July 2020 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.

July 2020 • Vol. 36, No. 9 • NCBA.org

The Great American Outdoors Act: Not So Great For American Rancher

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

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By Mark Roeber, rancher from Delta County, Colorado, Secretary of the Public Lands Council If we learned anything from the COVID-19 pandemic, it is to become financially prepared for the unexpected, and to wash your hands often. As we care for both our personal and financial hygiene, we should expect the same from our elected officials as they set national budgets. Unfortunately, the American people are about to be disappointed as the Senate gears up to change the way the Land and Water Conservation Fund (LWCF) is funded and abdicate its responsibility to oversee the way hundreds of millions of dollars are spent.

Recently the Senate voted to approve the Great American Outdoors (GAO) Act. The bill does a few things, including making $900 million each year – into perpetuity – for LWCF mandatory spending, rather than discretionary.

In other words, Congress no longer would consider LWCF priorities and spending levels through the annual appropriations process, and instead give federal agencies an annual $900 million dollar check with no strings attached. If enacted, federal agencies have hundreds of millions of dollars available to purchase vast swaths of land, and no one to tell them ‘no.’

On the surface, LWCF supports a worthy cause. Fifty years ago, the program began as a long-term safeguard for American recreational opportunities by conserving natural resources.

Congress split funding two ways: stateside funding, used for community projects like construction of baseball fields and rodeo grounds, and federal funding, used to purchase tracts of federal land for “conservation.” However, it became a land grab tool that falls short in meeting its own objective.

When Congress permanently extended the LWCF in 2019, it required Congress to annually appropriate funding, ensuring that individual members of Congress remained engaged in the decisions. The GAO Act strays from the intention of lawmakers. The

mandatory funding allocates 40 percent of the total program budget, roughly $360 million per year, be used to purchase new lands and waters.

To put this in perspective, pastureland in the Mountain West averaged $634/ acre in 2018. Using this estimate, $360 million could be used to purchase roughly 567,000 acres of land, equating to a land grab bigger than all of Colorado’s national parks combined.

Consequently, these land grabs result in poorly managed federal land and water. Increased land acquisition - and the costs that come with the regulatory requirements and general upkeep - result in federal agencies falling behind in necessary maintenance of federal lands.

At the end of 2018, land management agencies had nearly $20 billion in deferred maintenance, and that figure only grows as you add more assets to the list.

The sponsors of the GAO Act are well aware that federal agencies are not equipped to take on more assets. Each year agencies seek more appropriations to care for the lands and resources they already own. While the GAO Act provides some dollars to pare down this multi-billion-dollar maintenance backlog,

the LWCF funding to purchase new land removes any oversight to prevent the same financial situation from recurring.

Coloradans should be outraged.

Handing federal agencies hundreds of millions of dollars without any checks and balances will only end in heartache – both for the public land user, and for the American taxpayer when the mounting disrepair of our public lands can no longer be ignored.

Do not misread my concern. I believe Congress’ heart is in the right place. I just do not believe purchasing tracts of land without the means to care for it achieves desired conservation outcomes. I welcome a conversation about how to best conserve and enhance the natural resources we have but throwing good money after bad is not the solution. We have an opportunity to change the trajectory of natural resource conservation in this country.

On June 18, the U.S. Senate passed the GAO Act sending it to the House of Representatives for a vote. Rather than voting on the GAO Act, Congress should respect the American people and actively safeguard our lands, water, and our domestic finances.

MARKET SNAPSHOT WEEK ENDING 6/26/2020 (prices vs. year ago) SOUTH CENTRAL 500-600 LB. STEERS $148.22

LIVE FED STEERS $100.82

CHOICE BOXED BEEF $220.34

OMAHA CASH CORN $3.19

7%

9%

.3%

28%

$158.28

$110.48

$220.90

$4.43

IN THIS ISSUE Leadership Comments

3

Federation News

6

Market Matters

8

Governance 10 Checkoff 13

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NATIONAL CATTLEMEN

Working On More Than One Issue At a Time

By Marty Smith, NCBA President Over the past few months, NCBA, like the rest of the world, has been very focused on the Coronavirus pandemic and the personal and economic devastation it left in its wake. Until a vaccine or an effective treatment is developed, we will all continue to focus on the virus — and on rebuilding our economy. But as our states and businesses continue to reopen and we all develop a “new normal” in the way we live our lives and run our operations, it’s a good time to step back and look at some of the policy work that NCBA has done and some issues not directly related to COVID. * In mid-June, the Dietary Guidelines Advisory Committee held its Draft Advisory Report Meeting to review the DGAC draft conclusion statements posted online and discuss the Committee’s overall deliberations and decisions regarding their draft advisory report. This was one of the final important steps in a 2-year long process that NCBA has been involved in since day one.

Throughout this process, NCBA has provided extensive written and oral commentary through both the Center for Public Policy and the Beef Checkoff.

NCBA, on behalf of the Beef Checkoff, submitted 21 sets of unique comments,

providing over 100 research studies that comprehensively review the scientific evidence supporting the critical role beef plays in a healthy diet at every life stage.

Stay tuned for your opportunity to make your voice heard: on July 15, U.S. Department of Agriculture and the Department of Health and Human Services are expected to post their final report online and open up a 30-day public comment period. Following release of the report, NCBA will be calling on our affiliates and members to submit comments based on the findings in the final DGAC report. * Also, in mid-June, NCBA led the fight to make sure that the voice of cattle producers was heard in the Capitol Hill debate over the so-called “Great American Outdoors Act.” We think a more appropriate name for the legislation would be the “Great American Land Grab Act,” since a federal land grab is exactly what it will promote.

Whatever you call the bill, it would permanently remove Congressional oversight of funding of the Land and Water Conservation Fund (LWCF) by making the fund mandatory spending at a level of $900 million per year.

It’s beyond me why any Member of Congress would voluntarily surrender his or her ability to exercise oversight into how the Executive Branch spends billions of taxpayer dollars, but the bottom line is this legislation would reduce federal accountability when it comes to Washington buying up more and more private lands. The U.S. Senate approved the bill on June 17, but NCBA is going to continue to

lead the fight against this ill-advised legislation every step of the way. * NCBA has continued to work with U.S. trade negotiators in support of a bilateral trade deal with the United Kingdom that will improve access for American beef producers. Britain is still working its way through the Brexit process with the European Union but the goal remains to have a U.S.-U.K. deal that includes agriculture by the end of this year. * NCBA, joining other regulated industries, recently filed motions to intervene in California, South Carolina, and Colorado litigation on the Navigable Waters Protection Rule. The Trump Administration’s rewrite of the 2015 Waters of the United States (WOTUS) definition provides much-needed clarity for agricultural producers and maintains important agricultural exemptions. The 2015 WOTUS Rule represented a massive overreach by the Federal government, unnecessarily burdening livestock producers. NCBA will continue working to defend the Trump Administration’s deregulatory agenda, including the Navigable Waters Protection Rule * In June NCBA Chief Veterinarian Dr. Kathy Simmons was named to a Task Force on Gene Editing in Animal Agriculture led by the Association of Public and Land-grant Universities (APLU) and the Association of American Veterinary Medical Colleges (AAVMC).

Recognizing the potential for gene editing to increase food security and safety, the 11-person panel is comprised of scientists and industry leaders who will map out recommendations for regulating this emerging genomic technology in

Like A Rock…Since 1898

By Colin Woodall, NCBA CEO

THE OFFICIAL PUBLICATION OF NCBA 2020 NCBA Leadership: President President-elect Vice President Treasurer Federation Division Chair Interim Federation Division Vice-Chair Policy Division Chair Policy Division Vice-Chair Immediate Past President Chief Executive Officer Senior Editor Associate Editor

Marty Smith Jerry Bohn Don Schiefelbein Joe Guild Buck Wehrbein Clay Burtrum Todd Wilkinson Mark Eisele Jennifer Houston Colin Woodall John Robinson Brittany Schaneman

Contributing Writers Walt Barnhart

Ed Frank

Steven Johnson

Creative Director Don Waite Graphic Designer Dancinee Jennings Copy Editor Judy Van de Mark For ad sales, contact Jill DeLucero or Nicole Bechtel at 303-850-3465.

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. ©2020 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.

KEEP UP WITH THE LATEST NEWS www.NCBA.org Like Us. Follow Us. Watch Us. Hear Us

In the early 1990s, Chevy had an advertising campaign touting the dependability of their trucks by using the tag line “Like a Rock.” To this day, I still drive a 1994 Chevy pickup. I change my own oil, I rotate the tires, I gap my spark plugs, and do everything to keep that truck running. It has covered most of Texas, western Kansas, and the panhandle of Oklahoma. It took my wife and me on our honeymoon as we traveled from Texas to Washington, D.C., and it has gone up and down Pennsylvania Avenue more times than I can count.

In the 26 years I have owned that truck, it has never left me stranded or put me in a dangerous position. It has been truly dependable.

I have thought about my truck numerous times as I look at how NCBA has responded to the COVID-19 crisis on behalf of our members and stakeholders. I can count on that truck cranking every time I turn the key. It is always there for me. Much like my truck, we have been there for you by engaging on the front lines of the COVID-19 fight since the early days of the pandemic.

For more than three months, members of your staff were working every day of the week to ensure we were advocating for you and your family during our engagement with consumers, legislators, regulators, and the President of the United States. If you were working during this battle, we knew we needed to be, too. We were there to take calls and input from concerned members and state partners while updating our stakeholders with nightly emails highlighting our efforts.

Effective communication has been key in letting you know that we were always on the offensive.

A half-ton, two-wheeldrive truck doesn’t always give you a smooth ride on bumpy roads. This pandemic has been nothing but a

bumpy road, and it definitely hasn’t been a smooth ride for our association.

The anger and the emotion you have felt has been warranted, and one of the reasons we exist is to provide an outlet for that frustration.

Every day, dealing with COVID-19 brought new challenges, and in most cases, challenges we hadn’t anticipated.

Who would have expected that stayat-home orders and the resulting lack of driving and fuel demand would lead to ethanol plants shutting down and leaving our industry with a shortage of carbon dioxide needed to keep carcasses and beef cool during processing and shipping? It was just another section of that bumpy road, but we kept both hands on the wheel and kept us out of the ditch.

While dependable, that truck has also disappointed me. Most of last year the air conditioner didn’t work. No A/C while driving during a sweltering D.C. summer is not pleasant. We know we haven’t been perfect, and in some cases, have disappointed you. We were always open to the criticism and found ways throughout the crisis to adjust our efforts and messaging in order to do a better job. We didn’t start our response by advocating for relief from Congress, but with the feedback we received through our grassroots policy process, we adjusted course and delivered on getting money appropriated for the Coronavirus Food Assistance Program (CFAP). Even Secretary of Agriculture

animal agriculture with appropriate safeguards and procedures. * EPA Administrator Andrew Wheeler also recently announced the appointment of 33 members to the Farm, Ranch, and Rural Communities Committee (FRRCC).

Established in 2008, the FRRCC provides independent policy advice, information, and recommendations to the EPA administrator on a range of environmental issues and policies that are of importance to agriculture and rural communities.

NCBA was very pleased with the strong representation of the beef cattle industry. Tom McDonald, of Five Rivers Cattle Feeding, has a long history and deep expertise in environmental and agricultural issues. Tom will provide resolute leadership to the committee as its new Chairman. Farmers and ranchers now have a seat at the table with our federal regulators thanks to President Trump and Administrator Wheeler.

Of course, we all understand that the Coronavirus hasn’t gone away and that our economy and our industry still face a long road back to recovery.

NCBA will continue to fight on that front.

We’ll continue to build support for the PASTURE Act, which will provide grazing flexibility to cattle producers during the pandemic. We’ll push for additional and better-targeted relief under the Coronavirus Food Assistance Program (CFAP), and our Working Group on cattle markets will continue working to improve price discovery and reduce the market volatility we saw after the onslaught of the virus and after events like last year’s fire in Holcomb, Kansas.

We’re a producer-led organization, and like all cattle producers, we’re used to doing more than one thing at a time. And with your ongoing support, that’s exactly what we’re going to continue to do.

Sonny Perdue gave us the primary credit for securing the funding for all of agriculture. Now we know CFAP isn’t perfect, but as you read this, we are working to address the shortcomings, most notably by getting the arbitrary April 15th date extended to cover the losses we are still seeing.

Twenty-six years on the road can be hard on a truck, but it is amazing what a new set of tires and a fresh wax will do. Given all we have come through, we felt it was important to look at how we can improve. This led to a review of our NCBA Vision and the need to make a few improvements. Our improved vision is “to be the trusted leader and definitive voice of the U.S. cattle and beef industry.” We added “U.S. cattle” to the vision to make it clear that we are here for the producers. Our volunteer leaders are cattle producers, our committee members are cattle producers, and we are here to serve cattle producers. This vision makes that clear. The NCBA Officer Team and Executive Committee made the decision to adopt these improvements, and I believe it will help us as we continue to find ways to improve.

Now, I often look at the new truck models and think that it might be time to try something else. Maybe even one that allows me to play a cattle market report podcast or two. But I know my truck is dependable and will always provide the steady ride I need to get the job done. Like a rock, since 1898, NCBA has been that steady and dependable voice that provides leadership in times of crisis. This fight is not over, so I hope you’ll jump in the cab with me and help us stay the course.

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NATIONAL CATTLEMEN

BIF Hosts Successful Online Symposium More than 1,400 participants from 36 countries registered for this year’s BIF Research Symposium — Online.

When the COVID-19 pandemic forced the cancellation of the face-to-face meeting of the 52nd Beef Improvement Federation (BIF) Research Symposium and Convention, the BIF Board made the decision to transition the symposium to an online event hosted on Zoom the week of June 8.

“We realize beef producers still have cattle to breed and people to feed,” says Tommy Clark, recently retired BIF president. “Our mission as an organization is intact during this challenging time and we will continue to provide educational programing focused on how the beef industry can enhance value through genetic improvement. We are committed to providing learning opportunities that will help producers continue to improve their bottom line focused on beef improvement.”

The annual symposium typically draws 400-800 of the leading beef seedstock and commercial producers along with allied industry, academic and breed association personnel from the U.S. and Canada to learn about the latest developments in beef genetic improvement. This year’s revised schedule was delivered over five days via the Zoom webinar platform and featured both U.S. and international speakers and the annual BIF awards and scholarship presentations.

General session speakers, including NCBA Director of Market Research Shawn Darcy, focused on beef consumer trends and beef sustainability. With the online format, conference participation dramatically increased with more than 1,400 registrants from 36 countries, including 1,045 U.S. participants and more than 400 international attendees.

For more information about this year’s symposium, including presentation video and PowerPoint archives, visit BeefImprovement.org/symposium.

BIF Leadership Joe Mushrush, Strong City, Kan., was introduced as the 2020-2021 BIF president during the Monday session.

Matt Perrier, Eureka, Kan., is the new vice president. NCBA continues to be represented on the BIF board of directors

by Josh White, executive director producer education and sustainability. Visit BeefImprovement.org for information on the full board of directors.

Bob Weaber, Kansas State University professor, was announced as the new BIF executive director. Weaber will be taking the reins from Jane Parish, Mississippi State University, who served as executive director from 2015-2020.

“Jane has been a great leader for the organization, and we are grateful for the years she dedicated to BIF,” says White.

“Under her leadership, BIF has raised the bar in member services as well as its communication and marketing efforts to members, the board and the organization’s partners.”

Also retiring from the staff after 18 years of service to BIF is Lois Schreiner. From 2002-2020, Schreiner served as executive assistant to several directors and has been integral in BIF’s success.

“Lois is phenomenal, and it has been a real pleasure working with her as NCBA began assisting with BIF conference registration the past few years,” White comments.

“She has been the heart and soul of BIF and the behind-thescenes contribution she has made to BIF for the past 18 years is immeasurable.”

Producers Honored Each year BIF recognizes industry leaders, contributors to BIF and genetic improvement. “It’s been such an honor to lead the Awards Committee the past few years and see the great nominees who come forward to be recognized,” says White.

This year, Yon Family Farms, Ridge Spring, S.C., was named the BIF Seedstock Producer of the Year. The Yons are first-generation cattle producers. Having met while studying animal science at Clemson University, Kevin and Lydia took their dream job after graduation managing a registered Angus herd in Columbia, S.C. When that herd was dispersed in 1996, the Yons purchased 100 cows from their previous employers and 100 acres in Ridge Spring and set out with their three young children to continue their dream of raising cattle.

Since taking that leap of faith, Yon Family Farms has grown to more than 1,500 Angus cows and thousands of acres of crop, pasture and timber land.

Vest Ranches, Childress, Texas, was named the 2020 Commercial Producer of the Year. In 1887, Bill Vest ventured to the rough country of West Texas to homestead and run cattle. More than 130 years later, Samann Vest-Watkins and her husband Ty continue to battle climate and weather to produce high-performing Angus and Charolais cattle.

The BIF Pioneer Award recognizes individuals who have made lasting contributions to the improvement of beef cattle, honoring those who have had a major role in acceptance of performance reporting and documentation as the primary means to make genetic change in beef cattle. Recognized this year as BIF Pioneers were Paul Bennett, Red House, Va.; Charles McPeake, Arnoldsville, Ga.; and the late Craig Ludwig.

Donnell Brown, Throckmorton, Texas, and David Kirkpatrick, Knoxville, Tenn., were presented BIF Continuing Service Awards for their contributions to the BIF organization and beef cattle improvement.

Becky Mills, Cuthbert, Ga., was presented the BIF Ambassador Award. This award is presented annually by BIF to a member of the media for his or her efforts in spreading the news of BIF and its principles to a larger audience.

More information about this year’s winners including videos are posted online at BeefImprovement.org/ symposium/awards.

BIF’s mission is to help improve the industry by promoting greater acceptance of beef cattle performance evaluation.

The 2021 BIF Convention and Research Symposium will be June 22-25 in Des Moines, Iowa.

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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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.

Get to Know your Federation Regional Vice Presidents In National Cattlemen we are helping you get to know the seven Federation regional vice presidents who serve on the NCBA Executive Committee. Here are representatives for Regions III and IV. Please reach out to the individual who represents your state with your questions, concerns or thoughts!

Region III Al Lyman, Illinois Al grew up on a small farm in Iowa, and since 1997 has been a farmer- and custom-feeder in Northwest Illinois on an operation that has been in his wife Karen’s family for five generations – since 1867. Today the corn farm is focused on cattle, and they feed out about 2,000 – 2,500 head per year. Helping in the operation is their 19-year-old son and a hired hand. Al and Karen also have two daughters and three grandchildren.

Al met Karen at Iowa State University, where both graduated with agriculture degrees. They both are passionate about being active in organizations that support their business and industry. In fact, Al has been the president of two county cattlemen’s associations in two different states. He also served on the Illinois Beef Association Board for 12 years, and as the chairman of its Checkoff Division twice. In addition, Al is the IBA representative on the Illinois Livestock Development Group, which supports animal agriculture in the state, and is co-chair of the checkoff-funded Market Research Working Group.

“I think it’s important to be involved in your industry and have a voice in what is going on,” Al says. “And when it comes to our Beef Checkoff, I believe if we aren’t going to help ourselves, we can’t expect help from others.”

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Region IV Ryan Moorhouse, Texas Ryan grew up on a family cow-calf and stocker operation in north central Texas.

He got his degree in in agribusiness from Texas A&M University, then went to work for Continental Grain Cattle Feeding (now Five Rivers). Today he is general manager for Hartley Feeders, a Five Rivers Cattle Feeding feedyard, and operates his own stocker operation on the family ranch.

Before being named Texas Beef Council chairman in 2017, Ryan served on the TBC Executive Committee for four years. Ryan is co-chairman of the Checkoff Evaluation Committee, which has both Federation and CBB members, and has also served on the board of the U.S. Meat Export Federation, chairman of the Texas Cattle Feeders Association Industry Relations Committee and as XIT Rodeo board president. Ryan and his wife, Colette, live in Dalhart with their two sons.

“Being involved in industry organizations over the past decade has given me the opportunity to go places and see things while promoting American beef,” says Ryan. “It has also allowed me to meet some great people who do outstanding work to protect and promote the product I work to produce. I feel it is important to donate my time to do the same when called upon.”

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Wisconsin Beef Council Sponsors Successful Restaurant Promotion To help support restaurants in the Madison, Wis., area, the Wisconsin Beef Council sponsored the “Madison Restaurant Week to Go” event in May. Madison Magazine hosted the event, with consumers ordering from several Madison area restaurants for carryout or delivery.

Restaurants featured threecourse prix-fixe meals and special family meals. During the promotion 35 restaurants featured beef – including lasagna, meatloaf, burgers and steaks.

The WBC logo was featured in 200 promotional ads on both Channel 3 and TVW stations in the Madison market, on Channel3000. com and MadisonMagazine. com, and on the restaurant menus’ webpage.

The online ads alone resulted in over 650,000 impressions. The event was also promoted on WBC’s social media pages.

This Firehouse burger was featured during Restaurant Week to Go - a 1/3 pound beef patty fire grilled to order and topped with dill Havarti cheese, ham off the bone, fresh jalapeños, sliced pepperoncinis, and garlic aioli, served on a ciabatta bun.

New Mexico Provides Beef Meals to Recognize Trucker Efforts

Missouri Beef Industry Council Adapts Programs to Fit Condition Responding to rapidly changing conditions among consumers and in the beef industry, the Missouri Beef Industry Council adapted many of its programs to assure Beef Checkoff investments would be optimized during the COVID-19 pandemic. For instance, from mid-March to mid-April MBIC reached more than 56,000 consumers and had more than 102,000 impression across all its social media platforms. Its digital tactics changed, focusing more on beef preparation and safety, as well as preparing easy, fast and simple meals at home with staples consumers have on hand.

Development of cooking videos also began in mid-March, including a Kids in the Kitchen and Kid-Friendly Meals segment, as well as Batch Cooking for the athome chef. MBIC has also been distributing weekly e-mails that include recipes, beef preparation tips and resources.

Education was also a key element of their approach – among both adults and young people. Activities were a highlight with coloring pages and educational games to do together as a family.

While some Missouri events have been postponed, others have merely been modified. The Missouri Association of Nutrition and Dietitians turned their annual conference into a virtual event via webinar, and MBIC was involved, sponsoring the keynote speaker and panel. Cara Harbstreet, MS, RD, LD, focused on Rethinking Health: Building Sustainable Plates with Beef. The panel tackled Beef Up Your Communications Toolkit: A Conversation with Industry Experts.

Showing some appreciation for a major component of the beef industry, the New Mexico Beef Council supplied free beef meals to truckers during a May event in Albuquerque. Joining with the Albuquerque Isotopes baseball team and the New Mexico Trucking Association, NMBC provided the beef lunches to truckers who were travelling through the city that day.

NMBC directors John Heckendorn, Moriarty, N.M., and Kenneth McKenzie, Encino, N.M., helped hand out the beef lunches to drivers at the TA Truck Stop. The “Ranchers Beef” sandwiches were supplied at a discount by the Flying Star Café.

“This was a great opportunity to demonstrate the respect we have for people who move our products and animals to where they need to be,” said Dina Reitzel, NMBC executive director. “We depend on the dedication of truckers day-in and day-out, especially during these difficult times.”

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IN THE WAR AGAINST I M M U N E

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C H A L L E N G E S

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NATIONAL CATTLEMEN

Market Matters Don’t Forget Mexico

By Katelyn McCullock, Director of the Livestock Marketing Information Center Amidst coronavirus, African Swine Fever and trade deals/ tensions with the U.S. and China, it’s easy to lose sight over on the most important cattle/beef trading relationships the U.S. has: Mexico.

I bring this up to remind us that it’s easy to take for granted our partner to the south after the near 30-year reign of NAFTA and now USMCA. Admittedly, Mexico and Canada were center-stage when we were negotiating USMCA, but now focuses have shifted to hotter topics. There is, however, good reason to keep an eye on the brewing situation south of us. They too, are emerging from coronavirus with a weaker economy and have seen GDP decline at a faster rate than the U.S. That will likely shape the near to medium term trade flows for cattle and beef.

The International Monetary Fund (IMF) released a World Economic Outlook in April for all countries.

Mexico’s real GDP (using constant prices) is expected to decline 6.6 percent in 2020, largely due to the impact of coronavirus. Economic commentators in early 2020 said this is one of the fastest declines to GDP in over a decade. As a comparison, IMF estimates U.S. annual GDP will fall by 5.9 percent in 2020.

The Mexican peso has reacted strongly to economic pressures in both countries and has weakened significantly against the U.S. dollar.

In January the rate of pesos to

dollars was $18.85 to $1; in May that increased to $23.47 pesos to $1 USD. That is a 25 percent change in only five months. Early June, at the time of this writing, the rate has drifted lower to just over $22 pesos to $1 USD. That relationship means a couple of things and is not necessarily all bad. If you are braving travel these days, your trip to Mexico is less expensive. But, if you are trying to sell beef, it just got a whole lot more expensive for Mexico consumers to buy.

We do not often look at the dollar amounts when it comes to beef and cattle exports, but it bears some importance when talking about currency changes that are so large. In 2014 the U.S. sent just over $6 billion in beef products, $682 million in organ and offal products, $1.5 billion in hides, and $150 million in cattle around the world, totaling approximately $8.3 billion. Last year, that total came to $8.5 billion. The value of exports to Mexico in 2019 was about $1.1 billion, compared to $1.2 billion in 2014 according to USDA Foreign Agricultural Service data.

As the current currency rate stands, 2019 averaged an exchange rate of $19.25 pesos to $1 USD. If 2020 maintains the current 2025 percent appreciation relative to the Mexican peso that could mean large offsets to U.S. products headed for Mexico. Rarely are trade flows as simplistic as offsetting the change in currency rates, and it’s extremely difficult to predict

EXCHANGE RATE US Dollar base, Monthly

Exchange Rate 25

trade flow changes when there is so much volatility in the marketplace.

As a simplistic example, we can apply only the exchange rate to the aggregate total. This would be mean if Mexico bought the same number of goods (quantity) as last year at the same price, it would be 20-25 percent more expensive in Mexican pesos. It is unlikely though, that given the weak economic environment that quantities would be the same. A more likely outcome is that the quantity of exports would be smaller, to combat the negative direction of currency rates. Assuming all else equal, at a maximum we would see the quantities reduced by 20-25 percent to reflect the full extent of the currency effect. However, usually the shift is smaller than the currency exchange rate, but still directionally the expectation is exports going to Mexico will contract, with less dollars and quantity moving across the border from the U.S. On the other side, those importing products from Mexico would see a price break, as the U.S. dollar can now buy more goods for the same price. This is important for the cattle trade flows as Mexico is the largest supplier of feeder cattle to the U.S., equivalent to over $400 million in 2019. If the U.S. spent the same dollars on feeder cattle as it did last year, the resulting quantity would be more feeder cattle, assuming all else equal.

Exchange rates have complicated drivers, but the large shift that has happened between the Mexican peso and the U.S. dollar will play a large role in our abilities to move

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US EXPORTS OF BEEF MUSCLE CUTS Weekly

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2019

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Mexico

1/9/16

7/9/16

1/7/17

7/8/17

Canada

Data Source: Pacific Exchange Rate Service, Univ. of B.C., Compiled by LMIC 04/04/20

Livestock Marke ng Informa on Center

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product out of the U.S. The currency move that has taken place over the last five months has been one of the sharpest currency moves since the Great Depression in 2008. The U.S. Federal Reserve has been providing an unprecedented stimulus to the U.S. economy, and those stimulus measures will eventually affect the U.S. dollar in the form of inflation.

However, in the shorter term the lack of demand by the U.S. consumer has led to a short-term deflationary period for the U.S. dollar. Mexico, too, is facing its own economic challenges (including lower prices for oil exports) and fiscal policies that are also interacting with the relationship between the peso and the dollar. The currency relationship could be volatile the rest of the year, but it seems unlikely this deflationary period for the U.S. dollar will continue.

Mexico is also engaging in stimulus activities that will weaken the Mexican peso. Where these two currencies end up in relation to each other is unknown, but for the first part of the year, U.S. exports to Mexico are at a disadvantage. Export quantity data January through April is down 22 percent compared to the same period last year for beef and veal products, and the dollar value is down 15 percent. Hide quantities are down 17 percent, while values are down 33 percent. Organ and offal products have fared better with values up 11 percent, and quantities up 10 percent.

1/6/18

Japan

7/7/18

1/5/19

Mexico

7/6/19

1/4/20

Korean Rep.

Data Source: USDA-AMS & USDA-APHIS Livestock Marketing Information Center

July to Bring Dry and Hot Weather

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.

June was a month of extremes.

There were hot areas, there were cold areas, there were two snowstorms in the Northern Rockies in June and a tropical storm. At times, June was more like a spring month than early summer.

Unseasonably strong Pacific storms kept the Pacific Northwest and most of the West Coast in cooler than average conditions, while southwesterly winds pushed desert air into the nation’s heartland bringing some very warm temperatures for the first two weeks of June across Nebraska, Kansas, Oklahoma, the Dakotas and the western Corn Belt.

At the same time there was heat in the Midwest, two snowstorms hit the Northern Rockies with Laramie, Wyo., picking up 10 inches of snow on

June 8th! That storm was followed by another storm that brought snow to Idaho, Montana, Utah and Wyoming a week later.

Tropical Storm Cristobal brought heavy rains to the Gulf Coast and parts of the central states. From snow to heat waves to tropical storms, June 2020 was a crazy month weather-wise.

As we peer into the month of July, will it be a more stable month, or will the June craziness persist?

There are some trends that developed during the second half of June that will give us some hints about what to expect in July across the nation.

The first trend that developed in late June was a return to more average temperatures in parts of the Midwest and central states that were so warm in early June. The last two weeks of June saw temperatures that were not as hot and thunderstorm activity increased.

Another trend of interest was in the Desert Southwest and Southern Rockies where the early summer thunderstorm pattern was off to a weak start. This pattern is also referred to as

the “summer monsoon” in the Desert Southwest and Rockies. The heat of the deserts helps draw moisture northward into the region helping to enhance thunderstorm activity and bring needed early summer moisture to the southwestern states. However, the string of strong Pacific storms in early June did not allow the monsoon to get started until the end of the month.

As we look at what to expect for July, the two trends mentioned above

will play a role in the weather. First, the weak start to the summer monsoon thunderstorm season will result in drier than normal conditions in July across the Desert Southwest, the Southern Rockies and the Central and Southern High Plains. While there are certainly some hot summer days coming in July, temperatures and precipitation trends will be closer to normal in the Plains, Corn Belt and Upper Midwest.

NATIONAL CATTLEMEN 9

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Market Matters Slaughter’s New Normal

By Lance Zimmerman Manager – Research, Analysis and Data, CattleFax During the COVID-19 labor shortage, the frontend fed cattle supply grew increasingly uncurrent.

That remains the biggest challenge facing the beef cattle industry today. CattleFax estimates suggest that feedyard carryover has grown 1 mil. head from April 1 to May 30.

The practical maximum capacity prior to the outbreak was 98,000 head per weekday, and Saturdays often operated at 50 percent of the weekday pace. There have already been instances of 94,000 and 95,000 head in mid-June. That puts current capacity at 96 percent of its previous highs. The next step is maintaining consistent production at those higher levels and finding a new normal.

To alleviate supply pressure downstream, it will be important for weekday fed cattle slaughter to get as close as possible to the old 98,000 head maximum through the summer. One way to understand this is through the USDA Cattle on Feed report and projecting the number of cattle with 150 days or more on feed into year-end 2020.

That number swelled in April and May – growing an estimated 820,000 head to a record large June 1 inventory of nearly 3.0 mil. head. Modest improvements in fed slaughter throughout the summer will limit front-end fed cattle supply growth, but it will take until August for that inventory to shrink. Most of the decline will come because fewer spring placements into feedyards led to less fed cattle scheduled for slaughter in late summer, but processing speeds remain important.

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The April to July placed-against supply by feeding region shows the situation that was setting up for feedyards before the COVID-19 slowdown.

The total supply in that four-month period is 8,000 head per week bigger than last year, and Texas and Colorado have the largest year-over-year gains, around 3,000 head per week each. However, some perspective is necessary.

The placed-against supply was more than 40,000 head per week bigger than year-ago levels from August 2017 to July 2018. The gains through spring and summer 2020 suggest relatively small year-over-year changes were likely prior to the outbreak. A look at the cattle on feed more than 150 days by state offers some additional perspective on potential carryover issues.

That inventory can increase as shipments slow. Also, it can grow due to smaller placement weights, which simply require more days on feed. The South is the biggest regional outlier here. Some of this is carryover, and lighter fall placement weights contributed too.

Regardless, Kansas and Texas have a 30 percent larger cattle inventory that has been on feed 150 days or more. That is a 300,000 head increase compared to May 1, 2019.

The good news is there remains a considerable hole in the placed-against supply for late summer that this carryover can fill. The year-over-year deficit for the late summer and fall could even stretch into late November and December without year-over-year placement growth soon.

Bottom Line: Aggressive slaughter remains the key to working through the front-end fed cattle supply. But do not discount the placed-against supply shortfall that will develop this summer. As it stands, it is the biggest supply deficit in the last 20 years – even surpassing the spring 2013 void. This should also alleviate the market burden of current carryover issues.

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Governance Committees – It’s what Summer Business Meeting is all About

By Barb Wilkinson Sr. Executive Director, Governance & Leadership Development While many big sporting events have been cancelled or postponed, the big event for getting work done in the beef industry will be played – the Cattle Industry Summer Business Meeting.

There are two distinct outcomes from this meeting: 1. Checkoff Programs proposed and scored by producers for 2021, and, 2. Policy developed for NCBA’s 2021 Policy Book.

On the checkoff front, the Checkoff Committees, which are made up of members of the Cattlemen’s Beef Board (CBB) (USDA appointed beef producers and importers) and NCBA’s Federation Division Board (Federation) (appointed by their respective State Beef Councils) will meet. There are approximately 200 total CBB and Federation Board members doing the work on five program committees and two smaller working groups. Their work is guided by the Industry Long Range Plan.

Members of the Checkoff Committees will hear presentations from Checkoff contractors about proposed programs for FY 2021 in the form of Authorization Requests (ARs). Contractors include: NCBA, American Farm Bureau Foundation for Agriculture, Cattlemen’s Beef Board, Foundation for Meat and Poultry Research and Education, Meat Importers Council of America with Subcontractor North East Beef Promotion Initiative, National Institute for Animal Agriculture, US Meat Export Federation, and US Cattlemen’s Association with Subcontractor Kansas State University.

The committee members will then score the AR’s tactics. Those scores are passed along to the members of the Beef Promotion Operating Committee (BPOC) who make the final funding decisions for the national $.50 share of the $1-per-head national Beef Checkoff in September for FY 2021 which begins October 1. For more information about the Checkoff Committees and Working Groups, including agendas and member rosters, please visit beefboard.org and the Committees & Working Groups section. All checkoff meetings are open to all producers who pay the checkoff.

In other meeting rooms, NCBA’s seven policy committees will be discussing and voting on policy that will be added

to current policy to shape the 2021 NCBA Policy Book. The committees are made up of cattle producers from around the country representing state affiliate organizations, national breed organizations and a handful of product and allied industry council members.

Resolutions presented for consideration during the meeting will come from state affiliates or working groups made up of producers. This is also the meeting to review expiring policy – that policy which was passed in 2015. This review of either sunsetting, amending or renewing all policy that is five years old leads to a relevant policy book. In addition to new and expiring policy, committees will also revisit interim policy passed during the Annual Convention in San Antonio in February. They will have the opportunity to reaffirm, amend or defeat the interim policy.

Everything passed out of Policy Committees will be reviewed by the Policy Board of Directors for passage.

Once passed by the Board, all policy will be put into a Member Mail Ballot in the September issue of National Cattlemen newspaper where all members in good standing on July 31, 2020 will have the right to vote to overturn any decisions by the board.

If you are going to be in Denver July 27-30 and want to represent your state on a specific policy committee, please contact your state affiliate to find out your state’s process for filling seats. For a list of NCBA’s affiliates please go to NCBA.org.

2020 Committee Leadership Checkoff Committees/Working Groups

Federation Division Leadership Buck Wehrbein, Chair Clay Burtrum, Vice Chair

Nutrition & Health Russ Uselton, Co-Chair (FED) Tori Lienemann, Co-Chair (CBB)

Consumer Trust VeaBea Thomas, Co-Chair (FED) Bill McLaren, Co-Chair (CBB)

Safety Chris Jeffcoat, Co-Chair (FED) Bob Mitchell, Co-Chair (CBB)

Export Growth Bill Lickley, Co-Chair (FED) Jimmy Taylor, Co-Chair (CBB)

Investor Relations Working Group Kiley Martinell, Co-Chair (FED) Brian Malaer, Co-Chair (CBB)

Innovation Steve Walker, Co-Chair (FED) Katie Cooper, Co-Chair (CBB)

Market Research Working Group Alan Lyman, Co-Chair (FED) Norman Voyles, Co-Chair (CBB)

Policy Committees

Policy Division Leadership Todd Wilkinson, Chair Mark Eisele, Vice Chair Ag & Food Policy Deb Lyons-Blythe, Chair Joni Bucher, Vice Chair Cattle Health & Well Being Dr. Dale Grotelueschen, Chair Mary Ann Kniebel, Vice Chair Federal Lands Dr. J.J. Goicoechea, Chair Dave Daley, Ph.D., Vice Chair International Trade Missy Bonds, Chair Gene Copenhaver, Vice Chair

Live Cattle Marketing Steve Sunderman, Chair Jim Fryer, Vice Chair Property Rights & Environmental Management Tom McDonald, Chair Tom Hougen, Vice Chair Tax & Credit Scott Peterson, Chair Leroy Startz, Vice Chair Resolutions Jaclyn Wilson, Chair Alisa Ogden, Vice Chair

NATIONAL CATTLEMEN 11

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Region VII Update - COVID 19 and Legislative Actions

By Barb Cooksley, NCBA Region VII VP, Cooksley Ranch A barrage of emails packed with information for producers filled my inbox every day for weeks this spring. It was a nice break to take the 2 a.m. heifer check and remind myself why we raise cattle on perennial grass in the Sandhills to produce beef for our consumers.

Moonlight, a healthy calf, and a new momma bring it all into perspective!

Here is a rundown of some of the highlights in the region, which includes the states of Kansas, Nebraska, South Dakota and North Dakota: The legislatures of the four states were in various levels of activity when the pandemic caused shutdowns. Nebraska and Kansas sessions were cut short or suspended, to be resumed later this summer, the South Dakota legislature was completed, and North Dakota is in a non-legislative year.

North Dakota Stockmen’s Association (NDSA) The CFAP program, as introduced, left some significant gaps that left many North Dakota cattle producers insufficiently addressed in the current package. Among the holes: 2019 feeder cattle sold after the April 15 date, fed cattle either sold after the date or unable to be sold due to a lack of bids and calves born after the cutoff. The NDSA is recommending those later-tier payments ($33/head inventory payments) be fortified in upcoming legislation to make them more equitable.

The NDSA, together with the North Dakota Stockmen’s Foundation, spearheaded a Beef Relief effort, providing cash to the Great Plains Food Bank, which services nearly 300 local food banks, food pantries and charitable food programs, to purchase beef from North Dakota producers. This helped satisfy a tremendous surge in need for beef at the pantries and supported ranchers and local processors in the state.

To address the added at-home cooking being done with lockdowns and reduced foodservice openings, the NDSA paired with the North Dakota CattleWomen to launch a “What’s for Supper Wednesday” social media feature that showcases simple beef recipes and the North Dakota ranch families responsible for them each week.

The electronic land posting study the NDSA has been working on for more than a year is underway now. Landowners in three counties can electronically post their land through a pilot application that is tied to GIS land parcel/tax data from counties. The goal is to test the waters with this application and determine the good, the bad, the ugly and see if it is a viable option to consider legislatively moving forward.

Eastern North Dakota continues to be super-saturated, with limited planting able to occur there. NDSA is supportive of the Cover Crop Flexibility Act to permanently move up the haying and grazing date of prevented plant acreage to help address this problem.

The organization is advocating for that provision to be included in a subsequent COVID-19 package in Congress.

The NDSA is gathering information about the various marketing proposals.

Its board of directors has been holding a series of informational calls with various thought-leaders to increase understanding and in pursuit of the best plan to increase negotiated trade, improve price discovery, and better position our producers in the future.

South Dakota Cattlemen’s Association (SDCA) South Dakota’s legislative session was complete when the pandemic reached the state, except for “veto day” which was held on March 30 via Microsoft Teams. SDCA’s big issue during this session was a piece of legislation introduced by Governor Noem aimed at easing the hurdles for obtaining local (county) conditional use permits. While livestock feeding operations are most often associated with the conditional use permitting process in South Dakota, the legislation addressed the challenges for all conditional use permittees and we were pleased to see the legislation pass after several years of stymied efforts to streamline this process. Property tax issues, height restrictions for hauling

baled feed, and brand board investigators rounded out the key legislation SDCA supported.

Regarding COVID-19 response measures, Governor Noem did not issue a shelter-in-place directive, instead emphasizing personal responsibility; many local businesses closed in an abundance of caution. Businesses have started to re-open. However, there are still summer events being canceled, and we await the final word at the time of this writing whether two of SDCA’s largest fundraisers, beef sandwich booths at DakotaFest and the S.D. State Fair, will go forward as originally planned in August and September. Recent indications are the State Fair will be held, but details are not yet available regarding modifications that will be implemented due to COVID-19 concerns. DakotaFest organizers expect to announce in the next couple of weeks the fate of that event for 2020. Regardless of the final decisions on these events, we anticipate at least some level of budget impact.

Of course, cattle marketing issues are top of mind for many of our members, and we continue to gather information and evaluate the many proposals being floated. We have significant concerns about mandate proposals and continue to seek alternative solutions that don’t rely on that level of government intervention.

The pandemic has also induced a renewed cry for the re-implementation of mCOOL in South Dakota, along with much anger directed at the perceived lack of action by the Beef Checkoff to fix the current economic situation.

Recently, the S.D. Livestock Auction Markets Association announced its intention to launch a petition signature drive for a checkoff vote and it hopes the LMA will join their effort. We will monitor their progress closely and have begun to lay some groundwork to try to fend off that effort.

On the potentially positive side, we are also seeing strong interest in local beef, and our state officials have renewed efforts to make the shipment of state-inspected meat a more feasible endeavor for the small plants and lockers in South Dakota. We are grateful to have a robust and well-trusted state meat inspection program, which was able to respond quickly and bring additional harvest facilities online in recent weeks. This effort likely fended off a widespread euthanization of pigs in the wake of the Smithfield pork plant closure in Sioux Falls.

There’s no doubt these are challenging times, and SDCA’s small (but mighty!) staff continues to seek connections with our members, colleagues, and decisionmakers to find reasonable solutions for our industry’s challenges while not endangering the independent nature of our grassroots producers.

Kansas Livestock Association (KLA) The Kansas Legislature cut short the legislative session at just past the halfway point. The Governor has called a special session for June 3, but the agenda likely will be entirely COVID-19response focused. For the 2020 session, KLA prioritized legislation requiring accurate labeling of fake meat products.

Unfortunately, our bill did not get through the process before adjournment. We will need to reintroduce the legislation in the 2021 session.

KLA is actively pursuing a “Bid-theGrid” concept utilizing the Fed Cattle Exchange as the platform to negotiate the base price with the final value of the cattle determined by a standardized grid. Our goal is to reach the level of negotiated trade identified in Dr. Koontz’ research necessary for robust price discovery. KLA Cattle Feeders Council members feel strongly that this approach is preferable to any government-dictated marketing method.

We are hearing concerns from many members about the April 15 cutoff for qualifying for the CARES Act payment rate. That date was right in the thick of reduced harvest capacity, which impacted sales of both fed and feeder cattle. With the difference between the CARES Act and CCC payment rates, the April 15 cutoff makes no sense when placed against the reality faced by many KLA members. We have shared this concern with our Congressional delegation with the

Vll

intent to rectify the situation in a future stimulus package.

Nebraska Cattlemen (NC) The Nebraska Legislature suspended the 2020 session on March 16. The Legislature will reconvene on July 19 and should conclude no later than August 13.

Previous NC priorities in this session that include working toward long-overdue property tax relief and reform will continue. Additionally, the Legislature’s examination of the state’s brand laws from introduced legislation could also be impacted due to COVID-19.

Nebraska benefits from having numerous beef packing/processing operations. To varying degrees, all plants have experienced slowdowns or shutdowns. Currently, all plants are working toward full capacity. Bids for fed cattle continue to improve slowly. Feedlot currentness in marketing fed cattle, which impacts all sectors of the beef supply chain, is being watched closely.

As the 2020 Cattle Industry Summer Business Meeting approaches, NC leadership and staff are focused on key topics, including addressing marketing

issues and traceability among others.

These issues, especially marketing, are critical to short-term and long-term improvements that producers need.

Nebraska Governor Pete Ricketts has and continues to be a national leader supporting beef production during COVID-19. Gov. Ricketts has been directly involved in supporting employee safety at packing plants by facilitating University of Nebraska Medical Center health experts helping packing plants meet employee health needs. He hosts weekly conference calls with all meat protein processing plant officials and industry, including Nebraska Cattlemen, and has focused on regaining the full capacity of plants.

Additionally, Gov. Ricketts announced on Wednesday, May 27, in utilizing funds Nebraska received from the CARES Act, his Livestock Stabilization Program will provide direct support primarily focused to cow/calf producers, the economic engine to the state’s largest ag sector, the beef cattle industry. Please see the following link to that program. https://getnebraskagrowing.nebraska. gov/?page_id=82

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NATIONAL CATTLEMEN

Focus on Learning and Sharing Knowledge Earns Bledsoe Cattle Company BQA Feedyard Award Bledsoe Cattle Company has a long history, with nearly a century’s worth of experience raising, working, and feeding cattle from the Texas panhandle to the plains of eastern Colorado. But if anything, the years have taught the Bledsoe family and their crews that no matter how much you know, there is always room to grow.

This philosophy has earned Bledsoe Cattle a place as an industry leader, and the 2020 National Beef Quality Assurance (BQA) Feedyard Award.

The company’s commitment to BQA guidelines has not only positively impacted its own operations, but its suppliers and customers.

“Doing it right is our priority and following BQA guidelines in that process, it’s huge for us,” said Grant Bledsoe, who owns and runs Bledsoe Cattle alongside his father, Bob Bledsoe, and their families.

One reason the Bledsoes place

high value on BQA guidelines is due to advantages the company sees by following BQA across its incredibly diverse operations. Along with its main feedyard in Wray, Colo., which has an 8,000 head capacity, Bledsoe Cattle owns farmland, pasture ground, and grow yards in Phillips and Yuma counties, as well as farmland and a stocker ranch in Harding County, S.D. It all started when the family moved from Texas to start a cow-calf and sheep operation in southeastern Colorado in 1925. Henry Bledsoe, Bob’s father and Grant’s grandfather, relocated the family and cattle operations to Wray in 1948, and added a feedlot in the early 1950s.

The current feedlot, located to the north of the town, was constructed in the 1970s, as the Bledsoes developed their farmland and pastures. Now, the fourth generation of the Bledsoe family is learning the ropes, down to the

Grant Bledsoe, Owner of Bledsoe Cattle Company, Wray, Colorado

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tradition of walking the feedlot pens each Sunday to personally inspect the cattle.

Having consistent standards for cattle care and treatment has been a key to the company’s success across all its facilities over the years, and the family have been proponents of BQA for decades. Providing training and certification in BQA practices every three years for the company’s employees and contracted crews — some of whom have worked with the company for 40 years — continues to ensure consistent expectations for both employees and cattle at all properties.

“Bledsoe Cattle Company has implemented training and certification to the degree that permeates every aspect of their operation,” said Paul Dykstra, beef cattle specialist at Certified Angus Beef, which also recognized Bledsoe Cattle with its Commitment to Excellence award for feedlots in 2018.

“Low-stress cattle handling techniques are a matter of standard procedure in the Bledsoe operation, and I know that management takes part in hands-on training as they set an example for the feedlot crew,” Dykstra said.

The company’s diverse operations give it a unique advantage in implementing BQA best practices.

Most calves are delivered to the company directly from weaning by a supplier, allowing Bledsoe to handle and care for the cattle for all but approximately the first 200 days of each calf’s life. Through several phases at the company’s feedlots, and winter and summer grazing locations, cattle are able to slowly acclimate to feedlot pens, bunks, processing, and vaccinations.

Not only has Bledsoe Cattle taken BQA guidelines into account at each facility, they’ve also built on their own experience. For example, the company’s weaning pens are specially designed to direct calves that begin to circle by placing perpendicular waterers at the center of the pen’s rear fence line, pointing them back toward feed bunks.

The number of properties that Bledsoe Cattle utilizes brings its own challenges, too. Between its own properties and in moving cattle from its cow-calf producer-suppliers, cattle may be transported by truck as many as six times before reaching a packing facility.

Transportation is taken very seriously, with one of Bledsoe Cattle’s owners or representatives present at each delivery of calves and nearly all shipments of fed cattle. Four of the company’s employees are also trained and certified in the BQA Transportation program, along with having decades of combined cattle hauling experience. By applying BQA’s transportation and low-stress cattle handling guidelines, going through the transportation process multiple times actually helps condition cattle to shipping, minimizes stress on both cattle and employees, and reduces rates of bruising and dark cutters.

In fact, with each positive transportation experience, cattle gain a sense of ease and comfort that ultimately yields a smooth final shipment.

“With everything we do, the gentler on those cattle we are, the easier on

those carcasses we’re going to be,” Grant Bledsoe said.

The Bledsoes have taken this mentality beyond their own operations as well. For one, regularly providing training to the company’s hired processing crews allows livestock operations across eastern Colorado to reap the benefits of proper chute-side BQA techniques. The company has also established strong relationships with individual ranches and suppliers across the northern Great Plains states and works closely with them on cattle management topics.

Colorado Livestock Association President Mike Veeman and William Hammerich, CEO, said the Bledsoes are “true believers in low-stress cattle handling procedures.”

“To say they “wear BQA on their sleeve” is an understatement, as demonstrated by their efforts to reach back up the supply chain and encourage the ranchers that they purchase calves from to also adopt a robust BQA program,” Veeman and Hammerich said.

The Bledsoe family have also been advocates for the beef industry for decades, providing opportunities for the public and consumers to see into its operations and feel greater confidence in the products they consume. The company often provides tours of its operations for groups arranged by its long-time packer, Cargill Meat Solutions, from international experts considering export opportunities, to sustainability tours for organizations such as The Nature Conservancy.

The company also hosts around 300 birdwatchers at its pastureland each spring to view the mating ritual of the greater prairie chicken, providing opportunities for visitors to learn about cattle and to debunk myths about the beef industry.

By continuing to focus on learning, and by providing opportunities to share their knowledge with partners and consumers, Bledsoe Cattle aims to adapt and improve its operations to benefit its cattle, partners, and ultimately the beef industry as a whole.

The BQA Feedyard Award is funded in part by the Beef Checkoff with additional support from Cargill. For more information on Bledsoe Cattle Company and other 2020 BQA Award winners, visit https://www.bqa.org/ about/bqa-awards.

About Beef Quality Assurance Beef Quality Assurance (BQA) is a nationally coordinated, state implemented program funded by the Beef Checkoff that provides U.S. beef producers guidelines and certification drawn from common sense husbandry techniques and accepted scientific knowledge on how to raise cattle under optimum management and environmental conditions. BQA reflects a positive public image and instills consumer confidence in the beef industry. When producers implement the best management practices of a BQA program, they assure their cattle are the best they can be. For more information on BQA, visit http://www. bqa.org/.

NATIONAL CATTLEMEN 13

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NEWS Promoting Beef As Summer Grilling Season Kicks Off Summer isn’t summer without grilling. Grilling isn’t grilling without beef. And beef isn’t beef without farmers and ranchers. These are the key ideas that Beef. It’s What’s For Dinner., funded by the Beef Checkoff and managed by the National Cattlemen’s Beef Association, is making clear to consumers this grilling season.

Starting the weekend prior to Memorial Day, Beef. It’s What’s For Dinner. released a video stating that this summer grilling season is brought to you by beef farmers and ranchers. The video spot, called “The Original Sponsors of Summer Grilling Season,” features real beef farmers and ranchers from around the country working from sun-up to sun-down to raise cattle, and ends with one of the producer-families enjoying a meal of real beef burgers, with a voiceover saying “Summer Grilling Season: Brought To You By Beef Farmers and Ranchers.” As of mid-June, this video has had more than 1.6 million views. As we move into summer, the video will continue to be promoted to consumers through advertising on YouTube, Connected TV (like Hulu) and some state beef council partners may be using a version of it on local broadcast television buys in their state. Visit BeefItsWhatsForDinner.com and click the YouTube icon at the bottom of the page to see this and other videos on the Beef. It’s What’s For Dinner.

YouTube channel.

Recognizing that consumers were ready to get outside and grill, Beef. It’s What’s For Dinner. declared May 28, 2020 the first official National Beef Burger Day. The team also placed a segment featuring real beef burger recipes on Celebrity Page TV, which reaches an audience of more than 10 million. The segment aired two times. Wellknown blogger influencers, such as Crème De La Crumb, also created beef burger recipes and shared them on their own social media platforms to inspire their followers to enjoy a real beef

burger. Beef. It’s What’s For Dinner. got in on the fun by serving up a variety of drool-worthy beef burger content and encouraged consumers to share their favorite #BeefBurgerBrag photos on social media for a chance to win grilling swag. Visit the Beef. It’s What’s For Dinner. Facebook page to see some of this great burger content. With a reach of more than 3.7 million and social media engagements of more than 28,000, five winning beef burger recipes were selected, including: •

• • • •

Griddle Grilled Beef Burger, complete with Zinfandel pickled turnips and whipped mustard-dill cheese spread ​ Basic Bodacious Beef Burger, loaded with smoked sausage and grilled pork belly ​ Smoked Beef Burger, topped with pulled BBQ beef brisket and provolone cheese on a pretzel bun ​ Smash Beef Burger, complete with bacon, egg, and cheese ​ Traditional Grilled Beef Cheeseburger, topped with lettuce tomato and fresh red onion

Several major media outlets were also pitched, with positive stories about beef placed in major news outlets that reach consumers around the country. For example, FoxNews.com, which has a reach of more than 72 million nationwide, featured Bridget Wasser, NCBA meat scientist and butcher, sharing simple steak swaps in case consumers can’t find their favorite cut of beef at the grocery store. Similarly, the Daily Meal, which has a reach of 2.2 million nationwide, interviewed Wasser for a story about how to make a steakhouse-worthy steak at home.

In June, Beef. It’s What’s For Dinner. is encouraging Americans to get grilling by showcasing drool-worthy images of 50 handcarved state-shaped steaks as part of the “United We Steak” Campaign. Visit UnitedWeSteak.com where you’ll find an interactive map of all 50 state-shaped steaks that form the entire nation, along with state-themed beef recipes, a “meet your state beef producer” section and other fun and informative facts about beef. Follow Beef.

It’s What’s For Dinner. on Facebook, Instagram, Twitter, YouTube, LinkedIn, Pinterest and visit BeefItsWhatsForDinner.com to continuously see new content.

Record Breaking Webinar on the Evolution of Meat Eating What we choose to eat is essential for nourishing the mental, physical, and emotional aspects of our well-being with different foods holding different value for people both culturally, and as individuals. For years we have observed that few foods pique the public interest the way meat does.

There is great interest in all aspects of meat consumption, including if we eat it, how much and how often, its health and economic impact, and place in society, just to name a few. In an effort to educate health and nutrition professionals on the importance of meat-eating throughout human evolution, the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, hosted an educational webinar, Meat and the Human Diet: Tracing Our Evolutionary History and Today’s Cultural Significance, on Thursday, May 21.

The webinar examined the evidence on meateating as one of the first major evolutionary changes among the earliest humans. Moreover, the webinar identified ways in which meat-eating may have provided humans with a developmental advantage, likely due to the impact of specific key nutrients meat uniquely provides. Throughout the webinar, speakers explained the cultural significance of meat-eating. Health and fitness professionals who attended the educational webinar were eligible to receive one continuing education credit.

The webinar included insights and expertise from speakers Dr. Shalene McNeill, Dr. Briana Pobiner, and Dr. Rachel Laudan. Dr. McNeill is a Registered Dietitian and the executive director of Nutrition Science, Health and Wellness at NCBA. In her role, Dr. McNeill directs the national human nutrition research programs for the Beef Checkoff and also leads nutrition education efforts which reach thousands of scientists, registered dietitians, medical doctors and other health professionals. Dr. Pobiner is a Paleoanthropologist at the Smithsonian’s National Museum of Natural History and an Associate Research Professor of Anthropology at the George Washington University.

Her research centers on the evolution of human diets with a focus on meat-eating but has also included topics as diverse as human cannibalism and chimpanzee carnivory. Dr. Laudan is a food historian and author of the award-winning Cuisine and Empire: Cooking in World History. Dr. Laudan is known for her ability to provide expertise on food politics through social media and public sessions, ranging from the James Beard Foundation to the Oxford Symposium on Food and Cooking.

Dr. Pobiner kicked off the webinar by illustrating the significant evolutionary changes in the human

diet and discussed the effect of carnivory on human evolution. She reviewed the evidence for the earliest human carnivory and described her hands-on personal experience examining butchery marks on a 1.5-million-year-old fossil from northern Kenya (see image). She explained that this fossil is direct evidence of our ancestors optimizing meat, fat, and bones. Dr. Pobiner described how these butchered animal bones can provide insights into the methods and tools early humans used to process animals of greater size, species, and habitat diversity than any other nonhuman primate for food.

Next, Dr. Laudan, outlined the benefits of cattle and meat eating across the centuries.

She reinforced cattle’s ability to upcycle plant materials, mobilize farm equipment, provide grease and leather, and supply a high-quality source of protein. She discussed the value and sacredness of cattle in different time periods, locations, and cultures. She also provided insight into the human transition of domesticated meat-eating, once an occasional activity, to its role as an everyday luxury. Dr. Laudan concluded her presentation by illustrating how beef has been a symbol of strength and power around the world for centuries, and how beef is a cuisine that anyone can enjoy.

Dr. McNeill closed the webinar presentation with a concise update on the significant role beef plays in today’s food culture. She explained the evolution toward a leaner beef supply and emphasized beef’s versatility, from cut, to size, to price. Dr. McNeill also discussed the nutritional value of beef and how, throughout history, beef has been sought out for its nourishment and high-quality protein. In addition, she reviewed the impact of the recent packing plant facility closures and the effects on the beef supply chain, noting that beef packing plants are rebounding quickly and now functioning at 95 percent usual capacity.

Overall, a total of 4,030 people registered for the webinar, including registrants from across the globe, and 1,955 individuals tuned in to the live recording. Webinar attendees, including several nationally recognized nutrition experts, also shared content from the webinar on their social platforms helping to expand the impact of the webinar.

The attendance created a record-breaking retention rate of 48.5 percent. Thus far, 932 attendees have shared their feedback through a post-webinar survey. The majority (93percent) of respondents indicated that the webinar was “good” or “excellent,” and 97 percent of respondents reported they would recommend future webinars like this one to health care professionals. Several favorable comments were made following the webinar such as:

•

“Very good job of presenting historical information about beef in a way that was objective. I have a higher opinion of the Cattlemen’s Beef Board because of this webinar.”

• “One of the most informative webinars I have attended in a while.”

• “I have over 30 years as an RD and this presentation was refreshingly new and engaging.”

Altogether, the webinar was effective for sharing new information, across a far-reaching audience, about the history of meat eating and its impact on human evolution and today’s culture.

Beef Checkoff sponsored informational webinars, such as this, help educate health professionals and food, nutrition, and culinary experts not only on beef nutrition, but also the important role beef plays in our society. It provides them with the knowledge base needed to increase their confidence in recommending beef to their clients, patients and customers.

The webinar was recorded and is now available for all interested listeners at https:// www.beefitswhatsfordinner.com/nutrition/ health-professional-resources/meat-and-thehuman-diet.

This image displays butchery marks on a 1.5-millionyear-old fossil from Kenya that Dr. Briana Pobiner examined. Picture provided by Dr. Pobiner.

14

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NATIONAL CATTLEMEN

Councils Join Forces to Expand Digital Beef Advertising State beef councils around the country have joined forces to invest state-controlled Beef Checkoff dollars in Beef. It’s What’s For Dinner. digital advertising campaigns. These efforts significantly expand beef promotion in their own states as well as in consumer-abundant U.S. regions. The councils are working with the staff at NCBA, a Beef Checkoff contractor, to provide reach to about 70 million consumers, creating more than 733,000 visits to the Beef. It’s What’s For Dinner. website through Google advertising, generating an estimated 56 million national and state video views on YouTube and producing more than 2.3 million radio listens through Spotify.

Seventeen state councils have instituted “state footprint” media campaigns to feature Beef. It’s What’s For Dinner. advertising within their own states. Four multi-state collaborative media campaigns have also been created, with states focusing on four regions – Southeast, Western United States, Top 5 States

and the Midwest – with campaigns targeting beef consumers.

Avenues selected for the advertising include Google Search Advertising, YouTube Video Advertising and Spotify Audio Streaming Advertising. Google Search Ads deliver hundreds of thousands of consumers to the Beef. It’s What’s For Dinner. website, the Beef Checkoff’s one-stop resource for all things beef.

YouTube ads showcase beef through the power of video advertising, inspiring consumers with craveworthy beauty shots of beef. YouTube is the “new TV,” with the world watching 1 billion hours of YouTube videos daily. Spotify is the world’s largest and fastest growing radio streaming platform, and radio ads on that platform bring to life the sizzling sounds of beef, backed by beef’s signature Copeland Rodeo music.

States have spent more than $1.1 million in state-controlled checkoff dollars toward the campaigns so far in 2020. Because the NCBA staff has expertise in advertising

and marketing, the campaign can efficiently focus more directly on checkoff-funded Beef. It’s What’s For Dinner. digital media related to beef cooking, nutrition and production, helping optimize the campaign. Beef content is also extended and Beef Checkoff funds leveraged, promoting a consistent beef message and strengthening the national and state elements of the Beef Checkoff.

“Through these campaigns state beef councils can extend both national and state-developed content, leveraging funds from both the national and state halves of the $1-per-head national Beef Checkoff to reach consumers and promote a consistent beef message,” says Buck Wehrbein, a Nebraska cattle feeder and chairman of the Federation of State Beef Councils. “This allows state beef councils to spend their dollars more efficiently, focusing on stories about local producers while expanding distribution of recipes and other national Beef. It’s What’s For Dinner. assets throughout the country.

The extension is a great example of

how individual state beef councils and the Federation of State Beef Councils partner on projects and efforts to help increase beef demand.”

The Beef. It’s What’s For Dinner. media campaign was supported by councils in Wyoming, North Dakota, Nebraska, Oklahoma, Texas, Ohio, Wisconsin, Washington, Utah, Idaho, Iowa, Pennsylvania, Louisiana, Virginia, Arizona, Kansas and Florida.

In addition, the Northeast Beef Promotion Initiative participated in the campaign.

State beef councils supporting digital beef advertising within targeted regions are in North Dakota, Iowa, Illinois, Wyoming and Northeast Beef Promotion Initiative (Top 5 States Media Campaign); Michigan, Missouri, Minnesota, Iowa, Illinois, Nebraska and North Dakota (Midwest Media Campaign); Oklahoma, Iowa and North Dakota (Western US States Media Campaign); and Alabama, Florida, Georgia, Kentucky, Tennessee, Mississippi, South Carolina and North Dakota (Southeast Media Campaign).

CATTLE INDUSTRY CONVENTION

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february 3-5, 2021 | Nashville

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NATIONAL CATTLEMEN 15

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A Longer Perspective on Cattle Marketings

By Don Close, senior animal protein analyst with Rabo AgriFinance “This squall between the packers and the producers of this country ought to have blown over forty years ago, but we still have it on our hands…”

Senator John B. Kendrick of Wyoming, 1919 We are living in the biggest cattle market disruption most people alive have ever seen. People are brimming with frustration, anger and uncertainty.

Those emotions are feeding calls for all and any changes to industry structure and marketing rules. While I argue some changes are probably warranted, I also contend now – with so much emotion leading any discussion – is the worst time to demand major rule changes through government intervention.

Let the waves settle, and in the calm, make an appraisal of what needs to be done.

Senator Kendrick’s quote above reminds us that the industry has divided itself before. Making hasty changes now that cause unintended issues could result in a prolonged divide instead of positive solutions.

The current market environment began with the Tyson fire at Holcomb last August. Then the Covid-19 stay-at-home orders, the closing of restaurants, forcing heavy volumes of food through retail grocery stores, and the severe slowdown and temporary closures of many beef and pork processing plants. That was a lot of events to throw at a market. That is why I believe this past year’s events have been way more disruptive than 9/11, the BSE cow, or the whole herd dairy buyout of the 1980s.

Yet the problems that the current market environment put a spotlight on aren’t new. Presenting them as new issues is an emotion-grabbing fallacy.

For the past 20 years, economists and researchers have evaluated the merits and drawbacks of modern marketing practices as well as the potential impacts of government intervention on those practices.

The Beginning of Modern Marketing Look back at when the majority of fed cattle were sold in cash transactions.

Because cattle were selling on the average, the industry drove to be lowcost producers and tried to compete with pork and poultry. That was a losing period in our history. One in four beefeating experiences was a bad one, and beef demand (with the help of medical professionals) was declining year after year. In 1991, the first National Beef Quality Audit determined there was $280 of defects in every animal. The seedstock sector made the first real attempt at improvement. Through cattle genetics, they helped the industry start to make a measurable increase in grading rates and eating quality of beef.

Meanwhile, Certified Angus Beef was launched in 1978 and soon started paying a premium for carcasses that met their requirements. Other labeled products soon followed. As cattle quality improved, cattle feeders wanted to capture a greater share of the value and

started communicating with packers.

That is what ushered the transition to formula trades.

Consumer satisfaction has escalated, and beef demand has been on the increase for years.

The Last Big Formula/Cash Clash By 2002, more and more cattle were selling on a formula, and part of the industry grew worried there wasn’t an adequate number of cattle being sold for true price discovery. Multiple legislative proposals surfaced to control packer activity and cattle marketings, including the 2002 Farm Bill’s Johnson Amendment that would have prohibited meat packers from owning, feeding and controlling livestock, and Senators Enzi and Grassley’s proposed legislation in 2003, which would have forced packers to buy a growing share of animals on the cash market, to 25 percent by 2008.

Debate on the proposals had economists, producers and industry groups in an uproar. A 2002 article titled “Cutting Verticals Down to Size: Congress, the Farm Bill and Packer Control,” by Dr. Marvin Hayenga from Iowa State University, in the Agricultural & Applied Economics Association’s Choices magazine challenged ag economists, who found themselves across the spectrum of opinions on the proposed changes, to find better ways to tackle and resolve the difficult questions facing the industry.

In January 2002, a white paper titled “Prohibition on Beef Packer Ownership, Feeding and Control of Cattle: Comments and Discussion,” by a group of ag economists discussed why formula sales were more prevalent than forward contracts, as well as benefits to the cattle feeder and benefits to the packer. It also gave an explanation for how formula pricing improves cattle quality, which ultimately leads to better demand.

The debate over the Johnson Amendment and follow-up attempt to make changes to the 1921 Packers and Stockyards Act simmered until the massive January 2007 Grain Inspection, Packers and Stockyards Administration (GIPSA) Livestock and Meat Marketing Study. The multi-year research was done

by RTI International, an independent research institute. A portion of the RTI Study was extensive interviews with cattle feeders, large and small, and packers. It gave valuable perspective on the transition to formula marketing and the economic benefits to both feeders and packers. It also explained how formula sales boost beef quality and provide a better product to consumers.

The “Tragedy of the Commons” Despite its success, formula marketing has continued to be viewed with an uneasiness in part of the industry. A 2011 article, “New Market Structure; Old Market Challenges,” written by J. Robb, explained how cattle feeders – since 1883 – have seldom felt they were getting a fair shake from the packer. The article also discussed the opposition to AMAs by producers who felt the sales prevented full transparency and price discovery.

More recently, in June 2020, Dr. Stephen Koontz, one of the major researchers and economists for the RTI Study, picked up where that study left off with a white paper, “A Synthesis of Economic Costs and Benefits of AMAs to the Cattle and Beef Industry.” His research showed that the economic impact to the industry of limiting AMAs would be about $2.5 billion per year.

Koontz also discussed how price discovery is expensive for those who provide it. He called it the “Tragedy of the Commons,” when everyone uses a common resource but not everyone pays in equally. Pretty soon the resource is used up and no one is the beneficiary. One alternative he offered is for formula sellers to build a pool from the sale of cattle to compensate the producers that are still using the cash market. If cash volume starts to erode, the price benefit goes up to a price that generates more participation.

The Living Proof of Theories Since the beginning of formula marketing, economists have theorized how the practice improves beef quality and consumer demand. The theories have become reality.

The low ebb in beef quality grading was in May of 2005. The weekly percentage of choice and prime carcasses was at 50.7 percent. Since that low point, cattle feeders have looked for better management and animal health practices to make more use of the better genetics the seedstock sector has delivered.

By offering the cattle feeding sector a carrot – premiums and rewards in alternative marketing agreements (AMAs) – to move quality forward, the entire industry has benefited with amazing results. The percentage of choice and prime carcasses today is between 83 percent and 85 percent.

The Call for Clear Thinking There is very thorough and complete research showing that government intervention into markets or requiring producers to sell a given percentage of their cattle in the cash market could be

disastrous. The core of a free and open market is for all participants to make sales and purchases as they see fit for their business. Premiums and discounts get the right cattle to the right market, at the right time.

The current drive to initiate a 50-14 rule or even a 30-14 rule would push cattle feeders back to selling more cattle on the average and away from the formula trades that reward for quality.

With less incentive to produce top quality, feeders could be forced to cut costs, which could destroy the pattern of better grading rates, higher customer satisfaction and growing beef demand.

Total U.S. cattle numbers reached a bottom in 2014 at 88.5 million head.

Today, we are near the cycle peak and there are 6 million head more cattle than in 2014. Over the same time there have been nominal increases in slaughter capacity. We have to be willing to admit that the loss of market leverage cattlemen are seeing today is the result of the industry expanding cattle supply and not slaughter capacity.

We are still dealing with the most disruptive market environment this generation of cattlemen has ever seen.

While emotions are stirred up, it is NOT the time to be making structural changes to the marketplace. We need to first fully understand the consequences of any major policy changes, or we could be making the market even worse for future generations.

To hear more from Don Close about this topic you can view the latest Cattlemen’s Webinar Series – Today’s Volatile Cattle Market and How to Navigate it by visiting NCBA.org/ cattlemenswebinarseries.aspx. You can also register for the upcoming webinars focused on Beef Cattle Mineral Nutrition.

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