LMD January 2011

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

– JAMES RUSSELL LOWELL JANUARY 15, 2011 •

MARKET

Digest T Volume 53 • No. 1

Sold Down The River “You cannot W

by Lee Pitts

NEWSPAPER PRIORITY HANDLING

unsay a cruel word.”

lated Justice Department looked the other way, and by convincing some big ranchers that they should become contract producers for them. In the process they have devoured smaller companies, made our food less safe and have reduced the numbers of swine and poultry producers by 90 percent and the ranks of cattlemen by half. But what really galls this reporter is we are letting foreigners grab up good American companies at fire sale prices. We are making it way too easy for our foreign competitors.

Especially for one in particular.

Brazilian Ball Park Franks JBS began in 1953 when the company’s founder, Jose Batista, opened a butcher shop in rural Brazil and slaughtered five head of cattle per day. Fast forward to today when the Batista family has controlling interest in the world’s largest beef processor, with meat packing plants in the world’s four leading beef producing nations, Brazil, Argentina, USA and Australia. Headquartered in São Paulo, Brazil, it had revenues of $28.7 billion and net income of $3.5 billion in 2009.

The company employs 125,000

people around the world. Taking advantage of the low value of the American dollar, in just the last three years it has picked up U.S. beef, pork and poultry processors by spending $2.7 billion.

And it’s not even close to being done.

Recently the Wall Street Journal reported that Sara Lee Corporation, another American corporation with a long history in this country, is weighing a sale to JBS. By my count, Sara Lee owns 67 brands of food and beverage products and its meat line includes such well known names as Ball Park Franks, Gallo Salame, Hillshire Farms, Jimmy Dean, Sara Lee and a host of others. It’s hard to get more American than Ball Park Franks, Jimmy Dean or Sara Lee yet they all could become Brazilian owned.

At the time the Wall Street Journal broke the news Sara Lee’s stock price was $17.26 which would give the company a market capitalization of $11 billion. According to the Journal, “Private equity firm Apollo continued on page two

Labeling law may carry a $10 million-a-year price tag

by LISA M. KEEFE, meatingplace.com

he USDA’s Food Service and Inspection Service (FSIS) estimates that the average annual cost of complying with its new final rule on including nutritional labels on meat and poultry products would be between $10.5 million and $10.9 million a year for the next 20 years, according to a notice in the Federal Register explaining the rule.

So the total average present value of the total cost over 20 years would be between $156.7 million and $115.4 million, depending on the economic assumptions that are underlying the projections, according to the agency.

There are avenues to complying with the rule that would be less costly: For point-ofpurchase nutrition information for major cuts of single-ingredient raw products, the annual average costs are estimated to be between $1.3 million and $1.32 million.

The costs compare favorably with the estimated benefits, however. The agency estimates that the average value of the benefits of the

T

by LEE PITTS

Leftover Love

www. aaalivestock . com

hen it comes to the global beef business the United States is Mr. Nice Guy. We have opened the world’s most lucrative beef trade to over 30 countries and our government puts onerous restrictions on American producers but doesn’t make foreign importers meet the same requirements. Environmentalists try to put ranchers out of business in this country for taking care of the land while buying meat from foreign competitors who destroy rain forests and commit human rights violations. We tax ourselves to death while giving tax breaks and loans to our foreign competition. Our USDA oversees a checkoff program that won’t let the money be used to differentiate between foreign and U.S. beef and allows the checkoff dollars to be siphoned off to the NCBA, who has become a cheerleader for meat packer interests. (NCBA’s former lobbyist now does the same thing for JBS).

Not that the packers need much more help. Cargill, Tyson and JBS now control well over 80 percent of the beef, pork and poultry business in this country.

They’ve done it by being opportunistic, taking advantage of deregulation, using illegal immigrants as workers, breaking antitrust laws while an emascu-

Riding Herd

new law is between about $800 million and $1.4 billion. Annually, FSIS estimates that the rule would produce average benefits of between $75.5 million and $91.3 million. The monetized value of the benefits includes the value of lives saved by the new nutritional labeling laws.

FSIS concludes, in its Federal Register notice, “The projected annualized average net present values of costs of the rule's nutrition labeling requirements appear to be justified by the larger projected annualized average net present values of benefits.”

Reaction to the rule Various industry organizations and legislators released their reactions to the rule after its publication in the Federal Register.

“NCBA supports nutrition labeling on beef products and is pleased to see USDA moving forward with this effort,” said National Cattlement’s Beef Association Executive Director of continued on page six

o paraphrase an old ballad from my youth . . . “Where have all the hippies gone?”

It took me awhile to find them but I finally figured out where they’re hiding. you ever Have answered the phone and immediately knew you shouldn’t have? Recently an old hippie from my past called, said he’d heard something on the radio that a Lee Pitts had written, and he wondered if it was his old classmate.

Sadly it was.

We called him Stoner because he took more trips than a truck driver.

Only Stoner’s were on LSD, marijuana and any other drug he could get his hands on. Stoner went to Woodstock, slept in the mud, rocked back and forth to Country Joe and the Fish and lived on free love. Needless to say, we never traveled in the same circles as he took an entirely different orbit around the sun than I did.

Stoner was in my area on vacation, looked me up in the phonebook and now wanted to go out to dinner to talk about old times together, despite the fact that we never had any. I couldn’t think of a good excuse fast enough and was trapped.

I was shocked by Stoner’s appearance. The guy who used to have long, dirty hair now had less hair than a cue ball and instead of wearing a tie dyed t-shirt with happy faces sewn on to ragged bell bottom jeans, he was wearing a suit and tie.

Instead of being barefoot he was wearing an expensive pair of Italian loafers.

Stoner had been divorced three times but introduced me to his “life partner” Amber, who was easily 20 years younger than he was. First thing, I looked to see if she was bra-less or wearing sandals. The guy who always said he could live without material things had rings on three fingers, a Rolex watch, expensive sunglasscontinued on page twelve

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Livestock Market Digest

Page 2

January 15, 2011

Sold Down the River Global Management approached Sara Lee during the summer about a deal after a report that Sara Lee had rebuffed an unsolicited offer that could have been worth $12 billion from KKR.” That’s the firm that led the leveraged buyout of Nabisco and led to the book and the movie called “Barbarians At The Gate.”

That could also describe a host of foreign companies chomping at the bit to buy good old American businesses at fire sale prices.

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Sara Lee is no small potatoes and yet it would be just one of dozens of companies that JBS has gobbled up in its three-year long buying spree around the globe in its quest to become butcher to the world. Rather than taking the time to build its own global brands the company has purchased reputation companies like these: ■ In 2007 JBS paid $1.4 billion for beef and pork processor Swift & Co. thereby increasing its slaughtering capacity by 7,600 head per day.

■ In 2008 JBS purchased Smithfield’s Five Rivers feedlots for $565 million. Five Rivers has a one-time capacity of 820,000 cattle and fed two million cattle last year. With its purchase JBS instantly became one of America’s biggest cattle feeders.

■ In May of 2008 JBS made its first foray into Australia with the acquisition of the Tasman Group which slaughters 3,000 head of cattle and 16,000 sheep per day.

■ Next JBS made Swift-Australia a subsidiary when it bought Swift’s slaughterhouses and feedlots in Australia that produce beef, veal, lamb and mutton.

■ Then JBS announced they were taking over one of Australia’s biggest feedlots and associated packing facilities, Rockdale Beef, despite increasing unease about overseas domination of the industry in the land down under. JBS purchased Rockdale Beef from Japanese partners, Itoham Foods and Mitsubishi Corporation, and this acquisition gave JBS 30 percent of the feedlot capacity in New South Wales and 14 percent of cattle on feed in Queensland and NSW. Swift also has 26 percent of the beef processing capacity in Australia with 10 meat plants.

■ The Justice Department next allowed JBS to acquire Pilgrim’s Pride, a chicken processor with operations in the US, Puerto Rico, and Mexico. JBS purchased 64 percent of Pilgrim’s Pride out of bankruptcy for $800 million plus two billion in debt.

The deal instantly made JBS the second-largest chicken processor in the U.S. ■ In 2009 JBS diversified further into dairy, leather and pet products by merging with Bertin Group in Brazil.

■ After purchasing Gent, the largest cooked beef processor in Europe, JBS President Joesley Mendonca Batista said that his

continued from page one

company is exploring more acquisition opportunities in Europe. The Brazilian publication Valor Economico reported that the company was looking for acquisitions to stay ahead of rival Marfrig.

■ Hard as it is to believe, JBS also tried to become America’s largest pork processor by purchasing Smithfield in June of 2010. Smithfield has about 36 percent of the US nationwide pork slaughtering capacity.

Smithfield was a typical target for JBS as it had been weakened by soaring feed costs, the recession and the H1N1 virus outbreak, which curbed pork demand for awhile. In just two years Smithfield posted a combined net loss of almost US$ 300 million. In other words, they were ripe for the picking. Only falling grain prices and better packer margins kept Smithfield from selling out.

But JBS would still very much like to own Smithfield.

As a result of all this buying JBS now processes beef, pork, lamb, poultry, leather, milk and other dairy products with a presence in the U.S., Brazil, Argentina, Paraguay, Uruguay, Australia, Italy and Russia. The company slaughters 90,290 head of cattle per day easily making it the world’s largest beef company. It is also the pride of Brazil, the largest Brazilian multinational in the food industry. In the third quarter of 2010 their American beef operations alone generated revenue of $3.36 billion, up 18 percent from the same period in 2009. In U.S. pork, revenue rose $38 to $772 million, and chicken revenue totaled $1.72 billion. JBS now earns more than twice as much through its American operations as its South American ones and almost one-third of their revenues now comes from exports.

Too Big To Fail?

JBS is on a roll with the wind at its back. The low value of the dollar and the strength of the Brazilian currency has made American companies cheap to buy. Alan Greenspan the former Federal Reserve chairman, has accused the present U.S. government of “pursuing a policy of currency weakness,” and certainly this Administration seems willing to do anything to pull us out of our economic malaise. But helping foreigners buy good American companies with cheap dollars seems a tad bit shortsighted and misguided to us.

Then there is the increasing concentration and subsequent profitability of the meat packing sector, which has been incrementally advanced by JBS. This concentration of purchasing and pricing power has allowed them to increase their revenue to finance their buying spree. The average return on equity before taxes for the meat packing industry for the past six years has been 17 percent. That’s a very good continued on page three

“America’s Favorite Livestock Newspaper”

January 15, 2011 payoff, especially when compared with an average return on equity for farming and ranching the past 13 years which has been a negative one half of one percent!

Then there is this little tidbit.

Besides the big American banks and the JP Morgan Chase’s of this world, JBS is also being financed by the Brazilian government. Mexican beef producers are currently calling for meat and livestock products to be excluded from a planned free trade agreement with Brazil because they cannot compete with their Brazilian counterparts due to shortages of commercial credit in Mexico. JBS has no such problem in Brazil. When JBS issued $2 billion worth of convertible bonds to finance their purchases in the United States the buyer of the bonds was BNDES, Brazil’s development bank. That means that if JBS USA were to fall behind on their interest payments the Brazilian government could end up owning 20 to 25 percent of JBS USA. And that’s not an impossible scenario to conceive. As this story was being written, bonds sold by JBS SA were posting the worst week since they were sold.

As a result, Brazil’s national development bank penalized the company $300 million for delaying a U.S. share offering of stock. The stock offering was supposed to be the way that JBS was going to pay off the Brazilian development bank.

JBS agreed to pay the penalty in order to have more time to take its U.S. unit public without triggering a clause that allows the state bank to convert $2 billion of bonds into stock. When JBS debt is compared to the

quality of the debt for emergingmarket corporate bonds analysts say it is “underperforming.”

While our government is doing its darndest to put American farmers and ranchers out of business the Brazilian government is doing everything it can to help its ag producers. And little wonder, agriculture accounts for 26 percent of the country’s gross domestic product, 42 percent of exports and is responsible for generating 37 percent of the jobs in the country. 2010 Brazilian exports of agri-livestock products were expected to reach a new record and the government plans to improve that trend by opening up new markets in places like China, Japan and South Korea. The same places where Americans would like to sell more meat. A recent government report said that Brazil can double grain production and triple beef production in the foreseeable future.

Mr. Nice Guy It’s as if the United States is having a garage or farm sale with cheap prices and many other enticements. The latest is the food safety bill recently passed by the Senate and the House.

S.510/HR 2751 as it’s known, places an enormous new burden on U.S. farmers while it does nothing to address the food safety of food imports. Food coming into the USA from Mexico, Chile, Peru or anywhere else does not have to meet S.510 food safety regulations at all, and many dangerous chemical pesticides that have been banned in the USA are legal to use elsewhere. Some critics argue that the food safety bill will not make

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our food any safer but will drive many American farmers and ranchers out of business. It will erect new barriers to ranchers entering the business, and place a host of regulatory burdens on U.S. farmers and ranchers at the same time are no new regulations required for food grown outside the U.S. It will hinder the competitiveness of U.S. farms, add to the worsening agricultural trade imbalance and centralize food production power in the hands of a few wealthy corporations like JBS. But it will create new jobs . . . in South America and elsewhere. It is policies like these that made the Economic Policy Institute conclude that American companies have created 1.4 million jobs overseas this year, compared with less than 1 million in the U.S. The additional 1.4 million jobs would have lowered the U.S. unemployment rate to 8.9 percent, says the Institute’s Robert Scott.

It’s not just the federal government who is making life easy for JBS and other international business predators. In Cactus, Texas, where JBS is improving a plant, the company was able to negotiate a tax abatement deal for seven or eight years. In Plainwell, Michigan, JBS USA will receive a tax break to aid in the expansion of its beef processing plant there. Township officials voted to give JBS a 12-year, 50 percent abatement for construction and upgrades.

If all this isn’t enough to make you mad consider that our government recently allowed fresh meat imports from a state in Brazil that’s been recognized by the World Trade Organization

Page 3

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ational industry groups participated in a conference call in mid December with Agriculture Secretary Tom Vilsack regarding the procedure the U.S. Department of Agriculture (USDA) will follow as it moves forward with the proposed competition rule issued by the USDA Grain Inspection, Packers & Stockyards Administration (GIPSA) in June. The comment deadline for the GIPSA rule ended on November 22.

Secretary Vilsack said the GIPSA rule was intended to carry out the requirements of the 2008 Farm Bill and provide needed updates to current regulations under the Packers & Stockyards Act of 1921 to keep markets functioning fairly and properly. He described the GIPSA rule as a starting point for reinvigorating rural America.

A total of 60,700 public comments were filed on the GIPSA rule with somewhere between 28,000 and 52,000 of them appearing to be form letters, depending on who reported on the call.

The Secretary said he could not venture a guess as to how long it will take GIPSA to issue a final rule. But he did describe the steps the agency will now go through to finalize the rule: ■ USDA will put all the unique comments (those comments that are not form letters) on the website at www.regulations.gov. No comment was made by the Secretary on how

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he would handle the form letter comments.

■ USDA will identify the comments and will sort out the perimeters of the comments, sorting out those comments that addressed only a single part of the rule from those that may have addressed the entire rule.

■ USDA will then put together analysis teams who will review the specific content of the comments and determine if the agency needs to do more legal analysis or policy analysis for the rule.

■ USDA will then conduct a new cost/benefit analysis on the rule based on the issues and information contained in the comments. He said the public comments will allow for a far more rigorous economic analysis.

■ Once any additional analyses are complete, and after the new cost/benefit analysis is conducted, USDA will then put together the draft final rule.

■ After USDA obtains interdepartmental clearance on its draft final rule, it will send the rule over to the Office of Management and Budget (OMB).

Secretary Vilsack said it may take some time before OMB completes its review of the draft final rule.

■ After OMB completes its review, USDA will then publish the final rule in the Federal Register.

Secretary Vilsack said the USDA will take the public comments very seriously before making decisions on the many con-

cerns that have been raised and his goal is to achieve a workable, common-sense rule. While he said he cannot give a timeline for completion, he said USDA will take the time necessary to do this right, comprehensively, and in good faith.

In his remarks, Secretary Vilsack stated that rural America is in need of more people and that the joint USDA/Department of Justice competition workshops have amplified the very real differences, including differences in profitability, between the needs of small operations, mid-sized operations, and commercial operations. He said a real challenge is the disconnect between the less-than-one-percent of Americans who produce our food and the rest of America that consumes it, without having an understanding of the difficulties and challenges that producers face.

Comments from both sides on the GIPSA issue were supportive of the fact that the USDA will continue to thorough analyze the issue and consider the economic consequences of potential rule changes.

Additionally in early December Chairman Blanche Lincoln (D-Arkansas) held a Senate Agriculture Committee confirmation hearing on Ramona Romero’s nomination to be the General Counsel at USDA. Senator Lincoln led her line of questioning with concerns on GIPSA going well beyond the intent of Congress with this rule. She was firm that Congress had spoken and USDA needed to comply with the intent of the language in the 2008 Farm Bill.

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Page 5

Population growth slowest since 1940, census shows

South gains electoral clout in Census tally

Biggest increases in South, West and that should be boon for Republicans

The projections do not account for overseas U.S. military personnel and their families, who are typically counted at military bases in the U.S. The Census Bureau obtains Pentagon records on overseas military and adds them to the resident count before allocating the House seats. In 2000, North Carolina beat out Utah for the last House seat because of its strong Army presence.

The stakes are high. States on the losing end Tuesday may have little recourse to challenge the numbers. Still, census officials were bracing for the possibility of lawsuits seeking to reverse the 2010 findings, according to internal documents.

from MSNBC

fter knocking on 50 million doors and handling tens of millions of surveys, the Census Bureau announced that the official population of the United States is now 308,745,538.

The 2010 census also shows America’s once-torrid population growth dropping to its lowest level in seven decades.

The new number, based on the surveys taken on April 1, 2010, is a 9.7 percent increase over the last census, 281.4 million residents in 2000.

But that’s slower than the 13.2 percent increase from 1990 to 2000. And it’s the slowest rate of increase since the 1940 census. That is the decade in which the Great Depression slashed the population growth rate by more than half, to 7.3 percent.

The Census figures will be used to reapportion the 435 House seats among the 50 states. The numbers trigger a high-stakes process wherein the dominant party in each state redraws the election map, shaping the political landscape for the next 10 years.

In Congress, the steady migration to the South and West should be a boon for Republicans, with GOP-leaning states led by Texas picking up House seats.

The U.S. is still growing quickly relative to other developed nations. The population in France and England each increased roughly 5 percent over the past decade, while in Japan the number is largely unchanged and in Germany the population is declining. China grew at about 6 percent; Canada’s growth rate is roughly 10 percent.

“We have a youthful population that will create population momentum through a large number of births, relative to deaths, for years to come,” said Mark Mather, an associate vice president at the Population Reference Bureau, a private firm in Washington that analyzes census data. “But demographers generally expect slower growth in the first decade of the 21st century.”

The declining growth rate since 2000 is due partly to the economic meltdown in 2008, which brought U.S. births and illegal immigration to a near standstill compared with previous years. The 2010 count represents the number of people — citizens as well as legal and illegal immigrants — who called the U.S. their home on April 1 this year.

■ The most populous state was California (37,253,956); the least populous, Wyoming (563,626).

■ The state that gained the most numerically since 2010 was Texas (up 4,293,741 to 25,145,561); the state that gained the most as a percentage was Nevada (up 35 percent to 2,700,551).

■ Politically, Texas will gain

A

four House seats due to a burgeoning Hispanic population and a diversified economy that held up relatively well during the recession. Other winners are GOP-leaning Arizona (1) and Florida (2).

■ Other states with increases are: Georgia (1), South Carolina (1), Utah (1) and Washington (1).

■ States that lose seats are: Illinois (1), Iowa (1), Louisiana (1), Massachusetts (1), Michigan (1), Missouri (1), New Jersey (1), New York (2), Ohio (2), Pennsylvania (1).

■ The Ohio and New York losses typify many of the Democratic strongholds carried by

Barack Obama in 2008 that saw declines in political influence.

■ And, for the first time in its history, Democratic-leaning California did not gain a House seat after a census after losing many of its residents in the last decade to neighboring states.

On Monday, White House press secretary Robert Gibbs sought to downplay the possibility that 2010 census results would be a boon for Republicans. “I don’t think shifting some seats from one area of the country to another necessarily marks a concern that you can’t make a politically potent argument in those new places.”

The release of state apportionment numbers is the first set of numbers from the 2010 census. Beginning in February, the Census Bureau will release population and race breakdowns down to the neighborhood level for states to redraw congressional boundaries.

Louisiana, Virginia, New Jersey and Mississippi will be among the first states to receive their redistricting data next February.

The 2010 census results also are used to distribute more than $400 billion in annual federal aid and will change each state’s Electoral College votes beginning in the 2012 presidential election.

The Associated Press contributed to this report.

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Southwest Beef Symposium to address current issues facing the industry he Southwest Beef Symposium, jointly hosted by the New Mexico State University (NMSU) Cooperative Extension Service and Texas AgriLife Extension Service, is scheduled for Tuesday and Wednesday, January 18 and 19, in the Grand Plaza Room of the Amarillo Civic Center, 401 S. Buchanan

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The educational forum, tailored for beef producers, was established seven years ago to provide timely information annually about current industry issues and practical management. The event alternates between locations in New Mexico and Texas.

NMSU hosted the event last year in Tucumcari.

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“The symposium is an annual opportunity for beef producers to get a bona fide perspective of current issues facing the industry from nationally recognized speakers,” said Manny Encinias, NMSU Extension beef specialist.

Guest speaker Dennis Avery, director of the Center for Global Food Issues at the Hudson Institute in Washington, D.C., will open the symposium on the topic of feeding the world.

“Dennis Avery is sure to provide a thought-provoking platform that producers will find beneficial,” Encinias said.

Avery served as agricultural analyst for the U.S. Department of State from 1980 to 1988, where he was responsible for assessing the foreign-policy implications of food and farm developments worldwide.

At the Hudson Institute, Avery continues to monitor developments in world food production, farm production demand, the safety and security of food supplies and the sustainability of world agriculture. As a staff member of the President’s National Advisory Commission on Food and Fiber, he wrote the commission’s landmark report, “Food and Fiber for the Future.”

The January 18 program will begin at 1 p.m. with the Current Issues: Stand Up and Be Counted session, followed by an evening steak dinner. The January 19 program will run from 7:45 a.m. to 3:30 p.m. and include a lunch sponsored by Hi-

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In addition to Avery’s talk, the current issues section features discussions on “The Carbon Cycle and Beef Production” by Dr. Brent Auvermann, Texas AgriLife Extension; “Management Technologies and the Carbon Footprint of Beef Production” by Dr. Jim MacDonald, Texas AgriLife Extension; and “Management Technologies and Food Safety” by Dan Upson, Kansas State University.

“The second day of the symposium has always been focused on addressing timely management issues,” Encinias said.

The morning production session, Setting the Stage for the Next Five Years, will include talks on “Production Costs and Parameters for Cow-Calf Production in North Texas and New Mexico” by Stan Bevers, AgriLife Extension; “You and Your Heifers” by Rob Hogan, Texas AgriLife Extension; “Managing Fertility in Cows and Bulls” by Encinias and Bruce Carpenter, Texas AgriLife Extension; and

“Cow Fertility in Arid Environments” by Milton Thomas, NMSU professor in the College of Agricultural, Consumer and Environmental Sciences’ Animal and Range Sciences Department.

The program concludes with the afternoon Stocker/Feeder production session Cattle addressing “Weight Considerations” by Ted McCollum, Texas AgriLife Extension; “Vaccine Technology: What is on the Horizon?” by Glenn Rogers, Pfizer Animal Health; and “Managing the Weight Gain in Stockers” by McCollum.

There is a $50 registration fee for the symposium. Checks should be made payable to SWBS Acct. #229100. For more information and to register for the program online, visit the Southwest Beef Symposium website at swbs.nmsu.edu. Registration forms can also be mailed to: Bruce Carpenter, Texas AgriLife Extension Center, Box 1298, Ft. Stockton, Texas, 79735.

Labeling Law

continued from page one

Legislative Affairs Kristina Butts, in a release. “We wish USDA would have granted our request for an 18-to-24-month implementation period, [but] we are hopeful USDA will work with industry to find the least disruptive and most cost effective way to implement the rule.”

And Rep. Rosa DeLauro (D-Conn.), Chairwoman of the FDA and Agriculture Appropriations Subcommittee, said, “This new rule is an important step forward in helping consumers make informed choices about what they feed their families. Our country is facing an obesity epidemic, and if we are to make any progress against this problem, it is critical that consumers have access to nutrition information about the foods they buy at restaurants and at grocery stores.”

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USDA Requests Water & Land Conservation Project Proposals griculture Secretary Tom Vilsack announced in mid that the December, USDA is seeking proposals for projects that will bring partners together to help farmers, ranchers and private nonindustrial forest landowners implement beneficial water and land conservation practices. Proposals will be due by January 28, 2011.

“Farmers, ranchers and owners of forest land play pivotal roles in protecting and enhancing natural resources,” Vilsack said. “Our goal is to support projects that will improve the health of the natural resources on their land and bring the environmental and economic benefits of conservation to their local communities.”

The requirements for submitting project proposals for the Agricultural Water Enhancement Program (AWEP) and the Cooperative Conservation Partnership Initiative (CCPI) can be viewed at www.regulations.gov.

USDA’s Natural Resources Conservation Service (NRCS) will provide financial and technical assistance to eligible producers in approved project areas.

Through AWEP, NRCS provides support for projects that conserve and improve water quality, use irrigation water efficiently, mitigate the effects of drought and climate change and take other actions that benefit water resources. NRCS enters into partnership agreements with federally recognized Indian Tribes, state and local units of government, agricultural and forestland associations, and nongovernmental organizations to help landowners plan and implement conservation practices in designated project areas.

Twenty-eight projects approved for AWEP in fiscal year (FY) 2010 are supporting water conservation efforts in nine states. For example, in Luna County, New Mexico, $2.4 million was provided to help farmers on irrigated crop land convert irrigation systems from inefficient flood irrigation to highly effective drip (or microirrigation) systems. It is estimated that several hundred acre-feet of water will be saved over a ten-

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year period.

Through CCPI, NRCS and partners assist producers in implementing conservation practices on agricultural and nonindustrial private forest lands.

NRCS leverages financial and technical assistance with partners’ resources to install soil erosion practices, manage grazing lands, improve forestlands, establish cover crops, and reduce on-farm energy usage and other conservation measures. CCPI is open to federally recognized Tribes, state and local units of government, producer associations, farmer cooperatives, institutions of higher education and nongovernmental organizations that work with producers.

Twenty-six projects in 14 states were approved for CCPI in FY 2010. There were two significant CCPI projects which began last year in New Mexico.

The Arizona-New Mexico Borderlands Initiative is designed to improve more than 10 million acres of grazing land along the New Mexico and Arizona border. In New Mexico, ranchers in Grant, Hildago and Luna Counties applied for CCPI funding

that reduces invasive shrubs, improves soil conditions and water use, and create a better habitat for wildlife.

CCPI also funded the Grazing Lands Restoration Initiative in FY 2009, providing $1 million to the New Mexico Association of Conservation Districts to support numerous projects in New Mexico. Through a separate agreement with the U.S. Department of Interior – Bureau of Land Management, ranchers are receiving additional financial assistance to implement a wide range of conservation practices.

Proposals for AWEP and CCPI projects must be received by NRCS by Jan. 28, 2011. Visit www. nrcs.usda.gov/programs/awep and www.nrcs.usda.gov/programs/ccpi web pages to learn more.

2010 represents the 75th year of NRCS “helping people help the land.” Since its inception in 1935, NRCS has advanced a unique partnership with state and local governments and private landowners delivering conservation based on specific, local conservation needs, while accommodating state and national interests.

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January 15, 2011

Scientists See the Southwest as First Major U.S. Climate Change Victim

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by LAUREN MORELLO, ClimateWire (New York Times)

60-year drought that scorched the Southwest during the 12th century may be a harbinger of things to come as greenhouse gases warm the Earth, according to research published in mid December in the Proceedings of the National Academy of Sciences (PNAS).

The study’s authors used tree rings to reconstruct a portrait of droughts that struck the Southwest over a 1,200-year period stretching back to 900 A.D. They believe that understanding the droughts of the past could help water managers plan for

A

future dry periods that are expected to become more intense as climate change worsens.

Portions of the Southwest have suffered prolonged drought since 2001. But the medieval drought, which peaked along the Colorado River between 1146 and 1155, stands as the worst drought in the region for at least 1,200 years, according to the tree ring records.

Still, there are similarities to present-day conditions. The medieval drought occurred during a period from 900 to 1300 A.D. when the Southwest was about 1 degree Celsius warmer than average. Temperatures in the Southwest have been more

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attle prices across the board are expected to post year over year increases in 2011, according to Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel.

In an outlook report, Peel predicted cattle prices will likely rise into “uncharted waters” in 2011.

He identified five market factors expected to have the biggest impact on market prices.

Beef demand. Projected decreases in beef production in 2011 will pressure wholesale and retail beef prices higher. The ability to pass on the impacts of reduced beef supplies will depend on continued recovery in beef demand. Recessionary weakness continues to limit middle meat demand though signs of recovery were evident at the end of 2010. Increased competing meat supplies, mostly increased poultry production, may temper retail beef prices somewhat.

Herd Expansion . . . or Not? Limited cattle numbers are expected to result in reduced cattle slaughter in 2011. The magnitude of feeder supply squeezing will depend on the extent of heifer retention in the coming year. Though not yet confirmed by data, there were indications at the end of 2010 of limited heifer retention. The question of herd rebuilding will determine just how tight cattle supplies are in 2011 and also the timetable for potential increases in beef production in coming years.

2011 Crop Conditions. A 2010 corn crop that fell just short of record levels was still short enough to push corn prices sharply higher. Projected crop year ending stocks are at levels that make the feed grain markets extremely sensitive to anticipat-

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than 1 degree Celsius warmer than average since 1990, and climate models suggest greater warming by the end of the century.

It’s not a perfect comparison, said the study’s lead author, University of Arizona paleoclimatologist Connie Woodhouse. Temperatures are warmer now than they were in the 12th century, when it was drier than it is today.

But Woodhouse says the medieval scorcher represents a “conservative” worst-case scenario for future Southwest droughts, and the region’s water managers should take heed.

“There’s no reason to believe that we won’t have a drought like that in the future,” she said, “but we’re going to have warming on top of that.”

A region where the cost of inaction will be ‘particularly high’ Woodhouse’s work is one of several papers on climate change and drought in the Southwest published recently by PNAS.

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January 15, 2011 Together they sketch a portrait of a region where a combination of climate change and explosive population growth could bring about a water crisis in coming decades.

“Because climate warming will exacerbate water sustainability problems, the Southwest is likely to experience some of the highest economic expenses and environmental losses,” said Glen MacDonald, director of the University of California, Los Angeles’ Institute of the Environment, and an author of one of the new papers. “The ultimate costs of inaction in curbing greenhouse gas emissions will be particularly high for the Southwest.”

Explosive population growth over the past century has pushed the Southwest’s relatively meager water supply to unsustainable levels of use, the PNAS studies conclude.

The region’s population grew from 2.1 million to more than 50 million during the 20th century.

ed grain supplies. Crop markets will likely be especially focused on evolving crop conditions that will have a large impact on overall feed grain price levels as well as increased volatility from the pre-planting period through harvest. Crop prices and volatility will continue to have a big impact on livestock industries in general and in cattle, especially on the feedlot sector.

International Trade.

Strong beef exports provided critical support for cattle markets in 2010. Beef exports are expected to increase again in 2011, albeit at a more modest rate of gain. Global demand for beef is expected to continue growing though country specific economic conditions and currency exchange rates will have a large impact on specific trade flows.

Beef exports and imports both help the beef industry to improve domestic beef demand by changing the mix of products to better meet the preferences of U.S. beef consumers and increase total value to the industry.

Forage Conditions. Beef industry responses to the twin forces of limited cattle numbers and high feed grain prices depend on forage use. There are continued strong incentives for increased cow-calf production and for forage based stocker production. The quantity and quality of forage will have a big impact on both the level of production and the timing of feeder cattle flows in the coming year.

Currently, the La Niña weather pattern is producing dry conditions across much of the Southern Plains and Southeast regions that may impact winter grazing systems. Should dry conditions continue to develop and extend into the growing season, the impact on cow-calf production and summer grazing programs could be very significant. Widespread drought in major cattle regions could offset producer intentions with respect to possible herd rebuilding.

“America’s Favorite Livestock Newspaper” The U.S. Census Bureau estimates that, by 2030, the Southwest will be home to more than 67 million people. Within 50 to 100 years, the current population could double.

Even without the added pressure of climate change, that would stress the region’s water system, said John Sabo, a senior fellow at Arizona State University’s Global Institute of Sustainability, who served as lead author for one of the new studies.

His work shows the Southwest currently uses 76 percent of its surface water, a number that could rise to 86 percent when the region’s population doubles.

That’s not enough to support the Southwest’s growing communities and agriculture sector while also leaving enough water in its rivers to support healthy ecosystems.

“Part of the challenge we face in the Southwest is old-style thinking,” said Peter Gleick, president of the Pacific Institute and an author of another analysis. “We brought to the Southwest very European ideas about water, developed in water-rich areas . . . That worked OK for a while, although not really. But now it’s clear that green lawns and unlimited swimming pools and inefficient irrigated agriculture can't be sustained.”

Gleick says the solution lies in a combination of encouraging the development of untraditional water sources, such as reclaimed

wastewater, policies to encourage more efficient water use, efforts to coordinate water policy at local, state and federal levels, and planning to help water utilities adapt to climate change.

Best-case scenario ‘is not too good’ “I don’t consider the Southwest unique,” he said. “I consider them the first dying canary in the coal mine . . .

There is more and more evidence that climate changes are going to be felt in the Southwest early and deeply.”

Still, it’s not yet clear whether climate change is a factor in the current drought, scientists said.

“A lot of what we’re seeing is caused by natural variability,” said Richard Seager, a climate scientist at Columbia University’s Lamont-Doherty Earth Observatory. “There is this background steady drying of the region that is occurring due to rising greenhouse gases, and variability is moving around that.”

Over the past three decades, a trend toward more frequent La Niña weather patterns has helped drive Southwestern drought, Seager said, by influencing sea surface temperatures in the tropical Pacific Ocean.

Whether that trend will continue in coming decades isn’t clear. If the pattern switches to favor El Niño systems, which tend to send more storms through the Southwest, droughts could be gentler — at first.

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January 15, 2011

Gene Discovery Could Increase Value of Non-Food Crops for Industries Outside of Agriculture cientists at The Samuel Roberts Noble Foundation have uncovered a gene responsible for controlling

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key growth characteristics in plants, specifically the density of plant material.

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mass without increasing the agricultural footprint, meaning farmers and ranchers can produce more plant material from the same sized field. Plants that have increased density hold great potential to be used to produce biofuels, electricity and even advanced materials, like carbon fiber.

“This is a significant breakthrough for those developing improved plants to address pressing societal needs,” said Richard Dixon, D. Phil., director of the Noble Foundation’s Plant Biology Division. “This discovery opens up new possibilities for harnessing and increasing the potential of crops by expanding their ranges of use. These plants will be part of the next generation of agriculture which not only impacts food, but many other vital industries as well.”

Huanzhong Wang, Ph.D., a postdoctoral fellow in Dixon’s lab, found a gene that controls the production of lignin in the central portions of the stems of Arabidopsis and Medicago truncatula, species commonly used as models for the study of plant genetic processes. Lignin is a compound that helps provide strength to plant cell walls, basically giving the plant the ability to stand upright. When the newly discovered gene is removed, there is a dramatic increase in the production of biomass, including lignin, throughout the stem.

Research targeting plants that are grazed by animals has histor-

to 35 5 2

ically focused on reducing lignin production within the plant.

However, increasing lignin in non-food crops, such as switchgrass, may be desirable for increasing the density of the biomass and producing more feedstock per plant and, therefore, more per acre.

“This discovery opens up new possibilities for harnessing and increasing the potential of crops by expanding their ranges of use.”

“In switchgrass, as the plant matures, the stem becomes hollow like bamboo,” Dixon said.

“Imagine if you use this discovery to fill that hollow portion with lignin. The potential increase in biomass in these new plants could be dramatic. This technology could make plants better suited to serve as renewable energy sources or as renewable feedstocks to produce advanced composite materials that consumers depend on every day.”

Additionally, further research with collaborators at the University of Georgia revealed that removal of the gene also can increase the production of carbohydrate-rich cellulose and hemicellulose material in portions of the plant stem. These are the components of a plant that are

converted to sugars to create advanced biofuels, such as cellulosic-derived ethanol or butanol.

More celluloses and hemicelluloses mean more sugars to use for carbohydrate-based energy production.

“Science often progresses in increments,” Dixon said. “Every once in a while, though, you have a significant breakthrough that helps redefine the research.

This is certainly one of those moments for our advanced feedstock program.”

This project is supported by the United States Department of Energy and the Oklahoma Bioenergy Center. It builds upon decades of research by Dixon's group, which has already demonstrated the ability to reduce lignin in plants as well as modify its composition and characteristics.

The potential lies in the combination of these current and past discoveries to maximize the usefulness of agricultural crops; achieve more from less through the application of technology; and design agricultural feedstocks to produce sustainable sources for energy and other valuable industrial products.

This research was recently published in Proceedings of the National Academy of Sciences (PNAS) as well as selected as an Editors’ Choice feature in Science. Since its establishment in 1914, PNAS is one of the world's most cited, multidisciplinary scientific serials that publishes cutting-edge research reports, commentaries, reviews and perspectives. Science is regarded as the world’s leading journal for original scientific research, global news and commentary.

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Grilled Meat + Oregano = Reduced Cancer, Foodborne Disease Risks Research conducted by UA microbiologist Sadhana Ravishankar has shown that a compound in oregano reduces the formation of potentially cancer-causing compounds that can form in grilled meat.

by SHELLEY LITTIN, NASA Space Grant intern, University of Arizona Communications

dding oregano to meat before grilling could reduce the formation of potentially cancer-causing compounds by up to 78 percent, University of Arizona researchers have found. The spice also helps inactivate harmful E. coli O157:H7 in the meat.

Research conducted by UA microbiologist Sadhana Ravishankar has shown that a compound in oregano reduces the formation of heterocyclic amines, the potentially cancercausing culprits that can form in grilled meat.

“We are preventing the formation of potentially carcinogenic compounds in the grilled meat itself, so people can eat safer grilled meat,” said Ravishankar, an assistant professor in the UA’s department of veterinary science and microbiology in the College of Agriculture and Life Sciences.

Her study was published in the Journal of Agricultural and Food Chemistry.

Heterocyclic amines form in grilled, charbroiled or fried meat in two essential steps. First, a raw juicy hamburger is slapped on the grill. As the meat heats up, amino acids and glucose in the meat react with each other to create molecules known as intermediates. Next, these intermediates react with creatinine, a molecule that is present in muscle.

The result is heterocyclic amines.

Once the nice and crispy hamburger is eaten, the heterocyclic amines potentially could lead to cell malfunction. Several epidemiological studies have shown a possible correlation between the consumption of well-done meats and different types of cancers in humans.

So maybe people can live without that extra crispy texture on their meat. Unfortunately that strategy has a pitfall too: There are established standards for cooking ground beef in order to eliminate harmful E. coli bacteria in the vast majority of commercial meat. Restaurants often recommend well-done meat to minimize the potential for foodborne illness.

“The ground beef patty has to be heated to a temperature of 71 degrees Celsius to kill E. coli bacteria,” said Ravishankar.

“When they say 71 degrees, that means the cold spot at the geometric center of the ground beef patty. What happens is when you’re grilling or broiling or frying, it takes longer for the geometric center to reach 71 degrees while the periphery of the meat has already reached that ahead of time and the temperature continues to rise. The

A

higher the temperature, the more the formation of heterocyclic amines.”

So it’s E. coli on one hand, and potential carcinogens on the other. Not the best of choices.

Luckily, a plant compound found in oregano may be a solution to both problems.

“We added the active ingredient of oregano oil, called carvacrol, to the meat. Then we grilled the meat, and we were able to reduce the formation of these compounds,” said Ravishankar. “Carvacrol has antioxidative properties, so we are thinking that it binds to or reacts with some of the intermediates and prevents them from forming the heterocyclic amines. The mechanism is not clear yet.”

Carvacrol also has antimicrobial properties that inactivate E. coli: a membrane-active compound, it breaks the chain of fat-

ty acids that makes up the outer membrane of an E. coli cell, causing the cell to leak its contents.

“We are also hoping that by using these compounds we can reduce the temperature of heating to inactivate E. coli,” said Ravishankar. “If you reduce the temperature of heating, you can reduce the formation of heterocyclic amines automatically.”

Collaborating with Mendel Friedman at the U.S. Department of Agriculture’s Agricultural Research Service Western Regional Research Center in Albany, Calif., Ravishankar is currently testing other antioxidative and antimicrobial plant compounds and extracts to find out if they have similar effects as carvacrol on grilled meat.

To prevent compromising the meat flavor and taste, Ravishankar’s lab is testing different combinations of plant compounds. “We plan on evaluating different combinations in such a way that you reduce the heterocyclic amines, inactivate E. coli, and at the same time you keep the flavor of the ground beef palatable,” said Ravishankar.

In the future, Ravishankar would like to test the effects in

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animal studies designed to find out whether consumption of meat containing plant compounds helps protect against both infection and cancer.

Meanwhile, Ravishankar’s research has shown for the first time a way to simultaneously inactivate harmful E. coli and

reduce the formation of potentially carcinogenic compounds in grilled meat itself, hopefully saving us from a future filled with medium-rare food.

This research is funded by a grant from the American Cancer Society through the Arizona Cancer Center.

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Page 12

Riding Herd continued from page one

es atop his bald head, a phone clipped on to his ear and iPod ear buds around his neck. Turns out the guy who used to listen Jefferson Airplane now was a big Lady Antebellum fan. It made me furious that he now liked to groove to country/western music and I wanted to scream, “You can’t do that. That’s my music.

Go back to the Grateful Dead, you acid head.”

Stoner’s real character came out at dinner. Surprise, surprise, he and Amber were lacto-ovo vegetarians and this guy who’d crammed an entire pharmacy into his body every week in

school now didn’t want any foreign substances in his food. He ordered bottled water because it was more pure and he tried to tell me what to eat!

He showed me photos of his tattooed and pierced five kids by three different women, one of whom ran an “alternative lifestyle” bookstore in San Francisco. Instead of everything being “far out” his every other word was now “awesome.” And here’s the worst part: When I asked him what he did for a living he said he worked for the USDA! This guy who teasingly called me “farmer” in high school, laughed at us when we wore our FFA jackets to school, and wouldn’t know a Holstein from a John Deere, worked for

the USDA! (Food stamp division). This guy who burned our flag and hated our government had worked for it ever since he got back from Canada.

When I walked the couple to their car after dinner I was surprised to see a silver Lexus instead of an old VW bus, and it was plastered with bumper stickers for the Humane Society, Nature Conservancy and “Green Sex.” It turns out that Stoner is now an activist for reproductive rights and guaranteed access to contraception. The old hippie who used to protest that we’d all die in a nuclear holocaust now knows we’ll all perish due to global warming. The same old hippies who believed in free thinking and having an open mind are the

Western Legacy Alliance Research Spurs Congressional Action on Exposing Taxpayer Funded Lawsuit Racket of Radical Environmentalists I am/our organization is committed to protecting the open spaces, private property, private businesses and ensuring the responsible use of public lands.

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January 15, 2011 same people who’ve given us political correctness.

As Stoner pulled away he rolled down his car window and said, “Peace and love brother.”

And that’s when it hit me: The

old hippies don’t like our country any better now than they did in the sixties, despite the fact that they’re now running the operation! They are still revoltin’ . . . in more ways than one.

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January 15, 2011

BOOK REVIEW

It Started In Nebraska

by Phil Raynard Available from Barnes and Noble, or direct from Phil

Book Review

by Lee Pitts have known Phil Raynard for all of my professional life, some 38 years now. When I first met him I was all of 21 years old and he was one of the old-timers of the business as Publisher of the California Cattleman Magazine. We hit it off

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American Shorthorn Association Elects New Board he American Shorthorn Association (ASA) 2010 annual meeting was held during the 2010 North American International Livestock Exposition (NAILE). During the meeting delegates reelected three ASA board members to serve a three-year term. Returning to the board for newly elected terms are Les Mathers, Ill., Ricky Guidry, La., and Billy Zach Taylor, Ky. Les Mathers from Morton, Ill., operates Leveldale Farms which was established in 1852 and is dedicated to breeding highly fertile, easy calving, and rapid-growing cattle. Mathers graduated from the University of Illinois, has a medical degree, and currently serves as the Chief Medical Officer for Carle Clinic.

His philosophy is to work with the other board members to expand and improve service to all breeders and exhibitors, and to support the identified strategic initiatives already in place.

Ricky Guidry from Bell City, La., owns RL Cattle Co, which is a family herd of about 150 commercial cows and 30 Shorthorn cows. Guidry served as a Research Associate with the Department of Agricultural Economics at LSU conducting research and teaching freshmanlevel courses, worked with the Federal Land Bank of Baton Rouge doing commercial and ag lending, and developed Dupont Building, Inc. He is dedicated to supporting agriculture nationwide and has the desire is to use his business background to help promote Shorthorn cattle.

Billy Zach Taylor from Salem, Ky., began integrating Shorthorn cattle into the Taylor Stock Farm in 1960, and has shown, purchased, and sold cattle since then in over 25 states and Canada.

Taylor brings first hand knowledge of several different aspects of the cattle industry, including commercial cattle production, producing registered cattle, and managing a backgrounding operation. The Taylor Family has been actively involved in the Shorthorn breed and strives to produce good, sound, functionally correct cattle.

immediately and I, like everyone else who has ever met Phil, immediately knew three things about him: that he was extremely intelligent, extremely witty, and most importantly to him, that he was from Nebraska. And very proud of it!

Later on I learned another thing about Phil: that he was writing a book. Oh sure, I thought. Just about every successful person I’ve ever met has told me they were writing a book, yet hardly any of them

have. Well, darned if Phil didn’t do it, and it’s not just any old book, but 419 pages of text with over 250 individual stories, or what Phil calls Bio Bits. They are all about his life on the family farm near Stapleton, Nebraska, and about his experiences in the Navy. Everyone of the stories is good for a chuckle or a fond remembrance. Just like Phil, I found his book to be intelligent and witty.

That Phil titled his book It Started In Nebraska, came as no surprise to me because according to Phil the world revolves around the state. Although he lives and sells real estate in California he makes it clear that in his mind there are no better people on

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earth. Although I don’t agree with Phil that the land of bib overalls and football is the Fountainhead of all great ideas and things in this world, I would have to agree with his assessment of the folks who live there.

Phil isn’t looking to get rich from his book but instead merely wanted to leave a record about his family and the events that shaped their lives for those relatives and friends who come later.

He wrote about herding turkeys, milking cows and the everyday work with horses that made life on the farm bearable for him.

His stories about the depression and drouth of the thirties in the Sandhills of Nebraska put our lives today in proper perspective.

Sure they were poor but like Phil wrote, “how do you know if you are poor if you’ve never met any rich people?”

Let me warn you, this book is not one you’re going to sit down and consume in an evening or two. It’s a book best enjoyed one bio bit at a time. I made a point of reading two or three a day and when I finished I not only had a greater respect for Phil, but a greater respect for a generation that is vanishing before our very eyes right now.

You can buy Phil’s book online, in person from Barnes or Noble or direct from Phil for $24.95 plus three dollars per book for postage. You don’t have to be from Nebraska to enjoy it.

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Livestock Market Digest

Page 14

Wasteful Humane Society of the United States Earns a Spot on Charity Watchdogs’ “Naughty” Lists New Report Concludes 50 Cents Of Every Dollar Donated To HSUS Is Swallowed Up By “Overhead” Expenses n mid December the nonprofit Center for Consumer Freedom (CCF) pointed to the 2010 “Watchdog Report” from Animal People News, which determined the Humane Society of the United States (HSUS) spends 50 cents of every donated dollar on continued fundraising and additional overhead costs. HSUS has a holiday fundraising goal of $1.2 mil-

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lion, of which a staggering $600,000 will likely go to raise more money, pay lobbyists, and fund HSUS’s $11 million pension plan. HSUS’s skewed spending priorities leave countless shelters without funds in today’s tough economy.

Animal People News, the well-regarded newspaper of the animal rights movement, studied HSUS’s 2009 federal income tax

return and determined that 50 percent of HSUS costs were “overhead,” not 29 percent as HSUS claims. CCF’s own analysis of HSUS’s recent tax filings indicates that HSUS shares less than one percent of the public’s contributions with America’s underfunded pet shelters.

“The holidays are all about giving but HSUS seems more interested in taking, keeping, and wasting,” said David Martosko, CCF’s Director of Research. “Homeless dogs and cats deserve better. Americans

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January 15, 2011 should support their local humane societies which are far more efficient with each precious dollar.”

In addition to the Animal People News report, HSUS received a “D” rating in the

“Animal lovers need to know the difference between HSUS and real humane societies.”

American Institute of Philanthropy’s most recent quarterly “CharityWatch” guide. And Charity Navigator now gives HSUS one star (out of four) for organizational efficiency.

These near-failing grades are a consequence of HSUS’s factoryfundraising practices and incom-

petent nonprofit management.

The Los Angeles Times reports that of the $8.6 million HSUS raised through California telemarketing campaigns between 1997 and 2006, only $976,000 made it to HSUS. And HSUS’s most recent tax return shows that the group spent an exorbitant $3,999 for each animal its “rescue operations” saved.

Martosko added, “Animal lovers need to know the difference between HSUS and real humane societies. The only way to be sure your donations will help homeless dogs and cats is to give to organizations in your own community.”

The Center for Consumer Freedom is a nonprofit watchdog organization that informs the public about the activities of tax-exempt activist groups. It is supported by American consumers, business organizations, and foundations. www.baxterblack.com

Baxter ON THE EDGE OF COMMON SENSE

BLACK

The Catfish Institute everal years ago I made a commercial for the Catfish Institute. Their office was in Belzoni, Mississippi. The commercial concluded, “. . . just write in care of Miz June. That’s B-E-L-Z-O-N-I. You learned to spell Mississippi in grade school!”

I have spent most of my life in the mountain west so trout has been my primary fish source. But I come from deep Oklahoma roots and, from my youth, I have been a frequent visitor to my Okie farmer kinfolks. Each one had a pond stocked with bass and catfish. Catfish almost tastes like meat, whereas trout tastes like fish.

Anybody who lives in the S.E.C., South East College Football Conference, appreciates that catfish beats country ham and red-eye gravy as the supper of choice, most of the time. Catfish is to the South what chile is to the Southwest, brisket is to Texas, crabs to the Chesapeake Bay, pizza to middle-school soccer moms, and porridge is to Minnesota.

Catfish on the menu still flourishes but the local catfish farmer’s market is in decline for the 6th straight year. Reason: Cheaper imported catfish primarily from Asia. Sound familiar?

Just ask the three sheepherders still in the United States, or ask an American Lumberjack if you can find one, or a shoemaker or steelworker.

America is still capable of supplying all our catfish needs but raising them is now being “outsourced”. The Catfish Institute

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blames higher grain prices as a factor, but I’m guessing even if soybeans and corn dropped to less than a dollar and the USDA and EPA removed all the catfish regulations, the Mong, Vietnamese and Chinese could still furnish it cheaper! The Institute is pushing for a mandatory “Country of Origin” labeling law. It seems to be having a dampening effect on our Mexican beef imports.

But if Miz June called me and said, “Bax, what can we do to compete with foreign catfish farmers?” I would point to the most successful “value added” (which means you can charge more) program that I know; Certified Angus Beef. On a private sector level look at Dole Pineapple, Diamond Walnuts, Omaha Beef, Washington Apples, Idaho Potatoes, French Toast, Belgian waffles and why are Florida Oranges worth more than Edmonton Oranges or Milwaukee Oranges?

Distinguish your product from imports with name brands like: “Cajun Catfish, raised on Zydeco music!”

“The Crimson Catfish, each granted an honorary degree from University of Alabama!” Talk about a school of fish!

“Bentonville Catfish, with the WalMart Seal of Approval!”

How ‘bout “Mississippi River Baptized Catfish, sprinkled for Catholics and dunked for Baptists!”

Right now I’m getting hungry for some good ol’ catfish cookies, or a dish of catfish ice cream . . . with red eye gravy, of course!

January 15, 2011

“America’s Favorite Livestock Newspaper”

Page 15

Superior Livestock to Survive Losses Eastern Livestock Owes Superior $19 Million

by KATIE MICIK, DTN Staff Reporter

uperior Livestock’s general manager said the company is lucky that it’s going to be able to withstand the more than $19 million shortfall it faces due to Eastern Livestock Company’s collapse.

Superior Livestock, an online and satellite cattle auction service, is the largest petitioning creditor in the involuntary bankruptcy proceedings against Eastern Livestock.

Jim Odle, the general manager and former owner of the online and satellite cattle auction service, also said the industry has seen rough times before and will make it through the damage that’s been left in the wake of Eastern Livestock’s downfall.

“It’s hard to see the positive because it’s been so visibly negative,” Odle told DTN. “If you look back through the past, there have been many more dollars lost in dairy, in bank failures. All we can do is work, clean up the mess and try to keep all the money from going to attorneys’ hands. That’s how it lines up in a lot of bankruptcy cases.”

Superior Livestock is the largest petitioning creditor in the involuntary bankruptcy proceedings against Eastern Livestock.

The Grain Inspection, Packers and Stockyards Administration estimates that Eastern Livestock’s failure has left more than 740 sellers short $130 million.

Outside of what Eastern owes to Fifth Third Bank — the cattle brokerage is $13 million overdrawn and in default on a $32 million loan — Eastern owes Superior Livestock the most, according to court documents.

Superior’s filings in the bankruptcy proceedings allege it’s owed $19,270,617.70.

And in court filings in Texas, Superior Livestock has alleged that Fifth Third Bank failed to follow its fiduciary responsibilities as a lender and contributed to the heavy losses throughout the cattle business.

Eastern failed to fulfill its end of the bargain on about 500 contracts with Superior between Oct. 22 and Nov. 13. Checks worth $8.96 million were returned with the note “refer to maker,” according to a spreadsheet included in court documents. Superior Livestock stopped depositing the checks it received from Eastern on Oct. 28 and between Oct. 29 and Nov. 1 Superior received checks totaling $4.34 million that it did not deposit. Superior received no payment for $5.98 million worth of cattle. The spreadsheet indicated that some of the cattle sold to Eastern are still in Superior’s possession, but Superior has already paid the seller for the cattle.

Odle said it’s important to focus on the positive.

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“The market has been good and that’s a blessing,” he said.

“We haven’t seen any problems filling the gap left by Eastern.”

He’s noticed there are more buyers than usual bidding in his company’s auctions as more feedlots are purchasing their cattle directly.

“Getting Eastern out of the picture has created competition in the industry that Eastern had taken away,” he said.

Eastern Livestock was doing about $10.75 million of business every two days based on a GIPSA requirement that Eastern increase its bond to $1.15 million and the formula used to compute bond amounts. (DTN subscribers can find more details about how GIPSA computes bonds by reading “GIPSA Explains Bond Process” in the Recent Features section.)

Superior is involved in another case resulting from the confusion of Eastern Livestock’s collapse.

Three large feeders in Texas — Friona Industries, Cactus Growers and J&F Oklahoma Holdings — have asked the federal court in Amarillo to sort out funds that are in dispute. After Eastern Livestock’s checks bounced, many sellers turned to the feedlots, who received the cattle sold through Eastern, requesting payment be made directly to them and not through Eastern.

Instead of making payments, the feedlots deposited the disputed funds with the court, about $6.9 million between the three feeders. The feedyards are requesting that the court allow them to recoup the cost of down payments made on cattle that Eastern didn’t deliver and allow them to recover what they’ll lose in replacing those cattle at a higher price, according to court documents.

Then, they’re requesting the court figure out who will be paid what.

Messages left for the lawyers for Cactus Growers, Friona Industries and J&F Okalahoma Holdings by DTN were not immediately returned.

Superior Livestock was involved in business transactions with all three feeders through Eastern Livestock, according to the court documents. Superior has only filed an answer to Friona’s claim.

In court documents, Superior Livestock argues that it’s entitled to $776,109.69 of the $2,542,846.79 interpled funds, which is the legal term for the contested funds deposited with the court by Friona. Odle said he can’t blame Friona for taking the legal route it did.

“They just want to know who to pay,” he said. “I’d rather see that than what lots of people are doing, just waiting for someone to demand payment. That’s being a little bit dishonest I think by not interpleading that money and using it to keep buying. It will all shake out, but it’s not a fun deal.”

Perhaps one of the more interesting parts of Superior Livestock’s answer in the case is

the cross claim it makes against Fifth Third Bank. The Cincinnati-based bank’s lawsuit against Eastern Livestock argues that it’s the creditor that should be paid first. Superior is arguing that if Fifth Third Bank claims any interest in the proceeds of the Superior-Friona transactions, the court should favor Superior because the bank “engaged in inequitable conduct with respect to Superior.”

Superior’s cross claim argues that Fifth Third was familiar with all aspects of Eastern’s business and “knew or should have known

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that Eastern’s business practices, including those involving the Superior-Friona Lots, were unsound” and that “Fifth Third’s decision to permit the practices to continue put cattlemen and cattle auctioneers, such as Superior, at risk of loss. Nevertheless, Fifth Third allowed Eastern’s practices to continue, and allowed $19,000,000 of Eastern’s checks payable to Superior and drawn on Eastern’s account with Fifth Third to be returned.”

A media representative from Fifth Third Bank declined to comment on ongoing litigation.

Brown Farms Inc. Black - Red BULLS & HEIFERS FOR SALE Louis Brown • louis88411@yahoo.com 575/576-2207 • 575/403-8765 626 Route 66, Bard, NM 88411 GOD OWNS THE CATTLE OF A THOUSAND HILLS

auer Dependable Genetics 34th Annual Angus Bull & Female Sale At the Farm - Hinton, Iowa January 29, 2011 • 12:30 p.m.

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Livestock Market Digest

Page 16

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January 15, 2011

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ignificant cuts are coming to farm programs when the next farm bill becomes law, probably in 2012.

“All signs point to less of a safety net. I can’t put a positive spin on what’s happening in Washington,” said Joe Outlaw, professor and Texas AgriLife Extension economist. “Congress can’t take less money and make everyone better off.”

How deep could the cuts go?

Depends on whose numbers get the most attention, but proposed cuts by either the National Commission on Fiscal Responsibility and Reform or the Bipartisan Policy Center indicate severe reductions, Outlaw said.

The former would eliminate

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$1 billion out of a $6 billion total.

The latter would take $3billion, half the current budget.

“The 2002 farm bill had $11 billion in the commodity program,” Outlaw said during the Texas Plant Protection Association annual conference in College Station. “In 2008, we got $6 billion.” Funding for crop insurance doubled and nutrition program funds more than doubled.

Outlaw said 38 programs in the 2008 farm bill do not have baselines to carry them forward.

He said one possibility congress might consider is redirecting funds to “those at risk. For sorghum, cotton, rice and wheat, direct payments are going to landowners. The safety net is not going to farmers.”

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DP main target Those funds could be redirected to producers. “But direct payments will be a main target,” Outlaw said.

Agricultural commodity groups will need to prioritize issues.

“Each group will want a fair share.

“We see a lot of uncertainty.

All people in Washington want to talk about are the budget and the deficit. They are looking for places to cut, and agriculture will take a hit. I expect to see more money spent on crop insurance than on commodity programs.”

Nutrition programs will claim 75 percent of the agriculture budget.

Outlaw said uncertainty also hangs over the ag committees.

Frank Lucas, R-Okla., will be the new chair of the House Agriculture Committee and has been a strong supporter of agriculture.

Less known will be the Senate chairman, Debbie Stabenow, DMich., who will replace Blanche Lincoln. “She (Stabenow) is an unknown entity,” Outlaw said.

“Losing Lincoln was a big hit.

She knew southern crops.”

He said the Brazil cotton case also will weigh on farm bill debates as legislators contemplate the $147 million a year paid to “Brazilian farmers to make them better. That will not sit well in Washington. And the rest of the world will look at cotton in the next farm bill.”

Outlaw expects debate to begin in 2012. He said Collin Peterson would have begun the process in 2011, but Lucas prefers to “stick with the current program. They can’t do much with the farm bill until they know how much of a cut agriculture will take.”

Source URL: http://deltafarmpress.com/ government/farm-program-cuts-be-deep

Arizona sausage processor plans expansion

by TOM JOHNSTON

Phoenix-based sausage processor will spend $30 million on an expansion plan that includes opening seven restaurants in the city and add 200 jobs.

Stanley’s Homemade Sausage Co., the Arizona Republic reported, will expand by December 2011 to 250,000 square feet of retail, deli and restaurant space from 7,000 square feet.

Marko Stovanovic, Stanley’s chief operating officer, was quoted as saying the company’s customer base is growing. Meanwhile, the lagging economy provided an opportunity to buy property and build on the cheap.

The new business will comprise a cooler and storage for sausage, snack-food products, beef jerky, poultry and a donation site for food banks. Stanley’s sells 76 meat products, the majority of them sausage, according to the Arizona Republic.

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“America’s Favorite Livestock Newspaper”

January 15, 2011

Livestock Groups Say Secretarial Order May Threaten Grazing ecretary of Interior Ken Salazar, on November 15, 2010, signed a Secretarial Order elevating the Office of the National Landscape Conservation System and Community Partnerships in the Bureau of Land Management (BLM) to the level of a directorate within BLM. In response to the Secretarial Order (the Order), the Public Lands Council (PLC); American Sheep Industry Association (ASI); National Cattlemen’s Beef Assoc. (NCBA); and 19 other livestock groups sent a letter to Secretary Salazar, voicing their concern that the Order

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could threaten livestock grazing on BLM lands.

The National Landscape Conservation System (NLCS) was codified in the Omnibus Public Lands Act of 2009 in order to “conserve, protect, and restore nationally significant landscapes.” It consists of approximately 10 million acres of national monuments, national conservation areas, and other specially designated BLM lands.

By merit of statute, livestock grazing occurs on much of NLCS land. According to PLC president John Falen, the laws mandating grazing on NLCS

FSIS unveils humane handling enforcement measures

by LISA M. KEEFE

he USDA’s Food Safety and Inspection Service (FSIS) announced several measures to better enforce humane handling laws for cattle slaughtered at FSIS-inspected facilities.

Among the new measures the agency announced are: Inspection personnel are instructed to condemn and promptly euthanize all nonambulatory mature cattle, regardless of the reason for the animal’s non-ambulatory status, to ensure they are humanely handled. The clarification is intended to ensure that the policy is consistently applied at all federally inspected establishments by resolving any uncertainty on how inspectors should interpret existing rules.

The agency will respond to and solicit comments on petitions from the Humane Society of the United States (HSUS) and Farm Sanctuary. FSIS will soon publish a federal register notice providing the tentative conclusions FSIS has drawn regarding each petition and asking for public comment on both.

FSIS will appoint an Ombudsman in the Office of Food Safety specifically to address humane handling issues. The ombudsman will provide FSIS employees a channel of communication to voice their concerns when the standard reporting mechanisms do not adequately address outstanding issues.

The USDA Office of Inspector General will audit industry appeals of noncompliance records and other humane handling enforcement actions by FSIS inspection program personnel to help determine whether FSIS has adequately handled humane handling violations identified by inspection personnel and challenged by an establishment. The audit will give the Agency a better picture of how well the appeals process works, and if problems are found, FSIS will take action to address them.

FSIS will deliver enhanced humane handling training to give inspection personnel more practical, situation-based training.

“Under this Administration,

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we have significantly strengthened our ability to enforce the Humane Methods of Slaughter Act, but we have more work to do,” Under Secretary for Food Safety Dr. Elisabeth Hagen said in a news release. “That is why we are taking concrete steps to address outstanding humane handling issues, ranging from enhanced employee training to clearer guidance on existing rules.”

lands are not given due consideration in the Order.

“The Order says multiple uses such as grazing may be allowed, as long as they are not ‘in conflict’ with the ‘values for which [NLCS components] were designated’," said Falen. “That leaves a lot of room for litigious environmental groups to claim that grazing is ‘in conflict’ with conservation — even though well-managed grazing is documented to actually promote healthy ranges. In fact, grazing on federal lands keeps many ranching families in business, which is critical in preserving vast open spaces. We are a vital part of the conservation effort, not a burden to it.”

Steve Foglesong, president of the National Cattlemen’s Beef Association, expressed concern regarding the possibility of expansion of the NLCS portfolio.

“The Secretary stated that NLCS is a ‘successful model for our nation.’ If NLCS continues to grow, managed under the concepts put forth in the Order, we have a lot of questions about the direction it will take the BLM, whose mission is based on management for multiple use,” said Foglesong. “Our members need assurance that they will continue as part of a vibrant, working landscape.”

Digest

Equipment

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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.

T HE L I V E S T O C K M A R K E T D I G E S T

Real Estate

GUIDE CONTINUED ON PAGES 18 and 19

To place your Real Estate listings here, contact Debbie Cisneros at debbie@aaalivestock.com; New Mexico office: 505/243-9515, ext. 30; or Colorado office: 720/242-8032 (direct line)

Southeastern N.M. Ranches For Sale MOATS RANCH – 20,565 Total acres, 12,025 deeded.

Thirty miles north of Roswell, N.M. along and on both sides of U.S. Highway 285. 400± Animal Units Yearlong.

Three wells and pipelines.

DEGANAHL RANCH – 5,635 Total acres, 960 deeded.

BLM grazing permit for 164 Animal Units Yearlong. 40 miles northwest of Roswell, NM north of State Highway 246. New improvements, three wells and pipelines.

Bar M

Contact: SCOTT MCNALLY, Qualifying Broker, C: 575/420-1237

REAL ESTATE

www.ranchesnm.com

P. O . BO X 4 2 8 • RO S WE L L , N . M. 8 8 2 0 2 •

Classifieds

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Page 17

DANE STUHAAN

575/622-5867

Southern Oregon Farm / Ranch & Recreational Properties (800) 772-7284 • www.orop.com I REMARKABLE INVESTMENT OPPORTUNITY! 2,024.62 acres, includes timber, estimated 8,000,000 board feet of mixed species excluding hardwood in the count. Views, expansive meadows, 5 dwellings, old water rights for 225 acres. $7,000,000.

I FINE AG LAND! Historic property – in the same family since 1857. 70.5 acres with 57 irrigated. Also included 12+ acre side lot with homesite possibilities. $879,000.

I PROFESSIONALLY DESIGNED EQUESTRIAN FACILITY! Multiple dwellings, w/potential of 2 spectacular additional homesites on 362.70 acres. 220 acres of irrigated ground. Wine grape study shows 180 potential vineyard acres. Engineered drainage system, well designed 240 x 120 covered arena with attached viewing area, multiple wash rack tack and fitting facility, 40 x 40 vet barn with 2 stalls, as well as 26 shed row stalls all with runs. $4,900,000.

I WORLD CLASS FLY FISHING WATERS! 1,704 ACRES. 2¼ miles of Upper Williamson River frontage, bordering National Forest. Rustic cabin and shop, meadows and timber. $2,450,000.

I MOUNTAIN SHADOWS RANCH, 182 TRANQUIL ACRES. Existing home and second approved home site. 1.1 million net board feet of marketable timber, including a year-round creek and pond with water rights. 50+ acres of irrigated hayfield and pasture. Gravity flow spring produces abundant water. $2,184,000.

I A SELF-CONTAINED RANCH OF 328 acres. Scenic creek front property with 2 homes. Water rights dated 1865 for 100 acres of pasture. Currently running 65 cows. Indoor arena, 2 feed barns, one with covered working cattle equipment. $1,500,000.

I ONE OF A KIND 267.60 ACRE RANCH with tall trees and meadows surrounding the historic lodge. Multiple living quarters in private setting.

Gravity wheel-line irrigation system irrigates 240 acres. Over 12,000 feet of drain tile insure highly productive meadows. 2 large barns and range rights. $2,700,000.

(CA) 559/688-7695 • Cell (NE): 559/731-7695

LIVESTOCK HAULING California, Arizona, Nevada, Oregon, Idaho & Nebraska

Contact: Tom Harrison 541/944-3131 harrison@orop.com www.orop.com 800/772-7284

Livestock Market Digest

Page 18

U.S.-China Trade Talks Advance

by TOM BARKLEY / Wall Street Journal, D.C.

hina agreed in mid December to move toward lifting restrictions on some U.S. beef imports and provided new assurances that its efforts to promote domestic innovation won’t discriminate against foreign firms.

China’s pledge to gradually reopen its market to U.S. beef from cattle under 30 months old was one of a number of potentially significant announcements coming out of two days of bilateral trade talks, signaling a further easing of tensions in the growing economic rivalry.

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As with previous rounds of bilateral trade talks, most of the concessions were made on the Chinese side, although there were no major breakthroughs and the importance of the agreements Beijing made will depend on implementation. The U.S., for its part, agreed to consider Chinese concerns over traderemedy cases and export controls on sensitive technologies.

U.S. trade officials emerged from the annual talks reassured that their concerns about Chinese discrimination against U.S. companies had been met.

“Of course we need to ensure full implementation of these

Capulin Ranch, Separ, N.M. – 21,640 acres total, 7,785 deeded acres and 13,835 leased acres. 350 auyl operation has excellent fences, 8 pastures, 2 traps, 10 wells and drinkers, forage is in excellent condition. Good populations of mule deer, antelope, big cats, javalina and quail. HQ home is SW style with pool. Guest home, equip storage, rail cars, pens and scales at HQ location. Price is $4,000,000 La Cueva Ranch, Las Vegas, N.M. – 3,334 deeded acres on Apache Mesa 20 minutes from Las Vegas, NM. Caves, rimrock, canyons, grassy mesa tops and tall pines. Smaller parcels available. Very scenic area. Priced at $1,779,000 Trigg Ranch Parcels, Las Vegas, N.M. – 720 acre and 360 acre parcels located on Apache Mesa at $612,000 and $216,000 respectively. 180 acre parcel located on Hwy 84 has stunning views, several building sites on this parcel. Priced at $298,000

Ken Ahler Real Estate Co., Inc.

www.SantaFeLand.com 1435 S. St. Francis Drive, Suite 210 • Santa Fe, N.M. 87505 O: 505/989-7573 • Toll Free: 888/989-7573 • M: 505/490-0220 E-mail: kahler@newmexico.com

THE RANCH FINDER presents . . .

Escondida Land & Cattle Co. A great ranch located in the foothills of the Capitan Mountain of Lincoln County, N.M., near Arabela, just eight miles above the Hondo Valley from Tinnie. 45 miles west of Roswell, and 25 miles east of Ruidoso, Escondida Ranch consists of 9931 deeded acres plus 6,551 U.S. Forest Service Lease w/an additional 490 New Mexico State Lease acres, 27 being sections of rolling foothills and open valleys of grama grass pastures at an altitude of 5,000 ft. A four-season cattle ranch w/an established grazing capacity of 500 animal units or 750 yearlings on a six-month grazing rotation system. This grazing program is also tied in with 130 acres of water rights applied to sprinkler irrigated grass pastures, w/irrigation wells capable of pumping up to a 900 gallon-per-minute at less than a 100' depth. Escondida Ranch is improved with a full service modern headquarters complex w/new barns, corrals and shipping pens w/scales. This area of Lincoln County is noted for its big game habitat and the ranch is annually issued eleven elk permits along w/topline mule-deer, black bear, mountain lion and barbary sheep hunting, and lots of turkey. A turn-key offering — everything goes.

Bailey Family Ranch, LLC. A year long cow/calf grazing unit located six miles north of Cuero in Guadalupe County, N.M., just off I-40, and 20 miles east of Santa Rosa — a trade center for this area and east 45 miles to Tucumcari, the Hub City for this quadrant in New Mexico. The Bailey Ranch consists of 7,587 deeded acres along with 1,160 New Mexico State Lease for a total of 8,747 grazing acres. This 14-section cow/calf or yearling ranch is located in some of the better grazing country in eastern New Mexico. Under normal range conditions this area receives 1416 inches of moisture a year and can support up to a 200-day growing season, at an elevation of around 4,300 ft. This ranch has an ideal habitat for deer, antelope and game birds. The design of the ranch is divided into six pastures and one trap 160+ acres of free grazing on vacant land, supported by six windmills and five surface tanks. In a fenced design seven miles long and two wide, north to south, Walker Road is an all weather county road running north along the west boundary. A basic headquarter complex with full services, a good tenant house, two-car garage and livestock working and shipping pens.

The Ranch Finder – Ronald H. Mayer P. O. Box 2391, Roswell, NM 88202 575/623-5658 • www.ranchfinder.com

agreements, but they present a real opportunity for more madein-USA products and services to make it to China,” U.S. Commerce Secretary Gary Locke said following the talks.

Mr. Locke said he hopes the meeting will set the stage for “even more impressive announcements” when Chinese President Hu Jintao meets with President Barack Obama in January.

China is especially eager to calm trade tensions with the U.S. ahead of Mr. Hu’s trip, which is expected to be the first state visit to Washington by a Chinese leader in more than a

January 15, 2011 decade and likely Mr. Hu’s final one before he hands over power to a successor in about two years.

Mr. Locke and U.S. Trade Representative Ron Kirk co-hosted the Joint Commission on Commerce and Trade, with Vice Premier Wang Qishan leading the Chinese delegation.

Mr. Wang gave only brief remarks before heading to Capitol Hill for meetings with U.S. lawmakers. The Chinese vice premier praised the “candid exchange of views.”

USDA Secretary Tom Vilsack, who also participated in the talks, said one goal before Mr. Hu’s visit is to work out some of the sanitary and procedural issues that need to be resolved to

NEVADA RANCHES and FARMS

MASON MOUNTAIN RANCH Nothern Elko County ranch with 3700 deeded acres and a small BLM permit. Great summer pasture with free water from springs, creeks and seeps. No power but land line phone.

The ranch received 1 landowner Elk Tag this year.

The irrigation reservior on Mason Creek is stocked with Red Band trout. Several useful buildings including home with gravity flow water and propane lights, water heater and refrigerator.

The ranch should run 300 pair for the season.

Price: $1,575,000.

Bottari Realty Out West Realty Network Affiliate

PAUL D. BOTTARI, BROKER www.bottarirealty.com • paul@bottarirealty.com

Ofc.: 775/752-3040 Res: 775/752-3809 • Fax: 775/752-3021

“EAGER SELLERS” P BAR RANCH: Rates at 1,350 AU’s including 900 mother cows outside year round – WINTER RANGE – 11,750 deeded acres plus BLM, 300 irrigated – background lot for calves – 3 homes – good improvements – CAN SPLIT – $6,000,000.

LYMAN RANCH: Rated at approximately 225 hd. year long – MEADOW RANCH – 850± deeded with 670± irrigated – FREE WATER – several interior pastures for easy management of cattle – over 1-1/2 MILE RIVER THRU RANCH – would make great stocker operation for about 800 hd. – modest improvements including great shipping facilities and scales – asking $1,530,000 Rae at 208/761-9553.

LINSON CREEK: 400/500 HD. WINTER (11/5 – 5/1) with less than 1/2-ton on normal years – 1,938 deeded plus BLM – great stock water – UPLAND GAME BIRDS, MULE DEER, ELK, FISHING – Washington/ Payette Counties, ID – modest improvements – $1,475,000 with SELLER FINANCE. LANDRETH: Malheur County, OR – 780 deeded acres with 180± irrigated – 1/2-MILE RIVER – quality improvements – upland game birds, water fowl, mule deer, bass ponds – PRICE REDUCED – $980,000.

FARM/FEEDLOT: 500± deeded acres with 280 irrigated row crop – CAFO at 850-1,000 hd. – good improvements – great stocker and/or dairy hfrs. – $1,580,000.

QUARTER CIRCLE DIAMOND: Gilliam County, OR – 6,148 deeded acres with 1,078 dry farm – in addition running 125 mother cows year long – includes 40% interest in potential power generation – siting for 17 TURBINES – mule deer, elk, chukar, quail – $1,750,000 Rae at 208/761-9553 Jack at 541/473-3100.

AGRILANDS Real Estate www.agrilandsrealestate.com Vale, Oregon • 541/473-3100 • jack@fmtcblue.com

restart beef exports.

“Technical talks will resume as soon as possible with the goal of reopening China’s market in early 2011,” he said.

He plans to send a team of department officials to China in early January to discuss the planned staged resumption of U.S. beef exports, which have been banned since BSE was discovered in U.S. cattle in 2003.

While China has eased those restrictions on paper, an effective ban remains in place that has kept out U.S. beef, a senior U.S. trade official told reporters after the meeting.

The U.S. also made progress in its multifront effort to make sure China’s so-called indigenous innovation policies don’t keep American firms out of the Chinese market.

In addition to pledging that its government procurement rules won’t discriminate on the basis of where the intellectual property of a product originates, China also assured that the development of standards in its lucrative wireless and smart grid markets will remain open. Infrastructure investment in 3G technology is expected to reach as much as $12 billion by 2011, while China plans to invest $10 billion a year through 2020 to build a national smart grid.

The two countries also agreed to cooperate in a range of areas to improve enforcement of intellectual-property rights in China, especially to curtail rampant software piracy that costs software makers an estimated $7.9 billion a year in lost revenue.

China recently launched a sixmonth campaign to crack down on piracy and counterfeiting, including by ensuring that government bureaus and businesses are using legitimate software.

The two countries plan to discuss early in the new year ways to verify that China is complying with its software legalization promises.

“We expect to see concrete and measurable results, including increased purchase and use of legal software,” said Mr. Kirk.

Idaho-Oregon Call 208/345-3163 for catalog.

KNIPE LAND CO. RANCHES FARMS COMMERCIAL Established 1944

January 15, 2011

“America’s Favorite Livestock Newspaper”

Sargent awarded Lawrence Grathwohl Memorial Herdsman of the Year he American Shorthorn Association (ASA) selected the Herdsman of the Year for the 2010 National Shorthorn Show held during the North American International Livestock Exposition (NAILE).

The Herdsman of the Year was honored with a trophy buckle in memory of Lawrence Grathwohl and sponsored by the Shorthorn Foundation. The award was presented during the selection of the selection of the National

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Champion Female of the 2010 show season to Jeff Sargent from Denison, Texas.

Lawrence Grathwohl was a loyal member of the American Shorthorn Association who died at the age of 41 from injuries received from a pickup truck accident. He raised livestock and farmed his entire life, however he was known for raising Shorthorn cattle which he showed all

across the country. Throughout his years he received several awards and special recognition for his show cattle, including his last champion exhibited at the 2003 North American International Livestock Expo in Louisville, Ky., WHR RT Rodeo Augustus 2111.

“The Herdsman Award is a great tribute to Lawrence’s memory. He was a competitor at heart and had the opportunity to exhibit many champions during his

Page 19

KEVIN C. REED Ranchers Serving Ranchers Texas and New Mexico

LEE, LEE & PUCKITT ASSOCIATES INC.

1002 Koenigheim, San Angelo, TX 76903 • www.llptexasranchland.com • llp@wcc.net

R.G. DAVIS, BROKER Cell: 530/949-1985

RANCH & FARM REAL ESTATE

JOE STUBBLEFIELD & ASSOCIATES 13830 Western St., Amarillo, TX 806/622-3482 • cell 806/674-2062 Drew Perez Assocs.

Nara Visa, NM • 806/392-1788

TEXAS & OKLA. FARMS & RANCHES • Magnificent 90 Hunting – Cattle/Horse Ranch 50 miles E. of Dallas, 35 miles W. of Tyler, White pipe fence along FM Hwy. 3,700 sq. ft. elaborate home, flowing waterway, lake. Has it all.

• 532-acre CATTLE & HUNTING, NE TX ranch, elaborate home, one-mile highway frontage.

OWNER FINANCE at $2,150/ac.

• 274 acres in the shadow of Dallas. Secluded lakes, trees, excellent grass. Hunting & fishing, dream home sites. $3,850/ac.

• 1,700-acre classic NE TX cattle & hunting ranch. $2,750/ac. Some mineral production.

• Texas Jewel, 7,000 ac. – 1,000 per ac., run cow to 10 ac.

• 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.

• 146 horse, hunting cattle ranch N. of Clarksville, TX. Red River Co. nice brick home, 2 barns, pipe fences, good deer, hogs, ducks, hunting priced at $395,000.

• 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, & deer hunting. Priced at $2,300 per ac.

Joe Priest Real Estate 1205 N. Hwy 175, Seagoville, TX 75159

972/287-4548 • 214/676-6973 1-800/671-4548 www.joepriest.com joepriestre@earthlink.com

Missouri Land Sales 5-acre Horse Set-up: Location-location, only 2+ miles north of Mountain Grove on Girlstown Rd. New fencing, 20x40 new 3-stall horse barn/shop/1car garage, 1,300 sq. ft. , 3-br., 2-ba. manufactured home, wrap around deck ( 2 sides), nestled down your private drive. MLS #1010102 675 Acres Grass Runway, Land your own plane: Major Price Reduction. 3 BR, 2 BA home down 1 mile private land. New 40x42 shop, 40x60 livestock barn, over 450 acres in grass. (Owner runs over 150 cow/calves, 2 springs, 20 ponds, 2 lakes, consisting of 3.5 & 2 acres. Both stocked with fish.

Excellent fencing. A must farm to see. MLS #1010371 483 Acres, Hunter Mania: Nature at her best.

Don’t miss out on this one. Live water (two creeks).

70+ acres open in bottom hayfields and upland grazing. Lots of timber (marketable and young) for the best hunting and fishing (Table Rock,Taney Como and Bull Shoals Lake) Really cute 3-bd., 1-ba stone home. Secluded yes, but easy access to Forsyth-Branson, Ozark and Springfield. Property joins Nat’l. Forest.

MLS#908571 See all my listings at: paulmcgilliard.murney.com

PAUL McGILLIARD Cell: 417/839-5096 • 1-800/743-0336

MURNEY ASSOC., REALTORS SPRINGFIELD, MO 65804

Office: 325/655-6989 Cell: 915/491-9053

continued on page twenty

Ben G. Scott, Krystal M. Nelson, Brokers 1301 Front St., Dimmitt, TX 79027 • 1-800/933-9698 day/night www.scottlandcompany.com

INTEREST RATES AS LOW AS 3%. PAYMENTS SCHEDULED ON 25 YEARS

RANCH SALES & APPRAISALS

Properties

—— TEXAS AND NEW MEXICO —— This ad is just a small sample of the properties that we currently have for sale.

Please check our website: scottlandcompany.com and give us a call!

We need your listings both large and small, all types of ag properties (ESP. RANCHES).

LONE WOLF RANCH - EASTERN, NM: Approx. 30 sections mostly deeded some BLM and State, employee housing and two sets of steel pens, county maintained, all weather road. Mild climate year round.

HARTLEY/MOORE COUNTY LINE: Corn, wheat, cotton, cattle with all the perks, 992 acres, sprinkler irrigated with some improved pasture, large brick home, large set of state of the art steel working pens with concrete feed bunks and covered working area, on pavement. House, shop and horse barn on 2 acres may be bought separately.

WAHOO RANCH:

Approximately 40,976 acres: ± 11,600 deeded, 6,984 BLM, 912 state, 40 uncontrolled and 21,440 forest. Beautiful cattle ranch located on the east slope of the Black Range Mountains north of Winston, N.M., on State Road 52. Three hours from either Albuquerque or El Paso.The ranch is bounded on the east by the Alamosa Creek Valley and on the west by the Wahoo Mountains ranging in elevation from 6,000' to 8,796'. There are 3 houses/2 cabins, 2 sets of working corrals (1 with scales) and numerous shops and outbuildings. It is very well watered with many wells, springs, dirt tanks and pipelines. The topography and vegetation is a combination of grass covered hills (primarily gramma grasses), with many cedar, piñon and live oak covered canyons as well as the forested Wahoo Mountains. There are plentiful elk and deer as well as antelope, turkey, bear, mountain lion and javelina (47 elk tags in 2010). Absolutely one of the nicest combination cattle/hunting ranches to be found in the Southwest. Price reduced to $5,500,000.

MAHONEY PARK: Just 10 miles southeast of Deming, N.M. The property consists of approx. 800 acres Deeded, 560 acres State Lease, and 900 acres BLM. This historic property is located high up in the Florida Mountains and features a park like setting, covered in deep grasses with plentiful oak and juniper covered canyons. The cattle allotment would be approx. 30 head (AUYL). Wildlife includes deer, ibex, javalina, quail and dove. This rare jewel would make a great little ranch with views and a home site second to none. Priced at $600,000.

and Equities

19855 S. Main St., P.O. Box 1020 Cottonwood, CA 96022 Ofc.: 530/347-9455 • F: 530/347-4640 homeranchr@sbcglobal.net

——— CALIFORNIA RANCHES ——— Lassen County: 11,725 acres, all deeded. 970 acres irrigated, flood and 4 pivots. Alfalfa, grain, grass. BLM permits, 500 cows, organic hay. Lots of potential for more farm ground. Priced at $5,375,000.

Tehama County, Cottonwood, Calif.: 1,850 acres, winter range. Large barn, 1 bdrm. apt., horse stalls, tie stalls, tack room, shop. Deluxe 400x200 ft. roping arena.

All new fences and steel corrals. Hunting and fishing. Priced at $2,200,000.

Tehama County, Cottonwood, Calif.: 556 acres, winter range, two small houses, corrals, chute, small barn. Good hunting and fishing. Price reduced — $775,000.

Tehama County, Cottonwood, Calif.: 80 acres, winter range and a custom built appx. 3,000 sq. ft. beautiful home. Large barn, tack room, shop roping arena, round-pen — a real crown jewel. Many amenities. A roper’s dream. Priced at $1,400,000.

SAN JUAN RANCH: Located 15 miles south of Deming, N.M. east of Highway 11 (Columbus Highway) on CR-11.

Approximately 24,064 acres consisting of approximately 2684 acres Deeded, 3240 State Lease, 13,460 BLM, and 4,680 uncontrolled. The cattle allotment would be approx. 183 head (AUYL). There are 6 solar powered stock wells with metal storage tanks and approximately 6-1/2 miles pipeline. The ranch has a very diverse landscape consisting of high mountain peaks, deep juniper & oak covered canyons, mountain foothills and desert grasslands. There is plentiful wildlife including deer, ibex, javalina, quail and dove. A truly great buy at $600,000.

212 ACRE FARM BETWEEN LAS CRUCES, N.M. AND EL PASO, TEXAS: Hwy. 28 frontage with 132 acres irrigated, 80 acres sandhills, full EBID (surface water) plus a supplemental irrigation well, cement ditches and large equipment warehouse. Priced at $1,868,000.

50.47-ACRE FARM: Located on Afton Road south of La Mesa, NM. Paved road frontage, full EBID (surface water) plus a supplemental irrigation well with cement ditches.

Priced at $13,000/acre ($660,400).

±37-ACRE FARM – WEST

OF ANTHONY, N.M.: Located 20 minutes from Sunland Park Race Track on Haasville Road (paved) just north of Gadsden High School and west of Highway 28. EBID, irrigation well and cement ditches. Beautiful farm with many possibilities. Call for aerial and location maps. Sign on property. Priced at $13,900/acre ($514,300).

SOLD

OTHER FARMS FOR SALE: In Doña Ana County. All located near Las Cruces, N.M. 8, 11, and 27.5 acres. $15,000/acre to $17,000/acre. All have EBID (surface water rights from the Rio Grande River) and several have supplemental irrigation wells. If you are interested in farm land in Doña Ana County, or ranches in Southwest New Mexico, give me a call.

DAN DELANEY R E A L E S TAT E , L L C www.zianet.com/nmlandman

318 W. Amador Ave. Las Cruces, N.M. 88005 (O) 575/647-5041 (C) 575/644-0776 nmlandman@zianet.com

Livestock Market Digest

Page 20

ASA Awards Presented he American Shorthorn Association (ASA) 2010 annual awards presentation was held during the 2010 North American International Livestock Exposition (NAILE) in Louisville, Ky. Award winners were announced throughout the National Bull and Female show in recognition of accomplishments in the Shorthorn breed.

The All-American awards were announced during each division drive. To receive the distinction of an All-American, animals are exhibited throughout a show season at the designated PACE (Point Accumulation Event) Shows. Winners are

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selected through a point tally process based on points earned at the designated Major and Invitational PACE shows. Point amounts are based on the type of show and the number of head exhibited. Animals are named as an All-American based on the specific age classifications of the PACE Program. The top accumulating female and bull of all the age divisions is then named as the “Show Female/Bull of the Year.”

Accumulating the most points for Show Bull of the Year was LBB Sonny California 07 ET, owned by Brooke Bennett, Ducor, Calif. and Tri-Star Cattle, San Luis Obispo, Calif.

January 15, 2011

2010 ASA Sire of the Year

2010 ASA Dam of the Year

First Place: 7,665 points

First Place – 1,660 points

CF Solution X ET, owned by Cates Farms and Sullivan Cattle Company, Dunlap, Iowa

Second Place – 6,540 points HD Bloodstone 603 ET, owned

by Tyler Hahn, Watseka, Ill.; WHR Shorthorns and Cates Farms

Third Place – 5,710 points WHR Sonny 8114 ET, owned by WHR Shorthorns and Schrag Shorthorn Farms

Fourth Place – 4,360 points SULL GNCC Salute 532R ET, owned by Sullivan Cattle Co., “S” Co Shorthorn Farms, and The Bollum Family

Fifth Place – 3,550 points CF Trump X, owned by Cates Farms, WHR Shorthorns and Jim Cooper

NPS Desert Rose 004, owned by Tyler Hahn

Second Place – 1,445 points CF Myrtle Bo 46 TP X, owned

by James Sullivan, Dunlap, Iowa

Third Place – 1,435 points K-Kim MP Mona Lisa 34P, owned by James Sullivan

Fourth Place – 1,195 points WHR Jazz Demi Delight 2R58, owned by Stover Cattle Company, Robinett Family Cattle and Randy Blood

Fifth Place – 1,125 points SGK Call Girl ET, and Kolby Berg

Centuries Club is a way to recognize those members of the association that register over 100 head in a given year. The following were recognized between the

National Bull and National Female Show.

2010 Century Club Winners Sullivan Cattle Co., Dunlap, Iowa; Waukaru Farms, Inc. Rensselaer, Ind.; WHR Shorthorns, Van Alstyne, Texas; T Bar T Shorthorns, Wolfforth, Texas; Shorthorn Farm, Jungels Kathryn, N.D.; Byland, Loudonville, Ohio; Loving Polled Shorthorns, Pawnee Rock, Kan.; Sneed Shorthorns, Sedalia, Mo.; Cal-Dak Shorthorns, White River, S.D.; Keith H. Lauer, Abilene, Kan.; Warner Ranch Shorthorns, LLC., Riverton, Wyo.

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career. He really valued the Shorthorn friends he made over the years traveling to shows across the country,” says Nancy (Grathwohl) Heter, niece of Lawrence.

Jeff Sargent, better known in the industry as “Sarge,” has been assisting WHR Shorthorns in Van Alstyne, Texas, owned by Bill and Becky Rasor, since the early 1990s and has been fulltime with the show and sale cattle for the last eight years.

“He has presented our cattle in a professional manner and developed a good relationship with the many customers he has assisted. He takes special pride working with beginning Shorthorn enthusiasts. His dedication during the preparations for our annual sale and also during the sale week is highly commendable,” comments Mr. Rasor.

The Lawrence Grathwohl Memorial Herdsman of the Year will continue to be selected during the National Shorthorn Show. The 2011 herdsman will be chosen during the 2012 National Western Stock Show in Denver, Co.

Bennett

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