlemen Continued from page 7 appropriately. Single trait selection can be very effective at changing a herd for that trait, but may have detrimental effects on other important traits,” said Extension genetics professor Dr. Darrh Bullock with the University of Kentucky. “For example, selecting for extreme milking ability would increase the milk production in replacement females, but if used in a marginal nutrition environment it would likely result in reduced reproductive performance. It is critical that bulls are selected for multiple traits simultaneously that meet the producer's management, market and environment needs.” The accuracy of EPDs is reliant on the number of offspring that parent has, and the data reported on the offspring. Additionally, economic (often dollar based) indexes are available for many breeds. Indexes measure traits, or a combination of traits, and combine those traits with economic values of production and/ or market value contributing to that index. Indexes are a bit more complex but may simplify selection decisions if an index aligns well with program breeding objectives. EPDs and indexes provide more complete and more objective information than an individual weight measure, usually summarizing multiple data sources. They provide information which is much more accurate at defining value than could be achieved by visual appraisal. A large selection of EPDs and indexes are available which allow producers to select for their ultimate objective, whether raising steers, replacement heifers or generating breeding bulls. 4. Genomics and Genomically Enhanced EPD Genomics is a newer technology pairing DNA information and EPDs. Genomically enhanced EPDs address the challenge of determining specific genes an animal has inherited from its parents and how that influences relevant traits. This increases predictability and accuracy of EPDs in young bulls or heifers who have not yet had a single calf cutting down on the wait time for a producer to more accurately evaluate the genetic potential of calves. Genomic testing adds information for many traits that is equivalent to 1025 offspring, without ever having an offspring hit the ground. Additionally, testing is becoming more widely available for commercial or crossbred cattle applications. “Technology available to peer into and understand the bovine genetic code is evolving rapidly,” said John Genho, director of the Genetic Prediction Group at NEOGEN Genomics. “We are seeing more competitively priced selection tools come to market, like Envigor,

which is designed to convey a solid estimate of hybrid vigor, or Igenity Feeder, that can inform feeder cattle value based on terminal traits.” Those who may still be skeptical of this new technology should seek out an Extension genetics expert in your area or someone who has used this technology. This is a good way to ask questions and become more confident in genomic tools. Genomics and genomically enhanced EPDs are continuing to develop and improve. This evolving technology will grow in its continued use and become more cost effective with each passing day. 5. Phenotypic Selection When developing a herd, a producer must consider how the physical attributes of their herd correlates with the environment. The physical characteristics of cattle give the producer an indicator on the practicality or longevity of the stock. There are many physical markers that help determine if an animal is sound, healthy and functional. Analyzing the herd’s body condition and structural integrity are necessary when building a mature cow herd. Innovative ways to measure and incorporate physical traits into EPDs are now emerging. Several breed associations have been developing ways for producers to implement this type of selection pressure into their herds. Kelli Retallick director of genetic and genomic programs with Angus Genetics, Inc said, “For many years breed associations have done a fantastic job creating tools to select for output traits like growth and carcass quality. Recently, the American Angus Association has set its sights on creating selection tools that go beyond the norm and focus on increasing the functional adaptability of cattle living in different environments. Whether it is using genetics to improve foot structure, hair shedding scores to increase heat B:10.63" and fescue tolerance of cattle in the Southeast or pulmonary arterial pressureT:10.38" measurements to select animals that more equipped to live in the mountain S:9.88" ranges of the Rockies, these tools can provide

cattlemen ways to better match genetics for their specific environment.” In addition to traditionally reported EPDs, breed associations are continually releasing new EPDs to assist breeders in making progress in phenotypic improvements. Examining a herd’s physical traits is as much of an art as it is a science, but new selection tools can help speed the progress for the discriminating cattlemen. Selecting cattle that are visually appealing and well-suited to their environment can yield both input savings and market success, driving operational sustainability. In closing, producers who are managing a breeding herd should always look for methods to improve efficiency and increase profitability. Beginning with the end in mind has long been sage advice, no matter the endeavor. Leveraging genetic selection tools can provide a clear path to obtaining clearly defined breeding objectives. While a single silver bullet may not exist, producers have more tools available than ever before to aid their efforts, and the flexibility to utilize any or all the provided resources to optimize herd performance.

“Weeds rob me of my investment — taking up nitrogen and water and crowding out grass.” DR. NANCY JACKSON, DVM SOUTHERN CROSS FARM, MISSISSIPPI

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Market Matters

December Hay Stocks Decline

By Katelyn McCullock, Director of the Livestock Marketing Information Center USDA National Agricultural Statistics Service (NASS) released the January Crop Production report containing Dec. 1 hay stocks and the annual crop production report, which firmed up hay supplies and released new alfalfa seedings data. These two reports are critical to the hay situation and outlook for the coming year. December hay stocks showed a decline of about 500,000 tons, or half a percent from last year. This is the fourth smallest Dec. 1 inventory number since the dataset began in 1973, and is only surpassed by the 2012 drought, 2018, and 1976. The Western states saw noticeably smaller stocks than a year ago, but declines were not limited to drought hit areas. On a percentage basis, Nevada showed the largest decline, down 57%, followed by New York and Delaware, down 38% each, New Mexico, down 36%, and Connecticut down 30%. Twentyone states had inventories below PERCENT CHANGE DECEMBER 1 HAY STOCKS (2019-2020) last year, half of VT -12 which were west NH 20 MA 9 of the Mississippi RI 0 CT -30 River. On a NJ 29 DE -38 tonnage basis, MD -8 Missouri lost the largest absolute value at 900,000 tons, but only a 13% drop from the large stocks of 2019. Five states lost half a million tons or more. US Total -0.6 The annual crop production 1/14/21 Livestock Marketing Information Center report put final tallies on harvest acres, yields and production figures after a dry year. Total U.S. hay acres (other and alfalfa) declined for the third year in a row in marketing year 2020/21 coming in at 52.2 million acres the smallest number in the 47-year data set. Other hay acres increased slightly, while alfalfa acres declined 513,000. This is also the smallest number of alfalfa and alfalfa mixtures harvested in 47 years. Despite drought impacting a large portion of the U.S., national yield did not lose much ground, dropping only 1.2% from last year in all hay. Both other hay and alfalfa/alfalfa mixes lost ground. Alfalfa mixes registered at 3.27 tons per acre; a decline from 3.28 last year. Other hay lost slightly more productivity. Yields fell from 2.07 in 2019 to 2.05 tons per acre. The resulting production loss in alfalfa from lowered acres and yields was a 3.3% drop from the prior year. Other hay production was also lower, 0.3%, as increased acres did not make up for yield declines. The outlook for hay is likely a higher cost profile for livestock producers than last year. The shortness in the stock numbers creates the opportunity for hay supplies to be exceptionally tight in some areas such as the West ahead of new harvest opportunities in 2021. At press time snowpack data was indicating lower than average snowfall that may further complicate drought stressed hay acres from 2020. The recovery period for those areas will depend on the level of damage, but other hay acres will be more at risk as most of the alfalfa acres are irrigated. Hay prices may lower with good PERCENT CHANGE NEW SEEDINGS ACRES forage production (2019-2020) over the 2021 VT 25 NH 0 summer, but a MA 0 CT 0 second drought NJ 0 DE 0 in the West could MD 0 potentially cause prices to rise. LMIC forecasts call for the season average prices to be similar to a year ago, but seasonal forage production will play a role with higher US Total -11.5 prices likely in the spring and early 1/14/21 Livestock Marketing Information Center summer. Feed grain pricing is also likely to support hay prices, especially alfalfa in the coming months. Corn and soybeans prices have escalated substantially over the last couple of months and are not expected to withdraw until planting or after. Alfalfa tends to have a higher correlation with feed grains than other hay. Lastly, the new seeding figures released by USDA indicated alfalfa acres are unlikely to increase. New seedings declined 285,000 acres in 2020. The largest single decline of any state was Wisconsin lowering new seedings by 80,000 acres, followed by Nebraska, down 40,000 acres. Continued lower alfalfa acres is expected to pressure supplies in the coming year. Export markets have shown in the past the ability to outbid domestic livestock needs, which may come into play again for high quality feed. Through the first three quarters of 2020, compared to the same timeframe in 2019, alfalfa exports grew by 6.4%. Total other hay exports declined slightly. China continues to be an aggressive US HAY STOCKS AND PRODUCTION purchaser of alfalfa Crop Year from the U.S. those Mil. Tons exports are up 57%. 100 China’s purchases in the quarters one-three of 2020 75 accounted for 42% of total U.S. alfalfa exports. If strong buying continues 50 from abroad, this too supports higher hay prices in the 25 next marketing 2016 2018 2020 year and will December 1 Hay Stocks Alfalfa Hay Production Other Hay Production limit downward Data Source: USDA-NASS, Forecasts by LMIC 01/12/21 movement of hay Livestock Marketing Information Center prices.

Corn and Soybeans – Supply and Demand Changes By Troy Bockelmann, Analyst, CattleFax There were significant changes in the balance sheet for both corn and soybeans in the USDA crop production and WASDE reports in January, resulting in tighter stocks-to-use levels. Corn: On the supply side, one unexpected change was a 76-millionbushel increase to 2019/20 feed and residual. This reduced the 2020/21 beginning stocks by the same amount. While expectations for a smaller corn yield were expected, the magnitude of the change was a surprise. Corn yield was reduced by 3.8 bushels to 172 bu./acre. As a result of the decreased beginning stocks and yield change, total corn supply was reduced by 400 million bushels to 16.13 billion bushels. To offset some of the supply decrease, corn used for ethanol and exports were both decreased by 100 million bushels, while feed and residual saw a 50-million-bushel decrease. Ending stocks for the 2020/21 market year are estimated at 1.55 billion bushels, down 150 million bushels from December and the lowest since the 2013/14 market year. Stocks-to-use moved from 11.5 percent to 10.6 percent.

Data Source: USDA-NASS

Soybeans: On the supply side, soybean yield was estimated at 50.2 bu./ acre, down 0.5 bushels from the December estimate. With this change, soybean production was reduced by 35 million bushels, which was partially offset by a 20-million-bushel increase in soybean imports. Soybean residual saw a reduction of 13 million bushels. On the demand side, soybean crush increased 20 million bushels and exports increased by 30 million bushels. If realized, both exports and crush would be record levels. With these supply and demand changes, ending stocks were reduced 50 million bushels to 140 million bushels. Given current demand, this is roughly 11 days of supply and the lowest since the same period as corn – 2013/14. Stocks-to-use are currently estimated record low for this time at 3.1 percent, down from 4.2 percent in December. 2013/14 final stocks-to-use were 2.6 percent but did not reach that level until the market year was complete.

Data Source: USDA-NASS

Global Supply: Argentina and Brazil are also large producers of both corn and soybeans. Dry weather in South America will continue to limit crop potential in this region. The USDA reduced production expectations for both corn and soybeans in Argentina and for corn in Brazil. More changes are likely to come if the weather patterns do not change. Global stocks-to-use are tightening for both corn and soybeans. World corn stocks-to-use in 2020/21 are currently estimated at 24.6 percent, down from 26.7 percent the year prior and the tightest in the last seven years. World soybean stocks-to-use are estimated at 22.7 percent, the tightest in nine years. Price: Soybean stocks-to-use are tight, and corn stocks-to-use are nearing tight levels. Prices have responded, with both corn and soybeans trading at multi-year highs. What/when is the top in the market is the question being pondered today. Unfortunately, the answer to that question is likely further into the calendar year. Momentum for the March soybean contract is the most overbought for this week in history and corn momentum is the second most overbought, second to 2008. A correction could occur, but in 2008 both corn and soybeans had higher highs ahead. Given the tighter supplies, and uncertainty ahead, the market will need to ration the available supplies. There is risk of tighter stocks-to-use in the next market year if acres or yield are not adequate. The market needs to secure acres in 2021, and likely confirmation of a developed crop to see a significant reduction in price. While fundamentally, futures prices are in the expected range at these stocks-to-use levels, minor changes would have a greater impact on price. Technically, spot corn futures have resistance at $5.50 bu. and spot soybeans near $15.00. Spot corn futures have solid support near $5.00 followed by $4.50 and soybeans support is near $13.00/bu. Risk managers will need to watch these markets closely to determine if these levels are violated.

NATIONAL CATTLEMEN 11

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February Outlook By Don Day, Jr. Meteorologist

Editor’s Note: NCBA members can read weekly updates from meteorologist Don Day, Jr. by logging onto www.NCBA.org. For most of January, the lower 48 states and a large part of Canada was able to avoid any prolonged severe cold and snow. In fact, it was not until the last half of January before the snow and winter storms started to become more frequent. This recent trend to a more active winter pattern with more snow and more frequent cold is likely to persist into February. During the first half of January, the coldest and most severe winter weather was on the other side of the globe as record cold was noted in many areas of China, Siberia and parts of northern and eastern Asia. Over most of the U.S. and Canada, however, temperatures in many areas through the first three weeks of the month were above average and snow was scant. However, the last couple of weeks of January finally started to bring an increased frequency of winter weather conditions, especially across the northern tier of the U.S. from the Pacific Northwest east across the Northern Rockies, Northern Plains and into the Great Lakes. The trend toward colder and more active winter weather at the end of January will likely persist into the month of February. Beef producers should

be prepared for a bout of more harsh winter weather in February as compared to the past two months. Winter weather conditions will likely impact many beef producers in February on a larger scale than we experienced in December and January. The graphic below shows the expected temperature trends in February. Note the blue and green areas (the coldest temperatures relative to normal) across most of Canada and the northern tier of the U.S. Beef producers across the northern states should be prepared for a colder February, while in the southern tier of the U.S. temperatures will trend closer to average or will be slightly above normal. Producers across the Pacific Northwest, the Northern Rockies and the Northern Plains should be ready for a bout of winter storms and colder temperatures. In addition to a trend toward colder temperatures, precipitation chances will be higher in February in many areas, especially in the northern states. In the graphic below, the green and blue areas represent expected areas of above average precipitation, brown shows below normal and white areas represent near average precipitation.

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NATIONAL CATTLEMEN

Thoughts From a Leading Genetics Expert NCBA is proud to work with a network of beef production specialists to continually provide our members with educational information. Recently, National Cattlemen had the opportunity to talk with a leading expert in the field of beef breeding and genetics, Dr. Bob Weaber of Kansas State University. Dr. Weaber, it’s bull buying season. What’s your best advice for producers looking to invest in new herd bulls? Although it sounds simplistic, my best advice for bull buyers is to determine what it is that you need in the new genetics for your herd. This means understanding your breeding objective or what traits have economic importance to your herd. Trait emphasis varies from herd to herd due to differences in marketing endpoints, replacement female strategies, resource base (feed, land, labor) and what genetics already exist in the herd. Alignment of your selection criteria with the needs of your herd offer the best opportunity for success. All too often, producers place a lot of emphasis on traits that aren’t economically relevant to their production system. Utilization of a selection index that’s most closely aligned to your needs helps simplify and improve the precision of selection by placing the appropriate emphasis on the economically relevant traits, and appropriately accounting for trade-offs between genetic merit in different traits. Many producers select bulls one day a year. Spend the time to seek out the many educational resources and training opportunities available from breed associations, extension and your seedstock supplier. What’s the biggest misconception you usually hear about genetic tools and selection? Unfortunately, there’s still a number of producers that don’t believe the tools work and therefore don’t apply them in their selection program. The reality is that the modern genetic improvement tools we have available today are the most reliable and effective means to control genetic potential in seedstock and commercial herds. They allow for increasing, decreasing or maintaining genetic potential. The challenge becomes the application of the tool to affect the desired changes and control or understand correlated responses in other traits. A good example is continued selection for yearling weight growth and its strong positive genetic correlation with mature weight in beef cows. If we apply positive pressure on yearling weight and don’t simultaneously put downward pressure on mature weight, or other economically relevant traits like stayability, cows get bigger and require more feed

inputs to meet maintenance. Some producers have argued this response is evidence that EPDs don’t work, when in fact, that scenario provides evidence that EPDs do work, they generated response to selection. It is, however, our responsibility as users of the tool to apply them correctly. Let’s look into the future, there’s a lot of genetic tests available nowadays. How will these tools play a role for all segments of the beef industry? At present, the genomic testing tools deployed in the seedstock sector are having the biggest impact. These DNA markers from the various platforms are incorporated directly into singlestep genetic evaluation systems. The markers account for substantial genetic variation and markedly improve the accuracy of EPDs of young non-parent animals or animals with few progeny. In many cases, the DNA markers are equivalent in the amount of information they provide to a young herdsire’s entire first calf crop being phenotyped for all traits. For traits like calving ease or growth traits, the DNA marker information provides a timely update of information and risk management. For maternal or carcass traits, the DNA markers provide a glimpse into the genetic merit that would normally take 5-10 years to achieve via progeny or grand-progeny production, thereby dramatically shortening the time period for gaining genetic information. Indirectly, DNA and genomic tools provide for more effective and efficient genetic selection of seedstock. How the tools will directly impact the commercial, feed and packing sector remains to be seen. In the commercial sector, a number of tests are available but lag in adoption compared to seedstock testing. DNA parentage or traceability tools can have substantial utility downstream to infer pedigree or confirm identity of animals or products. Due to current genotyping costs and because genetics are only one source of variation in an animal’s phenotype, and often a proportionally smaller one, genomic tools aren’t particularly well suited for predicting individual phenotypes. This limitation has so far precluded marker assisted management strategies in the commercial cow-calf, feed yard or packing plant. Will there ever be any value for a commercial beef herd to utilize these technologies? I think they’re useful today but best incorporated into the EPDs of the seedstock purchased by commercial breeders. The best way to impact the gene flow in a commercial herd is very focused and precise selection of bulls. An individual animal’s sire, maternal grand sire (sire of the dam) and maternal great grand sire (the maternal grand dam’s sire), on average, account for 87.5% of the genetic make-up. Focusing on sire selection conveniently manages a majority of the genetics in the herd. That said, replacement selection is important, but the selection of these females starts with the selection of their sire. Another useful area for

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commercial herd use of genomic tools, is the ability to predict breed composition and heterosis. The ability to identify animals that genetically look and perform more like F1s from a stabilized composite breeding system offers substantial financial advantage due to recovery of lost heterosis caused by the mating of advanced generations of hybrids/composites. You were recently named as the Executive Director of the Beef Improvement Federation (BIF). Congratulations! What do you see for the future of BIF? Thank you! I’m pleased to serve BIF in this new role. I’ve served as both a breed representative and regional secretary over the years and am deeply committed to the goals, objectives and mission of BIF. BIF’s mission to bring standardization to performance testing and evaluation hasn’t changed since its inception over 50 years ago. BIF continues to be relevant and a valued partner in the seedstock and commercial sectors through continued work to produce guidelines for phenotypic record collection and genetic evaluation of traits that are important across the value chain. BIF provides a central location for the industry’s thought leaders to congregate and build consensus on the best, most scientifically valid path forward. While the focus of our work hasn’t changed, the delivery method and traits being considered have. The BIF recently produced a revised version of the BIF Guidelines available in an online, Wiki format. The Guidelines are now a fully modern, digital document and stakeholders can directly contribute content online. The group continues to develop guidelines for novel traits including some animal health phenotypes, feed intake and efficiency measurement as well as sustainability measures. Sustainability continues to be a focus for the industry. What role will BIF play in helping producers with this issue? Sustainability concepts are important aspects of our farm level decision making and can be affected by genetic selection. BIF will continue to explore a variety of novel traits and their definitions to provide standardization recommendations to our various breed partners. In a broad sense, many of the tools we have on the genetics front can be viewed as influencing sustainability. These tools have either a direct impact on outputs from the farm system or incur some cost (resource inputs). Some traits, like docility, impact our animal welfare practices and, thereby, some of the societal concerns around beef production. Early discussions have emerged around cow maintenance energy requirement, methane and GHG emissions and production efficiency measures. BIF will play a key role in helping industry stakeholders to identify and understand metrics related to sustainability.

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