News Update
August 9, 2012
Agriculture Secretary Vilsack, Obama Administration Deliver New Drought Assistance to America's Producers
As part of continuing steps by the Obama Administration to assist livestock producers in response to the historic drought, Agriculture Secretary Tom Vilsack today highlighted that USDA will utilize nearly $16 million in financial and technical assistance to immediately help crop and livestock producers in 19 states cope with the adverse effects of the historic drought. In addition, USDA will initiate a transfer of $14 million in unobligated program funds into the Emergency Conservation Program. These funds can be used to assist in moving water to livestock in need, providing emergency forage for livestock, and rehabilitating lands severely impacted by the drought. Together these efforts should provide nearly $30 million to producers struggling with drought conditions.
"President Obama and I continue to work across the federal government to provide relief for those farmers and ranchers who are affected by the severe drought conditions impacting many states across our nation," said Vilsack. "This additional assistance builds on a number of steps USDA has taken over the past few weeks to provide resources and flexibility in our existing programs to help producers endure these serious hardships. As this drought persists, the Obama Administration is committed to using existing authorities wherever possible to help the farmers, ranchers, small businesses and communities being impacted."
Yesterday, Aug. 8, in Washington, President Obama convened his White House Rural Council to review Executive Branch response actions and to develop additional policy initiatives to assist drought-stricken Americans. Following the meeting, the White House announced a number of new measures the Administration is taking, including USDA's assistance for livestock and crop producers, the National Credit Union Administration's increased capacity for lending to customers including farmers, and the U.S. Department of Transportation's emergency waivers for federal truck weight regulations and hours of service requirements to drought-stricken communities. President Obama also stressed the need for the entire Administration to continue to look at further steps it can take to ease the pain of this historic drought.
For more information and the full release, click here.
CRI to Purchase Mexican A.I. Company
The Shawano-based Cooperative Resources International has signed a letter of agreement to acquire Reproducción Animal S.A. de C.V. (RASA) of Tlalnepantla, Mexico. In a news release, Cooperative Resources International (CRI) said managers from both firms are finalizing business plans with an expected transition date of Jan. 1, 2013.
RASA has had a long working relationship with CRI, as the business has been the exclusive distributor of CRI bovine genetics throughout Mexico for the past 40 years.
"RASA is a very successful organization. Year after year, they have been among our top distributors," said Huub te Plate, CRI vice president of international marketing. "We appreciate RASA's commitment and cooperation over the past four decades and look forward to working alongside our RASA colleagues in this new business relationship."
CRI is a member-owned agricultural holding cooperative consisting of two subsidiaries: AgSource Cooperative Services and Genex Cooperative Inc.
Ag Deputy Secretary Announces Opportunities for Small Meat and Poultry Processors
Agriculture Deputy Secretary Kathleen Merrigan announced that Ohio will be the first state to participate in USDA's Cooperative Interstate Shipment Program. Under this program, Ohio's small, state-inspected meat processors will be able to ship their products across state lines. The cooperative interstate shipment program will expand economic opportunities for America's small meat and poultry processors, strengthen state and local economies, and increase consumer access to safe, locally-produced food.
"This agreement allows a small processor in Ohio to sell products to neighbors in Pennsylvania, West Virginia, Indiana and beyond," said Deputy Secretary Merrigan. "Expanding market opportunities for meat from local processors makes these small businesses more viable, while also ensuring that participating establishments have robust food safety systems in place to produce safe food for consumers."
Under the cooperative agreement, small, state-inspected businesses with 25 or fewer employees will be allowed to sell meat products across state lines. Meat products produced in selected establishments will be subject to the same regulatory sampling programs as those established in the Federal inspection program.
The Cooperative Interstate Shipment Program was established by the 2008 Farm Bill. In 2011, USDA finalized regulations to allow state employees to administer federal regulations and use federal marks of inspection at selected establishments. Prior to the establishment of this program, state-inspected businesses could only sell products within their state.
For more information and the full release, click here.
Early Weaning, DDGS Could Cut Costs for Cattle Producers
If the drought forces producers to feed a larger portion of distillers' dried grains with solubles (DDGS), cattle can maintain gains and improve meat quality if the animals are weaned early, a Purdue University scientist has shown.
The finding, reported at the American Society of Animal Science Midwest Meetings in Des Moines, Iowa, could allow some producers to save on rising feed costs in the face of this year's drought. DDGS are the leftovers from corn ethanol production. DDGS generally cost about 10% less than corn feed.
"You can essentially use a cheaper feed for a portion of the time and maintain high rates of gain, while improving the quality of the meat," said Jon Schoonmaker, an assistant professor of animal sciences. "It decreases fat thickness, but doesn't decrease marbling score."
Schoonmaker tested cattle weaned at 100 days instead of a more traditional 200 days. Those early weaned cattle were fed diets with no DDGS or one with DDGS content of 30% or 60% for 99 days, after which they were fed a standard diet with no DDGS.
At 30% of the diet, there was no difference in weight or meat quality. At 60%, fat thickness decreased, and marbling, the dispersion of fat within the meat, was unaffected. But carcass weight was down about 2.5%. Average daily gain and intake were similar among all three treatments.
Schoonmaker said he was looking at methods to increase DDGS in calf diets because available forage in pastures can limit cow productivity. As cows nurse, they and their calves need to eat more grass.
He said cattle producers may be reluctant to wean early because of the rising price of feed, but may have little choice as dry conditions deplete grasses. DDGS may offer a less expensive option.
"They're thinking corn prices will be extremely high this fall, but if they think of distillers' grains inclusion at 60% of the diet, they could save some money," Schoonmaker said.
Cattle fed DDGS also excrete more nitrogen, which can be an environmental concern. But Schoonmaker's findings showed that early weaned cattle may excrete less nitrogen when fed a high DDGS diet.
"Young calves utilize protein more efficiently, and they may be using more of that nitrogen for growth," Schoonmaker said.
Farmers Encouraged to Report Crop Losses, Low Yields
With the continued hot dry weather conditions throughout Ohio, the Farm Service Agency (FSA) encourages farmers to document and report crop losses or low crop yields to their local FSA office.
Producers with crops covered by crop insurance and the Noninsured Crop Disaster Assistance Program (NAP) must report crop losses resulting from a weather-related disaster event within 15 days of the disaster or when the loss first becomes apparent. Prevented planting must be reported no later than 15 days after the final planting date.
Crop losses are acres that were timely planted with the intent to harvest, but the crop failed because of a natural disaster. It is important that producers file accurate and timely loss reports to prevent the potential loss of FSA program benefits.
Low-yield acreage does need to be reported and producers are encouraged to keep good production records on acreage with a low crop yield to document crop losses. In addition, farmers are encouraged to report crop conditions to their county FSA offices so that the information may be used to support the potential request for a disaster declaration.
Farmers are reminded that they may revise FSA crop reports free of charge. A crop report revision, however, must be verified by physical evidence of the crop in a field spot check.
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