LMD October 2019

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

– JAMES RUSSELL LOWELL

October 15, 2019 • www.aaalivestock.com

Volume 61 • No. 9

The Check’s in the Mail

BY LEE PITTS

W

hy do bad things happen to such good people?

Dwayne Mays and Scott Van Winkle, owners of Ogallala Livestock Market in Ogallala, Nebraska, are two of the nicest and most honorable men I’ve ever met. Their auction market, previously owned by Jerry Speck and family became one of the finest auction markets in the country. When Jerry decided to retire he sold it to the two men he’d been grooming to take his place and Dwayne and Scott have not disappointed.

Their reputation in the industry is solid gold.

In the Fall of 2015 they had an “incident” with cattle dealer Charles “Chuck” Leonard who had been doing business with the market since the 1970’s.

Chuck’s family had been trading cattle since Chuck’s forefathers “walked the bricks” at the old terminal markets. Dwayne and Scott had a great deal of confidence in their friend Chuck and his checks always cleared.

Everyone in the midwest marketing sector knows Chuck Leonard. He’s a larger than life storyteller and was always the life of the party in cow town bars from Winnemucca to Torrington. He’d have been the last guy I’d have suspected of cheating Dwayne and Scott.

But then, it seems like it’s always the guys you’d least suspect.

OUCH!

NEWSPAPER PRIORITY HANDLING

Dwayne and Scott had three transactions with Chuck during a short period in the Fall of 2015, one on video cattle, another through their auction market, and a trade on a set of country cattle. The total came

There is no better place to heal a broken heart than on the back of a horse. to three million dollars with the country dealer trade accounting for a million of that. You can imagine the reaction in the offices of the Ogallala Livestock Market when their banker called and told them there were insufficient funds to cover the checks.

How could this be, wondered Dwayne. He called Chuck who said he was working with his banker and they’d work things out and that Dwayne and Scott should just send the checks back through the bank. They did so and this time when the bank called they said all of Chuck’s accounts had been swept clean and the accounts closed. Keep in mind that the cattle Chuck had purchased with the money had been moved into feedyards who paid Chuck Leonard for those cattle in good faith. The Ogallala Livestock Market became the totally unpaid seller!

“WOW!,” said Dwayne. “It was devastation. I’d never experienced anything like it before.”

Meantime, according to Packer and Stockyard Act the custodial account at the market had to be balanced within seven days.

In other words, Dwayne and Scott had to come up with the missing three million or be shut down. It’s a good thing they had a good working relationship with their banker because the P&S was in their office nearly every day checking to make sure the custodial account was brought in balance. “Believe me,” said Dwayne, “you get to know all the people in the P&S real quick and are on a first name basis with them.”

Later a USDA Agricultural Marketing Service investigation found that Chuck had failed to pay $4.7 million and issued insufficient funds checks for $5.8 million in livestock purchases.

The investigation also revealed

that Leonard operated while insolvent. Leonard’s insolvency ranged from $1.2 million on Aug. 31, 2015, to $3.3 million on Oct. 19, 2015. Unpaid sellers filed on the dealer’s GIPSA bond and received less than 5 cents on the dollar. For Ogallala, this meant Leonard’s bond covered $140,000 of the $2.9 million owed.

Going Postal This debacle followed on the heels of the spectacular crash of Eastern Livestock, the largest livestock dealer in the country.

In 2010, Eastern Livestock was forced into bankruptcy, owing approximately $112 million to creditors, including hundreds of livestock producers, dealers, and markets.

Eastern was in the business of buying cattle at auction and in the country and then combining them to offer larger lots of cattle to cattle feeders who liked to buy in big bunches, not onesies and twosies. Eastern had operating branch facilities in eleven states. For his role in the crime owner Tommy Gibson, of Lanesville, Indiana, age 73, was sentenced to 70 months in federal prison, followed by two years of supervised release. His accomplice in the multi-million dollar continued on page two

Forbidden: The Curious Case of an Agriculture Loan Denied

BY CHRIS BENNETT / DROVERS JOURNAL

R

hoda Rein was stunned by the bank’s decision—agriculture loan denied. The 25year U.S. Bank customer, anticipating approval on a $27,000 operating loan, listened in disbelief as a bank representative cited the rationale behind Rein’s denial: animal reproduction is forbidden.

Is animal reproduction an activity deemed ineligible for a bank loan? Yes, in Rein’s case, and the rejection was triggered specifically due to her operation’s involvement in horse breeding. The details of Rein’s loan denial may draw concern from livestock producers across the United States, particularly due to the explicit language in bank documents delineating Rein’s rejection, and the seemingly contradictory explanations offered by U.S. Bank.

Not Appropriate?

Twenty minutes east of Denver, alongside her husband, Darren Miller, Rein runs a 46-stall horse training and breeding business on 40 acres—Darren Miller Stables, Inc. Rein, 53, and Miller, 57, were instrumental in founding the Colorado Reined Cowhorse Association (CRCA), and have served on the board of directors for the RMQHA, RMRHA and NRCHA. Miller is an AQHA, NRCHA and

NSHA judge.

Since the mid-1990s, Rein has been a client of U.S. Bank at the Hampden Crossing branch, obtaining business loans on a consistent basis.

In 2003, she opened a line of credit (cash flow manager) attached to Darren Miller Stables, revolving at a roughly 8 percent interest rate.

In 2018, the interest rate steadily rose, climbing to 11.25 percent by April 2019. Alarmed, Rein consulted with Tracey Romero, her U.S. Bank representative, regarding a rate decrease.

Boiled down, Rein chose to apply for a brand new loan of $27,000: Wipe the slate clean and start over with a lower interest rate. According to Rein, the NAICS code 112920 (equine production) was used in the loan application.

However, when the paperwork came back, the loan was denied. The initial application was turned down April 21; an appeal was turned down April 24. Do not pass go. No loan, period.

On May 1, U.S. Bank sent Rein an explanatory letter: “After careful review of your application, we are unable to extend credit to you at this time for the following reasons: Product is not considered appropriate for this industry.”

Rein visited the Hampden Crossing branch to get an explanation on May 8. “I couldn’t believe it and Tracey also seemed shocked,” Rein continued on page four

by LEE PITTS

A Day Is A Life-time

I

’m 67 years old and thought I was a goner at 40. The Doctors thought so too. If you’d have offered me a deal back then that I could live to be only 45 years old I’d have taken the deal in a heartbeat. The thought of living to be 67 was crazy.

I’ve looked death square in the face many times in my life, have been opened up and carved on from the Mayo clinic to local quacks and have suffered two significant strokes. After this last one there were days I thought I didn’t have 24 hours to live. I see doctors on a weekly basis, it takes 11 different prescriptions to keep me alive, I haven’t been able to eat normally for 27 years, have to sleep in a chair, can’t drive or travel 20 miles from home without getting pancreatitis, and I’m in constant pain.

And I think I’m the luckiest guy in the world!

I’m one tough son of a gun and people who know my story often ask how I do it. I always reply, “One day at a time,” If you break it down into its smallest parts you’ll realize that a day is a very long time indeed: 24 hours, 1440 minutes or 86,400 seconds. If a hug with my beautiful wife lasts 5 seconds that means I could hug her 17,280 times in a day, although I doubt she’d let me.

In a single day do you know how many dogs you could pet, how many times you could smile at the cat and how many times you could tell your spouse or kids that you love them?

How long does it take to enjoy a sunup or a sundown, to play peek-a-boo with a baby or spend a few minutes in quiet reflection enjoying your aloneness while digging in the dirt, the potting soil of life.(Hard work is the fertilizer.)

It only takes a few minutes to romp in the rain, read good writing, sing old songs off key at the top of your lungs while dancing as if no one is watching, relax in a rocking chair on the front porch and wave to everyone who passes by, ride a bicycle into the wind, fly a kite, sail a boat, play checkers with a youngster and let them win, or shovel the snow off the front walk of an elderly person and then enjoy a hot cup of cocoa with them after-

continued on page four

Page 2

Livestock Market Digest

October 15, 2019

CHECK

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check kiting scheme and his former Chief Operating Officer Michael Steven McDonald, age 61, was sentenced to 57 months in federal prison, followed by two years of supervised release. Neither one was eligible for early parole.

According to a plea agreement, “Between August 9, 2004, and November 2, 2010, Gibson and McDonald, engaged in an extensive check-kiting fraud in order to induce Fifth Third Bank to release funds from a $32 million line of credit issued by the bank in favor of Eastern Livestock. The check-kiting scheme caused grossly inflated balances in accounts maintained by Eastern Livestock with the bank. To further support the fraudulent scheme, the defendants caused false and fraudulent documents to be submitted on a daily basis to Fifth Third, which contained grossly inflated accounts receivable figures. The U.S. mail and/ or commercial interstate carrier service was used in the execution of the scheme.” (That’s why it was a federal crime.)

“Gibson and McDonald caused widespread damage to the livestock industry and devastating harm to numerous individual cattle farmers. Many other businesses associated with the livestock industry were also damaged by the Eastern Livestock fraud.”

The Last In Line Following the Eastern debacle the Livestock Marketing Association (LMA) went on a cross-country listening tour in 2015 to hear from its members and it turned out that their biggest worry was dealer payment default and the lack of financial recovery for sellers.

The solution that the LMA and the USDA came up with is something called a Dealer Statutory Trust and the USDA is currently engaged in a feasibility study on enacting one.

Dwayne Mays says that if such a trust was in existence he and his business partner would not be in the difficult position they are in. In theory, if a dealer trust had been in place during the Eastern wreck livestock sellers would be first in line as unpaid sellers, not the last in line.

According to the LMA, “The Dealer Trust would be a trust. It would not be a lien, a bailment, a payment protection plan, an alternative to bonds, or anything else; it would be a trust.

A Dealer Trust would not have a cost to administer or participation fees. There would be no pool of funds, so no federal or industry funding is required.

“The Dealer Trust is modeled after the long-functioning and effective Packer Statutory Trust. The Packer Statutory Trust was enacted by Congress in 1976 to provide better protection to sellers in the event of a packer payment default.

P&S data shows that from 2009 through 2016 there were $26,488,265 in valid claims made against defaulting packers. In these situations, bonds provided only $944,643, or 3.5% of the total valid claims.

The Packer Statutory Trust provided an additional recovery of $10,622,953.”

Not perfect by any means, as even with the packer trust only 44% of the missing funds were recovered. But 44% is still better than 3.5%.

continued from page one

The Farm Bill included a provision for the USDA to conduct the feasibility study on creating a Dealer Statutory Trust. This study is due back to Congress in December 2019.

Pennies On The Dollar Veteran auction operator Skinner Hardy told this reporter 40 years ago of the loophole that dealers can sneak through and it has still not been fixed now four decades later.

According to the LMA, “When producers sell to packers, they can look to both the bond and the statutory trust to help ensure payment. When producers sell at markets, they can look to both the bond and a custodial account to help ensure payment. Markets are required to pay sellers even if the buyer does not pay the market.

When a producer sells directly (not through a market), the producer bears the risk of payment default. When producers sell to dealers and the dealer fails to pay, they can only look to a bond to help ensure payment. Sales to dealers lack this second layer of payment protection.”

So what about the bonds the P&S requires livestock dealers to carry, aren’t they sufficient protection for sellers? It turns out that bond is like putting a tiny bandaid on an amputated appendage. The LMA says, “The minimum bond for dealers is $10,000. The largest dealer bonds are about $700,000. Bond size is based on a formula determined by volume of business. It is calculated by looking at historical data. Between 2009 and 2016, P&S data shows $39,110,132 in valid bond claims against forty registered dealers. Recovery from those dealers’ bonds as of September 30, 2016 was $279,832.” Historical data that says the average dealer bond claim recovers just 5–15 cents on the dollar.

“Bonds would have to increase tenfold before they would be large enough to garner near full recovery in most cases. The cost of larger bonds could push some dealers out of business if the bond amounts were significantly increased,” admits the LMA.

Making It Worse Count on the banks to make a bad situation even worse.

When a defaulting dealer tries to save his hide by going into bankruptcy there is a very real risk of something called a “preferential transfer claim” kicking in. The bank, or other lender, can demand any rancher who already got paid for his cattle from the dealer to give up those sale proceeds if the sale of those cattle fell during the 90 days prior to the bankruptcy filing. This is so the the bank can share those funds with other creditors. But the bad news gets even worse. Often the rancher or seller of the livestock has to engage in costly litigation over funds already long spent.

The LMA contends that, “If a Dealer Trust were added to the P&S Act, previous payments from the now-bankrupt dealer made to sellers would be considered trust funds and not eligible to be pulled into bankcontinued on page three

October 15, 2019

Livestock Market Digest

Page 3

CHECK

continued from page two

ruptcy proceedings through a preferential transfer claim.”

But wait, getting paid gets even more complicated. The P&S Act requires prompt payment from packers, auction markets AND dealers purchasing livestock. “Prompt payment” is defined as payment before the close of the next business day following the purchase of livestock. That may be the law but ask any auction market operator and they’ll tell you that still the most common form of settlement is a check sent through the mail.

And with the U.S. Post Office being so busy delivering Amazon packages these days, that check might not arrive for a week. In the meantime those cattle could already have been sold by a dealer to a feedlot or packer who paid for them in good faith. So now who owns

the cattle?

According to the LMA, “If a dealer takes delivery of a seller’s livestock and fails to pay (either because the dealer’s check is returned unpaid or the dealer never sends a check), under current law, not much can be done to recover the livestock or the funds from those livestock.”

A Voice of Dissent There were insignificant efforts to create a Dealer Statuary Trust back in the 1990s and early 2000’s but they went nowhere. But after Eastern’s demise the LMA got very serious and In February 2016 LMA’s Board of Directors supported the creation of a Dealer Statutory Trust. Ballots were sent to all LMA members and in the final analysis there were 235 yes votes in favor and 3 no votes. In addition to the LMA the idea

of a Dealer Statuary Trust is supported by American Farm Bureau Federation, American Sheep Industry Association, National Cattlemen’s Beef Association, and United States Cattlemen’s Association. But there is one group, Texas Livestock Marketing Association, which represents 95 livestock auction markets representing over 100,000 producers that’s NOT in favor of a Dealer Statuary Trust.

Donald Ward, Director of Governmental affairs for the Texas Livestock Marketing Association, says, “The idea is being sold as creating a trust that would increase unpaid seller recovery in case of a dealer default without significant change to credit availability for dealers.

The facts don’t support those claims.

“Fact #1: Producer groups

are convinced that this type of trust would have a negative impact on market prices for all livestock by reducing the buying capacity of dealers.

Fact #2: The Packers Trust that is the model for this proposed dealer trust has recently proven ineffective in helping unpaid sellers. In 2016 some south Texas cattle feeders complained to the USDA about slow payments from Sam Kane Processing but nothing significant was done. Earlier this year Kane Processing declared bankruptcy. It appears that the Packers Trust provided a false sense of security that let the situation continue for almost three years.

Fact #3: Producers who sell at a livestock auction market are protected by USDA rules.

Every livestock market is required to have both a bond

and a custodial account with enough cash to cover an average sale. This guarantees the seller is paid promptly and the check will clear the bank.

Fact #4: Payment protection insurance is already being sold by at least two companies and has proven to be both effective and affordable. We all buy insurance to protect from losses, so payment protection insurance seems a better solution than creating more federal bureaucracy.”

While there may be some disagreement as to what exactly is the best fix, I think we can all agree it’s long past the time to do something about this dealer loophole big enough to drive a cattle truck through.

Just ask Dwayne Mays, Scott Van Winkle and all those who lost lots of money in Eastern’s big blowup.

From the Livestock Marketing Association (Some names were changed to protect the guilty.)

“A dealer, we’ll call him David, has a $50,000 bond. He has some personal assets and some cash, but his livestock purchases are financed by a bank. The bank has a security interest in “all livestock hereafter acquired” by David as well as some trucks, equipment, etc. David has been doing business with the same producers and livestock markets in his area for many years and always pays for livestock, but sometimes takes a few days or even a week to get a check to the sellers.

Adam is a cow/calf producer who markets his cattle privately. He has had good luck selling cattle to David for the last two Falls. He sells $50,000 worth of feeder calves to David on September 1 and gets a good check from David on September 5. He cashes the check and pays off the note on a portion of his cow herd.

On Monday, October 1, David the dealer buys $50,000 worth of feeder calves through Acme Livestock Market. After the sale, he tells the folks in the office he is going to mail a check tomorrow (in compliance with prompt payment rules). David does indeed mail the check on Tuesday, October 2.

On Wednesday, October 3, David the dealer buys $50,000 worth of feeder calves from Bill, another dealer, and again indicates that he’ll mail a check the next day, which he does. Also,

on Wednesday, October 3, Clarence the producer sells David the dealer $50,000 worth of feeder calves privately. David leaves a check with Clarence who plans to cash it the next time he gets to town, which will be in a couple days.

David the dealer takes all the cattle he bought this week (a total of $150,000 worth of calves) to Sigma Feeders, the local feedyard on Thursday.

Sigma writes him a good check for $150,000 (not accounting for markup etc.) and David immediately deposits the funds into his bank account.

In the meantime, David’s banker becomes concerned about David’s financial situation. She knows David’s other businesses have taken huge losses due to poor investing and David’s messy divorce has stripped him of many of his assets.

The banker decides to cut off David’s line of credit and take advantage of her priority position in “all livestock hereafter acquired.” Because of her secured position at the front of the line, she is able to clean out all of David’s bank accounts, including the $150,000 from Sigma Feeders for the livestock David purchased this week, but had not yet paid for.

Acme Livestock Market, Bill the dealer, and Clarence the producer all receive their checks from David and attempt to cash them on Friday. By

the middle of the following week, all three receive notice that the checks are being returned unpaid because there are insufficient funds in David’s bank account.

Under current law, without a Dealer Trust, the bank ends up with $150,000 in cash from the cattle sold to Sigma Feeders, any other livestock David had on hand, and some equipment, trucks, etc.

Acme Livestock Market, Bill the dealer, and Clarence the producer are not entitled to the $150,000 paid by Sigma Feeders for the cattle they raised/ sold and cannot repossess those cattle. This is because Sigma Feeders takes them free of a security interest and gains good title as a buyer in the ordinary course of business and a good faith purchaser for value. The only real recourse these unpaid sellers have is to file on David’s bond. If the bond pays out the full $50,000, they will each get a pro-rata share of the $50,000 bond. In the best situation, that leaves Acme, Bill, and Clarence each short $33,334. However, if a Dealer Trust were in existence, David’s bank would stand behind Acme, Bill, and Clarence as unpaid cash sellers of livestock. The $150,000 Sigma Feeders paid to David would be trust funds held for the benefit of Acme, Bill, and Clarence. Thus, Acme, Bill, and Clarence would have the first right to the $150,000 paid to

David by Sigma Feeders. These folks would also be able to file on David’s bond. Any money left over would be paid to David’s secured creditor, the bank. David’s bank would still stand first in line for any cattle David had on hand that were already paid for, proceeds/receivables from cattle sold and already paid for, and any equipment, trucks, etc. that fell under a perfected security agreement between the bank and David.

Remember Adam? He is the producer who sold cattle directly to David back in September and got a good check that cleared the bank and he turned around and used those funds to pay off a note on his cows. Well, David ultimately declared bankruptcy at the end of October. Now, the bankruptcy trustee, through the power of the doctrine of “preferential transfer” has come back to Adam and demanded he reimburse the bankruptcy trustee the full amount of $50,000 David paid to Adam for cattle back in September.

If a Dealer Trust were in existence, the funds used to pay Adam would have been trust funds, which cannot be subject to a preferential transfer claim and Adam would not have had to spend time, legal fees, and stress fighting the bankruptcy trustee to keep the money he was paid.”

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Livestock Market Digest

October 15, 2019

FORBIDDEN recalls. “I went into Tracey’s office and she said we’d been denied because we engaged in animal reproduction. She had already appealed because it was an existing line of credit with a big history. We’d been there almost 30 years, but even the appeal was denied.”

Erik Venning, Hampden Crossing branch manager, was also present, according to Rein.

“Erik walked in and spoke with us, and listened while Tracey read off of a piece of paper out loud: ‘It says the reason you’re denied has something to do with animal reproduction.’”

Seated on the opposite side of the desk, Rein could not make out the text on the paper.

“I asked them for a copy of the paper, but Tracey said, ‘I can’t give it to you; it’s an internal document.’ I was allowed to listen to the text, but not allowed to read what was on the paper.

Still today, I’ve never seen the document.”

Significantly, Darren Miller Stables’ income was derived almost entirely from horse training, Rein explains. “I could prove to U.S. Bank that only 10 percent of our income was from animal reproduction, and Tracey told me when she appealed the underwriter’s decision, she told them that, but that U.S. Bank had a list of internal businesses it didn’t support. The underwriter didn’t have a problem with horse training, but an issue with animal reproduction. Seriously?”

A Prohibited Industry In past years, Rein typically used the $27,000 for hay and equipment purchases or to provide a bit of cushion when a giv-

continued from page one

en client made a late payment.

Significantly, when the interest rate reached 11.25 percent, Rein paid off the loan in full on March 26, 2019 (a $21,570 payment)—several weeks prior to applying for the new loan. Her reapplication involved no carryover because the loan had a zero balance.

“I was a customer in good standing, but when we were in the bank office going over the denial, Tracey said, ‘U.S. Bank has the right to decide who it does business with, even if the people are engaged in a legal activity.’ Does that mean because we breed horses we’re not worthy of a loan, or we’re involved in inhumane activity? Our credit score is in the 800s and you would think we would be the customers the bank would be looking for,” Rein says.

Two days later, on May 10, her dismay turned to confusion.

In a phone call, Venning announced approval of her loan at 10 percent, according to Rein.

Ironically, the rate, which she considered high, had spurred her initial reapplication of the entire process. “Erik said they’d discussed everything with upper level management, realized the denial was a mistake, and offered me a new loan. But high interest is why I complained in the very beginning. They had approved the loan, but with a 10 percent rate? He told me the offer was firm, but that if I could find something better to bring it in and they’d take a look. It was like price-matching at Walmart and it made things seem even crazier.”

Rein filed complaints with the Office of the Comptroller of the Currency (OCC, May

22), Federal Deposit Insurance Corporation (FDIC, May 22), and the Consumer Protection Financial Bureau (CPFB, May 31).

In regard to the OCC filing, U.S. Bank sent Rein another letter on June 6, from Michelle Nickerson, small business lending services, clearly stating the base reason for Rein’s initial loan denial: “Unfortunately, there are some industries that for various reasons U.S. Bank does not provide credit to. Our records confirm when the application was submitted, the industry code used reflected that of horse breeding, which is a prohibited industry under our credit policy.”

However, when asked by Farm Journal about Rein’s loan denial, U.S. Bank officials say the “horse breeding” explanation was in error, and contend uncertainty over how the denial occurred. “It was incorrectly referenced in the letter and our policy does not prohibit horse breeding,” states Cheryl Leamon, U.S. Bank Public Affairs & Communications.

The OCC responded to Rein’s filing on June 6, noting the issues had been “appropriately addressed,” but the OCC was apparently also under the impression that “horse breeding” was prohibited for loan eligibility by U.S. Bank: “The bank confirmed your application was denied on April 21st and the appeal was denied on April 24th because the product was not considered appropriate for their industry per their credit policy. The bank advised when the credit policy was submitted, the industry code used reflected that of horse breeding, which is a prohibited industry under their credit policy.”

The OCC response also mirrors Rein’s assertion that her eventual loan approval was due to involvement with horse training at Darren Miller Stables, and not horse breeding.

Essentially, horse training was the parachute enabling Rein to receive loan approval. On May 10, according to the OCC, Venning and Romero appealed the loan application for a second time, providing clarification of Rein’s income stream related to “the exact nature of the business. After review, the industry code (NAICS) was updated to accurately reflect the majority of your business as horse training and the application was approved. The bank apologized for any frustration the matter caused.”

Yet, approval of the loan based on a horse training code

carries a heavy dose of irony, because Rein estimates 75 percent of the horses Darren trains were bred at Darren Miller Stables, and either raised on-site, or raised to training age by clients—creating a heavy amount of commingling between the two income sources of breeding and training. “Changing the NAICS code from breeding to training is a flimsy excuse,” Rein asserts. “Bottom line to me, U.S. Bank officials saw ‘trouble ahead’ and changed the code to make the loan go through.”

In a June 11 letter addressed to Darren Miller, from Lisa Briggs, senior customer care specialist, U.S. Bank responded to Rein’s filing with the CFPB, and cited “several factors” involved in the subsequent loan approval, including proper coding, but did not offer explanation as to first cause: “We were able to confirm, when the request for credit was initially denied, the branch manager, as outlined in your correspondence, escalated the denial to the district manager, who then escalated the application to a small business underwriting manager. Based on several factors, as stated previously to the OCC, including proper coding corresponding to the majority of your business and a strong relationship with the bank; underwriting was able to approve the appeal.”

Contradictions & Codes Clear as mud? How did improper coding set off alarm bells for an activity—horse breeding—that is, and was, according to U.S. Bank, never prohibited from the start? Ashley Arrington believes U.S. Bank’s explanation is incomplete. “It’s just my opinion, but animal reproduction must have been prohibited at some point, otherwise the code wouldn’t have triggered a kickout.”

Arrington, an agricultural analyst and risk management consultant, is the founder of AgriAuthority, an agricultural consulting company providing services in asset acquisition, business valuation, and growth consulting.

U.S. Bank’s correspondence to Rein on May 1 and June 6, moves from the general to the specific, Arrington says. “The May 1 letter states the ‘product was not appropriate for the industry’ and that could potentially make sense for a lot of reasons—but the June 6 letter contradicts that. The June 6 letter gets really specific and says there are some industries that U.S. Bank does not provide credit to, and moves away from the possibility that the wrong product was requested. It’s the June 6 letter

RIDING HERD wards? You could do all that in a single day and still have plenty of time left over to honor an old soul at the rest home with reflections of days gone by.

Really, how long does it take to put in a few jigsaw pieces with your mother, watch your grandkid’s ballgame or dance recital, enjoy a barbecued steak and homemade ice cream with the neighbors, or plant a tree that will provide shade for others long after you’re gone?

One of the biggest lessons I’ve learned during my difficult journey is that life is still worth living even if you’re not destined for greatness. So slow down, get

that pops out to me because it goes into detail about horse breeding.”

Was the kick-out an error?

“It may have been an error as far as someone putting in the wrong NAICS code, but it had to have been a prohibited industry in order for that code to kick out,” Arrington explains. “It sure looks like the NAICS code for horse breeding triggered an auto-kick as a prohibited practice.

That is U.S. Bank’s business, but at some point, horse breeding or animal reproduction looks like it was prohibited. It appears U.S. Bank went right back in, put in a code for horse training, and suddenly the approval came through.

Jay Todd, executive vice president of Peoples State Bank, an agricultural bank with 11 branches across Kansas, says the details of Rein’s loan denial “make little sense.”

“Involvement in horse breeding doesn’t sound like anything that bankers use to deny loans.

I can’t speak for U.S. Bank, but I’ve never heard of anything like this. At the bank I work for, we’re going to run out of customers pretty quick if we’re not involved in animal reproduction.

That would be pretty shortsighted on an ag portfolio.”

According to Cortney Cowley, an economist in the Regional Affairs Department of the Federal Reserve Bank of Kansas City, new farm operating loan denials have dipped a bit in the Tenth District: Colorado, Kansas, the western third of Missouri, Nebraska, the northern half of New Mexico, Oklahoma, and Wyoming. The Tenth District Ag Credit Survey collated data from approximately 200 lenders, and asked how many agriculture loans in the first quarter of 2019 were denied due to customer cash flow shortages. “For 2019, the average rate of denial was 7.5 percent, and specifically, the mountain states (Colorado) were at 6.6 percent—down from a high of just over eight percent in 2018,” Cowley explains. “We know the percent of loans denied specifically due to cash flow shortages, but we don’t have or know the number of denials based on bank policy.”

As for Rein, she believes U.S. Bank’s actions do not match its subsequent explanation. “I’d like to know why they really changed their minds. I’d like to know exactly what those internal documents say about animal reproduction. I’d like to know how horse breeding gets tagged as a prohibited activity, triggers some kind of code alarm, and then is explained away as an error,” Rein adds. “I’d like to know who else this might have happened to.” continued from page one

out of the fast lane and back to nature because the enjoyment is in the journey, not the destination. I just spent two minutes watching a covey of baby quail try to follow their mother up a curb next to the sidewalk and I laughed myself silly.

I’ve read there are some species of butterflies that only live for one day and just think of the beauty they bring into this world. So when I’m lucky enough to wake up in the morning, no matter how bad I feel, I vow to be a butterfly that day. I have no time to waste on poor pitiful me. I don’t waste my valuable seconds dreaming of

October 15, 2019

Livestock Market Digest

Page 5

Best Sidearms For Hunters SOURCE: THE ELITE HUNTER

D

uring Labor Day 2014, Washington State bow hunter Jerry Hause was attacked by a black bear during a hunting trip. His only defense was a well-aimed kick and a fast climb up a tree, but the bear still scratched and punctured his leg before he scared it away. In the future, Hause has a better plan to protect himself – a sidearm.

Handguns allow hunters to prepare for the worst, including bad people and dangerous four-legged predators, like rabid coyotes and the aforementioned black bear. Sidearms can also work as viable substitutes for larger hunting rifles. When choosing a sidearm, it’s important to consider the following: • The gun should be chambered in a cartridge powerful enough to do the required job.

• It should have good sights and a good trigger.

• It should place a bullet with precision out to a reasonable range (e.g. 25+ yards).

• It should be comfortable and easy to carry.

You should also think about your personal preferences, the weather, and the types of

ISA Bull Sale

I

sa Beefmasters, LLC’s 58th Beefmaster bull sale was held October 5th in San Angelo, Texas. It was an excellent sale; with 41 buyers from 9 states and Mexico taking home 131 Beefmaster bulls at an average of $4782. Isa’s President, Lorenzo Lasater, stated the sale was strong, with excellent demand for good Beefmaster genetics even in a down market. Auctioneer Joe Goggins of Billings, MT sold the 131 bulls in the blistering time of 1 hour, 40 minutes.

The high-selling bull, San Pedro 7069, sold to Michael Deville of Louisiana for

threats you expect to encounter.

For sidearm options that are light but accurate, consider the Smith & Wesson Shield in .40 or the .45 ACP – they’re both light enough for easy carry but still pack a big punch. The Remington R1 Long Slide 1911 is a bigger handgun with a long sight radius. It’s ideal for times when you’ve left your rifle behind. The Ruger Blackhawk in .45 Colt is a large revolver that doubles as a hunting firearm as well.

Also, .22 rimfire models like the Browning Buck and Taurus Model 94 are smaller, easier to handle, and more accurate for less experienced hunters. And many varieties of the .38 Special (1.5-inch stainless S&W, S&W 3-inch service revolver, 2-inch Taurus Ultra-Lite) also get the job done.

In Bear Country, you’ll need more power.

The .44 Remington Magnum and the MagNa-Port/Freedom Arms Model 83 single-action revolver in .454 Casull can take on the hefty creatures.

And the Smith and Wesson N-Frame revolver (with 5-inch barrels) is a great dual purpose sidearm for both hunting and self-defense.

There are many options to choose from, and every hunter’s needs may vary. But one thing is clear – every hunter needs to protect himself, and a sidearm is the best way to do so.

$27,500. This awesome young herd sire prospect is the son of L Bar En Fuego and was one of the overall top performers in the offering.

Volume buyers included: Alamo Ranch, NM – 15, Travis Brown, FL - 14, Lykes Brothers, FL - 12, A. Duda and Sons, FL -12, and the Wedgeworth Clan, TX - 11.

Current Isa president, Lorenzo Lasater, represents the 4th generation of the family dedicated to breeding performance Beefmaster genetics.

The breed was founded by Lorenzo’s grandfather, Tom Lasater, in 1937. This year marks the 82nd anniversary of the breed.

According to Lorenzo, “This set of bulls represents

over 80 years of consistent, balanced selection for economically viable cattle. These bulls will produce excellent feeder calves and replacement heifers in any environment, but especially the tougher ones. With more pounds at weaning, lower input costs, more longevity and the best mother-cow on the planet, Beefmasters can’t be beat.”

The Lasater family would like to extend their heartfelt thanks to everyone in attendance, especially the many repeat customers, including several second generation buyers.

We are already working hard to bring you our 59th set of Beefmaster bulls on October 3rd, 2020.

Another Flare-up in the Feud Between NCBA and OCM

BY KEN ANDERSON / BROWNFIELDAGNEWS.COM

T

here’s been another flareup in the long-simmering feud between the National Cattlemen’s Beef Association (NCBA) and the Organization for Competitive Markets (OCM).

It began in late September with a blog written by OCM executive director Joe Maxwell, who says a “rigged system” allows NCBA to receive more than 27 million dollars in beef checkoff funds.

“They have rigged the system by taking over the Federation (of State Beef Councils),” Maxwell says. “They control who gets to be a contractor and it should not be a surprise to anybody that they select themselves as the prime contractor year after year after year.”

NCBA CEO Colin Woodall tells Brownfield that’s not the way the checkoff works.

“The Beef Promotion Operating Committee, which is made up of producers from throughout the country–who may or may not be members of NCBA– makes the decisions on who gets checkoff dol-

lars,” Woodall says. “There are eight contractors out there and NCBA is one of them.”

And Woodall says NCBA does not use checkoff funds for any policy or lobbying work, as OCM has claimed.

Woodall goes on to accuse Maxwell and OCM of partnering with the Human Society of the United States (HSUS) to create “a smear campaign” against NCBA. “The HSUS game is to divide the industry because they want us fighting each other–because if we’re fighting each other, then we’re not fighting them,” Woodall says.

Maxwell, former vice president of outreach for HSUS, acknowledges that OCM is working with animal rights group on its beef checkoff lawsuit.

“It is true that the Humane Society of the United States has, pro bono, been leading the legal case to get the records for five years,” Maxwell says. “But for their support in providing the lawyers, we would not even be able to highlight the truth that I just spoke.”

One of big issues in the battle between the two group is NCBA’s successful effort to end

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Livestock Market Digest

October 15, 2019

Lamb industry requires further change, says American Lamb Summit Outcomes from the inaugural American Lamb Summit were clear: all segments of the industry need to further improve lamb quality to keep and attract new customers and become more efficient to recapture market share from imported lamb. Yet, it was just as clear that production technologies and product research put industry success within grasp.

“I have never been so enthusiastic about our industry’s opportunities, but we just can’t allow ourselves to be complacent or accept status quo,” said Dale Thorne, American Lamb Board chairman, a sheep producer and feeder from Michigan. Thorne stressed, “the end-game is profitability for all aspects of our industry.”

The Summit, sponsored by the American Lamb Board (ALB) and Premier 1 Supplies, brought together 200 sheep producers, feeders and packers from all over the country to Colorado State University (CSU) in Ft. Collins, CO, August 27-28, 2019.

The conference included indepth, challenging discussions ranging from consumer expectations, business management tools, realistic production practices to improve productivity and American Lamb quality and consistency, to assessing lamb carcasses. Sessions were carefully planned so that attendees would gain tools for immediate implementation.

“We can’t keep saying ‘I’ll think about;’ we have to realize that change is required for industry profitability,” Thorne emphasized.

The Lamb Checkoff Facebook page features summary videos from the sessions and additional resources. The Lamb Resource Center is the hub for all Lamb Summit information, as it becomes available.

Consumers redefine quality “Consumers are ours to win or lose,” said Michael Uetz, managing principal of Midan Marketing. His extensive research with meat consumers shows that the definition of quality now goes beyond product characteristics, especially for Millennials and Generation Z’s. “It now includes how the

animal was raised, what it was fed, or not fed, impact on sustainability and influence on human health,” Uetz said.

“Your power is in your story. You have a great one to tell about American Lamb,” he advised.

Lamb production tools Increasing flock productivity, using genetic selection, and collecting then using production and financial data were stressed as critical steps for on-farm improvements. “The best way to improve productivity is to increase the number of lambs per ewe,” said Reid Redden, PhD, sheep and goat specialist, Texas A&M AgriLife Extension.

“Pregnancy testing your ewes should be part of a producer’s routine. Not only can open ewes be culled, but ewes can be segmented for the number of lambs they are carrying for better allocation of feed,” he said.

While genetic selection is now common in beef, pork and both Australian and New Zealand sheep, the American Lamb industry’s slow adoption is hindering flock improvement and giving competition a definite advantage, said Rusty Burgett, Program Director, National Sheep Improvement Program.

The cattle industry offers an example with how it uses EPDs (expected progeny differences) to select for traits. “We can do the same with our tools, but we must get more sheep enrolled into the program,” said Tom Boyer, Utah sheep producer.

Carcass and meat quality Understanding what leads to quality American Lamb on the plate means looking beyond the live animal to carcass quality, stressed Lamb Summit speakers involved in processing and foodservice.

Individual animal traceability is ultimately what is required to give consumers the transparency they are demanding, said Henry Zerby, PhD, Wendy’s Quality Supply Chain Co-op, Inc. A lamb producer himself, Zerby was straight-forward to the Summit participants: “Being able to track animals individually to know if they were ever given antibiotics, how they were raised, through the packer is on the horizon. We need to

realize and prepare for that.”

US lamb processors are implementing systems at various levels and offer programs for sheep producers.

Lamb flavor has been an industry topic for decades. Dale Woerner, PhD, Texas Tech University meat scientist, has been conducting research funded by ALB. He explained that flavor is a very complex topic, influenced by characteristics such as texture, aroma, cooking and handling of the product, and even emotional experience.

“Lamb has more than one flavor profile, affected by feeding and other practices,” he explained.

Summit participants tasted four

different lamb samples, which illustrated Woerner’s points about various preferences and profiles.

“By sorting carcasses or cuts into flavor profile groups, we can direct that product to the best market,” he said. The American Lamb Board is currently in the final phase of lamb flavor research with Texas Tech University and Colorado State University identifying consumer preference of American Lamb and identifying those flavor profiles in the processing plant.

What’s next The Summit was designed

to instill relevant, meaningful knowledge that can be implemented immediately to address both current and future needs.

It also sought to inspire collaboration, networking and information sharing across all segments and geographic regions of the American Lamb industry.

“If we work together to implement progressive production changes throughout our supply chain, we can regain market share from imported product and supply our country with more great-tasting American Lamb,” concluded ALB Chairman Thorne. ALB hopes that attendees left the Summit with multiple ideas to do just that.

October 15, 2019

Livestock Market Digest

Page 7

SOCORRO PLAZA REALTY On the Plaza

Donald Brown

Qualifying Broker

505-507-2915 cell 505-838-0095 fax

116 Plaza PO Box 1903 Socorro, NM 87801 www.socorroplazarealty.com dbrown@socorroplazarealty.com

REAL ESTATE GUIDE

Bar M Real Estate

SCOTT MCNALLY www.ranchesnm.com 575/622-5867 575/420-1237 Ranch Sales & Appraisals

Scott Land co.

Ranch & Farm Real Estate

AG LOANS AGLAND LAND LOANS

Bottari Realty

AsLow LowAsAs 3% As 4.5% OPWKCAP 2.9% OPWKCAP 2.9%

Paul Bottari, Broker

775/752-3040 Nevada Farms & raNch PrOPerTY www.bottarirealty.com 1301 Front Street, Dimmitt, TX 79027 Ben G. Scott - Broker Krystal M. Nelson - NM Qualifying Broker 800-933-9698 • 5:00am/10:00pm www.scottlandcompany.com

WE NEED LISTINGS ON ALL TYPES OF AG PROPERTIES LARGE OR SMALL! ■ FREESTONE CO., TX – 931.49 ac. +/- w/a beautiful 13 bdrm./13 ■ THE BOYLAN RANCH – Newkirk, NM - 2,360 ac. +/- w/useable bath home, nice managers home, large party/meeting house & house & pens, a large domestic well for lvstk./wildlife watering w/ numerous barns & out bldgs., virtually all open country w/highly potential for commercial water sales, all weather road. Adjoins the productive improved grasses, on pvmt. A “must see” property for Pajarito Creek Ranch if more acreage is desired. corporate meeting place or for large family or the enterprising cattle ■ PECOS RIVER RANCH – Guadalupe Co., NM – Scenic, 968 +/- ac. producer to run a large number of cattle w/irrigation rights out of deeded & 519 +/- state lease acres, live water ranch on both sides of existing large ponds. the Pecos River (strong flow daily) between Santa Rosa & Ft. Sumner; ■ ELK RIDGE RANCH – Capulin, NM area, 100 hd. +/- herd of Elk wildlife, paired w/water & cattle for the buyer looking for top tier assets seen on property from time-to-time, 5,520 ac. +/- w/nice home, barns in a rugged New Mexico ranch! & pens, watered by wells & live water, no outside access through the ■ LOGAN/NARA VISA, NM – 980 ac. +/- w/940.6 ac. CRP, irrigated property. Brochure being prepared! in the past, land lays good & is located on the north side of Hwy. 54.

■ DES MOINES, NM – Gateway to the Rocky Mountains - 40 ac.

■ SANTA ROSA, NM – 78 ac. +/- heavily improved for horses, cattle newly fenced w/a mobile home & a separate 228 ac. tract w/a newly & other livestock w/virtually new barns, pens, cross fences etc., on city remodeled home, barns, pens & virtually new fence. water, w/internet access to the front gate.

■ POST, TX. – 6,376.92 acre ranch in Kent Co., TX on pvmt. & on all ■ OTERO CO., NM – 120 scenic ac. +/- on the Rio Penasco is weather roads w/a virtually brand new custom built home, really nice surrounded by Lincoln National Forest lands covered in Pines & guest/hunting lodge, state-of-the-art barns & pens, a complete line of opening up to a grass covered meadow along 3,300 feet +/- of the Rio farm & ranch equipment, a registered Red Angus herd of cows, mineral Penasco. This property is an ideal location to build a legacy mountain income w/potential for commercial water sales & secluded, beautiful getaway home. areas w/bluffs & meadows around every turn in the road, an excellent supply of stock water from subs & windmills, deep year round dirt tanks ■ TEXLINE SPECIAL – 472.4 ac. irr.,or on Dalhart/Clayton hwy. inagent New Call Buena Vista Realty at 575-226-0671 the listing & The North Fork of the Brazos River through the ranch.

Mexico, adjoins the Grassland w/Organic Potential.

Lori Bohm 575-760-9847, or Melody Sandberg 575-825-1291.

■ TOP OF THE WORLD II – Colfax Co., NM – 7402.09 ac. +/POTENTIAL – Union Co., NM Many good pictures ■onGRASSLAND MLS orW/ORGANIC www.buenavista-nm.com (4,789.69 Deeded – 2,612.4 State Lease) w/historic “POINT OF adjoins the Texline Special, 927.45 ac. +/-, on pvmt.

ROCKS” monument on the Santa Fe Trail, attractive improvements, ■ FT. SUMNER, NM – 17 ac. +/- w/water rights currently planted in all weather access! alfalfa & a beautiful home built in 2007 w/3 bdrms., 3 bathrooms, an ■ EAST EDGE OF FT. SUMNER, NM – immaculate 7.32 ac. +/- w/a oversize garage & a 24X50 metal shop. beautiful home, a 900 hd. grow yard & other improvements w/a long ■ PRICE REDUCED! MALPAIS OF NM – Lincoln/Socorro Counties, line of equipment included, on pvmt.

37.65 sections +/- (13,322 ac. +/- Deeded, 8,457 ac. +/- BLM ■ LONESOME DOVE RANCH – Union Co., NM – 3,840.76 +/- ac.

Lease, 2,320 ac. +/- State Lease) good, useable improvements & of choice NM grassland, remodeled home, virtually new working pens, water, some irrigation w/water rights for 2 pivot sprinklers, on pvmt. well watered, on pvmt. & all-weather road.

■ UNION CO., NM – 955 ac. +/- w/excellent improvements for a ■ PRICE REDUCED! WE CAN DIVIDE – this Springfield, Co. 1,440 stocker or cow/calf operation, modern ¼ mi. sprinkler, all-weather roads ac. farm & ranch as follows: an irrigated farm, a 5,000 hd. fdyd. w/ on three sides, 374 ac. +/- CRP. acreage & improvments & grassland/CRP w/improvements. Please see ■ WE CAN NOW DIVIDE: THE PAJARITO RANCH – Guadalupe our website for further information.

Co., NM as follows: 3501.12 ac. +/- of grassland w/a commercial ■ BROWN CO., TX. – near Brookesmith - 424.79 ac. +/-, very scenic water well located adjacent to I40 w/capability of producing large ranch w/one mi. of Clear Creek, highly improved ranch w/fencing, well incomes together w/a great set of pens, a 17,000 gal. water storage watered, home, hunting cabin & abundant wildlife. tank, overhead cake bin, hay barn & other stock wells. 700.89 ac. +/- of grassland can be purchased in addition to the 3501.12 ac.

■ LIITLE RIVER RANCH – Pottawatomie Co., OK – 950 ac. +/-, The beautiful, virtually new custom built home w/all amenities and a beautiful home, excellent facilities, highly productive, 40 mi. SE of large virtually new metal barn w/an apartment inside on 40 ac. can Oklahoma City. be purchased separately or w/the ranch. Adjoins the Boylan Ranch if more acreage is desired.

INTEREST RATESAS AS LOW 3% INTEREST RATES LOW ASAS 4.5% Payments Scheduledon on2525 Years Payments Scheduled Years

521 West Second St. • Portales, NM 88130

575-226-0671 or 575-226-0672 fax

Buena Vista Realty

Joe Stubblefield & Associates 13830 Western St., Amarillo, TX 806/622-3482 • cell 806/674-2062 joes3@suddenlink.net Michael Perez Associates Nara Visa, NM • 575/403-7970

Qualifying Broker: A.H. (Jack) Merrick 575-760-7521 www.buenavista-nm.com

521 West Second St., Portales, NM 88130

Selling residential, farm, ranch, commercial and relocating properties.

COLETTA RAY

Pioneer Realty 1304 Pile Street, Clovis, NM 88101

575-799-9600 Direct 575.935.9680 Office 575.935.9680 Fax coletta@plateautel.net www.clovisrealestatesales.com

575-226-0671 www.buenavista-nm.com

Rural Properties around Portales, NM 1242 NM 480 - Nice home on 59.7 acres, grass 427 S Rrd P 1/2 - Large nice home, lots of barns 24+ ac 1694 S Rrd 4, Great home, barns, cattle pens, location 2344 S Rrd K east of Dora, NM, great - Near wind farms All properties excellent homes & can have horses, etc.

See these and other properties at www.buenavista-nm.com

TEXAS & OKLA. FARMS & RANCHES ONE OF TEXAS’ BEST - 840 ac, Hunt Co., TX. 20 miles to McKinney, 30 miles to Dallas, 8 miles to Greenville. Beautiful modern 4,000 sq ft home sets high on hiill with view to all of the ranch. 20 lakes and dirt tanks, excellent grass, barns, cattle pens, nice barn, apartment, 8 pastures.

All this 3.4 million. Owner ready to retire.

UNDER T C A R T N O C

230 AC GAME & RETREAT that is a dream. Lakes, woods, meadows, game galore, 35 miles out of Dallas, Kaufman Co.

Joe Priest Real Estate

1-800/671-4548

joepriestre.net • joepriestre@earthlink.com

NORTHERN CALIFORNIA

33 years in the ranch business – see www.ranch-lands.com for videos & brochures

DUANE & DIXIE McGARVA RANCH: approx. 985 acres Likely, CA. with about 600+ acre gravity flood irrigated pastures PLUS private 542 AU BLM permit. About 425 acres so of the irrigated are level to flood excellent pastures with balance good flood irrigated pastures. NO PUMPING COST! Dryland is perfect for expansion to pivot irrigated alfalfa if desired. Plus nearby BLM permit for 540 AU is fenced into 4 fields on about 18,000 acres - located only 7 miles away. - $3,125,000 BEAVER CREEK RANCH: about 82,000 acres - with 2,700 deeded acres plus contiguous USFS & BLM permits for 450 pair; 580+- acres irrigated alfalfa, pasture, and meadow from Beaver Creek water rights and one irrigation well. 3 homes, 2 hay barns, 4 feedlots each w/ 250 ton barns, 2 large reservoirs, can run up to 500-600 cows YEAR ROUND. $5,400,000 ROUND HOUSE RANCH: approx. 291 acres just outside Redding, CA. Adjudicated Water Rights from Oak Run Creek – about 45 acres flood irrigated & well set up fields & irrigation system. Springs plus 4 ponds. Like new Headquarters tucked in next to a pond and beautiful view overlooking the irrigated fields. Additional caretaker or rental house near ranch entrance, equipment shed, large shop. All like new. Reduced Asking Price $1,995,000

BILL WRIGHT, SHASTA LAND SERVICES, INC. 530-941-8100 • DRE# 00963490 • www.ranch-lands.com

THE 100 RANCH – The 100 Ranch is a scenic 1200 cow ranch with stunning views of the nearby Sacramento and Jicarilla Mountains. Located approximately 30 miles northwest of Carrizozo, New Mexico on the Chupadera Mesa. The ranch is comprised of 15,931 deeded acres, 30,680 federal BLM lease acres and 9,208 NM State lease acres. The ranch is fully operational ready to turn out with no start up costs. Watered with six wells and an extensive pipeline system. Wildlife is abundant to include elk, mule deer, antelope and oryx. Access to the public land is limited with approximately 7,000 acres of private land gated and locked.

The price includes all ranch vehicles and equipment. The 100 Ranch has had just two owners since the 1940s. It is one of a kind. See more information about the 100 Ranch on my web site www.ranchesnm.com.

Call for an appointment to come take a look. Co-listed with Mossy Oak Properties NM Ranch & Luxury, LLC. Price: $11,000,000 cash SULTEMEIER RANCH – First time offering of a ranch that has been owned and operated by the same family for over 70 years. Fifteen miles southeast of Corona, NM in Lincoln County. 11,889 Deeded Acres, 1,640 Federal BLM Lease Acres and 2,240 NM State Lease Acres. Grazing Capacity estimated at 300 AUYL. Water provided by five wells and pipelines. Improved with two residences, barns and corrals. The ranch had a good summer with abundant grass. Good mule deer habitat. Call for a brochure or view on my website.

Price: $4,400,000 $3,750,000 COCHISE RANCH – Ranch property located just west of Roswell, NM along and adjacent to U.S. Highway 70/380 to Ruidoso, NM. Comprised of 6,607 deeded acres and 80 acres of NM State Lease acres. Water is provided by three solar wells and pipelines. Fenced into several pastures and small traps suitable for a registered cattle operation. Improvements include two sets of pens, shop, and hay barn. Price: $2,500,000 Scott McNally, Qualifying Broker Bar M Real Estate, LLC P.O. Box 428, Roswell, NM 88202 Office: 575-622-5867 Cell: 575-420-1237 www.ranchesnm.com

O’NEILL LAND, llc P.O. Box 145, Cimarron, NM 87714 • 575/376-2341 • Fax: 575/376-2347 land@swranches.com • www.swranches.com

CHICO CREEK RANCH, Colfax County, NM. NEW LISTING. 6,404.26 +/- Total Acres, Located approximately 10 miles east of Springer New Mexico.

3,692.60 +/- deeded acres with balance in state lease.

Excellent grass and water. Two plus miles of the Chico Creek meandering through the center of the property.

Additional wells and dirt tanks. Nice historic head quarters privately located with shade trees and excellent views of the property. Shipping pens in central portion of property. $2,837,318 WAGON MOUND RANCH, Mora/Harding Counties, NM. 8,880.80 +/- Total Acres, a substantial holding with good mix of grazing land and broken country off rim into Canadian River. Has modern water system located 17 miles east of Wagon Mound off pavement then 3 miles on county road. Two bedroom historic house, once a stage stop. Wildlife include antelope, mule deer and some elk. $2,710,000 MIAMI HORSE HEAVEN, Colfax County, NM. Very private approx. 4,800 sq ft double walled adobe 4 bedroom, 3 bathroom home with many custom features, 77.50 +/- deeded acres with water rights and large 7 stall barn, insulated metal shop with own septic.

Would suit indoor growing operation, large hay barn/ equipment shed. $1,375,000

FRENCH TRACT FARM, 491.55 +/- deeded acres, Colfax County, NM two pivots, some gated pipe, 371 irrigation shares in AVID, House, barn, close to exit 419 off I25 on HWY 58. All in one contiguous parcel with access on all sides. $700,000 RATON MILLION DOLLAR VIEW, Colfax County, NM. 97.68 +/- deeded acres in 2 parcels with excellent home, big shop, wildlife, a true million dollar view at the end of a private road. $489,000. Also listed with the house and one parcel for $375,000 MIAMI 20 ACRES, Colfax County, NM quality 2,715 sqft adobe home, barn, grounds, fruit trees and mature trees. Extremely private setting. REDUCED $355,000.

This is a must see. Also listed with same house with 10 +/- deeded acres for $310,000 MAXWELL 19.50 ACRES, Colfax County, NM quality extensive remodeled two bedroom, one bathroom home with water rights, outbuildings for livestock in NE NM. Great south facing porch for sipping iced tea cooling off at 6,000 ft elevation. Would make great summer getaway and winter ski base. $260,000 MORA COUNTY 160 +/- ACRES, 12 miles south east of Wagon Mound, remote, excellent solar well good mix of sub irrigated and range. Small cabin. $154,000

Page 8

Livestock Market Digest

October 15, 2019

Heard of Books, Butlers, Lifters, or Flat Irons?

Spoiler alert: They’re all the same steak.

Who decides what a cut of beef should be called—and how do we get more people to eat them?

BY MARILYN NOBLE / NEWFOODECONOMY.ORG

A

few days ago, I picked up something called a chuck eye steak at the local grocery. I seasoned it and threw it on the grill—it was delicious. Not familiar with this particular steak? Well according to the main beef industry website, it is also known as a boneless chuck filet steak, boneless chuck slices, boneless steak bottom chuck, chuck filet, chuck roll, Delmonico steak, English steak, London broil, shoulder steak, and shoulder steak half cut.

Anyone but a dedicated carnivore or a seasoned industry professional would likely have no idea that those are all the same cut of beef. And the plethora of names for one cut isn’t limited to the chuck eye— search for the flat iron steak, for instance, and you’ll find it’s also called boneless top chuck steak, book steak, butler steak, lifter steak, petite steak, and shoulder top blade steak.

If all of this makes you feel out of the beef loop, don’t fret: Soon enough, the average meat eater may be boning up on a host of unfamiliar cuts. Driven by price, flavor, and the desire of many eaters to consume smaller portions of meat, the demand for underutilized cuts, as they’re known in the industry, is growing. But with that growth comes a new focus on the curious naming conventions surrounding beef cuts—and the consumer confusion these protocols can breed.

What’s now a burgeoning trend first grew from necessity. Back in the 1990s, the price for cattle was at an all-time low, due to an oversupply of domestic beef, along with competition from Mexican cattle imports and a glut of pork and chicken. The market price for beef chucks and rounds was depressed around 20 to 30 percent, according to

Bridget Wasser, executive director of meat science and supply chain outreach at the National Cattlemen’s Beef Association (NCBA). In an effort to wring more value out of the carcass, NCBA, with funds from the Beef Checkoff—the mandatory marketing program that requires one dollar per head be paid by all beef cattle and calf producers—commissioned a research study at the Universities of Nebraska and Florida.

Researchers ended up discovering that some unfamiliar cuts are not only tasty, but remarkably tender as well.

The goals of the study were twofold. “The first objective was to understand the characteristics of the muscles in those particular portions of the beef carcass to hopefully find some diamonds in the rough,” says Wasser. Once the 39 muscles were isolated and evaluated, researchers developed fabrication (butchery) methods to turn the most promising of those muscles into new beef cuts and add value to the carcass. “The other reason,” Wasser says, “was to provide consumers with a great eating experience from a variety of different beef cuts.”

Researchers ended up discovering that some unfamiliar cuts are not only tasty, but remarkably tender as well. Probably the most popular and successful of the underutilized cuts is the flat iron steak from the infraspinatus muscle in the shoulder, which is the second most tender in the carcass, behind only the psoas major or tenderloin, aka Chateaubriand, filet mignon, medallions, short tenderloin, or tournedos.

But within those many names lies one of several obstacles to continued growth of the underutilized cut market.

Butcher and educator Adam Danforth says the nomenclature protocol for beef cuts makes very little sense to either eaters or butchers. “All these naming conventions are about upsell,” he says. “It works better to call something a Denver steak than an underblade steak, which is a bit of a mouthful.” He adds:

“The butcher shops often can’t keep them straight, and then they also adopt certain names, like say a flat iron, and then apply it to something like the triceps or shoulder clod and call it a faux flatiron.” And then there’s the practice of calling several different cuts the same name, like London broil, which is actually a cooking method, rather than a cut. But still, a butcher might label a top round steak, a sirloin tip, or even a flank steak, each with different cooking requirements, “London broil.”

Wasser says the cut names were essentially determined by committee, probably one reason for the confusion. The initial names came from an industry advisory group when the research was finished, but naming the cuts after the muscles they came from wasn’t sexy from a marketing standpoint. NCBA ended up going through a long process of trademark research and consumer focus groups.

“Sometimes with the fanciful names, it’s just a way to get the conversation started,” she says.

“They give us something to talk about when we start educating and marketing cut opportunities like the Denver steak or flat iron. Western names tend to resonate with consumers, but again, it’s just a name to get the conversation started. Chefs, in particular, are pretty good with coming up with their own fanciful names on menus and they tweak those all the time.”

“If everyone just eats filet mignon, how many cows do we have to go through?”

Danforth thinks that is bewildering. “I don’t mind calling a sirloin flap a sirloin flap, rather than a bavette, even if adopting a foreign name sounds better and you can charge more for it,” he says, noting that the name switch simply causes confusion.

“In the long run, I would opt to teach somebody about why these things are really excellent and not obfuscate them with new titles that sound better.”

Naming conventions aside, even as more chefs and home cooks are learning to value different cuts, and craft butchery

is enjoying a renaissance, obstacles remain. “There’s a lot of complexity in the system,” says Wasser. Fabricating smaller cuts requires skilled labor and extra time, both in short supply in the industrial processing system. There, speed is critical and breaking down large pieces of carcass into the most familiar and salable cuts—like roasts and steaks—is the standard. Industry expert Gregory Bloom agrees. “As the industry has changed and consolidated, now packing plants are doing all the processing, which is good and bad. There’s a speed factor and efficiency factor whereby they can’t necessarily fabricate all the cuts that are actually delicious.”

That leaves it to butchers and small processors who may not necessarily have the time or skills to break out single muscle cuts. Small processors especially are “the most thankless step in the entire process,” says Danforth. “There’s no money to be made, their margins are horrendous, and it’s really, really hard work. And the move towards more of these cuts makes their job harder.”

Still, he’s optimistic. “I think with a combination of education and patience there’s a way to improve that component.”

For chefs, adding new and different cuts to the menu can be a way to draw adventurous eaters in the door.

The industry also suffers from a dearth of trained butchers. Kari Underly is an educator and third-generation butcher in Chicago who worked with NCBA on the development of the flat iron and Denver steaks.

“Butchers are needed at every point in the industry, every place they want and need help,” she says. “Not only is it the cute little butcher shop down on Main Avenue, it’s an issue everywhere.” The lack of skilled meat cutters can be attributed to several circumstances: As the meat packing industry automated and consolidated in the Midwest where the bulk of the cattle are, butcher training and work-force development in other places slowed significantly or stopped

altogether. The pay is generally low; the work is physical, cold, and dangerous; and the current crackdown on immigrant workers has reduced the labor pool.

While some culinary schools and community colleges are adding meat-cutting curricula, Underly is developing her own meat school. Through online classes, Range Meat Academy offers certificates for meat clerks and meat cutters and, eventually, she plans to add regional onsite butchery classes.

For chefs, adding new and different cuts to the menu can be a way to draw adventurous eaters in the door and offer them a creative meal at a decent price point. But sourcing can be a challenge. Some restaurants depend on distributors for their eclectic cuts, and some have invested in whole animal programs: Either training one of the staff members or learning themselves how to fabricate cuts from a side of beef. “Chefs are really getting back into this,” says Bloom. “They’re saying, ‘I don’t want just boxed beef ribeyes. I want to learn how to fabricate the animal and buy quarters.’ I get calls all the time asking, ‘Where can I get a side of beef?’”

Denver chef Troy Guard buys some cuts, like hanger steaks (aka, hanging tender), from his distributors, but he’s also developed a whole animal program and buys whole lambs, goats, and sometimes a side of beef. Guard, of TAG Restaurant Group, owns eight different dining concepts, ranging from an upscale steakhouse to a burger bar and a breakfast joint. The variety of cuisines allows him to use many different cuts, which makes buying whole animals doable. He says sometimes suggestions for new cuts come from his vendors, but most of the time, he does research and then gets creative, as with the lamb neck benedict he serves for breakfast.

“I want to challenge our guests to try new things because if you think about it, if everyone just eats filet mignon, how many cows do we have to go through?

We need to do nose-to-tail,” he says. “I’m trying to figure out what I can use differently that people are still going to really enjoy and love and get turned on to. Plus, it’s a price point. People want to be able to continue to go out and eat. So here’s how we look at it. What can I create that’s new and different and gives the guests a different angle, but that’s price conscious as well? And that’s how we create our new dishes.”

“Chefs are really getting back into this.”

At Blackbelly and its sister restaurant Santo in Boulder, chef and owner Hosea Rosenberg takes a different approach.

When Rosenberg opened Blackbelly as a fine dining restaurant in 2014, he included a small butcher shop and market for breakfast and lunch service.

But when the space next door opened up, he moved the butcher shop and market. This gave him more room for bringing in and fabricating whole animals, which he sources primarily from local farms and ranches who raise their animals with high continued on page nine

October 15, 2019

Livestock Market Digest

The View FROM THE BACK SIDE

Fire Has a Role?

BY BARRY DENTON

R

emember Ray Brabury’s 1953 dystopian novel entitled Fahrenheit 451? If not, the novel was about a society where books were outlawed and firemen were used to burn them.

I read that book in the 1970’s and was astounded that there would ever be any fireman that started fires.

However, as you grow up and learn about farming and ranching you realize that there are great benefits to burning certain areas to improve grazing or crop production.

Recently near our small community the United States Forest Service (USFS) has been conducting a controlled burn. What baffles me about is that there are USFS signs that say fire conditions are rated as extremely high. I interpreted that as the Forest Service is setting fires so watch out!

Hopefully, they will keep things under control. Their track record is not good, but it sure makes you wonder why they think it’s a great time for a controlled burn when the risk is extremely high according to them.

At a recent community meeting I hosted our local USFS Fire Chief. Now, mind you that is not his official title. His title was blah, blah, blah, and some more blah, blah, blah. It took him at least two minutes to recite it and I think he was proud of himself for remembering all that.

Then he went on to explain his title and what it all meant.

After his grand introduction he thought it was best if we stupid citizens just remembered him as the “Fire Chief”, so that’s what I will call him for this article as repeating his title more than a few times would take up the entire article.

I think if you get a longer title that you must get a bigger paycheck. That could be why ranchers, farmers, and cowboys, get low wages, because their titles are simply not long enough.

The fire chief started out his talk with “defining defensible space” instead of just saying cut the damn brush back from your house and barn. After 20 minutes of defining, he went on to the proper way to remove brush from your property, and all the necessary safety equipment that you would need to accomplish this task.

If you heeded their advice exactly, considering the time and safety equipment required, you would probably have to quit your job to accomplish it. About every five minutes he would remark, “Can’t you just really tell that I’m into this?” Most people attending the meeting thought he was into himself

and making speeches to the common folk.

Granted we need someone to manage our national forests and range lands, but could we ever hire someone with common sense? The forest ranger was the rancher’s friend for many years and would have some good suggestions when problems arose. Forest rangers used to act like they wanted to help you and the land.

It does not seem important to help citizens anymore.

They seem to be indoctrinated in the cult of environmental hooey. It’s about time that we start eliminating government jobs and start contracting forest management out to private firms.

In regard to range fires close to your place, I’m always thankful that the USFS comes in with the slurry bombers and hotshots. However, can you imagine if it was a private contractor coming in to do the job, it would even be better? The firefighters would be paid more and I’ll bet you the equipment would be much improved.

It’s always amazing to me that in an instant we can dispatch a number of fighter jets to a foreign country, but we only have a limited amount of slurry bombers that we can dispatch to save our own citizens from a fire. How about the USFS maintaining a fleet of bulldozers to cut a firebreak around residential areas that they border? It would seem to me that the head of the USFS would be lobbying Washington for more and better firefighting equipment on a regular basis. Perhaps she does, I don’t see any results yet?

I am looking for some positive changes at the USFS with the appointment in 2018 of Vicki Christiansen as the 19th Chief of the Forest Service. Just maybe we will see some overhauling, but I think she has much to overcome.

Hopefully, she is a fighter and can get things done. I know she is an Arizonan and is well thought of here.

“Fire Has A Role” is plastered on every USFS billboard that they put up. Is this new slogan supposed to make us feel better or are they becoming similar to the firemen that Bradbury described as setting fires? I get it, but fire doesn’t have a role in burning up people’s property that they work all their lives to maintain.

With the Dosie fire a few years ago and also losing our 19 firefighters all at once, you can see why we might be a little nervous in this area.

The USFS doesn’t have a very good reputation and you would think that they would be working hard to change it.

Their slogan should be, “We’ll Try Harder To Protect Our Firefighters, Fellow Citizens, And Their Property!”

Page 9

A New WOTUS Definition Coming Farmers, landowners stuck with nutty pre2015 definition until federal agencies agree to new water regs

BY GARY BAISE / WWW.FARMPROGRESS.COM

I

n September , EPA’s Administrator and the Assistant Secretary of the Army for Civil Works announced their agencies were repealing the Obama Administration’s 2015 promulgated rule – the one that a number of agriculture associations had accused the Obama Administration of impermissibly expanding the definition of Waters of the United States (WOTUS).

The two agencies say they are “…recodifying the longstanding and familiar regulatory text that existed prior to the 2015 rule…” To codify means to arrange information in a logical order that others can follow.

The two agencies promised there will be a “new step 2” which will create a new WOTUS definition.

Messy definition In the meantime, farmers, landowners and developers nationwide will be stuck with the uncertainty of the definition which existed prior to 2015. That definition is a mess!

You may recall, there were two cases ruled on by the U.S. Supreme Court which involved disputes over the Clean Water Act (CWA) and jurisdiction it had over adjacent wetlands. Justice Scalia, writing for the plurality in the Rapanos and Carabell cases, adopted what has been called the “Bright-Line” rule when he stated waters in WOTUS means “relatively permanent, standing or continuously flowing bodies of water – that is, streams, rivers, and lakes.

Wetlands could also be included but only when they have a continuous surface connection to other waters of the United States.”

Justice Kennedy came up with the “significant nexus” test. He concluded that the CWA WOTUS definition required a more “malleable” approach. He stated the Corps should determine on a case by case basis whether the water in question had a significant nexus” to waters which are navigable-in-fact.

Justice Kennedy believed a nexus existed “… when the wetland, either alone or in connection with similarly situated properties, significantly impacts the chemical, physical, and biological integrity

of a traditionally navigable water body.”

Bureaucrats run amok With this language, the bureaucrats at EPA and the Corps went wild.

The bureaucrats did not follow Justice Scalia’s language but quickly adopted Justice Kennedy’s new test. The lower courts said there was no controlling majority and of course all of them applied Justice Kennedy’s “significant nexus” test. Believe it or not, some courts said this language was vague and difficult to implement.

If we are going back to apply the rules before 2015, this nutty procedure apparently will be enforced and in effect.

The EPA and Corps press release on September 12 claim the agencies would be returning to familiar regulatory text. Surely, they are kidding!

The good news in the September statement from the two agencies is that they are setting the stage for step two which will create a new definition of what constitutes a water of the United States. We can only hope that step two will be taken quickly.

An excellent summary regarding what constitutes a water of the United States was provided by the Congressional Research Service (CRS) August 8, 2016. This report by the CRS has a table listing the major federal actions taken to define what is a WOTUS. On February 6, 1973, EPA issued a memorandum attempting to outline the jurisdiction of the Clean Water Act and the Corps first attempted to define navigable waters on May 4, 1973. The list then sets forth numerous dates attempting to define WOTUS and these actions continue through the 80s, 90s and 2000.

As you may remember, on June 29, 2015, the Corps and EPA issued their definition of what constitutes WOTUS. This definition was met with overwhelming rejection by farmers and landowners throughout the United States. The definition was so egregious it became a major plank in Donald Trump’s campaign for the Presidency.

It is hard to believe it has taken almost three years for leaders in the Trump administration to deal with this issue. Let us hope that step two for a new WOTUS definition will come quickly. Given the opposition in the bureaucracy to the President’s plans, it is unlikely this issue will be resolved before November, 2020. We can only hope.

BOOKS welfare standards. “Because we’re whole animal, we have more of an opportunity to make the most of those animals that have dedicated their lives to feeding us,” says Lauren Feder Rosenberg, director of communications at Blackbelly. “It’s a really good thing to be able to do, to honor that animal and use every piece of it to make something that’s beneficial for other people.”

Customer education is a big focus at Blackbelly, as it should be in any butcher shop, but that’s also one of the roadblocks in the meat business. “All of this ends up being a confusing area, and it depends on the management of a place whether or not they’re educating their staff about how to convey the information,” says Adam Danforth.

“I think it’s rare that people really understand how to answer basic questions about meat.”

NCBA has a solution for that. With funding from the Beef Checkoff, the organization created the beefitswhatsfordinner.com website, where anyone can find comprehensive information on beef cuts and cooking methods, along with recipes and other general beef background.

For eaters who prefer a more personal experience, the experts I interviewed suggested finding a local butcher shop or small independent grocer with a butcher counter and building a relationship. “The obvious thing is to support local small businesses because they need every dollar they can get to stay in the local community. That’s the unspoken part of this,” says Kari

continued from page eight

Underly. “Talk to your butcher. They might look at you like you’re crazy if you come in with some new cut, but talk to them and you guys will figure it out.”

Bloom agrees, suggesting you find someone who’s willing to look for the answers they don’t have—a butcher who will do research, when necessary.

Despite the inherent difficulties, is this predilection for whole animals and lesser known cuts a passing phase? NCBA’s Wasser doesn’t think so. In fact,

even though it’s been almost 20 years since the research began, she believes it’s finally picking up steam. “The interest in food and where it comes from, in how someone cut that flat iron for you and what you can make with it, the interest in cooking, and the social aspect of it all play right into it,” she says.

Marilyn Noble has written hundreds of articles about everything from aviation to food and agriculture. She’s also the author of four Southwestern cookbooks. She’s based in Arizona.

Page 10

Livestock Market Digest

Owls, more owls and federal land grabbers Owls In response to a 2013 lawsuit

by WildEarth Guardians on behalf of the Mexican spotted owl, a federal judge in Arizona has ordered a halt to timber operations on all New Mexico forests and one forest in Arizona (about 12 million acres). WildEarth Guardians Executive Director John Horning said, “With this

decision, the agencies will finally be held accountable for ensuring that all forest management practices help, not hinder, owl recovery.” The attorney for the organization on this case explained that “certain timber projects will be paused in light of the judge’s decision.”

Since this has the potential to affect many things, including forest-thinning projects de-

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invalid Biological Opinions, and they won, with the judge ruling irreparable harm could occur to the MSO which renders the Biological Opinions invalid, and the proper remedy was to halt all timber management actions until the Forest Service had corrected the problems identified.

The judge wrote, “So by [the Forest Service’s] own admission, delisting and therefore recovery is wholly dependent upon accurate range-wide population data, and no reliable data exists.”

That is a lot to absorb, but since there are over 2,300 endangered or threatened species, and the instance and intensity of wildfire seems to increase every year, and climate change appears to be injected into every natural resource issue, I thought it appropriate to walk you through this particular case.

This brings to mind the Northern Spotted Owl. In the 1980s enviros drove spikes into trees, wore tree costumes, and crawled into tree platforms, all to disrupt the logging of oldgrowth forests. Lawsuits were filed and this subspecies of the owl was listed, and a 1991 federal court decision closed much of the northwest woods to logging. Timber harvests declined by ninety percent on twenty-four million acres of federal land, as local communities were decimated. This was one of the largest demonstrations of the power of the Endangered Species Act and the way it can change the way we use land.

Fast forward to today and the Northern Spotted Owl is more endangered than ever. All those millions of acres of protected habitat are now being taken over by the barred owl. A larger, more aggressive animal, the barred owl consumes almost anything, including spotted owls.

This type of foolishness will continue until Congress musters the fortitude to amend the Endangered Species Act. So far, they have only answered to the Call of the Mild.

Land grabbers A recent GAO report and Congressional testimony by the

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signed to limit wildfires, let’s take a closer look at what the judge actually ruled.

This should be prefaced with a little background. On March 16, 1993 the Fish and Wildlife Service (FWS) listed the Mexican Spotted Owl (MSO) as a “threatened” species. At the time of the listing, the FWS acknowledged that no historic or current MSO population data existed due to the “secretive” nature of the species. In 1995 a Recovery Plan was developed, and in 1996 a region-wide Forest Plan Amendment was adopted that included the prescriptions of the Recovery Plan. In 2005 a “no-jeopardy” Biological Opinion was issued, that admitted “no long-term monitoring has been initiated pursuant to the MSO recovery plan.” In 2012 more “no-jeopardy” Biological Opinions were issued. However, this time they were issued on a forest-by-forest basis rather than a regional approach. And finally, in 2012, a revised Recovery Plan was issued that reiterated there were few population studies currently available.

With that quick review, let’s delve into the judge’s ruling.

Among other things, the enviros alleged the shift from one region-wide Biological Opinion to eleven different Biological Opinions was inexplicable, with no reasoned analysis, and therefore arbitrary and capricious.

And they lost, with the judge accepting the government’s explanation for the change.

The enviros challenged the government’s position that “wildfire was the greatest threat to the MSO in the action area.” And they lost, with the judge ruling the government’s position was based on the best available data.

The enviros alleged there was insufficient analysis of the impact of climate change on the habitat of the MSO, and that if done properly, would result in additional habitat being set aside. And they lost, with the judge accepting the counter arguments of the government.

The enviros alleged the Forest Service had violated its duty to avoid jeopardy by relying upon

October 15, 2019

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Noah’s Dispersal Sale To: Residents of Mt. Ararat School District Ref: Noah, visionary and livestock hauler recently returned from an exotic cruise, will be holding his first apré cruise yard sale. Many items will be offered to tickle your nautical or agricultural fancy.

All sales final, not guaranteed against mildew.

Included in the sale: • Approx. 2400 cages (wire, wicker, horsehair, iron, rope, screen, etc.)

• Lots of salt blocks • Adjustable nose tongs (fits both water buffalo, hippo and elephant) • 1.2 million species of insects

still frozen in a quart jar (could be used as parakeet feed or turned loose on the world) • Two cans of Off • One rhino twitch • A Mastodon fur coat (soon to be listed as endangered) • Kangaroo teeth floats • Set of teeth floats for small rodents • Dried poultry waste. Including pigeon, pelican, buzzard, banty, canary and condor.

• Two dozen used but still serviceable scoop shovels • Hoof nippers (fits any species from emu to gnu) • 600 partially chewed wooden panels • Box of assorted pills including wildcat suppositories, camel antacid boli, Dramamine and Bear Butazolidin • Two hog snares (will double as calving tool and snake

federal land management agencies have shed some light on federal land acquisition.

• Since its inception, the Land and Water Conservation Fund (LWCF) has provided $18.9 billion dollars for land acquisition • Since the inception of the LWCF, the Forest Service has acquired 6 million acres.

• From fiscal years 2014 through 2018 Congress has appropriated $1.9 billion to the LWCF • In fiscal years 2013 through 2017, the four land management agencies (BLM, FWS, FS, NPS) acquired 850,000 acres using LWCF funds.

We also know that for fiscal year 2018, the four land management agencies had a combined deferred maintenance backlog of $19.8 billion. By agency, that is $11.92 billion, NPS; $5.2 billion, FS; $1.3 billion, FWS; and $0.96 billion, BLM. The Forest Service testified, for instance, this maintenance backlog included “over 370,000 miles of roads, 13,400 bridges and trails, dams and both administrative and wildfire facilities that impact every aspect of the Forest Service mission.”

After much clamor, Congress recently passed legislation to permanently authorize the Land and Water Conservation Fund. How did they address this maintenance backlog vs. new acquisitions question?

They didn’t. They mandated the majority of these funds be used only for land acquisition.

The D.C. Deep Thinkers are saying that no matter what poor conditions prevail over our existing land areas, you must go out and acquire more. Do you follow their logic here? We have to acquire more so we can mess up more.

Until next time, be a nuisance to the devil and don’t forget to check that cinch.

Frank DuBois was the NM Secretary of Agriculture from 1988 to 2003, is the author of a blog: The Westerner (www.thewesterner. blogspot.com) and is the founder of The DuBois Rodeo Scholarship and The DuBois Western Heritage Foundation

catcher) • Two life jackets for small mammals. Size prairie dog to porcupine • A collection of specialty feeds; Eucalyptus Koala Chow, Bamboo Panda Chow, Bat Mosquito Chow, Mosquito Bat Chow and bag of M & M’s • Crocodile balling gun • Anteater tongue depressors • Giraffe stomach hose Small library containing: • “How to Get Ahead in the New World Even Though Fish Have a Head Start” • “Practical Uses of Animal Waste from Caulking and Rudder Grease to Fertilizer and Finger Painting” • “How to Survive 40 Days and 40 Nights Cooped Up with a Man Who Keeps Saying, ‘Pretty Good Ark. ‘Eh, Mother?’”

• “The Illustrated Guide to Sexing Amphibians, Newts and Domestic Fowl” • “Noah’s Captain’s Log entitled, ‘One More Day Like This and I’ll Never Get The Corn In’” And finally: • “Firewood (gopher) by the cubit www.baxterblack.com

October 15, 2019

Livestock Market Digest

Collectors Corner

by Jim Olson

Authenticating Collectables

W

hen you have a collection of potentially valuable items, especially if they have some sort of historical significance, authentication is very important. Just to know your items are authentic, and not fakes or re-pops, is important even if you are not looking to sell.

Being able to accurately know and represent what is in our collections is important. But how do we go about that?

The first, basic rule, is collectors should save any documentation, photos and receipts from the original purchase if possible. When you buy an item, get a detailed receipt if possible. A detailed receipt from a reputable dealer is often considered a good form of provenance. If it is a historical item and there are photos or a paper trail of where it came from, this is extremely important. Sometimes however, items are inherited or come as gifts. But it is still necessary to write down as much as you know about what was passed down with the item and save it with the piece.

The next way to get items authenticated is to find an expert in the field and reach out to them. Getting a letter or certificate of authenticity from a recognized leader, or expert in the field, is considered a good form of provenance. Talk to several if you can. Try to learn from them while you are at it.

Another good way to get authentication is to contact reputable dealers and collectors in the area or field that your collectible falls into.

These are often the same people as would be considered the “experts” from the paragraph above, but it is always good to get several opinions and dealers are often the ones handling items similar to yours on a daily basis.

Another way, and I say this with caution, is to do your own research online. The internet is a wide and wonderful world of information. When you find items like yours, print out or save the information. However, I throw in the note of caution because you will also find a lot of misleading information on the internet. Every day people come to us and have an item and say they seen one “just like it online” and that it was selling it for $____ . First off, make sure what you are seeing online is indeed, “just like yours,” and secondly, remember that anyone can ask for anything online, that does not mean that is what it actually “sells for.” Or even that it, is actually what it is.

I recommend after you do your research online, to take the information and go to a recognized expert, dealer or collector and and let them help you with identifying what you actually have, compared to what you found online.

Why use an expert and what

makes someone an expert? It is always best to find someone who knows what they are talking about when searching for an expert opinion. However, you should know there are a lot of self-professed experts out there who looked at a few pictures online and now think they know everything. What you are actually looking for is someone who has handled a lot of those types of items in the past and preferably is still in the business of handling them. Not only handled them, but also has studied them. They have read all the books, talked to others who are recognized in the area of expertise, etc. etc.. I like to use the analogy about a guy who really, really, knows about motorcycles. An expert on motorcycles can tell the difference between a Harley and a Honda from a mile away.

While the average person just sees two motorcycles coming.

That is, until some of the obvious differences are pointed out. The expert knows the differences at a glance and can tell you the difference in price, collectiblity—and why.

Offer to pay the expert for their services. It is the right thing to do. A lot of experts may not charge for identifying things or giving letters of certification (in some cases perhaps if they are doing other business with you or they hope this will lead to future business), but do not expect that. For example, if you take a car you are considering buying or selling to a mechanic for an inspection, wouldn’t you expect them to charge? When you take a horse to the vet for a pre-sale inspection, does he not usually charge? If someone asked you to preform what ever it is that you do for a living, would you not expect them to pay for your services?

Most of the time, the answer is yes. So we should expect to pay an expert for authentication services as well.

One quick note about “experts.” Remember that if you ask 10 different “experts” for an opinion, you will likely get 10 slightly different answers.

And maybe only half of them are very accurate! That is just human nature and the way of the world with people’s opinions. So do your own research.

Also research the “experts” and talk to the ones you feel you can trust. Sometimes it is a collaboration of several sources which gives you the best totality of information.

Remember that in the world of buying and selling collectibles, provenance is everything.

Especially with regards to the more rare and valuable items.

The better the paper trail, the more the item will sell for, or will be valued at. So search out the history, get the provenance and keep it with your items. It is important.

Jim Olson www.WesternTradingPost.com

Page 11

West Texas A&M Announced as USDA Cattle & Carcass Grading Correlation Center

BY MATTHEW WATKINS / ABC7AMARILLO.COM

T

he U.S. Department of Agriculture (USDA) has announced West Texas A&M University as one of three regional USDA Cattle and Carcass Grading Correlation Centers. These centers will educate and train stakeholders across the country in the grading of feeder cattle, fed cattle and beef carcasses.

The current Farm Bill includes a provision authored by Congressman Mac Thornberry (R-Clarendon) with the assistance of the Texas Cattle Feeders Association (TCFA) to establish “Cattle and Carcass Grading Correlation and Training Centers,” which will help ensure that federal beef graders are interpreting and applying the USDA standards in the same way so that cattle and carcasses across the country are graded uniformly.

“The accuracy of grading cattle is dependent on the grader’s knowledge of animal composition, making the process subjective. It is important to ensure that producers are receiving a fair price and that consumers are paying a fair price for the quality of beef,” said Thornberry. “This legislation is an example of common-sense making a difference in our agricultural industry. I am thankful for everyone who worked on this legislation and the implementation.”

“The grading center will provide consistency and reduce subjectivity in live animal grading for AMS graders across the entire country,” said Levi Berry, TCFA Chairman. “Establishing this center in the heart of Cattle Feeding Country makes sense because of the availability of all types of cattle and industry expertise. Rep. Thornberry played a key role in bringing this training center to the Texas Panhandle. We’d like to thank him for his hard work.”

Beef Product Seasonality

BY DERRELL PEEL - OKLAHOMA STATE UNIVERSITY / DROVERS

Widely varying seasonal price patterns exist for the many beef products produced in the industry. ( FJ ) Most agricultural markets exhibit regular patterns of prices through the year, known as seasonal patterns. Price seasonality reflects the net effect of seasonal tendencies in both supply and demand. In the cattle and beef industry, widely varying seasonal price patterns exist for all classes of cattle as well as for each of the many beef products produced in the industry. Some seasonal patterns have shifted in recent years with evolving exports markets, etc. The following discussion is based on average seasonal price indexes for Choice beef primals and wholesale products over the past three years (2016-2018).

The boxed beef cutout value represents the net aggregation of the primary muscle cuts of the beef carcass. Boxed beef cutout values typically vary by about 13 percent, from a seasonal high in May about seven percent above average to a seasonal low in October about six percent below average. The boxed beef cutout includes values for four major primals; rib, loin, chuck and round, as well as brisket, short plate and flank. Each of the four major primals has distinct seasonal price patterns that are the net effect of various beef products that are derived from the primal.

The rib primal is the highest value primal on average and consists primarily of the ribeye in various fabrication specifications (boneless versus bone-in, etc).

For example, the boneless ribeye (IMPS* 112A) has a seasonal pattern that includes a lower peak in May at 11 percent above average and the highest peak in November, 13 percent above average, with a seasonal low in January of ten percent below average. Ribeye prices thus tend to vary about 23 percent from high to low during the year. The rib primal in total varies by 14 percent from a June peak nearly eight percent above average to a January low about six percent below average.

The loin primal is more complicated with several products originating in the loin primal, each of which has different seasonal price patterns. The loin primal overall has a seasonal price range of 26 percent varying from a seasonal high in May and June 14 percent above average to an October low about 13 percent below average. The tenderloin (189A) is the highest value

beef wholesale product with a seasonal pattern that varies by 18 percent from a seasonal peak 12 percent above average in November to a seasonal low about seven percent below average in September. This pattern contrasts sharply with the strip loin (175) which has a very wide seasonal price range averaging 57 percent from a May/June peak about 36 percent above average to a November low about 21 percent below average. Sirloin products such as the bottom sirloin flap (185A) and tri-tip (185D) have seasonal patterns generally similar to strip loins.

End primals (chuck and round) generally have very different seasonal patterns to middle meats with less seasonal variation compared to rib and loin primals. The round primal varies by nine percent from a peak in January six percent above average to lows two to three percent below average from July through December. The round includes numerous products, such as inside round (169) that peaks in March about seven percent above average with a seasonal low in September about seven percent below average. Outside round (171B), however, has a seasonal peak in January 14 percent about average with a minor peak again in October and a seasonal low in April eight percent below average.

The chuck includes a broad set of products that vary widely in value and seasonal patterns. For example, the top blade (114D), source of Flat Iron steaks, ranges from a seasonal high seven percent above average in May to a February low six percent below average. The clod (petite) tender (114F) ranges from 38 per-

cent above average in April to 20 percent below average in September/October. The chuck roll (116B) ranges from ten percent above average in October to a low seven percent below average in July. The overall chuck primal varies only seven percent from a January peak four percent above average to two percent below average from July to December.

The beef values that cattle producers ultimately see as determinants of cattle prices are the result of a diverse set of beef products with widely ranging values and seasonal patterns. Many beef product values vary sharply at various times of the year as a result of seasonal demand and supply influences.

Page 12

Livestock Market Digest

October 15, 2019

Facts Matter: Lanny Davis Delivers Passionate Address at SW Communities Coalition Gathering

BY THE EDITORS

“F

acts matter. The truth matters. Dedication to principle, no matter what,” said Lanny Davis, Southwestern Communities Coalition advisor as he addressed a packed house at Butterfield Station in Benson, Arizona. A group of more than 100 people were on hand to show their support for property rights, environmental stewardship and economic growth – pillars of the Southwestern Communities Coalition’s mission.

“We are united in this organization because we believed we had an idea. This was not about a top-down development. This was about a bottom-up, grassroots movement of people. Not financiers of abusive litiga-

tion to stop all development,” Davis continued. “And this room represents the people. We are the people and the answer to the lies vs. facts. And especially the answer to surrendering rather than sticking to principle and fighting like Jim Chilton.” Davis referred to the now famous court case of Jim Chilton v. Center for Biological Diversity Inc. in which the plaintiff, James K. Chilton Jr. of Chilton Ranch and Cattle Co. sued for libel and defamation and won.

“Malicious lie – that’s what the jury said the Center for Biological Diversity was responsible for in defaming and smearing Jim Chilton,” Davis said. “We’re fighting people who misuse the courts; [who are] not about finding the truth, but about a goal of stopping people from developing and growing and keeping

their children at home rather than moving away.”

Davis then spoke about his views on environmental stewardship and the private landowners who are best equipped to advocate for and carry out true conservancy and management of the Southwest’s wildlife and critical habitat.

“Who could be a greater environmentalist than people who love the land so much?” said Davis. “We do not have to choose between the environment and economic growth and jobs and prosperity and the future of our children. That is a false choice.”

Mr. Davis is a well-known attorney. He served as special counsel to President Bill Clinton and served on the Privacy and Civil Liberties Oversight Board, appointed by President George W. Bush.

The Gila and San Francisco Rivers are Not Wild and Free Flowing

BY HOWARD HUTCHINSON

K

endra Chamberlain’s, “A win for the state’s last wild river” article in the

NM Political Report contains repetitions of many misleading talking points from the proponents of the Gila wild and scenic river designations. This often repeated fiction is summed up in

the following quote, “The Gila River itself, on the New Mexico side of the New Mexico-Arizona border, is completely free-flowing,” Keefe said. “It’s the last completely free-flowing river in

New Mexico. That’s why this is such a big deal.”

Reporters and the public should verify information distributed from any source rather than just blindly repeating slogans and press releases. That the Gila is the last free flowing river is just one of the myths promoted.

While falsehoods after multiple repetitions may find common acceptance they never become the truth. The Gila and San Francisco rivers are beautiful and home to a high diversity of species, including humans, which access and use their waters.

The San Francisco river begins in Arizona as a series of small creeks. It’s first stop is the Luna Lake dam just a mile before the New Mexico line. A few miles downstream the river is diverted into the 1892 Luna Irrigation Ditch. After numerous deliveries to fields and groundwater wells the river dives through a box canyon where it slows at a dam that generates electricity for a small community.

The river then waters livestock before it reaches the Village of Reserve where domestic and municipal wells draw water for families, schools, medical clinic and businesses. The middle and lower Frisco ditch companies then divert water to several parciantes. Between Reserve and Alma most of the river dries up between June and September excepting a few flows in response to monsoon rains.

Where the highway 180 bridge crosses over the river begins one of five more ditch diversions before joining the Gila river back in Arizona. There are also several hundred wells that tap the river water in the Glen-

wood area.

The Gila River isn’t wild and free flowing either. At the Gila Cliff Dwellings on the West fork of the Gila River begins several irrigation diversions as well as a number of government, private and business wells. The dam on Sapillo Creek holds Lake Roberts. Sapillo is a significant tributary of the Gila. The dam and multiple diversions are above the Wilderness. Another dam at the head of the Middle Fork of the Gila holds Snow Lake.

The East, West and Middle forks of the Gila gather together just above the wilderness.

These upper tributaries provide water for grazing allotments.

Where the river tumbles out of the wilderness it flows into the Cliff-Gila valley. There, several diversion dams and municipal, domestic and commercial wells divert water to residential, industrial, agricultural and mining enterprises.

Proponents of the designations are responsible for the closing down of the logging industry, beneficial forest management, and access to our national forests. They are also behind the introduction of the Mexican wolf, efforts to close mines, elimination of hunting and trapping and opposition to the region’s access to the only new water available to New Mexico. Why would anyone believe the proponents intentions for the designations are benevolent given their past history?

Howard Hutchinson is Chairman of the San Francisco Soil and Water Conservation District, a member of the New Mexico CAP Entity and has been engaged in the effort to restore water rights to New Mexicans lost in the 1960’s lower Colorado River adjudications since 1973.

P.O. Box 7458 Albuquerque, NM 87194 505/243-9515 Fax 505/998-6236 www.aaalivestock.com

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