LMD Aug 2010

Page 1

Livestock “The greatest homage we can pay to truth is to use it.”

MARKET

Digest W

by LEE PITTS

To Those We Leave Behind

– JAMES RUSSELL LOWELL AUGUST 15, 2010 •

www. aaalivestock . com

Volume 52 • No. 8

Who Your Friends Are by Lee Pitts propose a new rule. Before any politician is allowed to vote on a law or rule he or she must first prove they read it. If we are to stop this downward spiral we’re on in this country politicians are going to have to start making their decisions based on facts, rather than which political action committee gives them the most money. When J. Dudley Butler was named Administrator of USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA), the big meat packers, National Pork Producers Council, Smithfield and the NCBA painted a big target on the back of this lawyer from Yazoo County Mississippi. They blasted away at that target in a House Subcommittee ambush and we don’t know if Dudley will survive. It’s easy to see why those who would industrialize ag in this country would want Butler silenced. After all, he has spent much of the past 30 years arbitrating poultry contracts that were written to make the poultry producers serfs on their own land. Couple that with the fact that Butler is going around the country saying things like . . . “We know we have an imbalance of power in some of the industries now.” And as a counterbalance Butler has promised to “reinvigorate” the Sherman Antitrust Act.

I

NEWSPAPER PRIORITY HANDLING

Riding Herd

“Always drink upstream from the herd.” Talk like that just isn’t permitted in this country where big business calls all the shots. Some pundits say the attorney/rancher/administrator will be back in Yazoo County before the New Year. And that, my friends, would be a dirty, rotten shame.

The Last Frontier Butler has got his hands full. The imbalance he speaks of is not just in the beef business. Dairymen contend that major milk buyers are violating antitrust laws and farmers say that Monsanto has a lock on almost all the

genetically modified seed. Butler and Obama say they are on a mission to save rural America. Heaven only knows it desperately needs saving. The number of ranches declined by 352,000 in the 20 years between 1987 and 2007. Down from 1.15 million ranchers to 798,290. At that rate we’ll all be gone in 40 years! Even more telling, the U.S. cattle inventory is at a 36year low and the cattle that are left are in fewer hands. “The U.S. already has lost over 30,000 independent cattle feeders just within the last 14 years,” says Bill Bullard of

R-CALF, “which has severely reduced competition in the U.S. livestock industry — not just in the market where cattle feeders sell to the meatpackers, but in the market where cow/calf producers sell their cattle to feedlots, as well.” Of course, the packers want it to be business as usual in Washington, or in the case of GIPSA, no business as usual. In 2000, the GAO investigated GIPSA and gave it failing marks, and in 2006 both USDA’s Inspector General and the GAO’s issued reports that were so critical of GIPSA that they prompted hearings before the Senate Ag Committee. At these meetings the Congressman acted incensed at GIPSA’s activities. Or lack of them. Remember that fact as you read this story. The 2006 report revealed that the head of GIPSA, JoAnn Waterfield, left office with 50 violations hiding in her desk drawer that she should have taken action on. Waterfield basically told her employees to “do nothing, but shuffle papers and look busy.” In other words, she was the perfect continued on page two

CBB review finds problems with NCBA checkoff spending DROVERS NEWS SOURCE

ll checkoff contractors and subcontractors are subject to compliance reviews and audits. It is the responsibility of checkoff contractors to assure that checkoff funds are being used appropriately, and it is CBB’s responsibility to monitor checkoff contractors. To this end, CBB has the legal responsibility to perform reviews of its contractors periodically, and to oversee and enforce the rules regarding checkoff expenditures. In February 2010, the Cattlemen’s Beef Board (CBB) began the process of conducting a routine compliance review of the National Cattlemen’s Beef Association (NCBA) by engaging an independent CPA firm to perform agreed-upon procedures at NCBA. This firm reviewed NCBA compliance with its agreements to conduct checkoff-funded programs in the areas of beef promotion, research, consumer information and industry information. The compliance review also included compliance of checkoff expenditures of the Federa-

A

tion of State Beef Councils Division of NCBA (Federation). This compliance review included fiscal years 2008 and 2009 as well as the five months ended February 28, 2010. The agreedupon procedures were performed to test: NCBA’s allocation of overhead costs; employee time reporting as a basis for the allocation of salaries and benefits to the checkoff; travel expenses; Federation costs; and subcontractor selection procedures. In addition to Beef Board members and qualified state beef councils, this independent report has been forwarded to USDA-Agricultural Marketing Service, the oversight agency for the beef checkoff, for review and input. Statement By Robert Fountain, Jr., CowCalf Producer, Adrian, Ga. and CBB Secretary-Treasurer: “An independent accounting firm tested charges from NCBA to the beef checkoff in five areas and found many expenses that were either improperly charged to the checkoff or continued on page twelve

e buried my mother last month and in pausing to reflect on her life, I was awed by the changes that have occurred in this country during her 80-plus years of living. It’s hard to imagine but my Mom lived for one third of our country’s lifespan. She went from FDR to Obama, from Adolph Hitler to Osama bin Laden and from the Dionne quintuplets to the Octomom. She began her life just before the Depression and ended it during the worst economic times since then. She was alive when there was no Social Security to catch you when you fell, and unemployment and political corruption ran rampant in this country. Oh well, some things never change, I suppose. My mother’s generation went from Shuffle Off to Buffalo to rap music. From Sinatra to Snoop Dogg. From Brother Can You Spare a Dime to four dollars for a cup of coffee. When Barbara Harding was born there were 123 million people living in this country of ours. Today there are more than 310 million. When my Mom was born you could buy a double dipper ice cream cone for five cents, but you had to work two hours to make that nickel! The average yearly income was $600 and there was no such thing as overtime. I suppose my family lived below what government hacks would call the poverty level these days, but we never knew it. My Mom wanted to stay home and raise her three children but knew she had to support the family, so she created her own business, as a seamstress. She literally worked her fingers to the bone and, to the best of my knowledge, we never “went on the dole.” At my mother’s wonderful funeral service the church was crawling with her beautiful great-grandchildren and I’ve thought about those kids a lot since then. We haven’t done right continued on page eight

www.LeePittsbooks.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
LMD Aug 2010 by Livestock Publishers - Issuu