High-Priced Grain Supplies Worrisome for Livestock Producers Trying to Rebuild Herds, Close Says

With corn prices hitting an all-time high this week, Don Close, vice-president of Rabobank's Food and Agribusiness Research and Advisory Group says there's ample reason for worry by confinement livestock producers.

In the second part of a two-part Beef Buzz interview, Close said he believes there will be sufficient forage for cattle in non-confinement operations this winter, but tightening grain markets are worrisome. (Click here for the current Beef Buzz.)

"I have much more concern for the confined animal industry with broilers, hogs, and cattle feeding with our available supply of feed grains for the coming year. It's going to be much more of a bigger issue than will be roughage for outside cattle."

He said sourcing grain is going to be a big problem.

"There's going to be keen competition for available supplies of grain, very likely to levels unlike anything we've seen in modern history. The 900-pound gorilla in the room in that whole debate is the ethanol issue and just how much grain will be consumed how much will they slow down with distillers' margins upside down. There's a huge uncertainty on the feed grain side."

Click here for Part I of our Beef Buzz interview with Don Close. 

Vilsack Announces New Drought Assistance, Designates 218 Additional Counties as Disaster Areas 

Agriculture Secretary Tom Vilsack announced two new pieces of disaster assistance for farmers and ranchers impacted by the nation's worsening drought. First, Vilsack is expanding emergency haying and grazing on approximately 3.8 million acres of conservation land to bring greater relief to livestock producers dealing with shortages of hay and pastureland. Second, the Secretary announced that crop insurance companies have agreed to provide a short grace period for farmers on insurance premiums in 2012. As a result, farming families now have an extra 30 days to make payments without incurring interest penalties on unpaid premiums.

Vilsack also signed disaster designations for an additional 218 counties in 12 states as primary natural disaster areas due to damage and losses caused by drought and excessive heat. Counties designated today are in the states of Arkansas, Georgia, Iowa, Illinois, Indiana, Kansas, Mississippi, Nebraska, Oklahoma, South Dakota, Tennessee, and Wyoming. More than half (50.3 percent) of all counties in the United States have been designated disaster areas by USDA in 2012, mainly due to drought.

Click here to find out more about the new drought assistance programs.

As Chairman Lucas Gets Ready for Floor Time- National Ag Organizations Don't Oppose Livestock Disaster Measure- But Don't Like It 

The latest word on HR 6233, the last minute Livestock Disaster Package, will go forward today under the sponsorship of House Ag Committee Chairman Frank Lucas- and while at first, it looked like it would require a 2/3 majority vote- the rule has been modified by leadership where simply a majority vote will be needed to get it across the House floor intact.  Debate will be limited to one hour- no amendments- and it now appears that the top Democrat on the House Ag Committee, Collin Peterson, will support the measure- Politico.Com reporting he will do so out of loyalty to Congressman Lucas. That could patch up a rough spot in their relationship that has developed as Congressman Lucas, playing the nice guy, has worked with his leadership as they have deliberately avoided debate and a vote on the House Ag Committee's farm bill.  

After the passage of the 2012 farm bill proposal by the Committee a couple of weeks ago, Congressman Lucas may be feeling more and more like swiss cheese- as folks and groups have taken shots at him from all directions on this Committee measure, as well as the now dead farm bill extension and now this stand alone Livestock Disaster plan.  Farm and conservation groups are fuming over HR 6233 which will be voted on later today- the dozen groups that signed off on a letter that we describe below saying the vote is unneeded because all of this stuff is in the Committee five year plan- and that is what the House should be working on instead.  Conservation groups are mad because of the funding plan- which pulls money from EQIP and CSP- sorta.  Congressman Lucas explained why the money was coming from this part of farm law to Congressman McGovern of Massachusetts yesterday in the Rules Committee- saying appropriators had already effectively extended those programs by six years to raid dollars from them for whatever they deemed more important- this was basically an outsmart the money people ploy to grab those dollars back for agriculture in a practice called "chimping." (CHIMP- CHanges in Mandatory Program Spending)We have the video of the Rules Committee with Congressman Lucas answering questions- click here to check it out.    Floor debate on the Livestock Disaster Assistance measure will be happening between 11 am and noon central time- to be seen on CSpan.   

The dozen agricultural groups that include the American Farm Bureau, the National Association of Wheat Growers and others say that they "support finding a path forward to reaching agreement on a new five-year farm bill before current program authorities expire on Sept. 30. We are disappointed that the House Republican leadership has decided to not move forward with the House Agriculture Committee's bill before adjourning for the August recess. That bill would provide the disaster relief our farm and ranch families need at this time.

"We do not oppose passage of a disaster assistance bill, but note that almost identical provisions to retroactively extend these four programs are included in the Senate-passed farm bill and the bill reported by the House Agriculture Committee." 

You can read more of the ag groups' statement and see a list of the signatories by clicking here. 

Oklahoma Beef, Pork Industry Leaders Hail New OSU Animal Science Head

The Oklahoma Cattlemen's Association and the Oklahoma Pork Council say they are excited to welcome Dr. Clint Rusk to Oklahoma State University as the new Department Head in Animal Science.

"Oklahoma's cattle industry is the largest segment of our state's agricultural economy," said Scott Dewald, executive vice-president of OCA. "It is critical to have leadership in the Animal Science Department at OSU that not only recognizes the role the cattle industry plays in our state, but also embraces it. Dr. Rusk has a tremendous background in the cattle industry and his experience will be invaluable."

"The challenges facing Oklahoma's pork producers and all livestock producers in the state are growing almost daily," said Roy Lee Lindsey, okPORK executive director. "We need a dynamic Animal Science department at OSU to help us meet those challenges. The first time you meet Dr. Rusk, you see and hear the passion he has for agriculture and for livestock production. That passion will help us meet our challenges head on."
 

Implanting 'the Single Most Profitable Management Practice That Stocker Producers Can Use'

Several years ago, the Noble Foundation conducted a study to evaluate various implants for use in stockers grazing wheat and rye pastures. Implants are comprised of hormones compressed into pellets that are placed under the skin of the animal's ear to stimulate additional weight gain and efficiency. Implants are highly effective, generally producing a 5 to 15 percent improvement in average daily gain (ADG). Implants improve the efficiency of beef production, increasing profit for producers and decreasing costs for consumers.

Two key take-home messages can be gleaned from this study. First, all the heifers that were implanted gained faster than the non-implanted controls by 12 percent (0.23 pound per day). It is imperative that stocker operators implant their stocker calves. Implanting is likely the single most profitable management practice that stocker producers can use. At 2012 market prices, this additional gain would be worth in excess of $30 per animal. Second, it is important to have an active implant in the cattle from day one. The calves in which we delayed implanting did not fully compensate in the latter half of the grazing season. Reimplanting stockers grazing wheat and rye pastures was not beneficial. 

For more information and links to the study data, please click here.

Oklahoma Beef Quality Assurance Program Award Winners Announced

The Oklahoma Beef Council honored two companies and several individuals with awards from the Beef Quality Assurance Program. Funded by the Beef Checkoff, the BQA program promotes good management practices for cattle producers in an effort to strengthen consumer confidence in beef as a wholesome, high quality product. Every year the Oklahoma Beef Council honors those individuals and organizations that have dedicated their time and effort to ensure the success of the Oklahoma BQA.

The 2012 Oklahoma BQA Outstanding Service Award went to Priefert Ranch Equipment and Shawnee Feed, who believe in BQA and have demonstrated it through their financial support. The program continues to gain strength and momentum through industry partners such as these.

The 2012 Oklahoma BQA Outstanding Trainer Award went to Aubie Keesee with the Oklahoma Cooperative Extension Service (OCES). Keesee is the Extension educator for Hughes County and is a certified BQA trainer. He has attended numerous BQA trainings and spent countless hours developing Oklahoma's new Youth Beef Quality Assurance (YBQA) program.

Click here for more BQA Award winners.

Death tax Relief Extended by House Vote- NCBA Cheers

The U.S. House of Representatives voted Wednesday to extend the current tax code for another year. This includes keeping the estate tax, known as the death tax, at its current level of 35 percent for estates worth more than $5 million per individual and $10 million per couple. The Death Tax fix for another 12 months is a part of H.R. 8, the Job Protection and Recession Prevention Act. This legislation provides a one-year extension of existing tax rates, preventing a tax hike on January 1, 2013. It passed the U.S. House of Representatives on Wednesday with a 256 to 171 vote.

Tackling the death tax is the top priority for the National Cattlemen's beef Association- the oldest and largest beef industry organization in the United States. The death tax directly affects family-owned small businesses, such as farms and ranches, because of the burden it places on families hoping to pass their business on to the next generation. 

Click here to read more about this latest effort to avoid a massive tax increase in a variety of areas on January first of 2013.