Livestock “The greatest homage we can pay to truth is to use it.”
MARKET
Digest H
JANUARY 15, 2013 • www. aaalivestock . com
Volume 55 • No. 1
The Cause of Our Lives by Lee Pitts
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A One-Man Mission
NEWSPAPER PRIORITY HANDLING
Ken Ivory is a Utah native who has served in the Utah House of Representatives since 2010. He is an attorney, media-
“If you’re ridin’ ahead of the herd, take a look back every now and then to make sure it’s still there.” tor and a teacher who spent three years in Japan teaching English. Maybe this explains why, for a politician, he is so easy to understand. Utah is a state that does things right. From the no-GPSneeded way they name and lay out their streets to the common sense of her people, Utah runs a tight ship. That’s why it’s so surprising to learn that, according
to Ivory, “Utah is perpetually last in the nation in per pupil funding. At nearly $3,700 below the national average, it would take $2.2 Billion a year to bring Utah’s 600,000 K-12 students just up to the national average.” And Ivory knows right where to place the blame: our federal government. “Utah loses hundreds of millions of dollars because the fed-
eral government denies access to, or blocks consolidation of, Utah’s School Trust Lands,” says Ivory. Utah, to a large extent, depends on federal funds to educate her kids because almost two thirds of the land in Utah is untaxable federal land. In lieu of the taxes they’d be getting if Utah could tax her ground, the federal government sends the state $5.2 billion. That $5.2 billion represents more than 30 percent of Utah’s $13 billion annual budget, making them, basically, a ward of the state. Utah wants desperately to better educate her children and grow her economy but the federal government is standing directly in her way. There are trillions of dollars trapped in, and under, western lands but the feds won’t let those in the West responsibly access it. Jaws drop when Ivory tells a crowd that “there is more oil and gas trapped under just continued on page two
Finally, the Right Mascot for Radical Environmentalists ROBERT GORDON, The Heritage Foundation
rizzly bears, sea turtles, and sandhill cranes — these kinds of critters most likely come to mind when endangered species are mentioned. In the endangered species business they are known as “charismatic megafauna” and are often plastered across fundraising appeals. However, as the federal list of regulated species swells, fewer of its denizens are generally awe inspiring. Indeed, today, federally regulated invertebrates and plants now outnumber the total number of listed mammals, birds, reptiles, amphibians, and fish combined — and, the latter often fail to clear the majestic hurdle themselves. For those of us fascinated by creepy crawlies, perhaps a beetle is just as interesting as a bear or bird. For others, however, this may seem more like the disingenuous “bait and switch” sales tactic that the Federal Trade Commission says is “to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser.” Appealing or not, these critters can have such adverse consequences that the Texas Comptroller maintains a website so that Texans can see
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by LEE PITTS
The Work Of Fools
– JAMES RUSSELL LOWELL
hen Ken Ivory addresses a crowd on his favorite subject, federal land ownership in the West, he asks four simple questions. The “Four Why’s”, he calls them. 1) Why is it that over 50 percent of the land in the West is owned by the federal government while typically 4 percent of land in the East is? 2) Why did some western states succeed in securing benefits to their public lands promised at statehood, while others have not? 3) Why does the imbalance in land ownership to the West and East of what Ivory calls the Federal Fault Line, matter to western states and to the nation? 4) Why don’t we do something about the fact that our federal government hasn’t honored the same promise it made and kept with states east of Colorado? Good questions, don’t you think? To that list we would add one of our own: Why is Ken Ivory about the only politician asking such questions?
Riding Herd
what the next regulatory plague may be. Just this year, Texans have — in the name of a dimesized, underground spider known as the Bracken Cave meshweaver — jettisoned highway improvements. Similarly, in the name of the Houston toad, recovery efforts were slowed in the wake of horrendousTexas wildfires that destroyed 1,700 homes. The green community is readying to add to these Endangered Species Act injustices, fashioning a new weapon — the American burying beetle. As one liberal blogger puts it, the beetles “have earned the attention both of TransCanada and of environmental groups dedicated to protecting endangered species and interested as well in stopping the [Keystone XL] pipeline’s construction.” [emphasis added]. The beetle’s scientific name is Nicrophorus americanus, and in various government reports it is known as the ABB. As its scientific name hints (nekros: Greek for dead, dying person, corpse), the ABB is one of many species of carrion beetle which in turn are just a few of the thousands of kinds of North American beetles. American burying beetles depend upon carrion — rotting flesh, burying it, and laying eggs nearcontinued on page four
ow did this Grand Experiment we call America end up being run by a Congress of jerks and an army of incompetent bureaucrats with no common sense or real world experience? How did the greatest Democracy the world has ever known end up being dictated to by special interest groups and their lobbyists who routinely represent less than 5 percent of all Americans? Since when did the American Way come to be defined as unemployment benefits, political action committees and a “conservation” strategy that can best be defined as “lock it up and let it burn?” For those of you who think the solution to our dilemma is more government, we take you now to a press conference in Washington, DC twenty years from now. Amidst a nationwide food shortage, the work of fools is being defended the Secretary of the F F and D. No, those aren’t the grades your youngest son brought home on his last report card. It stands for the Food, Fuel and Fish Department, the consortium of bureaucrats, greenies, animal rights groups, unions and government bureaucrats who, like a circular firing squad, take turns blaming each other for their failed policies. “Mr. Secretary, why are there no eggs on the shelves of grocery stores?” “I can explain everything. After we outlawed cages for laying hens and turned them loose on open range they kept hiding their eggs. We assigned a task force to the problem and they looked high and low but they couldn’t find any eggs. Then an observant staffer discovered the hens were leaving their sanctuary by flying over the one foot tall fences. It turns out that chickens are actually birds. Who knew?” “Mr. Secretary, why is there no milk, no dairy products of any kind?” “I sympathize, believe continued on page five
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Livestock Market Digest
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January 15, 2013
The Cause of Our Lives three of our western states than in all the rest of the world combined!” So why are we making sheiks filthy rich and buying oil from Mideast sponsors of terrorism? As a Mormon, Ken Ivory went on a mission early in his life. Now he is on another. As President of The American Lands Council, Ivory is on a oneman mission to liberate the West
continued from page one
pounds of pollutants into the air, releasing 20 times more mercury than all the coal plants in the nation combined, and killing tens of millions of animals. Socalled “preservationist” policies of the federal government have failed the test of time.” We cannot afford to continue to do business like this. Or, in this case, not do business. And Ivory reminds everyone that the
“Utah loses hundreds of millions of dollars because the federal government denies access to, or blocks consolidation of, Utah’s School Trust Lands.”
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from heavy handed federal bureaucrats in the East. His American Lands Council coordinates the concerted efforts of state, county, and local governments, businesses, organizations, and individuals to secure and defend local control through education, political persuasion, legislation and litigation. Such a group is desperately needed because “Washington is progressively commandeering local control over matters of land access, land use, and land ownership,” says Ivory. “States, counties, municipalities, businesses and individuals struggle to defend against the metastasizing maze of federal policies, regulations and edicts. The problem is that federal mandates, regulations, and legislation are directly interfering with the duty and moral obligation of local, county and state governments to secure and protect the health, safety, and welfare of their citizens. The Clean Water Act, sage grouse and other endangered species are just tactics. Tactics to centralize command and control in Washington DC.” That may be a goal worthy of China and the old USSR, but certainly not the USA as conceived by our Constitution.
western states are becoming more and more dependent on a federal government that is unsustainably broke, with a $16 trillion national debt and still overspending by more than $1 trillion per year. Instead of unleashing our western state’s economies by getting the heck out of the way, the solution Washington politicos come up with is, “Let’s try to tax our way out of this mess.” It’s all a bit too much like a Saturday morning cartoon in which the
The Clown Car is Full
Those of us in the West know a little what the Indians felt like when the U.S. government made treaties and written promises and then broke them whenever it was convenient, or profitable, to do so. Upon being admitted as a state, the federal government promised all new states that it would “extinguish title” or transfer away title to all public lands. For all states east of Colorado (and for Hawaii), it has honored this promise. According to Ivory, “The U.S. Supreme Court has called these promises “solemn compacts,” “bilateral (two-way) agreements,” and “solemn trusts” that must be performed “in a timely fashion.” Are we in the West therefore not states? Is Nevada any less a state than New Hampshire? And how can anyone in the East defend a situation where they have more say about what happens in our western states than those of us who live here do? We lived in times like this once before you know? Whenev-
According to Ivory, “Utah only gets 46 percent of the mineral lease royalties where states east of Colorado get 100 percent. The federal government restricts use of and access to public lands and delays permits to develop our abundant natural resources costing the state billions in royalties and associated income taxes and increased economic activity. Federal regulatory burden costs business and individuals billions of dollars and criminalizes many aspects of everyday personal and business conduct.” One reason those on the eastern side of “The Federal Fault Line” covet our western lands is because of the land’s enchanting beauty. But the feds are destroying even that by “managing” western forests and forest fires from their eastern pulpits. According to Ivory, “The feds failed policies have more than doubled the acreage and intensity of wildfires, spewing billions of
“Federal regulatory burden costs business and individuals billions of dollars and criminalizes many aspects of everyday personal and business conduct.” clowns in Congress, who can’t even decide to agree on what time it is, are driving a clown car right over a fiscal cliff with the western states tied tight on behind.
Liberating The Land
“America’s Favorite Livestock Newspaper”
January 15, 2013
The Cause of Our Lives er Ken Ivory speaks to groups of irate westerners, which he is doing more often lately, he tells of a time when the western states had simply had enough. “Western states banded together and sent petition after petition, resolution after resolution, and delegation after delegation to Congress. They complained that the federal government was not disposing of the federal lands as promised; the states could not
. . . the western states he speaks of were Illinois, Indiana, Missouri, Arkansas, Louisiana, Alabama, and Florida. tax the federal lands to adequately fund education; they could not grow their economies because the federal government was hoarding their abundant minerals and natural resources.” Sound familiar? Except the time of which Ivory speaks was 1828 and the western states he speaks of were Illinois, Indiana, Missouri, Arkansas, Louisiana, Alabama, and Florida. “They knew their public lands history. They knew their rights,” says Ivory. “They banded together. And, because they refused to take “NO” for an answer, these 1828 “western states” secured their rights and benefits to the timely transfer of their public lands. Presently, those 1828 “western states” have 3-4 percent
continued from page two
federally controlled lands, while more than 50 percent of the lands in today’s western states are still controlled by the federal government. And it’s been over 100 years since statehood.” In 1828 the U.S. Congress came to the following conclusion: “If these lands are to be withheld those States will, for many generations, without some change, be retarded in endeavors to increase their comfort and wealth, by means of works of internal improvements, because they have not the power, incident to all sovereign States, of taxing the soil, to pay for the benefits conferred upon its owner by roads and canals. When these States stipulated not to tax the lands of the United States until they were sold, they rested upon the implied engagement of Congress to cause them to be sold, within a reasonable time. No just equivalent has been given those States for a surrender of an attribute of sovereignty so important to their welfare, and to an equal standing with the original States.” Remember, that was back in 1828. Today’s western states have the same language requiring the federal government to “extinguish title” to their public lands as those “western states” had back in 1828. In 2009, the U.S. Supreme Court once unanimously declared that Congress cannot change the “uniquely sovereign character of a State’s admission” into the Union, particularly “where virtually all of a State’s
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public lands are at stake.” The western states are still waiting for the government to keep its promise.
We’ve Waited Long Enough Ken Ivory and The American Lands Council are tired of waiting for the feds to extinguish title to western lands. “Our children and teachers can’t wait. Our wage earners can’t wait. Our people can’t wait, for a federal government that has not kept its
. . . they rested upon the implied engagement of Congress to cause them to be sold, within a reasonable time. promise.” That is why Ivory was the chief sponsor of HB 148 in the Utah state house which addresses the transfer of title to public lands to the state. Last March Utah’s Governor signed the bill into law which: ■ Requires the United States to extinguish title to public lands and transfer title to those public lands to the state on or before December 31, 2014, thereby fulfilling its promise and making them equal to all states east of Colorado. ■ The bill also charged Utah’s Constitutional Defense Council to prepare legislation for the “uniquely sovereign” actions, including legal action, the state will take to secure the promises at statehood should the federal government fail or refuse to work with the state.
■ HB 148 protects the existing National Parks, congressionally designated wilderness lands, and other Utah heritage sites. ■ It establishes the Utah Public Lands Commission to manage the multiple use and the sustainable yield of Utah’s abundant natural resources. ■ The bill stipulates that recreation, hunting, fishing, grazing, mining, etc. will be protected and managed by the Utah Public Lands Commission ■ On any of the public lands transferred to the state are sold by the state 5 percent of the price paid will go to the Permanent Fund for public education, 95 percent will go to pay down the public debt. (These were the terms of statehood). ■ 100 percent of the mineral revenues on these lands will be controlled by the state. This sets up an interesting dilemma for the U.S. Congress and for the Supreme Court. In an 1872 court case known as Gibson v. Chouteau, The Supreme Court ruled that “with respect to the public domain, the Constitution vests in Congress the power of disposition and of making all needful rules and regulations. That power is subject to no limitations. Congress has the absolute right to prescribe the times, the conditions, and the mode of transferring this property, or any part of it, and to designate the persons to whom the transfer shall be made.” One wonders, how will the Supreme Court balance this with what an earlier Court called “solemn compacts,” and “solemn trusts” that must be performed “in a timely fashion.” Isn’t over
Page 3 100 years “timely” enough? The Supreme Court in the 1872 ruling seems to have preempted a move like Utah made when they said, “No State legislation can interfere with this right or embarrass its exercise.” The Court did acknowledge that “Pursuant to its broad authority under the Property Clause, Congress may enact legislation to manage or sell federal land.” But they also ruled that any legislation Congress enacts “necessarily overrides conflicting state laws under the Supremacy Clause.” In other words, the Supreme Court has been put in a bit of a tight spot because Congress is not about to give Utah its land they were guaranteed when they joined the Union. Ken Ivory knew when he originated his legislation that those in Congress would do nothing, after all, it’s what they do best. So why bother? Because Ken Ivory wants to make the bureaucrats feel the heat. He wants to initiate a louder and more serious public discussion about state’s rights. He wants to draw laser-like attention to this injustice and expose the hypocrisy, while at the same time providing viable answers on how to jump start our economy, reduce our debt and better educate our children. One senses he also wants to light a spark in his fellow westerners so they will share his passion and commitment to liberate the West. In addition to the four questions Ivory asks the crowds he speaks to, he asks his fellow westerners a fifth and final one: “Why isn’t this the cause of our lives?”
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The Right Mascot
continued from page one
by. When ABB larvae hatch, a snack awaits them in the form of regurgitated flesh. While of interest to beetle enthusiasts, carrion beetle behavior (Warning: Not charismatic!) isn’t the stuff of fundraising appeals. The ABB is thought to have once inhabited a good part of theUnited States from the plain states to the East and the South. Today, it is known to occur in a few states — predominately the plains states north of Texas. This beetle’s plight is poorly understood. To wit, from one 50page government beetle report, “little is known about the demographic status of the ABB in other states and counties where it is believed to be present. Whether ABB populations (and range) are expanding, stable, or contracting in size and vital rates (survival, reproduction, and movement) is virtually unknown for the ABB in much of Arkansas and Kansas and parts of Nebraska and Oklahoma.” Despite a clear informational void, government experts have reached some interesting conclusions. For example, while the beetles continue to exist in Oklahoma even though they seem to have vanished from many other states, the same government document alarmingly reports that “land in Oklahoma is 97 percent privately owned” and that Oklahoma “is the third largest gas producing state in the nation.” The message is obvious: Private property and gas production (wells, pipes, etc.) belong to the villain. Strangely, after looking at the Department of Energy’s map of U.S. gas pipelines and knowing that we have evidence of these beetles in more Oklahoma counties than anywhere else, it might be more logical to con-
clude that other states don’t have enough gas pipelines for the critter to survive. While it is likely a silly argument that this beetle’s preferred habitat is dotted with pipelines, it’s as reasonable as the idea that the greens seek to stop the Keystone Pipeline for the beetle. It is not about the beetle or even really about the effect of the pipeline on habitat. It is about what would flow through the pipeline — energy. From the radical greens’ view, what is worst about this energy isn’t even that it would be a source of CO2. What is worst is that it would be affordable and reliable. Physicists define energy as the capacity to do work. The more we have, the more we can do — the more we can improve the wellbeing of humans. It has brought us out of the cave and lifted us up — shielding us from hot and cold, freeing us to travel far and wide, and providing an abundance that could not have been dreamed of a half century ago. Energy makes progress itself possible. As energy consumption increases, so does wealth, and as wealth increases, so does human lifespan — perhaps the single most important environmental metric there is. Fortunately, North America has been blessed with an amazing abundance of buried energy resources: coal, gas, oil, shale, and uranium — enough to last centuries. The greens, however, wish for it to stay right where it is — buried. From its inception, many in the modern environmental movement have not been concerned about the well-being of mankind. Sure, they will warn of something causing cancer or of some vista our grandchildren should see that might disappear, but this is really another bit of
bait and switch. From their perspective, progress is illusory and mankind is not something to be saved but fettered. As John Muir, founder of the Sierra Club put it, “Man is always and everywhere a blight on the landscape.” As Paul Ehrlich, a more contemporary green, puts it, “We’ve already had too much economic growth in the US. Economic growth in rich countries like ours is the disease, not the cure.” Quite simply, to stop the environmental destruction they believe is taking place, they seek to unplug the shining city on the hill. While many extreme environmentalists will claim that they are for energy but that it just needs to be alternative energy, the reality is that without some as of yet unknown discovery in physics — geothermal, solar, wind, and others would be better described as alternatives to energy. Certainly, there are limited times and places where alternative energy works just fine, but there is no way these sources can provide an affordable and reliable alternative to our current fuel supply. Alternative energy is again the bait offered by the greens as what is really for sale, the switch, is economic stagnation. They may package it as “sustainability,” but it is still a pig with lipstick. And, the pig of economic hardship generally comes with increases in all sorts of human misery: unemployment, bankruptcy, alcoholism, drug use, dropouts, domestic violence, divorce, and on and on. The reality is that environmental policy — no matter how good for flesh-eating beetles — can’t be good for the environment if not good for people. The modern environmental movement, however, may have finally found its perfect mascot: the burying American beetle — or something like that.
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January 15, 2013
Former BPI employee suing for lost job BRETT WESSLER, Staff Writer | Drovers Cattle Network
ne of the 750 employees of Beef Products Inc. who lost his job after the “pink slime” controversy is holding Diane Sawyer, Jamie Oliver and others responsible. Bruce Smith claims ABC News anchor Diane Sawyer, chef Jamie Oliver and others who continuously used the phrase “pink slime” led viewers to believe the product made at BPI was dangerous to consumers and directly resulted in him losing his job. Smith says a photo which the media called “pink slime” is not lean finely textured beef and is not a product found at a BPI factory. The Los Angeles Times reports Smith is suing Sawyer, Oliver and food blogger Bettina Siegel among other defendants. Smith,
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a licensed attorney, is seeking $70,000 in damages. KSFY News reports Smith hopes other former BPI employees follow suit. “My former employer was maliciously and needlessly maligned and accused of producing a food product that did not exist — a product derisively, repeatedly, and relentlessly called ‘pink slime’ by traditional TV broadcast and print media, in concert with social internet media critics, bloggers, politicians, and celebrity entertainers,” Smith said in a statement. Smith worked for BPI for more than four years before losing his job last May. He was the company’s senior counsel and director of environmental health and safety. In addition to the lawsuit, Smith is promoting a book about his experiences titled, Pink Slime Ate My Job.
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Shipping Mr. Gerald’s Hereford odd’s neighbor has raised good Hereford cattle as long as he has known him. As years went by Mr. Gerald, the neighbor, let his herd dwindle in numbers. Then last winter he fell and injured his knee. Todd offered to help and was called upon. Just a word about Todd, he is an east river Dakota cattle farmer with the heart of a west river rancher. He’s a good horseman, wears a big hat and carries a 60' rope! Mr. Gerald wanted to ship some of his long yearlin’s. His whole herd consisted of 12 big cows, one old bull and assorted progeny. On the big day Todd went to the back of the pasture and worked his way through the coulees and breaks, pushing what he could gather to the corral. Mr. Gerald had his wife drive him out to help in their Jeep Wrangler SUV. Things went smoothly till they got close to the corral. In particular, Mr. Gerald wanted to ship a yearlin’ bull who had somehow missed his castration appointment! After turning back at the gate twice, Mr. Gerald gave Todd permission to rope him. Any fair-to-middlin’ roper relishes the opportunity to rope a big target, especially if it belongs to somebody else! It didn’t take long for Todd to run him down and and rope him around his stubby horns. The target refused to be lead to the gate and Todd
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didn’t have enough horse to drag him. Plus the bull ran up the rope a couple times trying to intimidate Todd. They were both losing their temper! Todd yelled at Mr. Gerald to pull his Jeep up in front of the gate. His idea was to tie his rope over the bumper hitch and let the Jeep drag the bull into the corral. Now I can imagine you readers trying to picture Todd accomplishing this feat of cowboy daring-do! But, I told you Todd was a good hand and he did it! He managed to get a half-hitch over the ball and still escape entrapment and injury. In a testosterone milli-minute the bull encircled the Jeep like a yoyo on a string! Not once but three times, then jammed his head into the right front wheel well! The Jeep was rocking dangerously and the Geralds were trapped inside being thrown about like orangutans in a paint shaker! In an act of sacrifice, Todd leaped in and cut his good rope freeing the front seat prisoners. The bulk of the rope ran off with the yearlin’ bull over the horizon. Mr. Gerald rolled his window down, pulled his “Herefords Forever” cap off his eyes and turned to watch the bull disappear. “Well,” he said with the wisdom of an ol’timer, “He wuddn’t quite ready to ship anyway.”
January 15, 2013
“America’s Favorite Livestock Newspaper”
Public grazing study divides Researcher: ‘These kind of papers are a slap in the face’ By MITCH LIES, Capital Press
USDA rangeland scientist disputes the findings of a recently published report that grazing on public lands exacerbates the effects of climate change. Tony Svejcar, research leader of the Eastern Oregon Agricultural Research Service Center in Burns, said the report highlights isolated examples of poorly managed allotments and fails to present an accurate picture of the overall effect of grazing on federal lands. “You can go out and pick spots like that and compare that to no grazing and find that there are impacts,” Svejcar said. “The question is, on what portion of the landscape is that occurring?” In the report, published Nov. 15 in the online publication Environmental Management, the scientists wrote that livestock production on public lands “can alter vegetation, soils, hydrology and wildlife species composition and abundance in ways that exacerbate the effects of climate change on these resources.” “Removing or reducing livestock across large areas of public land would alleviate a widely recognized and long-term stressor and make these lands less susceptible to the effects of climate change,” they wrote. In a phone interview, Robert Beschta, lead author of the study and a Oregon State University forestry professor, disputed Svejcar’s claims that the instances of poor grazing management are isolated and minimal. “We would suggest that the effects have been widespread and they are far-reaching and they are not minimal,” Beschta said. Beschta said the eight scientists wrote the report because they are concerned over how public lands are managed. Svejcar, however, said federal land managers are doing a good job of protecting resources, particularly in recent years. “In general, there has been a lot of attention focused on (grazing management) and managers have responded to that,” Svejcar said. “It is nothing like it was 30 or 40 years ago.” In reference to photos of overgrazed areas that accompany the report, Svejcar said: “If that is happening somewhere, it should be fixed. The (Bureau of Land Management) probably needs to do something about it. “But we don’t see that much of that anymore,” he said. “These kind of papers are a slap in the face for those managers who have put a lot of effort into fixing these things,” Svejcar said. The eight scientists behind the report include Cindy Deacon Williams of Medford, who earlier this year was appointed to the Oregon Board of Forestry; Debra L. Donahue, a University of Wyoming law professor; Dominick DellaSala, president and chief scientist of the Geos
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Institute in Ashland, Ore.; Portland hydrologist Jonathan J. Rhodes; J.R. Karr from Sequim, Wash.; M.H. O’Brien of Castle Valley, Utah; and T.L. Fleischner of Prescott, Ariz. In addition to advocating a dramatic reduction of grazing on federal lands, the scientists also call for more wolves: “Reestablishing apex predators in large, contiguous areas of public land may help mitigate any adverse ecological effects of wild ungulates" such as deer, elk, wild horses and burros, they wrote. “We recognize wolves are controversial,” Beschta said, “but on large blocks of public lands, it may be necessary for wolves to reestablish themselves to restore ecosystems.” Svejcar characterized the report’s authors as longtime antigrazing advocates. “They just periodically come out with stuff like this,” he said. “I can’t see anything new here. “It is the same stuff that has been around for a while,” Svejcar said. “It is something that we have
been through before with this individual and his associates,” said Curtis Martin, president of the Oregon Cattlemen’s Association. “It is just kind of more of the same.” Beschta acknowledged the scientists used existing studies to reach their conclusion. “We basically delved through literature and tried to put together a coherent study on what the literature was telling us,” he said. Asked why the scientists concentrated on public lands to the exclusion of private lands, Beschta said: “We think perhaps there is more of a chance to influence change and there are better opportunities to restore ecosystems on public lands.” The report concludes with a call to action for federal agencies. “If effective adaptations to the adverse effects of climate change are to be accomplished on western public lands, large-scale reductions or cessations of ecosystem stressors associated with ungulate use are crucial,” the report stated.
Page 5
Riding Herd me, I miss my gouda and goat cheese as much as anyone. It’s not because the cows are being mistreated, I assure you. We give them daily massages, did away with those sexist artificial inseminators and had all those hideous bulls slaughtered so they could no longer rape the poor cows.” “But didn’t you know that a cow had to be bred to one of those hideous bulls in order to give birth to a calf in order to lactate?” “What? That sounds absurd.” The Secretary turns to a subordinate from PETA and asks, “Did you know anything about this?” “Sir, the people are starving. Why is there no bacon to bring home?” “Because after we outlawed gestation crates the mother hogs kept squishing their babies. Or eating them. It was gross. They acted like pigs.” “There are reports that people are burning their IKEA furniture for fuel and shooting some of the vast marauding herds of old horses and wolves
CONTINUED FROM PAGE ONE
out West. In light of the food shortage is it now okay to slaughter horses for food or to shoot endangered species to feed your family.” “Absolutely not! Let me make myself clear. Shooting a wolf will land you in jail.” “At least they’d get something to eat in prison,” said a hungry journalist. “Can’t a point be made here that the food shortage is a good example of what happens when we let special interests do our farming and ranching for us, instead of farmers and ranchers? With all due respect, Mr. Secretary, who will save us from our rescuers?” “Are you implying that we don’t know what we’re doing, or have no experience? I’ll have you know that I’ve flown over Iowa numerous times and have visited several wineries out in California. And have you seen our award winning web site? I want everyone to know that we’re doing the best we can.” “With all due respect Mr. Secretary, that’s precisely what the stakeholders are afraid of.”
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Livestock Market Digest
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January 15, 2013
Angus Lead the Way by CALLIE GNATKOWSKI- GIBSON
or decades, Angus cattle have increased in numbers in the Southwest. Today, the breed dominates the market because of the proven results of Angus bloodlines in crossbreeding programs, carcass traits, maternal instinct, and
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more. As cattlemen and women look for ways to make their operations more efficient, more and more are looking to this diverse breed. For these producers, Angus genetics and technology are a good combination, giving their cattle, and therefore their customers, a competitive edge.
PANHANDLE GENETICS 1st Annual Bull Sale • March 22, 2013 SELLING 60 PUREBRED ANGUS BULLS www.panhandlegenetics.com Many of the bulls offered are 18-month-olds from our embryo transplant program. They are by leading sires for calving-ease, muscle and carcass merit. Bulls are on feed south of Dimmit, Texas and can be viewed at any time. The Sale is at Mimms Sale Facility in Hereford, Texas. The bulls will be videoed in February for broadcast along with being scanned for carcass merit. Contact Larry Plote 806/240-1941 or by email larry@plotecontracting.com
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auer Dependable Genetics 36th Annual Angus Bull & Female Sale January 26, 2013 • 1:00 p.m. At the Ranch - Hinton, Iowa
Featuring 200 Head:
Elite Spring Bred Cows Fall Cows w/Calves at Side Mature Herd Bulls
Spring Bred Comm. Cows Spring Bred Comm. Heifers Coming Two Year Old Bulls
From Northeastern New Mexico Manny and Hayley Encinias, of La Gloria Cattle Company, have been raising registered Angus cattle in northeastern New Mexico since 1999. They also have a herd of commercial Angus cattle and raise some crossbred calves as show calves. The couple first got interested in the registered side of the Angus business while attending graduate school at North Dakota State University, Manny said, where they got to know Justin Spickler, whose family operates Spickler Angus, a large, progressive, Angus operation in the state. “We built good relationships and were fortunate to travel and become part of the Angus family while we were in North Dakota. Jokingly, we always say that the best people we met there were Angus people, and the best cattle we saw were Angus cattle.” Manny and Hayley purchased their first registered females from the Spicklers, but after returning to New Mexico realized that the environment was challenging for the larger framed North Dakota females. They have incorporated moderatesized cattle from producers including Bill and Lisa Gardner of Manzano Angus in Estancia into the operation. The cattle are pasture-raised, in Union, San Miguel and Santa Fe Counties. “The majority of our pastures are rough and rocky piñon/juniper country,” Manny said. “I like it because it’s real, and offers our cows enough
diversity and flexibility to be able to get out and graze and browse and do their job.” The cattle stay on pasture year-round. Each cow is bred artificially at least once, then bulls are put out with the herd for 120 days. Replacement heifers are bred in mid-May, and the mature cows are bred in mid-June. “We have high expectations for our females and bulls alike, they all have to get out there and work,” he noted. “We don’t feed the cattle a lot, but when we do, we use self-feed protein supplements, placed in harder to access parts of the pasture.” The family markets both bulls and replacement females private treaty, from the ranch. They originally sold bulls through different sales, but decided to focus on private treaty sales to give customers a chance to see the ranch environment and how the cattle are raised, he explained. “Those are the kinds of things we look for when we buy a bull, and we wanted to give our customers that same opportunity. Plus, we get the chance to get to know our customers.” Bulls are raised with the consumer in mind, according to Manny. “We have a little differ-
ent philosophy when it comes to growing our bulls. We push them, but push them with a high roughage-based diet, and keep them in the pasture if possible.” “Our cattle are a good fit for our country,” he explained. “They are moderate sized and easy fleshing and pass along that easy-fleshing trait to their calves. They are extremely fertile, and can convert roughage to keep their condition on pasture.” Disposition is an important trait on the Encinias operation. “We select on disposition, and there is no room for bad attitudes. We handle the cattle quite a bit because of our AI program, but try to make sure every time we put them in a pen or in the chute, it’s a positive experience.” “It’s all about how you handle the cattle,” he continued. “As kids, my Granddad and Dad taught us not to rush the cattle, and we work them the same way today.” And, that pays off, he said. “Some of the best compliments we get are from people commenting on how gentle our cattle are, and easy to work and load.” In addition to Manny and continued on page seven
Angus Ranches Ranked Among the Nation’s Top 25
At Jauer Dependable Genetics, the scope of our program continues to be the production of efficient Angus mamma cows. We have over 30 years experience linebreeding low maintenance, maternal lines of cattle that produce consistent, predictable, balance traited offspring that can be profitable in any environment. Our stringent breeding program - utilizing the elite cow-maker sires of the Angus breed combined with our rigorous selection process have helped Jauer Dependable Genetics become one of the leading, maternally efficient Angus herds in the country.
Jauer Emblazon 78
Jauer Magnitude 1019 59
Our 36th Annual Angus Bull and Female Sale will feature an excellent set of spring bred and fall bred females along with an outstanding set of bulls sired from elite cow maker sires like the outstanding Emblazon son, and the tremendous double-bred Emblazon grandson, pictured above.
JAUER DEPENDABLE GENETICS 31059 Juniper Ave. Hinton, IA 51024 www.jauerangus.com
• Roger ph. (712) 947-4357 • Kurt ph. (712) 947-4338 • Doug - doug@jauerangus.com • Internet bidding - LiveAuctions.tv
attle herd inventory numbers remain somber this year; down more than 1.9 million from 2011 to 2012, according to recent numbers reported by CattleFax. Breeders are faced with tough decisions and need reliable solutions to keep their operations running. Despite the downward industry trends, the American Angus Association® reports a nearly 7 percent increase in registrations. A total of 315,007 animals were recorded during fiscal year (FY) 2012, which began Oct. 1, 2011, and ended Sept. 30, 2012. “No doubt, it’s a challenging time to be involved in the cattle industry,” says Bryce Schumann, Association chief executive officer. “But we are finding that in order to make the beef cattle business better for the future, we need to keep our eyes set on raising reliable, high-quality animals that produce beef to meet consumer demands.” And in many instances, that goal starts with the Angus breed. In fiscal year 2012, 625 Association members, representing 41 different states, registered 100 or more head of Angus cattle. The top 10 states for registrations were, in order: Montana, South Dakota, Nebraska, Kansas, Oklahoma, Texas, North Dakota, Missouri, Idaho and Wyoming.
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Top Angus Breeders The Association also announced its FY 2012
members who registered 100 or more animals. The top 10 breeders for registrations were, in order: ■ Express Angus Ranches, Yukon, Okla. ■ Sitz Angus Farm, Harrison, Mont. ■ Gardiner Angus Ranch Inc., Ashland, Kan. ■ Connealy Angus Ranch, Whitman, Neb. ■ Vermilion Ranch, Billings, Mont. ■ Thomas Angus Ranch, Baker City, Ore. ■ 44 Farms, Cameron, Texas ■ Riverbend Ranch, Idaho Falls, Idaho ■ Schaffs Angus Valley, Saint Anthony, N.D. ■ Stevenson Diamond, Dot Hobson, Mont.
Top National Breeders The value of Angus genetics is also being recognized on the national level. In a recent article in the National Cattlemen’s Beef Association publication, Directions, the organization published CattleFax reports on the top producers in each beef industry segment, in addition to other important cow-herd statistics. According to the annual report, approximately 19 out of the top 25 seedstock operations use Angus genetics. Likewise, 17 out of the top 25 cow-calf operations incorporate the Angus breed. CattleFax statistics also show JBS Five Rivers Cattle Feeding LLC as the largest feeding operation with 11 yards and a capacity of 940,000 head. Cargill Meat Solutions ranked as the largest beef packer.
January 15, 2013
Angus
continued from page six
Hayley and their daughters Mia and Elia, Manny’s father, Adan, Hayley’s father, John Dunlap, and Manny’s brother-in-law Michael are a big part of the operation. Since Manny and Hayley both work full time – Manny as the Extension Beef Cattle Specialist for New Mexico State University and Hayley as the advanced science and Spanish teacher at Clayton High School — it takes a concerted family effort to cover the day-today cattle management. The kids are growing up pretty quickly, he noted, but they are a lot of help. “It is wonderful that we can raise our kids this way. Our family doesn’t go on vacations, when we get together it’s usually to work cows. We are very fortunate to have family that is willing to help when we need it.” In addition to the cattle operation, the Enciniases offer reproductive management services, and work with producers to develop nutrition and health programs, as well as estrous synchronization and artificial insemination (AI) programs, and they also offer pregnancy diagnosis with their ultrasound – in which they accurately age and sex pregnancies. “I know there is not a lot of margin in this business, so we try to promote and market management tools that have helped us make improvements in our herd,” he explained. Manny is a firm believer in Angus — both in the cattle themselves and the benefits to the producer of being affiliated with the American Angus Association, which has been working since the 1970s to develop programs to promote Angus cattle and beef. “When you look at the industry as a whole, the industry has gone with the black hide because of the influence and work of the Angus Association,” he pointed out. “You just get so much added value for Angussired calves out of registered Angus bulls.” Commercial producers can also benefit from Angus genetics, he noted. “When you look at your profitability equation, having some percentage of Angus in your commercial cow herd will deliver those traits like fertility and calving ease that are so important. Angus may not be the solution for everyone, but in the big and rugged country – if a cow can’t breed up early, have a calf, and raise it to weaning, she’s not doing her job.”
To the Texas Panhandle Performance is key for the Bradley family, of the Bradley 3 Ranch near Estelline, Texas. Minnie Lou and Mary Lou Bradley, and Mary Lou’s husband James Henderson raise registered Angus cattle in the southern part of the Texas panhandle, about 100 miles southeast of Amarillo. The ranch is made up of rolling plains, mesquite and canyon country. All cattle are pasture-raised, and aside from first-calf heifers, calve unassisted
“America’s Favorite Livestock Newspaper” in the pasture. “Our cattle know how to get out and graze, cross creeks and draws, and have the common sense that they get from being out in the pasture,” Mary Lou said. The family works to raise wellbalanced cattle that are strong in multiple traits, Minnie Lou noted. “With the genetic testing and technology that’s available today, we can determine when a calf is one day old whether he has an opportunity to be a good carcass animal, or is strong in calving ease or maternal traits, so we can select calves that are fairly good in all areas.” A gentle disposition is important, especially as the ranching population gets older, Minnie Lou said. In fact, calving ease has been replaced by disposition
as the number one trait people look for. “We keep our cattle gentle, and get rid of anything with a problem.” The Bradleys strive to raise functional cattle that do well in a
but our cows have done really well and raised heavy calves with minimal input.” Unlike many registered producers, the Bradleys try to run their operation just like a commer-
Granddad and Dad taught us not to rush the cattle, and we work them the same way today. variety of environments. “Like everybody, we have a drought about every ten years, but we usually don’t have the heat we have had the past couple of years,” Mary Lou said. “In the heat, the cattle definitely needed shade, but at the end of the day still calved and performed. We’ve had no real rain for two years,
cial cattle operation. Using GPS to track cattle movement, they have worked to develop a feed and water situation that allows them to move the cattle around and well-utilize their pastures. They have a 60-day calving season, and expect cows to calve and re-breed within that time. First-calf heifers are bred by arti-
Page 7 ficial insemination, and multiple sires are used in the pasture on the mature cows. They also select some cows, who meet a strict set of requirements, as embryo donors. The ranch has maintained Standardized Performance Analysis (SPA) data on the entire herd since the program’s inception, Minnie Lou noted. The SPA program takes all inputs and outputs, including birth dates, weaning weights, feed costs and more, and computes the production cost per animal. “It lets us know just what it takes to raise a calf, so we can see if we’re raising our registered cattle as cheaply as commercial producers do.” The Bradleys market both continued on page eight
Livestock Market Digest
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Angus continued from page seven weaned heifers and experienced cows from the ranch, starting in late May or early June. Interested customers’ names are put on a list, then when the females are ready to go, the Bradleys contact
customers starting at the top of the list until all available females are sold. Bulls are sold at the family’s annual production sale, set this year for February 16, 2013 at the ranch. Customers are invited to come out on Friday before the sale for dinner and a chance to
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Radale Tinerr, Regional Manager P.O. Box 203 Hempstead, TX 77445 979.492.2663 rtiner@angus.org
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look at the bulls in a relaxed environment. “Everyone has their own methodology — some are focused on budget; some have a specific trait, like calving ease, that they are looking for; and others look at all the numbers.” This year, bulls will be tested with new technology developed by Pfizer Genetics and adopted by the American Angus Association, which identifies 50,000 DNA markers. Data from this test is the equivalent of having several progeny on the ground. “We want to give people more confidence in what they are buying and reduce the unknown, so we have stepped out there, spent the money, and made the commitment,” Mary Lou said. “The big question in farming and ranching today is, “How can we do more with less?” and genetics are a big part of that equation.” Bulls are grown out in large paddocks on a ration that is primarily roughage. “Fertility is number one, and we make sure our bulls have good feet and legs,” Minnie Lou said. “If you don’t have a bull that can walk, he’s not going to do you much good.” Originally, the family sold their bulls by private treaty. They started the sale in the early 1990s to better serve their customers. “We had so many people calling, asking us to send our best bulls, and it occurred to us that what we thought were our best bulls
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might not be what our customers thought were our best ones. We started the sale so that customers could determine what they like, and to give people an equal opportunity to pick what works for them,” Mary Lou explained.
He asked what I thought he should do, and I said I thought he should try some Angus bulls,” she said. “So, he asked me to find him some. Four years later, I married that young man.” She and her husband started
Calving ease has been replaced by disposition as the number one trait people look for. “A lot of people raise nice bulls. We are trying to take those nice bulls and stay out in front of where our customers and the industry is going, and try to meet their needs. Our commitment is to raising quality seedstock. We know our bulls influence a lot of cattle, and are serious about doing our job well,” she continued.” Minnie Lou grew up raising Angus cattle in 4-H in Oklahoma. After graduating from Oklahoma A&M, now Oklahoma State University, she went to work for the Texas Angus Association. One weekend, she went home with a young man she was dating to help brand calves on his family’s Hereford operation — the dominant breed in the Southwest at that time. She proved to be good help, and that evening, the young man’s father asked what she thought. “I told him I thought dehorning was the cruelest thing I had ever seen.
out in the commercial Angus business, but soon decided that the ranch was not big enough to be able to make a living and raise their family in the commercial business. “We decided to raise purebred Angus, but said if we’re going to do this, we are going to raise ranch-raised bulls for ranchers. Fifty-seven years later, we’re still raising Angus cattle.” Today, there are more Angus cattle in United States than the next nine breeds combined, and Angus genetics influence 70 percent of the commercial herd. A big reason for the breed’s dominance is the leadership and staff of the American Angus Association (AAA), who have done a good job seeing and preparing for the future by focusing on performance, and developing programs like branded beef and DNA testing, said Minnie Lou, a past member of the AAA Board of Directors.
Kids won’t eat their spinach — or squash or lentils — and trash cans are getting fed by JOSH VERGES, (Sioux Falls, S.D.) Argus Leader
BULL SALE T CALVING EASE • GROWTH • CARCASS
January 15, 2013
he Department of Agriculture is responding to parents, politicians and meal planners by softening its push toward healthier school lunches. For the rest of the school year, schools will be allowed to serve as much meat and grains as they want, as long as they don’t exceed per-meal limits on total calories. Meal planners welcome the flexibility but still have concerns about the Health Hunger-Free Kids Act, which went into effect this year. “Part of me is happy and part of me is just frustrated,” said Sandi Kramer, child nutrition supervisor for the Yankton (S.D.) School District. “I’m glad they’re listening to us; I just wish they’d listened to us sooner.” The meal guidelines have forced schools to double the amount of fruits and vegetables they serve while capping calories and cutting back on sodium. School officials say students now are throwing away much of their meals, particularly the fresh produce, and the 850-calorie limit on high school meals are leaving many students hungry, especially athletes. Kindergarteners to fifth-graders have a 650-calorie cap; sixth- to eighth-graders have a 700-calorie cap. “They’ll throw away like this cooked squash, the lentils, the cooked spinach and broccoli,” said a student at Niagara Falls High School in New York. Other kids at high schools in her area concurred: If they don’t want it, it goes in the trash. Brandon Valley schools in South Dakota have studied their food waste and found 30 percent of fruits and more than 50 percent of vegetables served end up in the trash. “The waste is extremely high,” said Gay Anderson, Brandon Valley’s food service director. “We need to fix that.” The biggest concern for nutritionists is new limits on grains and meats or meat alternatives, according to Agriculture Secretary Tom Vilsack. “This flexibility is being provided to allow more time for the development of products that fit with-
in the new standards while granting schools additional weekly menu planning options to help ensure that children receive a wholesome, nutritious meal every day of the week,” Vilsack wrote in a letter Friday to members of Congress. Brandon Valley used to allow students to take an extra slice of bread to fill up. Officials stopped doing so this year when limits on grains went into effect. They might bring the option back now but are leery of making too many changes. Although schools now can hand out extra bread or increase meat portion sizes, Anderson said they still have to watch that they don’t exceed calorie maximums. In Yankton, Kramer plans to incorporate more meat or bread on occasion. She tries to get as close as possible to the 850-calorie limit for high school meals, and a couple times a month has used small servings of pudding or Jell-O to do it. The USDA’s recent decision will allow her to serve a larger bun or serving of meat instead. But Kramer would like to see more changes, such as a modest increase in the calorie ceiling. She also finds it difficult to find legumes that students will eat and thinks three-quarters of a cup of vegetables is too much for elementary school students. Anderson wants the USDA to relax its limits on protein for school breakfasts. In addressing the problem of hungry students, Vilsack gave no indication the USDA would move on calorie limits. Instead, he suggested families and sports teams bring food to supplement the taxpayersubsidized meals, and noted that students are allowed to buy additional food at school. “New school meals are designed to meet only a portion of a child’s nutritional needs over the course of the school day,” Vilsack wrote. The Government Accountability Office recently agreed to study how the meal changes have been put in place across the country. (Contributing: Mary Friona, WGRZ-TV, Buffalo, N.Y.)
“America’s Favorite Livestock Newspaper”
January 15, 2013
Page 9
Ringling circus owners win $9.3 million settlement from animal rights groups by DAPHNE DURET, Palm Beach Post Staff Writer
wners of the Ringling Bros. and Barnum & Bailey circus, said they will receive $9.3 million from the American Society for the Prevention of Cruelty to Animals to settle part of a lawsuit the circus owners filed against the ASPCA and several other animal-rights groups. Feld Entertainment, which owns Ringling Bros., sued the ASPCA and the other groups in 2007 under the Racketeer Influenced and Corrupt Organizations (RICO) Act, claiming the groups and their lawyers paid more than $190,000 to a former Ringling employee who had joined them in suing the circus company in 2000, alleging animal cruelty under the Endangered Species Act. A federal court at the end of a six-week trial in 2009 ruled in the circus’ favor. In its ruling, the court characterized former employee, Tom Rider, as a paid witness whose testimony was not credible. Feld’s racketeering lawsuit against the ASPCA also includes the Humane Society of the United States, the Fund for Animals, Animal Welfare Institute, Animal Protection Institute United with Born Free USA, Tom Rider and some of the attorneys involved in the litigation. But Friday’s settlement only covers the ASPCA. “These defendants attempted to destroy our family-owned business with a hired plaintiff who made statements that the court did not believe,” said Kenneth Feld, chairman and chief executive officer of Feld Entertainment. “This settlement is a vindication not just for the company, but also for the dedicated men and women who spend their
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lives working and caring for all the animals with Ringling Bros. in the face of such targeted, malicious rhetoric.” The settlement ends a part of a battle in what has been a decades-long war between animal-rights activists and circus companies such as Ringling. Activist groups have long held that Ringling treats its performing elephants cruelly. And over the years, they have released undercover videos showing trainers beating the elephants, which activists say are housed in cramped quarters and are poorly treated for debilitating diseases. As part of the settlement, ASPCA officials said that their organization does not admit any liability or wrongdoing. ASPCA CEO and President Ed Sayres, in a prepared statement, said the federal court that ruled on the 2000 lawsuit threw the case out without ruling on the merits of the elephant-abuse allegations. “In fact, this litigation has stopped being about the elephants a long time ago,” Sayres said, adding that the organization ultimately decided to resolve the case to avoid the further expense of a long, protracted litigation. “We are glad to put this matter behind us so we can focus most effectively on our life-saving work, preventing cruelty and improving the welfare of animals.” The Ringling Bros. circus was performing its show, “Holiday Circus Spectacular,” at the Palm Beach County Convention Center. Feld Entertainment also produces several other performance shows, including Disney on Ice and Monster Jam.
P.O. Box 7458 Albuquerque, NM 87194 505/243-9515 • Fax 505/998-6236 caren@aaalivestock.com www.aaalivestock.com
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Judge sides with ski areas, rejects Forest Service water rights rule by JASON BLEVINS, The Denver Post
U.S. District judge in mid December overturned a controversial new water regulation requiring ski area permit holders on public land to turn over water rights to the U.S. Forest Service (USFS). Judge William Martinez ruled that the Forest Service’s revision of 2011 and 2012 permit regulations governing water rights violated federal procedural rules, failed to evaluate economic impact and violated ski area rights. Martinez sided with the National Ski Areas Association (NSAA), which was suing the Forest Service over the new water rights permit rules, ordering the agency to not enforce the terms of the new rules. Martinez remanded the issue back to the Forest Service. If the agency chooses to revive the issue, NSAA public policy director Geraldine Link said would “definitely be a more public process.” “I think a lot of different entities will weigh in this time. This had much broader issues than just the ski industry. I don’t expect the Forest Service will issue the same clause next time around,” she said. “This really threatened the administration of state water law and I would be surprised if the state didn’t weigh in.” The Forest Service argued that the new clause — which required ski area permit holders to transfer water rights secured by areas operating on public land to the federal government — kept the natural resource connected to the land. In mid-
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November oral arguments before Martinez, the Forest Service argued it merely returned permit water policy to long-held conditions imposed before a 2004 change in the rules. Still, Martinez’s ruling noted that during the last three decades, the Forest Service “did not follow a uniform policy and did not require federal ownership of water rights in all ski area permits.” The agency said it changed the permit requirements to assure that ski areas never sold water rights connected to federal land. “It’s a monetary calculation,” Department of Justice attorney Clay Samford argued in the November 15, 2012 hearing. “As the value of these rights increases, it may make economic sense for ski areas to sell some rights off.” The NSAA argued that the agency violated the Federal Administrative Procedural Act by not soliciting public input on the new rule. The Association’s January 2012 lawsuit also argued the new water regulations violated the National Forest Management Act and the Regulatory Flexibility Act. The NSAA said the agency water rules impacted 121 ski areas in 13 western states. The Forest Service admitted it did not follow the public review and comment guidelines of the Administrative Procedural Act because the new water rules were simply a regulatory tweak, not a consequential legislative rule change. Martinez, who in October last year cited improper environmental review in ordering the U.S. Department of Energy to stop permitting uranium mining and milling at 31 leased sites in west-
ern Colorado, ruled the Forest Service violated all three regulatory acts when it issued the new water rule. Martinez’s decision only addresses the Forest Service’s procedural deficiencies when it crafted the new water directives. He did not rule on the NSAA’s substantive claims, specifically that the agency should not condition ski permits on the transfer of water rights obtained through a state process. After the ruling the Forest Service was checking on a response so no comment was available. Colorado plays a large role in the water issue, said Melanie Mills, whose Colorado Ski Country trade group includes 21 of 25 of the state's ski areas. She said ski areas were ready to work with the agency to forge water rights rules that did not impact water purchased off federal lands but used on federal lands. “There is plenty of room for agreement. Plenty of common ground,” Mills said. “Our belief is that the focus should be on the water on the permit area itself. Talking about water that a permittee might divert from other areas off-permit or might purchase or lease through other arrangements, that gets into area that folks beyond ski areas will be worried about.” The ruling is not that surprising. At the November hearing, Martinez grilled Forest Service attorneys on the idea that a ski area would sell essential water rights. “Why would a ski area sell off water rights and leave itself with insufficient water to operate a ski area?” he said. “Then you are not a ski area anymore.”
Our Annual
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Livestock Market Digest
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Supreme Court rules government may be liable for flooding by ADAM RAMIREZ, findlaw.com
he Supreme Court ruled on recently that the federal government may be required to pay damages when it releases water from a dam that causes temporary flooding for a property owner downstream. The 8-0 ruling carries potential significance for future cases involving temporary seizure (or” taking”) of property. The case looked at the politically charged issue of when government activity that affects private property constitutes a “taking” that requires payment to a landowner. The 5th Amendment states that the government must pay owners of private property that it takes for public purposes. Writing for a unanimous court, Justice Ruth Bader Ginsburg said temporary flooding of private land by the government is “not categorically exempt” from liability under the 5th Amendment’s Takings Clause.
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January 15, 2013
Deutsche Bank co-CEO drawn into CO2 tax evasion probe by EDWARD TAYLOR, Reuters
eutsche Bank co-chief executive Juergen Fitschen was drawn into a widening tax evasion probe linked to carbon trading at Germany's biggest lender on Wednesday as police and tax inspectors raided its offices. Prosecutors said they were investigating 25 bank staff on suspicion of severe tax evasion, money laundering and obstruction of justice, and searched the headquarters and private residences in Berlin, Duesseldorf and Frankfurt. “Two of Deutsche Bank’s Management Board members Juergen Fitschen and Stefan Krause are involved in the investigations as they signed the valueadded tax statement for 2009,” Deutsche Bank (DBKGn.DE) said in a statement. Back in 2009, Fitschen was Germany chief and Krause was chief financial officer, a post he retains to this day. Deutsche Bank said it voluntarily corrected its 2009 tax return, but noted that authorities disagreed over whether this had been done in a timely fashion. “Unlike the Public Prosecutor’s Office, Deutsche Bank is of the opinion that this correction took place in due time,” it said. Around 500 police and tax
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inspectors raided Deutsche Bank, arresting five staff in a probe linked to a tax scam involving the trading of carbon permits. Tax inspectors clutching backpacks and suitcases were seen leaving the bank’s twin-tower headquarters in Frankfurt. About 20 police mini buses and two coaches were parked outside. The raids mark a setback for Deutsche’s efforts to polish its image. The bank is struggling with lawsuits in the United States and the UK connected to allegations of Libor manipulation and the mis-selling of subprime assets during the 20072009 financial crisis.
Armed Police Eight policemen wearing dark blue overalls and armed with handguns were stationed in the bank’s lobby and appeared to be coordinating a high-profile search of the glass towers which can house up to 3,000 staff. The officers declined to comment on the exact nature of the raids, which a person working in the building said started at 0915 CET (8:15 a.m. British time). In October, a financial source familiar with the matter said Deutsche had suspended a handful of employees in connection with an investigation into
tax evasion on carbon permits by traders. The judge in that case sentenced six men to jail. He stopped short of prosecuting Deutsche Bank staff but noted that the bank — through its conduct — had left the door open for tax evasion. A ring of traders was accused of participating in a conspiracy to evade around 300 million euros (241.2 million pounds) in value-added tax (VAT) on carbon permits between August 2009 and April 2010. Deutsche Bank said it was cooperating fully with the authorities and declined to comment on the arrests. “Public prosecutors searched Deutsche Bank offices today in connection with investigations that have been underway since the spring of 2010 against individuals suspected of tax evasion in the trading of CO2 emission certificates,” Deutsche Bank said in a statement.
Riding the Carousel The European Union’s spot carbon market was hit by socalled carousel trade in 2009 and 2010, in which buyers imported emissions permits in one EU country without paying valueadded tax (VAT) and then sold them to each other, adding tax to the price and pocketing the
difference. To stop the problem of VAT fraud in the EU’s emissions trading scheme, in June the European Commission activated a new common carbon registry to replace some 30 national registries with a single platform. Investigations are continuing in other EU countries. Three British men were jailed for a combined 35 years after being found guilty of a 38-million pound carbon tax fraud, Britain’s revenue and customs agency said in June. Czech police accused two men of a $20 million CO2 tax fraud in October. The European police agency Europol estimates VAT fraud has cost EU states an estimated 5 billion euros in lost tax revenue. The EU Emissions Trading System, the bloc’s chief weapon against climate change, caps the emissions of factories and power plants, forcing them to buy carbon permits for additional emissions if needed while also allowing them to sell surpluses. Separately, Deutsche Bank is set to cut staff at its U.S. and European power and gas trading desks with up to 50 traders leaving the bank, and its global head of commodities, David Silbert, is also to leave. (Additional reporting by Alexander Huebner, Andreas Kröner, Vera Eckert and Nina Chestney; Writing by Jonathan Gould; Editing by David Cowell and Helen Massy-Beresford)
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f you have livestock, a product or service that stockmen and their families need, they will find out about it quickly if you advertise in the Digest. Digest readers know value when they see it and they respond rapidly to a good offer. Before you plan your advertising budget, think hard about how to stretch your dollars and where they are spent the most efficiently. Are you paying more to reach fewer qualified potential customers than you would receive in the Digest? The Digest’s circulation is concentrated in the most important livestock producing states: Nebraska, Colorado, Wyoming, Montana, Utah, Idaho, California, Oregon, Washington and Texas. The Digest caters to the most active readers in the livestock world — who ARE the buyers and sellers of livestock, the ones who show up and speak up. It is the ONLY place to get Lee Pitts’ perspective on the world and how we are going to thrive into the future.
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Shame on the Interior Department for trying to drum a family-owned enterprise out of business by MICHAEL MORITZ, Wall Street Journal opinion column
fter a seaside area has been designated as wilderness, when is it considered pristine enough by Washington’s standards? Is it after airplanes have been banned from flying over it? After electricity pylons and telephone cables have been removed, cars and bikers prohibited, the roads torn up? When hikers are forbidden access to trails, and kayakers, sailors and snorkelers banished from the water? When eucalyptus trees and other foreign species are eradicated? Or only after Miwok Indians’ arrowheads have been excavated and placed in a museum? Apparently it is none of the above, at least according to Secretary of the Interior Ken Salazar. Instead, he seems to think that turning a tiny portion of the lovely coastline of California’s Marin County (part of the National Seashore) into the first marine wilderness in the continental US also requires destroying a family-run oyster operation that has conducted business in the same spot for eight decades. So, Mr. Salazar recently ordered the business to close within 90 days — a decision that will spell ruin for the Lunny family, owners of Drake’s Bay Oyster Farm, which supplies 40 percent of California’s oysters. The Lunny family, which has made major improvements to the farm operation it took over in 2004, has been hounded for years by a National Park Service with a vendetta so chilling that any rancher on federal lands should be alarmed. Goaded by a clutch of environmental groups, the Park Service has resorted to tactics that might have come straight from Nixon’s dirty-tricks department. For instance, the Park Service alleged that the farm’s oyster boats disturbed the quiet of the area, but the measurements used were revealed to have been taken in New Jersey — and involved jet skis. For years, Park Service officials have colluded with the California Coastal Commission to hammer the small oyster company with allegations
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about purported abuses and violations of some of the many overlapping, confusing and contradictory permits with which it is supposed to comply. California Sen. Dianne Feinstein has for years been sounding the alarm about the behavior of the Park Service. In a May letter to the California Fish and Game Commission, she outlined her worries — including a mention of the jet-ski episode — and said: “I became concerned about this issue when I found that the science regarding the impacts of the oyster farm had been manipulated, and that the oyster farm operator had been treated in a biased and unfair manner. The Park Service has repeatedly misrepresented the scientific record since 2006 to portray the farm as environmentally harmful, and it is my belief that the Park Service is doing everything it can to justify ending the oyster farm’s operations.” Unable to use its doctored studies to close the farm, the Park Service changed tack and resorted to even more dubious arguments. It claimed that a lease signed 40 years ago wasn’t renewable. There are only two snags with this argument. First, the lease doesn’t say that it isn’t renewable. Second, the congressmen who helped form the Point Reyes National Seashore have firmly stated that their intention was to ensure the continued operation of the small farms that were occupying the land. Yet the Interior Department has ignored the statements of former California Reps. Pete McCloskey (no staunch right-winger, by the way, but a pro-choice advocate and backer of stemcell research and assisted suicide) and John Burton (a former California Democratic Party chairman). The Park Service ignored another inconvenient fact: It doesn’t control fishing rights in the disputed area. Those are controlled by the State of California. So, the Lunnys sued Mr. Salazar, the Department of the Interior, the National Park Service and its director. Now a U.S. judge gets to decide whether the federal government can bully this small business out of existence. Mr. Moritz is chairman of Sequoia Capital.
“America’s Favorite Livestock Newspaper”
January 15, 2013
Will the cows come home? Commentary by DERRELL S. PEEL, Oklahoma State University Extension Livestock Marketing Specialist
Editor’s note: Peel is a noted expert in the field of international beef trade and the livestock sector. It is reprinted here with Peel’s permission.
Can we rebuild the beef cow herd? hat was the question posed to me by a producer in response to my recent article suggesting that two years of drought liquidation, on top of previous liquidation, has pushed the beef cattle inventory so low that we are effectively “out of cattle” in terms of our ability to maintain beef production and rebuild the cow herd.
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This producer specifically noted two issues that will affect the ability of the beef industry to rebuild: the loss of forage land to non-agricultural (development and recreational) uses; and the conversion of pasture to crop production. While these and other issues pose significant challenges to rebuilding the beef cow herd, I do believe there is ample capacity to rebuild the cow herd according to the demands of the market. That said, the question of how and where it will done is likely to be different in the future than in the past. In the short run, the drought is, of course, the major factor affecting herd liquidation. Until forage conditions improve, the question of herd rebuilding is a moot one. And while there is no current indication of improving drought conditions, nor any guarantee that conditions will improve, it is likely that some regions, at least, will see improving conditions in the coming months. The more regionally specific drought in 2011 caused a 1.07 million head decrease in beef cows in a single year in Texas, Oklahoma and the surrounding states. Much of this region is still in severe drought, with some areas, such as Arkansas, in considerably worse shape in 2012 than in 2011. There has been some improvement in drought conditions in parts of east Texas but little if any herd rebuilding has taken place yet. Most all of this loss in beef cows can be recovered post-drought, though some parts of the region will take several years to fully recover. The impact of the 2012 drought has yet to be documented until the next USDA (U.S. Department of Agriculture) cattle inventory report is available. I expect to see another 400 to 500 thousand head decrease in the beef cow herd, spread across several states. I suspect this reduction represents extra heavy culling of the cow herd and fewer heifers entering herds rather than the deep herd culling or herd dispersals that occurred in 2011. Nevertheless, this is additional herd capacity that can return rather quickly with improved forage conditions. Land use issues affecting the beef industry reflect long term trends and on-going structural changes in U.S. agriculture. Concerns about development and recreational use of forage lands are common and under-
standable among many cattle producers. Certainly in some areas, the loss of pasture to small acreage development or for other nonagricultural uses is significant and noticeable. However, about 30 percent (571 million acres) of the total U.S. land area of 1.93 billion acres is rangeland, pasture or non-cultivated cropland (mostly hay). No doubt this includes some land used for recreation despite being designated as agricultural. Another 810 million acres (42 percent) is forest land or federal land, a significant portion of which is grazed or partially grazed by livestock. Thus, a majority of some 1.381 billion acres (72 percent) of the total land in the country is used exclusively or partially for livestock, mostly cattle, production. This compares to 305 million acres (16 percent) used for crop production; 33 million acres (1.7 percent in the Conservation Reserve Program); 111 million acres (5.7 percent) developed; and another 5.2 percent in water surface and other rural uses. Land used for development increased nearly 17 million acres from 1997-2007. Land diversion away from agriculture is not a trivial matter but does not represent a significant barrier to potential rebuilding of the cow herd, at least not on a national basis. The implications of this issue certainly vary in some regions and are part of a broader set of regional changes in agriculture that will affect the beef industry in the future. The next installment of this article will discuss how and where beef cow herd rebuilding will take place.
It Always Takes Longer Than You Think; We Are “Out of Cattle” xactly two years ago I wrote an article about the implications of declining cattle numbers (“At What Point Do We Run Out of Cattle”, Cow Calf Corner, November 15, 2010). In that article I suggested that after many years of herd liquidation, we had reached a point where it was not possible to maintain beef production without herd rebuilding. The article suggested that beef production would drop without herd rebuilding and that herd rebuilding would squeeze cattle supplies even more in the short run. The article further suggested that the only possible postponement to those conse-
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quences would be the temporary one if more herd liquidation occurred. Little did I know that November of 2010 was the beginning of the driest and warmest year in Oklahoma and the Southern Plains. The resulting cow liquidation and preempted herd rebuilding that occurred in 2011 and 2012 bring us to this point where the impacts I anticipated many months ago are now upon us. Feedlot placements have dropped sharply the last four months and feedlot inventories are declining and will continue to decline in the coming months. In my mind the bigger question is not why we have such a dramatic decrease in feeder cattle supplies now but why it has taken so long for the situation to manifest itself. I believe there are several reasons. The biggest and most obvious one is two years of drought which provoked additional liquidation, and postponed heifer retention thereby moderating declining overall cattle numbers. It seems to me that drought and high cattle prices the last two years have had the effect of bringing cattle “out of the bushes” in a way that we have not seen for many years and may not be fully reflected in the cattle inventory data. Another factor is veal calf slaughter, which is a minor part of the total, but responds as you would expect in these conditions. Veal slaughter decreased about 11 percent from 2008 to 2011 and is on pace to decrease another 11 percent in 2012. Compared to 2010, the decrease in veal slaughter the past two years has added roughly 120,000 head to feeder supplies. Finally, feeder cattle imports from Mexico and Canada have augmented declining U.S. feeder supplies since 2009. In the last two years, increased feeder cattle imports have boosted feeder supplies by roughly an additional 300,000 head. In the first half of 2012, Mexican imports were continuing that trend with a record pace of drought forced sales of cattle. As we move into 2013, some things about cattle supplies are more clear and some are still uncertain. What’s clear is that two more years of liquidation have put the industry in an even deeper hole with respect to feeder supplies. The 2013 U.S. calf crop will be the smallest since 1942, based on my estimates. What is also clear is that feeder cattle imports will drop dramatically. Mexican cattle imports have decreased sharply in late 2012 and may decrease feeder supplies in 2013 by 600 to 800 thousand head year over year compared to 2012. What is unclear is the drought question. Continued drought will moderate the short run effect by provoking more liquidation and postponing heifer retention. If drought conditions improve, herd inventories will stabilize
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and some heifer retention may begin in 2013. Feedlots have not only placed fewer cattle but recent placements have been heavier weight and will move through feedlots faster. It will be increasingly difficult to find placements to follow current feedlot inventories. A significant decrease in cattle slaughter and beef production is unavoidable in 2013 and 2014. Continued drought may continue to impact the timing somewhat, but any short run moderation of tighter supplies due to drought liquidation will be at the expense of more drastic impacts later; just as the situation now is more drastic than it was two years ago.
Cow herd reduction is geographically uneven: dramatic jump in demand for corn, which began in late 2006, has resulted in sharply higher prices for all crops in the U.S. A simple average across the eight major cultivated crops shows that 2012 crop year prices are expected to be 165 percent higher than in 2005. This has provoked intense
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competition among crops for land resources with crop market prices doing short-term battle each year for acreage to plant. The epicenter of this crop frenzy is naturally in the Midwest and is reflected in the phenomenal jump in land values and rental rates in the region. Longer-term impacts on land use are also expected as a result of this new agricultural environment. Though data is limited, there are strong indications that these long term changes have begun and they have significant implications for the beef cattle industry. The 2007 Natural Resources Inventory (NRI) showed that in addition to 305 million acres of cultivated cropland, an additional 119 million acres are used for pasture, along with 52 million acres of non-cultivated cropland (mostly permanent hay). These 171 million acres of pasture and “hay” land are arable, meaning they can be farmed. A majority of these acres occur in and around the major cropping areas and generally in the eastern half of the country. continued on page twelve
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These acres do not include another 400 million acres of rangeland (plus forest and federal lands) that are not arable. Rangeland is mostly located in the drier central and western regions of the U.S. Though converting perennial pasture and hay crops to cultivated crops is not an easy or quick process, high crop prices will logically attract some of these acres for cultivated crop production over time. At this point there is little data to confirm how much pasture and hay land is being converted to crop production. The 2012 NRI and Agricultural Census data (which will be available in several months) are expected to provide the first documentation of a process that is likely to continue for many more years. In the absence of land use data, changes in cattle inventories across states already indicate some of the anticipated regional impacts of high crop values.
From Jan. 1, 2007 to 2012, the U.S. beef cow herd decreased by 2.76 million head or 8.5 percent. The decrease is much more pronounced in the Midwest and surrounding regions, including the states of Illinois, Indiana, Iowa, Minnesota, Missouri, Kentucky and Tennessee. In these states, the five-year decrease in beef cow inventory ranged from 11.4 percent to over 22 percent with an average of a 14.2 percent decrease. By contrast 12 states in the Great Plains and Rocky Mountain regions experienced beef cow herd changes that ranged from an increase more than 5 percent to a 7.5 percent decrease with an average of 2.6 percent decrease across the region. Texas and Oklahoma experienced sharp decreases from 2011 to 2012 due to drought but had a similar 3.1 percent decrease in the 2007-2011 period. This indicates that the beef
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aged as efficiently as it can be. Increased forage value opens up a wide variety of possibilities, in many regions, to manage forage for greater productivity and to manage forage use more efficiently. The dramatic increase in use of corn crop residue the last two years is one example of the response to these incentives. Two other examples include reducing hay wastage from round bales and, in Oklahoma and similar areas, more Red Cedar control to increase forage production. In many regions of the country there is considerable potential for adoption of new forages and new forage systems to increase cattle production and/or extend grazing seasons. This continuing discussion of the challenges and opportunities for rebuilding the U.S. cattle herd will continue in Part 3 with a discussion of who will rebuild the cow herd.
Aging cattle rancher will impact cattle herd rebuild ■ Older producers: It is people . . . the cattle producers . . . who make it happen and are the key to rebuilding the beef cow herd and expanding cattle inven-
continued on page sixteen
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cow herd is decreasing more rapidly in regions where competition with crops is greater. As a result, an increasing share of the total beef cow herd will be located in drier regions of the country in the future. Interestingly, this same phenomenon is occurring in other major beef producing countries such as Brazil, Argentina, Uruguay and Paraguay and for the same reasons. Depending on their location, it is not surprising that some cattle producers see less potential for herd rebuilding than others. Beef cow herds are less likely to rebuild in major crop production regions while predominantly forage areas have considerable potential for herd expansion. There is little doubt that some of the most productive pasture and hay land is being converted for crop production which highlights the challenge of rebuilding the beef cow herd in more marginal areas. However, high crop prices increase forage value as well and that changes the incentives for how land is used and managed. Forage production, even on rangeland that does not compete directly with crop production, is worth more now. Many years of cheap grain kept forage values low and the result is that forage production and use has not been man-
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nformation leads to improvement. Take the Iowa Tri-County Steer Carcass Futurity (TCSCF) and its cooperators as a case in point. For 30 years the program has helped facilitate dataflow for producers of every size, and a recent analysis shows cattle are getting better. That’s because many of the 1,000 cowherd operators in 23 states and Canada who fed 230,000 calves with TCSCF over the years used the feedlot and carcass date in selection and management decisions. “With this information, they produce healthier, more docile cattle that gain better, grade better and are more profitable,” says futurity manager Darrell Busby. The share of Angus-sired cattle in the database was strong in 2002, at 84.4 percent, but that moved up to 89.1 percent last year. More recently, the black-hided cattle grading Choice increased from 70.8 percent in 2007 to 78.72 percent in 2011 as Prime grades moved up and Select grades dropped off considerably. Busby says management changes on the ranch and minor adjustments in futurity feeding strategies may have helped that along. However, the biggest impact comes from improved genetics, he says. “That shows up in our sire summary. Some of the top AI (artificial insemination) sires in the country are in the top of our sire summary. People are moving to better genetics,” Busby says. “And it doesn’t matter what zip code the calves come from. The genetics work anywhere from North Dakota to southern Georgia.” Gary Fike, beef cattle specialist with Certified Angus Beef LLC (CAB), and a member of the TCSCF board, notes feedyard delivery weights over the last 10 years increased from 629 pounds (lb.) to 655 lb. as final carcass weights moved up in step. “Emphasis on genetic selection for growth is part of that shift, and the Angus breed has definitely played a role there,” he says. “Also, with the cost of feed where it is, cattle are staying on grass, wheat pasture or some other lower-cost forage before they enter the feedlot. Heavier in, heavier out.” That could be giving cattle more chance to reach their quality grade potential. Looking at a sub-group in the study — cattle fed at CAB-licensed feedlots — marbling scores increased by almost 30 points in the last 10 years.
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“America’s Favorite Livestock Newspaper”
January 15, 2013
U.S. oil glut makes $50 oil a possibility GREG HENDERSON, Editor, Assoc. Publisher, Drovers CattleNetwork
merica’s booming oil industry could help push oil prices lower over the next few years, and some analysts claim $50 per barrel oil is a possibility. CNN Money reports that analysts at Bank of America
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Merrill Lynch expect U.S. oil prices to average about $90 per barrel over the next two years, but prices could sink to the $50 level at some point during that time frame. The Merrill analysts also said global oil prices, which more closely dictate the price of gasoline in the United States, are expected to remain high as growth in global oil supplies lags
population growth and economic output. The drop in U.S. oil prices would likely be temporary, CNN Money reports, caused by the difficulty in moving huge amounts of new oil from places like North Dakota’s Bakken shale or Texas’ Eagle Ford to market. New production from those areas has already led to a
2013 Friend of the National Western Honoree he Red Meat Club of Denver’s annual dinner, promoting the red meat and livestock industries, is set for Thursday, January 17, 2013 at the National Western Club. The coveted Friend of the National Western Stock Show and Red Meat Industry award will be presented this year to Dr. Robert Kelly Shideler of Manacos, Colo. Dr. Shideler’s contribution of time, talent, and leadership to the National Western Stock Show and to the Northwest Scholarship Trust, has set the standard for other volunteer leaders and will continue to positively impact the lives of young people for many years to come. Dr. Bob, as he is known by his many friends, has been around the National Western Stock Show since the day he was born in 1923. “I was raised on ranches in Western Colorado and have always been closely associated with the ranching world,” said Shideler. He went on to say his father, Marvin Shideler, was the ranch manager at Crystal River Ranch in Carbondale, Colorado.
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Dr. Bob Shideler will be honored by the Red Meat Club of Denver as the 2013 Friend of the National Western Stock Show beginning at 6:00 p.m. on January 17, 2013. The annual dinner will be at the National Western Club and the $30 per person tickets may be purchased by calling 303/299-5556.
Mr. Shideler attended Colorado A&M to study Animal Husbandry, he finished his degree in Veterinary Medicine. He practiced 25 years in private veterinary services, predominantly with horses and cattle. This included feed lot and cattle herd practice primarily in large registered Hereford and Angus farms, as well as, general equine, and reproductive technology. Mr. Shideler’s community services include organizations such as St. Luke’s Episcopal Church, CSU Alumni, Roundup Riders of the Rockies and the National Western Stock Show Association as a director and chairman of the Scholarship Trust. Dr. Schideler also served our country in the U.S. Navy for over two years in the South Pacific, including opera-
tions in Okinawa, Iwo Jima, and the Philippines. The featured speaker for the evening is Andrew Gottschalk owner of HedgersEdge.com LLC and Sr. Vice President, RJ O’Brien & Associates. Mr. Gottschalk attended Ft. Hays State University and majored in Economics. He has been a Livestock Market Analyst and broker for the past 40 years, providing both long-term and short-term fundamental, technical market analysis and risk management services to clientele ranging from individual producers to many of the nation’s leading agribusiness companies. His clientele comprise the full spectrum of the beef and food industry. He is a frequent speaker at various beef industry “Situation & Outlook” and “Risk Management” forums throughout the U.S. He is a frequent presenter at Federal Reserve Bank Agricultural Outlook Forums. He is also a direct participant in agriculture, being the second generation of his family involved in beef cattle and grain production.
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glut of oil in the region. “No one expected output to grow by a million barrels per day last year,” Francisco Blanche, Merrill’s head of commodity research, said in a press briefing in New York. “No one.” As a result, CNN Money reports, oil has been accumulating in Cushing, Okla. – home to the convergence of several pipelines and dozens of oil storage tankers that act as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate. Some independent oil price analysts expect U.S. crude oil prices to fall $10 per barrel during the first quarter of 2013, leaving prices in the mid-$70s. Crude oil traded recently at $86.80 per barrel in New York,
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oose any four 4-BOOK SPECIAL! Ch only $49.95. pay and ks bo ’s of Lee ty Postage! ori Pri es lud And that inc tential po a to It all ads up saving of over $20! PRICE
TOTAL
$49.95
BOOKS ORDERED SEPARATELY A Handmade Life
$14.95
These Things I Wish
$14.95
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$12.95
Essays from God’s Country
$12.95
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People Who Live at the End of Dirt Roads
$12.95
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$3.00
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x 8.25%
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up $.01 per barrel from the previous day. Brent crude traded in London at $109.67 per barrel, a gain of $1.66 per barrel. Gasoline and diesel prices continued moving lower, according to the Energy Information Administration. Recently, the average price for unleaded gasoline in the U.S. was reported at $3.45 per gallon, down 4.5 cents from the previous week. Average U.S. diesel prices were $3.99 per gallon, down 3.6 cents per gallon from the previous week. Given the relatively gloomy outlook for oil prices in the U.S., Blanche suggested the U.S. government may have to approve exports of West Texas Intermediate if it wants the oil boom to continue, as $50 a barrel is below the cost of production.
POWDER RIVER LIVESTOCK EQUIPMENT. Best prices with delivery available. CONLIN SUPPLY CO. INC., Oakdale, CA. 209/847-8977. NEW HOLLAND pull type bale wagons: 1033, 104 bales, $5,100; 1034, 104 bales, unloads both ways, $4,400; 1044, 120 bales, $3,700; 1063, 160 bales, $10,800; 1010, 56 bales, $1,200. Also have self propelled wagons. Delivery available. 785/ 336-6103, www.roederimp.com.
Equipment KADDATZ Auctioneering and Farm Equipment Sales
New and used tractors, equipment, and parts. Salvage yard, combines, tractors, hay equipment and all types of equipment parts. ORDER PARTS ONLINE.
www.kaddatzequipment.com • 254/582-3000
For Rent Want to winter near sunny Tombstone, Arizona? Available for rent: comfortable 2-bedroom, 2-bath mobile home with scenic views of the mountains, sheep’s head and the desert. On a privately owned water system so there is no risk of the U.S. Forest Service cutting off the water! Check it out today! CONTACT: ESTHER DOLLARHIDE Esther@tombstonerealestate.com Tombstone Real Estate
Take your marketing program to the top! Advertise in the
Contact MAKE CHECKS PAYABLE TO: LEE PITTS, AND MAIL TO: P.O. BOX 616, MORRO BAY, CALIFORNIA 93443
Randy Summers ADVERTISING REPRESENTATIVE
Office: 505/243-9515 Cell: 505/850-8544 randy@aaalivestock.com
Livestock Market Digest
Page 14
THE LIVESTOCK MARKET DIGEST
Real Estate GUIDE To place your Real Estate Guide listings, contact RANDY SUMMERS at 505/243-9515 or at randy@aaalivestock.com
New Mexico/ West Texas Ranches Campo Bonito, LLC RANCH SALES P.O. Box 1077 • Ft. Davis, Texas 79734
NEED RANCH LEASES and PASTURE FOR 2013! DAVID P. DEAN Ranch: 432/426-3779 • Mob.: 432/634-0441 www.availableranches.com
INTEREST RATES AS LOW AS 3%. PAYMENTS SCHEDULED ON 25 YEARS
Missouri Land Sales ■ 675 Ac. Excellent Cattle Ranch, Grass Runway, Land Your Own Plane: Major Price Reduction. 3-br, 2ba home down 1 mile private land. New 40x42 shop, 40x60 livestock barn, over 450 ac. in grass. (Owner runs over 150 cow/calves, 2 springs, 20 ponds, 2 lakes, consisting of 3.5 and 2 ac. Both stocked with fish. Excellent fencing. A must farm to see. MSL #1112191
MR.COWMAN! Come to Our Country!
PAUL McGILLIARD Cell: 417/839-5096 1-800/743-0336 MURNEY ASSOC., REALTORS SPRINGFIELD, MO 65804
■ NEW LISTING, 327 ACRES: Cattle/horse ranch. Over 225 acres in grass. 3/4 mile State Hwy. frontage. Live water, 60x80 multi-function barn. 2-bedroom, 1-bath rock home. Priced to sell at $1,620 per acre. MLS #1204641 ■ 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 National Forest. MLS#1108090
Selling New Mexico
LLC
REAL ESTATE COMPANY
RICHARD RANDALS Qualifying Broker
6221 QR AL Tucumcari, NM. 3 bedroom brick home with 80± acres is located 5-1/2 miles East of Tucumcari. Of the 80± acres, 50± acres has Arch Hurley Conservancy District surface water rights. Barn and guest house. Price $275,000.
TOM SIDWELL Associate Broker JOE STUBBLEFIELD & ASSOCIATES 13830 Western St., Amarillo, TX • 806/622-3482 Cell 806/674-2062 • joe3@suddenlink.net Michael Perez Assocs Nara Visa, NM • 575/403-7970
See all my listings at: paulmcgilliard.murney.com
We may not be the biggest, the fanciest or the oldest but we are reliable and have the tools.
Pajarito Farm. There is a total of 73.90± acres. Of the 73.90± acres, there is 40.45± of Arch Hurley surface water rights. Live water on this property, the Pajarito creek. Wildlife, whitetail and mule deer, wild turkey. Tucumcari, NM. Price $120,000.
O: 575/461-4426 C: 575/403-7138 F: 575/461-8422 E: nmpg@plateautel.net
Western Drive Stables. 24 years established Horse Motel, very nice and well maintained property. There is a home, 3,000 square foot barn with stalls and 4.20± acres. The stalls are very nice. There are stalls with run/semi-covered and boxed stalls and turnouts. Tucumcari, NM. Price $350,000.
www.newmexicopg.com 615 West Rt. 66 Tucumcari, NM 88401
WORKING COW and HORSE RANCHES CUT OVER TIMBER LAND, LAKES and STREAMS Write or call for free publication:
CASCADE REAL ESTATE 10886 Hwy. 62 • Eagle Point, OR 97524
1-800/343-4165 E-mail: deuprees@yahoo.com
TEXAS & OKLA. FARMS & RANCHES
Place your Real Estate ad in the 2013 FME (Including the DIGEST 25)
• 735 acres Paris, Texas, excellent pasture, paved road frontage, huge lake, mansion home. $2,750,000. • 274 acres in the shadow of Dallas. Secluded lakes, trees, excellent grass. Hunting & fishing, dream home sites. $3,550/ac. Can add 300 more acres, only 30 miles out of Dallas. • 98.2 acres Dallas Co., $375,000. SOLD • 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 $185,000, owner financed with 10% cash down. • 134 acres Wortham, Texas, $1,750/ac. Hunting and cattle. Fronts FM Hwy.
SO LD
Joe Priest Real Estate 1205 N. Hwy 175, Seagoville, TX 75159
972/287-4548 • 214/676-6973 1-800/671-4548 • Fax 972/287-4553 joepriestre.net • joepriestre@earthlink.com
5 0 5 / 2 4 3 - 9 5 1 5
•
✴ Special Real Estate section ✴ Full-color, high-gloss magazine with internet visibility ✴ Appears on the internet for 12 full months after publication ✴ www.aaalivestock is the top-ranking website in the Yahoo and MSN search engines
w w w . a a a l i v e s t o c k . c o m
January 15, 2013
The Dunes Sagebrush Lizard by CHARLIE PAINTER, New Mexico Department of Game and Fish
ow can society balance its needs for non-renewable natural resources, biodiversity, and ecosystem services? The global demand for energy has increased by more than 50 percent in the last half-century, and a similar increase is projected between 2007 and 2030. Energy production to meet this demand has resulted in increased land fragmentation, with predictable consequences for species whose habitats are degraded. Although how we attempt to strike a balance is controversial, almost everyone agrees that without thoughtful management that takes into account needs of energy producers, ranchers, and biodiversity, unplanned land fragmentation will continue to erode our
H
Farms & Ranches
Agrilands REAL ESTATE
541/473-3100 JACK HORTON www.agrilandsrealestate.com
SOCORRO PLAZA
113 RANCH NEAR PANACE, NEV.: Approximately 632 deeded acres of which approximately 500 acres are irrigated with center pivots and 4 shallow irrigation wells. This area of Nevada typically gets around 7 tons per acre per season. The property has exceptional improvements including a 4,000-ton hay barn; a 3,000+ sq. ft. home on one level with covered porch full-around. Other improvements include a concrete horse barn with stalls inside and out; a large shop/storage building; a large garage near home—large enough to house a motor home and approximately 8 cars; a 400-head feedlot with concrete bunks, scales and chutes and alleys. Price: $2,800,000
PAUL D. BOTTARI, BROKER www.bottarirealty.com • paul@bottarirealty.com 775/752-3040 • Cell: 775/752-0952 • Fax: 775/752-3021 Bottari Realty & Associates • 1222 6th St., Wells, NV 89835
Check our websites for info. on this property and many others.
LOW ROLLING PLAINS OF TEXAS: 10,500± ac., large lake w/permits for dam and right-to-impound in place to add tremendous esthetic quality to the ranch together w/hunting, boating, fishing and commercial and residential development potential. Please call for details!
CAPITAN FOOTHILLS RANCH: A 600+ cow ranch on 40 sections of choice ranch land w/excellent homes, barns, pens, livestock water and fences. A working ranch with improvements in top-notch condition on an all-weather road nestled in the foothills of the Capitan Mountains w/rolling hills, canyons and large valleys.
PRICE REDUCED!
UNION CO., N.M.: Amistad area, 960 ac. w/612 ac. formerly under pivot irr., currently in CRP for 10 yrs. @ $45.60/acre, approx. 130 ft. of water in the hole, 6 irr. wells, pivot pads & underground pipe, all-weather road. Ben G. Scott – Broker Krystal M. Nelson – N.M. Qualifying Broker 800-933-9698 day/eve www.scottlandcompany.com • www.texascrp.com 1301 Front Street, Dimmitt, TX 79027
116 Plaza
In the Rio Grande Valley. Custom-built home with 100 acres of irrigated land. House has approximately 3,700 sq. ft., 4 bedrooms, and 2 baths. One hour from Albuquerque Int’l Airport. Close to 5 racetracks: Sunland, Ruidoso, Albuquerque, Santa Fe and Farmington.
Bottari Realty
Scott Land co.
REALTY
BOTTARI REALTY • WELLS, NEVADA
OUT WEST REALTY NETWORK AFFILIATE
continued on page fifteen
Ranch and Farm Real Estate
SOCORRO COUNTY HORSE FARM
For more information and other properties, check out our website at www.bottarirealty.com
natural landscapes. What lessons have we learned from the recent two-year case that ended with a decision not to list the Dunes Sagebrush Lizard as endangered? The Dunes Sagebrush Lizard has a limited range in the American Southwest, among the smallest of any North American lizard. It occurs only in Shinnery Oak sand dunes in the Mescalero Sands of southeastern New Mexico and the Monahans Sandhills in adjacent Texas at elevations from 2,540 – 4,600 feet. In New Mexico, populations of the species are found in small parts of Chaves, Eddy, Lea, and Roosevelt counties that contain shinnery oak sand dunes. In Texas, populations occur in parts of Andrews, Crane, Gaines, Ward, and Win-
For more information, visit us on Facebook, or visit our website at: sites.google.com/site/ corralescottonwoodrealty/ CORRALES COTTONWOOD REALTY Cell: 505/507-2915 Fax: 575/838-0095 P.O. Box 1903, Socorro, NM 87801 DON BROWN, Qualifying Broker Email: dbrown@socorroplazarealty.com
W-R RANCH
18,560 ACRES 20 MILES NORTHEAST OF ROSWELL, N.M. ❙
680 Deeded Acres
❙
17,900 State Lease Acres
❙
927 BLM Acres
❙
300 Animal Units Year Long
❙
Good fences; 4-strand barbwire
❙
Newly remodeled Southwestern Home
❙
Good water; windmill and submergible tanks
❙
$1,800,000
CHARLES BENNETT United Country / Vista Nueva, Inc. 575/356-5616 www.vista-nueva.com
“America’s Favorite Livestock Newspaper”
January 15, 2013
Lizard
continued from page fourteen
kler counties. The shinnery oak sand dune habitat occurs over approximately 308 sq mi; however, the species has a high likelihood of occurring in only about half of this area. Dunes Sagebrush Lizards are most active from mid-April through October, and usually live 3-4 years. Activity peaks during May and June when the lizards are courting and defending territories, then declines as summer temperatures rise. Adults average about 2.2 inches body length, with females smaller than males. Mating occurs from May to early July and females produce one or two clutches of 3-6 eggs each year in June and late July. Nests and nesting sites have been found by tracking females outfitted with tiny radio transmitters. Females move out of their immediate home range to nest, and construct nests about 7 inches deep in the loose sand at the interface between moist and dry sand. Hatchlings first emerge in mid July. Dunes Sagebrush Lizards feed on a variety of ground dwelling invertebrates, including spiders, ants, beetles, grasshoppers, and crickets. Dunes Sagebrush-lizards are extreme habitat specialists. They only live in sand dune complexes dominated by Shinnery Oak and Sand Sage with numerous sand dune blowouts. They have a strong affinity for the open blowouts and do not occur in Shinnery Oak flats or other habitat types. Dunes
Sagebrush lizards are well adapted to living in loose sand. They readily dive into the sand as an escape behavior, and often sleep buried under sand. Radio-tagged individuals have been observed to move several feet underneath the sand. In June 2012, the federal listing proposal was withdrawn, based on the optimism of some that threats to the species would be alleviated by the New Mexico Candidate Conservation Agreement and Candidate Conservation Agreement with Assurances, the Texas Conservation Plan, and the Bureau of Land Management’s Resource Management Plan Amendment. A common goal of these agreements is to ensure the conservation of the unique ecosystem found in the Mescalero-Monahans sandhills while reducing economic impacts of the conservation measures. However, these agreements are not legally binding and their success depends on cooperation of ranchers, oil and gas companies, government agencies, and others. Perhaps the biggest incentive for the plans to work is that if they don’t, the species could be considered for Emergency Listing under the Federal Endangered Species Act. Meanwhile, adoption of the plans is fostering habitat avoidance, land management practices, and important research and monitoring. Regardless of the path taken to conserve the Dunes Sagebrush Lizard and the MescaleroMonahans Sandhills, continued and lasting cooperation will be necessary to achieve conservation of the species throughout its range.
Page 15
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• 5,000-Head Capacity • Backgrounding and Finishing • Feeding silage, alfalfa hay, corn and barley • Hedging on Request Three generations serving you
To place your ad here, contact RANDY SUMMERS at 505/243-9515, or at randy@aaalivestock.com
IVAN, BRAD & JEREMY COWLEY 546 N. Venice Main St., Venice, Utah 84701 435/896-5260 cowleyfarm@hotmail.com
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First ever statistically valid range-wide population estimate for Lesser Prairie Chicken he lesser prairie chicken is an iconic grassland grouse species native to parts of Colorado, New Mexico, Texas, Kansas and Oklahoma. However, long-term population declines have brought state and federal agencies together in an attempt to better manage lesser prairie chickens and their habitats. Through a multi-state collaborative effort, the first statistically-valid, range-wide population estimate for the lesser prairie chicken has been produced, according to the Western Association of Fish and Wildlife Agencies’ (WAFWA) Grassland Initiative. The rangewide lesser prairie chicken population is estimated at 37,170 individuals. The WAFWA Grassland Initiative collaborated with the Lesser Prairie Chicken Interstate Working Group, which is composed of biologists from state fish and wildlife departments within the range of the species, the Bureau of Land Management, and West Ecosystems, Inc. of Laramie, Wyoming, to conduct a large-scale, helicopter-based survey of lesser prairie chicken leks across all five states. Leks are sites that the birds come to every spring for breeding. These surveys occurred from March-May and encompassed more than 300,000 square miles. Survey results will be the baseline for a range-wide lesser prairie chicken management plan currently being developed by the five
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state wildlife agencies in collaboration with the WAFWA Grassland Initiative. This plan is expected to be completed by March 2013, and could influence the U.S. Fish and Wildlife Service’s (Service) decision on whether or not to designate the lesser prairie chicken as a federally threatened or endangered species. The lesser prairie chicken has been considered a candidate under the Endangered Species Act (ESA) since 1998, and the Service expects to release a proposed rule on the status of the bird under the ESA in November 2012. While the lesser prairie chicken population estimate may appear low, biologists are encouraged by what they found. The surveys this spring detected several previously unknown leks, despite severe drought conditions across the region last year. They also discovered leks in Kansas beyond what was thought to be the northern limit of the historic range of the species. Lesser prairie chicken numbers have been largely increasing in Kansas for the last 15 years, while populations have declined in parts of the southern portion of the range. Biologists believe this expansion may represent a northward shift in the population of the species caused by climatic conditions associated with changing precipitation patterns. “Historically, we saw habitat conditions like we are observing now in the 1930s, and we
MARKET If you’re moving or changing your mailing address, please send your name, old address, AND new address to: LIVESTOCK MARKET DIGEST, P.O. Box 7458, Albuquerque, NM 87194, or fax to: 505/998-6236
thought the species went extinct”, said Bill Van Pelt, WAFWA Grassland Coordinator. “However, with habitat conservation programs being implemented through various Farm Bill programs and Candidate Conservation Agreements under the Endangered Species Act, we are seeing lesser prairie chickens maintaining themselves and even expanding into new areas in some parts of their range. This definitely boosts our confidence in coming up with a plan to maintain this species”, concludes Van Pelt. Source: Western Association of Fish & Wildlife Agencies.The final survey report is available at http://www.wafwa.org/html/aerial_surveys.sh tml.
“American Made Since 1987” Hillsboro, KS 67063
www.circle-dtrailers.com 800-526-0939 • www .circle-dtrailers.com
Working to Protect the Rich Tapestry of the West What They are Saying About Us… • The $206,098,920 Endangered Species Act Settlement Agreements — Is all that paperwork worth it? • Leveling the Playing Field: Support for the Grazing Improvement Act of 2011 • Support for the Governmental Litigation Savings Act of 2011 — Reform of Excessive Litigation Pay-outs • Foreign & Domestic Train Wreck in the Making — More of the ESA • The Secret World of the Animal Rights Agenda TO SUPPORT THESE CAUSES AND MORE, JOIN US!
I am/our organization is committed to protecting the open spaces, private property, private businesses & ensuring the responsible use of public lands. Please list me/my organization as a member of the Western Legacy Alliance. I have included my membership dues and my $____________ additional contribution. Name: _____________________________________________________________________________________ Organization: _______________________________________________________________________________ Address: ________________________________________ City: __________________________ State: _____ Zip: __________ Phone: __________________ Fax: __________________ Email: ______________________
Individual Membership: $25 Association Membership: $500 Corporate Membership: $1,000 Help You Can
936 West 350 North • Blackfoot, ID 83221 westernlegacyalliance@gmail.com • 208-681-6004 www.westernlegacyalliance.org
JOIN TODAY!
Livestock Market Digest
Page 16
Cowherd
continued from page twelve
tories. As with the land use and regional components, there are both challenges and opportunities with regards to the producer issues in the beef industry. Like farmers of all types, cattle producers have been aging as a group for many years. USDA data from 2011 indicates that among the 654,000 cattle farms in the country, 37 percent are operated by producers 65 years of age or older and another 29 percent are operated by producers aged 55-64. Together these two age groups operate 64 percent of land used for cattle production. This includes 118.4 million acres by the 65+ producers, 66 percent of which are the full
owners of their farms. In many cases there are no family heirs interested or able to take over the operation. These demographics suggest that a significant amount of asset turnover is inevitable in the next decade. In the meantime, older cattle producers, like many farmers, often don’t really retire and exit the industry but rather tend to “retire in place” by remaining on the farm and gradually scaling back their operations. Older producers, on average more financially secure, can afford to cut back by reducing cattle numbers or switching to less labor intensive enterprises according to their health situa-
tion and labor ability. The latest USDA data confirms that cattle producers over 65 years of age have a per farm value of production that is 43 percent less (25 percent less on a per acre equivalent basis) compared to the average value of production of all cattle farms. In the most recent data, average farm size for these older producers has dropped to roughly 75 percent of the average of all cattle farms. Previous data had indicated that farm size for the older producers was only 8-10 percent less than average. It is possible that asset turnover in the cattle industry has accelerated recently. The combination of these producer demographics and the drought creates a unique situa-
January 15, 2013 tion in the cattle industry. The drought has forced many of these older producers to partially or totally liquidate their herds. Some of these older producers are not inclined to or will not be able to rebuild their cattle operations. The drought is forcing some producers to face the inevitable decisions about exiting the industry sooner rather than later. ■ Young producers: At the other end of the producer spectrum are young producers trying to get started. The challenges for beginning producers have existed for many years but have arguably never been greater than now. Asset values are record high and the capital requirements greater than ever. The oversight of agricultural
l a u n n A l l u 2 2 B s u g n a r B ll nndd
e w s Ro emale Sale .m. a 0 1 &F t a , 2013
3 2 y r a u r b e F , y a d r Satu Brangus and Angus Plus Bulls • Most with EPDs • Registered and Commercial • Fertility- , TB-, and Brucellosis-tested • These bulls have been bred and raised under Southwest range conditions. • Most bulls rock-footed • Trich-tested to go anywhere
Females . . .
AT ROSWELL LIVESTOCK AUCTION ROSWELL, N.M. • 575/622-5580 Cattle may be viewed Friday, Feb. 22, 2013 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!
• Registered Open Heifers • Registered Bred Heifers and Bred Cows • Bred Cows and Pairs – 3- to 7-yrs.-old • Bred Heifers – Coming 2-yr.-olds • Open Yearling Heifers
FOR INFORMATION CONTACT: Gayland Townsend . . . 580/443-5777, MOB. 580/380-1606 Troy Floyd . . . . . . . . . . . . 575/734-7005, MOB. 575/626-2896 Bill Morrison . . . . . . . . . . 575/482-3254, MOB. 575/760-7263 Joe Lack . . . . . . . . . . . . . . . 575/267-1016 Larry Parker . . . . . . . . . . . 520/845-2315, MOB. 520/845-2411 TO RECEIVE A CATALOG CONTACT: Bill Morrison: 575/482-3254 • C: 575/760-7263 To Consign Top Females Contact: Gayland Townsend: 580/443-5777 • C: 580/380-1606
lenders under new regulations is considerably more stringent than in years past and adds to the difficulty of qualifying young producers for loans, even in cases where the lender is willing. Cattle producers, perhaps to an even greater extent than farmers in general, view asset ownership as preferred and one of the marks of success in the cattle business. And yet, for young producers, asset control is what is important even if asset ownership is not possible. Leasing and other business arrangements may be more feasible and necessary for a new generation of cattle producers than asset purchase. One of the impacts of the drought is that older producers who have been forced to liquidate herds may be more interested in leasing land to younger producers and that may be a key to herd rebuilding and revitalizing productivity in the cattle industry. ■ In the middle: In between the older and beginning producers are many producers who are simply trying to survive the drought and continue with their business operations. The majority of producers who have been forced to liquidate cattle have received good prices and did not lose a great deal of value on the sales. However, high feed and other input costs in 2011 and 2012 mean that producers have, in many cases, used the proceeds of drought sales to cash flow continued operations. These producers will likely face difficulties financing herd rebuilding when the opportunity arises. Replacement cow and heifer values will be record high. Producers must be careful during the drought to preserve enough equity with which to rebuild herds. Producers who haven’t yet done so should develop a drought management plan and a drought recovery plan, which incorporates the business and resource requirements to survive the drought and be able to rebuild later. The cattle industry today is smaller than it needs to be. The last two years of drought have preempted the beginning of herd rebuilding and pushed the industry to extremely limited cattle inventories. The drought holds the key to when, and to some extent how and where, herd rebuilding will take place. At the same time, the economic environment of the cattle industry has changed dramatically in recent years. New demands on agriculture and rising crop values puts a stronger forage focus on the beef industry and has significant regional implications on where cattle production will be located. The how, where and who of the cattle industry is changing in many respects but unprecedented cattle and beef prices confirm that market demand, both domestically and internationally, offers opportunities and will support rebuilding the beef cow herd, although to what level is as yet uncertain.