WLJ - Opinion https://wlj.net/articles.sec-35-1-opinion.html Sun, 25 Sep 16 00:00:00 -0600 en hourly 1 Letter to the Editor https://wlj.net/article-35-letter-to-the-editor.html Letter to the Editor
I appreciate your interest in investigating and resolving unauthorized grazing practices. As the Director of the State of Utah School and Institutional Trust Lands Administration (SITLA), I am entrusted with the responsibility of overseeing a 3.


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Decreasing markets are a good time to ponder https://wlj.net/article-35-decreasing-markets-are-a-good-time-to-ponder.html Decreasing markets are a good time to ponder
Following is one such note: “I read with interest a recent column of yours dealing with selling calves in the fall at the same weights year after year despite the increasing overall carcass weights. The point of this email, though, is to question what the other alternatives are.


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Keeping beef competitive in the protein market https://wlj.net/article-35-keeping-beef-competitive-in-the-protein-market.html Keeping beef competitive in the protein market
As producers, we ask, “Do consumers still want beef?” By volunteering as a member of the Cattlemen’s Beef Board, I’ve learned that the answer is, “You bet they do!” Consumer demand for beef remains strong despite marketplace challenges, such as issues around supply and weather.


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BQA free certification period announced https://wlj.net/article-35-bqa-free-certification-period-announced.html BQA free certification period announced
The countdown has begun once again for beef and dairy producers to become Beef Quality Assurance (BQA)-certified for free online through Nov. 13. And, as an added bonus, anyone who becomes certified during this period is eligible to win a prize package, courtesy of Boehringer Ingelheim Vetmedica, Inc.


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Tax relief companies accused of false advertising https://wlj.net/article-35-tax-relief-companies-accused-of-false-advertising.html Tax relief companies accused of false advertising
Have you heard those scary radio ads by tax relief companies promising to help taxpayers in distress? The ads warn consumers about unexpected IRS bank levies to recover unpaid or disputed taxes.


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Selling calves is more than hauling them to town https://wlj.net/article-35-selling-calves-is-more-than-hauling-them-to-town.html Selling calves is more than hauling them to town
The producer may or may not be heavily involved, but the calf buyers are very involved. Buyers know most cattle and have kept track of previous years’ performance. For the most part, the performance history of each load of calves is noted and calls go out to get more calves like those.


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The role of basis in trading cash cattle https://wlj.net/article-35-the-role-of-basis-in-trading-cash-cattle.html The role of basis in trading cash cattle
It has been easy to observe the loss of speculative longs in the cattle futures. Futures prices have been volatile and the actual contract construction is flawed and left wanting in order to be an effective tool for use by the industry. Navigating through daily swings can be nerve racking.


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Cattle market situation sending signals of need for TPP approval https://wlj.net/article-35-cattle-market-situation-sending-signals-of-need-for-tpp-approval.html Cattle market situation sending signals of need for TPP approval
In a pure and perfect free market, prices for our cattle and calves are determined by the supply of cattle, the value of the beef and byproducts, less the incremental or remaining costs to grow, finish, and transform our cattle into the end products. Prices are also influenced by forward expectations for those values.


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Can you afford to sell your calves this fall? https://wlj.net/article-35-can-you-afford-to-sell-your-calves-this-fall.html Can you afford to sell your calves this fall?
About a year ago, I asked, “Can commercial producers afford to sell 7-month-old calves?” and said, “Ponder this!” The point—a big point—is we have 100 to 150 more pounds of carcass on the rail and cow/calf producers still are selling the same weight calves, and for less money.


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Simmental Fall Focus https://wlj.net/article-35-simmental-fall-focus.html Simmental Fall Focus
The American Simmental Association (ASA) recently held their annual Fall Focus in Bozeman, MT, which featured the ribbon cutting on their new building. The fourday event included tours of the new headquarters, an educational program, open committee meetings and a board meeting.


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Kay's Korner https://wlj.net/article-35-kays-korner.html Kay's Korner

Labor Day historically marks the start of the transition for beef from the summer grilling season to the Christmas holiday season. So it’s instructive to look back as well as forward to see how beef has performed and might fare the rest of the year. The latter will be crucial for the direction of live cattle prices the rest of the year.



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Dreams, opportunity make the future https://wlj.net/article-35-dreams-opportunity-make-the-future.html Dreams, opportunity make the future
Sale time often is directly related to the price. And there go dreams. Those childhood memories repeat: How often do we watch the calves go down the road to market and mutter, “There is always next year?” All right, I can feel the reality checkers. Buy low, sell high, but you missed.


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All in or how to manage margins https://wlj.net/article-35-all-in-or-how-to-manage-margins.html All in or how to manage margins
The concept is simple and the analysis is the same regardless of the sector of the beef industry; beef producers are margin operators. Similar to other manufacturing businesses, you have inputs and outputs. You have fixed costs and variable costs.


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Stop dating your veterinarian and make it official https://wlj.net/article-35-stop-dating-your-veterinarian-and-make-it-official.html Stop dating your veterinarian and make it official
By now, you have certainly heard that changing U.S. Food and Drug Administration (FDA) regulations (VFD, Guidance 209 and 213) will change the way we use antibiotics in the near future. But what does that mean for your ranch or feedyard and what do you need to do about it? The short answer is to get to know your veterinarian, and make it official.


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How inelastic is the convenience component of meat demand? https://wlj.net/article-35-how-inelastic-is-the-convenience-component-of-meat-demand.html How inelastic is the convenience component of meat demand?
Depending upon shifting political agendas, many professional and amateur economists (past, present and future) insist that demand is much more complicated, significantly shaped, stretched, and shrunk by realities ranging from country of origin to...



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Fighting fires https://wlj.net/article-35-fighting-fires.html Fighting fires

The nonprofit Property and Environment Research Center (PERC) produced an interesting report about the growing wildfire threat last week. They asked the question, “Did larger fires lead to larger wildfire budgets, or larger wildfire budgets lead to larger fires and greater suppression expenditures?”



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TAX TOPICS https://wlj.net/article-35-tax-topics.html TAX TOPICS

Contrary to what many agricultural families think, land does not need to be exchanged for other land. You can exchange land into many types of investment property, such as office buildings, rental houses, apartment complexes, storage facilities, retail strip malls, etc.



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Indicator cows https://wlj.net/article-35-indicator-cows.html Indicator cows

When you have just enough cows to name them all, it’s easy to characterize them by appearance, temperament and some might even say personality. Kids like to find names to fit. Twister was one of ours 20 years ago, an outlier for poor docility that left no daughters in the herd.



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Beef Talk: The future of beef... We need to get it right! https://wlj.net/article-35-beef-talk-the-future-of-beef-we-need-to-get-it-right_.html Beef Talk: The future of beef... We need to get it right!
Our children born today may have our grandchildren in 2041. Our grandchildren may have our great-grandchildren in 2066. And our great-grandchildren may have our great-great-grandchildren in 2091. As distant as it sounds, the birth of our great-great-great-grandchildren will occur early in the next century, 100 years from today.


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Guest Opinion: Which is bigger—Brazil-U.S. beef trade announcement or U.S. jobs report? https://wlj.net/article-35-guest-opinion-which-is-bigger%25E2%2580%2594brazil-us-beef-trade-announcement-or-us-jobs-report.html Guest Opinion: Which is bigger—Brazil-U.S. beef trade announcement or U.S. jobs report?
cattle producers. The CME announcement of changes to their Live Cattle contracts warrants a separate discussion and will not be covered here. Similarly, ongoing declines in expected upcoming corn prices are supportive to cattle markets but will not be outlined in this article.


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Investing cash proceeds from the sale of a farm or ranch https://wlj.net/article-35-investing-cash-proceeds-from-the-sale-of-a-farm-or-ranch.html Investing cash proceeds from the sale of a farm or ranch
I’ve asked families who have sold their farm or ranch and deposited all of the sale proceeds into certificates of deposits (CDs) why they chose to do so. Their response is typically: “I need to know my money is safe.” The irony is that while CDs are safe from market risk, they.




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Did You Know: Exceptions to the rule https://wlj.net/article-35-did-you-know-exceptions-to-the-rule.html Did You Know: Exceptions to the rule
More of any commodity drives prices lower while less supply moves them higher. Certainly great examples of the latter would be the drought of 2007 driving corn prices up and the cow herd liquidation driving cattle prices higher in 2014. So we do know this supply/demand concept works.


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Beef Talk: Tag calves for maximum marketing opportunities https://wlj.net/article-35-beef-talk-tag-calves-for-maximum-marketing-opportunities.html Beef Talk: Tag calves for maximum marketing opportunities
Astute cow/calf sellers know now is the time to maximize the number of marketing programs for their calves. This is not too early to be checking marketing outlets to see how the calves should be identified so every sales opportunity can be realized, which pays out value that, in the end, increases net profit.


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An open letter to the candidates on public land management https://wlj.net/article-35-an-open-letter-to-the-candidates-on-public-land-management.html An open letter to the candidates on public land management
We write this open letter to the U.S. presidential and congressional candidates and your party to offer guidance as to the path forward for federal land policy in the western U.S. These are the top 10 position statements that would aid in mitigating the rhetoric and in advancing viable solutions associated with the working landscapes in the West:.


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Kay's Korner https://wlj.net/article-35-kays-korner.html Kay's Korner
Upper Iowa Beef in Lime Springs designed a traceability system that would allow consumers who bought its beef in a retail store or ordered it in a restaurant to use their smart phones to scan a QR (Quick Response) code to find out about the beef’s origins....]]>
Potential issues with selling ranch property owned in entities https://wlj.net/article-35-potential-issues-with-selling-ranch-property-owned-in-entities.html Potential issues with selling ranch property owned in entities
While most farmers and ranchers own their property in an LLC, partnership, or S Corporation, some families still own property in a C Corporation. When a C Corporation sells appreciated real estate, it must pay tax on the gain at the corporate tax rate....]]>
Tag calves for maximum marketing opportunities https://wlj.net/article-35-tag-calves-for-maximum-marketing-opportunities.html Tag calves for maximum marketing opportunities
Astute cow/calf sellers know now is the time to maximize the number of marketing programs for their calves. This is not too early to be checking marketing outlets to see how the calves should be identified so every sales opportunity can be realized, which pays out value that, in the end, increases net profit.


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Financial stategies for selling ranch property https://wlj.net/article-35-financial-stategies-for-selling-ranch-property.html Financial stategies for selling ranch property
The IRC Section 1031 Exchange, the IRC Section 664 Charitable Remainder Trust, and the IRC Section 121 Principal Residence Exclusion are powerful tools for saving taxes on the sale of a farm or ranch. Below is an example of a family using these tools on the sale of their Montana ranch.


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New product development keeps beef king of the proteins https://wlj.net/article-35-new-product-development-keeps-beef-king-of-the-proteins.html New product development keeps beef king of the proteins
Like most of you, I’ve grown up in ranching, following several generations of my family in the cattle business. It’s been a way of life, and it’s something I really enjoy. While the ranch operation is predominantly cow/calf, I also began retaining ownership and taking them all the way to the feedlot.


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Should you retire to a more tax-friendly state? https://wlj.net/article-35-should-you-retire-to-a-more-tax-friendly-state.html Should you retire to a more tax-friendly state?
I normally avoid state income tax issues in my column, given that our readership is national. But you might be amused at some of the political discussion in Minnesota over the state’s latest income tax hike. And there’s a lesson to be learned about a retired farmer’s ability to escape a high-taxing state.


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