June 2021 - National Cattlemen

N A T I O N A L CATTLEMEN

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

JUNE 2021 • Vol. 37, No. 9 • NCBA.org

MARKET SNAPSHOT

WEEK OF 5/17/2021 (prices vs. a year go) SOUTH CENTRAL 500-600 LB. STEERS $158.77

$153.89

3.2%

LIVE FED STEERS $119.70

$112.31

6.6%

CHOICE BOXED BEEF $314.06

$459.04

31.6%

OMAHA CASH CORN $7.09

137.2%

$2.99

IN THIS ISSUE 3

LEADERSHIP COMMENTS

An update on NCBA’s work with cattle marketing and the importance of staying engaged with your membership organization.

4

POLICY

A deep dive into where the industry sits with exports market, what to anticipate from the Biden administration on the trade front and continued conversations in the sustainability space.

8

EDUCATION

Insect control and improving cattle health.

1O WEATHER

A summer weather outlook and how the forecast might affect management practices.

12

MARKET MATTERS

14

FEDERATION

Consumer price index and inflation – how are these topics impacting the market?

States are showcasing sustainability efforts through unique programs and events.

Administration Unveils Details on 30x30 Plan Since President Biden took office, conservation has become one of the most frequently used words in Washington. At Ric Coombe’s Thunder View Farms, on the verdant fringe of the New York Catskills, the word itself actually may not be heard all that often — but actions speak louder than words. “Farmers and ranchers, these are people that don’t talk about conservation, they actually do it,” Coombe said.

Simply put, the 30x30 plan – now dubbed “America the Beautiful” – sets a goal of conserving 30 percent of our nation’s lands and waters by the year 2030.

Many cattle farmers and ranchers across the country are concerned that the sweeping initiative will provide the administration with cover to seize land, restrict U.S. beef consumption, or otherwise shrink the cattle and beef industry.

NCBA’s policy team in Washington, D.C., is working aggressively and tirelessly behind the scenes to make sure cattle producers are partners in this environmental effort — not casualties.

“In our initial inspection of the report [released in May] and the direction we’re seeing USDA and the White House take, we can see that they do intend to lead with an acknowledgement of the importance of working lands,” said Ethan Lane, NCBA vice president of government affairs. “They want to get a handle on how much conservation work is already being done by our producers, and that’s good news.”

This approach of empowering agriculture to take the lead on the ground is one that has made sense for Ric Coombe’s operation for decades. Coombe is the fourth generation of the family to work Thunder View Farms in Grahamsville, N.Y., and his children will be the fifth.

“Conservation has always been a part of what we do, all the way back to our original soil and water projects that NRCS executed on the land more than 40 or 50 years ago now,” said Coombe. “Ponds they created then are still water sources for our operation today.”

In 2018, Thunder View Farms was selected as one of six regional honorees in NCBA’s Environmental Stewardship Award Program (ESAP). More than half their land – approximately 800 acres – is under a permanent conservation easement.

“I see it as an opportunity to let science be our guide,” said Coombe about 30x30. “Most producers care an awful lot about the land. That’s what feeds them, and stewardship of our resources is a bedrock.”

Between 1961 and 2018, the U.S. cattle and beef industry reduced emissions by more than 40 percent, thanks to continued sustainability efforts, conservation programs and improved resource use.

Eyes Peeled for Pitfalls Despite a generally optimistic view of the role cattle producers can and do play in environmental stewardship, Coombe is not taking the recently announced 30x30

details without a grain of salt. When he looks back at the programs implemented on his own operation, largely funded and backed by New York’s Watershed Agricultural Council, he sees the balance of power as a key ingredient to long-term success.

“Where we have to be cautious with 30x30 is that the successful programs we’re talking about [in New York], they’re supported by government agencies, but they are run by farmers with support from agricultural experts,” he said.

Likewise, NCBA’s policy team is not letting pleasant promises distract from drilling down hard into the potential pitfalls of the administration’s plan.

“We were pleased to see USDA and the Department of the Interior incorporate many of the recommendations of America’s farmers and ranchers into their first real framework for 30x30,” said Kaitlynn Glover, NCBA executive director of natural resources. “This plan is a productive starting point that builds on the input of a diverse array of stakeholders – but it is just that, a starting point.”

In the months to come, Glover said the real work will be to hold the administration, federal agencies, and Congress to the promises they have made in initial conversations with agriculture industry groups.

Lane agreed, “Just because this is a good start, doesn’t mean that we’re done here. We’re going to have a lot of work left to do and a lot of areas of concern. Things like changes to grazing rights in the West, establishing new migration corridors for wildlife, or any other large land designations that could change what multiple use looks like for our producers – these are all going to be areas where we stay in close conversation with the administration to make sure NCBA members’ voices are strongly represented.”

In last month’s report from the Department of Interior, one of six initial recommendations focuses specifically on agriculture. NCBA is engaged in proactive and constant communication to make sure the White House understands the vital role producers play in safeguarding natural landscapes. NCBA was pleased to see many of the recommendations we fought hard for included in the final language, including: • Incentivize voluntary conservation efforts and provide new sources of income for producers • Improve the effectiveness of USDA conservation programs through the 2023 Farm Bill • Leverage public-private partnerships and prioritize the expertise of ag producers • Create jobs in rural America that support sciencedriven stewardship and conservation efforts • Support the voluntary conservation efforts of private landowners and protect private property rights Glover noted that avoiding misinformation or scare tactics will be crucial to staying on track in negotiations in the months to come. “At this time, we have not seen

Continued on Page 5

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NATIONAL CATTLEMEN

Protecting Profitability for the U.S. Cattle Producer

The World Belongs to Those Who Show Up

By Colin Woodall, NCBA CEO

By Jerry Bohn, NCBA President have employment at these packing plants need to get to work.

And finally, there was consensus with the need to reauthorize mandatory price reporting. LMR was due to be reauthorized for five years last September but it was only reauthorized for one year. LMR now expires September of this year. We need another five-year reauthorization for the inclusion of a cattle contracts library so U.S. cattle producers know the types of contracts that are available. This will help our members determine if any of those contacts fit within a producer’s marketing plan.

As we look at protecting your opportunities and profitability, it's more than just NCBA’s work with cattle marketing. It's also making sure that we put in place a business climate that helps you succeed. And that is all the buzz right now as we look at the proposals coming out of President Biden's administration regarding tax increases.

If there’s one thing I know it’s that America’s farmers and ranchers deserve certainty in the tax code.

Without it, transition planning for the next generation of producers is nearly impossible. And, we know that typically when there is a tax increase, those of us in agriculture carry a significant part of that burden. When you look at some of the proposals we have seen or talk regarding the step-up in basis, the Death Tax, capital gains taxes and depreciation, all of those are going to have a direct impact on us. We understand that a lot of money has been spent by this administration and the previous administration in trying to address the pandemic, but we’re going It’s in the best interests of both producers and to do everything we can to consumers for the DOJ to get to the bottom make sure that we’re not the ones that pay those of the current market dynamics, and assess bills. We are fighting to why they seemingly always result in producers protect all of the great getting the short end of the deal. Cattle tax provisions that we producers deserve to know whether or not the achieved from the past price disparity that has plagued our market four years during President Trump's administration. is the result of anti-competitive or other In particular, we are inappropriate practices in the packing sector. trying to protect the step up in basis. In fact, we just saw the results of a study that we were a part of, The next point of consensus was in along with other small businesses, that terms of packing capacity. We know makes it very clear that preserving the that the squeeze point right now in our step up in basis is going to be a key beef supply chain is at the processor. component in allowing the generational We have plenty of consumers that transfer of operations. If we lose that want our product, and we have plenty step up in basis, it is going to be a tax of cattle. We just don't have plenty nightmare for cattle producers and of places to process. NCBA has long worked to increase processing capacity NCBA is not going to allow that to and expand opportunities for producer happen. profitability by lowering the hurdles Our focus is to make a difference for for small and medium size processing cattle producers every day. We are the facilities. We are working with Congress only trade association that never closed and the administration to try to find its doors throughout the pandemic. It ways to incentivize new packing was our priority to be there with you capacity and also provide incentives every step of the way. We're going to try to expand existing capacity. We to remain there fighting for you, our know this will go a long way in helping members, because we have to have you ease the tension that we're currently be successful in order to make sure that seeing in the supply chain. It's also we're putting that high quality protein important to note that we've been on the plates of Americans and our contacting Congress to let them know that these individuals who currently consumers around the world.

Profitability is a common theme in the conversations I have with members, and for good reason, which is why improving the business climate for U.S. cattle producers is one of NCBA’s top-line priorities. This past month, our organization has been hard at work on two issues that remain top of mind for members – cattle marketing and taxes.

By now, you’ve probably heard that last month six groups representing different demographics within the U.S. cattle industry came together to talk about the current state of the marketplace and what can be done to try to address these issues on the behalf of cattle producers. These groups came to consensus on three items that we all believe can go a long way in trying to help the overall strain within the countryside. Leading that list is pushing the Department of Justice (DOJ) to conclude its investigation that was launched over a year ago.

It’s in the best interests of both producers and consumers for the DOJ to get to the bottom of the current market dynamics, and assess why they seemingly always result in producers getting the short end of the deal. Cattle producers deserve to know whether or not the price disparity that has plagued our market is the result of anti-competitive or other inappropriate practices in the packing sector. NCBA is working with Congress to ensure the requests for a progress report will be met at DOJ with the urgency it warrants, and we hope to see results from the Attorney General soon.

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

Senior Editors

John Robinson Jill Johnson

Throughout my time working for NCBA, I have heard many volunteer leaders say, “The world belongs to those who show up!”. Each time I hear it, it still resonates as true. In short, if you are not willing to help chart a path, it becomes awfully hard to complain that the path is not smooth enough. Pointing out problems is easy, and the times we find ourselves in now only magnify the problems. Input costs are going up steadily. Inflation is rearing its ugly head. Packing capacity cannot handle our needs. Washington wants to increase our taxes and jeopardize our ability to keep our operations intact.

We are tired of wearing masks. The list of problems seems to be endless, and I believe everybody has plenty of reasons to be mad.

Justification of being mad aside, it is important to think twice before casting stones; it is another thing to step up and work on solutions.

NCBA and our state partners are the organizations that work on solutions. Those solutions, however, would never materialize without the members who show up, engage, debate, and ultimately, make the decisions on how NCBA should move forward. This producer engagement and decision making is what gives NCBA its power and is reflective of a true grassroots, producer-led organization. All you had to do was be in Denver last summer for the Live Cattle Marketing Committee meeting to see the power that comes with showing up and engaging.

As the CEO of this association, I do not make our policy decisions.

Just to let you in on another misconception, the packers do not make the decisions either! Our job as your staff team is to take the decisions you make and implement them. It is this member/staff team approach that allows NCBA to be the most effective voice for the cattle industry. We do have plenty of detractors, though, and they love to throw rocks. We are bombarded daily by producers who see fit to call us every name in the book. My intelligence has been questioned so

many times by some of these callers that I sometimes wonder how I manage to get myself dressed in the mornings without help. Sometimes people just need to vent. As your staff team, it is our job to take the tongue-lashings and talk these producers through the reasons why we take certain policy positions. Our volunteer leaders get more than their fair share of these phone calls, too. We do not allow the calls and criticism to stop our quest to make things happen. In fact, I often remind our team that dogs do not bark at parked cars.

We are in this together to protect your right to produce cattle and high-quality beef now and by future generations on your operation. We have plenty to be concerned about when it comes to the cattle markets, but NCBA is the only organization that came up with a member-directed plan to try and improve things. We are in our second quarter of implementing that plan to improve price discovery by increasing cash trade. We also continue work to address the labor issues in the packing plants to get them running at full capacity again so we can process the cattle we have ready to go. Since packing capacity is one of the biggest drivers of the market doldrums, we are also finding ways to incentivize the construction of more capacity via local and regional packers.

There is a tax proposal on the table in Washington that calls for eliminating the stepped-up basis.

This action would be devastating to the generational transfer of cattle farms and ranches. The 30x30, now known as the “America the Beautiful” plan, has many wondering if the government is going to take their land. EPA’s Waters of the United States, or WOTUS, regulations are back on the table. We could sit back and simply throw rocks at the administration, but we are finding ways to work with them to head off these actions and keep them from impacting your livelihood. To be clear, we are on the front line and working all these issues.

To keep NCBA headed in the right direction, we need you to engage. Plan now on coming to the 2021 Cattle Industry Annual Convention and NCBA Trade Show in Nashville, Tenn., in August to engage in the association’s decisionmaking process. You have a voice, and convention is the place to express that voice. We know the financial woes many of you are dealing with; that is why the convention prices are not going up while we still deliver the great experience you have come to expect from us. Engage.

Participate. Together, we can overcome our problems.

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NATIONAL CATTLEMEN

A Deep Dive into Trade The start of the Biden administration has been nothing less than a whirlwind. We have seen a plethora of announcements regarding proposed policy changes and initiatives that affect the agriculture industry, including cattle producers across the United States. Many of the announcements have been centered around the administration’s climate goals. As part of that broader plan, U.S. Trade Representative Katherine Tai announced that climate policy will be a focus of U.S. trade policy.

NCBA is actively engaged in conversations with the Biden administration—including Ambassador Tai and her team— to share the positive story of the U.S. cattle industry and the role producers play in sustainability. Science-based climate policy, including our sustainable production practices, will be essential in achieving the administration’s climate goals and improving global production standards.

While climate may be a recent focus in trade policy, NCBA has not shifted from its fundamental support for science-based, market-based, and rules-based trade standards that have greatly benefited U.S. cattle producers over the past decade. Trade agreements have been instrumental in removing tariff and non-tariff trade barriers— resulting in record-setting export sales for U.S. beef.

As we continue to work with the administration, it is vitally important that we, as an industry, are united when we discuss the importance of trade. As cattle producers, your story is by far our best advocacy tool. At NCBA, our team is committed to preparing you with the facts and being transparent on how we are fighting for you. Here is a brief update on some of the developing issues in trade policy.

Why Trade?

U.S. cattle producers raise a high-quality product that is in strong demand for a growing global consumer base.

Trade allows us to maximize value-added profitability for each part of the animal. While some have the idea that we should shut down exports and imports with the goal of making U.S. cattle producers more profitable, the market simply does not work that way. Exports add roughly $325- $350-per- head. We export parts of the carcass that American consumers find less desirable, such as short plate, tongues and livers. In this case, trade not only increases producer profitability, it also helps reduce food waste and keeps us from discarding parts of the carcass into landfills. The leading markets for U.S. beef exports are Japan, South Korea, Mexico, Hong Kong/China, Canada and Taiwan.

On the contrary, it is necessary for the U.S. to import lean beef trimmings to meet consumer demand. Imported lean beef trimmings are combined with our fat cattle trimmings to make ground beef. Only 11 percent of beef consumed in the U.S. comes from a foreign source, and 72 percent of beef imports are lean beef trimmings. Additionally, foreign-born cattle make up 2 percent of the U.S. cattle herd and are only sourced from Canada and Mexico.

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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Animal Health International www.animalhealthinternational.com traceability requirements—goals that many believed were impossible to reach. Fortunately, our negotiators were successful in addressing each of those issues, and Phase One of the U.S.-China Agreement finally opened China’s doors to U.S. beef.

China represents one-fifth of the global population with a growing middle-class that is greater than the entire U.S. population. Because of the great terms secured in Phase One, U.S. cattle producers are well-positioned to capitalize on growing demand for U.S. beef in the next few years.

COVID-19 unfortunately delayed our growth in China by several months, but the U.S. finished the year strong with cumulative sales exceeding $300 million. In the first quarter of 2021, U.S. beef sales reached $234 million—a 1,500 percent increase over 2020.

Another factor to pay attention to is the impact of African Swine Fever (ASF) in China. China is the largest pork producer in the world, and ASF killed a significant portion of China’s hog population. The lack of domestically produced protein catapulted China to become the world’s largest importer of pork and beef. There is no cure for ASF, and even though China has taken steps to protect segments of its swine herd, it will likely be dependent on protein imports for several years.

Japan The Japan-U.S. Trade Agreement helped level the playing field for U.S. beef exports by lowering Japan’s tariff on U.S. beef to an equal rate as our major competitors like Australia and Canada. Unfortunately, due to robust Japanese consumer demand, we inadvertently tripped a volume-based safeguard that temporarily increased tariffs on U.S. beef. This is a situation that Japanese consumers and U.S. cattle producers hope to avoid in the future, and we are hopeful that consultations to address the safeguard will resolve successfully and soon. NCBA will continue to support efforts to negotiate a higher threshold that more accurately represents Japanese consumer demand for U.S. beef.

Beware of the Europeans Unlike the United States and most of the world, the European Union (EU) unfortunately does not support science-based trade and is actively pursuing new trade barriers to restrict imports. In addition to the hormone ban, the EU is also pursuing greater restrictions on important animal health technologies and interventions. NCBA is continuing to work with U.S. Trade Representation and USDA to hold the EU accountable as they attempt to export their non-science-based ideals to the developing world where these technologies are needed most.

Future Agreements Reauthorization of Trade Promotion Authority (TPA) Under TPA, Congress grants the executive branch authority to negotiate trade agreements on behalf of the U.S. government (a Constitutional power of Congress).

While the executive branch negotiates the terms of the trade agreement with trade partners, Congress sets the goals of the trade agreement and has a tremendous amount of oversight during the entire process. Once negotiations conclude, the executive branch sends the agreement to Congress where it is reviewed through a formal process that concludes with a simple up or down vote in both chambers, without amendment. This is the process that was used to ratify agreements such as the Korea-U.S. Free Trade Agreement and the U.S.Mexico-Canada Agreement. Without TPA, it will be extremely difficult to negotiate future trade agreements because each part of the agreement would fall victim to Congressional gridlock. NCBA policy supports TPA, and it is one of the priorities we will continue to pursue throughout this year.

Countries to Watch China The U.S.-China Agreement garnered a lot of attention related to tariffs and purchase agreements, but the true victory for U.S. cattle producers was the removal of significant non-tariff trade barriers. China banned U.S. beef from 2004-2017 due to BSE (Mad Cow Disease). Restoring U.S. beef access was the top agenda item for President Trump at his Mar-a-Lago Summit with President Xi in 2017 and that set the stage for the restoration of limited access in June 2017, but the non-tariff barriers made it extremely difficult for most U.S. cattle to be eligible for China.

As U.S.-China trade negotiations continued, NCBA pressed for full access to China including the removal of China’s hormone ban, restrictions on beta agonists and

During the Trump administration, the United States initiated trade talks with Kenya and the United Kingdom with the hope of establishing bilateral trade agreements with both countries. Kenya is one of the strongest markets in Africa and is viewed as a leader among African nations – a natural ally of the U.S. As a result of the United Kingdom recently dissociating from the EU, there is another opportunity to market our high-quality beef. There is also speculation that the U.S. may join the Comprehensive and Progressive Trans-Pacific Partnership, but before we can secure trade agreements with any of these markets, we need Congress to reauthorize Trade Promotion Authority (TPA), a policy that will expire in June.

Improving the World Through Science-Based Trade The bottom line is that, if we truly want to feed a growing global population with safe, nutritious food, we must embrace technology in food production. For many years, the U.S. cattle sector has been unfairly restricted by non-tariff trade barriers in other countries. Non-science based standards like BSE restrictions and hormone bans were arbitrary, protectionist measures designed to portray U.S. cattle and beef as dirty and unsafe. Countries, specifically the EU, attacked our production practices, questioned the health of our cattle, and undermined consumer confidence with baseless attacks on nutrition and food safety. They let rhetoric drive policy, instead of basing policy on science—resulting in politicallymotivated, protectionist rhetoric.

While trade continues to be a complicated topic, we will be straight forward in our approach to science-based facts and sound trade policies that ultimately increase producer profitability. As we continue to work with the Biden administration, NCBA will keep you updated on actions taken and progress made in trade policy, as well as our efforts to increase your access to markets around the world!

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NATIONAL CATTLEMEN 5

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30x30 Puts a New Name to Work Producers Have Done for Decades

Continued from Front Page

or heard any indication from the administration that they are seeking to reduce the amount of beef Americans produce and consume. In fact, the administration has made a point of saying they have no plans to take actions to reduce consumption now or in the future,” she said.

The administration’s USDA Secretary Tom Vilsack has pushed back publicly against concerns that 30x30 will make aggressive use of eminent domain, saying that this plan is not a federal land grab.

The Economics of Environmentalism In southeastern New York, Ric Coombe and his family are hopeful about the possibilities of 30x30, but they – like all cattle producers – are also keenly aware of the bottom line.

“A lot of these costs for conservation improvements are front-end loaded,” he explained. “They do pay back over time, but usually over a much longer timeline than most family-owned farms can get financed. It’s hard to put in a big water system and it’s hard to invest in an awful lot of fencing, but what these changes do for the environment and the health of the land is much more valuable than people outside the industry give credit for.”

The conservation programs of the Watershed Council have worked for Coombe and many farmers like him because they provide the financial backing to match the know-how of producers on the ground. He hopes federal 30x30 efforts will take a similar approach.

“It was amazing the amount of acceptance that we had. The organization was farmer-led, New York City-funded, but the funding was contingent on the farmers going out and doing what they said they were going to do,” said Coombe. “I think at the end of the day, that was really the driver.”

In addition to championing the importance of public-private partnerships, Coombe said his family spends a lot of time thinking about the tax implications of everything they do to improve

environmental impact.

A top concern among producers about 30x30 has been how the Biden administration plans to pay for their ambitious climate and infrastructure agenda. Tax code provisions like steppedup basis, which is vital to cattle producers’ ability to pass on their family-owned operations to the next generation, may be in the crosshairs as the administration looks to raise revenue.

Fundamentally, the administration has to be very careful about taking resources away from the people that feed the nation, added Coombe.

“NCBA views sustainability as a threepart issue,” Glover said. “Environmentally, cattle producers provide a myriad of benefits, from carbon sequestration to invasive species management. These efforts create a more sustainable future for our industry, and we are innovating to reduce our environmental impact

work of caring for the land and caring for their animals.”

Coombe added that, as an ESAP winner, one of his priorities has been to help the public understand that cattle producers want to make sound environmental decisions, but they also have to run a profitable business.

We want to be a part of the solution, and With more than 40 we can do that through the work that percent of farmland expected to transition in the next two NCBA does on our behalf. It’s better to decades, NCBA is pushing shape the solution than fundamentally leaders in Congress to prioritize policies that support oppose it forever and be shut out. We land transfers to the next generation of farmers and need to engage. ranchers.

– Ric Coombe In addition to long-term financial viability, Coombe’s view of the future focuses on the fifth generation of his family and how they will add their every day. Socially, cattle producers chapter to the story of the farm. “It’s very form the backbone of rural communities important that we try to pass on the most across all 50 states. They are pillars, important thing first, which is the passion both from a social and fiscal standpoint. for the industry,” he said. “If we don’t Last and certainly not least, we have to have the passion, all the estate planning consider economic sustainability. Cattle and all the other things we need to do are producers have to be able to make a not nearly as impactful.” living, and efforts in the arena of climate or sustainability cannot undermine At the Table, Not on the Menu the business conditions that allow our Conservation and climate agendas producers to keep doing their important like 30x30 are not going away. The Biden

administration and Members of Congress have made it clear that climate policy will be a cornerstone issue over the next four years, and their prioritization is mirrored by a growing interest among consumers in how their food is produced.

NCBA firmly believes that if you’re not at the table, you’re on the menu – and we will continue working hard to make sure that the voices of cattle and beef producers are loudly reflected in discussions in D.C. NCBA is also working to formalize this focus on sustainability through our grassroots policy process and has formed a new Sustainability Goals Task Force chaired by NCBA Past President Marty Smith.

We also know, however, that all our work in Washington falls flat without the firsthand stories and experiences of producers like Ric Coombe.

“We have to tell our story. If we’re not willing to tell our story – direct to our consumers and direct to the public – we’re going to lose, because people are so disconnected today from where their food comes from,” Coombe said.

“We want to be a part of the solution, and we can do that through the work that NCBA does on our behalf. It’s better to shape the solution than fundamentally oppose it forever and be shut out. We need to engage.”

6

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NCBA Region I Report

By Tim Schwab, NCBA Policy Division Region I Vice President Region I includes 17 states with boarders of Michigan, Indiana, Kentucky, West Virginia and Virginia and then Northeast. There are 8 states that are affiliates of NCBA (Indiana, Kentucky, Michigan, New York, Ohio, Pennsylvania, Virginia and West Virginia). Region I consists of approximately 2,100 NCBA members representing cow-calf operators, stockers and farmer feeders.

Indiana Having just completed FY 20202021, the Indiana Beef Cattle Association (IBCA) has emerged from the year of COVID-19 in a strong financial position.

Thanks to the receipt of a forgiven PPP loan and the successful completion of a delayed Hoosier Beef Congress in February, the year was completed with a positive revenue position on March 31.

As in years past, the IBCA will fund industry improvement through the Hoosier Beef Congress. Each year the stalling auction prior to the event raises money that is used for scholarships, leadership development and advancing the industry through education and programs.

The IBCA has joined the other state commodity organizations in lobbying state legislators this session on increasing the funding for the state meat inspection program. Indiana received 4 million dollars in CARES Act funding for local processors and the enhanced meat inspection budget will allow those facilities to increase availability of appointments for Hoosier producers.

IBCA continues to work with U.S. Fish and Wildlife Service on the issue of black vulture predation on cattle and calves in the southern part of the state. IBCA has asked U.S. Fish and Wildlife Service for a master permit to be issued to the Indiana State Department of Agriculture (ISDA).

Indiana beef producers could then ask ISDA for and receive a sub permit within 24 hours to eliminate their problems.

Indiana looks forward to hosting its first Stockmanship and Stewardship event at the Hendricks County Fairgrounds in Danville, Ind., Sept. 10-11.

Kentucky The Kentucky Cattlemen’s Association (KCA) held its 2021 Annual Convention in January as a virtual event. At the present time, KCA is busy planning for the Stockmanship and Stewardship program to be held Oct. 2223 in Bowling Green, Ky.

Michigan The Michigan Cattlemen’s Association (MCA) has had a busy spring as their state has slowly emerged from the pandemic. The association’s Annual Meeting was held virtually on Jan. 23, where Dave Girton was elected president.

The virtual format generated a slight increase in membership participation compared to their typical in-person conference. Remote options have been incorporated into all MCA board meetings in the last year and enabled greater participation from board members.

The MCA-MSU Bull Evaluation Program just completed a very successful year. The 112-day evaluation program began in October 2020 with 100 bulls nominated by 27 MCA members. 64 bulls were sold on March 20, 2021, for a historic high average sale price of $4,103. DV Auction was utilized to offer an online bidding option to buyers.

The Michigan Beef Expo was hosted

by Breedersworld.com and included a virtual trade show promoted through an email and social media campaigns.

The Expo sales included an all-breeds bull Sale, all-breeds female sale and a Simmental female sale. A total of 56 animals were marketed through this format.

The MCA Summer Round-Up and BBQ competition will be held June 17-19 at Hughston’s Cow Camp in McBain, Mich. The outdoor venue ensures they can gather safely and once again enjoy family-friendly comradery. Members are encouraged to form teams and enter the BBQ brisket or dessert competition that will contribute to a camp-wide pot-luck banquet. Details are available at www. micattlemen.org.

MCA is working with the other commodity groups in support of a bill introduced in the Michigan legislature that would amend the Open Meetings Act to give agricultural commodity groups the permanent flexibility to meet remotely.

Cattle producers in Michigan continue to suffer significant financial losses due to the transmission of bovine TB from wild deer to cattle. MCA is working closely with their in-state partners to improve the TB program and heighten biosecurity on farms in the affected area as they work to shift the program’s focus from disease surveillance to disease prevention. Better TB testing methods are desperately needed, as the current systems mandate the needless destruction of massive numbers of

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animals. USDA indemnity provides little more than salvage prices for these cattle, no matter their purchase value or intended purpose.

New York The New York Beef Producers Association (NYBPA) is having a much more eventful 2021 with a new executive board. The following officers were elected Ted Card, president; Skip Lear, vice president; Amanda Dackowsky, secretary; Kathi Wagner, treasurer; and Ashley Simmons, executive secretary.

Unfortunately, COVID-19 forced the organization to cancel all of its typical fundraising events and general membership activities with the exception of its 2020 Annual Meeting, which was held in person in January. NYBPA was recently able to hold two in-person events including a youth Spring Preview Show and educational contest events, and their annual Herd Builder Sale. They also conducted a very successful “Freezer Full of Beef” raffle.

With new staff and new leadership representing both the New York Beef Council and NYBPA, a leadership summit was hosted virtually in March as a team effort to encourage outreach and education of their consumers and members of their beef community.

NCBA assisted in hosting this event and it was excellent. They reviewed beef industry foundational information, organizational structure and the Long Range Plan, received a national and state beef economics snapshot presented by CattleFax and a consumer insights presentation, and reviewed policy priorities.

As New York state starts to open up, NYBPA plans to host an educational event for the youth and adult membership this fall.

Ohio The Ohio Cattlemen’s Association (OCA) was pleased to host the Ohio Beef Expo in March given the cancellation of last year’s event and the challenges that followed 2020. The producer-focused event provided important farm income and retail opportunities for the cattle families and trade show exhibitors. The Expo was successfully executed and very productive for OCA’s membership efforts.

Currently, OCA is engaged in securing agricultural funding in the state’s budget.

Items that OCA advocates for on behalf of cattlemen include the College of Food, Agricultural & Environmental Sciences (CFAES), Extension and Research budget lines and the College of Veterinary Medicine, the state’s only veterinary medical college, graduating more than 80 percent of Ohio’s veterinarians.

Funding for the adequate staffing in the Ohio Department of Agriculture’s meat inspection program and the Animal Disease Diagnostic Laboratory (ADDL) as well as the department’s water initiatives are also high priorities.

Funding is also needed for the Ohio Expo Center as it reopens for business and the Ohio State Fair following the pandemic.

The shortage of cattle harvesting facilities across the state is also being addressed through an OCA working group. Their focus is on expansion opportunities and funding resources, as well as workforce development efforts to fill the labor shortages. The lack of in-state harvest facilities, as well as a steady growing consumer desire to purchase locally, both existed long before the pandemic. The added pressure of the COVID-19 pandemic dramatically increased the need for

additional packing facilities in Ohio.

Ohio cattle farmers selling beef from the cattle raised on their farms through direct marketing channels are also being negatively impacted by the lack of harvest facilities. Packing plants that provide a harvest service help create jobs and additional income for a farm’s next generation looking to diversify and capitalize on current market conditions.

OCA successfully advocated for the addition of a $10 million fund for packing plant expansion in the state budget, it will provide a matching grant fund for fully licensed (retail/wholesale licensed) meat processors who are state licensed, or USDA licensed to expand or add efficiencies to their businesses.

Planning is also underway for OCA events that will take place later this year like the Cattlemen’s Gala Celebration and Fundraiser on Aug. 28 and new Cattlemen’s Academy educational programs that will start again in the late summer and fall.

Virginia In Virginia, the production of beef cattle is the Commonwealth’s second leading agricultural enterprise in terms of farm gate receipts and support of cattle is the state’s largest use of private land in agricultural production. In April, the Virginia Cattlemen’s Association (VCA) started monthly educational webinars (Productive & Profitable Series).

VCA developed a solar farm policy position that opposes any legislation that would allow state authority over localities in developing utility-scale solar projects. It also opposes government incentives for utility-scale solar energy and wind energy on prime agricultural land. The policy does support continued research on the impact utility-scale solar energy has on agriculture and stricter erosion and sediment and Department of Environmental Quality control of stormwater on solar projects. The association also encourages counties to adopt solar ordinances that protect prime agricultural land.

VCA also wrote a letter to Virginia senators requesting a swift conclusion to the Department of Justice (DOJ) investigation of potential anticompetitive activity in the beef industry. They released a statement in March 2021 in support of the Cattle Market Transparency Act that was introduced by Senator Deb Fisher (RNE) and Senator Ron Wyden (D-OR).

VCA is preparing for their Annual Meeting and Field Day which will be held July 9 at Augusta Expoland.

West Virginia In April, West Virginia Cattlemen's Association met virtually with the offices of Sen. Shelly Moore Capito and Sen. Joe Manchin to discuss the implications on the West Virginia beef business of current legislation. Shortly thereafter, Sen. Capito became a co-sponsor of the HAULS Act and they are optimistic about getting Sen. Manchin more involved in policy like the HAULS Act to utilize his influential position in the U.S. Senate.

WVCA started a project to launch a branded West Virginia beef brand that will be owned and managed by the WVCA. The group is partnering with WVU Ag Economist, state department of agriculture officials and, most importantly, a beef processor in West Virginia who is building a new harvest facility in Charleston, W.V. There is much more work to do and the project will not be a simple one, but all parties are very optimistic about the opportunity and plan to have product in the market in 8-10 months.

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Insect Control and Improving Cattle Health Julia Herman, DVM, MS Beef Cattle Specialist Veterinarian, NCBA, a contractor to the Beef Checkoff As spring planting winds down, cattle producers are moving on to other warm weather practices such as prepping cattle for summer pastures. A critical component to optimizing cattle productivity in the summer is parasite control, specifically ectoparasites or parasites that live on the outside of the host animal.

Common ectoparasites include horn flies, face flies, ticks and lice. All of these are challenging to control and can be detrimental to animal comfort and productivity.

While controlling 100 percent or eliminating parasites is not a realistic strategy, preparing a year-long plan to control parasites’ negative effects on your cattle will prevent stress, improve performance and reduce the risk of disease transmission.

Ectoparasite management varies by region with differences in climate, environmental conditions, host susceptibility and farm/ranch management practices. To effectively treat or control parasites in the herd, it is important to know exactly which ones are a problem. This can be challenging at times, so it is important to have a resource team ready to assist. Working with your local veterinarian, Extension agent, industry representatives or local entomologists will help tailor a strategy to the specific operation. Your resource team can help in understanding the specific insects in your region, their effects on animal health, and utilizing multiple modalities of prevention and treatment is important to protecting your herd and minimizing negative consequences.

Types of Insects Flies and ticks are the most visible pest insect during the spring and summer months. There are a few general classes that are important to cattle health though this list is not all-inclusive.

• Horn flies are closely associated with cattle grazing in open pastures and rangeland. Adults tend to congregate on the back and shoulders of cattle or move to their underbelly during the heat of the day. Paul Kropp, national account manager for Central Life Sciences, explained, “Profit losses from a horn fly infestation begin when the population exceeds the economic threshold, which is just 200 flies per animal.” Horn fly attacks cause cattle to bunch which can lead to heat stress and decreased weight gain.

• Face flies are another common summer pest. They feed on the secretions from the eyes and nose of cattle. Due to proximity to the eyes, face flies also can feed on those tissues and cause irritation and damage to the eye itself.

• Stable flies are an important pest in cattle on pasture due to nesting and egglaying in areas where hay and manure are mixed, such as old winter-feeding sites. They are also common in backgrounding or feedyard operations. Cattle will show stomping, tail switching and bunching behavior to escape these flies.

• Ticks are blood-feeding arthropods than can infest multiple species including livestock, wildlife and humans. Each species of tick has specific geographic regions where they are found and each has a unique life cycle that needs to be managed around. Hide damage can be caused by large numbers of ticks in addition to blood loss and reduced weight gain.

Animal Health Effects Pest insects contribute to many direct and indirect losses for cattle herds.

From blood loss to modifying behavior due to annoyance and attempted avoidance, cattle have added stress when dealing with these pests which can lead to reduction in feeding times and productivity. Kropp added, “Fly infestations cause cattle to burn excess energy to combat the flies, interrupt grazing patterns and cause cattle grouping. These can result in reduced weight gains, decreased milk production and reduced calf weaning weights.” Anemia due to blood loss from severe infestations is especially harmful to calves and smaller animals.

In addition to being physical irritants to livestock, these insects can be vectors of infectious disease. For instance, face flies are the major vector of Moraxella bovis which is one cause of infectious bovine keratoconjunctivitis (commonly

known as pinkeye). Ticks serve as vectors for anaplasmosis and bovine leukemia virus, both of which can have chronic health and welfare implications to individual animals and entire herds.

Prevention and Treatment Considerations Preventive practices are paramount for the management of ectoparasites in conventional and organic operations. As discussed in the Checkoff-funded Beef Quality Assurance program, animal husbandry and hygiene practices are an important step in raising healthy animals. Providing adequate nutrition to develop a strong immune system, managing pastures and working areas properly, optimizing sanitation practices to minimize predisposing conditions for parasite breeding grounds and reducing stress all contribute to a successful response to integrated insect management.

To complement husbandry and environmental control measures for ectoparasites, there are many technologies on the market to assist with insect control. Choosing the correct product ingredient and method of administration for the intended parasite is critically important to the success of the control program.

• Insecticide ear tags (fly tags) are a useful tool in fly and tick control and easy to use. Timing of applying the tags is crucial as tags placed too early will lose effectiveness and need to be replaced by mid-summer. There are resistance issues developing in the horn fly population, so it is also important to work with your veterinarian to ensure you are alternating the active ingredient in the fly tag every year to not promote resistance.

• Liquid pour-ons can be used effectively as long as the correct dose is applied for the weight of the animal. Work with your veterinarian to know what product is most effective for your operation.

• Feed-through fly control is a feed supplement that has either an insect growth regulator compound or larvicide that is passed undigested by the animal and deposited in the manure. Both products interfere in the life cycle and control fly populations. To increase efficacy, feeding these products about 30 days before flies emerge is recommended.

• Back rubbers, oilers and dust bags could also be used depending on the facility setup. Setting these up next to the water trough or mineral tub increases the chance the cattle will use it.

• Fly predators use biological control instead of insecticides. These beneficial insects prey on pest insect larvae, laying eggs inside the host, eventually killing the pest insect. There are many commercially available fly predators.

• Fly traps are most useful in places in low-airflow areas such as barns or in areas of high organic matter buildup such as near working facilities.

Preventing resistance in the animal health realm applies to both antimicrobial and antiparasitic products. Anthelmintic (or dewormer) and insecticide resistance have become a real threat to prevention and control of parasites in livestock as decades of overuse have decreased the utility of certain classes of anthelmintics.

It is important to have an insect control plan that utilizes management of the environment to prevent insect reproduction in addition to appropriate product use, if needed. As BQA emphasizes, proper dosing to bodyweight of the animal plays a role in effectiveness of the medication. While much focus is placed on withdrawal times for antibiotics, do not forget that many topical and injectable parasite treatments have withdrawal periods to adhere to. Another tip is to remove fly tags at the end of the season to help prevent resistance.

Integrated pest management allows cattle producers to evaluate multiple aspects of the operation minimize insect pests’ effects on their herd. Adapting a control program to the region and to specific pests will provide benefits to animal welfare and productivity. For further guidelines on herd health and animal product management, check out the BQA Field Guide at bqa.org.

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Summer Weather Outlook

By Matt Makens, Atmospheric Scientist As we prepare for summer, we remain watchful of the popular topics we had on our plate from spring: long-term drought and this year’s corn.

To summarize the outlook for both, the weather this summer will likely produce unusually hot temperatures across the Western U.S. throughout the deepest drought regions; meanwhile, there is potential drought growth into parts of the Corn Belt.

Before I lay too much out there in terms of a summer preview, I need to introduce myself. As you may have seen on a recent airing of Cattlemen to Cattlemen, I am Meteorologist Matt Makens here to support NCBA’s mission to provide members with the greatest incentives – in my case, to provide weather and climate guidance.

I am here to support your success by alerting you to shortrange weather impacts and long-range weather and climate outlooks, to help you prepare for the seasons ahead. Look for my updates across the NCBA media platforms to increase your weather savvy and protect your bottom line.

With that said, let us get back to why we are here, the weather.

Many headlines caught my attention in the latter half of spring, the biggest of these related to the drought’s impact on producers.

By mid-May, Drought.gov reported that nearly 90 million acres of crops were experiencing drought conditions. Parts of the Western U.S. had slow pasture growth and delayed release of herds – instead, supplemental feed was needed until pasture health improved. In the Dakotas, impacts varied from wildfires to limited water supplies and poor water quality. We are likely to read similarly themed headlines this summer.

The weather pattern that led to those headlines was in part a strong La Niña from fall to winter, but with spring came a weaker La Niña influence across the country. We will revisit La Niña and El Niño when we take a close look at the autumn weather outlook in the next couple of months and in Directions magazine this fall.

A bit more to the story beyond La Niña, weather patterns since February were greatly influenced by ocean temperatures across the Northern and Central Pacific Ocean from near Alaska to west and southwest of the California coast. Plus, we were affected by the Atlantic Ocean, too. The impacts of the sea surface temperatures, and their connection to the weather across the country, will be the driving force for our summer.

I do not want to get too deep into the weeds with you in a technical discussion here in the newspaper; we can do that one-on-one or by interacting on NCBA’s social media channels where you can find greater visualization of these factors.

Now, I do want to give you a general sense of where we head this summer and some of the impacts you need to keep in mind as we transition from spring. Top of mind, as mentioned, is the drought and corn production.

We will see the greatest temperature influence over the Southwestern U.S., where conditions are most likely to be much warmer than average for the Four Corners

region. While that will be the hottest region, warmer than average conditions are probable across the entire country.

With the heat comes the need for moisture, and that outlook for the Lower 48 will show the driest areas in the west and wettest areas to the east.

The Eastern Seaboard is the most likely area for wetter than average conditions, roughly from the Appalachians to the ocean. However, drier than average conditions (for some, much drier than average) will be across the Northwestern U.S., creeping from the Northern High Plains into Nebraska and spilling into the Central Plains. The highest chances of near-normal summer precipitation are expected across parts of the Upper Midwest, Great Lakes, Ohio and Mississippi Valleys and for areas of Texas.

Considering the temperature outlook, likely quite a bit warmer than average for most everyone, it will take more than an average amount of precipitation to sustain the season. Wind and heat events for the Northern High Plains and Central Plains will lead to periods of rapid evaporative losses. We will likely see sustained drought and drought growth in these areas as a result – namely Montana, the Dakotas, West and Central Texas, in addition to the entire Northern Rockies region. All is not bad news; there are areas near the Great Lakes and Eastern Texas that may see drought reduced and removed.

The conditions I just summarized for the summer will evolve throughout the season. We are likely to see the early summer heat building first over the Southwestern U.S. before spreading across the country. Precipitation will be driest for the Northwestern U.S. over the Central and Northern Rockies for early to mid-summer. For the middle to late summer, dryness will spread to the Northern High Plains and parts of the Corn Belt. Potentially, a critical drop in precipitation for farmers and producers from Montana and the Dakotas south into Nebraska and Kansas as we go through the latter half of summer and fall.

Drought conditions will remain a serious threat to much of the country this summer. Corn production is the other factor we will be focused on, especially as we see the potential for drier-than-average conditions to spread across the plains.

Timing of moisture will be critically important to offset higher than average evaporation rates and overall dryness. Significant events that include, but are not limited to, hail or extreme wind events (like last year’s Derecho throughout Iowa) are always on the table, but just the long-range outlook includes some concern about the drought’s impact on corn-producing areas.

Further, hotter than average conditions may impact this year’s corn production.

There is, obviously, more that bears watching. There are things to track throughout the summer that I will update you on in future articles, and that varies from severe weather outbreaks to the monsoon that may develop for the Southwestern U.S. – hopeful moisture for that drought region.

This article gives you a general idea of where we potentially head this summer. In-depth details are invaluable to your operation, which is why I am here with the NCBA to support you, so reach out with your specific concerns, and I will offer some guidance: makensweather@gmail.com. Or join us at NCBA.org for additional resources, too.

NATIONAL CATTLEMEN 11

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Registration Now Open Registration is now open for five events on the Stockmanship & Stewardship Regional Tour, with the first stop in Elko, Nev. in July. Events will also be held in Colorado, Indiana, Oregon and Kentucky.

Stockmanship & Stewardship is a unique two-day educational experience for cattle producers featuring low-stress cattle handling demonstrations, Beef Quality Assurance (BQA) educational sessions and facility design sessions. The program is sponsored by the National Cattlemen’s Beef Association (NCBA), Merck Animal Health, and the Beef Checkoff-funded National Beef Quality Assurance program.

“These events allow producers to network with one another and learn from industry experts about real world solutions to everyday problems they encounter on their operations,” said Josh White, executive director of producer education and sustainability at NCBA. “Beyond animal handling, each of these events incorporates valuable information about animal health, environmental stewardship, and much more.”

The 2021 tour locations and dates are: • • • • •

Elko, Nev., July 16-17 Durango, Colo., Aug. 27-28 Danville, Ind., Sept. 10-11 Ontario, Ore., Oct. 8-9 Bowling Green, Ky., Oct. 22-23 By attending a Stockmanship & Stewardship event, producers may become BQA certified, network with fellow cattlemen and women, participate in hands-on demonstrations led by stockmanship experts including Curt Pate, Dr. Ron Gill and Dr. Dean Fish, and learn cutting-edge operation techniques.

“Merck Animal Health is honored to be the premier sponsor of this initiative for a third year, which very much complements our efforts to promote proper animal handling, animal welfare and beef quality assurance,” according to Kevin Mobley, executive director U.S. Cattle Sales and Marketing for Merck Animal Health.

“Working with the NCBA and state cattle associations is another way that Merck Animal Health works for our beef producing customers, and we couldn’t be more excited to return in person to these important events.”

For details about upcoming Stockmanship & Stewardship events and registration information, visit www.StockmanshipAndStewardship.org.

- TOUR DATES JULY 17-18 ELKO, NV

SEPTEMBER 10-11 DANVILLE, IN

AUGUST 27-28 DURANGO, CO

OCTOBER 8-9 ONTARIO, OR OCTOBER 22-23 BOWLING GREEN, KY

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STOCKMANSHIPANDSTEWARDSHIP.ORG

12

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Consumer Price Index – Is Inflation Something to Worry About?

By Katelyn McCullock, Director, Livestock Marketing Information Center

dramatic price jumps such as energy, which has surged 25 percent. In a related category, transportation costs The U.S. Department of Labor have risen 15 percent. Housing was the Statistics releases the Consumer Price next highest price index increase rising Index on a monthly basis. It tracks 3 percent year-over-year. The apparel, several categories for consumer goods, recreation and education categories and is one reference point the U.S. has rose 2 percent. Medical care rose only for inflation. In agriculture, many of us 1 percent. Food and beverages in total have noticed prices increasing. Some increased 2 percent. The meat index of those price responses have been component increased the most of any in response to demand and supply of the food components, up 4 percent from last year. Poultry and dairy both influences, while behind the scenes increased about 1 percent. larger macro-economic shifts are a This was the first time, since 2007, factor as well.

Core Inflation, which is noted by all The April 2021 Consumer Price Index items less food and energy, increased calculated that across a broad basket of 3 percent year-over-year. In recent goods (all items) price rose 4 percent decades, the Federal Reserve has from April 2020. Certain categories saw actively tried to manage inflation CPI – POULTRY to remain below 2 1982-1984 Base, Monthly Index percent. However, 255 a pivot in policy has occurred 250 since the higher inflation period.

245 The Federal Reserve now 240 aims that average 235 inflation remain at 2 percent.

230 What that means is that inflation 225 will be allowed to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec increase longer, Avg. 2015-19 2020 2021 potentially much Data Source: Bureau of Labor Statistics longer than in Livestock Marketing Information Center previous years as long as average inflation remains CPI – MEATS at 2 percent. The 1982-1984 Base, Monthly Index Federal Reserve 305 often uses interest rates to help 295 influence inflation: increasing interest 285 rates to curb 275 inflation and decreasing them 265 to spur economic growth.

255 The Federal Reserve has not 245 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec given a timeline Avg. 2015-19 2020 2021 for when it will raise interest rates, Data Source: Bureau of Labor Statistics and has insisted Livestock Marketing Information Center that inflation will 05/12/21

05/12/21

Wild Retail Price Inflation

By Lance Zimmerman, Manager, Research, Analysis and Data, CattleFax The USDA reported its April retail red meat and poultry prices midMay, and the numbers remain on an uptrend across all major protein categories. The higher prices are coming as Americans – armed with government stimulus – are visiting restaurants again and exhausting available supplies.

The USDA all-fresh beef retail price averaged $6.48/lb in April. That price was 4.1 percent larger than last year

and 1.5 percent higher than March. The composite retail pork index increased 11 percent compared to the prior year, while the composite retail broiler price declined 0.6 percent.

The stronger April retail beef prices met expectations based on higher trending boxed beef cutout values since the March 15 lows. The cutout has rallied nearly $90/cwt (40 percent) in 60 days, and retailers have likely found themselves losing money to keep meat cases stocked once again.

The spot market composite beef

not become a problem. That CONSUMER PRICE INDEX – ALL ITEMS 1982-1984 Base, Monthly assumes the Index Federal Reserve 270 has the tools to 265 bring inflation back in check.

260 However, fighting 255 inflation does not happen in 250 a vacuum and effects, can 245 impact economic 240 recovery. History provides some 235 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec lessons, although Avg. 2015-19 2020 2021 are not good for direct comparisons Data Source: Bureau of Labor Statistics as policies have Livestock Marketing Information Center changed, as has the U.S. economy. economy move rather slowly and take Inflation in the 1970s and 1980s quarters or years to change course. The reached double digits, a phenomenon increased money supply has been a that an entire generation has not yet contributing factor to inflation and one experienced. At that time, the federal of the key policy tools used to aid in the funds rate was raised quickly and went U.S. making its way out of recession. to over 10 percent. Similarly, in the Without this stimulus, there is fear 1980s the Federal Reserve aggressively that the recovery will stall. Costs are tried to combat inflation over 10 expected to increase as employers are percent by increasing interest rates. unable to find workers, and supply lines The federal funds rate went to over operate below capacity. Different from 20 percent, and inflation was over 10 other recessions, this current rebound percent for 21 months from 1979-1981, from recession is struggling with not and then again for six months at the enough goods for growing demand, end of 1982. In the 1970s and 1980s, the while other recessions have been driven U.S. experienced several recessions, by lack luster demand. This underlying brought about in part by the sharp problem is expected to influence the response to rising interest rates. High cost of items, leading to higher prices. inflation and recession (stagflation) These interacting variables are caused the U.S. and other federal banks complicated and are difficult to to re-think monetary policy and use predict. However, it is a matter of new metrics as benchmarks. when, not if, the Federal Reserve will Today, the federal funds rate is increase interest rates. Interest rates nearly zero. There is obviously a lot of are unlikely to reach the rampant levels room to the upside, but we are already of the 1980s unless inflation runs wild. in a recovery period from the 2020 How does a 1 to 5 percent increase in COVID-induced recession. The recovery interest rates effect your business? and inflationary pressure seen in 2021 In March, the Federal Reserve has is different than in the 1970s and 1980s. promised to hold interest rates at zero Back then, the tide turned rather slowly until 2023, but inflation in April has to move inflation lower. This particular already doubled the average target inflation event is being caused by both rate. Will that shift policies much increasing underlying costs as well sooner than originally thought? The as increased money supply from the Federal Reserve will need to balance federal government. These two factors many pieces of economic data, as will will continue to push inflation higher as policy makers in the coming months the economy recovers. Inflation will also and we may not be out of the woods follow, but may take a long time before it becomes problematic. Changes to the yet in terms of economic turmoil.

05/12/21

cutout value represented more than 43 percent of the all-fresh beef retail price in April. That is the highest ratio for any April on record. And based on a $304/ cwt month-to-date May cutout average, the ratio is likely to stay extreme throughout the spring – even as retail prices increase into early summer.

As cattle producers have dealt with production disruptions and frontend supply issues since the Holcomb, Kan., plant fire, end users have been on the receiving end of production shortfalls. Violent price increases and distribution challenges have been constant battles for retailers and food service operators eager to provide

consumers more beef.

The good news for the beef industry is they are not alone. The resurgence of the economy as COVID-19 restrictions ease has caught many industries by surprise. Energy costs increased the most in April – up 25.1 percent compared to last year.

Used car and truck values increased 21 percent.

Overall, food inflation is up 2.4 percent, while the headline Consumer Price Index is up 4.2 percent compared to last year.

Bottom Line: Beef is a destination protein, and the resurgence of foodservice is good for demand.

Sixty percent of beef sales by volume occurred at foodservice prior to COVID-19. The current surge in prices will eventually fade. However, a stronger economy will ultimately benefit cattle producers as processing issues subside.

NATIONAL CATTLEMEN 13

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Animal Activist Group Monitoring Animal activist groups remain a persistent and constant threat in 2021. In fact, these groups continue to exploit the pandemic to further their own agenda to end animal agriculture and promote plant-based diets. NCBA follows action group activity to gain insight on their tactics and claims about beef, and to provide support to members and affiliates.

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NCBA is an active member of Animal Agriculture Alliance, a nonprofit whose goal is to share information and resources among animal agriculture organizations.

Through this work, NCBA receives regular updates about planned animal activist group activity, which allows us to alert stakeholders who may be impacted, as well as proactively share the positive stories of the beef industry.

Additionally, the Digital Command Center is used to monitor print, online and social media for articles, trends, themes and hashtags about activist groups.

Farm Security As always, farm security is paramount.

It is not recommended to engage with animal activist groups in-person or online.

Doing so would likely only further spread the group’s message and bring greater attention to their platforms, elevating the issue to consumers who otherwise would not have seen it.

If someone tries to gain access to your operation, alert local law enforcement.

Additionally, the groups rely heavily on the use of Wi-Fi-dependent video and audio recorders to acquire footage of animal agriculture operations for their

UNITED WIRELESS ARENA | DODGE CITY, KS

NCBA proactively monitors activist group activity in a variety of ways:

Recent Tactics Activists have recently championed a “beans not beef” campaign, which began in November 2020. The campaign called for Americans to replace meat with plant-based proteins in their diet. On Earth Day, activists held a protest at the National Mall in Washington D.C., spelling the campaign name using beans on the ground. The activists encouraged the U.S. Department of Agriculture to recommend plant-based diets in the 2025-2030 Dietary Guidelines for Americans.

Coverage of the campaign was limited to Yahoo! Finance and the Associated Press.

Despite the campaign, several government officials, including Governor Pete Ricketts of Nebraska and Governor Kevin Stitt of Oklahoma, expressed their ongoing support for the beef industry.

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campaigns. If a new or unrecognized Wi-Fi network has become recently available, it may be a sign that a device has been installed. If you suspect a threat to your operation, reach out to NCBA for guidance; we are here to help navigate such issues.

NCBA will continue to monitor and alert those who may be impacted by protests or other activist tactics. And of course, we will continue to proactively share the great work of beef farmers and ranchers.

• BQA certification or renewal • Bull & Brews event social • Unlimited networking opportunities

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View the official speaker lineup at cattleu.net.

Cattle U and Trade Show is a two-day event full of educational opportunities for producers. Whether you are a cow-calf producer, a stocker or a feeder, there will be sessions and networking opportunities with vendors and industry leaders to provide you with practical and useful information.

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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.

Sustainability = Environment + Economy + Community Although many conversations about sustainability revolve around environmental stewardship, economic viability and social responsibility also play critical roles.

Balancing these three different but intersecting pillars is crucial to attaining true sustainability, and farmers and ranchers are dedicated to producing beef in a way that prioritizes all three.

Whether educating consumers about the positive environmental contributions cattle make, sharing producer stories through social media, developing new generations of producer leaders or informing nutrition professionals, states are showcasing sustainability efforts through unique programs and events.

Sustainability Webinar Series for Nutrition Professionals OHIO

COUNCIL

The Ohio Beef Council (OBC), and the Beef Checkoff, partnered with the American Dairy Association Mideast to bring education to nutrition professionals on animal agriculture’s environmental footprint through a two-part webinar series. The first webinar was hosted on May 3 and featured UC Davis Professor & Air Quality Extension Specialist Dr. Frank M. Mitloehner in ‘Rethinking Methane: Animal Ag’s Path to Climate Neutrality’. Mitloehner invited the 35 live participants to rethink what they thought they knew about methane emissions and discover

how animal agriculture is on the path to climate neutrality with scalable solutions and tools to fight global climate change.

The second webinar featured panelists including Ohio State University Extension program assistant, ag & natural resources, Stan Smith; owner and operator of Turner Shorthorns, Dr. Tom Tuner; owner and operator of Bridgewater Dairy, Chris Weaver; and executive director of the American Association of Bovine Practitioners, Dr. Fred Gingrich, DVM. Participants engaged with the expert panel about agriculture in Ohio, with an emphasis on environmental stewardship, animal care, technology and research.

For more information, visit www.ohiobeef.org.

New Sustainable Beef Videos The Beef Checkoff continues to educate consumers about the benefits of beef, and whether it is using the Beef.

It’s What’s For Dinner. brand or developing campaigns such as “Rethink the Ranch”, promotional efforts introduce consumers to beef farming and ranching families around the country that sustainably raise beef. To coincide with national efforts, the Oklahoma Beef Council (OBC) and Washington State Beef Commission (WSBC) created a series of new sustainability videos for use in social media and digital marketing. Building upon an earlier video produced by the OBC, which worked to bust myths associated with the sustainability of U.S. beef production, the new videos focus on the positive role beef plays in the environment and in our daily lives.

The format for the videos is whiteboard animation, which is designed to engage the audience’s attention while easily explaining science-based topics.

The videos feature the following themes: • Regenerative Agriculture Highlights how cattle graze on land that is not suitable for crop production.

• Cows’ Superpower of Upcycling - Explains how cows upcycle plant-based food production

leftovers into high-quality protein.

• Cow’s Difference in Your Daily Life - Demonstrates how byproducts from cattle are used in daily lives from tires and ink to medications and shampoos.

• Cows and Climate - Reveals how the biogenic cycle works with beef production.

To take the subject of beef sustainability head on, the OBC also developed a new Web page focused on answering consumer questions at www.oklabeef.org/ sustainablebeef. The goal of these efforts is to continue Beef Checkoff work to help consumers understand the actual impact of U.S. cattle and beef production versus the perceived impact.

Further, the intent is to show the positive ways cattle act as upcyclers in producing a highquality protein, beef. To watch and share the videos, visit www. youtube.com/oklahomabeef and select the sustainability playlist.

Developing the Next Generation of Leaders Transferring ranch ownership from one generation to the next is part of social sustainability and developing future leaders in the industry is an important component of that transition. The Alabama Cattlemen’s Association (ACA) offers programs to develop young leaders.

Young Cattlemen’s Leadership Program ACA recognizes the need to cultivate future leaders of the association and industry.

The Young Cattlemen’s Leadership Program (YCLP) aims to identify the state’s top young cattlemen and develop them into future leaders. Each year a class of 25 cattlemen ages 21-40 tour the state while gaining industry knowledge and leadership skills.

The program focuses on participants gaining “pasture to plate” experience, leadership, and networking. Funded by the state Beef Checkoff, 2021 brings the eighth class of young producers.

2021 Junior Cattlemen Spring Field Day The Alabama Junior Cattlemen’s Association (AJCA) hosted a Spring Production Field Day in Blount County, Ala., at Quail Valley Farms. More than 30 youth enjoyed a day full of hands-on-education

brought to them by the Alabama Beef Checkoff Program. Associate Extension Professor Jason P’Pool provided youth with a beef cattle judging clinic where they learned how to evaluate a beef animal that is intended for production.

Participants then broke out into two groups to learn about social media and photography as well as forages. ACA’s Director of Communications Kayla Greer talked with the participants on the “do’s and don’ts” of agriculture and social media as well as gave a few tips and tricks about on-farm photography. Regional Extension Agent Gerry Thompson educated attendees on how to hay and soil sample, complete with handson exercises. The day was wrapped up with a farm tour from Quail Valley Farms Manager Chris Heptinstall and owner Ricky Cleveland.

The Spring Production Field Day provided youth with a day full of education and fun with more to come at the fall educational event planned for September.

For more information, visit www.bamabeef.org.

Sustainability is the “Wisconsin Way” The Wisconsin Beef Council (WBC) is sharing assets from the national sustainability campaign and conducting a sustainability push on social media.

Wisconsin producers are taking over social media on #TakeoverTuesdays where they share their farm or ranch story and post about their sustainability efforts. Initial results from social efforts are positive, with WBC Facebook post reach up 77 percent, engagement up 248 percent and 70 new Facebook page likes in the first couple days.

Additionally, Thursday of each week features a sustainability message using resources and graphics from NCBA. Sustainability is also a theme in the "Wisconsin Way" video, which showcases the diversity of beef production in the state.

For more information, visit www.beeftips.com.

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NATIONAL CATTLEMEN

NEWS Health Professional Outreach Promotes Beef as an Early Food for Infants and Toddlers Feeding nutrient-rich foods, like beef, as a complementary food to infants and toddlers may be a new concept for some, with the 20202025 Dietary Guidelines for Americans (DGA) making recommendations for the first time to include these foods, starting around six months of age.1 This is new information not only for parents, but for health professionals as well, including pediatricians, dietitians, and other pediatric feeding experts. NCBA, a contractor to the Beef Checkoff, is conducting extensive outreach to these professionals to educate them about the new recommendations and the nutritional benefits of beef in the early years.

On April 27, 2021, a “Growing Up Strong: Prioritizing Critical Nutrients from Birth to Adolescence” webinar was held to educate and inform health professionals about the new DGA recommendations for children between birth and 24 months of age, highlighting the critical nutrients beef offers to help close nutrient gaps and support healthy growth and development in the early and adolescent years.

Moderated by Dr. Keith Ayoob, a pediatric nutritionist and registered dietitian who works on obesity, heart health, and family dynamics, the webinar featured speakers Dr. Heather Leidy and Marina Chaparro. Leidy is a nutrition researcher who examines the effects of dietary protein quantity, quality, and timing of consumption on the metabolic, hormonal and neural signals that promote satiety, healthy eating behavior and

weight management across the lifespan, and was also a member of the 2020-2025 DGA Committee responsible for the new recommendations. Chaparro is a mom of two as well as a registered dietitian, specializing in pediatric nutrition and diabetes education.

Speakers discussed the evidence behind beef’s role in healthy dietary patterns to cultivate and optimize wellbeing from the early years to adolescence. They also addressed common misperceptions and inspired ways to build balanced, nutrient-dense meals children will enjoy – to make every bite count from the beginning and through teenage years.

The webinar was very successful with 3,463 registrants and 1,525 live attendees.

In addition, 2,768 new contacts were added to the nutrition listserv and will now receive the quarterly beef nutrition e-newsletter. According to feedback from the survey following the event, nearly 70 percent of individuals indicated they would make changes to their practice based on webinar key learnings and nearly 70 percent felt “very confident” recommending beef as a complementary early food for infants and toddlers, which was an 18.2 percent increase from prewebinar survey results.

“It is encouraging to see such a positive shift in opinion as a result of the information presented during the webinar,” said Executive Director of Nutrition Science, Health & Wellness at the National Cattlemen’s Beef Association, Shalene McNeill, PhD, RDN,

Popular Publication Helps Consumers Cook Beef Confident Cooking with Beef is a comprehensive guide to selecting, preparing and cooking beef. Created by beef professionals for beef enthusiasts, this resource gives consumers added confidence when working with beef and sharing beef content. Originally published in the 1990s, and updated over the years, the brochure was recently revised by NCBA, a contractor to the Beef Checkoff.

With tips and tricks, comprehensive cooking lessons and timing charts, the publication provides the tools necessary to ensure beef success every time. It even helps answer that age-old question: to marinate or rub (or neither)? The brochure also provides educational information about the value of beef’s nutrition and the industry’s positive impact on environmental stewardship, social responsibility and economic viability.

“Consumers often seek out both recipes and cooking information, and this publication provides them with all of the information and resources they need to feel comfortable preparing beef at home,” said Ashley Dentinger, manager of consumer programs and digital marketing for the Ohio Beef Council.

Although in today’s digital world many printed materials have been replaced by websites and social media platforms, state beef councils (SBCs) recognized there was still a need for a printed piece to help with grassroots efforts reaching out to consumers with beef education. More than 120,000 copies were printed at the request of SBCs to educate consumers on the benefits of beef. The printed publication serves as a companion to BeefItsWhatsForDinner.com, the ultimate online beef resource.

“We know events will pick back up this summer and we needed a takeaway item for consumer activities,” said Heather Buckmaster, executive director of the Oklahoma Beef Council. “Additionally, we have seen a need to provide a resource to producers who actively sell butcher beef, and our plan is to make it part of a toolkit of resources that we provide.”

The Nebraska Beef Council (NBC) plans to use the brochure at in-person consumer events as well and as an

educational handout CONFIDENT COOKING when A GUIDE FOR ALL THINGS BEEF conducting seminars with students and influencers.

NBC will also offer these brochures to local lockers and directsale beef suppliers who want to make sure their customers have access to accurate beef information.

“The brochure is our go-to resource because it’s a quick reference guide for everything beef,” said Adam Wegner, director of marketing for the Nebraska Beef Council. “It’s useful for all audiences and gives them a taste of the type of additional information they can find on the Beef. It’s What’s For Dinner. website.

While it is a resourceful guide in itself, it’s also a driver to the Beef Checkoff’s digital resources.”

The publication is made possible from funding through the Federation of State Beef Councils as well as individual SBCs and is one more example of the importance of the Beef Checkoff’s state and national partnership through the Federation of State Beef Councils at NCBA. “Confident Cooking with Beef is an important outcome of a strong state and national partnership,” said Don Waite, executive director of Federation State Services at NCBA. “SBCs are the boots on the ground, directly engaging with consumers and supply chain professionals.

They identified a vital need for a printed educational brochure for distribution at events, and then worked with the Federation staff at the national level to publish a resource that not only educates the consumer, but also drives them to BeefItsWhatsForDinner.com.”

WITH BEEF

Webinar Attendee Feedback Based on evidence-based information provided during this training I'm now comfortable educating families in regard to introduction of beef at an earlier age.

This webinar was very informative, and I thoroughly enjoyed the recipe demonstration at the end.

Good energy, comprehensive presentation, enjoyable.

“Events like this and Beef Checkoff efforts to educate health professionals are working to expand the positive message of beef as a nutrient-rich food for infants and toddlers.”

In addition to health professional outreach and education through webinars and e-newsletters, a new infographic brings to life the research supporting beef’s nutrient package of protein, iron, zinc, and choline for healthy, growing bodies and brains in a highly visual

manner. The “Make Every Bite Count with Beef” infographic is a great resource for nutrition influencers and healthcare professionals.

To learn more about recent efforts to promote beef through the Make Every Bite Count-Feeding Beef to Your Baby campaign, visit www. beefitswhatsfordinner.com.

Dietary Guidelines Advisory Committee.

2020. Scientific Report of the 2020 Dietary Guidelines Advisory Committee: Advisory Report to the Secretary of Agriculture and the Secretary of Health and Human Services. U.S. Department of Agriculture, Agricultural Research Service, Washington, DC. 1.

TRENDING IN FOOD & BEEF PLANT-BASED DIETS & ALTERNATIVES Plant-based diets remained popular in April, but mentions continued a sustained decrease, dropping 3% compared to March.1 Interest in cell-based meat and new technologies that could improve the product2 led to a 44% increase in tradititional media mentions in March.1

GOOD NEWS FOR BEEF A study in Ireland found 25% of meat alternatives had insufficient protein.3

SUSTAINABILITY Earth Day was mentioned 3.5 million times in April, which helped drive a 44% increase in beef sustainability mentions.1 Epicurious announced they would no longer publish recipes with beef.4 The announcment was covered in more than 1,300 media outlets.1

GOOD NEWS FOR BEEF Earth Day media efforts

by NCBA, a Beef Checkoff contractor, aggregated an audience of 150+ million.1

Nutrition & Health Outcomes Major outlets like Yahoo! News and U.S. News & World Report covered a study that linked processed meat to cardiovascular disease.1 Outlets like Yahoo! News perpetuated rhetoric about beef and red meat being carcinogenic.1 Negative mentions did, however, decrease 8%.1

GOOD NEWS FOR BEEF A Checkoff-funded study found that a Mediteranean diet including lean beef can lower heart disease risk.5

#050721-13 1. National Cattlemen’s Beef Association. (2021). Traditional and social media listening dashboards.

Retrieved from Meltwater: www.meltwater.com 2. Cumbers, J. (2021). Printable DNA “ink” just took a big step forward. Forbes.

3. Pope, C. (2021). Quarter of vegetarian meat substitutes contain insufficient protein – Safefood. The Irish Times.

4. Tamarkin, D & Hoffman, M. (2021). The planet on the plate: why Epicurious left beef behind. Epicurious.

5. Fleming, J.A.; Kris-Etherton, P.M.; Petersen, K.S.; & Baer, D.J. (2021). Effect of varying quantities of lean beef as part of a Mediterranean-style dietary pattern on lipids and lipoproteins: a randomized crossover controlled feeding trial. The American Journal of Clinical Nutrition. https://doi.org/10.1093/ajcn/nqaa375

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