Webinar Outlines 2016 Calf Market Expectations

Cattle Fax Market Outlook 2014CENTENNIAL, CO — Cow-calf margins will shrink as the U.S. beef cowherd expands, but producers can ensure future profitability by adjusting business plans for the supply increase. An upcoming free CattleFax webinar will address a 2016 outlook for the cow-calf segment and entire beef sector, while exploring continued cowherd expansion.

The CattleFax Trends+ Cow-Calf Webinar will be at 5:30 p.m. MT, Jan. 20, 2016. To participate in the webinar and access program details, producers and industry leaders simply need to register online at www.cattlefax.com/meetings.aspx

One of the most aggressive U.S. beef cowherd expansions in the last four decades will increase beef supplies and pressure cow-calf profitability over the next several years. As profits narrow during that time, well-informed producers can maintain healthy margins by adjusting production, marketing and risk management plans with increasing supplies in mind.

  • CattleFax analysts will discuss a variety of topics in the one-hour session, including:
  • Cattle and feedstuff market projections for the next 12 to 18 months
  • Supply and margin expectations based on U.S. beef cowherd expansion estimates
  • Expected returns of beef cows over their productive life and potential opportunities.

The Trends+ webinar series informs cattle producers about current market conditions and provides providing decision-friendly advice regarding management decisions. The analysis and strategies shared through the webinar series has reached more than 2,500 producers, and sponsorship from Elanco Animal Health is making the seminar free for all attendees.

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CattleFax is a member-owned organization that serves producers in all segments of the cattle and beef business. CattleFax is the global leader in beef industry research, analysis and information. Since 1968, the organization’s exclusive industry database has set the standard for market information and analysis. Visit www.CattleFax.com to learn more and become a member.

Montana Agriculture in the Classroom Releases the Montana Invasive Species Education Project

montana department of agriculture logoThe Montana Agriculture in the Classroom program has released a comprehensive educational project on invasive species to help increase public awareness, identification, and reporting procedures.

Species which are non-native (invasive or alien) to Montana interfere and often destroy native plants, wildlife and livestock habitat, forests, waterways, and food crops.  These species, which may not harm the environment in their native area, can cause destruction and major problems when introduced to a new environment.

“The impact to agriculture and the environment can total in the millions of dollars once an invasive species is introduced. The best defense is to prevent their introduction in the first place. Where introduction does occur, we need to increase our ability to respond with education to identify and report threats from potential invasive species,” said Director Ron de Yong.

Invasive species addressed in this project include:  insects, plant diseases, nematodes, snails, clams, mollusks, crustaceans, reptiles, amphibians, fish, and noxious weeds. Over the past hundred years many plants, insects, and animals have been introduced into North America. Not all of them become invasive and push aside native varieties, but when they do, it can be devastating for the environment and economy, and even impact human health.

Invasive species use every trick in the book to hitch a ride to a new land – some have been spotted for sale on the internet, brought in as pets, or sold for ornamental landscaping. Step one is to learn about potential invasive alien invaders in your area.  The Montana Invasive Species Education project includes identification cards, a poster, pocket guides, and other resource materials.  Educators will be provided with lesson plans, a curriculum book on invasive species, and other materials aligned to state learning standards.  The project is available on the website or by contacting Lorri Brenneman at [email protected].

This project is a cooperative awareness and educational campaign of the following: Montana Department of Agriculture – Agriculture in the Classroom; Montana Department of Natural Resources and Conservation; Montana Fish, Wildlife, and Parks; Montana Noxious Weed Education Campaign; USDA Animal and Plant Health Inspection Service; USDA Natural Resources Conservation Service; Montana Department of Transportation; Region 1 U.S. Forest Service; and Montana/Dakota Bureau of Land Management.

The Montana Department of Agriculture’s mission is to protect producers and consumers, and to enhance and develop agriculture and allied industries. For more information on the Montana Department of Agriculture, visit agr.mt.gov.

Op-Ed: Tax Extenders are Critical to Stable Rural Growth

Philip Ellis_headshotAs we approach the end of the year, minds turn toward family, Christmas, big dinners, and snow. But for many in rural America, it’s also time to wrap up the tax year and set the strategy for the year ahead. For cattle producers and farmers equipment purchases, new buildings, and other major capital expenses are logical considerations. Unfortunately, for many the tax code has looked more like a gamble than a sure bet. Key provisions like Section 179 deductions and bonus depreciation that had been extended in 2014, again have been pushed to the end of the year. Earlier this year, the House permanently extended both Section 179 and bonus depreciation, but the Senate has yet to act. Without action, Section 179 dropped back down from $500,000 to $25,000 and bonus depreciation completely disappeared for the current tax year.

If Congress fails to act in December, producers will not be able to take these provisions into account during this tax year. Congress can retroactively extend these provisions, but in the real world, we cannot retroactively make plans or purchases. These provisions are key considerations when making the decision to purchase machinery and equipment. Those capital expenditures provide the pass through growth for much of the rural economy that relies on agriculture. That is why it is so important for Congress to act to pass a multi-year extension of Section 179 and bonus depreciation in early December. Producers need access to these tools while they still may be of use this tax year, and the certainty in future years to plan without waiting until the last minute to make major financial decisions.

We understand all too well the cyclical nature of the markets and weather we live with every day. These forces are beyond our means to control. But the tax code should not be as unpredictable as the weather or the markets. There is bi-partisan support for these provisions, and these provisions provide inducements for small businesses nationwide to grow and expand. In turn, that increases economic growth in areas where it is needed most. I encourage you to join with the members of the National Cattlemen’s Beef Association in talking with your members of Congress and ask them to pass a multi-year tax extender package.

By: Philip Ellis, NCBA President

Cattle on Feed Up Two Percent, Hay Prices Dragging

Drought Monitor Update October 22

Montana Drought Monitor October 22

Montana Drought Monitor Update, October 22, 2015. Click image to learn more.

Moderate to Extreme drought continues along and west of the Divide with slight increase in dry conditions in Central Montana this week. Dry weather dominated much of the country, favoring summer crop harvesting and winter wheat planting. However, topsoil moisture shortages hampered wheat emergence and establishment in a variety of regions, including portions of the Plains, lower Midwest, and interior Northwest.

Extremely dry conditions persisted in much of Oregon and Washington, hampering winter crop establishment. By October 18, winter wheat emergence was at least 10 percentage points behind the 5-year average pace in Oregon (18% emerged) and Washington (62%).

View the most current Montana conditions from the U.S. Drought Monitor.


Montana Weekly Auction Report – Week of October 19

Market:

Montana Weekly reports are now released on Mondays. Read more in USDA’s latest Montana Weekly Market Report.


Cattle on Feed Report – October 23

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.2 million head on October 1, 2015. The inventory was 2 percent above October 1, 2014. The inventory included 6.93 million steers and steer calves, up 7 percent from the previous year. This group accounted for 68 percent of the total inventory. Heifers and heifer calves accounted for 3.29 million head, down 7 percent from 2014. October 1, 2015 heifers and heifer calves inventory is the lowest percent of total October inventory since the series began in 1996.

Placements in feedlots during September totaled 1.93 million head, 4 percent below 2014. Net placements were 1.87 million head. During September, placements of cattle and calves weighing less than 600 pounds were 395,000 head, 600-699 pounds were 290,000 head, 700-799 pounds were 416,000 head, and 800 pounds and greater were 830,000 head. Placements are the lowest for September since the series began in 1996.

Marketings of fed cattle during September totaled 1.64 million head, 2 percent below 2014.

View more in this month’s USDA Cattle on Feed Report.


National Feeder & Stocker Cattle Summary – October 23

Receipts This Week:  Total 324,400 – 281,200 (Auctions); 40,100 (Direct); 3,100 (Video/Internet)

Compared to last week: the calf market this period experienced wide price ranges and trends in all reporting regions, lightweight feeders under 500 lbs selling mostly 5.00-15.00 higher and calves over 500 lbs and yearlings trading fully steady to 5.00 higher with instances 10.00 higher. Last week’s sharply higher fed and feeder cattle markets and sharply higher futures caused feeder prices to come out of the gate with compelling buying interest. The fed cattle market has rallied near 20.00 over the last two weeks, after declining over 30.00 since Mid-August. Feedlot managers have reclaimed a considerable leverage and an overall positive attitude. This has also spilled over into the feeder cattle markets the last two weeks.

CME Live Cattle futures are back to trading at Mid-September levels, prior to the big break in the market. It seems what use to take months for markets to move is now taking days and weeks, hopefully this is not going to be the new norm as this market is trying to find its course. Optimism also remains guarded as the cattle markets continue higher. Futures are also finding renewed buying support. Despite higher futures prices and cattle producers continue to struggle to reach breakeven levels. This still could create some long term tension and volatility.

Corn harvest is now 59 percent completed, with soybeans 77 percent completed.

Auction volume included 39% weighing over 600 lbs and 36% heifers.

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


Weekly Montana Hay Report – October 23

Compared to last week: Alfalfa was steady to weak this week on mostly light movement and light to moderate demand. Producers are finished with 3rd cutting and a few have started on a 4th. Rain this week helped improve pasture and range conditions and allowed producers to leave cows turned out. This has decreased short term demand for hay. Demand for high quality 3rd cutting continues to be very limited, however demand for lower quality 3rd cutting was mostly moderate to good, with movement continuing to be seen on RFV under 185. Grass hay saw light movement and mostly light demand this week. Hay prices in neighboring states continue to be a drag on all hay prices as many feeders are shopping around to find the best deal.

  • Alfalfa:
    • Supreme: Small Squares, 200.00-225.00
    • Premium: Large Squares, 170.00-180.00
    • Good: Large Squares, 150.00-170.00
    • Fair: Large Squares, 90.00-135.00
    • Utility: Large Squares, 100.00
  • Grass:
    • Alfalfa Mix Premium: Large Squares: 170.00; Good Large Rounds, 125.00-140.00
    • Good: Large Squares, 135.00; Large Rounds, 115.00-120.00
    • Fair: Large Squares, 80.00-100.00; Large Rounds, 100.00
  • Timothy Grass:
    • Premium: Small Squares, 180.00-225.00
    • Good: Large Rounds, 120.00; Small Squares, 150.00
  • Barley Straw:
    • Large Squares, 35.00-55.00
  • Wheat Straw:
    • Large Squares, 25.00 (New crop); 32.00 (Old crop)

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

Updates to reporting of Equine Vesicular Stomatitis

Fred & Linda Finke - North Country Quarter HorsesDr Marty Zaluski, Montana State Veterinarian

The United States is experiencing another active year of vesicular stomatitis (VS) in horses. VS is a regulatory concern (and reportable) because when found in cattle, it is clinically indistinguishable from foot and mouth disease (FMD). While FMD does not affect equines, the presence of VS in horses allows us to avoid panic mode when multiple cattle with vesicles in the same geographical area are detected.

The 2014 season’s VS count finished in March 2015 with a near record of 420 affected premises in four states. For the current season, the count already stands at 490 premises in 6 states including Arizona (36), Colorado (251), Nebraska (14), New Mexico (48), South Dakota (42), Texas (3), Utah (24), and Wyoming (72). These counts represent total premises; many of which have since been released from quarantine.

The World Animal Health Association recently removed VS from the list of immediately reportable diseases. This change at the international level, and the 2014 VS experience allowed the USDA to make some much needed changes to how states and practitioners respond to suspected cases of VS. I’m copying, (with my comments in italics) the key changes from the April 2015 USDA VS Interim Field Guidance document.

The quarantine period for premises with suspect or confirmed VSV cases will be reduced to 14 days from the onset of lesions in the last affected animal on the premises (instead of 21 days after lesions have healed). This reduced duration of quarantine more closely correlates with the known time period for viral shed from lesioned animals. (Lesions in severely affected horses can take months to heal and Canada refers to the affected states’ quarantines to determine import restrictions on horses and ruminants moving to Canada. This change results in much shorter restrictions on exports of horses and livestock from affected states to Canada.)

After confirmation of the first VSV case in a state, equids with suspected lesions on subsequent premises are not required to be tested, but the premises will be quarantined for the time period stated above. (Suspected premises can choose to be quarantined, rather than undergo testing.)

Accredited veterinarians may be used to collect samples and monitor premises with suspected equine VSV cases at the discretion of the state veterinarian. (Heavily affected states created an overwhelming need for federal and state personnel to collect samples and perform physical exams. Private veterinarians with the technical skills, knowledge of the location, and familiarity with the operation are often a better alternative than government personnel.)

Existing VSV-approved NAHLN laboratories may request to be activated after the first case in a state is confirmed. (The Montana Veterinary Diagnostic Laboratory will be able to test additional submissions for VS after the index case is confirmed by NVSL – this would shorten the turnaround times for results in subsequent suspected cases.)

A Foreign Animal Disease Diagnostician (FADD) will still be dispatched on all suspect cases involving cattle with lesions. (Because of the concern of foot-and mouth disease, specially trained state or federal veterinarians will continue to be used for ruminants with vesicular lesions.)

–Originally published in the September 2015 Animal Health Newsletter from the Montana Department of Livestock

BQA Free Certification Period Announced

BQAThe countdown has begun for beef and dairy producers to become Beef Quality Assurance (BQA)-certified for free online through Nov. 20. 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. and the BQA program, funded in part by the beef checkoff.

Boehringer Ingelheim Vetmedica, Inc. will pick up the $25-$50 online training fee for every person completing BQA training through Nov. 20. That includes anyone who works with cattle – whether it is beef or dairy. Visit www.bqa.org to take advantage of the open certification period.

The BQA program is important to the cattle industry because it is a producers’ consumer-friendly story to tell, helping them talk about using BQA Best Management Practices for producing a safe and high quality beef product. And for dairy producers, this offering also is beneficial as a tool to promote safe animal-handling practices and because a large percentage of dairy calves, as well as market cows, make their way into the food chain.

The BQA training modules are customized to fit the specific needs of each segment of the cattle industry – cow-calf, stocker, feedyard and dairy operations. The program covers best management practices such as proper handling and administration of animal health products, reducing injection site blemishes, and low stress cattle-handling principles.

More than 2,100 producers across the country became Beef Quality Assurance (BQA)-certified during the last campaign thanks to the program support by Boehringer Ingelheim Vetmedica, Inc. (BIVI). That is the highest number in the program’s four-year history, and means that nearly 22,000 producers have taken advantage of these free offers to sign up for the BQA certification program. Through its sponsorship of the BQA certification program, BIVI provides financial support for the Beef Cattle Institute, which developed the training modules.

To become BQA-certified, or learn more about the program, visit www.bqa.org.

Beef Checkoff Seeking Producer Input Through Survey

beef checkoff logoIn connection with the National Institute for Animal Agriculture (NIAA), the checkoff is helping to distribute a producer survey about use of antibiotics on cattle operations. The survey was created with the help of Kansas State University, in response to comments from the checkoff’s Safety Subcommittee at the 2015 Cattle Industry Summer Conference.

NIAA has been a checkoff subcontractor to the National Livestock Producers Association, on authorization requests that have helped provide funding for a national symposium about use of antibiotics in food animals for each of the last five years. During their meeting in July, members of the checkoff’s Safety Subcommittee discussed the need for more producer information on the topic, possibly gathered through a survey about their use of antibiotics. With that, NIAA worked with KSU to prepare a survey for producers, and all Beef Board members and Federation directors are encouraged to participate in the survey and pass the link along to other producers, to achieve the highest participation possible!

Click here to go to survey – http://bit.ly/checkoff-survey

Call for MSU Steer A Year Donations

SAY MeatsThe 2015-2016 academic year has begun which means it is time to start “rounding up” steers for the Montana State University Steer-A-Year (SAY) program. In this program, steers donated by Montana ranchers are fed to finish on campus.

Donated steers make a direct impact on MSU students, particularly those on the livestock judging team. The funds allow judging team members to compete and represent Montana State University at a national level.

In addition, SAY contributions are important in enhancing the educational experience for students in the College of Agriculture. The steers are used to allow for “hands-on” learning experiences in courses such as Beef Cattle Management, Livestock Management-Beef Cattle, Meat Science, and Livestock Evaluation. Additionally, the newly created “steer-a-year” class allows students to be involved in all aspects of managing steers.

The Steer-A-Year class is a student run class that focuses on feedlot production and finishing. Steers are donated to the University by Montana producers to be used not only for this class but also for many classes on campus. Those include Livestock Evaluation, Beef Practicum, Beef Management, and Meat Science.

The donation is completely tax deductible and producers will be recognized at Celebrate Ag weekend. In addition, producer who donate receive a monthly update on the performance of all the steers in the program.

Donations made to SAY directly impact our students and these contributions can be made either in the form of a donation of a live steer, cash, proceeds from an auction market sale, and/or gifts of feed grain or forage. Delivery of steers will be taken during the period of October 30 to November 13, 2015. Steers will be housed at the Bozeman Agriculture Research and Teaching Farm. Performance data will be taken and sent out to donors as collected. Awards will also be presented to the Best Initial Feeder Steer, the steer with the Top Rate of Gain and Best Carcass.

If you would like more information about the Steer-A-Year program, or would like to donate a steer, please contact Hannah DelCurto at (406)994-3752 or [email protected].

MSU to host Agricultural Economics Outlook Conference

montana state extension logo

BOZEMAN – Montana State University’s Department of Agricultural Economics and Economics and MSU Extension will host the 9th annual Agricultural Economics Outlook Conference on Nov. 6.

This year’s conference, “Montana Agriculture: Global Trade to Local Foods,” will run from 9:30 a.m. to 1:30 p.m. in the Procrastinator Theater in MSU’s Strand Union Building.

The conference’s keynote speaker is Colin Carter, professor of agricultural and resource economics at the University of California Davis and director of the Giannini Foundation of Agricultural Economics. Carter’s research is focused on international trade, futures and commodity markets, and he has published more than 130 research papers and authored more than 15 books.

“Dr. Colin Carter is one of the world’s leading experts on international agricultural trade and trade policy issues,” said Vincent Smith, professor of economics in the MSU Department of Agricultural Economics and Economics. “He works extensively with both U.S. and international government and non-governmental agencies and interest groups on trade related disputes, and his academic research has been widely recognized for its insights and importance.”

Carter will address agricultural trade and the Trans-Pacific Strategic Economic Partnership Agreement (TPP), a proposed regional free trade agreement currently being negotiated among the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. TPP is a trade policy of President Obama meant to expand American goods and services exports to new markets while setting high standards of global trade, according to the Office of the United States Trade Representative. The TPP has important implications for Montana’s agricultural exports, according to Smith.

The conference, which is part of MSU’s Celebrate Agriculture weekend, is also designed to provide Montana agricultural, business leaders, agricultural bankers, producers and others in agriculture with quality, unbiased information about issues facing Montana agriculture.

“The outlook conference is an outstanding example of MSU’s commitment to the land-grant mission of bringing high-quality, relevant research findings to the citizens of Montana,” said Jeff Bader, director of MSU Extension. “The event brings important insights about the current standing and future of agriculture from a research perspective, which is always appreciated by our stakeholders.”

During the morning session of the conference, MSU agricultural economics professors will share their expertise on aspects of Montana’s agricultural industry. Speakers include Kate Fuller, who will discuss the status of Montana agriculture; Joe Janzen, who will discuss marketing Montana pulse crops; and Eric Belasco, who will discuss cattle market fundamentals and prices. Registration is $25 for the morning session and lunch. Those who register by Wednesday, Oct. 28, will receive a free parking pass. To register, please visit www.ampc.montana.edu/fallconference/index.html.

Following lunch at 1:45 p.m., two in-depth breakout sessions will be offered. The first session will focus on innovations in price risk management from MSU economics professors Gary Brester, Janzen, Joe Atwood and Belasco. The second session will focus on producer and consumer relationships in local food markets and will feature Dawn Thilmany McFadden, professor of agribusiness at Colorado State University, and MSU Agricultural Economics Professor George Haynes. Several local food businesses will also share their perspective with attendees. Registration is not required for the breakout sessions.

For a full schedule of events and speakers at the conference, please visit http://www.ampc.montana.edu/fallconference/index.html.

A full schedule of events for the Celebrate Agriculture weekend event is available at: http://ag.montana.edu/excellence/agappreciation.htm.

Montana Beef Checkoff Directors Set Work Plan for Upcoming Fiscal Year

Montana Beef Council President Kristin Larson, Stockgrowers Representative

Montana Beef Council President Kristin Larson, Stockgrowers Representative

BILLINGS – The Montana Beef Council will invest about $1.8 million into programs of beef promotion, education, research, consumer information, industry information, foreign marketing and producer communications in fiscal year 2016, which begins Oct. 1 2015. Programs approved are funded through Montana’s 50 cent in-state portion of the $1 per head checkoff.

In action concluding its Sept. 9-11 meeting in Billings, the MBC Board of Directors—all volunteers, including members from nearly all segments of the beef supply chain—approved checkoff funding for a total of 27 project funding requests, or proposals for checkoff funding, in the fiscal year.

“I was so impressed with the engagement between contractors and our board members at this year’s meeting, said Kristin Larson, Montana Beef Council president, a producer and livestock auction market partner from Sidney. “As a producer it is exciting to be part of all the great work and programs happening on our behalf to promote our product.”

As a result of its deliberations, the board of directors approved requests from 13 different organizations that will meet the mission of protecting and increasing demand for beef and beef products. The Fiscal Year 2016 Work Plan for the Montana Beef Council includes:

  • $47,750 for in-state education programs, including health professionals, athletes, classroom education, farm fairs, environmental stewardship award program and tradeshows across the state;
  • $86,465 for in-state promotional programs, focusing on tradeshows, international meat buyer tour of Montana, consumer radio and print advertising, innovative beef contest, barbecue cook-off and statewide retail and foodservice partnerships;
  • $21,000 for in-state beef safety and issues management comprised of disseminating accurate information about the beef community to counter misinformation as well as the beef quality assurance program;
  • $33,450 for in-state producer communications, which includes producer outreach using digital and radio communication as well direct communications to producers about checkoff results;
  • $279,000 for domestic consumer marketing to continue consumer outreach, digital advertising, beef safety research, nutrition research, quality research, issues management, retail support, influencer engagement and foodservice support; and
  • $113,600 for foreign marketing and education in over 80 countries including Japan, Hong Kong, Mexico and many more.
Board members interviewing potential contractors. (L to R: Bill Cok, Richard Anderson, Linda Swanz, Kathy Creighton-Smith)

Board members interviewing potential contractors. (L to R: Bill Cok, Richard Anderson, Linda Swanz, Kathy Creighton-Smith)

Other expenses funded through the budget include $318,200 for administration, which includes insurance, office lease, equipment, office supplies, postage, telephone, Department of Livestock administration expenses, collection administration expenses, board expenses, travel and administrative staff compensation.

The Montana Beef Council is active throughout the year on Facebook, Twitter and Pinterest and can be found at www.montanabeefcouncil.org.