News Update
Aug. 4, 2008

Schafer Announces Help for Drought-Stricken Counties

Agriculture Secretary Ed Schafer announced Aug. 1 that producers in counties approved for emergency haying and grazing on Conservation Reserve Program (CRP) land because of drought will have rental payments cut by 10% instead of the standard 25%.

To date, that includes counties in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas.

CRP is a voluntary program that offers annual rental payments and cost-share assistance to establish long-term resource-conserving cover on eligible land. To be approved for emergency haying or grazing, a county must be listed as a level “D3 Drought — Extreme” or greater, or have suffered at least a 40% loss of normal moisture and forage for the preceding four-month qualifying period.

State FSA committees are reminded they may authorize emergency haying or grazing of CRP in counties currently listed as level D3 drought according to the U.S. Drought Monitor. To participate, livestock producers in counties approved for emergency haying or grazing assistance must certify they are an eligible livestock producer in an eligible county approved for emergency haying and grazing and that they are requesting emergency haying and grazing of eligible CRP acreage from another eligible CRP participant who is willing to provide hay or grazing.

The primary nesting and brood rearing season of the State where the land to be hayed or grazed is located will be respected. CRP participants who do not own or lease livestock may rent or lease the grazing privilege to an eligible livestock farmer located in an approved county.

For all land enrolled in CRP that has been approved for emergency haying and grazing due to drought only, the Farm Service Agency (FSA) will reduce the payment reduction from 25%, which was announced earlier, to 10%. This 10% payment reduction will be assessed based on the number of acres actually hayed or grazed times the CRP annual rental rate times 10%.

The following counties have been approved for emergency haying and grazing due to drought:

Colorado: Sedgwick, Logan, Lincoln, Washington, Kiowa, Prowers, Bent, Baca, Las Animas, Otero, Crowley, Pueblo, El Paso

Kansas: Sherman, Wallace, Hamilton, Stanton, Grant, Greeley, Haskell, Stevens

Montana: Sheridan, Richland, Dawson, Blaine, Phillips, Glacier

North Dakota: Divide, Burke, Renville, Bottineau, Rolette, Towner, Williams, Mountrail, Ward, McHenry, Pierce, McKenzie, Dunn, McLean, Sheridan, Golden Valley, Billings, Stark, Mercer, Oliver, Morton, Slope, Hettinger, Grant, Bowman, Adams.

Oklahoma: Cimarron

Texas: Briscoe, Castro, Dallam, Deaf Smith, Hansford, Hardeman, Hartley, Lipscomb, Oldham, Parmer, Potter, Randall, Sherman, Swisher.

More information on emergency haying and grazing is available at local Farm Service Agency (FSA) offices and online at www.fsa.usda.gov; click on Conservation.

Purdue Economist: Cattle Prices to Set Records Late 2008 and Beyond

Purdue University Extension Economist Chris Hurt predicts that cattle prices should reach record highs beginning in the fourth quarter of 2008 and continue to set records in 2009 and 2010.

According to Meatingplace.com, Hurts report suggests beef supplies will increase by 2% in the third quarter, then drop by 5% in the final quarter of 2008.

For 2009, Hurt says he expects more acres to be released from CRP and returned to crop production, more haying and grazing allowed on CRP acres, and a leveling off of corn ethanol demand. Hurt also suggests an improvement in beef exports, Meatingplace.com reports.

K-State Beef Conference to Feature Strategies for Tough Economy

Today’s tough economic environment for cattle producers makes each production decision more important than ever. Producers can hear about some of their options at the K-State Beef Conference Aug. 7-8 in Manhattan, Kan. The conference will be at Kansas State University in the College of Veterinary Medicine’s Frick Auditorium, located in Mosier Hall.

Registration on Aug. 7 will begin at 9 a.m., and the program will start at 10 a.m. Presentations will include information on current economic issues in beef production — including optimizing feed and forages, cattle management and supplementation strategies, and more, said Larry Hollis, K-State Research and Extension veterinarian and conference coordinator.

More information on the conference, including a printable registration form, is available online at www.asi.ksu.edu/ (click on “K-State Beef Conference”) or by phone at 785-532-1246.

— Release provided by K-State.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.