Whether the Republicans can accomplish federal tax reform is still an open question. If enactment does occur, it seems more likely the changes will be effective in 2018 rather than retroactively in 2017. As the process plays out in Congress, here are some points to consider if passage looks likely.
In January 2013, USDA’s Farm Service Agency (FSA) launched the Direct Farm Operating Microloan program to better serve the credit needs of small farms, beginning farmers, farmers from socially disadvantaged groups (women and minorities), and veterans.
It also violates the predictions, made early last week, that trade would be fully steady to up. Given that packers had a holiday-shortened week for this week’s full production schedule, analysts expected that the leverage would lie in the hands of cattle feeders.
With July 4 beef purchases complete, wholesale beef prices on June 26 had dropped sharply the previous 10 days. Beef and cattle markets have defied gravity by staying stronger longer than most expected this spring.
When the tides change, they change quickly. In cash cattle, price power has shifted from cattle feeders to packers, and in beef prices, surprising resilience has given way to record-setting declines. And yet, the futures markets seemed coolly oblivious last week.
Despite gaining access to what will likely become one of the world’s largest importers of beef, the trade deal does come with its caveats. Any beef that is shipped to China from the U.S. must meet a few requirements. First, all beef must be less than 30 months of age.
Cash fed cattle continued their slide last week with live trade at $121-123 and northern dressed trade between $193-195. It was a bad week on the futures market with losses booked every day. The news that JBS’ Five Rivers Cattle Feeders was up for sale appears to have spooked traders for a while.
“All hell broke loose in direct trade yesterday,” noted Andrew Gottschalk of Hedgers Edge last Thursday morning. The Fed Cattle Exchange started Wednesday’s trade off valiantly with prices of $136-137 for delivery of cattle up to two weeks out. Those prices were steady with the prior week’s trade.
The two much-anticipated events were met with a flurry of announcements of approval and praise from industry groups. Groups such as the National Cattlemen’s Beef Association, the U.S. Cattlemen’s Association, the North American Meat Institute, the U.S.
It’s a unique time in global beef markets with a wide range of issues providing challenges and opportunities among many of the major beef exporting countries. USDA-FAS (Foreign Agricultural Service) estimates published in April project the top five beef exporting countries in 2017, in order, as India, Brazil, Australia, the U.
Beef exports reached 99,786 metric tons (mt) in April, up 13 percent from a year ago, valued at $550.4 million, up 14 percent. For January through April, beef exports were up 14 percent in volume (392,001 mt) and 18 percent in value ($2.16 billion) compared to the same period last year.
While cash fed cattle and feeder cattle, and wholesale beef overwhelmingly continued their upward motion, futures stalled out last Tuesday with limitdown losses in feeder contracts. However, strong beef demand and good fundamentals in the cattle and beef complexes seem to be keeping things up.
Last week, the over six-decadeold tradition of the WLJ Tour was alive and well. Over 120 ranchers and WLJ readers joined us for the 2017 Big Horn Ranch Tour in Wyoming to check out a series of large, progressive ranches. All the ranches were different and as unique as the country they ran in, but all had one thing in common; they were big.
Though mid-week cash prices fell to $129-133 live following the Fed Cattle Exchange, by Thursday, live prices increased slightly to $130-136. Dressed prices on Thursday were $206-210. Despite this minor intra-week recovery in the cash prices, they were generally steady with the prior week’s trade and down from recent week’s.
On Oct. 12, 2016, 50 percent (chemical lean fresh) trim set its recent low of $31.62/cwt., roughly half of what prices were during the height of the “pink slime” controversy in 2012. Since then, the market gained impressively, setting a new record with a national weighted average of $203.
Congress has given some unique privileges in the tax code to farmers. The most important is undoubtedly the ability to use the cash method of accounting. Income is only taxed when converted to cash. All other businesses that deal in goods, rather than services, must use the accrual method.
March exports accounted for 12.5 percent of total beef production and just under 10 percent for muscle cuts only, each up slightly from last year. For the first quarter, the percentage of total beef production exported was down slightly from a year ago (12.
For the first three months of the year total cattle imports from Mexico are up 24.3 percent while imports from Canada are down 18.5 percent leading to a combined year-to-date cattle import total up 5.6 percent compared to the same period one year ago. Total annual cattle imports from Mexico and Canada in 2016 were 1.