News Update
Nov. 24, 2009

Carcass Weights Fall

There may be plenty of problems in the beef market at this time, but feeders falling behind in their marketings does not seem to be one of them. The latest U.S. Department of Agriculture (USDA) report showed a continued decline in steer carcass weights and, as the chart below illustrates, the decline in weights during the past four weeks has been quite dramatic for this time of year.

The latest numbers on steer weights are for the week ending Nov. 7, and USDA reported that dressed carcass weights were 847 pounds (lb.), 4 lb. lower than the previous week and 23 lb.lower than just four weeks ago, when steer dressed weights were hovering around 870 lb.

Normally, one sees such sharp declines in the winter months when cold and wet weather take a toll on animals and cause them to lose weight. However, poor weather does not seem to explain the recent drop in steer weights. It has been somewhat wet and muddy in some areas, but not enough to get such a dramatic decline.

One potential reason might be that the decline in weights reflects the fact that feedlots actually got ahead of themselves in marketing cattle in the second half of October and first week of November, and were induced to accelerate sales given nearby December futures were approaching $87 per hundredweight (cwt.). One could find this argument somewhat unconvincing since the latest cattle-on-feed report showed that feedlot marketings in October were actually 3.1% lower than a year ago. It’s a valid point, but also one that does not account for the fact that much of that decline came in the first half of October, which coincidentally was the time of those 870-lb. carcass weights.

Based on the preliminary USDA daily steer and heifer slaughter data, fed slaughter Oct. 19-Nov. 7 was 1.5 million head, some 1.3% higher than the comparable period a year ago. This may not seem like a big increase, but one needs to consider the number of animals that were likely available for sale during this period (not all cattle on feed at a given time can be sold at that time). For this, we need to look back at the cattle placed on feed some four to five months before.

The cattle-on-feed report shows that in May 2009, feedlots placed 13.8% fewer cattle on feed than the previous year and June placements were also down 8.4% from the prior year. So how does one sell 1.3% more cattle than the year before at a time when the potential supply of marketable cattle is down 8%-10%? You sell cattle that are too light.

— Adapted from The Daily Livestock Report, Nov. 23, 2009, published by Steve Meyer and Len Steiner.

R-CALF, Others Urge USDA, Congress to Use Reduced NAIS Funds to Dissolve Program

A 100-group coalition — in a letter to the USDA and a separate letter to Congress — is urging that the National Animal Identification System (NAIS) be dissolved completely and that all 100 organizations look forward to working with USDA “… to enhance our nation’s animal disease preparedness in a manner that builds upon our past successes and respects the interests of U.S. livestock producers and consumers.”

The letter to Congress asks members of the House and Senate to “… support the limited use of NAIS funding to shut down the program, and to refocus the agency on measures that truly improve animal health.”

In the 2010 Agriculture Appropriations Bill, Congress reduced NAIS funding to $5.3 million, but did not specify how those funds were to be allocated. For more information, visit www.r-calfusa.org.

Click here to read letter to USDA.

Click here to read letter to Congress.

— News release by R-CALF USA.

Texas 4-H Day of Thanks Turns Into Unexpected Community Efforts Across State

Sometimes the simple act of giving thanks gets blown all out of proportion.

Just ask Chris Boleman and Toby Lepley, two fellows who had an idea last spring that Texas 4-H should “give something back” in gratitude to the communities that have supported the state’s largest youth program for more than 100 years.

“What we’d hoped was that we’d get a good many 4-H kids involved in devoting a Saturday in October to some kind of service project in their hometowns,” said Boleman, who is the state leader for Texas 4-H. “That did happen in a program we called ‘One Day 4-H’, but what we also got was this outpouring of support from all kinds of people and organizations that wanted to help too, and their generosity just floored us.”

In all, some 9,500 children and adults devoted 88,800 hours in volunteer efforts that directly reached an estimated 305,400 people, according to Lepley, a 4-H specialist who has been compiling figures from results reported during the last month from 256 service efforts throughout the state.

Lepley noted that 4-H groups partnered with 378 other organizations — ranging from local food pantries to national charities to achieve these results:

• $120,361 raised for other organizations
  
• $68,458 worth of in-kind donations.
  
• 17,635 lb. of food collected.
  
• 54.15 miles of road or beaches cleaned.
  
• 5.2 million lb. of trash collected or recycled.
  
• 3,656 care packets made or delivered to military and seniors.
  

“These outcomes were far beyond what we expected for trying something for the first time,” Lepley said. “But there seems to be such a wellspring of untapped community enthusiasm for these efforts that we see this event evolving into a day of youth service that could involve many other youth organizations besides 4-H.”
For full release and photos, click here.

— News release by Dave Mayes as News from Texas AgriLife Extension.

17 States Declare Nov. 20 As ‘Thank A Farmer’ Day

In recognition of the 22 million Americans who work on farms or in farm-related jobs, a number of government officials and ag secretaries issued a proclamation that declared Nov. 20, 2009, “Thank your Farmers and Ranchers” day in their respective states. This came as a result of beef checkoff and state beef council efforts around the “Give Thanks” campaign.

Participating states included: Participating states included: Arizona, Colorado, Georgia, Illinois, Kansas, Kentucky, Missouri, New Mexico, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Washington, Wisconsin and Wyoming.

“The Colorado Beef Council has sincere appreciation for the checkoff-funded ‘Give Thanks’ campaign and we are very proud to be one of the states declaring this day as ‘Thank a Farmer’ day,” said Fred Lombardi, Colorado Beef Council executive director. “It has really brought a heightened sense of awareness in consumers and activated beef producers throughout Colorado. We’re thankful for their dedication to the beef industry every day.”

These state officials noted that the holiday season is a good time to remember that America’s agricultural sector works to provide consumers with safe, wholesome and affordable foods that nourish bodies and create the centerpieces for our traditional family gatherings and celebrations. In fact, the average U.S. farmer now feeds 144 people a day, in the United States and abroad, compared to 46 people in 1960. And, many consumers aren’t aware of where their food comes from, since the average American is now three generations removed from farming as a livelihood.

“Farmers and ranchers not only provide the food we eat, but also help sustain rural communities, preserve open space and wildlife habitat, and protect the environment,” said North Dakota Stockmen’s Association (NDSA) President Jack Reich, a Zap, N.D., rancher.

Here are a few farm facts:

• U.S. consumers spend about 10% of their disposable income on food, compared to 22% in the United Kingdom, 26% in Japan and 28% in South Africa.
  
• Farmers and ranchers provide food and habitat for 75% of the nation’s wildlife.
  
• The U.S. beef industry is comprised of 1 million beef and dairy producers, 75% of whom work on operations that have been in the family for at least two generations.
  
• The average U.S. farm is 441 acres; 99% are classified as family operations. About 41% of total U.S. land area is farmland.
  
• 85% of U.S. grazing lands are unsuitable for crops; grazing animals on this land more than doubles the land that can be used to raise other foods.
  

(Sources: 2007 U.S. Census of Agriculture, USDA, agcensus.usda.gov; Agriculture Council of America, Overland Park, Kan.)

For more information about checkoff-funded activities, visit MyBeefCheckoff.com.

— Release provided by the Beef Checkoff Program.

— Compiled by Shauna Rose Hermel, editor, Angus Productions Inc.