The cattle industry is wondering how wide of an impact the apparent cattle marketing fraud unfolding this spring will have in cattle country. According to reports from Drovers and Beef Magazine online, upwards of 80,000 cattle may have been involved- and based on the bankruptcy filings of the companies connected to Brian McClain of Benton, Kentucky- there could be $50 to $100 million dollars worth of liabilities that creditors may not find recoverable.

McClain Farms Inc., 7M Cattle Feeders Inc. and McClain Feed Yard Inc. all filed Chapter 7 bankruptcy in the United State Bankruptcy Court for the Northern District of Texas at the end of April. Farm Credit Associations in Texas, Oklahoma and Kansas, Lazy J Arena in Stillwater, Cactus Feeders Finance LLC, First Capital Bank of Texas, Caterpillar and Rabo AgriFinance are just a few of the over 100 creditors owed by the entities. Estimated assets range from $1 million- $10 million while estimated liabilities range from $50 million- $100 million.

The AMS issued a release on May third- as they search for anyone that may have been caught up in selling their cattle and not getting payment- saying “The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) is notifying anyone who sold livestock to and has not received payment from McClain Farms Inc., 7M Cattle Feeders Inc., McClain Feed Yard Inc., or Brian McClain to file Dealer Trust claims promptly.

“Unpaid livestock sellers may be protected under a provision of the Packers and Stockyards Act of 1921, that requires all livestock purchased by a dealer in cash sales, and all receivables or proceeds from such livestock to be held in trust for the benefit of all unpaid cash sellers."



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Beef exports totaled 120,495 mt in March, down 5% from a year ago. Export value fell 17% to $892.6 million, but both volume and value were the highest in five months. Through the first quarter, beef exports were down 8% year-over-year to 326,494 mt, valued at $2.35 billion (down 22%).

 “U.S. beef exports faced considerable headwinds late last year and at the beginning of 2023, but the March results show some encouraging trends,”  said USMEF President and CEO Dan Halstrom. “Most Asian markets showed renewed momentum in March, while exports continued to trend higher to Mexico, the Caribbean and South Africa.”

March exports of U.S. pork were the largest since May 2021, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). While below last year’s high volume, March beef exports were the largest since October.

March pork exports totaled 260,195 metric tons (mt), up 17% year-over-year and the ninth-largest volume on record. Export value was also ninth largest at $724 million, up 18% from a year ago. These results capped a strong first quarter for U.S. pork as exports reached 716,691 mt, up 14% from a year ago, valued at $1.96 billion (up 15%). 

Jarold Callahan Sees Upcoming Cattlemen’s Conference to Have a Tremendous Impact on the Cattle Industry

In this episode of beef buzz, I am talking with Jarold Callahan of Express Ranches about Cattlemen’s Conference coming up on May 24 and 25 in Stillwater, Oklahoma, at Oklahoma State University.

As board chairman of Cattlemen’s Congress, Callahan has been instrumental in bringing together the parties to work on Cattlemen’s Conference.

Themed “Blueprint for the Future,” the conference will look at past industry trends, where the industry is today, and what the future needs to hold.

This national event, Callahan said, is sponsored by OSU Animal Science Extension, The Noble Research Institute, and Cattlemen’s Congress.

“We have combined to try to do an event that will be pretty much-cutting edge and will talk about genomics, will talk about cattle type, will talk about the future, will talk about grass management, and sustainability,” Callahan said.

Callahan said the conference will also feature conversations about ethics in the show ring, fitting practices, and more.

On May 2, Congressman Josh Brecheen introduced the Deregulating Restrictions on Interstate Vehicles and Eighteen-Wheelers (DRIVE) Act, which would prohibit the Federal Motor Carrier Safety Administration (FMCSA) from implementing any rule or regulation requiring vehicles over 26,000 pounds that are engaged in interstate commerce to be equipped with a speed limiting device set to a maximum speed. The rule would negatively impact both the agricultural and trucking industries and include vehicles like semi-trucks, livestock trailer/truck combos, grain trucks, and other large commercial vehicles. See more examples of vehicles impacted here.

“This overreach by the Biden Administration has the potential to negatively impact all facets of the agricultural and trucking industries. I know from experience driving a semi while hauling equipment, and years spent hauling livestock, that the flow of traffic set by state law is critical for safety instead of an arbitrary one-size-fits-all speed limit imposed by some bureaucrat sitting at his desk in Washington, D.C.,” said Congressman Josh Brecheen. “This rule will add one more needless burden and Congress must stop it. For example, if a rancher is transporting cattle in a trailer across state lines, under this rule, the federal government would require a speed limiter device when above 26,000 lbs. Out-of-control bureaucrats are trying to impose ridiculous regulations on Americans who are trying to make ends meet.” 

FMCSA’s proposed rule to require speed limiters on commercial vehicles with a gross weight over 26,000 pounds will add extra transportation costs to the private sector and make our roads less safe. In fact, one study found that the “The frequency of interactions by a vehicle traveling 10-miles per hour below the posted speed limit was found to be 227% higher than a vehicle moving at traffic speed.” 

Senator Roger Marshall Emphasizes Role of Crop Insurance for Producers and Consumers

At the National Association of Farm Broadcaster’s Washington Watch event in Washington, D.C., the group of farm broadcasters had the chance to talk with Senator Roger Marshall. Farm Director KC Sheperd is featuring comments from the Kansas Republican talking about farm bill education, nutrition, and crop insurance.

As farmers and ranchers are businessmen and businesswomen, Marshall said they need up-to-date reports.

“You cannot give a farmer or rancher too much information,” Marshall said.

Marshall said he sees the challenges regarding how the EPA is slow to adopt chemistry and new technology. It is important for producers to keep the EPA (Environmental Protection Agency) up to date for their own benefit, he added.

“There are three carbon sinks out there, right, three big carbon sinks,” Roger Marshall said. “The ocean, trees, and soil. So, if you want me to continue to no-till farm on our ranch, then we need these chemicals to do that. I just don’t think many people with EPA understand that you have to trade one for the other and see which is the maximum benefit. So, that is what we need to be sharing is that part of the story.”

A case of equine herpes myeloencephalopathy was reported at a Tulsa horse show in April.

As exhibitors gear up for a busy show and rodeo season this summer, Oklahoma State University Extension animal health specialists advise owners to closely monitor the health of their horses and implement smart biosecurity measures to safeguard against infection.

“Equine herpes myeloencephalopathy is the neurologic form of equine herpesvirus-1, which is a very common virus within our equine population,” said Dr. Rosslyn Biggs, clinical assistant professor of veterinary clinical sciences and OSU Extension director of continuing education. “We’re particularly concerned because in most instances, there’s a 30-50% mortality rate if a horse starts exhibiting neurologic signs.”

Clinical signs of a neurologic issue could include:

• Incoordination
• Instability
• Lethargy
• Loss of tail tone and hind limb weakness
• Head tilt
• Urine dribbling

Kim Anderson Predicts Oklahoma Will Produce Slightly Above Wheat Production Estimates

One of the regular features on SUNUP is the analysis of Oklahoma State University Extension grain market economist Kim Anderson. During this week’s edition, Anderson talks about the latest in the grain markets and Oklahoma’s wheat production.

Anderson said Oklahoma’s wheat production estimates revealed that wheat production in the state in 2023 would be somewhere around 54 million bushels. That estimate, Anderson said, could be a little low.

“A couple of weeks ago, when our crop conditions were not quite as bad as they are right now, I had that production up in the 70-million-bushel range,” Anderson said. “However, our crop conditions went from about 45 percent down to 65 percent for the poor to very poor conditions.”

Comparing this year’s conditions to last year’s during harvest, Anderson said conditions last year were not near this poor.

“Last year we produced 69 million bushels,” Anderson said. “You would expect production lower than that. However, we had a ten percent increase in wheat planted acres.”

Looking at the overall crop for U.S. hard red winter wheat, Anderson said he expects production to be similar to last year.