N A T I O N A L CATTLEMEN
The trusted leader and definitive voice of the beef industry June 2020 • Vol. 36, No. 8 • NCBA.org
Strategies for Parasite Control In Your Cattle Herd By Julia Herman, DVM, MS
NATIONAL CATTLEMEN’S BEEF ASSOCIATION 9110 E. NICHOLS AVENUE, SUITE 300 CENTENNIAL, CO 80112
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Beef Cattle Specialist Veterinarian, NCBA, a contractor to the Beef Checkoff Cattle across the country are reaping the benefits of spring grass growth – fresh vitamins and minerals, quality nutrition, places to explore and travel, and much more. As the transition into warmer months brings such growth, it also encourages farmers and ranchers to broaden strategies for keeping their animals healthy. Parasites, both external and internal, are a challenge that can be detrimental to animal comfort and productivity. While 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. Parasite 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 and extension agent will help tailor a strategy to the specific operation, using multiple modalities to protect your herd. Coordinating with neighboring ranches on parasite control would also improve overall success of the program. Common external parasites include horn flies, face flies, ticks, lice, and others. 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). 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 midsummer. 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. 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. Back rubbers, oilers, and dust bags could also be used depending on the facility setup. Choosing the correct product ingredient for the intended parasite is critically important to the success of the control program. Preventing resistance in the animal health realm can apply to both antimicrobial and antiparasitic products. Anthelmintic (or dewormer) resistance has become a real threat to prevention and control of internal parasites (i.e., worms) in livestock as decades of overuse have decreased the utility of certain classes of anthelmintics. Because of this, treatment protocols have become more complex than giving a single product and necessitate veterinary consultation. As discussed in the Checkoff-funded Beef Quality Assurance Program, 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. Beyond anthelmintics, which can be very effective when used properly, alternative methods to managing internal parasites can be effective adjunct strategies. Collecting manure samples to conduct fecal egg counts with your local veterinary clinic or diagnostic laboratory aids in monitoring parasite loads in an individual animal or herd. This can guide targeted deworming which requires some labor input
and observation of each animal but can be an effective alternative to deworming the entire herd. The focus is to selectively treat susceptible animals such as the young, stressed, or immunocompromised to remove most of the source of pasture contamination but does not risk increasing anthelmintic resistance in that worm population. This technique is used extensively in small ruminants where resistance is more prevalent. By targeting which animals get treated, it allows for a refugia to form, or a population of susceptible worms to persist in the population and remain susceptible to anthelmintic treatment in the future should it need to occur. A fecal egg count reduction test (FECRT) is the most effective method of evaluating anthelmintic effectiveness in a herd or flock and can be done in collaboration with a veterinarian. Grazing management through rotational grazing is a useful tool to improve pasture health and provide solid nutrition which improves overall animal health. More overgrazed pastures increase the risk of parasite problems since larvae from parasite eggs will contaminate overgrazed pasture and then are ingested by susceptible animals. The significance of considering the cattle’s entire environment – from optimizing nutrition, having a solid herd health program, using low stress handling, etc. to provide the foundation for a strong immune system and healthy cattle – cannot be emphasized enough. Using a multimodal approach to address parasite control is necessary to maximize benefit to both the cattle and the operation.
MARKET SNAPSHOT WEEK ENDING 5/22/2020 (prices vs. year ago) $111.40
CHOICE BOXED BEEF $459.04
OMAHA CASH CORN $2.99
5%
108%
20%
SOUTH CENTRAL 500-600 LB. STEERS $153.89
LIVE FED STEERS
6% $164.39
$116.65
$220.23
$3.72
IN THIS ISSUE Leadership Comments
3
Federation News
8
Governance 9 Market Matters
14 & 15
Checkoff 18
It’s the height of the horn fly season. Don’t let your cattle suffer through the heat. Get Altosid® IGR into your feed supplement now. DAYS 7¢ per animal per day, cattle treated with ¢ to OF A recent study has shown that at a cost of 4COST ON ALTOSID® IGR ALTOSID IGR ® Altosid IGR have the potential for a significant return on investment because of higher weight gains.* PER ANIMAL Starting Altosid® IGR in your feed supplement and continuing it until 30 days after the first frost gives your herd a better chance of providing those returns. Do something about horn flies. Add Altosid® IGR to your feed supplement today. TREATED AVERAGE WEIGHT LBS. To learn more, visit AltosidIGR.com. INCREASE ®
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30 DAYS AFTER THE FIRST FROST
DAYS
WEIGHT GAINS
X
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NATIONAL CATTLEMEN
NCBA Continues Fighting For All Producers, Helps Announce Relief At White House By Marty Smith, NCBA President May was another very busy month for NCBA, as we continued to lead the fight for America’s cattle producers in the wake of the coronavirus pandemic. As I wrote in this space when the pandemic first hit our shores more than two months ago, we are all being impacted by this pandemic. We have all been concerned for the health and wellbeing of our families — and for the economic wellbeing of our operations across the beef supply chain. We at NCBA have been and continue to be concerned with how we can help producers get the relief they need and to continue to work together as productively as possible throughout these tough times. We are all looking for solutions and I want you to know that we hear you and we take the viewpoints of our members very seriously. Take the establishment of the new Coronavirus Food Assistance Program, or CFAP, for example. As you know, our industry has a long tradition of not advocating
for direct benefits from the federal government. But in the immediate aftermath of the pandemic’s arrival, market volatility hit a lot of cattle producers very, very hard. We heard from a lot of our members, who told us loud and clear that this was an unprecedented situation and that a policy change was necessary. We listened to our members, and we got right to work. Our public policy team in Washington, D.C. — funded by the voluntary dues-paying members of NCBA — immediately brought the issue to the attention of lawmakers on Capitol Hill, and within days we had secured authorization and $19 billion in funding for direct assistance for agricultural producers in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Of course, that wasn’t the end of the road, so our team never stopped working. After final Congressional approval of the CARES Act, it was the U.S. Department of Agriculture’s job to quickly set up the CFAP system and to figure out how to distribute the relief funds — and to whom. Once again, our team in D.C. worked with USDA officials to make sure that the urgent needs of America’s cattle producers were
known to and understood by the officials crafting the program. NCBA’s hard work and influence on pandemic relief was apparent when we were one of only two ag trade groups to be invited to the White House on May 19 to be on hand and speak when President Trump and USDA Secretary Sonny Perdue announced details of the CFAP system. Representing cattle producers at the White House was a true honor, but again this wasn’t the end of the road. Much more needs to be done to address the needs facing family cow-calf producers and stockers in the CFAP details that have been released so far. That’s why we’re going to continue pushing on Capitol Hill for additional resources for cowcalf producers, backgrounders, and all other segments of our industry who may not sufficiently benefit from the program in its current form. CFAP is just one of the many issues we worked on during the month of May. We continue to work to bring permanent, significant, and fair reforms to cattle markets, ensure that processing facilities and truckers are able to continue moving the beef supply forward to
consumers, and to promote beef as a delicious and nutritious protein with consumers. We still all have a long road ahead of us as we begin to recover from the damage done by this pandemic, and as we do, I can promise you two things. We will always listen to our hard-working dues-paying members. And we will never stop fighting hard for our members. You may not agree with every single position we take on these difficult issues, and I understand and respect that. But you will not find a harder-working team that is having a bigger impact on behalf of American cattle producers than you will at NCBA. As I’ve said before, it’s very easy to sit on the sidelines complaining or throwing stones. Leading and making a real difference is much harder, but it’s the road we choose. If you, your friends, or family members would like to join us in this battle — or to make your voices heard in our policymaking process — we welcome you. You can join us at https://www. ncba.org/join.aspx
The Unintended Consequences of a Mandate By Colin Woodall, NCBA CEO
THE OFFICIAL PUBLICATION OF NCBA 2020 NCBA Leadership: President President-elect Vice President Treasurer Federation Division Chair Interim Federation Division Vice-Chair Policy Division Chair Policy Division Vice-Chair Immediate Past President Chief Executive Officer Senior Editor Associate Editor
Marty Smith Jerry Bohn Don Schiefelbein Joe Guild Buck Wehrbein Clay Burtrum Todd Wilkinson Mark Eisele Jennifer Houston Colin Woodall John Robinson Brittany Schaneman
Contributing Writers Walt Barnhart Ed Frank Steven Johnson Creative Director Don Waite Graphic Designer Dancinee Jennings Copy Editor Judy Van de Mark For ad sales, contact Jill DeLucero or Nicole Bechtel at 303-850-3465. Contact NCBA: 9110 E. Nichols Ave., Suite 300, Centennial, CO 80112 (303-694-0305); Washington D.C.: 1275 Pennsylvania Ave. N.W., Suite 801, Washington, D.C. 20004 (202-347-0228). National Cattlemen’s Beef Association reserves the right to refuse advertising in any of its publications. National Cattlemen’s Beef Association does not accept political advertising in any of its publications. National Cattlemen’s Beef Association does not accept any advertising promoting third-party lawsuits that have not been endorsed by the board of directors. ©2020 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or part, without the prior written consent of the National Cattlemen’s Beef Association.
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The COVID-19 crisis has highlighted the challenges we face in the cattle markets and elevated conversations about solutions to the national stage. NCBA leadership understands that these conversations, and any future solutions, will have a long-term effect on the livelihoods of our members and the future of their farms, ranches and feedlots. That’s why we are working hard to make sure we promote the right solutions, to protect the industry from unintended consequences. There is a great deal of sensitivity and emotions surrounding Senator Grassley’s bill, and we know it is particularly difficult because NCBA policy differs from the policies in place in some states. The NCBA Cattle Marketing Working Group is working diligently to address the need for better price discovery, through our grassroots policy process. We are committed to working through these issues and allowing everyone who wants a say the opportunity to weigh in. We know we won’t always agree, but we want to make sure the industry engages in the conversation before there is a decision about how to best move ahead. The cattle industry is very complex and not all cattle are the same. For years we produced “commodity cattle,” the market for which is based on the production of pounds rather than quality. These cattle come in all colors and sizes, some with horns, some without, and there is little reason to focus on the characteristics consumers value because producers are paid by live animal weight, not carcass quality. In fact, for most of the cattle industry’s history, quality was not a factor in the decisions being made by cattle producers. For instance, from 1980 to about 2000 the industry operated on a cash basis. During this period, pounds were the primary factor informing production decisions. The prevailing attitude was “this is the beef we’re producing, so just eat it.” But we reached a point in time when the consumer didn’t eat it. Demand through the 1980s and early 1990s plummeted. During this time, beef demand was cut in half and the industry lost 400,000 producers because no one was making money. To find profit opportunities, commodity producers must find ways to differentiate
themselves. That’s why coffee producers from every region in the world work to distinguish their beans and that’s why beef producers have worked toward branding and alliance programs. This need became very clear for cattle feeders, stocker operators, and cow-calf producers who were in the declining demand market from 1980-2000. In the mid-90s, leaders in the industry began to take note and make the changes that led to the system we have today. When we started listening to the consumer, we found out they wanted better quality, more consistent beef with less external fat. In response, cattle producers built a new system of value-added programs to reward the cattle producers who were providing what consumers desired. The beef industry began to focus on improving the genetic qualities of our cattle. The checkoff-funded Beef Quality Assurance program was created to help resolve some quality issues. The industry conducted the first-ever National Beef Quality Audit. We focused on improving our national cattle herd, and as a result, we improved the quality of our beef and consumers began to respond to higher quality and a little advertising campaign known as “Beef. It’s What’s for Dinner.” turned the tide for our industry. The improvements made by beef producers cost money. The industry made investments in better bulls, better feeding programs, the increased use of preventative vaccines, weaning programs, etc., so the industry needed to find a way to both incentivize the adoption of these practices and pay the producers who implemented them and allow them to manage the risk these increased input costs created. Every segment of the business worked to put Alternative Marketing Arrangements in place to help manage risk and ensure they received payment for these increased costs. These alternatives to the cash market came in the form of rewards or premiums for carcass and yield grade improvements being made by cow-calf and feedlot operations. The cattle industry saw a major rebound in beef demand in the U.S. and globally as we became focused on delivering the highest quality product in the history of the industry. If this clear signal is lost or is no longer clear because “all cattle are equal” in a cashbased system, it’s just a matter of time before the product quality starts to slip and consumer demand does too. The popularity of marketing cattle through alternative marketing
agreements means fewer cattle are being traded on the cash or spot market, the trading price of which is generally used to set the base for the price of fed cattle in any given week. With fewer cattle trading, there is concern that the base cash price is not a truly representative value for the cattle trading hands in any given week. In addition, the cattle trading in the cash market tend to be highly regionalized, with larger quantities of cattle trading in the cash market in the Upper Midwest, in states like Iowa, Illinois, and portions of Nebraska. In states like Texas, Oklahoma and Kansas, more cattle are traded through alternative marketing agreements, resulting in only about 20 percent of the cattle trading hands in any given week in the cash or spot markets. The result is a concern that fed cattle prices are not transparent or reflective of the actual value of cattle in any given week because the average volume of cattle trading hands continues to decline. That means the market is challenged to find new ways to ensure producers can price their cattle appropriately. One of the options on the table to increase price transparency is to mandate that packers purchase 50 percent of each plant’s harvest on the cash market each week. We are concerned that an unintended consequence is that feedlots and those who feed cattle would see their ability to participate in grid or formula trade reduced by government mandate, to force cattle out of grid and formula production and back into the cash market. That in turn will make premiums for quality production less attractive as once again producers return to a focus on production of pounds over quality. In general, NCBA members and state affiliates have passed several policies for the association which oppose government interference in the free market economy, believing that cattle producers and the industry should determine how cattle are marketed. For reference, the specific policies that NCBA members have put in place which lead the association to oppose the 50 percent legislation, are included here. AFP 1.1 – NCBA Agricultural Policy Statement This statement will guide NCBA’s actions on behalf of the cattle industry in influencing the government relating to agriculture. Under this statement, NCBA’s priorities are to: 2. Minimize direct federal involvement in agriculture.
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NATIONAL CATTLEMEN
The Unintended Consequences of a Mandate 3. Preserve the right of individual choice in the management of contracts and marketing. 7. Oppose farm policy which favors one producer or commodity over another. Marketing Policy National agricultural policy should be oriented to a free, private enterprise, competitive market system. Farm policy should be discouraged which: 1. Guarantees profit. 2. Restricts the operation of the competitive marketplace. 3. Does not allow for both parties’ consent in writing to use arbitration. Private enterprise alternatives in marketing and risk management should be developed and encouraged as the preferred alternative to government programming M 1.3 - Value-Based Marketing WHEREAS, there has been substantial interest in moving towards a value-based marketing system and strategic alliances, THEREFORE BE IT RESOLVED, NCBA opposes any regulations, legislation, or policies that limit methods of marketing cattle. M 1.10 - Fed Cattle Price Discovery THEREFORE BE IT RESOLVED, NCBA pursues market-driven initiatives that encourage and increase frequent and transparent negotiated trade to a regionally-appropriate level in all major cattle feeding regions. Here are other policies that further reference our stance on mandates: AFP 6.3 – Labeling of Safe Product THEREFORE BE IT RESOLVED, NCBA opposes any government mandated attempt to label livestock and animal products and their progeny in order to differentiate products because of use of technology that has been scientifically proven safe. AFP 6.6 – Genetically Engineered or Modified Organisms Labeling THEREFORE BE IT RESOLVED, NCBA opposes the government mandated labeling of meat products as genetically engineered or
modified solely because the livestock consumed plants, feed, or nutrients derived from genetically engineered or modified plants. CH 1.5 – Livestock Management & Animal Health and Well-Being Standards THEREFORE BE IT RESOLVED, NCBA support additional research to identify and test alternative cattle production practices that maintain the highest standards for animal health and well-being without resulting in additional costs to producers, losses in production, or mandates of specific animal handling practices. It’s important to understand that the policies listed above are set by NCBA’s state affiliates who bring these ideas forward from county and state meetings. They are debated and approved by NCBA and state affiliate members, approved by NCBA’s Board of Directors and ratified by a vote of the entire NCBA membership. These policies are written, debated, and approved by cattlemen and cattlewomen. These policies are NOT the policies of packers or staff members. It’s no secret that NCBA has long opposed government interference in the markets and the policies included above are the precise reasons we oppose that interference. For months, NCBA has had a working group examining the market issues we face. The working group includes members from every segment of the industry and those individuals have been examining calls for cash trade mandates but the group has not expressed support for mandates like the one proposed. The group’s members understand that government mandates have unintended consequences. The initial conversations about a minimum mandated cash trade centered on research conducted by Dr. Steve Koontz, who was commissioned to examine the percentage of cash market we need to determine the value of our cattle, a process known as “price discovery.” Dr. Koontz determined that different regions require a different percentage of cash trade to reach the point of true price discovery and it is highly regionalized, due to how the cattle
industry functions and the difference in cattle and feeding operations in various parts of the country. Dr. Koontz determined some regions like Iowa and northeastern Nebraska need 50 percent cash market trade to have true price discovery, while regions like the southern Plains, feedlots in states like Kansas and Texas, require just 10 percent cash trade to have true price discovery. In any case, Dr. Koontz, in a letter to NCBA, stated that the work he conducted was not meant to be carried forward in the form of a government mandate to require any certain cash trade percentage. In that letter, he also pointed out that grid and formula trade are also a more efficient manner of trading cattle than the more volatile cash market and driving backward toward more cash trade will create inefficiencies which “would cost the cattle and beef industry millions and possibly billions of dollars per year.” The bottom line is that a blanket approach like the one proposed by Senator Grassley does not reflect the true need of the cattle market on a national level. The industry has varying needs depending on where cattlemen and cattlewomen are located, and solutions should be based on that fact, not a national federal mandate. Congress and USDA rarely get things like this right, and unintended consequences, such as a feedlot which currently operates on grid pricing having to take a lower price because their cattle were forced into the cash market, would then require NCBA and the cattle industry to spend years to repeal the law. We recognize that there are state affiliate associations which have policy which advocates for support of a 50 percent cash trade mandate, and we respect the policy book of those states. However, the policies that were put in place for NCBA by our members have directed us to take a different route to solve the issues facing the cattle business.
President Talks Imports During White House Visit
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 IMI Global, Inc. www.imiglobal.com John Deere www.deere.com 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 Zoetis Animal Health www.zoetis.com
ALLIED INDUSTRY COUNCIL Allflex Livestock Intelligence Animal Health International CHR HANSEN Elanco Animal Health Farm Credit Council Huvepharma, Inc.
Lallemand Animal Nutrition Massey Ferguson Norbrook, Inc. Rabo AgriFinance RAM Trucks Roto-Mix
ALLIED INDUSTRY PARTNERS
During a recent White House visit by NCBA President Marty Smith, President Donald Trump delivered remarks about beef imports and the need to re-evaluate imports from some countries. NCBA CEO Colin Woodall requested that the examination begin with USDA’s plan to import fresh beef from Brazil and recent shipments from Namibia. While it is true that the United States currently imports beef from 18 countries, 83 percent of imported product comes from just four nations - Canada, Mexico, Australia, and New Zealand. The vast majority (72 percent) of beef imports, even from those four nations, consists of lean trimming used to produce ground beef, which enjoys significant consumer demand in the United States. “Today’s comment by President Donald Trump demonstrates the complexity of the U.S. beef business. Live cattle imports to the United States only come from Canada and Mexico and will continue to do so under the terms of the President’s newly negotiated USMCA. America has not imported live cattle from other nations for several years,” said Woodall. “However, if President Trump is serious about reconsidering import decisions, NCBA and its members
strongly request the White House to take another look at his decision to allow fresh beef imports from nations like Brazil, where there continue to be concerns with footand-mouth disease.” Woodall acknowledged the complexities of the global beef supply chain, and pointed out that the U.S. relies upon safe and reliable international trading partners, both as a destination for the undervalued cuts we produce here, such as hearts, tongues, and livers, and for importation of lean trim for ground beef production to meet strong consumer demand. He also noted that only about 12 percent of beef consumed in the U.S. is imported product, but also that any imported product must meet the
U.S. standards for safety before it is allowed into the United States. “President Trump has shown his willingness to negotiate difficult trade deals and take on tough trading partners, and NCBA thanks him for the attention he has given to beef. We encourage him to reexamine the decision to reopen the market to imports from Brazil, Namibia, and any other nation where there are food safety or animal health concerns that could impact American consumers or cattle producers,” said Woodall. “A re-evaluation of those imports can accomplish his goals of protecting both American cattle producers and American consumer confidence in our own beef supply chain.”
44 Farms ADM Animal Nutrition, Inc. 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 BFGOODRICH® Tires Bimeda BioZyme Cargill Animal Nutrition Case IH Certified Hereford Beef CME Group DATAMARS Livestock 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 Insure My Forage 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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NATIONAL CATTLEMEN
Region lll Report By Clint Berry, NCBA Region lll Vice President NCBA's Region III includes the states of Minnesota, Wisconsin, Illinois, Iowa and Missouri. Dominated by commercial cow-calf and farmer feeders, many of which are "underthe-roof" operations. This region is home to approximately 3000 members, equating to around 12% of the total NCBA membership, raising between 7-8 million head of cattle. 2020 has hit rural Americans squarely on the chin as the economic impacts of Covid-19 has tried to cripple our great American economy. It began with consumers hoarding protein from retail shelves, as the food service / restaurant sectors were all but shut down. Creating beef shortages in the meat case, something that the two most recent adult generations had never experienced in their lives. Then, as the virus worked its way through our population, the humanitarian effects were realized as some packing plants went idle, or at a minimum cut shifts and processing efficiencies, crashing the value of fat cattle, as their workforce was faced with the challenge of keeping themselves healthy both at work and at home. Reports shared for the third week of April, showed kills down over 30 percent from 2019, equating to cattle being postponed and feeders unable to earn bids from packers, as the demand for cattle slowed, all while the demand for beef was spiking. Like all of our other regions, the states within Region III have prioritized the Covid-19 crisis, providing information and resources pertaining to human health to their in-state industry, while cooperating with NCBA to work nationally on the virus' impacts to rural America. Balancing the risk to human life and the desperate need to get America back working again as shelterat-home orders are lifted.
The Coronavirus might be the dominate issue, but it is not the only issue facing cattlemen and true to their history, Region III has taken the lead on other challenges facing our industry. All five states of Region III (23 state cattlemen's associations in total) signed a joint letter to U.S. Attorney General Barr on April 17th, requesting a formal investigation by the Department of Justice into the recent cattle markets. The letter states, "We understand and acknowledge there is a pending USDA investigation. However, as our industry looks for clarity of business function moving forward, we believe the DOJ would be the appropriate agency to open an investigation and also support USDA in its investigation allowing this process to be concluded in a timely manner." This followed NCBA's successful request on April 8 to President Donald Trump stating, "We ask that USDA work closely with the Department of Justice throughout this process, conclude this investigation quickly, and release the findings to the industry as soon as possible." Less than six hours after receiving the letter, Secretary of Agriculture Sonny Perdue responded by saying, "...the USDA would be extending the investigation". Iowa - At the February Cattle Industry Convention in San Antonio, Iowa lead the grass-roots push for change through the NCBA committee structure on finding ways to combat excessive market volatility. One of their proposals on increasing negotiated trade was sent to a working group which is currently meeting on a regular basis, including a conference call with Sec. Perdue (April 10th) and a recent call with the CME (April 17th). This issue is one of the dominate challenges facing our industry, as the impact of true price
lll
discovery is being lost as the nation's volume of negotiated trade continues to diminish. With the support of the entire region, as well as multiple other state affiliates, Region III continues working for solutions to be brought before the committee and the membership at large. Missouri - Providing heavy support for, and represented on the above mentioned working group on market volatility, MCA has also identified protecting private property rights in regards to eminent domain issues and tort reform as two major priorities for 2020 and beyond. Their annual Steak Fry & PAC Auction is scheduled for June 13th in Sedalia. Illinois - Home to perhaps the region's most troublesome political environment, IBA continues to be resilient in defending property rights and enhancing a positive business environment. June 11-13 IBA is hosting their annual summer conference and their Checkoff division continues
to promote the benefits of BEEF to the large urban population in and surrounding the state. Wisconsin - The dairy state continues to showcase how the marriage of beef and dairy production are vital for cattlemen to leverage their voices for the industry. This revitalized affiliate is on the move in a political swing state with a very large population. WCA annual summer tour is set for June 27th covering the south central part of the state. Minnesota - In April, the membership welcomed Allison VanDerWal as the new Executive Director and BQA Coordinator to this highly contested, political swing state with a large population. The MSCA continues to advance their issues including being the cornerstone for efforts on delisting the Gray Wolf from the Endangered Species Act. On July 14th, they will be hosting their annual summer tour based out of Worthington.
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Digital Field Guide is Handy Reference with Core BQA Practices A more condensed version of the Beef Quality Assurance Manual is now available to BQA followers in digital or print form. The BQA Field Guide is a more compact version of the manual that can be used as a convenient reference piece. It covers the key points of the BQA program without program background and other information that may not be useful in the course of day-to-day operations. The BQA Program is managed by the producer education team at NCBA, a contractor to the Beef Checkoff. The digital Field Guide has ten chapters that cover everything from behavior and handling to transportation to emergency action planning. It allows producers to assess their management decisions in a way that recognizes a responsibility to the animals, consumers, the environment and the larger beef industry. The digital Field Guide contains embedded links and videos that allow producers to interact with various elements of BQA. The digital guide, the print version and the larger, more in-depth Manual represent the foundation for training and certification programs offered nationally and by many states. “We’re committed to creating tools for producers that allow them to follow practices that reflect the most responsible cattle industry knowledge today,” says Kim Brackett, an Idaho cattle producer and chair of the BQA Advisory Group. “This new BQA Field Guide will be useful for immediately accessing this kind of helpful information while working with cattle.” The BQA Program is a cooperative effort between beef producers, veterinarians, nutritionists, extension staff and
other professionals including veterinary medical associations and allied industries. Its goal is to assure consumers that all cattle shipped from a beef production unit are healthy, wholesome, and safe; their management has met FDA, USDA and EPA standards; they meet quality requirements throughout the production system; and they are produced using animal well-being, worker safety, and environmentallysound production practices. BQA recommends the use of common sense, appropriate management skills and accepted scientific knowledge to deliver the highest levels of animal stewardship and the production of quality, healthy and safe products. Each aspect of the program is economically logical and part of good business management. Both the digital and print versions of the BQA Field Guide are now available. To find out more about them or the BQA Manual, or to become BQA certified, visit BQA.org.
NATIONAL CATTLEMEN 7
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Advocacy for Education Lands South Dakota Dairy 2020 BQA - FARM Dairy Award For modern dairy farmers, the amount of technology that goes into daily operations isn’t much of a surprise anymore. But many consumers may not realize that the industry is long past using a bucket and pail as the main tools in a milking parlor. This is one of the reasons Lynn Boadwine, owner of Boadwine Farms in Baltic, S.D., and Heidi Zwinger, herd manager at the farm, are invested in sharing the stories of the dairy and beef industry to consumers. The dairy farm opens its facilities to the public dozens of times each year through open houses, tours and school programs. “We want people to come out and see where the cows live, to let people come inside and see what’s going on,” Zwinger said. Boadwine Farms’ dedication to consumer advocacy, combined with its educational programs and commitment to excellence in its facilities, has earned the company the 2020 Beef Quality Assurance (BQA) – Farmers Assuring Responsible Management (FARM) Dairy Award. The farm was homesteaded in 1874 by Boadwine’s great grandparents. It has grown with each generation through
the family’s passion for dairy and beef, openness to new technologies and techniques, and providing continual training and skill development opportunities for its employees. As of the late 1980s, the farm had just 40 milking cows in addition to hogs. By 2000, the farm had grown to 600 milking cows. And now, more than 2,000 Holstein dairy cows are cared for at the farm, with 2,500 acres planted with rotating crops of corn, alfalfa, rye grass and forage sorghum to provide feed. The farm also employs 40 Boadwine Farm team members, dedicated to the operation and care of the animals. Cows are milked three times each day in a double 30 parallel parlor and housed in barns equipped with ventilation and sprinkler systems. Electronic RFID tags on each cow allow the farm’s computer system to track daily milk production. The milking parlor also features lights at udder level that create a bright, cheerful atmosphere for both employees and guests, as well as allow employees to better inspect cows for disease and hygiene during milking. The farm’s use of technology not only benefits cow comfort but increases employee efficiency and reduces its impact on the environment. Boadwine Farms also credits using the BQA and FARM programs for standardizing animal care practices and increasing the farm’s sustainability — both programs built on many of the farm’s existing protocols. “BQA was easy to implement because we were following a lot of the guidelines already,” Zwinger said. BQA guidelines combine common sense Heidi Zwinger, Herd Manager, Boadwine Farms husbandry techniques
America’s Original
About Beef Quality Assurance Beef Quality Assurance (BQA) is a nationally coordinated, state implemented program funded by the Beef Checkoff that provides U.S. beef producers guidelines and certification drawn from common sense husbandry techniques and accepted scientific knowledge on how to raise cattle under optimum management and environmental conditions. BQA reflects a positive public image and instills consumer confidence in the beef industry. When producers implement the best management practices of a BQA program, they assure their cattle are the best they can be. For more information on BQA, visit www.bqa.org.
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Additionally, for three years the dairy has brought pregnant cows to the birthing area at the Sioux Empire Fair’s annual Pipestone Discovery Barn to show thousands of fair attendees live calf births and answer questions about livestock care and food production. The farm also leases calves to local 4-H youth to give them experience showing and working with cattle. Through all of Boadwine Farms’ activities, everything circles back to one focus — the care and development of their herd. “Cows are still my ‘why,’” said Zwinger. “Every day, there’s room for improvement. Five years from now, I want to see us better than we are today.” The BQA – FARM Dairy Award is funded in part by the Beef Checkoff with additional support from Cargill. For more information on Boadwine Farms and other 2020 BQA Award winners, visit www.bqa.org/about/bqa-awards.
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with scientific knowledge to raise better quality cattle. Results Boadwine Farms have seen in following BQA and FARM guidelines at its facilities have been so positive that key employees are required to maintain BQA certification, and they expect employees or contractors who haul their animals to be BQA Transportation certified. Both the BQA and FARM programs are used in Boadwine Farms’ protocols in onboarding and providing continuing education opportunities for employees, as well. It’s important to Boadwine and Zwinger that not only are employees given opportunities for development, but that the farm helps prepare the next generation of beef and dairy producers, too. Boadwine Farms accepts interns from South Dakota State University’s dairy science and production programs to teach them herd health management, calf care, milking procedures, and stewardship, as well as farm management practices. The farm also hosts SDSU’s Dairy Challenge Team to allow students hands-on experience in evaluating farm management. Boadwine Farms participates in educational outreach outside of their own facilities as well, sharing dairy and beef stories with local communities and statewide. Each year, Zwinger and other employees volunteer to teach more than 2,000 attendees about dairy farms and milk production during Dairy Fest in nearby Brookings, S.D. They record videos to show fourth grade students across the state what happens on a dairy farm through the Adopt-a-Farmer program from South Dakota’s Ag United organization. “They take pride that the milk they produce stays in South Dakota for processing and is on the shelves at local grocery stores,” said Heidi Carroll, livestock stewardship field specialist and BQA coordinator with SDSU Extension.
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NATIONAL CATTLEMEN
T H E F E D E R AT I O N O F S TAT E B E E F C O U N C I L S Building beef demand by inspiring, unifying and supporting an effective state/national checkoff partnership.
Get to Know your Federation Regional Vice Presidents Over the next several months we will be helping you get to know the seven Federation regional vice presidents who serve on the NCBA Executive Committee. Here are the first two. Please feel free to reach out to the individual who represents your state with your questions, concerns or thoughts! Region 1 Steve Walker, New York
l
Steve grew up on a 40-cow dairy farm in Cooperstown, N.Y., and continues to be active in the dairy industry, owning more than 250 head of dairy cattle that he leases back to a farm in which he was formerly a partner. Today he owns a law firm in Syracuse, N.Y., where he works primarily with agricultural entities and farm families. Steve graduated magna cum laude from the Syracuse University College of Law in 2008 and was first in his class as a 1992 graduate of Cornell University College of Agriculture and Life Sciences. He’s a former chairperson of the New York Beef Council, former member of the New York State Cattle Health Assurance Program Management Team and former chairperson of the Animal Industry Advisory Council for the Department of Animal Science at Cornell University. He represents NYBC on the Federation and is co-chair of the Beef Checkoff Innovations Committee. “Steve has always been a passionate advocate in agriculture and the beef industry and has been a guiding light and a solid foundation as a leader with NYBC and the North East Dairy Producers Association,” says NYBC Executive Director Jean O’Toole. “Steve brings promotional vision and attention to a densely populated region that represents a quarter of U.S. consumers.”
State Programs Rotate to Continue Positive Contact State beef councils throughout the country are adjusting their efforts to assure Beef Checkoff programs continue to reach audiences critical to supporting and increasing beef demand. Despite an inability to interact face-to-face through their normal promotion and education activities, councils have been able to reach influencers and consumers in ways that have an impact for beef. For instance: The Washington State Beef Commission experienced cancellation of its St. Patrick’s Day corned beef demonstration on Seattle television, so turned to food blogger/television personality/cookbook author Danielle Kartes of Rustic Joyful Food to create and post a delicious Beer-Braised Corned Beef & Colcannon recipe and how-to cooking video on Instagram. The post reached 10,000 consumers, with more than 1,000 viewers interacting, including about 50 fans who made her dish and shared it on their own Instagram. WSBC is also pitching “Skyped” news stories on how to teach kids to cook while isolated at home. One result was a Seattle television segment featuring WSBC’s Jackie Madill and daughter Caitie cooking meatloaf muffins from their kitchen at home. Recognizing that more consumers are staying home these days, the Tennessee Beef Industry Council is extending content through its social media pages to help those consumers with storing, preparing and cooking beef. TBIC staff member Janna Sullivan has hosted guest chefs virtually through the organization’s Instagram page, read books about beef production to children on the TBIC Facebook page and hosted a coloring contest on its website. Also shifting to online formats has been TBIC staffer and registered dietitian Karman Meyer, who communicates with and trains dietetic interns. Her efforts provide these health professionals the knowledge to feel confident when including beef into the diets of their future clients. In addition to intern trainings Meyer develops content and live recipe videos for TBIC social media pages. The Oklahoma Beef Council provided 3,000 beef sticks to Oklahoma hospitals for healthcare workers; highlighted comfort food recipes, batch cooking and how-to guides for freezing beef; helped promote the Oklahoma Restaurant Association “Keep Calm, Carry Out” campaign with beef messages; and reallocated promotion dollars to YouTube and Google Search advertising to share recipes, cooking tips and helpful
An “At Home with Beef” page was added to WBC beeftips.com site as a go-to spot for consumers, and a “Buy Local” resource was added to help consumers connect with farmers and local meat processors. WBC Facebook page traffic/use is up by over 35 percent since the beginning of stay-at-home orders and reach and engagement was higher than it has ever been. The top performing post had a reach of nearly 12,000. More posts have focused on easy and economical beef recipes, and Facebook LIVE videos have shared quickand-easy recipes. WBC has offered retailers across the state consumer resources that might help their stores drive sales, while the organization is sharing the Wisconsin Restaurant Association's resources page, which lists Wisconsin restaurants that remain open for carry-out and delivery. Other states across the United States are also shifting campaigns and modifying work to assure maximum benefit to the Beef Checkoff.
Region 2 Don Terry, Tennessee
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Don wears many hats in the beef cattle industry; backgrounding and running a cow-calf operation, custom buying for customers in the Midwest and keeping cattle in commercial feedyards. He is also recently retired as manager of the Somerville Livestock Sales Market in Somerville, Tenn. In addition, he has been active in the Tennessee Beef Industry Council, serving both as chairman and a board member, and has served on the Beef Promotion Operating Committee representing the Federation and as a Federation member representing TBIC. Don is a U.S. Army veteran and has served as a volunteer of both 4-H and FFA. He was a County Commissioner for Chester County in Tennessee and has served as an elder in his church for decades. “Don is prepared, thoughtful, and makes decisions based on facts, as well as taking into consideration the long-term effects of future situations,” says TBIC Executive Director Valerie Bass. “He has also been fortunate to work in several different segments of the cattle business, and that has given him a broader view and understanding of the industry.”
videos with Oklahoma consumers. It also conducted a modified billboard campaign in Oklahoma City and Tulsa that focused on the healthfulness of beef and comfort foods. The Montana Beef Council executed a promotional partnership April 10-25 that allowed many restaurants to boost sales while customers enjoyed discounted beef menu items. During a two-week promotion, nearly 20 restaurants from across Montana participated in a “halfoff beef promotion” that allowed them to discount their beef menu items for one day, with the MBC picking up the tab for the other half of beef sales. With a limited amount of funding committed to the promotion by the MBC Board of Directors, spots filled up quickly. For each beef meal purchased, the MBC reimbursed the restaurant for half of the price and the customer enjoyed the meal at half of the cost. The partnership generated 2,400 pounds of beef sales. “The response was incredible and heartwarming,” said Chaley Harney, Montana Beef Council executive director. “Many restaurants had such an overwhelming response that they sold out of beef, some in a matter of hours. It was incredible to see the response in each of the communities and the ripple effect of support during these challenging times.” The Wisconsin Beef Council team made immediate changes to address the COVID-19 crisis. For instance, Angie Horkan, director of marketing, created an inhome TV studio and appeared virtually in 15 segments on the seven regularly scheduled TV stations across the state in April and early May. Recipes she featured included ground beef, kid-friendly and grilling.
Webinar Replaces In-Person Meeting During Crisis The phrase “You had to be there” can sometimes be appropriate. When it came to the Federation Orientation in April, being there took on a whole new meaning, as sessions were held live via webinar instead of in-person at the NCBA offices near Denver. New board members and staffs of 22 state beef councils from around the country participated in the Federation event. A poll following the two-days of sessions found that while most probably would have preferred to attend in person, they found the information helpful and came away with facts that would help them in their roles as volunteer leaders and staff members. Those responsible for managing the Beef Checkoff made presentations during the webinars, reviewing the roles of various Beef Checkoff organizations, the history behind the checkoff and the work being done on behalf of cattle producers through the program. Participants could ask
questions via chat during the two 2-hour sessions. The poll found that almost two thirds of respondents said the Orientation was extremely valuable, with 85 percent rating 4 or 5 on a 5-point scale. All respondents said a digital source containing “What I need to know” information that was provided will be helpful in their roles. As the sessions were taking place, participants were able to ask questions of presenters and get more facts about the information they were hearing. Although not as direct as face-to-face, there were advantages to not travelling to Denver for the updates. “I think this Webinar is fantastic!”, one participant commented. “Y’all should think about doing this more often. It’s especially helpful for those of us who are calving and branding.” Staff is exploring ways of incorporating more webinar experiences to overall Beef Checkoff education opportunities for various Federation audiences.
NATIONAL CATTLEMEN 9
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Governance Between the Meetings By Barb Wilkinson, NCBA Senior Executive Director, Governance and Leadership Development It takes volunteers making decisions and staff implementing them to make an association work. We are currently in the implementation season. This past February in San Antonio both divisions of NCBA (Policy and Federation) were in decision-making mode. Let’s take a look at what has happened since we met in San Antonio. COVID-19 Interruption First, we have to acknowledge that this year has been interrupted by COVID-19 and caused adjustments in both divisions. For the Policy Division the focus has been on keeping the beef supply moving to consumers. The Washington, D.C. team along with others have been working overtime to address issues ranging from the length of time trucks are allowed to haul cattle to securing an Executive Order by the President to keep packing plants open. In addition, the Policy Division has enlisted the help of the Live Cattle Marketing Working group to address many of the market-related issues that COVID-19 has presented. During this time, the focus of Checkoff programs that were in the implementation phase for FY 2020 had to adjust to the stay-at-home consumer. For example, Beefitswhatsfordinner. com saw a huge increase in traffic so information was modified to keep this newly involved consumer coming back for more great recipe ideas. Consumer market research remains an important tool, especially in times like these where there are no play books. Business as usual - hopefully During the Joint Checkoff meetings in San Antonio, members of the Federation and the Cattlemen’s Beef Board (CBB) met jointly to set priorities for FY 2021 which begins October 1, 2020. The
priorities were based on the Industry Long Range Plan. Currently, staff from the various contracting organizations, including NCBA, U.S. Meat Export Federation, American Farm Bureau Federation Foundation, U.S. Cattlemen’s Association and others are developing plans to present to the committees during the Summer Business Meeting for scoring. These plans are in the form of Authorization Requests (ARs) which will be later voted on during the Beef Promotion Operating Committee (BPOC) meeting in September. The BPOC members receive the committee scores to help in their decision making. Also, the Beef Industry-Wide Long Range Plan Task Force has continued to meet with the goal of having the new plan ready for discussion and adoption by NCBA and the CBB during the Summer Business Meeting in late July. This task force was assembled last fall and is chaired by Kim Brackett, a cattle producer from Idaho and former chair of CBB. In addition to implementing policy, the Policy Division continues preparation for Summer Business Meeting. The normal activity for the Summer Business Meeting is three-fold. Review and vote on 1. all expiring policy (anything passed in 2015 is up for review for either sunset, renew or renew with amendments). There are 61 expiring policies this year; 2. all interim policy passed at the 2020 Convention in San Antonio; and 3. all new resolutions brought forth by affiliates or any task force or working group. A lot happens between the meetings in a normal year and this year is anything but that. We couldn’t do it without the direction given by volunteer leaders during the meetings and the leadership of our officers and staff in between. Until we meet again, stay safe!
NCBA Members Come Together in Social Media Campaign Cattlemen and women are a resilient group of people who stand up for what they believe in. During the COVID-19 pandemic NCBA members have rallied together to share positive messages with their fellow beef producers. At the beginning of May, NCBA worked with a group of producers and business owners to create a social media campaign called #InThisTogether. The campaign highlights each segment of the industry and discusses how each of their operations or businesses have been impacted while demonstrating that the cattle industry is working through the COVID-19 crisis as one. The videos highlight each stop of the supply chain from gate to plate. The first video featured Bradfield Evans, a cow-calf producer who discusses how he has changed the way he markets his animals. He also talked about some of the great things that have happened on their operation. “With our children being home on the farm for the last couple of months we have been able to have some good times. We have seen my daughter improve her horsemanship skills and boost her confidence,” said Evans. “We have watched my son run equipment, drench cows and help in the catch pen. I have loved being able to work with them every day.”
NCBA members were able to share their positive messages but also what they have learned during this difficult time. Margaret Ann Smith, whose family runs a diversified operation and an order buying business that ships cattle throughout the United States, discussed the challenges she has seen over the last few months as well as consumer demand for beef. “One of the challenges we have seen is the uncertainty in the markets,” said Smith. “We are looking for market signals to give us direction while realizing that most of this is beyond the control of the agriculture industry and proving how global our businesses have become over the last several decades. “Both our domestic and export markets have been impacted by COVID-19 but we know we have a highly sought-after product. We are doing our best to continue to produce the safest and best tasting product for our families and the consumer’s families. We are truly all in this together,” she said. Each of the participants in the video campaign offers information and a positive message to their fellow cattlemen and women. Wellreceived with viewers, at the time of printing more than 35,000 people had viewed the first three videos. All videos in the campaign can be seen on the NCBA Facebook and Instagram pages.
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NATIONAL CATTLEMEN
NCBA Members Establish Organization’s Approach to COOL NCBA COOL Related Policy International Trade 1.12 Country-of-Origin Labeling Implementation WHEREAS, there are serious concerns about mandatory Country-of-Origin Labeling (COOL), and WHEREAS, there is increasing recognition about the many adverse aspects of Country-of-Origin Labeling including the costs, benefits, and impact of Country-of-Origin Labeling relative to tracking, auditing, verification, and compliance, and WHEREAS, NCBA opposes mandatory labeling but remains in support of Country-of-Origin Labeling that is voluntary and industry-driven, and WHEREAS, the World Trade Organization declared the implementation of the previous mandatory Country-of-Origin Labeling law to be in violation of international trade laws, subjecting the United States to severe retaliatory tariffs unless it was repealed, and WHEREAS, the implementation of the previous federal Country-of-Origin Labeling law placed a great burden on domestic producers and disrupted the beef market, THEREFORE BE IT RESOLVED, NCBA shall continue to oppose mandatory Country-of-Origin Labeling laws or regulations that may violate international trade laws, and NCBA will work with Congress and United States Department of Agriculture (USDA) to ensure that Country-ofOrigin Labeling laws or regulations for red meat products allow maximum benefits and minimal market disruptions to the United States beef and cattle industry.
Marketing Directive 2018 Country-of-Origin Labeling (COOL) WHEREAS, Country-of-Origin Labeling of meat products is a service to the consumer, and
THEREFORE BE IT DIRECTED, NCBA staff will work with USDA and the entire value chain to ensure that accurate and voluntary origin labels are in place to benefit beef producers and consumers.
The photo below is an example of what voluntary labeling looks like. Big difference when you can see an American flag and the bold words “American Beef.”
International Trade Winter Resolution (interim policy from 2020 Annual Convention) Transparency in Labeling WHEREAS, NCBA supports clear retail labeling of beef products to reduce consumer confusion at the point of purchase, and WHEREAS, the potential for ambiguous labeling of beef products without meaningful audit and verification is a cause for concern among beef producers across the country, and WHEREAS, USDA currently oversees multiple, voluntary Process Verified Programs (PVPs) that include source of origin claims, and those PVPs have a proven track record of adding value to enrolled cattle, the flexibility to adapt to the needs of producers, and have been designed and tested by cattlemen in real-world production, THEREFORE BE IT RESOLVED, NCBA supports the use of voluntary source of origin claims. BE IT FURTHER RESOLVED, NCBA supports USDA verification of any source of origin claim or label.
What COOL Should Be Mandatory COOL (mCOOL) was law for more than six years. While it had some supporters, there were many problems with the initial program. Among the first, was the fact that only about 30 percent of beef was actually labeled. Beef bound for restaurants, foodservice and hotel consumption wasn’t labeled. Secondly, the government program was not very effective in educating consumers.
Also, origin labeling doesn’t have to be U.S.specific. A voluntary labeling program allows for more flexibility to make the program work for the cattle business, rather than making producers conform to one government-mandated standard. The image below is a great example from Kentucky.
WHEREAS, consumers can be confused by the inconsistency of current voluntary labels being used to define beef as a product of the United States (U.S.), and WHEREAS, this service should be market driven based on consumer demand and willingness to pay any premium that reflects the cost of providing the service, THEREFORE BE IT DIRECTED, NCBA foster and support programs that provide for voluntary COOL of U.S. beef, BE IT FURTHER DIRECTED, NCBA support establishment of a voluntary label defining beef born and raised in the U.S.
International Trade Directive 1 (interim policy from 2020 Annual Convention) Transparency and Verification of Voluntary Origin Labeling Claims 3 WHEREAS, the potential for ambiguous labeling of beef products without meaningful audit and verification is a cause for concern among beef producers across the country, and WHEREAS, NCBA listened to its members and formed a producer-led working group to investigate concerns over labeling of beef as “Product of USA” or “Made in the USA” and in response to findings of the working group,
The photo above shows what mandatory COOL labels looked like. Did you find the origin label? Look at the small print at the bottom of the clear wrap. Mandatory COOL is supposedly about marketing. Marketing is about catching the consumer’s eye. This doesn’t do it, but it is exactly what happens when you ask the Federal government to market your beef.
Now, it’s important to note that NCBA believes that any voluntary origin labels that are put in place are verified by USDA to make certain that any label claims that are made, origin or otherwise, are accurate and correct. That’s why NCBA has introduced policy and is working with USDA to make certain the USDA’s Agricultural Marketing Service, which oversees marketing claims made under its Process-Verified Programs (PVPs) has oversight of any origin labeling claims, not the USDA Food Safety Inspection Service. As we already discussed, COOL is a marketing claim, not a food safety claim. However, it needs to be stated again, NCBA supports voluntary COOL programs, and those programs must be verified to make certain any product claiming American origin, is in fact, from the United States.
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Coronavirus Food Assistance Program Questions and Answers The Coronavirus Food Assistance Program (CFAP), authorized and funded by Congress under the CARES Act, provides vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities. CFAP is available for livestock producers (both individuals and legal business entities) who share in the risk of livestock production and are either a) entitled to a share in the crop or livestock available for marketing, or b) would have shared had the crop or livestock been marketed. According to USDA, processing entities are ineligible for CFAP assistance. Payment Calculations CFAP payments for cattle producers will be made on the sum total of two different calculations (referred to below as Part 1 & Part 2). • Part 1: Using the $9.5 billion provided in the CARES Act, part 1 of a cattle producer’s total CFAP payment will be made on actual losses incurred between January 15 and April 15, 2020. This calculation is determined by multiplying one of the below payment rates by the volume of sales (on a per-head basis) that occurred between January 15 and April 15, 2020.
Commodity
Definition
Part 1 Payment Rate
Slaughter Cattle: Fed Cattle
Cattle with an average weight in excess of 1,400 pounds which yield average carcass weights in excess of 800 pounds and are intended for slaughter*
$214.00
Slaughter Cattle: Mature Cattle
Culled cattle raised or maintained for breeding purposes, but which were removed from inventory and are intended for slaughter
$92.00
Feeder Cattle (< 600 lbs.)
Cattle weighing less than 600 pounds
$102.00
Feeder Cattle (≥ 600 lbs.)
Cattle weighing more than 600 pounds but less than the weight of slaughter cattle-fed cattle
$139.00
All other cattle
Commercially raised bovine animals, excluding beefalo, bison, and animals used for dairy production or intended for dairy production
$102.00
*NCBA is aware of concerns with this definition and working with USDA to ensure this definition does not arbitrarily exclude fed cattle below the stipulated live weight. Additional details forthcoming.
•
Part 2 of cattle producer CFAP payments will be funded through the Commodity Credit Corporation (CCC). The CCC payment is a single rate of $33 per-head for all beef inventory and is based on projected costs that are likely to be incurred by cattle producers for marketing their 2020 inventory due to unexpected surplus and disrupted markets. This payment is calculated by multiplying the $33 payment rate per head by the highest inventory number between April 16 and May 14, 2020. This payment rate includes newborn calves. Example 1: A cow-calf producer who also backgrounds Calves sold in 150 calves x $139/head $20,850 calves entered 2020 with 300 March mother cows and 250 calves. In March, 150 calves, weighing over Calves 100 calves x $33/head $3,300 600 lbs. were sold. The remaining retained 100 calves, also weighing over Cull cows 20 cows x $92/head $1,840 600 lbs., were retained to be sold sold after May 14. The producer also Mother Cow 280 cows x $33/head $9,240 sold 20 cull cows in late January. inventory The estimated CFAP payments would be: Total $35,230
Example 2: A cow-calf producer entered 2020 with 200 mother cows and 185 calves. In March, 150 calves, weighing less than 600 lbs. were sold. The remaining 35 calves, also weighing less than 600 lbs., were retained to be sold after May 14. The producer also sold 15 cull cows in late January. The estimated CFAP payments would be: Calves sold in March
150 calves x $102/head $15,300
Calves retained Cull cows sold Mother Cow inventory
35 calves x $33/head $1,155 15 cows x $92/head $1,380 185 cows x $33/head $6,105 Total $23,940
Example 3: A feedlot manager entered 2020 with 200 fed cattle. In March, 100 fed cattle, weighing more than 1,400 lbs. were sold. The remaining 100 fed cattle, also weighing more than 1,400 lbs., were retained to be sold after May 14. The estimated CFAP payments would be: Fed Cattle (>1,400 lbs) sold in March Fed Cattle (>1,400 lbs) retained
100 x $214/head
$21,400
100 x $33/head
$3,300
Total $24,700
Application Process Q: When should cattle producers apply? A: USDA will begin accepting CFAP applications on May 26, 2020 and will accept applications through August 28, 2020. Q: How can eligible livestock producers apply for CFAP? A: Once signup begins on May 26, applicants will be able to download the application tool and forms at farmers.gov/CFAP. Applications may be submitted via mail, fax, hand delivery, or via electronic means. Producers should contact their local service center for more information. Q: What documents do producers need to submit with the CFAP application? A: To complete the CFAP application, producers will need sales, inventory and other records. However, since CFAP is a self-certification program, this documentation will not need to be submitted with the application. Because applicants are subject to spot check and will be required to provide documentation, producers should retain the documentation used to complete the application. If a producer willfully makes and represents as true any verbal or written declaration, certification, statement, or verification that the producer knows or believes not to be true, in the course of either applying for or participating in CFAP, or both, the producer will be subject to prosecution under Federal criminal and civil fraud statutes. Additional information on supporting documentation is available on the link on page 19. Payment Details Q: When will producers receive CFAP payments and how will these payments be structured? A: Payments to eligible producers are expected to be made once applications are processed. USDA will make an initial payment of 80 percent of an eligible participant’s calculated CFAP payment. A final payment (the remaining 20 percent) will be issued on a date determined by the Secretary, to the extent such funds are available. • By issuing initial payments, FSA can quickly serve those that immediately apply for assistance while ensuring that CFAP payments do not exceed the $16 billion funding limit. This ensures that funds are distributed equitably among all eligible producers. If funds remain available after the initial payment to eligible applicants, USDA will disburse the remainder of available funding not to exceed the $16 billion funding limit and funds may be prorated if necessary.
Continued on page 19
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Market Matters Marketing and Managing in These Economically-Challenged Times By James Robb, Senior Economist, Livestock Marketing Information Center Compared to earlier this year, due to COVID-19 the economic environment has dramatically changed. The U.S. and the world are in a severe economic recession, restaurants and some packing plants have been shuttered, on-and-on. There are at least several more months of this economic environment, and it could easily stretch into 2021. Given the unknowns ahead, some time spent planning could be profitable down-the-road. Prepare for price volatility. As conditions change, be ready to adjust marketing plans. Don’t overlook the importance of communicating with your family, partners, and financial institution. What to Monitor? Carefully monitor the forage situation on your operation. Importantly, take that to the next levels -- looking at surrounding areas and states, and nationally. Pasture conditions this year will be critical to regional and national flows of calves, and especially yearlings, to market. USDA’s National Agricultural Statistics Service (NASS) will begin reporting weekly pasture and range condition updates soon (in the Monday Crop Progress report). That report is often summarized in the media, and an update every couple of weeks is sufficient. Many more animals are headed to spring and summer grazing programs than in recent years because of the drop in the number of animals being placed into feedlots, a trend that may continue for several months. Poor pasture and range conditions could cause bunches of cattle to move into the markets quickly. Further, more winter feed will be required if producers that typically don’t hold-over calves into the new calendar year, do so in 2020. Follow the monthly national feedlot placement statistics published by NASS, even if you are not feeding cattle. An eye on those results provides an indirect look at how cattle feeders are positioning (head they are buying and at what weights). It will be a measure of how many more animals are outside of feedlots (still on farms and ranches) than last year. Those reports are widely circulated and commented on. This year, even solely forage-based operations need to keep an eye on feedstuffs, especially corn. Also, be aware of trends in soybean meal and in hay prices. The two major drivers of calf and yearling price are fed animal prices and the cost of gain in a feedlot. Last year, the spring surge in corn price derailed calf prices. Futures markets currently expect a huge 2020 U.S. corn crop, but it’s still early in the growing season. Low feedstuff costs can become a supportive market factor for late summer
SOUTHERN PLAINS CORN PRICES Weekly
$ Per Bu. 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25
JAN
APR
JUL
Avg. 2014-18
OCT
2019
2020
Data Source: USDA-AMS
G-P-04 05/14/20
Livestock Marketing Information Center
and early fall yearling and calf prices. Drought will do the opposite. Pay attention to the U.S. dairy sector, including Federal policy. Is there potential for bursts in cow culling? Dairy producers are facing very challenging financial circumstances; in some areas of the U.S., milk is being dumped into lagoons or on farm ground. One of their options is to cull cows, which depending on timing could cause already low prices to fall off a cliff. Milk prices and details of any Federal programs could be crucial. Retained Ownership? Producers faced with weak cattle prices need to recognize that cost of gain also has been dropping. As this summer unfolds, producers running summer stockers and cow-calf operations may want to carefully evaluate retained ownership on the farm/ ranch or in a feedlot. Study feedstuff alternatives and accurately project cost of gain, even if just backgrounding calves for a few months. There
are a lot of considerations, including potential tax consequences if income is delayed into next year. If a producer is new to retaining ownership in a feedlot, don’t jump in all at once. See what feedlots offer and ask a lot of questions. Many feedlots will partner on retained animals. Note that some feedlots do an excellent job of feeding calves, others focus on yearlings. For cattle placed into feedlots during late 2019, Live Cattle futures contracts offered very profitable risk management alternatives. But locking-in a profit could be more difficult for animals that are put on-feed this fall, compared to last year. As reported by the monthly Kansas State University survey (Focus on Feedlots), the average steer cost of gain for March was $83.41 per cwt. Kansas feedlot projections for mid-April averaged $74.00, the lowest since August 2018. If grain and hay costs continue to slip, as expected, that number is likely headed even lower.
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Market Matters Protein Production Setbacks Due to COVID-19 By Lance Zimmerman Manager – Research, Analysis and Data, CattleFax Cattle producers are rightfully concerned about the slaughter slowdown that has developed as COVID-19 affects rural America. The red meat and poultry sectors have been particularly affected as the virus spreads. The changes will influence production forecasts from earlier in the year. Weekday fed cattle slaughter was as much as 39 percent below maximum capacity at its worst. Improving the slaughter pace gradually through June toward an 88,000 head per weekday pace would still create a 1.3 mil. head shortfall. With reports of employee illness and absenteeism at packing plants throughout the country, deficits can be expected into early summer. The president’s order to keep meat processing plants open through the Defense Production Act should help, but these facilities are balancing the national interest for food security – and the cattle producer’s financial interests – against worker safety and well-being. There is also concern packing plants will not be able to run at the same speed they did prior to COVID-19 due to new safeguards and workspace
guidelines. That will lengthen the recovery period. Feedyard placements have already slowed substantially. January to April placements will be down more than 1 mil. head compared to last year. A backlog of cattle exists throughout the production system. The worst pork production losses of the year were likely in early May as slaughter fell 900,000 head below expectations. The segment has sent some market hogs to rendering. Also, there are reports of euthanized piglets and aborted sows and gilts. Other females have simply not been bred. It is difficult to quantify the losses. Many will not be realized until fourth quarter 2020, but it is unlikely market hog supplies will fall below year-ago levels in the next seven months due to larger carryover. Hog slaughter is expected to be up 1.6 mil. head in 2020 at 131.5 mil., but the first quarter increase was already at 2.6 mil. head. Weights will also be larger than initially estimated – leaving pork production 600 mil. lbs. higher in 2020. Like the pork sector, poultry considerations must include adjustments for euthanized birds that were expected to enter the supply chain now as well as declining eggs set and chicks placed that will influence second and third quarter production. The difference is the poultry sector can react quicker to shortterm demand as the foodservice segment rebuilds. Current setbacks will limit production growth, but 2020 should still see a year-overyear gain of 900 mil. lbs. When stay-at-home orders
June to Bring Cooler and Wet Weather By Don Day, Jr. Meteorologist
Editor’s Note: NCBA members can read weekly updates from meteorologist Don Day, Jr. by logging onto www.NCBA.org. The first full month of summer will be off to a cool start for a large part of the United States as the cool weather we experienced in May will persist into the month of June. May brought record cold and snow to many areas of the central and eastern areas of the U.S. Although the second half of May was not as cold, some of the trends that made May cooler than normal for many could continue into the month of June. While we do not expect June to be as cold (relative to normal) as May was, temperatures are likely going to be a little cooler than normal for a large part of the nation from the east slopes of the Rockies to the Corn Belt and Great Lakes. The graphic to the left shows the expected temperature trends in the month of June. The blue areas represent areas of the cooler than normal expected temperatures, while white areas reflect expected near normal temperatures. Note that a large part of the Plains and Corn Belt will not have a hot June. Temperatures are expected to be the warmest along and west of the Continental Divide. If this forecast holds true, the hottest June weather will be in the far west with the coolest temperatures in the central states. At least for the first month of the summer season there is no hint of a prolonged stretch of hot weather. The precipitation trends in June are expected to mirror the expected temperatures. The cool areas are showing as the locations most likely to have above normal precipitation. This makes sense, as above normal rainfall is associated with more clouds and evaporation of rainfall (a cooling process). For a large part of the Plains and Corn Belt, June precipitation will be sufficient (perhaps too much in a few areas). While the expected precipitation graphic below shows significant June precipitation in parts of the Southern Plains and Southern Rockies, those areas have had a dry spring season and can really use the rain. Note the dry areas developing in the far south and southeast portions of the U.S. Dry conditions may also persist west of the Continental Divide across portions of the Northern and Central Rockies while east of the divide, precipitation is expected to be more widespread. Above average rainfall is looking likely for most of the Corn Belt and the central and northern High Plains.
are lifted, it is going to take time for foodservice to rehire, retrain and restock. Once they do, there will likely be restrictions to occupancy, and it is difficult to say how consumers respond. It is reasonable to expect an initial surge, but cattle producers will need consistently stronger beef demand to work cattle through the system. The forecasts for beef, pork and broiler consumption were each reduced 1 lb. per person compared to previous expectations due to COVID-19 production and trade disruptions. Bottom Line: It will take months to remedy this situation. Cattle will move more slowly throughout the production system, cattle weights will increase and marketing challenges will be more prevalent in 2020. Earlier in the year, total red meat and poultry supplies were expected to increase 2.8 bil. lbs. compared to 2019. Current forecasts outline an increase of 1.3 bil. lbs. That will reduce total per capita beef, pork and poultry supplies by 3 lbs. compared to last year. Smaller increases in pork and poultry production can alleviate some pressure on the cattle and beef markets as the supply chain works through uncurrentness.
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NATIONAL CATTLEMEN
The Importance of Mineral Supplementation By Jesse Fulton, M.S. – Director of Producer Education Many producers are getting ready to move or have already moved their cattle to summer pastures, which hopefully means they already have a mineral nutrition plan ready for summer. If you have not considered mineral nutrition of your cows while out on grass, I strongly suggest thinking about it. Not all mineral supplements are created equal. Mineral supplementation programs can range from salt to a complete mineral program and everything in between. And while mineral supplementation costs money, not supplementing minerals in a way and at a level that will meet requirements costs much more. Generally, pasture forages do not meet all the mineral requirements of grazing cattle. Forages, water, and soil all serve as dietary mineral sources; however, the quantity of trace minerals ingested from these sources may not be sufficient to meet the animal’s requirements without additional supplementation. Additionally, not all trace minerals are easily taken up by plants and available to the animal through forage consumption. Several factors can affect mineral uptake by plants, including soil pH, plant species, stage of maturity, yield, pasture management, and precipitation. In general, as plants mature their nutrient content tends to decline. Additionally, regional deficiencies are common; however just because an area is deficient does not mean that all forages in that area will be deficient. Minerals are classified into two different categories: macro and micro minerals. Macro minerals are required by the animal in large concentration and are measured as a percentage of the diet since requirements for these minerals are much greater than those of micro minerals. Calcium (Ca), phosphorus (P), potassium (K), sulfur (S), magnesium (Mg), sodium (Na), and chlorine (Cl) compose the macro minerals. Micro minerals, also known as trace minerals, are required in the diet at small concentrations, usually as parts per million. Copper (Cu), zinc (Zn), iodine (I), manganese (Mn), selenium (Se), cobalt
(Co), and iron (Fe) compose the trace minerals and are also vital to beef cattle because they perform functional roles within the body. When these macro and micro mineral requirements are not met or alternatively are consumed at toxic levels, adverse consequences can result. Sometimes symptoms may not be present. However, performance issues that occur in grazing beef cattle production systems are frequently linked to minerals. More specifically, adequate intake and absorption of trace minerals are important in the body because they are required for numerous metabolic functions, optimal production, and performance. Deficiencies in trace minerals can result in a reduction in forage intake and digestibility, decreased reproductive efficiency, decreased immune function, limited daily gains, a reduction in feed conversion and compromised enzyme function. Understanding the consequences of not feeding mineral supplements demonstrate why many producers choose to supplement their cattle. To find out more about testing your cattle’s feed or forage mineral content, contact your local beef cattle extension expert. This July, the Cattlemen’s Webinar Series will conduct a four-part series focused on Mineral supplementation. The first webinar will give producers a general understanding of minerals and their role in cattle diets. The second webinar will provide producers with a better understanding of reading mineral bag tags and what exactly the mineral tag is telling them. This webinar will also cover how to manage consumption to meet mineral requirements, and matching minerals to the current environment (i.e. can you feed the same mineral year-round). The third webinar will take a deeper dive into the importance of mineral nutrition on cattle reproduction, and the fourth webinar will explore the importance of mineral nutrition on cattle immunity. Keep an eye out for registration for the Cattlemen’s Webinar Series – Mineral Nutrition at NCBA.org/ producer.aspx.
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NEWS Beef Is On the Grill This Summer This summer, Beef. It’s What’s For Dinner., funded by the Beef Checkoff and managed by the National Cattlemen’s Beef Association (NCBA), is encouraging families across the country to unite… in their love of beef. From the farmers and ranchers who raise beef to the consumers who enjoy it, Beef. It’s What’s For Dinner. will be encouraging consumers to put beef on the grill all summer long. A multi-pronged summer grilling campaign will roll-out in late May, running through Labor Day, with a variety of key moments to make sure that consumers around the country continuously see timely and relevant content that inspires them to make their own beef meals on the grill. Beef Consumption Beef has long been the number one grilling protein of choice among consumers. Even throughout the COVID-19 pandemic, consumers have continued to love beef. In fact, today, consumers are eating beef more frequently than ever before, with 96 percent of consumers eating beef and more than 70 percent of consumers saying they are consuming beef at least weekly or more, according to the Consumer Beef Tracker managed by NCBA, a contractor to the Beef Checkoff. And, as we roll into grilling season, which kicked off on Memorial
Day (May 25), research conducted by NCBA shows that one-third of consumers say that they actually plan to grill more this summer than they have in the past, pointing to a prime opportunity to remind consumers that beef is the protein they should put on the grill. Summer Grilling Season, Brought to You by Beef Farmers and Ranchers Kicking off the Beef. It’s What’s For Dinner. summer grilling campaign in late May, Beef. It’s What’s For Dinner. reminded consumers that it’s almost grilling season and that this summer grilling season is brought to you by beef farmers and ranchers. Beef farmers and ranchers have continued, as they always have, to work day-andnight to ensure that their families, and families around the country, continue to have access to beef. A new video, which features beef farmers and ranchers from around the country, was released on social media to showcase that beef farmers and ranchers are helping keep beef on grills this summer grilling season. Follow Beef. It’s What’s For Dinner. on Facebook to be sure to see the video. Declaring May 28 as National Beef Burger Day Beef. It’s What’s For Dinner. reminded consumers that real burgers are made with beef by declaring May 28, 2020 the first official National Beef Burger Day. A press release announcing this official day was shared with national media, as well as ag media partners. In celebration of this event, Beef. It’s What’s For Dinner. encouraged consumers and producers alike to grill their favorite beef burgers and share photos on social media using the hashtag, #BeefBurgerBrag, to be entered into a giveaway to win Beef. It’s What’s For Dinner. schwag. Beef burger content, including recipes and images on how to build the perfect burger, were shared through Beef. It’s What’s For Dinner. social media platforms, while nationally-known bloggers also shared their own beef burger content on their blogs and Instagram Live platforms. In addition, a new infographic was created showing how consumers are actually supporting a large part of the agriculture
New Research Supports Lean Beef in Healthy Diets New Beef Checkoff research adds to the body of science showing that lean beef can be a daily part of a healthy diet that supports metabolic and heart health. Kevin C. Maki, an Adjunct Professor in Applied Health Science at the Indiana University School of Public Health, conducted a high-quality, randomized controlled trial, the gold standard in research design. He found that substituting lean beef for carbohydrates, primarily from refined starches, in a healthy dietary pattern does not adversely affect the cardiometabolic risk factor profile in men and women at risk for type 2 diabetes. Specifically, this new research shows that about 6 ounces of lean, unprocessed beef daily in a healthy diet, as a replacement for carbohydrates, does not increase risk factors for heart disease or diabetes. “This study is important because it shows that red meat can be part of a healthy eating pattern,” said Dr. Maki. The research compared the USDA Healthy U.S.-Style Eating Pattern, similar to that recommended by the current Dietary Guidelines for Americans containing 1.2 ounces of red meat per day, to a modified version of that same diet that included 6 ounces of lean, unprocessed beef per day as a caloric equivalent replacement for refined starches. The research measured various
markers for cardiometabolic disease risk such as insulin sensitivity and LDL cholesterol for each participant. Insulin sensitivity is a measure of how effectively the body can use carbohydrates and can be used as an indicator for development of type 2 diabetes. LDL cholesterol is also commonly referred to as “bad” cholesterol because it increases the risk of heart disease. “Insulin sensitivity and LDL cholesterol did not differ between the two diets. The only significant difference observed was a shift toward a greater percentage of cholesterol carried in larger, more buoyant LDL particles during the higher beef condition. This difference is potentially important because larger, more buoyant LDL particles may be less likely to promote atherosclerosis,” said Dr. Maki. The take home message: This new research supports that Americans have increased flexibility to include almost 6 ounces of lean, unprocessed beef into their daily healthy diets without adversely affecting their risk for developing cardiovascular disease or type 2 diabetes. This scientific evidence provides further support that lean beef can be part of a higher-in-protein, healthy diet and is important science to consider with the 2020 Dietary Guidelines for Americans currently underway.
community when they chow down a delicious beef burger thanks to the bun and toppings that accompany the star of the show—beef. United We Steak In June, Beef. It’s What’s For Dinner. will encourage Americans to unite around a shared love of beef on the grill as consumers around the country declare in unison, United We Steak. Whether it means enjoying a grilled beef meal with just the people in your household or with family and friends, the summer rallying cry this year will be “United We Steak.” The centerpiece of the campaign is 50 handcarved state-shaped steaks, beautifully featured in a variety of Beef. It’s What’s For Dinner. content, including still photographs and a new series of videos that will be served to consumers on social media platforms, as well as through Connected TV and YouTube advertising. The campaign will drive users to BeefItsWhatsForDinner.com or UnitedWeSteak.com, where they can find an interactive map of all 50 state-shaped steaks that form the entire nation. Each state will have a state profile page, complete with statethemed beef recipes, a “meet your state beef producer” section and other fun and informative facts about the state. A new series of radio ads will also be released and shared both nationally and locally through state beef council efforts. More online influencer activations will help consumers learn how to best grill beef at home, while earned media stories will be pitched both nationally and locally to ensure that beef has positive and prime media coverage. These are just a few examples of how NCBA and Beef. It’s What’s For Dinner. are continuously ensuring that beef is the top protein. Follow Beef. It’s What’s For Dinner. on Facebook, Instagram, Twitter, YouTube, LinkedIn, Pinterest and visit BeefItsWhatsForDinner.com to continuously see new content.
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Coronavirus Food Assistance Program Questions and Answers Continued from page 12 Q: Are CFAP funds a loan that must be repaid? Is there a fee to apply? A: No. CFAP is not a loan program and there is no cost to apply. Q: Are there payment limitations? A: Yes. The total CFAP payment that an individual may receive directly or through attribution of payments is $250,000. Payments made to a joint venture or a general partnership are limited to the aggregated amount of payments that individual or legal entity members of the joint venture or general partnership may otherwise receive. The total amount of CFAP payments made to a corporation, limited liability corporation, or a limited partnership is $250,000 except: • The corporation, limited liability corporation, or limited partnership may receive $500,000 if two different individual owners of the legal entity each provided at least 400 hours of active personal labor or active personal management or combination thereof with respect to the production of 2019 commodities. • The corporation, limited liability corporation, or a limited partnership may receive $750,000 if three different individual owners of the legal entity each provided at least 400 hours of active personal labor or active personal management or combination thereof with respect to the production of 2019 commodities. Q: Do CFAP cattle payments include culled dairy cattle? A: No. Eligibility Q: Are producers who don’t participate in other USDA programs eligible to apply for CFAP? A: Yes. Participation in other USDA programs is not a prerequisite. Q: Is there an Adjusted Gross Income (AGI) limit to participate in CFAP? A: Yes. A person or legal entity is ineligible for CFAP payments if the person’s or legal entity’s Adjusted Gross Income (AGI), using the average AGI for the 2016, 2017, and 2018 tax years, is more than $900,000 unless at least 75 percent of the person’s or legal entity’s average AGI is derived from farming, ranching, or forestry-related activities. If at least 75 percent of the person’s or legal entity’s average AGI is derived from farming, ranching, or forestry-related activities, the person or legal entity is subject to the payment limits discussed above. Q: Do the Farm Bill’s conservation compliance requirements apply to CFAP? A: While the USDA website and CFAP rule states that producers participating in CFAP must be in compliance with the highly erodible land conservation and wetland conservation provisions under 7 CFR Part 12 and certify compliance on Form AD-1026, it’s NCBA’s understanding the CFAP application clarifies submission of the AD-1026 form will only be required for crop commodity applicants, not livestock producers. Additional Information Q: What supporting documentation should producers utilize to determine livestock inventory? A: CFAP payments on livestock inventory will be based on inventory records. Examples of supporting documentation that can be provided by the producer as evidence to substantiate the amount of production or inventory reported includes copies of receipts, ledgers of income, income statements of deposit slips, veterinarian records, register tapes, invoices for custom harvesting, and records to verify production costs, contemporaneous measurements, truck scale tickets,
or contemporaneous diaries that are determined acceptable by USDA. Q: Will a producer that fails to provide the necessary supporting documentation still receive a CFAP payment? A: No. If any supporting documentation or form is required in order to process the CFAP application and that documentation or form is not submitted to FSA within 60 days of the producer’s signature date on the application, the CFAP application that had been submitted will not be processed and will not be acted on by USDA. Q: Will payment limit/eligibility forms be required? A: Yes. Failure to submit the following payment limitation and payment eligibility forms from the date of submission may result in no payment or a reduced payment: 1) A farm operating plan for an individual or legal entity; 2) Form CCC-901 Member Information for Legal Entities (if applicable); 3) An average adjusted gross income statement for the 2020 program year for the person or legal entity, including the legal entity’s members, partners, or shareholders, as provided in part 1400 of this title; form CCC-941 Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information; and 4) CCC-942 Certification of Income From Farming, Ranching and Forestry Operations (optional). Q: Is eligibility subject to verification? A: Yes. Producers who are approved for participation in CFAP are required to retain documentation in support of their application for 3 years after the date of approval. CFAP participants will be required to permit authorized representatives of USDA or the Government Accountability Office, during regular business hours, to enter the agricultural operation and to inspect, examine, and to allow representatives to make copies of books, records or other items for the purpose of confirming the accuracy of the information provided by the participant.
costs resulting from lost demand and short-term disruptions for the 2020 marketing year caused by COVID-19. Commodity specific rates and a payment calculator can be found at farmers.gov/cfap. Q: The impacts of COVID-19 on agriculture producers are significant. What if USDA runs out of funding? A: To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available. NCBA will be working with allies on Capitol Hill to ensure additional funding is made available to ensure equitable
disaster assistance is available for all producer segments of the cattle industry. For more information go to https://www.farmers.gov/sites/ default/files/documents/CFAP%20 Final%20Rule.pdf. DISCLAIMER: The information provided in this summary does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this summary are for general informational purposes only. Information in this summary may not constitute the most up-to-date legal or other information. Please consult counsel and other certified professional advisors if you have questions regarding your eligibility or have other legal questions.
Q: Are producers liable for payment rate calculation errors? A: Yes. In the event that any application for a CFAP payment resulted from erroneous information reported by the producer, the payment will be recalculated, and the producer must refund any excess payment to USDA. If the error was the producer’s error, the refund must include interest to be calculated from the date of the disbursement to the producer. Further, if USDA determines that the producer’s application misrepresented either the total amount or producer’s share of livestock inventory, or if the CFAP payment would exceed the payment as calculated based on the correct amount of production and share, the application will be disapproved and the participant must refund to USDA all CFAP payments made to the producer with interest from the date of disbursement. Q: Are animals that have been depopulated because of the impact of COVID-19 on processing facilities included in CFAP? A: Assistance to livestock producers has two components – animals sold between January 15, 2020 to April 15, 2020 and livestock inventory subject to price risk on a date of the producers choosing between April 16, 2020, to May 14, 2020. Animals that are a part of a producer’s inventory on the date he/she chooses are eligible for a CFAP payment. Q: How much is USDA spending to directly support producers negatively impacted by COVID-19? A: CFAP will provide $16 billion in direct support for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing
JULY 29-30, 2020 | DODGE CITY, KS Practical and useful learning for cow-calf, stockers, and feeders.
KEYNOTE SPEAKERS:
Brandi Buzzard Frobose
Dave Nichols Nichols Farms
Danette King Amstein
Director of Communications Red Angus Association of America
Principal, Midan Marketing
SESSION TOPICS INCLUDE:
EVENT HIGHLIGHTS:
• Consumer beef purchasing trends before and after COVID-19 • Cattle market outlook for fall/winter 2020 • Representative forage sampling and utilizing NIRS analysis of forages
• 20 Education Sessions • 2 Day Trade Show • Live Cattle Handling Demos • 3 Keynotes
• Is premium nutrition really worth it?
• BQA Certification
• Mid-feeding period morbidity in high performing cattle
• Event social at the Dodge City Days Roundup Rodeo
• Genomics for the commercial cowman
• 1-year subscription to High Plains Journal
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