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Cattle Market & Farm Reports, Editorials
by WLJ
Oct 9, 2006
Mexico is resuming imports of U.S. dairy heifers, lifting a ban imposed in December 2003 when the U.S. found its first case of bovine spongiform encephalopathy (BSE), Agriculture Secretary Mike Johanns said last week. “My goal is to restore the once-vibrant live cattle commerce between the U.S. and Mexico and to do so in accordance with science-based international guidelines,” Johanns said. He called the agreement on dairy heifers the “first step” in that process. The next step is the resumption of trade in beef seed stock to producers in Mexico. Matt Brockman, executive vice president of Texas and Southwestern Cattle Raiser’s
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 9, 2006
Rest can be death. After spending 10 years in college (I’m a slow learner), not once did anyone say rest—which I call no disturbance—could do bad things to your land. The word over-rest was never mentioned. My focus here is strictly on grasslands. It’s a little known fact, but resting grassland from all kinds of disturbance is the death of millions of acres of what were once healthy grasslands. When I say disturbance, that includes: fire, grazing, insect outbreaks, climatic effect, hoof impact etc. The real principle here is as simple as, “use it or lose it.” I hate to even
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 9, 2006
Ranch properties are still in high demand across the Intermountain West and that is driving prices to record high levels despite stories of a cooling properties market. According to brokers across the area, the inventory of agricultural properties, particularly those of more than 1,000 acres, is in short supply. Kim Stewart, marketing associate with H Bar S Real Estate in Red Lodge, MT, said there is a major shortage of ranches in the $2-5 million category and those available are selling at, or near, asking prices. “Properties in this area haven’t been affected at all by the so-called burst of
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 9, 2006
—Lack of clarity preventing companies from trade. USDA statistics showed last week that no beef has been shipped to South Korea since the border opened. Sources at major packers have said they are concerned about having shipments condemned in the event inspectors find even small fragments of bone in shipments of U.S. beef. Officials with the South Korean agriculture ministry have said they will have a zero tolerance policy regarding any bone fragments in beef products sent overseas. That stand means any product found containing bone fragments could be rejected or destroyed by government inspectors. That is a risk major exporters
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 9, 2006
Japanese consumers who had expected U.S. beef re-entering the country to relieve them of high prices incurred once Japanese officials slammed the door to U.S. beef trade are seeing a reverse effect. When Japan ceased importing U.S. beef, they received the majority of their beef products from other trade partners, especially Australia. Due to the absence of U.S. beef, other foreign products, as well as domestic beef were priced on the high-end, due simply to a limited supply versus high demand. Now that U.S. beef is back in the picture, intensifying competition and adding to supply, prices for beef have
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
National Produce ID System Food safety is, without question, the number one concern for any food supplier. The spinach situation which has unfolded over the past two weeks tells me that we have a breach in our food safety systems. E. coli O157-H7 is no stranger to the beef industry and it’s safe to say it is the beef industry’s public enemy number one. The beef industry has spared no expense in its efforts to contain and eliminate the bacteria from the beef products our industry provides. In the modern age of information technology, it seems almost impossible that spinach growers were subjected
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
— Twin bills could present windfall opportunity in beef marketing. Last week, Reps. Roy Blunt, R-MO, and Earl Pomeroy, D-ND, and 12 other representatives introduced H.R. 6130, the New Markets for State-Inspected Meat and Poultry Act of 2006. According to Blunt, under H.R. 6130, beef, pork, poultry and lamb approved by state inspection agencies in the 28 states which currently have their own meat and poultry inspection programs could be sold in every state in the U.S. It will allow the facilities inspected by such state programs to take advantage of opportunities in other states. The bill is a companion piece
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
Idaho Federal District Judge, B. Lynn Winmill issued a further preliminary injunction blocking the remaining provisions of Bureau of Land Management’s (BLM) grazing regulations which would affect 160 million acres of public grazing land in 11 states. Tom Gorey, BLM spokesman, said he was confident the regulations would withstand the court fight. “The latest court action is a development in an ongoing legal process. The Bureau of Land Management is confident that the new grazing regulations it has published will withstand legal challenge when the judicial review process is complete,” Gorey said. “The BLM believes that the new regulations will
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
—Packers expected to trim harvest levels soon. Fed cattle traders were still several dollars apart with asking prices in the range of $92 live basis and $142-145 dressed basis last Thursday. Trade was anticipated to occur at prices steady to $1 higher than the previous week once it got underway. The last confirmed trade was Sept. 22 at $88.50-90 in the southern Plains and in the north, live sales traded at $87-89. Dressed sales sold at $137-141. Boxed beef prices, supported by lower packer harvest levels, moved upward last week. Choice cutout values rose 17 cents on Thursday last week to close
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
Simplify the ID message It has been three years since the U.S. livestock industry appeared on the brink of finalizing a national animal identification system (NAIS). The U.S.’s first bovine spongiform encephalopathy case in December 2003 was expected to speed up implementation. Paradoxically, it appears to have done the opposite. Now the industry is holding its breath that a system will be somewhat in place before another devastating disease, notably foot and mouth disease (FMD), is discovered. Progress has been painfully slow and confusing. Latest developments show that implementation of NAIS urgently needs clarity and a new focus. USDA and industry need
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
Kansas City, MO-based National Beef Packing Company, LLC is not reducing beef processing in the least; in fact, they are expanding it. Some processing plants in the recent past have closed plants, cut staffing and have significantly reduced the amount of cattle slaughtered due to cited profit losses. However, the country’s fourth-largest beef processor has recently begun operations in their newest addition to its Moultrie, GA, facility. Terry Wilkerson, National Beef’s executive vice president for strategic business development, told WLJ last Tuesday that the Moultrie, GA, expansion is a true success story. “Our Moultrie facility is a classic success story
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
Start-up beef packing venture, Northern Beef Packers in Aberdeen, SD, is in the final stages of activity before construction is set to begin on a new beef packing plant. The facility will also create a series of new employment opportunities and income to related individuals and companies in the area. According to Dennis Hellwig, owner of Hub City Livestock Auction and one of the plant’s founders, Northern Beef is waiting for the final building permits to be approved and plans to start construction on the plant by the end of November. Plans call for the construction of a 180,000 square-foot building
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
The Sept. 1 cattle on feed report contained a surprise in the form of a higher than anticipated placement number which was 15.4 percent ahead of 2005. Analysts cautioned the bearish impact of the report on the market should be kept in perspective since the calves placed in the past two months are mostly cattle that would have entered the feedlot later this year anyway. As of Sept. 1, the report showed the total number of cattle on feed in the U.S. is 10 percent higher than last year at 11 million head. The number is the highest Sept. 1 on-feed number
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
—Bighorn sheep cause cattlemen to halt production. Ranchers are familiar with the challenges associated with sustaining the wildlife population and working cooperatively with the environment. Often heard called the best stewards of the land, ranchers have constantly compromised with environmentalists and federal institutions to take a proactive stance. Despite ranchers’ efforts, some decisions being made are causing ranchers to halt production. Most recently, environmentalists are praising a decision made by the Forest Service that will suspend livestock grazing in parts of Nevada and California, primarily near the eastern Sierra. The decision was a result of constant legal battles raging between ranchers
Cattle Market & Farm Reports, Editorials
by WLJ
Oct 2, 2006
—Recent rains are encouraging producers, but also causing animal disease concerns. As fall approaches, cattlemen in nearly all geographical tiers are experiencing some relief from scorching temperatures and lack of rainfall. Recently, producers have received late rains that are giving them hope for additional grass growth, as well as wheat for those who plan to stock cattle for fall and winter grazing. Although the rain is needed, it is also causing producers problems they usually don’t experience in late summer and early fall, but rather the spring. More specifically, along with new grass growth, producers are seeing an increasingly higher
Cattle Market & Farm Reports, Editorials
by WLJ
Sep 25, 2006
Live cattle trade, which in recent weeks had been stronger than expected, was slow last week after the Chicago Mercantile Exchange (CME) sold off sharply last Wednesday. Trade was expected in the $88-89 live range and $135 dressed basis. If those prices develop, they will be steady to $1 lower in most areas. As of last Thursday, bid and ask prices were still a couple dollars apart in most regions. Perhaps the most significant factor in delaying trade was the weak cutout value, which by last Thursday, had dropped sharply for the second consecutive day to trade at $140.99 on the
Cattle Market & Farm Reports, Editorials
by WLJ
Sep 25, 2006
There is no lack of knowledge about the scientific changes that have come our way in the last decade in the area of production efficiency and animal management. We have all become table top experts conversing about the latest article we have read about gene mapping, embryo transfer, ultrasound fetal sexing, etc. This fits right into our traditional role in production agriculture trying to get more pounds of meat out of our animals and more bushels of crops from an acre of ground. It fits right into the role that we are comfortable with in production agriculture. It is our
Cattle Market & Farm Reports, Editorials
by WLJ
Sep 25, 2006
Across borders, among friends It had been a while since I talked to my Canadian market buddies. Wouldn’t you know it, the minute I think about them, they call. One thing I like about the agricultural business is that I have been able to make friends all over the world. Bob Balog, owner of the Lethbridge Auction Company, called in last week. Bob runs a weekly cattle sale and, of course, sells some purebred sales and a few farm auctions. He called to talk about the markets and to compare notes. The main items on his mind were the calf market, USDA’s
Cattle Market & Farm Reports, Editorials
by WLJ
Sep 25, 2006
Prairie dogs could be poisoned in three federal grasslands in South Dakota and Nebraska under a plan to be considered by U.S. Forest Service (USFS) officials. Forest Service officials announced Sept. 18 they will undergo a year long process to amend prairie dog management plans for the three national grasslands in question. If approved, the management plans will allow greater leeway in how prairie dogs are managed on the Buffalo Gap and Fort Pierre National Grasslands in South Dakota and the Oglala National Grassland in Nebraska. After many conflicts with graziers on public lands over the destructiveness of prairie dogs and
Cattle Market & Farm Reports, Editorials
by WLJ
Sep 25, 2006
APrairie dogs could be poisoned in three federal grasslands in South Dakota and Nebraska under a plan to be considered by U.S. Forest Service (USFS) officials. Forest Service officials announced Sept. 18 they will undergo a year long process to amend prairie dog management plans for the three national grasslands in question. If approved, the management plans will allow greater leeway in how prairie dogs are managed on the Buffalo Gap and Fort Pierre National Grasslands in South Dakota and the Oglala National Grassland in Nebraska. After many conflicts with graziers on public lands over the destructiveness of prairie dogs and


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