Cattle Markets Trending Down, Extreme Drought Expands in West

Drought Monitor Update August 27

Montana Drought Monitor August 27

Montana Drought Monitor Update, August 27, 2015. Click image to learn more.

Extreme drought continues to expand west of the Divide, now covering 18% of the state. In the northern Rockies and Pacific Northwest, the USDA Forest Service reported approximately 40 large wildfires in progress as of August 26th, as warm and very dry weather persisted.

Moderate drought (D1) was expanded across southeast portions of Idaho. The change is based on low stream flows in the Teton and Henrys Fork basins, and precipitation deficits during the last 60-90 days. Extreme drought (D3) coverage was expanded across east-central Washington, and north-central and northeastern Oregon. Some considerations in the D3 expansion across the Northwest include daily record low stream flows, short-term (2-month) Standardized Precipitation Index (SPI) values, and low precipitation amounts from June 1 – present time throughout the region. In some cases, record or near-record dryness was reported for the June 1 – present time.

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


Montana Weekly Auction Report – August 28

Market: Public Auction Yards, Miles City

Receipts: NA; Last Week NA; Last Year NA

Compared to last report: No weekly summary was posted for Montana markets this week due to light tests, however unevenly steady undertones were noticed on all yearling feeders. Feeder cattle quality was mostly average to attractive, with a few strings of very attractive offerings coming off grass. Flesh conditions were mostly very light to light today as many offerings were coming out of dry country. Demand for feeder cattle was mostly moderate, with moderate to good demand seen at times as buyers continue fight for good lightly fleshed grass cattle to fill feedlots.

Individual reports are available for Billings Livestock and Public Auction Yards.

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


National Feeder & Stocker Cattle Summary – August 28

Receipts This Week:  Total 372,100 – 139,000 (Auctions); 30,700 (Direct); 202,400 (Video/Internet)

Compared to last week: yearlings traded 5.00-10.00 lower with calves selling 10.00-20.00 lower, with instances 25.00-30.00 lower. Order buyers this week were extremely cautious after aggressive pressure from the Stock Market tumble and with very bearish outside markets keeping a strain on all commodity markets. This had order buyers wanting and needing to buy feeders cheaper this week. The cattle complex remains focused on the ability for outside market fundamentals to stabilize and to steady. Demand for calves was light to moderate, with best demand for yearlings; several auctions were getting ready for the “fall run” noting the arrival of new-crop bawling calves this week. With corrections coming in the feeder cattle market, this has prices retreating with pressure coming from fed cattle prices heading back to their summer lows.

Many backgrounders and cattle grazers who have held a little too long are not going to see a rally they have enjoyed in the past, as many yearling steers weighing from 850-950 lbs are trading both sides of 200.00; Prices dropping 10.00-15.00 from early summer highs. As fed cattle prices are declining, cattle feeders are adjusting what they pay for feeder cattle. So far this year, feeder cattle prices have been too high in relation to fed cattle prices and even despite lower feeder cattle prices this week demand remains good for yearlings in the Northern Plains.

Livestock markets remain vulnerable and reacted with lower prices in reaction to global financial worries mostly coming from China’s economic fears. Traders know this affects the commodity markets and as a result, funds have been mostly sellers to reduce their exposure in the commodities. The sell-off in the cattle complex is much hastier and fast paced than the rallies, just getting back to even is a big task.

Auction volume included 52% weighing over 600 lbs and 34% heifers.

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


Weekly Montana Hay Report – August 28

Compared to last week: Alfalfa was steady this week and excellent movement was seen across the state. Demand for Alfalfa was moderate this week on moderate offerings. Grass hay experienced much of the same movement volumes as alfalfa. The western half of the state continues to remain in extreme drought and this region continues to see the best demand for both grass and alfalfa. Wildfires continue to cause smoky, hazy conditions for much of the central and eastern half of the state. This has forced many producers to watch the forecast very closely as hay drying times have increased drastically.

  • Alfalfa:
    • Supreme: Small Squares, 200.00-225.00
    • Good: Large Squares, 150.00-170.00
    • Fair: Large Squares, 115.00-140.00; Large Rounds, 120.00
    • Utility: Large Squares, 100.00 Old Crop
  • Grass:
    • Alfalfa Mix Good: Large Rounds: 125.00
    • Good: Large Rounds, 120.00
    • Fair: Large Rounds, 100.00
    • Utility: Large Rounds, 90.00 Old Crop
  • Timothy Grass:
    • Premium: Small Squares, 180.00-225.00
    • Good: Large Rounds, 120.00; Small Squares, 150.00
  • Barley Straw:
    • Large Squares, 40.00-55.00

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

USDA Invests an Additional $211 Million for Sage Grouse Conservation Efforts

PLC LogoWASHINGTON – Yesterday, USDA Secretary Tom Vilsack announced the Natural Resources Conservation Service will continue its partnership with ranchers to invest in efforts for the conservation of Sage Grouse habitat. The four-year strategy will invest approximately $211 million in conservation efforts on public and private lands throughout the 11 Western states. The Public Lands Council and the National Cattlemen’s Beef Association appreciate the NRCS’s commitment to a continued partnership with ranchers.

“Ranchers across the West appreciate the continued partnership with NRCS through the Sage Grouse Initiative,” said Brenda Richards, PLC president and rancher from southern Idaho. “As the original stewards of our Western lands, ranchers work day-in and day-out to maintain healthy rangelands and conserve our natural resources for the generations to come. The Sage Grouse Initiative has proven itself to be a win-win for livestock producers and the grouse, and the partnership through 2018 will support the continuation of the successful conservation efforts already underway.”

The sage grouse is found in eleven states across the western half of the United States, including California, Colorado, Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming and encompasses 186 million acres of public and private land. In 2010, the Sage Grouse Initiative launched and has helped ranchers implement increased conservation efforts on their land, benefiting both the grouse habitat and rangeland for livestock ranchers.

The Sage Grouse, due to frivolous lawsuit and litigation, is currently at risk of being listed under the Endangered Species Act. However, the ESA has become one of the most economically damaging laws facing our nation’s livestock producers and is great need of modernization. When species are listed as “threatened” or “endangered” under the ESA, the resulting use-restrictions placed on land and water, the two resources upon which ranchers depend for their livelihoods, are crippling. The ESA has not been reauthorized since 1988 and NCBA and PLC believe the rather than listing the grouse under the ESA, efforts like the Sage Grouse Initiative will benefit the bird more and prove that listing is not the answer.

“The Endangered Species Act is outdated and has proven itself ineffective,” said Philip Ellis, who ranches in Wyoming. “Of the 1,500 domestic species listed since 1973, less than two percent have ever been deemed recovered. With this partnership, voluntary conservation efforts have increased, ranchers remain on the land, and wildlife habitat is thriving. In fact, Interior Secretary Jewell announced this year that through working with ranchers and other stakeholders in Nevada and California, the Bi-State Sage Grouse population was no longer at risk and was not listed under the ESA. This is prime example of how land management and conservation efforts should be made, in partnership with those that know the land the best.”

Learn more about the USDA NRCS Sage Grouse Initiative programs here.

Montana Stockgrowers Seeks Nominations for Ranching Woman of the Year

Bev Fryer Ranching Woman of the YearThe Montana Stockgrowers Association is seeking nominations for the 2015 Montana Ranching Woman of the Year. The annual award is presented to an MSGA member who has made great contributions to the Montana ranching community and has gone above and beyond to support their family and friends. Nominations are due October 31 and the recipient will be recognized at MSGA’s annual convention in Billings, December 3-5.

“Women are often the backbone of Montana’s ranching communities. These women often go above and beyond to support their immediate family members and pitch in whenever the need arises in their communities,” said Gene Curry, MSGA President from Valier. “We look forward to recognizing these accomplished women each year at our annual convention and thanking them for their hard work.”

Last year’s recipient of the Ranching Woman of the Year was Bev Fryer, who ranches with her husband, Ed, near White Sulfur Springs. Alongside raising a family, the Fryers raise cattle at the Castle Mountain Ranch, where Bev takes charge of training horses and calving more than 300 heifers each spring. Bev is active in area youth and CattleWomen’s activities, ranch rodeos, and guides hunters looking for elk each year.

Past recipients of the award include Glenna Stucky of Avon, Floydena Garrison of Glen, Helen Hougen of Melstone, Marian Hanson of Ashland, Carol Mosher of Augusta and Donna Sitz-Arthun of Billings.

Nomination letters submitted by family or close friends should identify a ranching woman, who is a member of Montana Stockgrowers, describe her role on the ranch, and the characteristics that set her apart when supporting the family and ranch, as well as describe her involvement in community efforts. Biographies should include the ranching woman’s hometown, family members, and number of years involved in ranching activities.

Along with the nomination biography, submissions should include photos depicting the ranching woman’s family, ranch and community involvement.

Nominations should be submitted to the Montana Stockgrowers office by October 31, 2015 via mail (420 N. California, Helena, MT  59601) or email ([email protected]). For more information contact the MSGA office at (406) 442-3420 or visit mtbeef.org/ranching-woman.

Explanation of Montana Tax Reappraisal Notices

The following is a guest column from Montana Representative Rob Cook, R-Conrad

Representative Rob CookThe arrival of reappraisal notices from the Montana Department of Revenue (DOR) has many Montana taxpayers experiencing sticker shock. But, before we are panicked enough to begin construction of a bunker, it would be useful to know how a sharp increase in appraised market value affects our actual tax bill.

Let’s look at a reappraisal notice. Assume that we find in the table on page 2 that the previous year taxable value for our residence was $1000 and that our current year taxable value is now a frightening $1500. Should we expect that our current year property taxes will also increase by a factor of 1.5?

The short answer is no and, while there are many factors that contribute to this, I’ll attempt to explain a few of the most important.

First, we should consider that if the taxable value of our property grew at such an alarming rate, shouldn’t the taxable value of all the neighboring properties have grown by a similar factor? If we didn’t complete any new construction or major renovations since the last appraisal in 2008 – then it is likely that our new values simply reflect an uptick in the local housing market and that our new taxable value has not moved disproportionately to that of our neighbors.

Perhaps inadvertently, we have uncovered one of the nuances of the Montana property tax system – when we are investigating a particular class of property the absolute value of an individual change is not as important as the comparison of the properties relative change to the relative change of other members in its class. For example, if the average change for neighboring properties was 1.3 and our change was 1.5, then we should expect that our taxes will increase by a greater percentage than our neighbors. Conversely, if the average change for neighboring properties was 1.7, then we could expect that our taxes would increase by a smaller percentage than our neighbors. In the latter case, it is actually possible for our taxes to decrease!

Next, we should consider what happens when the taxable value of every class of property increases. We know that the total taxes collected is equal to the taxable value multiplied by the mill rate, so did our county and local government just get a license to explode their budgets?

Fortunately, in this scenario, taxpayers are protected by Montana law. The growth in county and local government budgets is limited to one-half the average rate of inflation plus the taxes provided by any new growth. Thus, if the total taxable value goes up, the mill rate must be reduced so that total collections do not exceed the maximum allowable budget.

Finally, if we take into account the maximum budget constraint and the relative movement of our property within its class, it becomes apparent that the actual property taxes we will be required to pay does not mirror the increase in taxable value. In fact, in most cases any increase in property taxes should lie much closer to the increase provided by the maximum budget constraint than to the multiplier derived from the comparison of the current and existing taxable values.

This has been a very simplistic explanation of a reappraisal notice and I would be remiss if I did not mention that, in addition to the discussed relative movement within a class, there is also relative movement between classes. The legislature attempts to mitigate the latter by employing a technique called ‘taxable value neutrality’.

Taxable value neutrality simply means that the statewide total taxable value of residential, commercial, and agricultural properties remains the same each year. This was achieved in the last session by lowering the tax rates for each of these classes.

Because this mitigation technique is applied to the statewide totals, it can cause tax shifting at the local level. If we wish to be strictly accurate, these shifts must be considered when attempting to decipher the actual tax impact of the reappraisal notice.

Our property tax system and reappraisal process can be difficult to understand. I have selected a residential property example but the same considerations apply to commercial and agricultural properties. I hope the explanation has been useful and I appreciate your time.

Federal judge denies injunction to stop sheep grazing in Gravelly Mountains

IMG_0589In July, U.S. District Court Judge Brian Morris denied a preliminary injunction to block sheep grazing on two U.S. Forest Service allotments in the Gravelly Mountains in southwestern Montana. The injunction was sought by the Gallatin Wildlife Association (GWA) and would have affected permittees Helle Livestock and Rebish/Konen Livestock Limited Partnership. The decision is significant because it demonstrates that the Court is thus far unconvinced by GWA’s claims and presently finds the group unlikely to succeed on the merits of the case.

GWA claimed an injunction was necessary to prevent irreparable harm to grizzly bears and bighorn sheep, as well as its members’ recreational and aesthetic values. In a memorandum explaining his decision to deny the injunction, Judge Morris highlighted the fact that domestic sheep have grazed in the Gravelly Mountains since the 1860s and seven domestic sheep grazing allotments have been managed there since the 1920s. He stated, “Gallatin fails to explain how this historical grazing apparently has not caused irreparable harm, yet allowing grazing to occur during the 2015 grazing season would cause irreparable harm.”

Judge Morris also pointed out that Montana Fish, Wildlife and Parks introduced the Greenhorn herd of bighorns sheep into the Gravelly Mountains just 12 years ago. A distance of six to 17 miles separates the bighorn sheep herd from one of the grazing allotments. No commingling has occurred to-date and no bighorn sheep have been removed or died due to domestic sheep grazing. Regarding grizzly bears, Judge Morris repeated his belief that GWA had failed to provide evidence why this year would be any more irreparably harmful to grizzly bears than the past 150 years of sheep grazing.

In the overarching case, GWA brought suit against the U.S. Forest Service and the U.S. Fish and Wildlife Service (USFWS) challenging the Annual Operating Instructions, the 2009 Revised Forest Plan, USFWS’s 2013 Biological Opinion for the Revised Forest Plan, and the Forest Service’s failure to prepare supplemental National Environmental Policy Act (NEPA) analysis on specific Allotment Management Plans. GWA alleges that the Forest Service has violated NEPA, the Endangered Species Act, and the National Forest Management Act. Seven grazing allotments in the Gravelly Mountains are at issue in the case. The Helles and Rebish/Konen Livestock, as permittees, were allowed to intervene.

Under the Administrative Procedure Act, the Court must defer to the agencies’ judgment, and will only set aside their decisions if it determines their actions were “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. 706(2)(A). The Court’s preliminary review in the context of the injunction decision revealed no such issues.

The Court did express concerns about the Forest Service failing to include a Memorandum of Understanding (MOU) between itself, Montana Fish, Wildlife and Parks, and the permittees as part of its final Environmental Impact Statement. The MOU prohibits the Forest Service from changing the domestic sheep grazing, but any of the parties can terminate the agreement at any time. The fact that the MOU was eventually acknowledged, “tempers the Court’s concern,” according to the memorandum. However, this issue could have an impact on GWA’s claims in regards to NEPA violations.

In the memorandum, Judge Morris emphasized the challenge for federal land managers to balance the “seeming incompatibility of grizzly bear and bighorn sheep with domestic sheep.” He stated that the issues presented by GWA will likely remain beyond this grazing season and the Court will carefully examine the issues raised by the case. However, an injunction to halt grazing this season was not warranted.

By Ariel Overstreet-Adkins, law student at the University of Montana School of Law

Register now for the 2015 Young Ag Leadership Conference!

YALC Young Ag Leadership Conference MontanaRegistration is now open for the twelfth annual Young Ag Leadership Conference (YALC)! This exciting conference is set to take place October 2-4 at the Crowne Plaza in Billings, MT. YALC is a collaborative effort between nine of Montana’s agricultural organizations, offering attendees a chance to take part in various workshops, discuss current ag issues, meet with industry leaders and network with fellow young people who live Montana agriculture.

Anyone aged 18-40 and involved or interested in agriculture is encouraged to attend. The conference is put together by a committee of representatives from each of the following organizations: Alpha Gamma Rho Alumni Association, Montana Agri-Business Association, Montana 4-H Foundation, Montana FFA Foundation, Montana Farm Bureau Federation, Montana Farmers Union, Montana Grain Growers Association, Montana State University College of Agriculture, and the Montana Stockgrowers Association.

The weekend kicks off on Friday with our industry tours. This optional excursion includes stops at Diamond X Farms for a sugar beet harvest, ORIgen, Inc. Genetic Services and Trailhead Spirits Distillery. Later that evening, attendees will enjoy a hands-on demonstration and presentation about marketable meats for today’s consumers by culinary experts from the National Cattlemen’s Beef Association (NCBA).

During Saturday’s breakfast, Mitch Smith, Director of Quality Systems for McDonald’s Corporation, will present “Farm to McMarket,” where he will discuss product sourcing between McDonald’s, the worldwide hamburger chain, and Montana producers. Participants will then choose from an expanded slate of workshop topics including everything from Retirement Planning for Farmers and Ranchers and Running a Successful AI program to Crop Rotations and Beekeeping 101. With nine workshop titles to choose from, there is something on the agenda for everyone. Saturday’s luncheon will feature an entertaining talk by Janice Person of Monsanto titled “GMO’s: The Real Story;” the day will wrap up at Zoo Montana with a Food Truck, Brewery Bash and Dance where Sweet Briar will provide the music. The entire conference will conclude on Sunday morning with, “It’s Just You and the Media: Being Heard Above the Crowd,” a motivating talk by Daren Williams, Executive Director of Communications at NCBA.

The cost of registration is only $40 for the entire conference, with all meals provided. After the pre-registration date of September 25, fees increase to $50. To register, go to mfbf.org or download a 2015 YALC registration packet. For more information, contact Ryan Goodman at MSGA ([email protected]). You can also check out our event page on Facebook.

Register now, you don’t want to miss this!

Cattle on Feed Up 3 Percent, Smoke Impedes Second Hay Cutting

Drought Monitor Update August 20

Montana Drought Monitor August 20

Montana Drought Monitor Update, August 20, 2015. Click image to learn more.

Extreme drought continues to hold its grip on portions of far Western Montana where fire danger remains immediate concern. Warm, dry air continued to dominate the West. Click here to hear from Idaho ranchers impacted by the large Soda Fire.

California continues to deal with its ongoing drought. Water managers and farmers are adapting their practices to help conserve water and reduce economic loss in the state.

During the next 6-10 days, chances are likely Montana will experience warmer than normal temperatures with a strong ridge holding its grip on the West.

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


Montana Weekly Auction Report – August 21

Market: Public Auction Yards, Miles City

Receipts: 2,398; Last Week NA; Last Year NA

Compared to last report: The majority of feeder cattle offered this week were yearlings. Quality this week was average to attractive with a few long strings of very attractive yearlings. Yearlings offered this week come both off grass as well as out of backgrounding lots. Overall flesh conditions were light to moderate this week. Even backgrounded yearlings were in light to moderate flesh and sold equally as well as grass cattle.

Weigh-up cows sold overall with light to moderate demand on mostly light offerings. Demand for Slaughter cows was light to moderate this week with the best demand seen for boning and lean cows. Fleshy breaking cows sold on light demand as packer buyer back off on these offerings. This allowed for feeding cow buyers to purchase some of these offerings to return to the country to feed. A large run of cull bulls continues to come to town after the breeding season. Many of these bulls in very light to light flesh.

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


August Cattle On Feed Report

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.0 million head on August 1, 2015. The inventory was 3 percent above August 1, 2014.

Placements in feedlots during July totaled 1.55 million head, 1 percent below 2014. Net placements were 1.49 million head. During July, placements of cattle and calves weighing less than 600 pounds were 365,000 head, 600-699 pounds were 235,000 head, 700-799 pounds were 327,000 head, and 800 pounds and greater were 620,000 head. Placements are the lowest for July since the series began in 1996.

Marketings of fed cattle during July totaled 1.73 million head, 3 percent below 2014. Marketings are the lowest for July since the series began in 1996.

Read more from USDA’s latest Cattle on Feed Report.


National Feeder & Stocker Cattle Summary – August 21

Receipts This Week:  Total 178,200 – 136,300 (Auctions); 24,500 (Direct); 17,400 (Video/Internet)

Compared to last week: calves and yearlings traded weak to 5.00 lower with a number of instances 10.00 lower from midweek on. Direct sales traded steady to 2.00 lower early in the week, then turning 3.00-7.00 lower late week. Cattle futures seem to keep the focus on the bearish side, not wanting to show much life. Cattle futures on Wednesday reared their ugly head closing with sharp triple-digit losses, making new lows for the month. Market psychology keeps focus on negative fundamentals, with plentiful supplies and lower prices for competing meats, struggling outside markets, lower meat exports and the focus of trading the market on what is happening right now.

In the next 30-45 days auctions should see a good number of feeder cattle moving off pasture into feed yards. Unless the fed cattle market gets a move up the feeder cattle market won’t be able to maintain the premiums that has been paid for yearlings and calves the previous months.Time is running out to take advantage of summer grilling demand and with the fed cattle market remaining stagnant, cut-out values have made some steady gains over the last couple of weeks heading into Labor Day Weekend.

Auction volume included 54 percent weighing over 600 lbs and 36 percent heifers.

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


Weekly Montana Hay Report – August 21

Compared to last week: Alfalfa was steady this week as rains across the northern and eastern parts of the state over the past few weeks have eased some forage concerns. The urgency to find hay seen earlier in the month seems to have scaled back as pasture and range conditions have improved. Demand for Alfalfa was moderate this week. Grass hay experienced many of the same issues as lighter demand was seen across the state this week. Many producers seem willing to wait this out and see if market conditions improve as we head into fall.

The western half of the state continues to remain in extreme drought conditions and wildfires continue to plague the area. Hay to ship to this region of the state remains in good demand and has helped provide some stability to the rest of the state’s hay markets. Additionally, the wildfires have caused smoky conditions for much of the central and eastern half of the state causing low visibility conditions. This has impeded many finishing up second cutting or starting on third as hazy, overcast conditions make for longer dry times.

  • Alfalfa:
    • Supreme: Small Squares, 200.00-225.00
    • Good: Large Squares, 150.00-170.00
    • Fair: Large Squares, 115.00-140.00; Large Rounds, 120.00
  • Grass:
    • Good: Large Rounds, 120.00
    • Fair: Large Rounds, 100.00
  • Timothy Grass:
    • Premium: Small Squares, 180.00-210.00
    • Good: Large Rounds, 120.00; Small Squares, 150.00

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

Catastrophic Wildfires Across the West Bring Attention to Need for Management

PLC LogoWASHINGTON – As massive wildfires blaze across the West this week, the need to address the increasing wildfire threat is even more apparent. According to the Agriculture and Interior Departments, there are currently 19,000 interagency personnel fighting wildfires across 13 states. The Soda Fire that burned across southern Idaho and eastern Oregon consumed roughly 300,000 acres of rangeland, threatening the homes and lives of residents, livestock and wildlife.

While Washington bureaucrats call for more funds to suppress the growing fires, the Public Lands Council and the National Cattlemen’s Beef Association sent a letter to the White House today stressing the importance of proper natural resource management in order to help prevent these catastrophic events in our nation’s forests and rangeland which are managed by the U.S. Forest Service and Bureau of Land Management.

According to the U.S. Forest Service, wildfire suppression now costs the agency more than $1 billion annually and for the first time in its 110-year history, the agency is spending more than half of its budget on wildfire suppression. When the cost of suppression exceeds the budgeted amount, USFS is forced to reallocate funds from other programs to cover the cost of fire suppression, known as fire-borrowing. While PLC and NCBA believe that having fire suppression funds available to cover the cost of fighting fire and prevent fire-borrowing is important, the organizations firmly believe that proper forest and rangeland management is the key to reducing catastrophic wildfires in the first place.

PLC President Brenda Richards said the mismanagement of federally-owned forests and rangelands has created great economic hardship and danger for ranchers that depend upon the land.

“This year’s fire season has proven once again the federal mismanagement of our forests and rangeland,” said Richards, whose ranch has suffered damage in the current Idaho/Oregon fire. “The livestock industry and rural economies will spend decades attempting to recover from the millions of dollars’ worth of infrastructure damage and forage loss that have been the result of catastrophic wildfire in recent weeks and years, not to mention the loss of valuable wildlife habitat. Because of frivolous litigation and attempts to keep peace with extremists, our government agencies have hampered the most natural and cost-effective wildfire prevention techniques, and subsequently put the lives of ranching families like mine and others in rural communities at risk.”

As the letter stresses, natural forest fires were nature’s tool to burn the underbrush and smaller trees, creating less competition for resources and resulting in healthier forests. Due to population growth and urban sprawl, people now live in the natural path of fires and as a result humans must take over managing the resources. However, Philip Ellis, NCBA president from Chugwater, Wyo., said with 82 million acres of Forest Service land at an elevated risk of catastrophic wildfires, insect, or disease outbreak, it is clear the federal agencies tasked to manage our forests are failing to exercise their responsibility.

“We have seen more red tape and regulation than ever before, and our natural resources are paying the heavy price,” said Ellis. “This administration continues to push the best caretakers off the land, and now it’s up to Congress to rein the agencies in. As Congress continues discussions to address the lack of stewardship these agencies have shown to the land and natural resources, we encourage them to find a solution that will help prevent these wildfires, rather than simply throwing more money in the attempt to control them after the fact.”

PLC and NCBA strongly supported H.R. 2647 introduced by Rep. Bruce Westerman (R-Ark.) which passed the House on a bipartisan vote, and continues to support S. 1691 introduced by Sen. John Barrasso (R-Wyo.) which saw a hearing in July. These bills would require the Forest Service to treat a minimum of 2 million acres with mechanical treatment or prescribed burns each year, with reduced NEPA requirements for these projects. Further, this legislation would discourage frivolous litigation by requiring litigants to post a bond equal to the estimated costs of court proceedings and would require an arbitration process to precede the lawsuit. The legislation would also prevent fire borrowing and stop the federal agencies from raiding accounts necessary for proper forest and range management. PLC and NCBA encourage the Senate to take up this legislation and pass it without delay and call for federal land management agencies to streamline regulations that will allow for active management of forests and rangelands and discontinue harmful closed-door settlements with litigious radical groups that seek to see non-management on all lands across the west – the very action which leads to catastrophic wildfire.

–Press Release, Public Lands Council

Cattle Futures Skeptical, Feed Costs Down, Global Trade Rocky

Drought Monitor Update August 13

Montana Drought Monitor Update, August 13, 2015.

Montana Drought Monitor Update, August 13, 2015. Click image to learn more.

Extreme drought continues to hold its grip on portions of far Western Montana where fire danger remains immediate concern. Cooler than normal temperatures dominated the west this last week. Most areas were normal to 5 degrees below normal for the week, followed by much warmer temperatures this week.

In Washington and Oregon, D3 conditions were pushed to the west as low flows on rivers and streams and warm water temperatures are impacting the region. In Idaho, D3 was expanded in the northern portion of the state where conditions continue to worsen.

The high plains and northern Rocky Mountains look to be 3-6 degrees below normal during the next week.

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


Montana Direct Feeder Cattle Summary for Week Ending August 14

Receipts: 765; Last Week 200; Last Year 0

Compared to last report: Not enough comparable sales on feeder steers or heifers for a market trend. Supply consisted of 100 percent over 600 lbs and 33% heifers. Steers: Medium and Large 1 Current 900 lbs 207.80; Sep 835 lbs 213.30. Heifers: Medium and Large 1 Sep 850 lbs 203.00.

Read more from USDA’s latest Montana Direct Feeder Cattle Summary.


National Feeder & Stocker Cattle Summary – August 14

Receipts This Week:  Total 229,700 – 129,900 (Auctions); 53,100 (Direct); 46,700 (Video/Internet)

Compared to last week: yearling feeder cattle sold steady to 3.00 higher while calves traded on a lighter test traded steady to 5.00 higher. Several auctions on yearling feeders noted full advance on the heifers. Direct trade was fully steady with last week. Yearling demand continues to be best in the high corn production areas especially in the North Central States as farmer feeders are also engaged in purchasing yearlings to feed. Last Friday packers bid aggressively on tight fed cattle supplies ranging from 150.00-153.00 for live prices. Signs of beef demand improving with seasonal strength has packers selling product higher and managing their kill levels has them operating more positive to the black.

This week saw some wild shifts in the commodity markets starting with the USDA Crop Report on Wednesday. USDA’s Crop Report on Wednesday saw larger than expected corn and soybean estimates than trade expected. This should be welcome news for livestock producers as feed cost should remain relatively low and support expansion in beef, pork and poultry. The protein pipeline is putting out a good amount of product from all three species involved.

There have been some significant challenges over the last several months and of late as on Tuesday China devalued their currency over slumping economy in the world’s second largest economy. This sent the Dow in a sell-off mood on Tuesday along with wide spread commodity pressure as other world countries feeling it could get harder to sell their goods and products to China. A continuing strong dollar relative to other currencies has other countries buying less as it puts a decline in their purchasing power. Increasing production and competition from pork and poultry may have some challenges for beef domestically and abroad.

Feeder Cattle contracts want to anticipate better news especially in the fed cattle market but seem skeptical to participate. On Wednesday Feeder cattle futures had gains of near 2.50 with sharply lower corn contracts, but live cattle contracts eroded with sharp losses and support for feeders quickly faded and were unable to hold strong midday gains. But feeder cattle prices this week and last week reported through the auctions and video sales are much more resilient than the cattle futures.

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


Weekly Montana Hay Report – August 14

Compared to last week: Alfalfa sold steady to 10.00 lower. No comparison for Grass hay or Timothy grass. Trade for all types of hay was slow to inactive. Rain was still pervasive throughout the week which impeded hay making. What hay did get made is poor quality. Throughout the coming week, the state is expected to experience mostly warm temperatures with intermittent clouds.

  • Alfalfa:
    • Supreme: Small Squares, 200.00-210.00
    • Good: Large Rounds, 150.75-155.00
  • Grass:
    • Good: Large Squares, 140.00
  • Timothy Grass:
    • Premium: Small Squares, 180.00-210.00

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

Beef Checkoff Adopts New Committee Structure

beef checkoff logoSubsequent to adoption of the new 2016-2020 Beef Industry Long Range Plan during the 2015 Cattle Industry Summer Conference in Denver last month, the national Beef Checkoff Program transitioned its committee structure to reflect the consumer demand drivers critical to the success of that long range plan.

“Our checkoff committees align directly with the core strategies of the current Long Range Plan to make certain that our checkoff investments are tightly focused on the most important goals for the industry as a whole,” said Cattlemen’s Beef Board Chairman Jimmy Maxey, “so we felt it necessary to realign our committee structure with that new Long Range Plan.”

Federation of State Beef Councils Chairman Jennifer Houston explained further: “Checkoff committee deliberations are a key element in how programs are identified, and this new blueprint for our committee structure will go a long way toward focusing our checkoff efforts.”

The five new checkoff committees, which comprise members of the Beef Board and the Federation in recommending programs for funding with the Beef Board budget, include:

  1. Safety Committee – Beef safety research and communication at all levels will be the focus of this committee, including how producers improve the safety of their product and how to best share safety information with beef community stakeholders, consumers and influencers.
  2. Nutrition and Health Committee – This committee will focus on beef nutrition and health research and communication, including how producers might improve and share beef’s nutrition and health benefits with beef community stakeholders, consumers and influencers.
  3. Innovation Committee – This committee will focus on innovation in both beef products and beef product marketing in the channels. That is based on the fact that consumers, processors, retailers, foodservice operators, and other beef community stakeholders want new, fresh ideas for beef in the retail meat case and on consumers’ plates.
  4. Export Growth Committee – Given that export markets offer opportunity for unparalleled growth for U.S. beef, this committee will focus on growing value and volume of exports through management of access issues originating within the market itself, as well as aggressive and effective in-country product marketing in those countries offering excellent opportunity for U.S. beef.
  5. Social Responsibility Committee – With a great story to tell, this committee will focus on building and maintaining consumer trust by using research to pursue continual improvement, with an eye toward long-term sustainable and profitable beef production, and better consumer communications.

In addition to the five committees, the two organizations voted for continuation of the checkoff’s Market Research Working Group and Investor Relations Working Group (formerly the Producer Communications Working Group).

For Summer Conference committee recaps, and to learn more about your beef checkoff investment, visitMyBeefCheckoff.com.

–Press Release, Cattlemen’s Beef Board