LMD December 2011 by Livestock Publishers

Livestock “The greatest homage we can pay to truth is to use it.” – JAMES RUSSELL LOWELL DECEMBER 15, 2011 • www. aaalivestock . com

Riding Herd

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Digest Volume 53 • No. 13

by LEE PITTS

Crazy Old-Fashioned Me ome suggest that I am living in the past; that I’m too old fashioned. I’m the first to admit that we have made progress and are a lot better at some things than we used to be. As a society we are not as racist and women are finally getting the rights they should have had all along. We’re more aware of our environment and most of us don’t throw candy wrappers or beer cans out the car window anymore. However, this crazy old-fashioned guy thinks we’ve thrown the good out with the bad. We’ve overdosed on too many things, from pop culture to pills to political correctness. I’m so old-fashioned I feel you shouldn’t buy something unless you have the money to pay for it. How archaic is that! And that goes for our government, too. I’m so stuck in my old ways that I believe if you sign on the bottom line, or make a handshake deal with someone, then you ought to honor your commitment. I feel strongly that if someone is paying you to work eight hours a day then you owe them eight hours of work, and you shouldn’t be talking on your cell phone for two hours of it. I know I sound like my Grandpa when I say that thugs who murder, rape and kidnap little girls ought to be put to death. And the sooner the better. We shouldn’t have to support these beasts until they get out of prison or die. I’m not some Wild West vigilante but would a little common sense and justice in our courts be too much to ask? These days, when obese people are routinely getting lap band surgery, gastric bypasses and having their stomach shrunk, I admit I have some beliefs that seem rather backwards. For instance, I believe that unless you have a glandular problem, if you get fat it could be your fault. Perhaps you are not a victim and McDonalds didn’t cause

S Nothing’s Changed “Don't get mad at J somebody who knows by Lee Pitts

ust as an army wins or loses the next war by its actions during peacetime, our industry is being shaped far into the foreseeable future by what’s happening in Washington, D.C. during this period of prosperity in the cattle business. One only has to look at this country’s recent past to see what happens when citizens gorge on the good times, with nary a consideration about what happens when the party is over. The events of the past 60 days will come back to haunt cow-calf producers. Sure, things are great right now, with a strong export market and record high prices, so what’s there to worry about? Never mind that our exports are largely the result of a low dollar, and the higher cattle prices can be attributed to the smallest cow herd in the last 50 years. Look below the surface and you’ll see beef consumption and rancher population numbers that are plummeting faster than Congressional approval ratings.

Crooks And Liars

NEWSPAPER PRIORITY HANDLING

Barrack Obama was the candidate for change, or so he said. People voted for him because they thought he was the more promising candidate. And the voters were right, in a twisted sort of way, because Obama promised and promised, only to

more than you do. It ain't their fault.” spend his Presidency breaking almost every promise he made. The Chicago-trained politician offered false hope, saying he would “fight to ensure family and independent farmers have fair access to markets, control over their production decisions, and transparency in prices.” He promised to curb the power of the big four meat packers who control well over 89 percent of production. His USDA and Jus-

tice Department spent countless hours and taxpayer’s money traversing the country to “listen” to ranchers beg for the government to enforce the Packers and Stockyards Act. For the first time in this writer’s career it looked like something would actually be done about captive supplies, the packer’s practice of staying off the cash market by killing cattle it held captive, and then pricing their formula or

captive cattle on the live market it helped drive down. Cattlemen proved in a court of law that Tyson used captive supplies to price fix. They won $1.28 billion in damages until a judge ruled that it’s all right for an individual to be cheated, just as long as the marketplace as a whole was not harmed. But what the heck does that mean? That was the packer’s loophole and the new GIPSA regs proposed by the Obama Administration were going to close it. But it all proved to be nothing more than a traveling circus. At the last minute, under pressure from the big meatpackers and their lackeys, the NCBA and National Pork Producers, Obama and Vilsack caved in. Apparently they had their packer-purchased hearing aids turned off during those “listening” sessions. They were just toying with us. On Oct. 28, 2011, Ag Secretary Vilsack waved the white flag and continued on page two

Sierra Club leader departs amid discontent over group’s direction Sierra Club Chairman Carl Pope, whose leadership has stirred dissent, steps down. Some believe the organization has compromised its core principles by LOUIS SAHAGUN, Los Angeles Times

he chairman of the Sierra Club, one of the nation’s most influential environmental groups, has stepped down amid discontent that the group founded by 19th century wilderness evangelist John Muir has strayed from its core principles. The departure of Carl Pope, 66, a member of the club for more than 40 years, comes as the nonprofit group faces declining membership, internal dissent, well-organized opponents, a weak economy and forces in Congress trying to take the teeth out of environmental regulations. Pope became chairman of the club in 2010, after serving for more than 17 years as executive director. He was replaced by Michael Brune, 40, a veteran of smaller activist groups, who has pledged to concentrate on grass-roots organizing, recruit new members and focus on such issues as coal-fired power plants. “We have different approaches,” Brune said of his relationship with his predecessor.

Pope said he will leave his position as chairman to devote most of his time to “revitalizing the manufacturing sector” by working with organized labor and corporations. That emphasis caused schisms in the club, most notably when he hammered out a million-dollar deal with household chemical manufacturer Clorox to use the club’s emblem on a line of “green” products and, more recently, with its support of utility-scale solar arrays in the Mojave Desert, the type of place the club made its reputation protecting. “I’m a big-tent guy,” Pope said in an interview in the group’s San Francisco headquarters. “We’re not going to save the world if we rely only on those who agree with the Sierra Club. There aren’t enough of them. My aim is getting it right for the long term. I can’t get anything accomplished if people think: ‘This guy is not an honest broker. He’s with the Sierra Club.’” Pope led the Sierra Club’s efforts to help continued on page four

continued on page twelve

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December 15, 2011

Nothing’s Changed officially announced he was surrendering to the packers. It turns out that the teeth he was going to put back into the Packers and Stockyards Act were false teeth. Now the USDA has announced that it will start the protracted GIPSA rule making process all over again (just like they did with mandatory animal ID). At least that’s the story the Obama Administration hopes will placate voters until after the next election.

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The response to USDA’s capitulation was angry beyond description. “Secretary Vilsack surrendered to all the corporate packers’ demands, thereby rendering his enforcement agency — GIPSA — impotent in its efforts to prevent corporate packers from engaging in unfair, deceptive and anticompetitive practices that already are forcing independent cattle feeders out of business,” said R-CALF USA CEO Bill Bullard. The founder of the Organization for Competitive Markets, Fred Stokes, said, “The USDA told us, ‘I understand your situation, I feel your pain.’ What happened to all that?” “The final version of these rules, leaves ranchers as powerless as before. We always lose,” said Mike Callicrate. “If we win, we still lose, because these big corporations get the final vote. They own this government.” Mabel Dobbs, Livestock Committee Chair for the Western Organization of Resource Councils said, “WORC members had high hopes for these rules based on the content of the original proposal and have been waiting for their final publication for over 18 months with great anticipation. With this final rule, USDA and the Obama Administration have let down the independent farmers and ranchers of this country.” Instead of “change” we got business as usual from Obama. BIG BUSINESS!

Occupy Greeley Pork packer Smithfield Foods, Tyson, Cargill, and Brazilian behemoth JBS SA, with U.S. headquarters in Greeley, were elated of course, and just to prove that they still run things, they wasted no time in crashing the cattle market once again. Says Bill Bullard, “Our marketing committee witnessed an unexplained, sharp decline in cash cattle prices from Friday, October 28 through Tuesday morning, November 1. This decline occurred when wholesale beef prices were increasing. Early on Tuesday morning, the corporate packers, who rarely buy cash cattle early in the week due to their tremendous control over the market, initiated a buying spree and purchased 92,000 cattle at the severely depressed price. No sooner had the corporate packers ceased buying when the cattle futures market unex-

continued from page one

plainably jumped the limit up, and the temporarily depressed cash cattle market immediately recovered.” R-CALF is requesting that three government agencies initiate comprehensive investigations into the corporate packers’ role in this unexplained market disruption. “We believe,” said R-CALF, “the facts show this was a strategic ploy by the corporate packers to manipulate the cattle market and harm independent ranchers-feeders, many of whom continue to market high quality cattle in the cash market. The corporate packers want nothing less than to drive these ranchers-feeders who sell high-quality cattle in the cash market out of business, and the Secretary of Agriculture is helping them do it,” concluded Bullard.

Now the USDA has announced that it will start the protracted GIPSA rule making process all over again (just like they did with mandatory animal ID). R-CALF estimates that total damages arising from just this one incident were from $3.2 million to $5.6 million. Thanks to Obama and other liars in his administration we can now look forward to much more of the same in the future. After all the promises, pontificating, and play-acting, absolutely NOTHING has changed. The crooks are still in charge.

False Teeth If you doubt that the futures market is a corrupt casino run with our government’s blessing, consider the bankruptcy of MF Global Holdings Ltd., on October 3rd. The Wall Street investment bank was run by Obama’s buddy Jon Corzine, and was the nation’s third largest futures trading clearinghouse. It appears now that 1.2 BILLION in customer’s cash has somehow gone missing while the government’s watchdogs, the Commodities Futures Trading Commission, the Securities Exchange Commission, and the Justice Department were oblivious to it all. Not only do they have no teeth . . . they are blind as well! At the same time that this heist was discovered, the Transactional Records Access Clearinghouse at Syracuse University used the Freedom of Information Act to find that the federal government will file the lowest number of fraud prosecutions in at least 20 years. No wonder the continued on page three

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December 15, 2011

Nothing’s Changed crooks feel so safe stealing our money! Speaking of stealing, on November 17, Barnhardt Capital Management announced they were voluntarily going out of business as a broker. Ann Barnhardt told her customers why: “I could no longer tell my clients that their moneys and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy. “The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100 percent liquid – even as their clearing firm collapsed and was quickly

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replaced by another firm within the system. Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the nonmargined cash held by customers of his firm. Let’s not sugarcoat

broker or facilitate customer engagement in what is now a massive game of Russian Roulette.” “And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets

The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets. this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to

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as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is nonexistent, instead replaced with godless, criminal political cronyism.” Oh, and by the way, this is the same futures and options market that the packers use to establish the price for your cattle!

Prosperity’s Poison While you were enjoying a rare period of prosperity, a panel of three diplomats at the UN’s World Trade Organization ruled that our COOL laws are illegal. That’s right, according to a UN panel which consisted of a diplomat from Pakistan, the country that hid Osama bin Laden, a diplomat from Switzerland, and a former WTO employee, the WTO ruled that we can’t tell our customers where their beef came from.

R-CALF’s Mike Schultz responded, “We’re not surprised that a panel of countries that want to weaken the U.S. would support complaints by countries that want more control over our U.S. food supply. The WTO is trying to usurp our nation’s sovereignty. Since when do we allow an international tribunal to dictate to our U.S. Congress what is or is not a legitimate objective of providing information to U. S. citizens?” Of course the NCBA was elated by the news. NCBA’s Colin Woodall said, “This is a strong ruling from the WTO that proves COOL was not only a disservice to U.S. cattlemen and women but also contained farreaching implications for two of the most important trade partners for U.S. agriculture. U.S. livestock producers have yet to see any financial benefit from COOL provisions.” At the same time Mr. Woodall was saying that U.S. ranchers received no benefit from COOL, the Canadian government announced that Canadian beef imports into the US have fallen by 23 percent since COOL was enacted. We’d remind Mr. Woodall, and others with short memories, that the last time we enjoyed prosperity in our business was when R-CALF stopped Canadian cattle at the border due to the danger from BSE, proving that when we have fewer Canadian cattle the prices for our cattle go up. It should be an easy concept to grasp, even for an NCBA employee. While all this was going on the U. S. Farmers and Ranchers

Page 3 Alliance (USFRA) received more than six million dollars from checkoff programs during FY 2011 to promote factory farming. (It’s supposed to be against checkoff rules to promote one form of production over another.) You’ll recall that USFRA is a confederation of more than fifty BIG AG advocates who want to brainwash the American consumer into believing that industrialized ag and factory farms are benign, that the food they produce is healthy and that their practices are environmentally safe. And they want to use the rancher’s and farmer’s good name to do so. “Family farmers and ranchers are compelled to fund these commodity programs,” says OCM, “but it appears their money is being used to advance an agricultural structure which would abolish independent family agriculture.” To review if we may: your checkoff dollars are keeping an organization alive, the NCBA, that does not believe you are entitled to either country of origin labeling or fair markets. Both of which they have lobbied against. We hate to be buzz-killers by bringing any of this up while you’re making money, and we’d guess you don’t want to hear any of this bad news anyway; especially at this time of year. Times are good and we’ll deal with all this other stuff later. When it’s not Christmas time. In the meantime, Happy New Year and party on cowboys. Party like there’s no tomorrow . . . because for a good chunk of you, there won’t be.

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Sierra Club Leader Departs protect 10 million acres of wilderness, including California’s Giant Sequoia National Monument, and brought litigation challenging the right of thenVice President Dick Cheney’s energy task force to secretly hash out energy policy with major oil companies. Pope also co-wrote California’s Proposition 65, which allowed citizens to sue polluters if they failed to comply with the law. More recently, he helped block 150 proposed coalfired power plants. But his tenure was marked by controversial decisions that revealed the costs and political consequences behind the brand of environmental activism he practiced. Acrimony remains over the 2008 Clorox deal, which brought the club $1.3 million over the four-year term of the contract, according to Pope. Many of the rank and file felt Pope diminished the role of chapter experts and volunteers who have sustained the organization since Muir first championed California’s Sierra Nevada and an expanding list of American wild places, favoring paid staffers

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and attorneys and chumming with political players such as United Steel Workers President Leo Gerard and attorney Robert F. Kennedy Jr.

graduate acknowledged that big challenges await his successor, who will manage a budget of nearly $100 million and a staff of about 600. Pope earned a salary of $207,374 in 2010, the last year for which figures were available.

. . . the nonprofit group faces declining membership, internal dissent, well-organized opponents, a weak economy and forces in Congress trying to take the teeth out of environmental regulations. The longest-serving executive director in club history, Pope pulled the group closer to large donors and redirected efforts toward fighting climate change over narrowly focused campaigns to protect wild places. The group’s support for utility-scale solar development, which threatens such species as the desert tortoise, captures the philosophical shift that occurred under Pope. “If we don’t save the planet, there won’t be any tortoises left to save,” Pope said. The 66-year-old Harvard

The Sierra Club leadership, which is elected by members, sought to minimize the issue of philosophical differences between Pope and Brune and to focus on a smooth transition. “We’re fortunate that the two of them work so well together, and that Carl has done such a great job of passing the torch,” said Sierra Club Board President Robin Mann, who praised Pope’s “groundbreaking work,” including developing alliances with labor that “put us in a whole different position in terms of influence.”

December 15, 2011 Brune, who has undergraduate degrees in economics and finance, previously worked for the Rainforest Action Network and Greenpeace, groups known for scrappy and theatrical anticorporate tactics. That background emerges in his view of the group’s relationship with Clorox, a company that has had a checkered environmental past. “We’re done with Clorox,” Brune said in an interview. “The contract with Clorox runs out in December, and by mutual consent it will not be renewed.” “I’m not going to bring any deals to the board that would negatively impact the Sierra Club brand,” he added. “Nor will we associate with any company that has a green product line and also produces products that can damage the environment in ways they are not willing to address.” Pope had blunt words for critics of the Clorox decision: “I could predict with 90 percent certainty where somebody would stand on the Clorox controversy by knowing one bit of demographic data. The people in the Sierra Club who had significant concerns were between 50 and 68. They were people who cut their teeth on the counterculture

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greening-of-America anti-business stuff of the 1970s.” That assessment rankled Brune, who will have to address a decline in paid membership, from 714,000 in 2005 to 616,000 today. “Over the next year we will be adding a million members and supporters,” Brune said. “In order to get off coal, one of the biggest sources of greenhouse emissions, we’ll need an army of

Pope also co-wrote California’s Proposition 65, which allowed citizens to sue polluters if they failed to comply with the law. well-trained volunteers, as well as lobbyists and lawyers. Our members will be finding new members as tenacious and devoted to finding solutions as they are. We’ll be activating and inspiring everyday people who genuinely care about the environment.” That kind of talk “is refreshing,” said Joan Taylor, a Sierra Club activist of 40 years. “We desert activists felt the club had abandoned the desert in the name of ramping up utility-scale renewable energy projects,” Taylor said. “We don’t need the club beholden to big labor and big corporations. That’s a huge error in judgment. Eventually, it can’t help but affect what you can say and what you can do.” Ed Mainland, co-chairman of Sierra Club California’s energyclimate committee, said: “I’m hopeful there will be a change of course. We shouldn’t be in bed with industry and utilities. Big donors start dictating policy.” Pope agreed, to a point. “The biggest source of legitimate unhappiness,” Pope said, “has been that after 9/11, the Sierra Club and all other membership organizations started getting less and less individual donations — so we became more reliant on money that came with strings. That’s the reality of the world.” The club has received hefty financial contributions over the last two decades, including more than $100 million from cleanenergy investor David Gelbaum. In July, New York Mayor Michael R. Bloomberg’s main charitable organization announced it would donate $50 million over four years to the club’s campaign to shut down coal-fired power plants. Pope acknowledged that many people in the organization disagreed with his fundraising philosophy. “But my view and the view of the board,” Pope said, “was that accepting some loss of flexibility for some increase in clout was a risk worth taking.”

December 15, 2011

“America’s Favorite Livestock Newspaper”

Tax Implications of Drought Induced Livestock Sales by PAUL H GUTIERREZ, JERRY M. HAWKES, and CASEY DANLEY, New Mexico State University reviewers DAVID ANDERSON, Texas A & M University and JEFF TRANEL, Colorado State University published by THE LIVESTOCK MARKETING INFORMATION CENTER

f a producer is forced to sell livestock, in excess of normal levels due to shortages of water, feed or other consequences of drought, the income tax on the gain from the sale of those animals may be postponed. Producers have two distinct tax options available to them in this circumstance: ■ Tax Treatment #1, Code Section 451(e): The election to postpone reporting the taxable gain on the additional sales of any livestock for one year; or ■ Tax Treatment #2, Code Section 1033(e): The election to postpone, and altogether avoid, paying taxes on the gain from the sale of breeding, draft, or dairy animals if they are replaced within a specified time frame. Both these Tax Treatments require that drought has caused sales to exceed the normal level. Eligibility for the two different treatments depends on the class of livestock sold and whether the federal government has designated your area as eligible for assistance.

ment (e.g., the Federal Emergency Management Agency or the Small Business Administration), or a Department of Agriculture agency (e.g., Farm Service Agency). The sale of livestock can occur before or after an area is designated a disaster area. ■ You total the number of animals sold this year and the number sold because of the drought. Any gain realized from weather-related sales must be provided. Income from normal sales is reported on this year’s Schedule F Federal Tax Form

while excess sales are reported on next year’s Schedule F. Livestock held for sale (e.g., steers, feeder heifers) can only qualify for tax treatment #1 (a one-year postponement in drought-induced income). Not all income needs to be deferred to the following year though. An advantage to Tax Treatment #1 is that some drought sale income can be taken as income for that year and some can be deferred to the following year. How much income is to be reported in the year of the sale or the following

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year must be decided by the due date of the return for the tax year in which the drought sale occurred. Another advantage to this treatment is that the tax basis for purchased replacements is not reduced by the amount of the postponed gain. Thus, if a raised cow is sold for $700 and a replacement is later purchased for $700, the entire $700 paid for the replacement is depreciable. If prices are low and you expect to be in a zero or low marginal tax bracket, counting some if not all drought induced sales as income for the drought year may likely be your best alternative. Keep in mind that any drought-assisted aid will need to be declared as income for the tax year that monies are

received regardless of the method used for reporting livestock sales. See below for an example of the deferred tax treatment method. Example of Tax Treatment #1 [election under I.R.C. 451 (e)] Every year in the fall, Rancher Gilbert normally sells 75 yearlings, 12 cows, and 1 bull (most recent 3-year average). Due to the drought this year, Gilbert sold 75 yearlings in May along with 12 pairs (24 head). In July, Gilbert sold 25 cows, 3 bulls, and 50 lightweight calves that were born earlier in the year. Normally, Gilbert doesn’t sell any pairs or calves that are less than a year old. continued on page six

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Tax Treatment #1, Code Section 451(e)— ALL LIVESTOCK Reviewers: • David Anderson, Texas A & M University • Jeff Tranel, Colorado State University State Extension Services in cooperation with USDA: The deferred sales receipt method has the broadest class of animals that qualify. That is, only breeding livestock are eligible for the involuntary conversion tax method, which follows. Yearlings and even “sporting livestock” are potentially eligible for the deferred sales method described here. Income from livestock sold in excess of normal sales, whether raised or purchased, may be deferred for up to one year if the following are satisfied: ■ Your (the taxpayer’s) principal business is farming or ranching. ■ You utilize the cash method of accounting. ■ You state you are making an election under I.R.C. section 451 (e) and attach it to your drought-year return. You also attach a statement explaining the reasons that forced sales were necessary (lack of forage, water, feed, etc.). ■ You provide evidence that “excess livestock” sales are due to drought and not a sell-off that is beyond drought-induced conditions. A three-year average is used to compute normal sales levels when making the calculation for “excess livestock” sold. ■ Your county or a neighboring county is designated as eligible for federal disaster assistance. Drought designation may be made by the president, an agency of the federal govern-

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Tax Implications Sale prices were $825/head for the yearlings, $750 average for the 15 pairs sold, $650/head for the 30 cows sold, $780/head for each bull, and $412/head for calves that were less than a year old. Under Tax Treatment #1, an election is made for each generic class of animals (e.g. cattle, sheep), not specific to an animal’s age, sex, or breed. Thus, the average sale price for cattle is determined by dividing the total income received by the number of all cattle sold ($113,315 / 177 hd. = $640/hd.). This average is multiplied by the excess number

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sold (i.e., 177-88=89 head) due to drought to give the “excess sales.” In this example, 89 hd. x $640/hd., or $56,960 in sales may be deferred for up to one year. The election of how much income to postpone must be made in the tax year of the drought sale. After accounting for drought assistance benefits and other income and expenses, which are often a lot higher in drought years, a plan should be devised for minimizing tax liabilities. The decision to buy breeding stock or retain more heifers

in the following year needs to be considered in determining the amount of income to postpone for one year. A disadvantage of Tax Treatment #1 is that you must rely on your area being declared eligible for federal disaster assistance. Also, the “involuntary conversion” tax treatment below for breeding animals may be preferred since it allows for droughtinduced gains to be deferred for two to four years or one year beyond the one-year postponement described above. Code Section 451(e), provides for the one year postponement of gain on the sale of all classes of livestock.

If you are planning on selling bulls this spring, or next spring . . . You better be placing your ad in the Livestock Market Digest! The most likely bull buyers for spring 2012 will come from where it has rained. Where is that? The West Coast and Northwest. Where does the Livestock Market Digest cover the most? The West Coast and Northwest! The Livestock Market Digest has readers across the nation, and a great number of those readers are in California, Orgeon, Washington, Montana and Wyoming!

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Contact MICHAEL WRIGHT at: michael@aaalivestock.com or at 505/243-9515, ext. 30. Or, email CAREN COWAN at: caren@aaalivestock.com

December 15, 2011

Tax Treatment #2, Code Section 1033(e)— INVOLUNTARY CONVERSION, BREEDING CATTLE Tax treatment #2 fits under the terminology of “involuntary conversion” in the tax guides. Gains from draft, breeding, or dairy animals sold as the result of a drought do not have to be recognized if the proceeds are used to purchase replacement livestock within two years from the end of the tax year in which the sale takes place. An advantage to this treatment is that your area need not be declared a disaster area by the federal government. Basic rules of this treatment, many similar to Tax Treatment #1, include the following: ■ Your drought-induced sales must exceed a normal three-year average. ■ You must purchase replacement livestock within two years of the end of the tax year of sale. However, counties having Presidential disaster declaration may have four years to replace livestock. ■ There is no minimum holding period. That is, bred heifers that you may have just purchased last year qualify as breeding livestock. ■ You must use replacement livestock for the same purpose. The tax basis of the replacement livestock is equal to the basis of the sold livestock plus an additional amount invested in the replacement livestock that exceeds the proceeds from the sale. An area need not be declared a federal disaster area, but there must be evidence that a drought occurred. For example, newspaper clippings or rainfall reports are generally sufficient proof. Government designation that the county is in a disaster area is sufficient and will allow for four year replacement period. ■ You must provide a computation of the number and kind of livestock by category and the accompanying gain realized from drought sales. When you buy replacements, attach to the tax return the date replacements were purchased, the cost of replacement animals, and the number and kind of replacements. Carefully consider your future intentions for rebuilding your herd when opting for the involuntary conversion treatment. Raised replacements are not eligible for “replacement livestock.” Also, attention needs to be given to the selling price and expected purchase price. Consider the example of involuntary conversion below. Example of Tax Treatment #2 [election under I.R.C. 1033 (e)] Rancher Casey normally sells 20 cows and bulls from her beef herd every year, but this year she sells 50, 30 more than normal due to the drought. The average selling price for all 50 head is $675/head. Thus, Casey defers the income from 30 head or $20,250 for this year. The 30 head have a zero basis because

the cows were ranch raised and a cash accounting system was used. If in the following two years Casey buys only 25 cows to replace the 30 sold, at a purchase price of $1,000/head, or $25,000, the resulting tax basis, or depreciable basis for the 25 replacements would be $325 per head ($0-$1,000-$675, the tax basis of breeding animals sold, plus or minus the difference between the replacement price and the sale price). Furthermore, Casey’s 25 head of replacement cows in valued costing in excess of the $20,250 deferred income would result in no taxable income from the earlier drought forced sale of cows. If Casey purchased replacements for $875/head, or $21,875 the tax basis for the 25 replacements would be $200/hd., and again no taxable income from earlier drought forced sale. But if Casey purchased 25 replacements for $625/head, or $15,625 then a gain of $4,625 ($20,250 deferred — $15,625 replacement) would have to be filed to an amended tax return for the drought year and taxes paid on the gain. Not a likely situation in today’s cattle market. Keep in mind that any gains associated with feed assistance or indemnity payments have to be claimed for the tax year that they are received. It is conceivable that feed assistance combined with having to file an amended return of additional income could push a rancher into a higher marginal tax bracket for a drought year than planned.

Additional Resources Since every tax situation and ranch plan is different, no standard recommendation can be given as to whether the one-year postponement is preferred to the two-year involuntary conversion. Close consultation and planning with a tax advisor or accountant is likely to pay a heavy dividend if you have or plan to make substantial drought sales this year. Please refer to the Farmer’s Tax Guide (Publication 225) or contact the IRS (1-800/829-1040) for more current and complete tax information. ■ The Farmer’s Tax Guide along with other tax forms and publications are available on the Internet at http://www.irs.gov Current information related to drought-assisted aid programs can be found at http://www.fsa. usda.gov. ■ Additional drought management resources can be found at http://aces.nmsu.edu/drought/. ■ A Fact Sheet is available on the Rural Tax Website with examples: http://www.ruraltax. org/files/uploads/Livestock%20S ales%20(RTE%202010-09).pdf, titled, Weather Related Sales of Livestock. ■ Livestock Marketing, Information Center, PO Box 25566, Denver, CO 80225, phone: 303/236-0460, website: http:// www.lmic.info.

December 15, 2011

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Wyoming expands brucellosis testing and research from the Cattle Business Weekly

hen two heifers on a ranch near Meeteetse, Wyo. tested positive for exposure to brucellosis this fall, technicians from the University of Wyoming State Veterinary Laboratory quickly tested more than 320 other cattle in the area in addition to the 250 tested in the source herd and determined that the disease had not spread. A year earlier, more than 4,200 animals were tested shortly after brucellosis was reported in northern Wyoming, says Walt Cook, who coordinates brucellosis research at UW. The ability to conduct such rapid testing is one example of how legislative support to combat brucellosis is paying off to the benefit of the state’s cattle producers, says Cook. He says brucellosis is a bacterial disease that can cause domestic cattle, elk and bison to abort their calves. Elk and bison of the greater Yellowstone area of Wyoming, Montana and Idaho are a reservoir of brucellosis in the United States, so the disease is a concern for cattle producers in that area. “A few years ago, Wyoming’s State Veterinary Laboratory would not have been able to make such a quick diagnosis to determine the presence or absence of brucellosis in so many cattle, but the lab’s capabilities have expanded in recent years to allow for rapid testing of large numbers of animals,” says Cook. “Wyoming has also expanded its routine brucellosis testing surveillance in the area, and we are now able to identify positive exposure to the disease before it can spread.” In October, the state veterinary laboratory tested nearly 9,400 animals for brucellosis. Cook says this included animals under quarantine as a result of being affected or that had contact with affected herds as well as those tested for general surveillance and to meet Wyoming Livestock Board requirements. Cook attributes much of the success to the collaboration among UW, the Wyoming Livestock Board and the Wyoming Game and Fish Department. “This spirit of cooperation is somewhat unique and very valuable for brucellosis control and research,” says Cook. Cook assists College of Agriculture and Natural Resources Dean Frank Galey in his role as chairman of the Wyoming Brucellosis Coordination Team and the Consortium for the Advancement of Brucellosis Science (CABS).

Happy Holidays!

CABS is dedicated to finding additional brucellosis funding sources and funneling those resources to the most appropriate areas, Cook says. It oversees and coordinates research to develop vaccines, vaccine delivery strategies and diagnostic testing for brucellosis in cattle, elk and wild bison. Two teams have been formed, one involving scientists nationwide who have expertise in this topic, and the other consists of stakeholders interested in seeing the vaccine and tests developed. The Wyoming State Legislature in 2010 approved $200,000 to initiate the consortium, and

$400,000 in one-time funding was approved during the 20112012 biennium to support vaccine research. UW researchers are working to develop a more effective brucellosis vaccine and improved diagnostic tests. Current vaccines are marginally effective at best, Cook says, but he added that assistant professor Gerry Andrews and his team in the Department of Veterinary Sciences have developed good vaccine candidates. Additional research is intended to develop a rapid, easy to use, and more accurate animalside test for brucellosis that would permit quick identifica-

tion rather than holding animals, particularly wildlife, pending the results of lab tests. Support for this research will help make UW competitive for CABS funds when the consortium is able to attract outside support. Development of a better vaccine is not likely to be economically feasible in the private sector. The market for this sort of vaccine, with its potential use in only three mountain states, would not justify the costs of research and development that will be required, Cook said. The United States Animal Health Association sponsored the “Laramie Agenda” that pro-

vides a roadmap for improved vaccines and improving vaccine delivery and diagnostic testing. The agenda suggests steady funding to assemble and manage resources and direct the consortium needed to do the research. Such funding would support continued research to develop a more effective vaccine, and also continue an ongoing project with a number of producers to see how often adult animals will require re-vaccination with the currently available vaccine to maintain immunity from the disease. SOURCE: UW Public Relations

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AT ROSWELL LIVESTOCK AUCTION ROSWELL, N.M. • 575/622-5580 Cattle may be viewed Friday, Feb. 24, 2012 at Roswell Livestock Auction This sale offers you some of the highest quality Brangus in the Southwest! The “good doing” kind. BUY DIRECT FROM BRANGUS BREEDERS! NO HIGH-PRICED COMMISSION MEN TO RUN THE PRICE UP!

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Livestock Market Digest

Page 8

December 15, 2011

NMSU, Texas AgriLife Extension to host Southwest Beef Symposium January in Roswell attlemen in the Southern High Plains are facing many challenges presented by Mother Nature and increased costs of production. The Southwest Beef Symposium will focus on defining the state of the beef industry in the region amidst several ongoing natural disasters, evaluating lessons learned from major events impacting the beef industry in 2011, and developing management plans to ride out the challenges. The Southwest Beef Symposium is a collaboration of New Mexico State University Extension specialists and the Texas AgriLife Extension Service. Location of the event alternate yearly between venues in West Texas and eastern New Mexico. The eighth meeting of this annual symposium will be Tuesday and Wednesday, January 1718, 2012, at the Roswell Convention Center, 912 North Main St., Roswell. “There were numerous lessons learned in 2011 across multiple avenues of the industry,” said Manny Encinias, NMSU Extension beef cattle specialist stationed at NMSU’s Clayton Livestock Research Center. “This year’s symposium will give attendees an optimistic insight of opportunities that lie ahead in the industry, as well as provide management framework to minimize risk back at the ranch.” In the opening session, 1 p.m.

Tuesday, January 17, Doug Southgate, an agricultural economist at Ohio State University will discuss the challenge of meeting global demand for livestock products and other food. “Even though population numbers and per capita consumption of food are not growing as fast as they used to do, global demands for edible goods, especially beef and other livestock products, will be much higher in 2050 than today,” said Southgate, who collaborated with two coauthors in the recently completed second edition of The World Food Economy published by John Wiley & Sons Inc. in 2011. “These demands can be met, partly through increases in agricultural lands use in Africa, South America and elsewhere, but mainly through technological improvement that raises yields,” Southgate said. “Better technology caused food supplies to go up faster than food consumption during the second half of the 20th century, when increases in the population were without historical precedents. Technological gains can have the same beneficial impact in the decades to come.” Other topics to be addressed the opening day are “Cattle Marketing: Lessons Learned from Eastern Livestock” by Paul Colman of Frontera Feeders, “Market Outlook” by Paul Gutierrez of NMSU, and “Record Cattle

Prices: So Why Record Low Herd Numbers” by Stan Bevers of Texas A&M University. The first day will conclude with a panel of ranchers discussing “Fighting the Battle and Winning the Wars.” The panelists will be John Welch, chief executive officer of Spade Ranches; Gene Whetten, ranch manager of Adobe Ranch in Magdalena, New Mexico; Houston McKenzie of McCamey, Texas; and Dennis Braden, manager of Swenson Ranches in Stamford, Texas. Wednesday programs will be divided into a morning session focusing on putting the ranch back together after wildfire and the drought, and the afternoon session addressing nutrition management and challenges on ranches in the Southwest. “The key to putting the ranch back together comes from what we learned from our experiences encountered in 2011,” Encinias said. Dave DeBois, New Mexico state climatologist, will provide a glance at what the models and predictions suggest will translate for 2012 weather in the Southwest. In other presentations Nick Ashcroft, NMSU Extension range management specialist, will speak on how rangeland and natural resources are likely to respond after wildfires and prolonged drought; Bevers will discuss restocking and what a

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rancher can afford to pay for cows and bulls; and Brayden and Encinias will share what they each learned from their recent experiences managing resources, cattle and people during catastrophic wildfires on ranches they managed in Texas and New Mexico. Before lunch John Wenzel, NMSU Extension veterinarian will provide some helpful tips and ideas on preparing an emergency management plan for the ranch, which can be activated in case of a natural disaster or agriculture-related emergency. “Even during the non-drought years, developing a sound nutrition program is vital,” Encinias said. “Wednesday afternoon’s programs will bring together multiple components that will help producers put a nutrition program together for their operation.” Presentations will include “Southwest Forage Quality:

What we’ve measured over 20 years” by Kent Mills, nutritionist with HiPro; “How do I figure out what to feed?” by Ted McCollum, beef cattle specialist at Texas AgriLife Research and Extension Center in Amarillo; “The FRAMS system: Drought management new technology on the horizon” by Bruce Carpenter, Texas AgriLife Extension livestock specialist at Fort Stockton; “Grazing Behavior: What we are learning with GPS” by Derek Bailey, director of NMSU’s Chihuahuan Desert Rangeland Research Center; and “Dietary Interaction of Cattle and Elk Following Fire and Drought” by Sam Smallidge, NMSU Extension wildlife specialist. Registration fee is $50, which includes steak dinner on Tuesday night that is sponsored by the New Mexico Beef Council, lunch on Wednesday, refreshment and a symposium proceedings book. Pre-registration is requested by January 11, 2012. For more information, contact Encinias at 575/374-2566 or Bruce Carpenter at 432/3368585. A schedule of events, speaker information, lodging information and on-line registration is available at http://swbs.nmsu.edu.

Coals Heat Up at the Chuck Wagon and Dutch Oven Cook Offs rue cowboy cuisine doesn’t require any electricity. The Arizona National Livestock Show will hold the Ninth Annual Chuck Wagon Cook Off on December 30, 2011 and the First Annual Dutch Oven Cook Off December 31, 2011 at the Arizona State Fairgrounds. Chuck Wagon camps travel from all over the Southwest to fire up some good cowboy grub. The “camps” consist of an authentic old-style wagon and a crew that will be doin’ the cookin’ with cast iron pots. Thirty two hundred dollars will be awarded in prize money for the categories of Best Trail Wagon, Best Ranch Wagon as well as the best meat, beans, potatoes bread, and cobbler. Come on over awhile and chat by our fires. Make sure you get your tickets early and beat the stampede, as tickets are limited! Chuck Wagon meal tickets are $10 per person which includes a beverage and they will go on sale December 1. Bring your family and experience a part of the Old West! The Dutch Oven Cook Off is a different type of event than the Chuck Wagon Cook Off, consisting of three dishes. This event will take place December 31. Each team will submit their recipe prior to the cook off for the dessert, bread, and main dish they will be preparing. They will be working with charcoal, while the Chuck Wagon teams who would like to also compete able to use hardwood coals. This style of cooking leads to

the heat management of the coals which you might think is something easy to do but there is an art to this technique to make sure your dish comes out just perfect! Purchase a tasting plate for $5 to enjoy the amazing dishes! You will also have an opportunity to walk around and watch the teams preparing their dishes for the competition as well as attending demonstrations throughout the day to learn more about the cooking process which might intrigue you to start cooking in a Dutch oven at home. The Dutch Oven Cook Off is sanctioned by the International Dutch Oven Society (IDOS). The winner from this cook off will be eligible to enter into the World Championship Cook Off, which is held in March 2012 in Utah as part of the Internationals Sportsman’s Expo (ISE). Admission to the Arizona National Livestock Show is $10 per car, which includes parking and admission. Chuck Wagon Cook-off tickets are limited and sell fast so don’t wait. The Chuck Wagon Cook-off is just one of the many exciting events taking place during the 64th Annual Arizona National Livestock Show, December 29–31, 2011. The Arizona National Livestock Show, Inc. is a non-profit organization dedicated to supporting youth and educating the public about the importance of agriculture and livestock through the presentation of a premier livestock show. For more information, visit www.anls.org, or call the Arizona National office at 602/258-8568.

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December 15, 2011

QUESTIONS & ANSWERS:

Ultrasound and DNA THE USDA, AGRICULTURAL RESEARCH SERVICE, U.S. MEAT ANIMAL RESEARCH CENTER (USMARC) AT CLAY CENTER, NEBRASKA, IS A HUB OF BEEF GENETIC RESEARCH. DR. LARRY A. KUEHN, PHD, RESEARCH GENETICIST FOR USMARC ANSWERS A FEW BASIC QUESTIONS ABOUT DNA, ULTRASOUND, AND CARCASS TRAIT IMPROVEMENT

How is DNA information incorporated into EPD predictions?

Q: A:

Right now the beef industry has been using DNA information to develop a prediction of genomic merit based on the animalâ&#x20AC;&#x2122;s genotypes. DNA companies provide a number, or score, that the animals can be ranked on, based on genomics. The DNA score then becomes another trait in the genetic evaluation analysis just as ultrasound is another trait in the analysis of actual carcass data. Thatâ&#x20AC;&#x2122;s basically what Angus is doing to run their genetic evaluation with a DNA score (molecular breeding value) as a second trait that adds accuracy to the trait of interest â&#x20AC;&#x201D; the actual carcass measure. Multiple trait methodologies have long been used in genetic evaluation programs. It has been the principal methodology used

So far, when weâ&#x20AC;&#x2122;ve implemented DNA marker tests using large marker arrays (>50,000 markers genotyped on each animal), they have seemed to work best (accounted for the most variation) if theyâ&#x20AC;&#x2122;re developed on the same breed theyâ&#x20AC;&#x2122;re applied on. The breed with the most capacity to do that so far has been Angus. I mentioned earlier that they have 50-60 percent genetic correlations between DNA score and actual carcass measures â&#x20AC;&#x201D; they achieve that correlation because they have data that was trained on other Angus. Their tests are very

continued on page twelve

29-31 â&#x20AC;&#x201C; Arizona National Livestock Show, Phoenix

January 2012 5-22 â&#x20AC;&#x201C; National Western Stock Show, Denver, CO 13-Feb 4 â&#x20AC;&#x201C; Fort Worth Stock Show & Rodeo, Ft. Worth, TX 17-18 â&#x20AC;&#x201C; Southwest Beef Symposium, Roswell, NM 20 â&#x20AC;&#x201C; Manford F1 Sale, Willcox, AZ 25-28 â&#x20AC;&#x201C; American Sheep Industry Assn. Annual Meeting, Scottsdale, AZ

February 2012 1-4 â&#x20AC;&#x201C; NCBA Annual Meeting, Nashville, TN 11 â&#x20AC;&#x201C; Bradley 3 Ranch Bull Sale, Memphis, TX 11 â&#x20AC;&#x201C; Best in the West Brangus Bull & Commercial Heifer Replacement Sale, Marana, AZ 14 â&#x20AC;&#x201C; Roundhouse Feed, Santa Fe, NM 24 â&#x20AC;&#x201C; Pot of Gold Bull Sale, Olathe, CO

3 â&#x20AC;&#x201C; NMAA Sale, Roswell, NM 6 â&#x20AC;&#x201C; Wedel Red Angus Bull & Heifer Sale, Leoti, KS 10 â&#x20AC;&#x201C; Porter Angus Ranch Annual Bull & Heifer Sale, Mule Creek, NM 16 â&#x20AC;&#x201C; Tucumcari Bull Test, Tucumcari, NM 17 â&#x20AC;&#x201C; Hale Angus Farms Bull & Female Sale, Canyon, TX 17 â&#x20AC;&#x201C; Four States Ag Expo All Breeds Bull & Heifer Sale, Cortez, CO 19 â&#x20AC;&#x201C; Black Angus â&#x20AC;&#x153;Ready for Workâ&#x20AC;? Bull Sale, Belen, NM 27 â&#x20AC;&#x201C; Manzano Angus Ranches Bull Sale, Estancia NM

April 2012 10 â&#x20AC;&#x201C; Three Mile Hill Ranch Yearling Angus Bull Sale, Animas, NM 21 â&#x20AC;&#x201C; 30th Annual NMS Cattle & Horse Sale, Las Cruces, NM 14 â&#x20AC;&#x201C; Texas Shorthorn Association State Sale, Eastland, TX To post your events in the Livestock Market Digest Calendar, please email date and location to caren@aaalivestock.com. Deadline is the 15th of the month previous, mailing date is the 8th of the month.

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Basically, the more progeny data (actual carcass records) you have, the less influence the DNA testing has on EPDs. Eventually the actual progeny data becomes a test of the true breeding value of an animal; the DNA test result is no longer important. The relationship between ultrasound data and actual car-

December 2011

March 2012

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Why do DNA results vary across different breeds in marbling, rib eye area and back fat?

EVENTS

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Does a large set of progeny phenotypes ever triumph over initial DNA tests?

to incorporate ultrasound data into carcass EPD predictions. For instance, we can add progeny phenotypes for ultrasound marbling and they add to the accuracy of actual marbling EPDs. It works the same way when DNA molecular breeding values are incorporated. They just become another trait in a multiple trait model.

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The American Angus Association (AAA) has, to my understanding, been incorporating marker data into their genetic evaluations using genetic correlations estimated from the mid 50s to 60 percent for marbling, fat thickness, and ribeye area. Relative to BIF accuracy, these correlations equate to somewhere between 0.13 and 0.2. Thatâ&#x20AC;&#x2122;s not very high BIF accuracy necessarily, but we donâ&#x20AC;&#x2122;t generally see high BIF accuracies for carcass characteristics until bulls have steer progeny tests anyway. The genetic correlation of ultrasound predictions to actual carcass data is around 0.5-0.7. On the higher end of this range, ultrasound could explain more of the variation in carcass traits and have as high accuracy as some DNA tests. But, in order to achieve that accuracy with ultrasound, the producer has to do a fair amount of progeny testing. Part of the strength of ultrasound is that you can collect it cheaply on a bunch of progeny in order to increase its accuracy in genetic evaluation. If ~40 percent of the genetic variance is explained by either DNA tests or ultrasound, we could achieve a BIF accuracy ~.23. I think thatâ&#x20AC;&#x2122;s pretty important. When used together, both tools can increase the initial BIF accuracy before actual carcass information is collected on the animals. Although I donâ&#x20AC;&#x2122;t have a great estimate, Iâ&#x20AC;&#x2122;d speculate that together they likely explain 45 to 55 percent of the variation (for a BIF accuracy of 0.26 to 0.33). These conclusions are all relative to the amount of progeny phenotypic data available. If the animal has no other information, the impact of DNA tests/ultrasound is very large (the full 0.23 BIF accuracy). The return gradually diminishes as more information raises the EPD (Expected Progeny Difference) accuracy.

cass data is similar; ultrasound has a limit just like the DNA on how much it can help the actual carcass data accuracy. At some point both DNA and ultrasound get trumped by actual data if there are enough progeny with actual carcass data.

What are the differences in accuracy of EPDs for marbling, rib eye area, and back fat between DNA tests only, ultra-sound only, or both DNA test and ultra-sound?

Page 9

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Livestock Market Digest

Page 10

December 15, 2011

Limousin & Lim-Flex Champions Selected at NAILE imousin breeders competed for top honors at the Level I National Medal of Excellence (MOE) Limousin and Lim-Flex show at the 2011 North American International Livestock Exposition (NAILE) in Louisville, Ky. Jack Ward of Kansas City, Mo., had the honors to evaluate the Limousin and Lim-Flex cattle in the MOE show. Wies Limousin, Wellsville, Mo., Heart Felt Limousin, Gettysburg, Pa., and Edwards Land and Cattle of Beaulaville, Nc. exhibited the grand champion Limousin female, WLR Tainted Love 746X. She is an April 5, 2010 daughter of WULFS Urban Cowboy 2149U. She was followed by the reserve grand champion Limousin female, TASF XTasy 488X, a May 20, 2010 daughter of EXLR New Generation 071M, exhibited by Adam Griffith of Boonsboro, Md. The grand champion LimFlex female was awarded to MAGS Xanthocomic, was exhibited by Magness Land & Cattle and Bratton Limousin. She is a

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MICHAEL WRIGHT 505/243-9515, ext. 30 michael@aaalivestock.com Michael brings with him four generations of the range livestock industry and a keen awareness of the issues facing ranchers and rural economies today.

March 26, 2010 heifer sired by DHVO Deuce 132R. The reserve grand champion LimFlex® female was awarded to Magness Land & Cattle, of Platteville, Colo. with MAGS Yevette. She is a January 20, 2011 daughter of LH Rodemaster 338R. Ashlynn Light of Rogersville, Tenn. exhibited the grand champion Lim-Flex cow-calf pair. JLWM Licorice Spice 909W, an April 4, 2009 daughter of JLWM Mt. Peak 6209S showed with a

March 15, 2011 heifer calf sired by JLWM Shooter 901W at side. Reserve grand champion LimFlex cow-calf pair was shown by Andrew Milam, Olmstead, Ky. MAGS Whitney, a March 21, 2009 daughter of DHVO Trey 133R showed with a January 22, 2011 daughter of MAGS Unmerciful at side. The grand champion Limousin bull, KYLD Vegas 910W, was exhibited by Kyle Delaplaine, Gettysburg, Pa and Quail Ridge Limousin, Calhoun, Ky. He is a

5% Of American Vegetarians Eat Beef Again AMANDA RADKE, Beef Daily Blog

hen I meet vegetarians, the conversation almost always veers toward their rationale for making such a drastic dietary change. What motivates someone to give up healthy, nutrient-dense animal proteins? Can I help answer questions, alleviate associated guilt or clarify any misconceptions they may have? I certainly try. For many, it’s because of a film or book that showed horrific scenes depicting farmers and ranchers as abusive, greedy monsters who destroy the land and hurt our animals. These vegetarians are usually the ones who are the hardest to convince that their dietary choice is simply based on scare tactics from the mainstream media. I tell them I don’t support the bad apples in agriculture, and I remind them of the many beef by-products that impact their everyday lives. Then, I move on. But, what do we say to those who feel a vegetarian diet is superior in a nutritional sense? A

recent article written by Anthony Colpo says most vegetarians figure it out on their own, and quickly ditch their diet to receive optimal nutrition from beef once again. Most chalk it up to a youthful phase and spend their remaining days as omnivores. Here’s an excerpt: “One issue that vegetarian shills conveniently ignore is the legions of folks who try vegetarian/vegan diets, then abandon them due to adverse health effects. Vegetarian promoters wank on and on about how superior the diet is, but have little to say about the preponderance of people who adopt vegetarianism only to watch their energy and well being deteriorate. A 2005 survey by CBS News found three times as many American adults described themselves as ex-vegetarians as opposed to current vegetarians. This suggests that around 75 percent of people who quit eating meat eventually change their minds and return to a diet that includes animal flesh.” Additional information on the CBS study appeared in TIME.

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March 6, 2009 son of KRVN Naskar 013N. The reserve grand champion Limousin bull, MJ Xtravaganza 1X, a Jan. 5, 2010 son of EF Main Stay 541M, was exhibited by Mark Blake of Earl Park, Ind. Magness Land & Cattle and Edwards Land & Cattle exhibited the grand champion Lim-Flex bull, MAGS Xyloid. He is a March 7, 2010 son of DHVO Deuce 132R. He was followed by the reserve grand champion Lim-Flex bull, EF Xcessive

Force, a March 18, 2010, son of DA Traveler 004 703, exhibited by Etherton Farms Dawson, Ill. and Thomas and Son Farms, Boonsboro, Md. Johnny Johnson of Craig, Neb., evaluated the junior female show, selecting TASF XTasy 448X, a May 20, 2010, daughter of EXLR New Generation 071M, as the grand champion female exhibited by Adam Griffith of Boonsboro, Md. Reserve grand champion female was awarded to Legacy’s Xla, a Nov. 2, 2010, daughter of DF Rapture, exhibited by Dominic Ruppert, of Witt, Ill.

Increased Numbers at NAILE Eastern National Gelbvieh Show n impressive display of Gelbvieh and Balancer® cattle were exhibited in the 2011 North American International Livestock Exposition (NAILE) Eastern National Gelbvieh show held on November 17 in Louisville, Ky. Setting recent records for entries, a total of 96 bulls and females were exhibited. Dr. Scott Schaake, Manhattan, Kan., evaluated the 46 Gelbvieh females, 18 Gelbvieh bulls, 21 Balancer females, and 11 Balancer bulls. The honor of grand champion Gelbvieh female went to GGGE 3G X-Factor 014X, exhibited by Emily Griffiths, Kendallville, Ind. This January 6, 2010 female is sired by GGGE 3G Time Machine and first claimed the champion junior heifer division. The reserve grand champion Gelbvieh female was exhibited by Chasey Blach, Ramah, Colo. JCGR BAR GT Ella 265X is a March 6, 2010 daughter of RID R Collateral 2R and was the reserve junior heifer. The grand champion Gelbvieh bull was RID R G-Force 922W, exhibited by Ridinger Cattle Company, Deer Trail, Colo. He is a March 7, 2009 son of JCGR BAR GT Flashback and was first named champion senior bull. The reserve grand champion

Gelbvieh bull came out of the winter bull calf division. JDPD Chain Link 251Y ET is a January 6, 2011 son of CRAN Buddy Boy T729 and was exhibited by The Dromgoole’s Heaven, Richmond, Texas. In the Balancer show, the grand champion female was exhibited by Butler Creek Farms, Milton, Tenn. BCFG Butlers Ms Deb 10X is a January 9, 2010 daughter of BCFG Butlers Cherokee and was first named champion junior heifer. The reserve grand champion Balancer female was a cow/calf pair exhibited by Emily Griffiths. GGGE 3G Cowgirl Wisdom 951W is a March 3, 2009 daughter of GGGE 3G Smoke N’ Mirrors. Griffiths also exhibited the grand champion Balancer bull with GGGE 3G Warlock 928W, a February 7, 2009 son of GGGE 3G Smoke N’ Mirrors. He first claimed the senior bull division. Jumping Cow Gelbvieh, Ramah, Colo., exhibited the reserve grand champion Balancer bull. JCGR BAR GT Colton 292X is a March 10, 2010 son of RID R Collateral 2R and was first named champion junior bull. The premier breeder and premier exhibitor honors went to Emily Griffiths.

Smithfield won’t turn records over to HSUS by MARLYS MILLER, EDITOR, Pork Magazine

mithfield Foods officials have denied a request made in November from the Humane Society of the United States (HSUS) to inspect records on the pork producers’ plans to eliminate gestation-sow stalls. HSUS is a Smithfield shareholder and as such filed the request because it believes Smithfield is not moving forward with its promise that the company would move its gestation sows from stall housing to group-pen housing by 2017. Smithfield had made that commitment in 2007, but in 2009, citing extreme losses that were occurring across the U.S. pork industry due to skyrocket-

ing feed prices, at least partially driven by ethanol production, as a reason requiring a delay in implementation. Smithfield officials have said that they are not abandoning the initiative. “There is no legal basis for this demand made by HSUS to Smithfield,” according to a company statement. “We believe this is another unsubstantiated attempt by this organization to support its cause.” HSUS had sent the request to Smithfield’s president and chief executive officer, C. Larry Pope, this week, asking to see accounting and board records related to sow housing. According to Smithfield’s 2011 annual report, approximately 30 percent of companyowned sows will be in housed in group systems by year’s end.

“America’s Favorite Livestock Newspaper”

December 15, 2011

Page 11

Do Your Homework Before Buying a Bull by TED G. DYER, UGA Extension Animal Scientist, Cattle Today

electing the right bull for your cow herd could be considered as one of the most important decisions you make in staying profitable. Don’t make a quick unprepared decision on purchasing a bull. You should do your homework – reviewing and studying records prior to making a bull purchase. You should first consider the bull’s performance and background, that’s why it is important to select a performance tested bull. Performance tested bulls have proven records to back up their quality and performance. These performance and quality traits will then be passed on to his calves that will hopefully make your cattle operation more profitable. Remembering the bull con-

tributes one-half of the genetic makeup of your calf crop and has the potential to sire from 25 to 50 calves per year. Therefore, he is the most important individual in your herd. Bull procurement decisions can impact both your future calf crops and herd genetics for many years. Below are some items to consider when you are making your bull purchase: ■ Review the Bull’s Performance Information: This includes: birth weight, weaning weight, yearling weight, average daily gain, weight per day of age, weight ratios, size of contemporary group, frame size, scrotal circumference, ultrasound scan data, and feed efficiency. Individual performance of potential herd sires is measured by feeding a large number of similar age bulls at the same location. This allows meaningful comparisons

to be made between individual bulls. At the end of the testing period, typically two or more ratios are combined which results in a composite index for that testing location. Remember

are 12 months or older should have a breeding soundness evaluation (BSE) preformed. A BSE is used to evaluate a bull’s breeding potential. It consists of a physical examination of the reproductive organs plus an evaluation of semen quality. ■ Review and Study the Bull’s Expected Progeny Differences (EPDs): This information should be available from the breeder, registration certificate, or the sale catalog. It will give an indication on how the bull’s calves are expected to perform for certain traits relative to calves from other bulls within the same breed. Even though the accuracy level is low on young bulls, EPD’s provide offspring performance information that can’t be obtained elsewhere. Remember to do your homework and ask the right questions before you purchase a herd bull. It is very important that you study, review, and compare the information among the bulls you are selecting. This should help you select the right bull for your herd.

calm cattle. Selecting calm bulls with the correct phenotype will enable you to enhance the economical traits. ■ Know the Bull’s Pedigree: Knowing this information will

Performance tested bulls have proven records to back up their quality and performance. to compare ratios and indexes only between bulls from a specific test. ■ Visually Appraise the Bull’s present Phenotype: This includes the visual properties of the animal. This would include: structural soundness and confirmation, fleshing ability, muscling, scrotal size and placement, breed characteristics, balance/ style, and masculinity. You should also evaluate the bull’s disposition or temperament, research has proven that unruly cattle will not perform as well as

allow you to better predict a consistent calf crop. If you are unfamiliar with a particular breed’s pedigree check with a reputable breeder, breed field representative, or breed association for more information. Knowing this information can pay dividends especially for a commercial cowcalf producer. ■ Know the Bull’s Health Record: It is important to have these records, so you can continue to give the needed annual vaccinations plus control internal and external parasites. Bulls that

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The McGuffin hree giant lobby groups from an alternative timewarp are engaged in a furious hissy fit whose purpose is raising money to pay lawyers. “Send Money so we can Litigate, Pay company Executives, and Solicit more Funds!” “Animals are overrunning government property,” they exclaimed,” . . . and endangering the environment! These are domestic animals that have been turned loose to fend for themselves and have multiplied exponentially!” Sound familiar? Yes, the lobby groups are the usual suspects; Sierra Club, Audubon Society, and the Humane Society of the Unites States (HSUS). The “McGuffin” is what Alfred Hitchcock called the object in the movie around which the plot thickened but had little significance on its own. Like the missing microfilm, hidden treasure or secret code. Examples: When their funds and influence ran low in 1996, the Sierra Club hoisted a grand campaign to drain Lake Powell. The Audubon Society chummed up to Ted Turner by offering him “environmentalist credibility” in return for a big donation, and the HSUS is the first one there with their hand about to solicit funds from hurricane pets to horse abuse to Missouri Prop. B. The McGuffin in this case is Feral Cats. They are accused of eating birds, rabbits, wood rats, varmints and vermin, some of which are . . . you guessed it, FEDERALLY PROTECTED!

Ranch Rodeo Coming to Phoenix

SENSE

Like the spotted owl, shortnosed sucker and Loach minnow. When I allude to these three litigating lobby groups as “living in the 4th Dimension”, it is because in their alternative world, common sense is illegal and economic impact has no meaning. Two of the groups want to trap the cats, the other group is against trapping. It makes no difference which is which, it is all about raising funds to pay lawyers, corporate executives, advertising to raise more funds, and political lobbying. It’s like watching three buzzards fighting over a flat possum on a road that no one uses. In this operatic charade the actors all claim the high moral ground. They are plutocratic beggars, pious in their selfimage. Emerson said it all, “The louder he spoke of his honor, the faster we counted our spoons.” Follow the money. All you have to do is look at the budget and financial statement of most non-profit profiteers in the now profane world of eco-animal rights, and you realize how bizarre this parasitism has become. How can we control these feral cats? In the real world every farmer’s daughter, rancher’s wife, woodsman’s grandchild and prairie dog hunter’s son knows the solution. Buy’em a box of shells and give‘em a week in the woods. Where are Davy Crockett and ol’ Betsy when we need ‘em?

tition at 9:00 a.m., Chuck Wagon Cook-Off at noon, and the Replacement Heifer Sale at 12:30 p.m. The Ranch events are just a few of the exciting events taking place during the Arizona National Livestock Show, which runs December 29 – 31, 2011. Bring your family and enjoy a part of the West! Admission is $10 per car, which includes parking and admission. The Arizona National Livestock Show, Inc. is a non-profit organization dedicated to educating the public about the significance of agriculture and livestock through the presentation of a premier livestock show. For more information, visit www.anls.org, or call the Arizona National office at 602/258-8568.

owboys from across Arizona as well as neighboring states will saddle up and ride into town for the Ranch Rodeo at the Arizona National Livestock Show December 29 and 30, 2011. The showdown starts at 1:30 p.m. each day at the Arizona State Fairgrounds. Ranchers compete in events that test the skills they use every day on the ranch such as Wild Cow Milking, Calf Branding, Stray Gathering and Trailer Loading. In addition, on December 30, a Saddle Bronc Riding competition will be held following the Ranch Rodeo. In addition to the Ranch Rodeo, other ranch related events taking place on December 30 include the Working Ranch Horse Compe-

Breeding cattle for rangeland beef production to accomplish teaching and research missions of New Mexico’s Land Grant University.

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TO LEARN MORE ABOUT LIVESTOCK PROGRAMS AT NMSU SEND US AN EMAIL anrsknox@nmsu.edu, OR CALL THE Department of Animal & Range Sciences at 575/646 2515; OR, VISIT THESE WEBSITES: COLLEGE OF AGRICULTURE, CONSUMER & ENVIRONMENTAL SCIENCES

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• Cattle derived from Chihuahuan Desert Rangeland Research Center and Corona Range and Livestock Research Center. • Calving ease and fertility considered our most economically relevant traits. Selection based on performance data, EPDs, DNA, and whole herd reporting for maternal traits.

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Livestock Market Digest

Page 12

Tell the Story, Curb Those Regs by MIRANDA REIMAN, Angus Journal

griculture stays ahead of the curve in caring for land and livestock, but that’s too much of a secret, said a Nebraska Cattlemen environmental specialist. “Eat our dust, EPA,” espoused one of Kristen Koch’s first slides at the Feeding Quality Forum in Omaha, setting the tone for her presentation. She talked about public misconceptions and strategies to rebuild the beef industry image. At the Garden City, Kansas, event a couple of days later, Clayton Huseman of the Kansas Livestock Association (KLA) delivered related comments on regulations. “I want to arm you with an arsenal of scientific facts so you can feel comfortable and confident talking about the great job the beef industry does managing its environmental impact,” Koch began. Shooting down bogeys in order, she first took aim at a myth about greenhouse gas

(GHG) emissions from livestock. Noted at 18 percent of the total by a still-quoted 2006 United Nations (UN) report, the U.S. Environmental Protection Agency (EPA) in 2009 put it closer to three percent.

They see public misinformation as a big reason for the increase in governmental control. Efficiency helps the planet, she pointed out, as we generate more beef with less feed, energy, land, water, fossil fuels and even fewer cattle. Of course, that also decreases the GHG methane and ammonia produced per unit of beef. “We can talk positively and confidently, with our heads held high,” Koch said. But even though the livestock industry’s impact is small and technology is further reducing that impact, “we’re one of the most heavily regulated industries.” Huseman, director of KLA’s Feedlot Division, said that all those regulations began by targeting issues outside of agricul-

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ture. He detailed how the regulatory aim shifted and expanded its impact on the beef industry, especially large confinement operations, and then reviewed current and pending laws. Koch and Huseman agreed beef producers must become more efficient communicators. They see public misinformation as a big reason for the increase in governmental control, which Huseman said brings even more operational challenges and uncertainties. As a call to action, he said producers must become more aware of what they are actually doing. “Too many times we obtain permits for production without truly knowing the contents, except for how long it lasts,” he said. He also stressed the need to look at regulations, in and outside of agriculture, in a new light: Consider not only the effects they could have today but in the future, as well. “We’ve got to review absolutely everything,” Huseman said. “Even if it’s not directed at our industry now, someday it will be.” Gaining that awareness, producers need to pass the information along. “I think every single environmentalist, animal activist, scientist, homemaker — anyone in the world — would agree the purpose of animal agriculture is to generate high-quality food at an affordable cost, low environmental impact and in an animalwelfare-friendly way,” Koch said. “Find the common ground on the purpose of the industry. Then start speaking up about your practices.” The Feeding Quality Forums were co-sponsored by Pfizer Animal Health, Certified Angus Beef LLC (CAB), Feedlot Magazine and Purina Land O’Lakes. More information and proceedings are available at www.CABpartners.com.

December 15, 2011

Questions & Answers accurate for Angus, but if you would apply the same test to Simmental, Hereford, or some other breed, it would be much less accurate. They would not account for the differences we observe in carcass characteristics in Hereford or Simmental nearly as well as they do for Angus. Basically, that’s a function of how distantly related the breeds are genomically. Marker predictions are more accurate when animals are more closely related. Since several generations have passed since the breeds diverged, the relationships the markers might have with actual genes that are causing variation in economically relevant traits probably aren’t the same from breed to breed. Part of our own impetus here (at USMARC) is we want to be able to eventually develop tests that are more robust across breeds. I do think it’s important to try to get down to that level if we’re going to make this truly a usable project for the commercial producer as well as the seedstock industry. It’s not just about purebreds; composite breeders need to know where their animals rank. Having some idea of what’s going on in a crossbred is relevant to a large segment of the industry. Why is reporting phenotypes on a sire’s progeny absolutely essential to finding outliers and improving breeding animals?

Phenotypes of all types will continue to be very important for many reasons. One is that DNA tests do not explain all of the genetic variation we see in our economically relevant traits; phenotypic data is still needed to improve EPD accuracy. In order

Riding Herd your obesity. Maybe you did. In my mother’s words, “You shouldn’t have let your eyes overload your belly.” But then perhaps I’m just overly sensitive about all this because our lovely 23year-old niece just died as a result of the surgery. I like cats and dogs as much as anybody and feel a responsibility to treat them well, but shouldn’t we be just as concerned about the rights of a taxpaying public lands rancher in Nevada than we are the rights of a Lhasa Apso? I don’t think we should leave trust funds for pets, dress them in designer clothes and jewelry and take them to doggie spas for pedicures, but if that’s the way you want to spend your money that’s your business. But I also have the right to think you are nuttier than Jamoca Almond Fudge. I’m so stuck in the past I don’t even talk right anymore because I think an African American who was born in this country is no more African than I am a Chimpanzee American just because I may have had one as an ancestor a few generations ago. If you are a citizen of this country you are an American. Period. And I love Mexican people as much as anyone, probably more, but illegal immigrants are still ILLEGAL. I’m so out of touch I think our laws ought to be obeyed

continued from page nine

to provide accurate DNA tests, we need phenotypes to train and validate prediction equations that are being developed. Also, we need many more phenotypes than we once expected to achieve a robust set of prediction equations. This is particularly true if we want DNA tests that have the potential to be effective for multiple breeds. As one final point, the efficacy of DNA tests may decrease over time as the animals being evaluated become more distantly related to those used in training. We need strong phenotypic databases to retrain our predictions in future generations. Gathering data on phenotypes is essential and will continue to be in the future. Larry Kuehn has an extensive background in livestock agriculture including growing up on a diversified farm (cattle and swine) in central Nebraska. A Research Geneticist at the U.S. Meat Animal Research Center (USMARC) since 2006, he co-leads the Germplasm Evaluation Program, a genetic resource population designed to estimate breed differences and heterosis for economically relevant traits, and to serve as a resource population for genomic discovery. From this population he provides the yearly across-breed EPD adjustment factors, which allow producers to compare the genetic merit of bulls of different breeds. His research has also focused on the use of high-density genotyping to improve the accuracy of selection decisions in beef cattle. As part of this focus, he works with scientists in other disciplines to develop accurate phenotypic resources to improve beef cattle production efficiency in trait complexes such as disease resistance, feed intake, and reproduction.

CONTINUED FROM PAGE ONE

and enforced every chance we get. I may be living in the past but I’d still appreciate a little courtesy. Please turn off your cell phone during our national anthem or a prayer. No one is that important. I’m old enough to remember when polite people still said “Please” and “Thank You” and I feel that no matter how liberated we’ve become that a gentleman still offers his seat to a lady. And if I had a son who was 28 years old and still living at home he’d better be mentally or physically handicapped, looking for a job, or studying to be a doctor so he can one day take care of his mom and me. I feel we were better citizens when we said the Pledge of Allegiance to start each day and I’m so out-of-date that I can recall when the Constitution guaranteed our rights, not the political make-up of the Supreme Court or the diplomats at the U.N. I’m so old-fashioned that I still believe that what you do in your own home is your business, that farmers and ranchers are heroes, not villains, that you should respect your elders, buy locally and not talk with your mouth full. I think government has no business in business. I hope I’m not offending anyone or being politically incorrect when I say that old is not always wrong, and new is not always better.

“America’s Favorite Livestock Newspaper”

December 15, 2011

Supreme Court skeptical of California’s slaughterhouse law that grew out of scandal in Chino STAFF and WIRE REPORTS, Inland Valley Review

he U.S. Supreme Court seemed ready in early November to block a California law that would require euthanizing downed livestock at federally inspected slaughterhouses to keep the meat out of the nation’s food system. The court heard an appeal from the National Meat Association, which wants a 2009 state law blocked from going into effect. California barred the purchase, sale and butchering of animals that can't walk and required slaughterhouses under the threat of fines and jail time to immediately kill nonambulatory animals. California strengthened regulations against slaughtering socalled “downer” animals after the 2008 release of an undercover Humane Society video showing workers abusing cows at Westland/Hallmark slaughterhouse in Chino. Under California law, the ban on buying, selling and slaughter of “downer” cattle also

extends to pigs, sheep and goats. said the law Justices encroached on federal laws that don’t require immediate euthanizing.

who is on the premises needs to have one set of rules that the worker follows,” said Steven J. Wells, the association’s lawyer. About 3 percent of pigs that

California strengthened regulations against slaughtering so-called “downer” animals. “The federal law does not require me immediately to go over and euthanize the cow. Your law does require me to go over and immediately euthanize the cow. And therefore, your law seems an additional requirement in respect to the operations of a federally inspected meatpacking facility,” Justice Stephen Breyer told a California lawyer. Pork producers sued to stop the California law, saying the new law interfered with federal laws that require inspections of downed livestock before determining whether they can be used for meat. “A slaughterhouse worker

show up at slaughterhouses are nonambulatory, the National Meat Association says, but veterinarians normally give the nonwalking pigs a few hours to determine whether their problem is disease, or just stress, fatigue, stubbornness or being overheated from the trip to the slaughterhouse. A federal judge agreed and blocked the law, but the 9th U.S. Circuit Court of Appeals threw out the hold. The justices seemed ready to overturn that ruling. The Federal Meat Inspection Act allows a federal meat inspector to examine and then deter-

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mine whether a downed animal is fit to be slaughtered for meat. It also says states cannot add requirements “in addition to or different than” its requirements. “When the federal law says you can, that pre-empts the rule from the states that says you can’t,” Chief Justice John Roberts said. “Well, the federal law doesn’t say you must,” said Susan K. Smith, a California deputy attorney general. But the federal law “says in so many words no additional requirements,” said Justice Antonin Scalia. “And I don’t know how you can get around the fact that this is an additional requirement.” The justices are expected to rule soon. In January 2008, the U.S. Humane Society released the video that depicted brutal treatment of livestock at the Chino abattoir. The video showed nonambulatory cows, unable to stand or walk without assistance, being kicked, electrocuted, dragged with chains and rammed with forklifts. The resulting outcry triggered the largest beef recall in U.S. history, covering more than 143 million pounds of meat. After the recall, the California Legislature toughened the state’s law governing slaughterhouses.

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Page 13

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Livestock Market Digest

Page 14 THE LIVESTOCK MARKET DIGEST

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■ Horse Training / Boarding Facility: New, state-of-the-art, 220x60 horse facility with 20 stalls, back to back, offset with bull pen at end of the barn. Two large pipe outside paddocks. 3-4 BR, 3 BA, 2,000+ sq. ft. PAUL McGILLIARD Cell: 417/839-5096 home. All on 18+ acres. Just 5 miles north of I-44 Bois D’Arc exit. MLS #1017424. Call Paul for your private showing. 1-800/743-0336 ■ 838± Acre Ranch: Never been offered for sale before. Exceptional, MURNEY ASSOC., REALTORS highly improved, all continuous ranch, 1/2 mile off Hwy. 13 at Bollvar. SPRINGFIELD, MO 65804 Lovely ranch home and mobile home and guest entertainment house. Big shop, hay barn and possible 8-stall horse barn. 250/cow/calf graze the 700 acre m/l lush pastures serviced by 3.5 miles of water lines and 23 frost-free waterers. 3+ acres m/l spring-fed stocked lake. This ranch has it all. MLS#1109960 ■ 483 Ac., Hunter Mania: Nature at her best. Don’t miss out on this one. Live water (two creeks). 70+ acres open in bottom hayfields and upland grazing. Lots of timber (marketable and young) for the best hunting and fishing (Table Rock, Taney Como and Bull Shoals Lake) Really cute 3-bd., 1-ba stone home. Secluded yes, but easy access to Forsyth-Branson, Ozark and Springfield. Property joins Nat’l. Forest. MLS#908571

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505/243-9515, ext. 30 michael@aaalivestock.com

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Tories tear green credentials to shreds Cameron and Osborne sound death knell for 'greenest government ever' pledge, with complete sidelining of low-carbon economy by JAMES MURRAY, Editor, BusinessGreen

as there been a more antienvironmental political conference at any point over the past decade than this year’s annual Conservative party jamboree in Manchester? The answer is almost certainly not, and after high-carbon policy announcements and sidelining of environmental issues, the hardfought political consensus on the urgent need to create a worldleading, low-carbon economy seems under serious threat for the first time in a decade. The handful of environmental announcements has provided explicit confirmation that large parts of the largest party in the coalition are not signed up to the UK’s low-carbon agenda, are actively lobbying for it to be scaled back, and are in some cases tearing off in the opposite direction. Philip Hammond has driven a coach and horses through his department’s low-carbon strategy, leaving some of his own officials in despair at a policy that could result in motorway emissions rising by 10 to 15 per cent. Eric Pickles has decided that

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December 15, 2011

• 1,700-acre classic NE TX cattle & hunting ranch. $2,750/ac. Some mineral production. • 256 Acre Texas Jewel – Deep sandy soil, highrolling hills, scattered good quality trees, & excellent improved grasses. Water line on 2 sides rd., frontage on 2 sides, fenced into 5 pastures, 5 spring fed tanks and lakes, deer, hogs & ducks. Near Tyler & Athens. Price $1,920,000. Make us an offer! • 146 horse, hunting cattle ranch N. of Clarksville, TX. Red River Co. nice brick home, 2 barns, pipe fences, good deer, hogs, ducks, hunting. PRICE REDUCED to $375,000. • 535 ac. Limestone, Fallas, & Robertson counties, fronts on Hwy. 14 and has rail frontage water line, to ranch, fenced into 5 pastures, 2 sets, cattle pens, loamy soil, good quality trees, hogs, and deer hunting. Priced reduced to $1,750 per ac. • 10 Wooded Acres with a 6-bedroom, 3.5 bath and a 2-car garage and shop for $199,000.

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having identified £250m of additional cash, his top priority is the return of weekly bin collections that have been shown to reduce recycling rates. And then there was George Osborne’s litany of environmental misconceptions, arguably the most anti-environmental comments made by a leading British politician in years. First there was the ‘not us, guv’ defence, with his claim that the UK only accounts for two per cent of global emissions, when research has consistently shown our emissions are closer to five or six per cent. Then there was the categorically false assertion that “we’re not going to save the planet by putting our country out of business.” Is it not demonstrably the case that we’re not going to save our businesses if we kill off our planet? And finally there was the clear challenge to the authority of his green-minded colleagues with an explicit commitment to cut the UK’s carbon targets if the EU does not up its own goals. The prime minister could have undone the undoubted damage meted on green investor confidence by his colleagues. He may not have sufficient authority over the right wing of his party to overrule these antigreen policies altogether, but he could have explained how deeper cuts in emissions will be delivered elsewhere in the economy to compensate for the increase in emissions that will result from Hammond’s fuel-burning speed limit. He could have outlined how new recycling schemes would help ensure that weekly bin collections do not undermine the progress on waste reduction made in recent years. And, most importantly, he could have offered green businesses reassurance that while measures will be put in place to stop carbon leakage, the legally binding longterm targets contained in the Climate Change Act are sacrosanct, regardless what the chancellor says. Instead, he praised Osborne’s “excellent speech”, did not mention climate change once, and only mentioned green issues three times: to criticise Labour’s record, insist planning reforms will not harm the environment, and declare that “green engineering” would form part of the Conservative’s new economy. Issues that Cameron once presented as an existential threat and a key component of his party’s agenda are now little more than a footnote. In fact, judging by the rest of his speech they are less important than tired attacks on health and safety rules, or lame jokes about Ken Clarke’s liberal tendencies. Should green businesses be concerned by this clear sidelining of the low-carbon economy? In the short term, it is unlikely to make much of a difference to

a low-carbon sector that is continuing to grow at over four per cent while the rest of the UK economy flatlines. It is frustrating to see political leaders no longer making climate change and low-carbon opportunities a key component of their speeches, but it is understandable that they are currently prioritising short-term social and economic concerns. Meanwhile, the handful of anti-green Conservative policies announced this week may create infuriating inconsistencies across government, but they will do nothing to derail the much larger package of low-carbon measures designed to drive investment in green technologies and business models. Electricity market reforms, the Green Investment Bank, the Green Deal and the Renewable Heat Incentive will all continue apace, creating huge commercial opportunities for low-carbon businesses and investors. Similarly, global climate change risks, surging investment in clean tech, and rising energy prices and supply insecurity will all continue regardless whether the prime minister chooses to mention climate change in his speeches. The fundamentals driving the low-carbon economy remain as robust as ever, and progressive businesses understand this implicitly. However, at the same time it appears the political consensus that defined action to curb carbon emissions and tackle climate change is drawing to a close. The Lib Dems obviously still regard green action as core to their identity and were at pains during their conference to highlight the environmental policies they are driving as part of the coalition. Labour were less explicit in their support for lowcarbon businesses, but in Miliband's intriguing and highrisk speech detailing his desire to bring an end to corporate short termism in favour of a more progressive approach to doing business, the party is beginning to map out a pro-green strategy. And yet while there are numerous honourable exceptions within the party (Greg Barker, Zac Goldsmith, William Hague, Tim Yeo), it has become clear this week that the Conservative leadership has decided green issues are no longer a votewinner and are instead a handy sacrificial lamb to offer those on the right of the party who always thought the whole concept was a nonsense anyway. This shift in strategy poses little threat to the low-carbon economy as long as the Lib Dems remain in the coalition. But it is possible to imagine a scenario where a full Conservative victory at the next election allows for the full expression of what Chris Huhne memorably continued on page fifteen

“America’s Favorite Livestock Newspaper”

December 15, 2011

Page 15

How to Improve your Percent Calf Crop by TED G. DYER, Extension Animal Scientist, Beef Cattle and CAROLE HICKS KNIGHT, County Extension Agent, University of Georgia College of Agricultural & Environmental Sciences; originally prepared by DAN T. BROWN, Extension Animal Scientist

he number of calves sold is a major source of income from a cow/calf operation. A high percent calf crop increases profit. Reproductive efficiency is the first factor to consider in a breeding program. A beef cow must conceive in the first 40 to 60 days of the breeding season, have a live calf unassisted, breed back to calve every 12 months, and raise a calf that is heavy enough to be profitable. To accomplish this, she must be managed correctly. Management factors that influence reproduction include:

Proper Nutrition Adequate Body Condition Score ■ Healthy Herd ■ Crossbreeding ■ Sound breeding practices ■ Annual culling and replacement ■ ■

The following is a step-by-step program to increase the reproductive efficiency of the herd.

quicker for breeding. The major goal at calving is to calve 70 percent or more of your cows during the first 21 days of the calving season. When making culling decisions, select animals that breed and calve early each year. These animals will continue to be more fertile as compared to those calving late in the calving season.

STEP 1: Prior to Calving Research has clearly shown that maintaining cows in adequate body condition helps ensure that cows will return to estrus and breed back within 80 days (the window necessary to ensure a calf per year). Cows maintained on an increasing plane of nutrition prior to calving usually have a shorter interval to their first ovulation than cows on a decreasing plane of nutrition. Proper nutrition prior to calving will help cows initiate an estrus cycle in the first 40 to 60 days after calving. Inadequate nutrition prior to calving will cause cows to delay estrus after calving, thus keeping the cow from producing a calf on a yearly basis. It is essential to know your cows’ and/or heifers’ nutritional requirements and maintain the proper body condition score (5 = Moderate or 6 = Good) prior to calving. Cattle that are too thin will have problems cycling, as will cattle that are too fat. Body condition scoring (BCS) is a reliable method to assess the nutritional status of a cow herd.

STEP 2: Calving Plan to calve out cows and/or heifers during the year when it will align with major forage growth. This will help reduce the need for additional supplemental feed, enhance milk production and get the cow cycling back

Increasing the nutritional levels following calving will increase conception and pregnancy rates. During the calving period it is important to check cows and heifers two to three times a day. Putting cows in a small pasture near your house during calving will help make finding calving cows easier, especially when checking at night. Closer attention needs to be paid to first calf heifers, as they tend to have more calving problems than older cows. Respond quickly if a cow needs assistance during calving. Make sure each calf gets up and nurses. Collect and record calving data at birth. This information includes: cow ID, calf birth date, calf ID, calf sex, calf birth weight, calving ease and any other helpful remarks. This information can be recorded in a small pocket calving book then transferred to a more secure location such as your computer. These records will become very valuable, especially in verifying the age of your calves. The cow’s greatest nutritional need is shortly after calving. During this period the cow is in

Tories shred credentials described as the “Tea Party tendency” in the form of an assault on green policies. Green business leaders need to be aware of this risk and should now urgently redouble efforts to protect what had previously looked like a solid political consensus on climate change. They need to make use of that business hotline the government promised would connect business leaders and ministers, and

continued from page fourteen

make the case loud and clear that rising emissions present both a grave threat and a oncein-a-generation opportunity to deliver a low-carbon economy that drives both economic growth and rising living standards. It is the kind of thing David Cameron used to say all the time — it is just a shame that at the time when we need green leadership most he has lost his voice.

peak lactation, trying to regain weight that was lost at or near calving, plus repairing her reproductive tract in order to become pregnant within the next 40 to 60 days. Make sure the cow gets the required nutrients to support both herself and her calf during this period. Several studies have documented the importance of maintaining adequate body condition after calving and prior to breeding. These studies have shown that increasing the nutritional levels following calving will increase conception and pregnancy rates. The simplest way to ensure cows are ready to rebreed (having regular heat cycles) is to maintain them on a sound nutrition program. Know the nutrient content of your forages, especially hay. An inexpensive way to be assured you are meeting the animal’s needs is forage testing. These results will enable you to make cost-effective decisions relating to supplemental needs for your cow herd. Make sure your cows are getting the proper protein, energy and minerals in their diet.

STEP 3: Breeding Maintaining a controlled breeding season is very important. It improves the marketability and uniformity of the calf crop, makes meeting the nutritional needs of the cow herd

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more cost-effective and facilitates better herd management. It also allows for closer observation during the calving season and assists in identifying reproductively unsound cows that need to be culled from the herd. A con-

trolled breeding season usually consists of a 45, 60 or 90 day breeding window. This breeding period can be greatly reduced by following a synchronization protocol and utilizing artificial insemination. Use the correct cows-to-bull ratio during natural continued on page sixteen

64th Annual Arizona National Livestock Show he 64th Annual Arizona National Livestock Show opens Dec. 29th through Dec. 31, 2011 at the Arizona State Fairgrounds, 19th Avenue andMcDowell Road, Phoenix, Ariz. Enjoy Livestock Shows, Farm Experience an interactive area for children to learn about agriculture, Working Ranch Horse Competition, Ranch Rodeo, Chuck Wagon Cook Off, Dutch Oven Cook Off, Livestock Shows and sales, Li’l Buckaroo Rodeo, and much more. The 23rd Annual Cowboy Classics Western Art and Gear Show is also a featured event of the livestock show. The Cowboy Classics Western Art and Gear Show is a celebration of Western Culture and lifestyle through poetry, music, paintings, sculpture, leather

work, braiding, hitching, jewelry, furniture, and gifts galore. This year’s featured artist is Loretta Musgrave of Phoenix. Admission to the Arizona National Livestock Show is $10 per car, which includes parking and admission. The Farm Experience, an interactive area for children, is open December 29 – 31, 2011 from 10 a.m.– 4 p.m. and is included in the price of admission. The Arizona National Livestock Show, Inc. is a non-profit organization dedicated to supporting youth and educating the public about the importance of agriculture and livestock through the presentation of a premier livestock show. For more information and a complete schedule of events, visit www.anls.org, or call the Arizona National office at 602/258-8568.

Livestock Market Digest

Page 16

Improve your calf crop breeding: 30 to 50 cows per mature bull; 30 or less for young bulls, depending on their growth and development. Additional bulls (multiple bulls) may be needed to ensure cows get bred quicker; again, this depends on the bull’s growth and development. It is extremely important that each bull has an annual breeding soundness exam just prior to the breeding season. Bulls should be also be maintained in adequate nutritional status. Bulls should be strong and in thrifty condition — not fat. It is important to record the date that bulls are turned in and then removed from the herd to be able to accurately determine

continued from page fifteen

the calving season. Plan to breed heifers 30 days prior to the cow herd. This will give first-calf heifers 30 extra days to rebreed and stay within the normal cow herd breeding season. Remember first calf heifers will continue to grow and develop to mature cows until around 4 years of age. To help ensure adequate development and maturity, heifers should weigh at least 65 percent of their estimated mature weight at breeding.

STEP 4: Development It is critical that the cow becomes pregnant and remains pregnant during this develop-

mental stage. Shortly after breeding or bull removal (35 to 90 days), both heifers and cows should be examined for pregnancy. Because heifers should be bred first, they can be examined earlier than the cow herd. Pregnancy can be determined by rectal palpation, ultrasound examination or blood analysis. The blood test should be conducted at 30 days post-breeding on heifers and 90 days post-calving on cows. Keep in mind the blood test will only confirm pregnancy. It will not indicate the stage of pregnancy. Both rectal palpation and ultrasound examinations should be performed by a skilled, experienced individual — usually a large-animal veterinarian. All open cows and heifers should be culled from the herd

December 15, 2011 as soon as possible. If a cow is open at weaning time, that means she will not wean another calf for two years. This same period could be used to put a heifer calf into production. Research has shown that heifers that fail to breed the first year and are held over have an average lifetime calf crop of 55 percent, compared to 86 percent for herdmates that become pregnant the first year. Keeping your cow herd (cows, calves, replacement heifers and bulls) healthy during each of the steps listed above will help assure an improvement in your percent calf crop. Your veterinarian can work with you to develop a herd health protocol for your particular area and herd. Below is a general herd health schedule.

Cowboy Night Before Christmas nward came the cowboy, came from afar, curiously following the glow of a star. Arrived at the livery, place for his horse. Bit of extra oats on a chilly night of course. Told the stable man, hey, thanks for the light, lit the desert nicely — such a dark night. The man just grinned and said with a nod, Sir, it was not me — I believe it was God! Amongst the burros and sheep freshly shorn, cooed a little baby, not long ago born. Parents huddled, three men gathered round, gazed lovingly — babe on the ground. Cowboy was curious as men usually are; knew right then, the purpose of the star. No doubt in his mind, he was on hand, to witness a birth — worlds only perfect man. Babe stared at him, right into his soul, knew all about him, but how did he know? Piercing blue eyes that seemed to speak, cowboy got a message — knees grew weak. Horse rip-snorted, sat right up in bed, guess he’d been dreamin’, ‘twas all in his head. Up with a start, realizing the dream; seemed so real, these things that he’d seen. Voice came to him from deep within, said cowboy — past is gone, you are forgiven. Trust your instincts inside, I put ‘em there, ‘member I’m with you, here, everywhere. Tend your horses, cattle and fellow man, to do right by me, treat ‘em best as you can. Pondered a while the message received; witnessed a miracle, was what he believed. Message echoed in his head loud and clear, help your fellow man — both far and near. Remember now, be kind to children, take care of your soul, you must make amends. Cowboy resolved to do better, best he could; world surely needs, a bit more good. Cowboy felt warm and fuzzy all over, like a wild horse herd, knee deep in clover. Sat there a-rubbin’ grog from his eyes, looks to the window — saw another surprise. Perched on the sill — a snowwhite Dove, knows it has to be, a sign from above. Cowboy just smiled, thought man what a night; Dove then nodded, took off in flight. ‘Twas no use a-trying to sleep after that, got up, got dressed, and stuffed on his hat. Passed by the calendar — on the wall. December 25th — well doesn’t that beat all? Enters the barn, time to throw feed; horse is sweaty, what’s wrong with the steed? He’s been ridden, evidence clear showed; looks in the bin, oats have been throwed! Cold winter chill, straight down the spine, knew he’d encountered something Divine! Merry Christmas All!