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. OCT 2020 • Vol. 37, No. 1 • NCBA.org
Coronavirus Food Assistance Program 2 Cattle Assistance Q & As
NATIONAL CATTLEMEN’S BEEF ASSOCIATION 9110 E. NICHOLS AVENUE, SUITE 300 CENTENNIAL, CO 80112
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The U.S. Department of Agriculture (USDA) recently announced additional assistance will soon be made available to agricultural producers impacted by the COVID-19 pandemic through the Coronavirus Food Assistance Program 2, commonly referred to as CFAP 2. NCBA has compiled the following Q & A based on questions frequently asked by producers, USDA’s CFAP 2 cost-benefit analysis, and information available on
the farmers.gov/cfap website, including the livestock and FAQ pages.
Q: What animals are eligible for CFAP 2 cattle assistance payments?
Livestock Payments
A: All marketable animals are eligible for inclusion in inventory, including 2020 born calves and replacement stock intended for breeding, such as females that have not produced offspring and males who have not started breeding females.
Q: How will CFAP 2 cattle assistance payments be calculated? A: CFAP 2 cattle assistance payments are structured similarly to the CFAP 1, Part 2 inventory payments but at an increased rate of $55 per head. Payments can be calculated by multiplying the highest owned inventory of eligible livestock – on a date selected by the eligible producer from April 16, 2020, through August 31, 2020 – by the $55/head payment rate. Q: Should CFAP 1 payments be factored into CFAP 2’s payment calculation? A: No. USDA has determined that CFAP 1 and CFAP 2 are separate programs. CFAP 1 was designed to address disruptions that occurred by April 15, 2020, whereas CFAP 2 is intended to address disruptions from April 16, 2020, forward. As such, CFAP 1 payments have no bearing on how CFAP 2 payments will be calculated, and two separate payment limits will be in effect. Q: If a producer received a CFAP 1 inventory payment on an animal retained during the April 16 – August 31 window, can that animal be included as part of the CFAP 2 calculation? A: Yes.
Q: Are breeding stock eligible? A: No. Breeding stock such as cows and bulls are not eligible for CFAP 2. Cull cows are also not eligible. Q: Why aren’t breeding stock eligible for CFAP 2? A: The payments to livestock are focused on market inventory because there are limited funds available for CFAP 2, and the Commodity Credit Corporation (CCC) authority that fully funds the program is meant to assist with costs associated with market disruptions. Breeding stock are typically kept for many years, and therefore, their value is less likely to be impacted by temporary price impacts. Non-breeding animals are more likely to be sold, and therefore, more likely impacted by market value changes.
A: The cattle assistance calculation is simple: # of eligible head x $55 = CFAP 2 payment. This is another way of saying CFAP 2 maintained CFAP 1’s payment limits, meaning if a producer’s eligible inventory number results in a calculation that exceeds the established limits, their payment will be capped. Q: What are the payment limits for CFAP 2? A: The total CFAP 2 payment that a person or legal entity may receive, directly through their application or indirectly through attribution of entity payments, is $250,000. Again, this payment limitation is separate from the CFAP 1 payment limit. This limitation applies to the total amount of CFAP 2 payments made with respect to all eligible commodities. The total amount of CFAP 2 payments made to a legal entity – such as to a corporation, limited liability corporation, limited partnership, trust, or estate – is $250,000 except if: •
Q: The USDA website states CFAP 2 payments for livestock are equal to the highest inventory number, “Multiplied by the number of payment limitations for the producer, multiplied by the payment rate of $55 per head.” What does this mean?
MARKET SNAPSHOT WEEK ENDING 9/25/2020 (prices vs. year ago) $103.54
CHOICE BOXED BEEF $215.87
OMAHA CASH CORN $3.61
2%
1%
4%
SOUTH CENTRAL 500-600 LB. STEERS $149.68
LIVE FED STEERS
3% $145.46
$101.92
$218.75
$3.75
two different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $500,000.
Continued on Page 7
IN THIS ISSUE Leadership Comments
3
Federation News
6
Governance 8 Market Matters
10 & 11
Checkoff 16
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NATIONAL CATTLEMEN
NCBA Wins in Court By Marty Smith, NCBA President Typically, I use this column to highlight wins for our industry. Often, these successes are the result of our work in Washington D.C., either on Capitol Hill or through administrative agencies. But NCBA utilizes all three branches of government – legislative, executive, and judicial – to accomplish our policy priorities. Recently, the Department of Transportations’ Federal Motor Carrier Safety Administration extended its COVID-19 emergency declaration, exempting livestock haulers from Hours Of Service (HOS) regulations through the end of the year. After months of waiting for the federal government to issue eleventh hour 30-day exemptions, producers across the country can breathe easy until 2021. The future after December 31 is uncertain, but NCBA will keep fighting for HOS and Electronic Logging Device (ELD) reforms. The ELD delay is an excellent win for our industry, achieved through the executive branch. Often, when NCBA achieves regulatory reform through an administrative agency, it is met almost immediately with litigation from radical activist groups who hope to have new rules overturned. Court decisions not only determine the legality of a rule or regulation, but also impact everything
that an agency does in the future. It is important to remember the large role our judicial branch plays in the lives of cattle producers and NCBA’s role in protecting cattle producers through litigation. Last month, the U.S. District Court for the Western District of Virginia blocked an attempt by activists to halt implementation of President Trump’s revisions to the National Environmental Policy Act (NEPA). Defenders of Wildlife and a host of other environmental groups banded together to demand a nationwide preliminary injunction – a court order that would prevent implementation of the new rules. The NEPA revisions were finalized earlier this year and significantly reduce the regulatory burden for producers who utilize federal grazing permits or Farm Service Agency loans. NCBA joined this litigation to defend the Trump Administration’s work and contributed to the effort to oppose the nationwide preliminary injunction. Our effort yielded the judge’s denial of the activists’ request, and the new NEPA rule became effective law across the country on September 14. But one win in one case is small compared to the work NCBA does in federal courts across the country. While navigating the legal process can be more complex than lobbying Congress, wins in the judicial system secure regulatory reform and impact executive power. Looking back, some of NCBA’s biggest policy wins have been in the courts. Perhaps most well-known is NCBA’s work fighting the 2015 Waters of
the U.S. (WOTUS) Rule. Enacted by the Obama administration, NCBA and other agricultural groups fought implementation of the rule for nearly five years in courts around the country, preventing implementation of the rule in 28 states. These court rulings provided the Trump administration necessary firepower to rescind and replace the 2015 WOTUS Rule with the Navigable Waters Protection Rule (NWPR). The NWPR pulls back the Obama Administration’s federal overreach, while maintaining critical regulatory exemptions for agriculture. Now, participating as defendants, NCBA is back in the courts fighting to defend the Trump Administration’s rule. Activist groups were unable to get an injunction on the NWPR, and it is now the law of the land. NCBA’s work in the court system is not disjointed from our lobbying efforts. Often, these endeavors work together to create the foundation of laws and regulations from which we operate. In the 1980’s, Congress passed two laws intended to protect Americans from toxic chemical spills known as the Comprehensive Environmental Response, Compensation, and the Liability Act (CERCLA) and the Emergency Planning and Community Right-toKnow Act (EPCRA). In 2008, activists sued the Bush Administration, and eventually won their case in 2017, requiring livestock producers across the country to submit detailed reports to the government under CERCLA and EPCRA. NCBA lobbied Congress to achieve a statutory exclusion for farms,
VOTE! By Colin Woodall, NCBA CEO
THE OFFICIAL PUBLICATION OF NCBA 2020 NCBA Leadership: President President-elect Vice President Treasurer Federation Division Chair Federation Division Vice-Chair Policy Division Chair Policy Division Vice-Chair Immediate Past President Chief Executive Officer
Marty Smith Jerry Bohn Don Schiefelbein Joe Guild Buck Wehrbein Clay Burtrum Todd Wilkinson Mark Eisele Jennifer Houston Colin Woodall
Senior Editor John Robinson Associate Editor Brittany Schaneman Contributing Writers Walt Barnhart Steven Johnson Creative Director Don Waite Graphic Designer Dancinee Jennings Copy Editor Dianne Harvanek Samantha Coulson For ad sales, Shannon Wilson 303-850-3345, Nicole Bechtel 303-850-3465, or Jill DeLucero 303-850-3321. Contact NCBA: 9110 E. Nichols Ave., Suite 300, Centennial, CO 80112 (303-694-0305); Washington D.C.: 1275 Pennsylvania Ave. N.W., Suite 801, Washington, D.C. 20004 (202-347-0228). National Cattlemen’s Beef Association reserves the right to refuse advertising in any of its publications. National Cattlemen’s Beef Association does not accept political advertising in any of its publications. National Cattlemen’s Beef Association does not accept any advertising promoting third-party lawsuits that have not been endorsed by the board of directors. ©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.
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As you read this, election day is just a few weeks away. While there is still a lot of confusion on how this election will be conducted, I have a sneaking suspicion we may not have all the results on election night. The 2020 election process is the victim of COVID-19, questions about the abilities of the U.S. Postal Service, and one that comes as no surprise…good old political maneuvering. This is all the more reason you need to vote. I’m not one of those who is going to tell you that this is the most important election ever. I’m one that believes every election is important, and you need to vote in all of them. Whether it is voting for President of the United States or your local county commissioner, all elected officials have an impact on our ability to raise cattle. Don’t wait until the morning of November 3 to find out where you need to vote. In some cases, that will be too late. Start now by going online or calling your local election officials to determine how voting is being conducted in your jurisdiction. If you need to vote early or vote absentee, you probably should have made those requests by now.
Voter apathy is a real problem in the United States. Many ask whether or not their votes actually matter. YES, your vote matters! Voting is a right, but since we’re so used to it, many Americans fail to realize just how important this right is. There are millions around the world who don’t have this right and question why we don’t take it more seriously. I know you’ve got a lot going on, but don’t let that be an excuse not to vote. It’s more than just voting; it’s about being an informed voter. You may already know which presidential candidate you will vote for, but do you know what ballot initiatives, bond measures, or other items will be on the ballot? If not, take a few minutes to do some research. An educated voter is what we need. As for NCBA, we are preparing for all potential outcomes of this election. Contrary to what some may tell you, I know first-hand that you cannot be successful in Washington, D.C., by working with only one party. We work to develop relationships with whomever is in the White House. We’ve had varying degrees of success depending upon who that person was, but we never stopped trying to influence their decisions. The same goes for Congress. We must have friends on both sides of the aisle to achieve our annual policy priorities.
which kicked in before the court’s ruling took effect. Currently, NCBA is in court defending the farm exclusion against legal attacks from activists. Due to our efforts, cattle producers do not report to the government under CERCLA or EPCRA. On a personal note, I have been involved in NCBA's litigation efforts for more than 20 years. Together with the number of attorneys who were also cattlemen, I have worked to strengthen our presence in the judicial arena, particularly to protect private property rights and to counter expensive and unnecessary regulation of our industry and of our management. Litigation is not a hurdle for accomplishing our policy goals. Rather, it is an important tool that NCBA uses to tell our story. As the Trump Administration works to reform burdensome regulations, we will be there to defend their efforts. With our dues increase a few years ago, we were able to set aside specific funds so that we could strengthen our participation in these important cases. While none of us want to be involved in lawsuits, those that oppose our industry and our way of life continue to use the courts as a major battleground. I am extremely proud of the efforts that we have made, and NCBA will continue to stand up for the rights and interests of its members in all 3 branches of government. Thank you for your support and understand that your membership is what makes this possible. Let us continue the fight and work towards strengthening our position. We have many Democrat and Republican champions on Capitol Hill. We have many Democrat and Republican detractors that we must contain and defeat. There are also many in the middle that we need to convince our position is the correct position. We can only achieve that by having a fulltime staff in D.C. In fact, NCBA is the lone national cattlemen’s association with a full-time presence in D.C. working exclusively on cattle industry issues. A strong Political Action Committee or PAC is also critical to our success. NCBA PAC is one of the most effective tools we have in making our mark on the political stage. Congressional races are expensive, and Members of Congress and their challengers hustle to raise that money. By having a strong PAC, we can help our Democrat and Republican friends raise the money they need to win their races. We are unique among PACs, because we will give to candidates that challenge incumbents in a primary. If we have a sitting Member of Congress that doesn’t vote to support cattle producers, you bet we’re going to do all we can to oust them. We can be your best friend or your worst enemy. That decision is based on Senators’ and Representatives’ votes, not on their party affiliation. Find out how your state, county, or local jurisdiction is conducting voting this year. Research the candidates and the issues you will be voting on. Donate to NCBA PAC. Vote! Don’t make me come find you!
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NATIONAL CATTLEMEN
MEMBER MAIL BALLOT ADDITION When the 2020 Member Mail Ballot was inserted into the National Cattlemen last month, a resolution was inadvertently omitted. Our sincerest apologies to the cattle producers of Kentucky Cattlemen’s Association who brought forth this resolution. In keeping with the association’s process for policy development, members may vote to overturn the action by the NCBA Policy Division Board by voting “no” on the ballot on this page and returning it to the address of the third party tabulation firm (Plante Moran) noted on the ballot. If you are satisfied with this resolution, there is no need to take action.
CORPORATE MEMBERSHIP DIRECTORY These are companies that have teamed with NCBA as corporate members, demonstrating their commitment to the beef industry. Their involvement strengthens our future. NCBA members are urged to support these partners in turn by purchasing their products and services. Those who would like to become corporate members with NCBA (securing premium booth placement at the annual convention and trade show as well as other membership benefits), please call the Corporate Relations team at 303-694-0305.
GOLD LEVEL SPONSORS (Minimum $100,000 Investment)
Bayer Animal Health www.animalhealth.bayer.com Boehringer Ingelheim Animal Health Inc. www.bi-vetmedica.com/species/cattle.html Caterpillar www.cat.com Central Life Sciences www.centrallifesciences.com Corteva Agriscience™ www.corteva.com
Support for Programs to Mitigate Price Risk for Cow-Calf Producers - New WHEREAS, the cattle industry has seen increased volatility in the market that has put tremendous financial pressure on cow calf producers, and WHEREAS, this volatility has highlighted the need for viable options for true risk management within the cow calf sector, and WHEREAS, NCBA commissioned an “Economic Damages to the U.S. Beef Cattle Industry Due to COVID-19” study by Oklahoma State University, and WHEREAS, the Oklahoma State University report concluded cow-calf operators have far fewer risk management tools at their disposal compared to other beef cattle sectors, and WHEREAS, agricultural economists have since provided further evaluation on potential tools for risk management within the cow calf sector, THEREFORE BE IT RESOLVED, NCBA supports the development of risk management tools or the revision of existing tools for cow calf producers to minimize risk for members in this segment of the industry.
IMI Global, Inc. www.imiglobal.com John Deere www.deere.com Masey Ferguson www.agcocorp.com/brands/massey-ferguson. Merck Animal Health www.merck-animal-health-usa.com Micro Technologies www.microtechnologies.com Moly Manufacturing www.molymfg.com New Holland Agriculture www.newholland.com Purina Animal Nutrition LLC www.purinamills.com/cattle Ritchie Industries Inc. www.ritchiefount.com Roto-Mix www.rotomix.com Zoetis Animal Health www.zoetis.com ALLIED INDUSTRY COUNCIL
2020 NCBA MEMBER SUPPLEMENTAL BALLOT Support for Programs to Mitigate Price Risk for Cow-Calf Producers - New Yes__________ No __________ VOTER REGISTRATION BALLOTS MUST BE POSTMARKED BY OCTOBER 22, 2020, TO BE COUNTED. PHOTOCOPIES ARE NOT ACCEPTABLE. EACH BALLOT MUST INCLUDE: NAME OF MEMBER, STATE AFFILIATION, MEMBER NUMBER & BE SIGNED. YOUR MEMBERSHIP NUMBER IS ON YOUR NATIONAL CATTLEMEN MAILING LABEL. Name (please print): _________________________________________________ State Affiliation: ____________________________________________________ Membership Number: _______________________________________________ (This is the seven-digit number on the mailing label of this publication. If your number is not clear, please call 866-233-3872 to verify your membership number.) Signature: _________________________________________________________ Thank you for your participation. RETURN BALLOT TO: Plante Moran Attn: National Cattlemen’s Beef Association Mail Ballot 8181 E Tufts Ave, Suite 600 Denver, CO 80237
Allflex Livestock Intelligence Animal Health International CHR HANSEN Elanco Animal Health Farm Credit Council
Huvepharma, Inc. Lallemand Animal Nutrition Norbrook, Inc. Rabo AgriFinance RAM Trucks
ALLIED INDUSTRY PARTNERS 44 Farms ADM Animal Nutrition, Inc. AgriPrime Insurance Agency Agri-Pro Enterprises of Iowa, Inc. Alltech, Inc. American Hereford Association American National Insurance American Wagyu Association Anipro Arm & Hammer Animal and Food Production Arrowquip Bank of America Merrill Lynch Barenbrug USA Bass Pro Shops/Cabela’s Beef Magazine Behlen Manufacturing Bimeda BioZyme Cargill Animal Nutrition Case IH Certified Hereford Beef CME Group DATAMARS Livestock Dell Technologies Diamond V ENDOVAC Animal Health Furst-McNess Company Gallagher Gravely, an Ariens Company Greeley Hat Works Growsafe Systems LTD Hayden Outdoors Real Estate Hyundai Construction Equipment International Stock Food Kent Nutrition Group
Krone Kubota Tractor Corporation Kunafin “The Insectary” Laird Manufacturing Meat&LivestockAustralia,Ltd. Micronutrients Neogen New Generation Supplements Noble Research Institute Novus International Parker McCrory PBS Animal Health Phibro Animal Health Priefert Ranch Equipment Provimi QualiTech, Inc Quality Liquid Feeds R&R Machine Works Red Angus Association RFD-TV Rice Lake Weighing Systems Roper/Stetson/Tin Haul Apparel and Footwear Stone Manufacturing Superior Livestock Tarter Farm and Ranch Equipment The Hartford Livestock Insurance The Vit-E-Men Co. Inc./ Life Products Trans Ova Genetics U.S. Premium Beef Vermeer Vitalix Westway Feeds Y-Tex Zinpro Performance Minerals
PRODUCT COUNCIL American Foods Group Cargill Meat Solutions Certified Angus Beef Culver’s Darden Restaurants empirical Fareway Stores, Inc. Five Guys
JBS McDonald’s Corporation National Beef Packing Omaha Steaks Performance Food Group Preferred Beef Group Tyson Fresh Meats Wendy’s International
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T H E F E D E R AT I O N O F S TAT E B E E F C O U N C I L S Building beef demand by inspiring, unifying and supporting an effective state/national checkoff partnership.
Missouri Focuses On Kids and Nutrition Helping keep beef and nutrition top of mind this past summer, the Mo Beef Mo Kids program introduced a series of videos focused on Beef for Strength. Benny the Bull, the Missouri Beef Industry Council mascot, helped debut the program videos, which challenges kids to keep moving and be outdoors. As part of the Mo Beef Mo Kids Mo Fit program, students learn about beef’s nutritional package while connecting the importance of protein to everyday activity. As part of the virtual challenge, students complete a scavenger hunt and fun workout at home, in addition to helping with chores and using their imagination. The Mo Beef Mo Kids Mo Fit program connects schools and their food service professionals to cattle farmers and ranchers to “beef” up school lunches. The goal is more beef, more often, while implementing food and nutrition education in the classroom. For more information, go to https://www.facebook.com/ MoBeefKids.
Another Stellar Year for Beef At the Sturgis Motorcycle Rally The South Dakota Beef Industry Council (SDBIC) helped celebrate the 80th year of the Sturgis Motorcycle Rally with a major promotion that put beef in the spotlight. The Sturgis Beef Throw Down with Beef, Brews, and Bikers was a demand-building experience part of the partnership that designated beef as the official meat of the rally. SDBIC worked with Food Network Celebrity Chef Justin Warner and the City of Sturgis to create the tour experience, with participating venues reaching about 366,000 consumers throughout the 10-day August event. Participating locations showed off their prized beef menu items paired with a brew of choice and were judged by Warner and South Dakota ranchers Les Shaw, Ryan Casteel, and Gary Deering. The Mount Rushmore Brewing Co. and Pounding Fathers Restaurant was crowned overall Beef
Council Hosts Virtual Cooking Parties Partnering with five food social influencers – and proud beef advocates – the New York Beef Council recently shared beef cooking knowledge and confidence with consumers through virtual cooking parties. Participants had the chance to virtually cook an original beef recipe alongside their favorite food bloggers, learning tips and tricks when cooking with beef as they prepared the dishes.
Recipes prepared during the parties ranged from filet mignon to beef kofta kabobs and tacos. Those recipes chosen led to excellent discussion and lessons in both beef cut selection and cookery. “This event provided us the opportunity to engage directly with consumers who are interested in their food and eager for new knowledge,” said Katherine Staiger, NYBC director of producer communications and influencer outreach. “The cooking parties were a unique experience directly connecting consumers to beef and beef resources, such as Beef. It’s What’s For Dinner.” Post-event evaluations showed that 100 percent of attendees would Influencer Christina Hitchcock shares beef cooking tips with recommend this fans through a virtual party sponsored by the New York opportunity to their Beef Industry Council. friends and family.
Throw Down champion. Their beef tenderloin topped with softshell crab earned the judges’ vote and took home the trophy. The restaurant earned a team slot in the Sanford International Senior PGA Pro-Am Tour held Sept. 7-13 in Sioux Falls, S.D. Thanks to the SDBIC, beef was the official protein of the Sanford International. “Pounding Fathers at Mount Rushmore Brewing Co. presented a dish that represented just how special beef can be,” Warner said. “Their take on Steak Oscar was creative and delicious but made sure that a rubyhued and butter-soft beef tenderloin was the star.”
Kansas Billboards Make Consumers Crave Beef
Billboards placed in the Wichita, Kan., area are augmenting a strategic campaign by the Kansas Beef Council to help boost beef’s status as the “king of proteins.” The billboards feature the “Nicely done, Beef” theme, and highlight beef’s unbeatable taste to consumers as they travel through the city’s busy highways and intersections. A targeted campaign using checkoff-funded “Nicely Done, Beef” audio advertising is part of the strategy, with ads placed by KBC on Spotify, a streaming radio station popular with millennial and Generation Z consumers. It is all part of a demand-building KBC campaign that also includes targeted digital ads, educating health professionals and networking with key culinary influencers throughout Kansas.
Florida Beef Council Introduces Speedway Campaign to Boost Beef to Race Fans
Taking advantage of the popularity of NASCAR racing, the Florida Beef Council (FBC) embarked on a six-week campaign with Daytona International Speedway to promote beef. The campaign introduced new beef ideas to the millions of followers of Daytona’s social media platforms and website. Even when
NASCAR fans aren’t going to the racetrack, they are taking time to grill one of their most popular foods – beef. During the campaign, the FBC shared race day and long-time track favorites from Beef. It’s What’s For Dinner.com as well as utilizing numerous Speedway celebrities in videos including the Daytona International Speedway president and speedway chefs. Among the most popular was a video with Ross Chastain, NASCAR Xfinity Series driver and former winner at Daytona. Chastain was a fitting participant because his family raises beef and watermelons in Florida. The recipe from BIWFD.com was for steak and watermelon, which was appropriate given Chastain’s background and passions. The segment with Chastain generated tremendous response with many shares of the Facebook post. Another video featured Florida Cattlemen’s Association Sweetheart Sally Kempfer, whose offering generated major interest and interaction in the campaign as a Race Day Recipe. The Citrus-Rubbed
Beef Top Sirloin recipe, presented in the video with Sally’s father Henry also created a genuine, authentic view for race fans of a fifth-generation cattle family from Florida. The Daytona International Speedway is the largest NASCAR venue. It can be found at DaytonaInternationalSpeedway.com where you can access other Daytona social media properties including Facebook.
NATIONAL CATTLEMEN 7
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Cattle Assistance Q & As Continued from page 1 •
three different members of the legal entity each provide at least 400 hours of active personal labor, active personal management, or combination thereof with respect to the production of 2020 commodities, then an entity may receive up to $750,000.
Although the payment limitation is increased for the corporation, LLC, LP, trust, or estate, each member’s payment limitation (received directly or indirectly) remains subject to the $250,000 individual person payment limit. It is also worth noting that these payment limit provisions are different from and separate from the payment limitations established by the 2018 Farm Bill. Q: Who is eligible to participate in the CFAP 2? A: Any individual or legal entity who shares in the risk of producing a commodity may apply for CFAP 2. Producers must be in the business of farming at the time of submitting their application to be eligible. Contract growers who do not share in the risk of production are ineligible. Producers can apply for assistance for only commercially produced commodities.
(PPP) or Economic Injury Disaster Loan program does not impact producer eligibility for CFAP 2. The PPP duplicate benefit provision does not have an impact on FSA farm programs or farm loan programs. Q: When does CFAP 2 signup start and end? A: Producers may apply for CFAP 2 from September 21, 2020, to December 11, 2020, through their local Farm Service Agency (FSA) at their USDA Service Center or online at farmers.gov/cfap/apply. Q: How can producers apply for CFAP 2? A: USDA’s Farm Service Agency will offer multiple ways to apply. Producers can apply online or manually by completing the application form, or by filling out the application form with a payment calculator. More information can be found on farmers.gov/cfap/apply. Q: If a producer applied for CFAP 1, do they still need to apply for CFAP 2? What about producers who did not apply for or receive CFAP 1 payments? A: CFAP 2 is a separate program. Producers will not automatically be signed up because they applied or received a payment under CFAP 1 and will therefore still need to apply. There is no requirement to participate in CFAP 1 in order to participate in CFAP 2.
Q: Is there an Adjusted Gross Income (AGI) limit to participate in CFAP 2?
Q: What documents do cattle producers need to submit with their application?
A: Yes. To be eligible to receive payment, a person’s or legal entity’s AGI cannot exceed $900,000 (using the average for the 2016, 2017, and 2018 tax years). However, producers with AGI exceeding the limit may be eligible to receive payment if 75 percent or more of their total AGI comes from farming, ranching, or forestry-related activities.
A: To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records. Keep in mind, CFAP 2 is a self-certification program like CFAP 1, and producers may be subject to review and spot checks.
Q: Do the Farm Bill’s conservation compliance requirements apply to CFAP 2?
A: FSA county offices will process applications as they receive them once the application period opens on September 21, 2020. Program approval is handled at the local level, and the timeline for this approval process, including required internal controls and data validation, varies from county to county. Payments are made shortly after applications are approved.
A: Producers participating in CFAP 2 must comply with the Conservation Compliance on Highly Erodible Land and Wetlands (go to nrcs.usda.gov for more information). Producers must agree, by certifying Form AD-1026, that they will not produce an agricultural commodity on highly erodible land without a conservation plan, plant an agricultural commodity on a converted wetland, or convert a wetland to make possible the production of an agricultural commodity. Q: Does participation in Small Business Administration programs impact CFAP 2 eligibility? A: Participation in SBA’s Paycheck Protection Program
Q: When are CFAP 2 payments expected to begin?
DISCLAIMER: This document is not intended to be exhaustive, and as USDA publishes additional materials, may not constitute the most up-to-date information. It does not, and is not intended to, constitute legal advice. Any questions regarding eligibility or other legal matters should be directed to counsel and other certified professional advisors.
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Governance Nominations Now Open for the 2021 NCBA Leadership The NCBA Nominating Committee, chaired by Immediate Past President Jennifer Houston and made up of two representatives from each of NCBA’s seven regions, is seeking nominations for the following positions: • President-Elect • Vice President • Policy Division Chair and Vice Chair • Federation Division Chair and Vice Chair • Eight Federation Representatives to the Beef Promotion Operating Committee (BPOC)* *The Federation Chair and Vice Chair automatically serve on the BPOC as part of the ten Federation representatives. According to the association bylaws, the current President-Elect, Jerry Bohn, will automatically fill the office of President, succeeding Marty Smith.
2021 Nominating Committee
Application Deadline is Tuesday, December 22, 2020 Accepting Candidates for the following Positions • NCBA President Elect • NCBA Vice President • Policy Chair and Vice Chair • Federation Chair and Vice Chair • Eight (8) Beef Promotion Operating Committee Members
Chair Jennifer Houston, NCBA Immediate Past President FEDERATION Region I – Darwin Nissley, PA Region II – Paul Moss, TN Region III – Dean Black, IA Region IV – Austin Brown, TX Region V – Robbie LeValley, CO Region VI – Brad Scott, CA Region VII – Jerry Effertz, ND
POLICY Region I – Monte Bordner, MI Region II – John Langdon, NC Region III – Mike Landuyt, MN Region IV – Stephen Diebel, TX Region V – Tom Hougen, MT Region VI – Colby Pace, UT Region VII – Mike Drinnin, NE
For nominating committee questions contact: Jennifer Houston, jhouston@beef.org Todd Johnson, tjohnson@beef.org Deb Warren, dwarren@beeg.org
For more information, scan the QR code or visit NCBA.org/leadership.aspx
.
CME Beef Industry Scholarship Deadline November 13, 12:00am CST APPLICANTS MUST: • Be a graduating high school senior or full-time undergraduate student who will be enrolled in a twoor four-year institution for the 2021-2022 school year. • Have demonstrated a commitment to a career in the beef industry through classes, internships or life experiences. • Include a Letter of Intent—write a one-page letter expressing/indicating your future career goals related to the beef industry. • Write an original essay—750 words or less describing an issue confronting the beef industry and offering a solution(s). • Provide two Letters of Recommendation—Provide two letters of recommendation from current of former instructors or industry professionals. Letters & Recommendation does doe need to be capital. Individual applicant or their family must be a member of the National Cattlemen’s Beef Association.
For more information please visit www.nationalcattlemensfoundation.org
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Market Matters Understanding Capacity Limits By Lance Zimmerman Manager – Research, Analysis and Data, CattleFax Holiday periods can reveal quite a bit about packing capacity limits. Cattle processors were profitable going into the holiday, demand for beef was relatively strong, and Labor Day meant one less workday. Plants were going to explore every reasonable option to maximize capacity. Fed cattle processing capacity has not been immune to the lingering influence of COVID-19. The pandemic clearly disrupted processing speeds from April through June as the virus, and concerns of it spreading, shutdown packing plants. Weekday slaughter fell to nearly 50,000 head at that time. Those days seem to be in the past, but some limitations remain. Based on recent fed cattle slaughter data, maximum capacity is 95,000 to 96,000 head per weekday in this postCOVID world. There have only been eight weekdays above 95,000 head since July 1, and six of them have come since August 15, as packer profitability increased $100/head. Packers would have put more emphasis on weekday slaughter in the weeks surrounding Labor Day with an abundant supply of cattle and a beef complex that seasonally slides lower into October. Prior to the pandemic, the industry had a Monday through Friday capacity near 490,000 head. Recent data suggests the industry has lost 10,000 to 15,000 head per week going into 2021. At the very most, the new practical five-day maximum capacity is 475,000 head, until proven otherwise. That said, processing capacity is not a limiting factor to the market today. Slaughter is more than adequate to meet beef demand and work through the carryover created by the late spring processing disruptions. In fact, the October 1
inventory of cattle on feed 150 days or more will likely be down 3 percent compared to year-ago levels. That supply could remain below year-ago levels through year-end 2020, based on meeting or exceeding current slaughter projections. The market-ready supply of fed cattle will start to increase, compared to prior-year levels as 2021 begins, if slaughter estimates are accurate through December. The number of fed cattle placed against the first quarter is currently 2.5 percent larger, and the late winter to early spring marketing window has remained attractive for cattle feeders from a profitability standpoint. As that supply grows, current packing capacity could become more limiting to the market. Beef demand is also more of a challenge in the first quarter, and processing margins typically decline. The incentive for packers to maximize capacity diminishes. Bottom Line: It is possible to meet or even exceed CattleFax projections for fed cattle slaughter from fall into early winter based on current packing capacity. The placed-against supply through that period is in balance with hook space. That could change as late winter transitions to spring, and the fed cattle supply grows.
Increase Chance for Precipitation 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. After a topsy turvy September that brought snow, freezing temperatures, windstorms, heat waves, and hurricanes, many are wondering if October will bring more of the same.
Simply put, the answer is both yes and no. The warmer than normal temperatures that were widespread in the far western states in September (especially CA, NV, AZ, WA, and OR) will continue into October. Unfortunately, that means that drought conditions will persist in the far west and southwest with a continuation of the wildfire season in those same areas. This will especially be true early in October. The cooler and wet weather conditions that were common in parts of the central and east in September will also continue. The map above shows the
forecasted temperature trends for October across the U.S. Notice the warmer than normal temperatures in the west and the cooler temperatures in the east. The warmer temperatures in October are likely to occur early in the month before colder temperatures move into most of the nation by the end of the month. Tropical activity (tropical storms and hurricanes) will likely persist into early October as well. One part of October that may not be like September will be precipitation. Some parts of the west, especially the Pacific Northwest, will have better rain chances; this will be especially true in WA and OR. The area needs a large amount of rain to alleviate drought conditions as well as help put an end to a horrible wildfire season. Parts of CA, ID, MT, WY, and the Corn Belt may also experience an increase in precipitation. Drier conditions may be found in the rain-soaked areas of the Gulf Coast. However, one more hurricane or tropical storm could nullify the precipitation forecast for October below.
CATTLEMEN’S
CALL
Don’t forget to tune in to the Cattlemen’s Call podcast!
Subscribe and never miss an episode. Listen on Google Play, Spotify, Stitcher, TuneIn & Apple Podcast!
To listen and learn more scan the QR code or visit NCBA.org/cattlemenscall.aspx.
NATIONAL CATTLEMEN 11
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Market Matters Red Meat and Poultry Pandemic Trends By Tyler Cozzens, Agricultural Economist, Livestock Marketing Information Center The livestock industry has had a rocky road in the wake of the pandemic. Outbreaks of COVID-19 at multiple processing facilities in late April and early May led to abrupt supply disruptions which have caused residual effects that are still being worked through. Larger concerns for the industry are potential impacts and changes to consumer demand, as much of the restaurant sector is slow to reopen and those that have reopened are often operating at a limited capacity. These concerns are warranted as the potential changes to consumers’ eating behaviors may have longer-term implications. Each of the three main meat proteins (beef, pork, and poultry) have had to deal with their own set of issues as the meat demand picture has changed quickly and continues to evolve. STEER DRESSED WEIGHT Federally Inspected, Weekly
Pounds 925 915 905 895 885 875 865 855 845 835
JAN
APR
JUL
Avg. 2014-18
OCT
2019
2020
Data Source: USDA-AMS & USDA-NASS Livestock Marke�ng Informa�on Center
Before the onset of the pandemic, federally inspected cattle slaughter had been tracking higher than the prior year’s level, but since early April only three weeks have managed to be above last year as of this writing. The slaughter disruptions led to a backlog of cattle in the supply chain which kept average dressed weights well above typical levels. In mid-May, average steer dressed weights were as much as 52 pounds
higher than the same week a year ago. Weights have since moderated but are still easily above typical levels. The boost in average dressed weights has partially offset the lower slaughter numbers and helped fuel beef production which has been above last year since mid-June. Higher beef production coupled with slow beef demand in the restaurant sector has pressured the choice boxed beef cutout value below prior-year levels and much lower than the record highs set in mid-May. Beef demand in the near term will be a key driver for the industry as a large portion of beef consumption typically occurs at restaurants. Recovery of the restaurant sector will be critical for future beef demand. Still, declines in away from home dining may be partially offset by growth in consumers seeking to create their own beef experience at home. The changing dynamics of future beef consumption are still playing out which draws concern due to potential growth in domestic beef supplies. Middle meats will likely struggle if restaurant participation wanes which could drag down the cutout value in the near term. Any headwind to the cutout value will work its way to cattle prices, but feed costs are expected to remain lower for the remainder of 2020 and into 2021 providing some support for cattle feeders. If beef demand does rebound, the industry will be well-positioned to gain momentum. Much like the beef industry, hog producers are sorting through post-pandemic events, mainly the backlog of hogs in the supply chain caused by plant closures. The USDA NASS June 1 Hogs and Pigs Report stated 12 percent and 13 percent growth in the two heaviest weight categories. An indication, at that time, producers had managed to slow the flow of hog supplies to let processors recover from plant closures and resume slaughtering C-S-18 08/28/20
hogs as opposed to euthanizing HOG SLAUGHTER Federally Inspected, Weekly hogs. Following the second Thou. Head quarter disruptions, hog 2900 slaughter has been tracking 2700 above the prior year’s levels for 2500 most weeks averaging almost six percent higher over the last 2300 three months. 2100 Improving hog slaughter 1900 and moderate growth in average dressed weights has 1700 led to a three percent rise 1500 in pork production through JAN APR JUL OCT Avg. 2014-18 2019 2020 the first seven months of 2020. Following disruptions Data Source: USDA-AMS & USDA-NASS at processing facilities, pork Livestock Marke�ng Informa�on Center cutout values spiked but quickly and familiar cuts, similar to changes in retreated below prior-year levels, a trend preferences for beef and pork. Breast that has continued since early June. meat, being a recognizable product, for Belly and ham primal composite values consumers has seen its value hold up have seen some strength only reaching well while wings have taken longer to prior-year levels in recent weeks. Loin, recover, but wing prices have managed butt, and picnic are struggling to find to reach notable levels post-pandemic. traction and reach similar levels to a year ago. Surprisingly, ribs have been above Leg quarter prices continue to struggle last year’s level every week except five as an item not as familiar to consumers which were during the pandemic. Foreign and typically destined for export markets. demand continues to be a bright spot for Soft foreign demand has forced leg the U.S. pork industry helping to provide quarters onto the domestic market some price support and move product pressuring prices to lows not seen in over from the domestic market. Although, four years. The poultry industry continues available pork supplies in the meat case to manage production keeping a close at competitive prices will create further watch on consumer demand and its competition for consumer dollars in the near term. impacts on prices. Both the chicken and turkey industries As consumers adjust consumption are taking a cautious approach following patterns, the meat industry is working the pandemic. Second-quarter chicken to position accordingly to fill consumer production was unchanged from the demands. Year-over-year, both pork prior year as a decline in slaughter was and chicken are expected to have larger offset by a similar increase in average production in 2020 and 2021 while bird weights. Turkey production dropped beef production will likely be lower. in the second quarter as the sector saw Meat demand has been volatile this a contraction in consumption during the year, and the rest of the year is likely to pandemic. In the wake of the pandemic, adjustments to both chicken and turkey continue that pattern. Ample supplies production occurred with output levels will be helpful to the budget-conscious reflective of profitability setbacks in the consumers and favor chicken and pork. industry. Chicken production is expected So far, the restaurant sector has been to increase almost two percent this year sluggish to return and may lag consumer while turkey production is projected confidence and economic indicators, as down nearly one percent. we saw in other large black swan events Despite post-pandemic production such as 9/11. Beef demand faces an challenges for the poultry industry, uphill battle should the economy take consumer demand for poultry products longer to recover. has skewed toward easy to cook at home H-S-05 08/28/20
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Grill Season Helps Balance COVID Effect on Restaurants
By Don Close, Senior Animal Protein Analyst with Rabo AgriFinance Since its first COVID-19 crash, the premium over comprehensive cutout bounced through midJune until it began its steady climb back up to the $20-range. The premium has helped cattle feeders, though it is well below where it should be this time of year, about $40. There have been many factors contributing to this summer’s quality spreads. The two primary reasons were the counterseasonal strength in the percentage of choice and prime grading carcasses and the decline in fine-dining restaurants. It will take time for the causes and effects of these factors to normalize. Grading Rates Defy Seasonal Trends As a result of the decline in fed slaughter in April and May, as many as one million head of fed cattle were backed up in feedlots. While the backlog of cattle is improving at a solid pace, cattle feeders have been forced to feed cattle longer and to heavier weights. The increased time on feed has substantially improved grading rates. Quality Premiums Faring Fairly Well While grading rates stayed high, fine dining was off by as much as 32 percent in July, and airline traffic has continued to be off by 75 percent. Business travel is important for fine dining or “corporate credit card dining.” The combination of increased supply and the slowdown in the traditional usage of prime beef has caused distortion in the price spreads among beef quality grades. During the peak of the shelter-in-place orders, prime-graded beef was selling for as little as a $4 to $8 premium to the comprehensive cutout. It has since recovered to a $20 to $22 premium, mainly due to the success of prime products that transferred to
retail grocery stores. Last year, it peaked at the end of September at $70. The premiums for branded beef products have been selling very well, too, and are currently trading in the seasonal expected premium of $5 to $8 over comprehensive cutout. Keep in mind branded beef is heavily used in casual-to-white-tablecloth dining, and casual-dining restaurants have recovered better than fine-dining establishments. Branded beef is also sold in most grocery stores. Even before the pandemic, it had also become increasingly common to see prime-graded beef in conventional retail offerings. This is especially true in club stores, Costco and Sam’s Club, and increasingly at mid- to high-end grocery stores. We were in a record-long period of economic growth, and many consumers had a higher amount of discretionary income. They were willing to spend money on higher-quality beef, whether for at-home or awayfrom-home dining. At the same time, the percentage of prime-grading carcasses to all beef graded had increased from the historical level of around three percent to now making up eight to ten percent. As consumers have become more accustomed to eating at home during the COVID-19 shutdown, sales of all foods in conventional grocery stores have exploded. Many have taken steps to enjoy a more similar quality of meals to what they were accustomed to getting while eating out. Nowhere has this been more applicable than in buying and enjoying a higher quality of beef, especially steaks. People who have maintained their jobs have had, in many cases, more disposable income due to not traveling or eating out. They are putting some of that money to their grocery store budgets. As days get shorter, temperatures drop lower, and grills sit unused more often; it could become more difficult for the beef industry to make up for white-tablecloth dining’s slowness. The prime
premium will likely be skewed throughout the remainder of 2020 and may return to normal sometime next spring. The factors to watch are high-end restaurant demand and cattle slaughter returning to normal levels. In light of the recent challenges of moving large quantities of prime-graded beef, the question has been raised whether the industry should aim to produce more carcasses that grade low- to mid-choice instead of the upper end of choice and prime. Absolutely not! After the first Beef Quality Audit in 1991, the erosion in beef quality grading stopped in the early 2000s, reversed in direction and started to improve. As cattle quality has improved, consumers’ bar of acceptable quality has increased. That should and will continue to be the case. There will be temporary shock waves to the system in which supply and demand do not perfectly align. Any one of the immeasurable number of moving parts can send waves through the market: weather, breeding programs, periods of economic growth and contraction, as well as changing consumer tastes. While there is a broad range of cattle quality and uses for beef, I am absolutely convinced the recovery and growth of beef demand is due to eating experiences with beef meeting expectations more and more. If you are interested in additional insights into the beef industry, find the closest Rabo AgriFinance office on www.RaboAg.com. Rabo AgriFinance is a leading financial services provider for agricultural producers and agribusinesses in the United States. Adding value through industry expertise, client-focused solutions, and long-term business relationships, Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for and take advantage of market opportunities. This comprehensive suite includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a division of Rabobank, a premier bank to the global agriculture industry and one of the world’s largest and strongest banks. Rabo AgriFinance is an equal opportunity provider.
NCBA Showcases the Beef Industry’s Commitment to Sustainability In a continued effort to protect the reputation of the beef industry, the National Cattlemen's Beef Association, a contractor to the Beef Checkoff, is proactively ramping up communications efforts to highlight the importance of sustainability to the beef industry and its continued commitment to being stewards of the land and environment. These efforts, which were set to coincide with Climate Week NYC, held the week of Sept. 21, 2020, include a consumer-focused news story to be distributed nationally, targeted media outreach to offer beef sustainability experts and resources to sustainability journalists, and sharing of sustainability facts and resources on the Beef. It's What's For Dinner. social media accounts. The tactics highlight the following facts: •
According to the U.S. Environmental Protection Agency, greenhouse gas from beef cattle only represents 2 percent of emissions in U.S.
•
The U.S. produces 18 percent of the world's beef with only 6 percent of the world's cattle.
•
Between 1977 and 2007, the U.S. beef industry has reduced the carbon footprint of beef cattle by more than 16 percent while producing slightly more beef, thanks to continued improvement in sustainability practices and more effective use of resources.
•
Today, U.S. grasslands utilized by the beef industry sequester and store 7.4 Pg Carbon-which is the equivalent of taking 5.76 Billion cars off the road.
•
Cattle not only recycle, they upcycle by eating human-inedible plants and turning them into highquality protein. “Beef farmers and ranchers recognize the
In an effort to help set the record straight on beef’s true environmental footprint, NCBA, as a contractor to the Beef Checkoff, placed the ad above in Times Square during NYC Climate Week activities. importance of caring for the environment and we strive to ensure continuous improvement in managing the land, water and air resources in our care,” said Florida rancher Marty Smith, who is also serving as the current president of the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff. “We know that optimal management of the resources upon which our animals and our livelihoods depends is critical to the longevity of our farms and ranches and that's why
cattlemen and cattlewomen are an important part of solving the environmental issues facing the global population.” We need ruminant animals, like beef cattle, to help make more protein with less, and we've proven in the U.S. that beef can be raised sustainably. Sharing the facts about beef production is a priority of NCBA as a contractor to the Beef Checkoff.
Announcing the
2020 REGIONAL WINNERS
TUESDAY, OCTOBER 20 8:30 P.M. EASTERN Pull up a chair, gather your crew and join us for the announcement of the 2020 Regional Environmental Stewardship Award Winners. You and your family will enjoy hearing each of these unique regional winner stories. You may even gain tips and tricks that you can apply on your very own operations!
Watch on RFD TV – Cattlemen to Cattlemen or stream on
www.environmentalstewardship.org Sponsored by
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Region IV Report By Charlie Swanson, Region IV Vice President Region IV of NCBA includes the states of Texas, Arkansas, and Oklahoma. These three represent 5,654 NCBA members, which is the largest membership of any of the seven regions. Cody Burkham, Executive Vice President, reported for the Arkansas Cattlemen’s Association (ACA). The COVID-19 pandemic has the Arkansas cattle industry working hard to re-establish an Arkansas state meat inspection program. During the pandemic, it was clear to producers and consumers alike that Arkansas relies heavily on out-of-state beef processing. This realization has sparked the Arkansas state legislature to hold different committee hearings in which both federal and state meat inspection has been the topic. On July 21, the Arkansas CARES Act steering committee voted to fund a $5 million Arkansas Meat and Poultry Processing Grant Program through the Department of Agriculture. This grant is a 90/10 cost share program that encourages custom processors to become USDA inspected by covering 90% of the cost to upgrade to USDA processing standards. If the plant is already USDA inspected, they can also apply for funding to increase their current harvesting capacity. This was a collaborative effort between the ACA, Arkansas Farm Bureau, and the Arkansas Department of Agriculture. On September 4, ACA leadership joined Congressman Rick Crawford (AR-31) and the UK embassy for a virtual Arkansas Commodity Roundtable. This roundtable centered on the trading relationship between the UK and the US and how it could move forward in a positive way for both countries. Texas cattlemen are represented at the NCBA by two cattle producer groups, Texas Cattle Feeders Association (TCFA) and the Texas & Southwestern Cattle Raisers Association (TSCRA). Ross Wilson, President & CEO of TCFA, reports that feedyard members continue to reduce the COVID-19 backlog of fed cattle with hopes that most yards will be current by the end of October. Drought continues to be a challenge for most of Texas and has resulted in some feedyard placements ahead of schedule.
TCFA is hosting Zoom conferences with TCFA leadership and feedyard managers with the Fed Cattle Exchange (FCE) management team to discuss new negotiated trade options being developed by the FCE including a ‘Bid the Grid’ option. TCFA is making plans for the upcoming Texas Legislature with focus on property rights, fake meat, and possible changes in Agriculture tax issues driven by budget cuts resulting from the COVID-19 economy. TFCA is continuing its effort in the expansion of U.S. Cattle Trace. Reporting for the TSCRA is Jason Skaggs, Executive VP/ CEO. TSCRA held its annual conventional virtually this year September 15-16. The association had an officer rotation at the convention. Bobby McKnight of Ft. Davis finished his term as president on September 16, and Hughes Abell of Austin became president at that time. TSCRA is anxious to see the outcome of the NCBA Live Cattle Marketing SubGroup that came out of the NCBA summer meeting. TSCRA is also concerned about legislation being supported by the Livestock Marketing Association (LMA) in Washington, D.C., which would create a Dealer Trust. TSCRA opposes this legislation. The legislation is also opposed by many state and National Banking Associations. TSCRA is preparing for the Texas Legislative session which begins in January and runs through May. Big issues will be eminent domain reform and the state budget. West Texas and parts of the Texas panhandle continue to be very dry and producers are selling cattle quickly. Oklahoma Cattlemen’s Association (OCA) Executive Vice President Michael Kelsey reports that the OCA held its annual meeting in the last of July as scheduled. The venue had to be changed to Tulsa due to COVID-19 restriction in the city of Norman. Participation was down this year due to the concerns over the COVID-19 virus. However, participation was active, and folks who did come were glad to be out
lV and were engaged. A highlight of the event was having NCBA President Marty Smith as the featured speaker. Kent Bacus from the NCBA Washington office also updated the group on beef export marketing and demand. The OCA Ranch Rodeo was held at the Lazy E Arena in Guthrie with an excellent turnout on the second night. The Ranch Rodeo Committee has donated over $531,000 to the Children’s Miracle Network in the last 18 years. OCA staff is busy scheduling fall gatherings across the state. Twelve meetings, two in each of the six districts, will be held in October and November. Discussions have been held over the McGith Case, which has to do with a ruling by the US Supreme Court dealing with the Oklahoma Indian Reservations and who has jurisdiction over tribal land. There is much confusion over how far the decision may impact civil authority and tribal sovereignty. This has an impact over the eastern half of Oklahoma. OCA coordinated and presented several webinars this spring dealing with producers selling beef direct to the consumer. OCA is working on a new strategic plan. The current four-year plan expires this year.
New Industry Long Range Plan Leads to Changes in Checkoff Committees Work began soon after the new Beef Industry Long Range LONG RANGE PLAN Plan (LRP) was VISION To be the protein of choice approved in by consumers around the world while enhancing the sustainability of July to assess all segments of our industry. if the Checkoff MISSION Ensure the longCommittee term prosperity of the U.S. beef structure would industry by sustainably producing and need any marketing the most trusted and adjustments satisfying protein to consumers around the world. based on this new STRATEGIC plan. Federation INTENT Grow the Beef and Cattlemen’s Demand Index to X by 2025 by promoting the Beef Board nutritional value, high quality and unparalleled (CBB) leaders safety of U.S. beef to domestic and international consumers while strengthening determined there industry efforts in traceability, sustainability and animal care were changes practices and implementing new business models, production practices and technologies that will increase efficiencies. required to better serve the needs of the Checkoff. “The new Long Range Plan has 41 initiatives, and it was important to make sure we had committees that properly reflect the initiatives that can be addressed by the Checkoff,” said Buck Wehrbein, Federation Chair as he reflected on the process of making sure committees aligned with the plan. Wehrbein continued, “It became evident we needed to add a committee and also eliminate the working groups to optimize the decisionmaking process.” Beginning October 1, the new structure takes affect and includes the following committees: • International Marketing Committee • Product Innovation & Safety Committee • Domestic Marketing Committee • Consumer Trust Committee • Nutrition & Health Committee • Stakeholder Engagement Committee Along with realigning the committees, the Federation and CBB Leadership selected the 2021 Committee CoChairs. Every committee has one Co-Chair representing the Federation and one representing the CBB. This group of leaders start their work in December when they meet to work on the new or updated purpose statements for their respective committees and prepare for the February committee meetings in Nashville at the Cattle Industry Convention. Wehrbein also noted, “One of the key elements of successful committees is strong leadership. Working with the CBB officers, we made sure we had the leadership with the necessary experience to carry out the work of the new committees. I am thankful for these folks willing to serve the industry.”
2021 Checkoff Program Committee Leaders
BEEF INDUSTRY TRANSFORM SUPPLY CHAIN PRICE DISCOVERY AND VALUE DISTRIBUTION
CONSUMER TRUST
DOMESTIC MARKETING
PROMOTE AND CAPITALIZE ON THE MULTIPLE ADVANTAGES OF BEEF
GROW CONSUMER TRUST IN BEEF PRODUCTION
DRIVE GROWTH IN BEEF EXPORTS
DRIVE IMPROVEMENT IN THE BUSINESS AND POLITICAL CLIMATE FOR BEEF
Bill McLaren, MO, CBB
Vea Bea Thomas, SD, FED
Katie Cooper, MT, CBB
Andy Bishop, KY, FED
CULTIVATE AND SAFEGUARD INVESTMENT IN BEEF INDUSTRY RESEARCH AND INNOVATION
INTERNATIONAL MARKETING
Jimmy Taylor, OK, CBB
Bill Lickley, ID, FED
PRODUCT INNOVATION & SAFETY
Torrie Lienemann, NE, CBB
Chris Jeffcoat, PA, FED
NUTRITION & HEALTH
Angie Meyer, OK CBB
Russ Uselton, TN, FED
STAKEHOLDER ENGAGEMENT
Brian Malaer, TX, CBB
Travis Maddock, ND, FED
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NEWS Masters of Beef Advocacy Advocate of the Year Nominations
The National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, is seeking nominations for the 4th annual Advocate of the Year award. This award recognizes those who exemplify what it means to be an advocate for the beef community. Nominees must be graduates of the Masters of Beef Advocacy (MBA) program and nominations should include a description of the advocate’s accomplishments in positively representing the beef community.
Specific examples of successful social media posts, community events, engagement with local, state, or national advocacy programs, or other measurable impacts may be included. References are also welcomed. Nominations can be emailed to MBA@ MastersofBeefAdvocacy.com by Friday, Oct. 30. The winner will be awarded a trip to the 2021 Cattle Industry Convention in Nashville, Tenn. to receive recognition during the event. If you are looking to advance your own beef advocacy skills and have your MBA, check out our continuing education lessons. In these in-depth sessions, we explore topics like beef nutrition and sustainability to give you talking points and ways to engage in these conversations. To view our most recent webinar, about consumer insights on plant-based proteins, and all other previous webinars (archived as continuing education lessons), head to the MBA Classroom site mba. beeflearningcenter.org.
New Sustainability Website Articles and “Native” Advertising Are Now Live The National Cattlemen’s Beef Association (NCBA), as a contractor to the Beef Checkoff and manager of the Beef. It’s What’s For Dinner. brand proactively educates people about all things beef—from recipes to cuts to nutrition to sustainability to animal welfare information and a whole lot more. The award-winning BeefItsWhatsForDinner.com website was rebuilt in 2017 to be the Checkoff’s flagship consumer digital hub. This hub acts as the industry’s main clearinghouse tool for beef-related inspiration and education. Thus far, the site has attracted well over 30 million visits. The website is updated constantly with the latest information about all things beef. Recently, several new articles about beef sustainability were updated with the latest research information to remind consumers that beef is nutritious and delicious, and a sustainable food source. Three separate website articles have both been updated and reviewed by sustainability subjectmatter experts at NCBA through Checkoff-funded sustainability research programs: • • •
Paid Digital Advertising and Social Media Results: Underpinning the campaign is a recognition that across all 50 states and a million tastes, there is a universal love of beef sizzling on the grill as the preferred summer holiday grilling protein. National digital and social media advertisements were shared on a variety of platforms such as YouTube and Connected TV. It was also shared through streaming audio platforms, like Spotify, to inspire Americans to grill up their favorite beef meal no matter where they live. The results of the paid digital advertising and social media efforts were: • Reached 117 million consumers • Generated over 338 million impressions, including almost 90 million video views • Achieved over 33 million online radio ad listens • Drove over 1 million website pageviews to UnitedWeSteak.com
sustainability information is embedded into listings of additional types of news stories that consumers will read and find trustworthy. This type of "native” advertising allows positive beef information to reach consumers when they are actively seeking out and reading timely, newsworthy-related content. These efforts will reach an estimated three million consumers by the end of September 2020 and is just one example of how NCBA is constantly looking for efficient and effective ways to debunk common myths about beef.
on the role of feedyards, including animal care, nutrition and environmental stewardship, at this important step in the beef lifecycle. • From Cattle to Beef - An in-depth look at the slaughter process including the humane handling and safety measures in place at today’s beef processing facilities. • Beef. It's What's For Dinner. - A primer on choosing and cooking the right cuts of beef and the important role of beef in a healthful diet. Upon completion of five interactive online lessons, advocates will be equipped with the communication skills and information to be confident in sharing beef stories on social media and in their communities to help others better understand how cattle are raised and how beef belongs as part of healthy, sustainable diets. To enroll today go to mba.beeflearningcenter. org and email us with questions MBA@ MastersOfBeefAdvocacy.com.
United We Steak Campaign Boasts Total Reach of 283+ Million To encourage Americans to make beef their protein of choice this summer grilling season, the National Cattlemen’s Beef Association through the Beef. It’s What’s For Dinner. brand, funded by the Beef Checkoff, launched the “United We Steak” campaign. A new summer grilling campaign showcasing 50 steaks and all 50 states, along with state-specific beef recipes and fun facts to inspire consumers to put beef on their grill. This fully integrated campaign had a total combined reach of more than 283 million through paid advertising, social media, earned media, and influencer outreach.
Beef Sustainability: Environmental, Social & Economic Impact Beef in a Healthy, Sustainable Diet Cattle: The Ultimate Upcyclers
In addition to drawing consumers to these website articles through a variety of advertising efforts, such as paid Google search ads, NCBA also places articles like the ones mentioned above as paid “native” content on popular websites. For example, over the past few months NCBA has seen through monitoring tools and platforms that topics about beef sustainability have started to re-surface in traditional media and social media. So, NCBA updated the articles on BeefItsWhatsForDinner. com, but then also took those exact same articles and placed them on popular news websites like US News and World Report so that the beef
Want to start your advocacy journey? Completing your Masters of Beef Advocacy is a great place to begin. MBA is open to everyone, at no cost to participate. Don’t miss out on this program that has helped train over 15,000 farmers, ranchers, consumers, and other members of the beef community to become strong beef advocates who answer tough questions and educate others on beef and how cattle are raised. The Beef Checkoff-funded MBA course consists of five lessons in beef advocacy, including: • The Beef Community - Context of raising beef from pasture to plate focusing on the community of people involved throughout the beef lifecycle. • Raising Cattle on Grass - An introduction to the first step in the beef lifecycle and the many benefits of raising cattle on our country’s vast grass pasture resources. • Life in the Feedyard - A discussion
Earned Media Results: A variety of earned media stories were also pitched and placed by NCBA to news outlets across the country to share information on how to cook the perfect steak or beef burger on the grill. A satellite media tour was hosted live from the National Cattlemen’s Beef Association Culinary Center, funded by the Beef Checkoff, featuring in-house butcher and culinary expert, Bridget Wasser. Wasser inspired viewers and listeners to grill up a delicious steak. In addition to
the live interviews, several were taped and distributed to additional media outlets throughout the country, including an audio news release. A “United We Steak” ad was also placed on a billboard in Times Square. At 23 stories tall and more than 7,300 square feet, it's one of the largest digital signs in the world. The “United We Steak” ad appeared five times during morning and evening rush hours. • Satellite Media Tour º Interview Airings: 787 º Reach: 22,337,871 • Audio News Release º Airings: 3,095 º Reach: 4,580,366 • Multimedia News Release º Pickup: 115 º Reach: 123,943,378 • Survey-Led Story º Pickup: 96 º Story Views: 8.76 million Influencer Results: NCBA also worked with bloggers around the country to have them share tips on their own social media platforms, such as Facebook, Instagram, and Pinterest, on how to make the perfect steak meal. A variety of popular food, health and chef influencers shared their own beef inspiration on their social media platforms, like Pizzazzerie and Vindulge, which had a total reach of nearly two million. Working with a well-known group of chef influencers through ChefsFeed, a variety of beef grilling recipes were created and shared through the chefs’ Instagram and ChefsFeed social media platforms. On August 13, a virtual grilling demo took place with the FeedFeed, a cooking and baking influencer account. This virtual demo included one of their editors and an influencer grilling a beef dish and sharing grilling tips and tricks with viewers. A breakdown of the influencer results were as follows: • Food & Health Influencer Social Media Posts º Reach: 1,895,824 º Engagement: 309,619 • Chef Social Media Posts º Reach: 251,011 º Engagement: 3,802 • Instagram Live Grilling Event º Reach: 5,700,000 º Engagement: 85,200
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NCBA Announces Dynamic Line Up of Speakers for Virtual Stockmanship & Stewardship Event Diagnostics. A robust business track will be offered that will cover everything from risk management and cattle marketing to how consumers have shifted their buying habits during the pandemic and beyond. With just one week past the 2020 Presidential Election, NCBA’s policy team will provide an informative election reaction. In this session, the policy team will discuss what issues the U.S. cattle and beef industry will be tackling in Washington, D.C. Finally, day one of the event will conclude with a keynote presentation from Frank Mitloehner, PhD, University of California - Davis on recent industry happenings on the topic of Sustainability. On November 12 attendees will have a chance to engage with another set of valuable sessions. The sessions will cover everything from the value of training producers and their employees on cattle welfare to panel discussions on genetic value and current traceability efforts presented by Brandon Depenbusch of U.S. CattleTrace. The event will close with a keynote from the experts at CattleFax sharing important information on the economic state of the industry, and what it might look like in the days ahead.
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The National Cattlemen’s Beef Association is announcing an exciting slate of speakers and topics for their renowned Stockmanship and Stewardship program. With the COVID-19 pandemic causing industry meetings to shift how they meet and learn, the Stockmanshp and Stewardship program will be going virtual this fall. This shift to an online platform allows for a high-quality experience of one of NCBA’s educational events for all attendees, even if they are attending from the comfort of their home or office. On November 11-12 virtual attendees will have the chance to engage, in a number of sessions that address current and future issues for the cattle industry. Both days will allow virtual attendees to still have the opportunity to participate in the valuable low-stress cattle handling demonstrations the Stockmanship and Stewardship program has become known for. Day one of the event will have an interesting lineup of educational program tracks including sessions that take an in-depth look at Beef Quality Assurance (BQA) topics. Jason Nickell, DVM, PhD, DACVPM, Merck Animal Health will present on Individual Management Technologies and
Attendees will have the ability to interact with all speakers and clinicians on both days to get their questions answered and discuss how to apply what they have learned on their own operations. Registration for this one-of-a-kind virtual event opens on October 1 and is free of charge thanks to continued support from Merck Animal Health and the Checkoff-funded Beef Quality Assurance program. “Our sponsorship of the Stockmanship & Stewardship program aligns with our goal to provide customers with valuable information on proper animal care and handling,” says Kevin Mobley, executive director, Cattle Sales and Marketing for Merck Animal Health. “While we are not able to connect live at this time, this virtual event will include helpful tips and advice that supports better herd health.” The first 200 registrants will receive a complimentary event packet and gift courtesy of Merck Animal Health. Additionally, all participants will be eligible for a discount coupon to attend an in-person Stockmanship and Stewardship Regional Event in 2021 to be held in Ontario, Ore., Elko, Nev., Durango, Colo., Danville, Ind., and Bowling Green, Ky. For more information and to register visit, www. StockmanshipandStewardship.org.
NO ! W OPE N
VIRTUAL EXPERIENCE NOVEMBER 11-12, 2020
This fall the Stockmanship and Stewardship program will bring cattlemen and women an entirely new experience with the high quality content and educational sessions the industry has come to expect from our world class stockmanship clinicians.
EDUCATION
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For more information and to register visit
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Teaming up with your Veterinarian Julia Herman, DVM, MS Beef Cattle Specialist Veterinarian The fall run is here, and several cattle operations will be enlisting their veterinarians for many duties including pregnancy diagnosis, implementing vaccination protocols, and aiding culling decisions. These management factors play a role in the success of the farm, herd, and business. As external factors (such as drought) continue to add stress to cattle operations, marketing challenges, and human health factors, it is important to realize the other services that veterinarians can provide. The value of the veterinarianclient-patient relationship (VCPR) to the cattle producer and their cattle should not be overlooked. A VCPR is legally defined by State and Federal statutes as well as by the American Veterinary Medical Association. An established VCPR allows the veterinarian to diagnose and treat animals, prescribe medications, and issue Certificates of Veterinary Inspection (CVIs) or health certificates. Because the VCPR must be renewed annually, a yearly consultation with your veterinarian is recommended where multiple facets of the operation are evaluated, goals for the next year are set, and potential interventions are considered. This meeting can provide in-depth understanding of the operation’s capabilities and limitations which can help shape future recommendations. Contributions from veterinarians span a breadth of topics including, but not limited to, those discussed below. Cow/calf Management Developing annual vaccination and parasiticide considerations at specific times throughout a bovine’s life is routine for most veterinarians. In this unforgettable year, nutrition considerations and range management options could be discussed with your veterinarian to maximize feed and cattle efficiency. Veterinarians may assist with mineral programs, toxicology inquiries, and sampling of feed or water samples to best utilize your resources. Opportunities to adjust your breeding, weaning, or preconditioning program could be discussed with the veterinary team. Biosecurity, Disease Surveillance, and Outbreak Investigations Veterinarians are trained to evaluate individual animals within a herd system and provide integrative management plans to prevent diseases or problems from occurring in the future. For instance, in a scours outbreak, your veterinarian will be able to evaluate and treat the sick calf, take appropriate samples, and
provide recommendations in real time. Next steps would be submitting samples and interpreting results to make management decisions to protect the other calves in the herd, such as completing a necropsy for a better diagnosis, changing pastures to reduce pathogen load, or evaluating newborn calf care and colostrum management. Preventing germs from entering your herd or identifying those pathogens requires some planning and preparation. The Beef Quality Assurance (BQA) program, a contractor to the Beef Checkoff, is currently developing a daily biosecurity plan template that would be valuable for the producer and veterinarian to complete together as a team. Understanding current risks and preventing future risks is essential to protecting the herd, and it helps to have an outside set of eyes evaluating the operation. Record Keeping The value of good record keeping goes beyond knowing if a cow successfully raised a calf every year. With herd analytics, veterinarians can help you improve your herd’s conception, pregnancy, and even stocking rates. As discussed in the BQA program, record keeping also helps recognize withdrawal times from animal health products and prevent residues from showing up in the food supply. Having an objective view of your operation could provide insight to potential improvements. Self-assessment resources for the cow/calf, stocker, and feedyard sectors can be found at BQA.org and would be valuable templates for your veterinarian to critically evaluate the operation. This could include collaborating to create treatment or training protocols to focus on continuous improvement. Emergency Services Having support from your veterinarian in case of an emergency is vital to the health and welfare of your animals. Ideally, the relationship with your veterinarian does not begin through an emergency appointment at midnight. Once that relationship is developed, you now have a resource available for those moments when professional expertise is needed. Each operation is unique and finding a veterinary practice that supports the needs of your operation is essential. Veterinarians are one branch of your operation’s resource team and can help with shortterm and long-term goals towards profit and sustainability. Building a comprehensive management plan for your herd with your veterinarian will help you and your operation adapt to unforeseen obstacles.
PRODUCER EDUCATION
Cattlemen’s WEBINAR SERIES
PROTEIN & ENERGY SUPPLEMENTATION OCTOBER 8 - 7:00 PM CST Protein Supplementation for Your Herd Jason Smith, PhD | Texas A&M University Jeff Lehmkuhler, PhD | University of Kentucky
OCTOBER 20 - 7:00 PM CST Energy Supplementation for Your Herd Lawton Stewart, PhD | University of Georgia Dave Lalman, PhD | Oklahoma State University
OCTOBER 27 - 7:00 PM CST How Does Cow Nutrition Affect Calf Performance? Amanda Blair, PhD | South Dakota State University Janna Block, PhD | North Dakota State University
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