September 20, 2016 Comments are off Montana Stockgrowers Association
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NCBA Takes Stand Against HSUS Attempt to Weaken Beef Checkoff

WASHINGTON (Sept. 16, 2016) – The National Cattlemen’s Beef Association was recently notified that Humane Society of the United States (HSUS) attorneys have filed a lawsuit against USDA’s Office of Inspector General (OIG) on behalf of the Organization for Competitive Markets (OCM). This lawsuit seeks to divide the beef industry against itself by opening old wounds and weakening the beef checkoff as HSUS drives toward its ultimate goal of ending animal agriculture.

The lawsuit, filed by HSUS lawyers, seeks the release of documents related to two OIG audits of the beef checkoff and its contractors, including NCBA. Both audits found that producer investments in the checkoff are protected by the firewall, which prevents beef checkoff dollars from being used for policy activities. Two OIG full audits and multiple random audits by USDA have found contractors, including NCBA, to be in full compliance with the laws which protect checkoff funds.

“Those findings haven’t satisfied the extremist animal rights activists at HSUS or its partners at OCM,” said NCBA CEO Kendal Frazier. “Instead of working to better our industry, these two organizations and a small handful of cattlemen have chosen a devil’s pact in an effort to weaken the checkoff, which will in turn, weaken beef demand and our entire industry.”

The lawsuit is another attempt by HSUS to drive a political agenda. It diverts attention from beef promotion activities and wastes precious resources at a time when cattle prices and the profitability of the beef industry are under tremendous pressure. As part of an effort to protect the beef industry and stop the frivolous and divisive work of HSUS, NCBA will seek intervenor status in the lawsuit against OIG.

“There’s no doubt that HSUS stands against rural America. Their attacks on the beef and pork checkoff programs weaken promotion efforts. HSUS and its allies have clearly demonstrated they have no interest in the livestock business beyond ending it,” said Frazier. “They will attempt to make this about transparency and say they’re undertaking this effort on behalf of producers. But let’s be clear: HSUS intends to put every cattleman and woman in America out of business. By weakening checkoff programs and damaging producer-directed marketing and promotion efforts, they can cause economic harm to our industry and force us out of production agriculture.”

HSUS and OCM are working to rehash questions that were asked and answered long ago. Since then, multiple audits have demonstrated full and ongoing contractor compliance with regulations governing beef checkoff expenditures. Furthermore, NCBA has demonstrated that it remains committed to transparency and its role as a contractor to the beef checkoff.

“We have nothing to hide. We have, and will continue to fully cooperate with all reviews and audits of our contracting activities,” said Frazier. “However, we will not stand idly by and allow HSUS to kill the checkoff. This isn’t the first attempt to weaken our industry and it won’t be the last, but this is where we must draw a line in the sand and protect the interests of American cattlemen and women.”

September 16, 2016 Comments are off Montana Stockgrowers Association
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Top Policy Initiatives in Washington D.C. for the Week of September 12, 2016

House Agriculture Committee Addresses Outdated Packers and Stockyards Act

This week, the House Agriculture Committee approved H.R. 5883, legislation to modernize the Packers and Stockyards Act. Enacted in 1921, the Packers and Stockyards Act is intended to protect buyers and sellers of livestock from unfair, deceptive, and discriminatory practices.

Having not been revised in decades, Rep. David Rouzer (R-NC), chairman of the Livestock and Foreign Agriculture Subcommittee, introduced H.R. 5883, to expand the definition of “marketing agency” to include video and online auctions and update acceptable payment methods to include electronic transfer of funds, ensuring the legislation keeps up with the latest technologies available as our industry and modern banking continues to evolve.

Sage Grouse Provision Key for Western Producers

Work continues in Washington, D.C., on the National Defense Authorization Act (NDAA) for FY17. The House-passed version of the bill includes a provision blocking implementation of Federal management plans for the greater sage grouse over ongoing successful management of the species by Western states, livestock producers, and others. As the conferees work through the various issues contained in this year’s version of the “must pass” legislation, it’s clear that House leadership is working hard to keep the provisions in place and protect producers.

Efforts are now focused on the Senate, and in particular Senator John McCain (R-AZ), the Chairman of the Senate Armed Services Committee.  Despite documented impacts to military training exercises at installations like Yakima Training Center in Washington State, not to mention the impact of the plans on rural western economies, Senator McCain continues to resist inclusion of this critical language. Senators from around the West will continue to press this case with McCain through the fall in order to ensure this important legislation crosses the finish line intact.

Senate Agriculture Committee Holds Hearing on CFTC Commissioner Nominations

Today the Senate Committee on Agriculture, Nutrition, and Forestry held a hearing to consider the nominations of Dr. Christopher Brummer and Brian Quintenz to serve as Commissioners of the Commodity Futures Trading Commission.

The CFTC is charged with fostering open, transparent, competitive, and financially sound markets, to avoid systemic risk, and to protect the market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act. The Commission is comprised of five Commissioners nominated by the President, with the advice and consent of the Senate. Currently, there are two Commissioner vacancies at the CFTC. Senator Pat Roberts, chairman on the Senate Agriculture Committee, opened the hearing by stressing the charge of the CFTC Commissioner.

“As noted by the CFTC’s own mission statement:  Farmers, ranchers, producers, commercial companies (or end-users), municipalities, pension funds and others use markets to lock in a price or a rate and focus on what they do best – innovating, producing goods and services for the economy, and creating jobs,” said Roberts. “It is essential that the CFTC have individuals in charge that truly take that mission statement to heart, as the innovation and hard work of our farmers and ranchers seems to have been forgotten in recent years.”

Chairman Roberts continued and highlighted the impact the CFTC has on the agriculture industry.

“Many of us here raised concerns when Dodd-Frank was being considered and insisted that the legislation should not negatively impact those who had nothing to do with the causes of the 2008 crisis, and it is important to note that this was a bipartisan concern. Yet, when Dodd-Frank became law, and the CFTC began writing new regulations, it is in fact our farmers, our ranchers, our county grain elevator managers who felt the heavy hand of over-regulation come down on them,” said Roberts. “It is clear that Congress should not withhold needed regulatory relief for our farmers, ranchers, and risk management service providers any longer. Nor should the CFTC. The CFTC must look through the lens of regulatory practicality – not the lens of regulatory irrationality.”

Now that the CFTC is close to being fully staffed, the Commission will have the man-power and time to investigate critical issues that impact the cattle industry, like volatility in the marketplace.

Eighth Circuit Court of Appeals Sides with Producers in EPA Release of Information

The Eighth Circuit Court of Appeals ruled Friday that the Environmental Protection Agency abused its discretion in disclosing farm information from producers across the country. In a long running dispute, EPA in early 2013 released the names, addresses, telephone numbers, and GPS coordinates of concentrated animal feeding operations from more than 30 states to environmental activist groups through a Freedom of Information Request. These groups included Earth Justice, the Pew Charitable Trusts and the Natural Resources

Defense Council.

Following objections by NCBA and other producer groups, EPA reviewed the information on over 80,000 facilities and concluded they had released too much information and requested the return of the electronic documents. Despite this effort, the harm had already been done and the farm information had been disseminated to many activist groups beyond the three groups that made the FOIA request.

In the case brought against EPA by American Farm Bureau and National Pork Producers Council, the Court validated the concerns of producers across the country by determining that EPA abused its discretion in releasing personal information of farmers and ranchers and directed the Agency to refrain from future releases of such information. The Court concluded that “the EPA’s disclosure of spreadsheets containing personal information about owners of CAFOs would invade a substantial privacy interest of the owners while furthering little in the way of public interest that is cognizable under FOIA.”

While this decision cannot recapture the information already released, it does effectively prevent EPA from releasing further private producer information. The case will be remanded to the district court for further proceedings.

Senate Passes Water Resources Development Act with Key Provisions for Agriculture

The U.S. Senate passed the Water Resources Development Act today with an amendment containing an exemption for animal feed products regulated by the EPA’s Spill Prevention Control and Countermeasure rule. The bill passed by the Senate will bring much-needed regulatory relief for small and medium sized farms and livestock producers across the country who store oil, or oil products, at their operations.

The amendment to the bill championed by Senator Deb Fischer (R-Neb.) would wholly exempt animal feed storage tanks from the SPCC rule, both in terms of aggregate storage and single-tank storage. Additionally, it exempts up to 2,000 gallons of storage capacity on remote or separate parcels of land as long as those tanks are not larger than 1,000 gallons each.

“When it comes to preventing spills from on-farm fuel storage, producers already have every incentive in the world,” said Senator Fischer. “We live on this land. Our families drink this water.”

In May 2014, Congress acted to ease the burden by exempting producers who had up to 6,000 gallons of aboveground storage and no single tank with a capacity of 10,000 gallons or more. However, that legislation neglected to fully exempt animal feed storage from the SPCC rule. Senator Fischer’s amendment provides that critical relief to our nation’s livestock producers.

The legislation must now be considered and passed by the U.S. House of Representatives.

 

Beltway Beef is a weekly report from Washington, D.C., giving an up-to-date summary of top policy initiatives; direct from the National Cattlemen’s Beef Association

September 14, 2016 Comments are off Montana Stockgrowers Association
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Cattle Complex Continues Downward Trend

Drought Monitor Update | Week Ending September 09, 2016

During the past week, areas east of the Continental Divide witnesses slightly above normal temperatures. Overall, the West was dry last week with the exception of areas of isolated precipitation in northwestern Washington, eastern Montana, and southeastern New Mexico. Dryness during the past 90 days led to expansion of areas of Abnormally Dry (D0) and Moderate Drought (D1) in southeastern and south-central Idaho. In northwestern Wyoming, an area of Severe Drought (D2) was expanded in the headwater region of the Snake River where baseflow has been well below normal.

montana-drought-monitor

Montana Weekly Auction Report | Week Ending September 09, 2016

Market: Billings Livestock Commission, MT

Market: Public Auction Yards – Cattle, MT

Receipts: 1,892    Last Week: 2,482    Last Year: 2,068

Compared to last week: Feeder cattle became more active as the week progressed with dramatically increased offers by the end of the week along with steady to stronger undertones. Demand for feeder cattle also staged a turnaround from last week and improved to moderate to sometimes good at the end of the week. Offerings became more available ranging light to moderate. Rain was noted in parts of the area in the early part of the week which may have hindered some offers while others noted a little earlier start in the fall run on younger cattle than normal. Feeder quality was mostly average. Weigh up conditions were also mostly average. Market activity this week was mostly slow to moderate with improvement not as the week progressed and ended above last week.

Demand on weigh up cows improved as the week progressed to moderate to instances good light to mostly moderate offerings. Slaughter cows were lightly tested with stronger undertones noted at the end of the week. Cow quality was mostly average. Offerings were in mostly small and single head packages. Feeder buyers buyers stepped up to the plate at the end of the week and actively sought cattle resulting in packer buyers causing to stand by the way side and pay at unchanged or higher prices depending on needs to be filled. At the end of the week demand from feeding buyers was moderate to good, the opposite of last week. Packer buyers at the end of the week, meanwhile, were a little more aggressive than last week in order to satisfy needs and were light to moderate ending the week in steady to slightly firmer undertones.

Slaughter bulls were generally average to below quality this week. Prices on slaughter bulls can’t be compared due to no market in Miles City this week, however, undertones were mostly lower. Offerings were moderate to heavy, mostly moderate. Quality this week on bulls was most average to below average. Offerings this week consisted of 69 percent feeder cattle, 11 percent slaughter cows, 10 percent slaughter bulls, 10 percent feeding cows and bulls and cows returning to the country, balance bred cows, heifers, and pairs.

Read more in USDA’s latest Montana Weekly Market Report.

NATIONAL FEEDER & STOCKER CATTLE SUMMARY – Week Ending September 09, 2016

Receipts: 114,800 (Auctions)   23,400 (Direct)   18,400 (Video/Internet) Total: 156,600

Last Week: 133,500 (Auctions) 42,700 (Direct)   174,000 (Video/Internet) Total: 350,200

Compared to last week, feeder steers and heifers sold mostly 2.00 to 6.00 lower and calves quoted mostly 6.00 to 15.00 lower. Over the last four weeks, the lower trend in the cattle complex has taken the air out of the sails of most everyone in the industry. The sell-off that has occurred this past month did put the October Live Cattle contracts in double digits for the first time on Tuesday. It appears to the casual chart observer that triple digit gains and/or losses happen every day as the industry is trying to gain a foothold and bring stability to the marketplace.

Even after the loss of a considerable amount of equity in the last six months, there are those who continue to be bullish as Wednesday in St Joseph, MO a half load of steers weighing 704 lbs sold for 153.10 and a half load of 802 lb steers sold at 150.50. Even though one feedyard bought them, there was another pushing to those lofty prices. Today in Burwell, NE a farmer-feeder bought a load of home raised 821 lb steers at 151.50. With the out-front fed cattle contracts hovering around the 104.00- 105.00 levels and December corn futures around 3.40 today, industry watchers were just wondering if those cattle could be backed up far enough to make a profit. Beef and hog packer margins currently are rather good right now as the cattle slaughter last week was reported at 610,000 head; the largest weekly slaughter since June 2014. As time goes on this fall, it is good that packers are making a healthy profit this go-around and critical for producers to continue to move cattle through the pipeline.

Steer dressed weights are 10 lb under a year ago and packers are doing their best to keep fed cattle weights in check by harvesting as many as they can. Early corn yield anecdotes are not as lofty as the latest forecast of 175.1 bpa and corn futures have gained around 15 cents this week. Boxed beef values continue to make new 2016 lows and are following the slide of the live cattle as Choice closed the week at 187.90, down 3.19 from last Friday’s close. Auction volume this week included 60 percent weighing over 600 lbs and 39 percent heifers.

Read more from the USDA’s latest National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report | Week Ending September 09, 2016

Compared to last week: Alfalfa hay sold steady again this week. Demand for hay ranged light to good, mostly moderate with some finding buyers just starting to compare prices while others wait for 3rd cutting.  Offerings mostly moderate with a few reluctant to make 3rd cutting as they continue to watch the depressed cattle markets. Meanwhile, some buyers noted offerings from outside of the state at lower trending prices into feeders. Hay movement this week was light to moderate.

Inquiry continued to be noted from dairies for high relative feed content alfalfa, however no sales were reported.  Grass hay movement was moderate to good this week at mostly steady prices. High quality grass hay sold very well this week with horse feed buyers active participants. All prices are dollars per ton and FOB unless otherwise noted.

  • Alfalfa:
    • Supreme: Small Squares, 200.00
    • Good: Large Squares, 120.00-135.00; Large rounds, 125.00-135.00; Small Squares 150.00-180.00
    • Fair: Large Squares, 100.00-120.00; Large Rounds, 100.00-120.00
  • Grass/Alfalfa:
    • Premium: Large Rounds, 150.00; Small Squares 150.00-160.00
    • Good: Large Rounds, 120.00-140.00
    • Fair: Large Rounds, 115-120.00
  • Grass:
    • Premium: Large rounds, 120.00-140.00
    • Good: Large Squares, 110.00-120.00; Large Rounds, 110.00-120.00
    • Fair: Large Rounds, 100.00-105.00
  • Timothy Grass:
    • Premium: Small Squares, 210.00-210.00; Large Rounds, 120.00-125.00
    • Good: Large Rounds, 110.00-120.00
  • Barley Straw:
    • Large Squares, 35.00-40.00

Read more from the USDA’s latest Weekly Montana Hay Report.

September 8, 2016 Comments are off Montana Stockgrowers Association
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NCBA Works to Address Market Volatility

Colin Woodall, NCBA Vice President of Government Affairs, discusses NCBA’s efforts to ensure the futures markets work for risk management. MSGA member Jim Fryer of Hobson, MT was appointed to the NCBA/CME Working Group this summer. This group has been engaged on many levels to address the market volatility. Check out the podcast below to learn more.

 

May 12, 2016 Comments are off Montana Stockgrowers Association
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Administration drops lesser prairie chicken appeal

Statement by Ethan Lane, executive director, National Cattlemen’s Beef Association Federal Lands and Public Lands Council regarding the decision by the Obama Administration to drop their appeal of the federal court decision that overturned the listing of the Lesser Prairie Chicken as a threatened species under the Endangered Species Act.

“We are pleased that the Administration has elected not to proceed with their appeal of Judge Junell’s substantive ruling vacating last year’s unfounded listing of the Lesser Prairie Chicken under the Endangered Species Act. Voluntary conservation efforts like the Range-Wide Plan are working to recover the species and must be given an opportunity to succeed without the unnecessary burden of a federal ESA listing.”

In the case of Permian Basin Petroleum Association (PBPA) et al. v. Department of the Interior (DOI), et al., Judge Junell in the U.S District Court for the Western District of Texas concluded that the listing was arbitrary and capricious and that the U.S. Fish and Wildlife Service failed to properly follow its own process for listing determinations in this matter. Further, conservation efforts have already been undertaken across millions of acres over five states to improve habitat and diminish threats to the Lesser Prairie Chicken. The Court determined these conservation efforts, which have resulted in a 25 percent increase in the population of Lesser Prairie Chicken from 2014 to 2015, were ignored by the Administration.

 

Source: NCBA and PLC

April 11, 2016 Comments are off Montana Stockgrowers Association
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USDA value-added producer grant funding available

Source: U.S. Department of Agriculture

USDA, Rural Development State Director John Walsh today April 8th that USDA is making up to $44 million available to farmers, ranchers and businesses to develop new bio-based products and expand markets through the Value-Added Producer Grant program.

 “Agriculture is Montana’s largest industry and adding value to this industry’s products will only help Montana’s farmers, ranchers, and rural business owners increase economic opportunities for their families and communities” said Walsh. “The Value-Added Producer Grant program is an under-utilized program in Montana.  This program can help expand agriculture markets and deliver a higher dollar return to producers.”

Value-Added Producer Grants help eligible applicants enter into value-added activities related to the processing and/or marketing of bio-based value-added products.  Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program.  These grants support planning activities, such as developing a business plan, as well as provide working capital to implement viable value-added business plans.  Grants are awarded through a national competition. The maximum grant amount for planning grants is $75,000 and $250,000 for working capital grants.  Matching resources are required.

 More information on how to apply is on page 20607 of the April 8 Federal Register. The deadline to submit paper applications is July 1, 2016. Electronic applications submitted through grants.gov are due June 24, 2016. Additional information and assistance is available through the USDA Rural Development Office serving your county.

   Since 2009, USDA has awarded 1,126 Value-Added Producer Grants totaling $144.7 million. USDA awarded 205 grants to beginning farmers and ranchers.

  In Montana, Poor Orphan Creamery, located in the Laurin community, received a $15,750 grant in 2014.  The working capital grant helped the sheep dairy to produce value-added hand-crafted farmstead cheeses from milk harvested from their flock of Icelandic dairy sheep.  The cheese is now sold throughout the United States and Internationally.

Congress increased funding for the Value-Added program in the 2014 Farm Bill. That law builds on historic economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers.

Since 2009, USDA Rural Development has invested $11 billion to start or expand 103,000 rural businesses; helped 1.1 million rural residents buy homes; funded nearly 7,000 community facilities such as schools, public safety and health care facilities; financed 180,000 miles of electric transmission and distribution lines; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses.

March 23, 2016 Comments are off Montana Stockgrowers Association
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NCBA names new chief executive officer

Source: NCBA

The National Cattlemen’s Beef Association has named Kendal Frazier its new chief executive officer. NCBA president Tracy Brunner made the announcement, saying he is confident that the nation’s oldest and largest cattle industry association is in good hands.

“It was the belief of the officers and others involved with the search process that NCBA owed it to our members, our stakeholders and the beef community to take our time as we selected the right individual to serve as the next chief executive officer,” said Brunner. “Today, we can say with confidence that Kendal Frazier is the right leader for the association. With many years of experience working for state and national beef organizations, he has helped to guide our industry through some of its greatest challenges.

“Kendal’s dedication to NCBA and his leadership abilities have been tested and proven while serving as interim CEO since June 2015. During that time, NCBA has not wavered from its responsibility to its members and affiliates as a grassroots policy organization. Likewise, NCBA has continued its partnership with state beef councils to protect and increase beef demand.”

Frazier said he is honored and excited for the opportunity to serve as CEO.

“My priorities as CEO will be working with NCBA’s stakeholders and other organizations to vigorously oppose the continued assault by the government on private property rights; work to expand and open markets around the world for U.S. beef; increase trust in U.S. beef production and ensure consumers fully understand the importance of beef’s role in their diets,” said Frazier. “By focusing on these key areas, we ensure there is a prosperous future for the next generation of cattlemen and women.

“It has been my privilege to serve our industry. I have spent my career working with and for beef producers, so I am well versed in the many challenges and exciting opportunities that face our industry. I’m looking forward to working with NCBA’s leadership, membership, staff, state affiliates, state beef councils and other stakeholders.”

Frazier was raised on a diversified cattle and grain operation in south-central Kansas. He is a graduate of Kansas State University and began his career as a farm broadcaster for WIBW Radio/Television before joining the staff at Kansas Livestock Association as director of communications. He joined the staff of the National Cattlemen’s Association in 1985 and has held several staff leadership roles during his career with the association.

“As CEO, I will continue to focus on working to ensure we are implementing NCBA’s contributions to the Industry Long Range Plan,” said Frazier. “We will also ensure that we are delivering on NCBA’s member-directed policy priorities and executing NCBA’s Strategic Plan. These documents are the roadmap for NCBA and by delivering on their promises, we will ensure success for NCBA, our members and our industry.”

March 9, 2016 Comments are off Montana Stockgrowers Association
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Montana posts strong economic growth in Q3

Source: Great Falls Tribune

WASHINGTON — Montana’s economy grew a strong 3.5 percent in the third quarter of 2015, the seventh-best showing in the nation, the U.S. Commerce Department reports.

The state benefited from its heavy dependence on farming and outdoor activities, with agriculture, forestry, fishing and hunting contributing 1.8 percentage points in gross domestic product during the period. Montana also posted strong growth in construction, retail trade, health care, and real estate.

“It certainly bodes well for Montana that the economic growth was diversified across numerous sectors,” said Jeremy Johnson, associate professor of political science at Carroll College in Helena. “The more that you can diversify your economy, you tend to be in a stronger position to weather the storm and attract outside investment.”

Montana trounced the nation’s overall 1.9 percent GDP increase in the third quarter. North Dakota, which had experienced booming growth when oil prices were high, has now been battered by the sharp drop in the commodity. Its economic growth fell 3.4 percent during the period, the worst in the country.

Johnson said the oil slump in North Dakota probably had a negative impact on the eastern part of Montana, though how much is hard to estimate.

Montana, the third-largest producer of barley and wheat with a large presence in cattle, has been buffered in part by its heavy dependence on agriculture. Mitch Konen, a malt barley grower from Fairfield, said the third-quarter was strong for many of these commodities.

“We were doing pretty good, agriculture as a whole, until about that time when it started that downtrend coming out of the third quarter,” he said. “We’ve been bouncing off the bottoms ever since then.”

Contact Christopher Doering at [email protected] or reach him at Twitter: @cdoering

February 23, 2016 Comments are off Montana Stockgrowers Association
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Montana ag producers look to expanding Asian markets

Great Falls Tribune: by David Murray

2014 began as a year of high expectations for Montana’s agriculture economy, but ended with them only partially realized.

Spurred by the smallest national herd size since the 1950s, cattle prices reached historic highs in 2014. Late season prices for a 700-pound steer briefly flirted with the $2.50 per pound mark — more than double what they were 10 years earlier during the height of the Mad Cow Disease scare.

According to the U.S. Department of Agriculture, the value of Montana cattle sales has risen more than 56 percent since 2008 alone, and could exceed $2 billion for the 2014 production season.

“Cattle prices peaked out at a perfect time for weaning this fall,” said Montana Stockgrowers Association President Gene Curry. “A lot of producers have taken the opportunity to pay down debt, replace some equipment or add on to infrastructure — buy a new tractor or replacing a pick-up.”

Grain prices, by comparison, have been trending in the opposite direction. The price received by farmers for all wheat peaked at $8.02 a bushel in 2008. Under pressure from a global wheat glut, that price dropped to $4.74 by August 2014. But timely spring rains and favorable growing conditions had many producers expecting at least a marginally profitable year was in the making.

That changed for many during the third week in August, when drenching rains devastated many grain fields just as harvest was about to begin. Large segments of the state’s standing crop of barley and winter wheat began to sprout from the head, stripping away its value. Baled hay sitting in the fields was soaked, with an estimated 10,000 tons ruined by the flooding.

“A lot of the state had some real serious issues with the rain event we had in August,” said Charlie Bumgarner, president of the Montana Grain Growers Association. “It was very unfortunate for the guys who still had grain standing, but it’s been very fortunate to seed back into for this year’s winter wheat crop.”

Bumgarner noted that Montana farmers are currently enjoying some of the best soil moisture conditions the state has seen in decades. Barring some other unforeseen adverse weather event or market upheaval, conditions seem ripe for a good harvest in 2015.

“We’ve got some of the best stands we’ve had for a long time, and we’ve got a lot of good moisture underneath it,” he said. “For next year, what we’re looking at is pretty positive.”

Underpinning Bumgarner’s optimism is the growing demand for Montana wheat along the Pacific Rim.

“Asian countries are very big for Montana,” he said.

Over the last six years, Pacific Rim mega-corporations in Japan and Korea have invested hundreds of millions of dollars into Montana’s grain growing regions. Asian corporations like Mitsui & Co., Marubeni Corp. and EGT now own 11 of the 17 high-speed grain shuttle loaders in operation in Montana.

Historically, the largest destinations for U.S. wheat have been Mexico and sub-Saharan Africa, where about a quarter of the nation’s total wheat exports were delivered prior to 2011. However, over the past decade the Asian nations of Japan, South Korea, the Philippines and Taiwan have gobbled up an ever greater percentage of U.S. wheat exports.

Today, nearly 90 percent of Montana’s hard red winter and spring wheat is loaded onto cargo ships bound for these hungry Asian populations. That trend is expected to continue, with high hopes that wheat markets in China will soon welcome Montana exports.

The U.S. Department of Agriculture lists China as the single largest producer of wheat in the world, harvesting close to 118 million metric tons of hard red winter wheat in 2012. But a poor harvest in 2013 forced China to increase wheat imports by more than 500 percent, and many analysts believe the Asian giant will struggle to remain self-sufficient in wheat production in the years ahead.

Montana cattle producers also are looking toward the future in China. As the Chinese become more affluent, their hunger for beef has grown with it.

According to the North American Meat Association (NAMA), Chinese imports of beef have more than quadrupled over the past several years, up from about 43,000 metric tons in 2010 to more than 193,000 metric tons in 2013.

Thus far Australia, Uruguay and New Zealand have been the primary beneficiaries of the surge, but U.S. beef producers are hoping to cash in as well.

“I’m pretty excited about our Chinese market,” Curry said. “We’re at a low point now in terms of cattle numbers, but everybody expects that at some point the cattle herd is going to start growing again. With more beef on the market you’re going to need more consumers or the price will start to soften. If the Chinese market starts to open up about the time supplies start catching up with demand — it will take care of a lot of any excess supply.”

Asian markets have the added attraction of adding to carcass values. Secondary markets for beef tongue, heart and liver are well established in many Asian countries.

Montana grain growers and livestock producers have the added confidence of knowing the current U.S. Ambassador to China has a special affinity for Big Sky Country. The former senior U.S. senator from Montana, Max Baucus, was sworn in as U.S. Ambassador to China last February.

“Max has always been a champion of Montana and what Montana produces,” Curry observed. “We all feel fairly confident with the ambassador we have right now.”

February 1, 2016 Comments are off Montana Stockgrowers Association
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CattleFax Says Market Shock Is Nearly Over

Recent price shock in the market and insights about the turbulence ahead were the focus of the CattleFax Outlook Session on Thursday at the 2016 Cattle Industry Convention & NCBA Trade Show. More than 3,000 attendees were on hand to hear CattleFax CEO Randy Blach say he believes the market correction is mostly behind the cattle industry. He explained how tight global protein supplies and a strong export market in 2014 and 2015 led to the ‘perfect storm’ of market peaks and the significant drops seen in recent extremes.

“We are coming off of historic peaks in the cattle market, created by unique conditions in the global beef and protein markets,” said Blach. “Dynamics, specifically global beef supply, led to a large correction in price. That big market downward swing is nearly over now. However, the cycle shows prices continuing to trend lower in 2016, 2017, and 2018.”

Analysts predicted cattle feeders will see average losses near $200 per head, stocker operators will experience tight margins and the cow-calf sector can expect profitable margins. The team of economists expect fed cattle prices to average $130-145 in 2016. “The cow-calf margins will still be profitable, but substantially lower than in the past tow years,” said Kevin Good, Senior Analyst and Fed Cattle Market Specialist at CattleFax. “We predict the cattle feeder will have tight margins for the year overall with potential for profit mid-year.”

A two-year El-Nino weather pattern has replenished moisture conditions across the country, specifically the West coast, which saw some relief in 2015. The weather outlook appears favorable, especially for moisture conditions across the grasslands, according to Art Douglas, Ph.D., Professor Emeritus at Creighton University. “As we head into 2016, a split jet stream pattern will favor above normal precipitation from California to the southern Plains and the Southeast through March,” said Douglas. “In the Corn Belt, spring will be wetter-than-normal which will be accompanies by slower spring warming. Delays in fieldwork and planting dates are likely to result.”

CattleFax experts project $294 in added value per head due to exports in the year ahead, a $66 per head decline from 2014 values. This decrease in export potential is caused by a combination of a strong U.S. dollar, slowdown in global market and challenges with market access. Russia and China are still the biggest opportunities for U.S. beef but trade restrictions will continue to limit potential in the year ahead.

Beef imports are predicted to be down 8 percent due to an anticipated increase in domestic cow slaughter. Australian imports will decline due to the start of an expansion phase triggered by improvements in moisture conditions there. In the United States, CattleFax analysts expect to see herd growth moderate, with an increase of just 600,000 head added in 2016. That pace is slower than 2015, when producers added 1.1 million head of beef, but trade restrictions will continue to limit potential in the year ahead.

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Originally published by NCBA-Convention Edition.