Peel Predicts Another Strong Year for Cattle Producers in 2015 

As we begin the new year, Oklahoma State University Extension Livestock Marketing Specialist Dr. Derrell Peel provides his outlook for the year ahead. He said if you look at where we have been in 2014, that is a pretty good barometer of what will be happening in the cattle market for 2015.


"I think by in large it is the same set of factors we have been watching this year," Peel said. "To some extent, I think it is more of the same tendencies from a supply standpoint. We will see reduced slaughter, we will see reduced beef production as a result of that, even with some likely increase in carcass weights on average in 2015."


I featured Peel on the Beef Buzz as heard on the Radio Oklahoma Ag Network. In 2015, Peel looks for more supply pressure as feeder calf supplies continue to tighten. He is predicting prices across the board will average higher in 2015. That includes feeder cattle, fed cattle and beef prices at the wholesale and retail levels, but he doesn't think the industry will see a large price increase through the year, like 2014. Peel forecasts we will maintain these levels and push them a little higher at times through the year. As a result prices will average higher for 2015.


One of the factors that may determine how much higher beef and cattle prices may go will be determined by how many females are held back. Peel believes herd rebuilding is taking place, but how quickly is still unknown.  Click or tap here to listen to my full interview with Peel on the outlook for 2015.    

Dan Childs, Noble Foundation Senior Consultant, Agricultural Economist


Profits from grain and livestock enterprises generally impact the rental rates on lands that are used to grow these commodities. During highly profitable times, rental rates for land usually trend higher. Likewise, when profits are lower, rental rates will trend lower. How quickly rental rates adjust depends to a certain degree on how fast profitability changes for the underlying commodity.


A good example of rental rates adjusting to profitability can be observed for corn. General profitability of growing corn during the period of 2008 to 2013 trended stronger. In the state of Illinois where corn is commonly grown, the University of Illinois reported1 rental rates moved from an average of $152.72 per acre in 2008 to an average of $196.13 in 2013. This is an increase of about 28 percent.


Current projections are for the profitability of the cow-calf sector to set record highs for 2014. These record profits are also having an impact on rental rates for pastureland where cows are grazed.  Click or tap here to read more about pastureland leases.   

Registration Deadline Nears for No Till on the Plains Conference

Farmers have only a few more days left to register early for the 2015 No-till on the Plains Conference. The 19th Annual Winter Conference will be held January 27-28, 2015 at the Bicentennial Center in Salina, Kansas. If you register before January 10th, the registration cost is $175. After January 10th the registration fee increases to $225. Spouses can attend for an additional $90. No Till on the Plains Executive Director Steve Swaffar said this year's conference theme is "Unlocking the potential on your farm".


"We tried to bring in speakers and topics that will give producers an opportunity maybe to explore things they have not done in the past, that will increase their production and hopefully will increase their bottomline at the same time while improving soil health," Swaffar said. 


Speakers will address using cover crops to enhance organic matter, increasing microbial activity in soils while lowering input costs with fertilizer and herbicide and pesticide products. The 2015 No Till Conference will feature 32 speakers over two days. Featured speakers include Dr. Fred Provenza, animal behavior expert and retired professor from Utah State University; and Joshua Duckart, holistic management trainer and expert from Bismarck, North Dakota. The 2015 No-Till Conference will also have several sessions featuring no till producers that will share their own experiences from their farm.   Farmers from Nebraska, Kansas, Colorado and Oklahoma that will share their experiences with no-till and soil health practices.  Click or tap here to listen to the full interview  that our own Leslie Smith had with Swaffar about the 2015 No Till Winter Conference.    

Elanco announced Friday it has finalized the acquisition of Novartis Animal Health, creating a new global leader in animal health focused on delivering increased value and innovation to the industry.


The acquisition, announced in April, follows Elanco's purchase of Lohmann Animal Health earlier in 2014. Both strategic investments position the company to offer a more diversified product offering and capabilities to help customers sustain and grow their businesses. This includes the flagship brands customers have come to expect from Elanco, but also a comprehensive portfolio of nearly 300 brands encompassing therapeutics, vaccines, parasiticides, antimicrobials, surgical, enzymes, food safety and more.


"Elanco's acquisition of Novartis Animal Health brings together two strong companies with a passion for serving the customer," said Rob Aukerman, president North American Commercial Operations for Elanco. "We will continue to offer the products our customers trust, while significantly investing in the development of new solutions to our customers' greatest unmet needs."
  

Click or tap here to read more about the future plans for Elanco.

Rising Cost of Agricultural Injuries

A snapshot of the agriculture workforce, the economic toll of worker injuries and the benefits of investing in safety are included in a new graphics-driven fact sheet released by the Agricultural Safety and Health Council of America (ASHCA).


The annual cost of occupational injuries in agriculture is $8.3 billion in medical costs and lost productivity, according to, "Facts 2015 -Be Safe. Be Profitable." The typical cost of one tractor overturn is $1 million.


An effective safety program, however, saves $4 to $6 for every $1 invested, according to ASHCA, a not-for-profit coalition of agribusinesses, producer organizations and safety professionals.  

Click or tap here to read more about the factors that lead to agricultural injuries as well as a link to the 2015 fact sheet from ASHCA.   

Award winning broadcast journalist Jerry Bohnen has spent years learning and understanding how to cover the energy business here in the southern plains-  Click here to subscribe to his daily update of top Energy News.

International Livestock Congress Returns to Houston for 2015 in Conjunction with Houston Stock Show

The 2015 International Livestock Congress - USA will bring together an elite group of livestock and meat industry international leaders to discuss a variety of proactive strategies that address the ever-changing beef industry.


After being held for the last several years in conjunction with the National Western Livestock Show in Denver, The ILC-USA will be held March 4-5, 2015, as the Congress returns to its roots at the  Houston Livestock Show and Rodeo in Houston, Texas.


The International Livestock Congress is a unique global event hosted each year by the International Stockmen's Education Foundation to discuss issues of international importance that affect the future of animal agriculture. This year's program will feature make or break issues regarding "Providing Animal Protein to the World."


"The ILC is unique in that it provides an environment where critical issues facing the beef industry are openly discussed among the global beef community. The future of the global beef industry is dependent on producers and industry leaders coming together and finding that common ground which is so important in moving our industry forward," said Bo Reagan, Ph.D., chairman of the International Stockmen's Educational Foundation.

Click or tap here to read more about the featured speakers at the 2015 ILC in Houston.   

2014 Weather in Oklahoma One Degree Cooler  and Much Drier Than Normal 

According to Gary McManus, Oklahoma State Climatologist with the Oklahoma Mesonet and the Oklahoma Climatological Survey, the year 2014 was cool and dry as a whole, with 2014's statewide average temperature at 58.9 degrees, one degree below normal and the 27th coolest on record. The January-December statewide average precipitation total of 28.47 inches was more than 8 inches below normal and the 26th driest year on record. The 2014 Mesonet precipitation totals ranged from 13.2 inches at Kenton while Clayton had the most with 50.9 inches.

The highest temperature recorded by the Mesonet in December was 75 degrees at Burneyville on the fifth. The lowest temperature, minus 6 degrees, came on the month's final day at Kenton. The lowest temperature of 2014 was minus 12 degrees at Nowata back on January 6, and the highest temperature of 107 degrees came on July 26 at Freedom.    

McManus also reported on Drought being significantly worse by the end of 2014 compared to the early days of the year- you can read more of his analysis of the weather for the year just concluded- and jump over to lots of maps by clicking or tapping here.