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Dr. Tom Field Shares His Vision for the Beef Industry at the Oklahoma Cattlemen's Convention

It is all about attitude, claims Dr. Tom Field of the University of Nebraska, when it comes to dealing with change in the industry. Although change is nothing new, Field says that beef producers work in tradition and it is understandable why people would be hesitant to address an evolving consumer base. Dr. Field says the change the industry is facing is not about giving up its mission or core values, but rather improving and advancing protocols, practices and technologies.


"We have a premium product," Field said, "so let's behave like we have a premium product."


According to Dr. Field, even during challenging times in the marketplace, consumers will always find ways to enjoy premium experiences. He says that while we should be careful not to let prices get much higher than they already are for the product, consumers are sticking with the industry - hungry for beef and willing to pay for it.


The best feature about the product he says, is the fact that it is available fresh. On the other hand, though, he says there are several areas that are lacking and uninspiring. These areas include, packaging, developing quicker access and preparation, even increased spending for promotion.


"When I look at other companies and their marketing and R&D investment compared to the beef industry, a dollar is like a participation ribbon. We're participating with that, but we're not moving," Field said. "I'm on the high-end compared to most folks. I sure ought to be putting five to ten bucks a head back into my industry. Certainly, at least two to three bucks."


Dr. Field asserts that change is imperative to stay ahead in the market with consumers that are never consistent. However, he clarified that change must be done collectively. His opinion is that producers need to think and work like artisans crafting a premium product, and consider how it fits into the dietary choices of consumers. He pointed out that although the consumer base is very segmented, there is also tremendous opportunity for innovation within that segmentation.


AFR's Sam Knipp and I caught up with Dr. Field during the OCA convention. Listen to our full conversation.

Lloyd Ely of Duncan Named 2016 Cattleman of the Year by the OCA- Blayne Arthur, Scott Biggs and Debbie Wedel Also Honored

 

There was a lot of excitement in the meeting rooms and the hallways at the Embassy Suites in "South Moore" this past weekend- with the OCA holding their convention and trade show for the first time in the facility. One of the highlights of the 2016 Convention was the announcement on Friday night of the 2016 Cattleman of the Year. The 2016 recipient of this award given by OCA was Lloyd Ely of Duncan.    


Ely knew at an early age that his calling in life was to care for the land God had provided. Lloyd was born and raised north of Velma on the same property that is part of Sugarloaf Ranch today. His father, A.V. "Doc" Ely, started out as a sharecropper on the land in 1929. He slowly acquired land until his death in 1999.

The Sugarloaf Ranch was established in 1959 as Lloyd and his wife Sheila bought a thousand acres of land just north of Velma. A Hereford cow-calf herd was the foundation of the ranch. Lloyd harvested wheat and grew alfalfa for hay. Sheila has maintained meticulous operation records from the beginning. In 1991, Lloyd and Sheila were honored with the Oklahoma Farm Bureau Farm Family of the Year award.  

Click here to read more about the Ely family and the legacy they have established for generations to come. 

Our Top Ag Story of the morning on the OCA convention also contains Q&A that we did with OCA President Charlie Swanson, and mention of several other honors handed out on Friday.

Besides the Cattleman of the Year- three other honors we will mention this morning-

Debbie Wedel of Yukon was selected as the Oklahoma Cattlewoman of the Year- she was honored by the Oklahoma Cattlewomen at their Awards Luncheon.


The OCA presented their 2016 Legislative Appreciation Award to State Representative Scott Biggs, who serves State House District 13 in and around the Chickasha area. Biggs has been one of the Legislative leaders in passing the underlying legislation for State Question 777, the Right to Farm Constitutional Amendment proposal.


The Organization also presented their 2016 Distinguished Service Award to Blayne Arthur for her years of work as the Deputy Commissioner of Agriculture at the Oklahoma Department of Agriculture. Arthur has recently made a career path change- moving from the ODAFF to the Oklahoma 4-H Foundation, where she has taken on the job of Executive Director of the Foundation.
   

Latest Cattle on Feed Report Indicates a "Leaner and Meaner" Industry, Dr. Derrell Peel Explains

According to the the latest USDA Cattle on Feed report, the number of cattle and calves on feed was up 1 percent over July 1, 2015, and OSU Extension Livestock Market Economist Dr. Derrell Peel says the report came in friendlier than expected.


The inventory included 6.87 million steers and steer calves, down 1 percent from the previous year. This group accounted for 66 percent of the total inventory. Heifers and heifer calves accounted for 3.49 million head, up 5 percent from 2015. Placements in feedlots during June totaled 1.53 million head, 3 percent above 2015. Net placements were 1.46 million head. 


Radio Oklahoma Network's Ron Hays caught up with Peel at the Oklahoma Cattlemen's Association Convention in Norman on Saturday after the release of the report Friday afternoon. Peel says feedlot inventories are slowly but surely building, but it's taking some time because of the increased rate of turnover.


"This continues the trend of year-over-year increases in placements, and that's going to continue for many more months," he says. "But at the same time, because we have really got these feedlots much more current and we're continuing to get them current, we're in pretty good shape to handle those larger numbers as they come at us in the second half of the year."


Marketings of fed cattle during June totaled 1.91 million head, 9 percent above 2015. Peel says the industry has really started to rebound after "a heck of a wreck" last fall when cattle prices plummeted.


"We've done a remarkably good job this year, having rebalanced prices and given feedlots an opportunity to look at being able to buy more feeder cattle with at least a possibility of a margin that works," he says. "We've really converted this thing so even though we're in a larger numbers situation right now, I'm very encouraged that the industry is leaner and meaner right now than it has been for about two or two-and-a-half years."


Click here for a link to the full report and to listen to Peel talk more about the cattle industry, including carcass weights and cow herd numbers, during the latest Beef Buzz. 

Federal Reserve of KC Says Early Indications Point to Some Borrowers Struggling to Repay Loans

The need for farm lending remained high in the second quarter of 2016, driven by ongoing demand for operating loans, according to the Federal Reserve's Agricultural Finance Databook. Respondents to the Survey of Terms and Bank Lending to Farmers indicated the total number of non-real estate loans made to farmers in the second quarter increased 6 percent from a year ago.
 

The prolonged environment of robust lending activity, amid persistently weak profits in the farm sector, has led to slight reductions in the performance of agricultural loans at commercial banks. According to first quarter commercial bank Call Report data, the share of outstanding loans for farm production that were 30 to 89 days past due crept closer to the 10 year average from 2005 to 2014, while the share of non-accruing loans has edged up the past two quarters and loans 90 days or more past due remained relatively steady. Although the share of troubled loans has remained low from a historical perspective, the increase in loans 30 to 89 days past due could be an early indication that borrowers are struggling to repay loans in a time of tight profit margins.
 

In addition, the share of net charge-offs at agricultural banks also edged up. The first quarter was the first in recent years in which the share of net charge-offs at agricultural banks was roughly equal to that of its non-agricultural peer group.
 

Despite the slight declines in loan performance and heightened risk, however, profitability at agricultural banks generally has remained strong.


The report concludes by saying "The lending environment in the farm sector has remained active despite ongoing indicators of growing risk. Demand for short-term financing has continued to increase during a period of persistently weak profit margins while past dues have crept higher in recent quarters. Banks appear to have taken some measures to manage potential risk of further pressure on farm finances; however, a protracted period of high loan demand and weakening credit conditions could intensify the challenges in the farm sector and at agricultural banks."

Click here for a link to the report, complete with graphs explaining the details of the Databook.

American Soybean Association, Monsanto Applaud European Approval of New Biotech Traits

American Soybean Association (ASA) President and Greenwood, Del., soybean farmer Richard Wilkins welcomed news out of Brussels Friday that the European Union (EU) has approved three outstanding biotech soybean traits for import and processing. The approved traits include the Xtend dicamba-tolerant soybean and Vistive Gold high oleic soybean products from Monsanto, and the Balance GT FG72 soybean from Bayer CropScience. In a statement, Wilkins welcomed the action of the EU, while noting that improvements still are needed in the timeliness of EU approvals. The three soybean events had received positive scientific opinions from the European Food Safety Agency over a year ago, and had been waiting for final approval by the EU Commission since January. 


"We are very relieved to see these three traits approved for import into the European Union, as today's announcement represents a clearing of an important hurdle for the commercialization of these valuable products in the U.S. In Europe, the approval means that the EU's livestock and feed industry, which is more than 70 percent dependent on imported feed, can get the high-quality protein it needs. In the U.S., American farmers need an ever-increasing range of tools to tackle the challenge of resistant weeds that now impact nearly every soy-growing state. Similarly, with the continuing move away from trans-fats in American diets, farmers need additional tools to produce soybeans that meet that market demand as well."

Click here to read Wilkins' complete statement.

Monsanto Company also hailed the decision allowing for the import and food/feed use of Roundup Ready 2 Xtend soybeans into the European Union.
              

"We've seen great demand from growers for Roundup Ready 2 Xtend soybeans," said Brett Begemann, Monsanto President and Chief Operating Officer. "Farmers are telling us they're looking forward to the benefits of the full Xtend Crop System, including over-the-top use of dicamba and glyphosate. We're excited to give Canadian growers this opportunity in 2017, along with US growers pending final EPA approval."

Click here for more on Monsanto's reaction to the decision.

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