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News Update

September 13, 2012

BPI Files Suit Against ABC for Disinformation Campaign

BPI Technology Inc., Beef Products Inc., and Freezing Machines Inc. (collectively BPI) filed a suit against the American Broadcast Companies Inc. (ABC), ABC News Inc., three ABC News reporters, and others for knowingly and intentionally publishing false and disparaging statements regarding BPI and its product, lean, finely textured beef (LFTB). BPI alleges that ABC and others launched a concerted disinformation campaign against the companies, which had a significant adverse affect on BPI's reputation, as well as a significant negative financial impact on the companies.

"For more than 30 years, our family has built and operated companies that are committed to providing consumers with wholesome, safe and nutritious lean beef. We've created thousands of good jobs for Americans and our lean, finely textured beef has made the leaner ground beef that consumers desire more affordable," said Eldon Roth, founder and CEO of BPI. "The blatantly false and disparaging statements made about our lean beef have done more than hurt my family and our companies; they have jeopardized the future of our employees and their families."

In their complaint, filed today, Sept., 13, 2012, in Circuit Court in Union County, S.D., BPI alleges that ABC and the individuals named in the suit knowingly made false, defamatory and disparaging statements regarding BPI and LFTB during a disinformation campaign this spring. These statements were made even after BPI and others sent ABC factual information about LFTB, including conclusions from USDA, FDA, food safety organizations and numerous beef industry experts that LFTB is a safe, nutritious lean beef. As a result of the disinformation campaign, BPI sales declined from approximately five million pounds (lb.) of LFTB per week to less than two million lb. per week, three BPI facilities closed and more than 700 employees lost their jobs.

"Through nearly 200 false, misleading and defamatory statements, repeated continuously during a month-long disinformation campaign, ABC and other individuals knowingly misled consumers into believing that LFTB was not beef and not safe for public consumption, which is completely false," said Dan Webb, chairman, Winston & Strawn LLP. "BPI has filed suit because their business has been severely damaged by this conduct. As a result, we will be asking a jury to award BPI more than $1 billion in compensatory and statutory damages, plus punitive damages." BPI seeks to recover damages for defamation, product and food disparagement, and tortious interference with business relationships.

"Farm Bill Now!" Rally Draws Hundreds of Supporters

More than 200 National Farmers Union (NFU) members joined hundreds of other farmers, ranchers and agriculture industry supporters in the shadow of the Capitol today for the "Farm Bill Now!" rally to send a clear message to Congress that they want a farm bill now. NFU President Roger Johnson cohosted the rally with American Farm Bureau Federation President Bob Stallman. They were joined on stage by many members of Congress and leaders from a broad spectrum of supporting organizations.

"We are all united on one thing: We need a farm bill and we need a farm bill now," said Johnson.

Sen. Debbie Stabenow, D-Mich., chairwoman of the Agriculture, Nutrition and Forestry Committee; Sen. Jerry Moran, R-Kan.; Rep. Collin Peterson, D-Minn., ranking member of the Committee on Agriculture; and Rep. Kristi Noem, R-S.D., addressed the crowd.

Several members of Congress stood with their colleagues on stage in a sign of support.

"We heard from several members of Congress who have been on the Hill a long time, and they said there's plenty of time to pass a farm bill," said Johnson. "There's no excuse for Congress not doing their job. This is detrimental to all of America. The farm bill is a food, energy and jobs bill."

For the full release, click here.


R-CALF USA's Convention: Catalyst for Change

At the recent R-CALF USA Convention, nearly 200 attendees met to discuss the future of the independent U.S. cattle industry and rural America, and what can be done to change the current direction of public policy. Each of R-CALF USA's committees addressed the general session and then met in smaller development sessions to encourage the generation of solutions to specific challenges the U.S. cattle industry is facing. The meetings were focused around the theme, "Redirecting Our Industry."

In addition to updates from the committees, R-CALF USA also welcomed several guest speakers. Ken Ivory from Utah Freedom Foundation addressed the audience during the Private Property Rights Committee report. During the Marketing Committee report, J. Dudley Butler, former Grain Inspectors, Packers and Stockyards Administration (GIPSA) Administrator, shared his work and struggle for the GIPSA rule and discussed checkoff reform and country-of-origin labeling (COOL).

COOL was an important issue during the convention. Joel Joseph, chairman of Made in the USA Foundation, and Julie Reiser, president/co-founder Made in the USA Certified, partnered with Mike Schultz, R-CALF USA Region VI director and COOL Committee chair, to discuss the recent World Trade Organization (WTO) ruling that attempts to strike down U.S. COOL. This partnership and discussion led to the solution of filing a joint lawsuit to protect U.S. sovereignty. Immediately following the convention, R-CALF USA joined with Made in the USA Foundation and filed a lawsuit in federal district court to preserve COOL and protect U.S. sovereignty.

For more information and the full release, click here.


Fight Over a New Farm Bill Heating Up

Senate Democrats made a fresh push for House Republicans to take up and pass a long-term farm bill that includes relief for farmers suffering from one of the worst droughts in decades.

But it appeared House Republican leaders would be unwilling to consider anything more than an extension of the current law, which expires at the end of September.

"The House leadership, for whatever reason, has decided that they're not going to bring this on the floor," Sen. Debbie Stabenow, D-Michigan, who chairs the Agriculture Committee, complained to reporters on a conference call.

House GOP leaders haven't taken up the bill because conservatives in their caucus oppose various aspects of the measure, including the amount spent on federal nutrition programs such as food stamps, which make up the bulk of the bill's price tag.

Conservatives want to wait until after the election — in which they hope to win control of the Senate and the White House and be in a better position to tailor the bill to their liking.
Top Senate Republican leaders backed the idea of a short-term extension if the Senate's five-year bill can't get through the House.

Meanwhile, a coalition of major farm organizations plans to rally Wednesday on Capitol Hill to urge Congress to reject a short-term bill and press forward with negotiations on a five-year bill.


USDA Forecasts Lower Corn and Soybean Production

The USDA monthly crop report lowered the 2012 production forecasts for corn and soybeans. Economists with the American Farm Bureau Federation (AFBF) said the report was "bearish" for corn prices in one respect, because the estimate for ending stocks was not reduced as much as expected by some market analysts.

"As anticipated, lower projected production for both corn and soybeans was reported this month," said AFBF economist Todd Davis. "It will be some time before the long-term effects of the 2012 drought are fully played out. But it appears likely that continued strong worldwide demand for corn and soybeans will lead to higher projected prices."

USDA forecast corn production at 10.7 billion bushels (bu.). The average yield for corn was forecast at 122.8 bu. per acre this year, down slightly from the August prediction. Once harvest is complete, if the average corn yield comes in at 122.8 bu. per acre, it would be the smallest average yield since 2003.

Soybean production is forecast at 2.63 billion bu. The average yield for soybeans was forecast at 35.3 bu. per acre. Once harvest is complete, if the average soybean yield comes in at 35.3 bu. per acre, it would be the smallest average yield since 1996.

Corn ending stocks for the marketing year were pegged slightly higher compared to USDA's August estimate, at 733 million bu., which represents 24 days of supply.

For the full release, click here.


Over 6,200 Acres of Hay Harvested Under Emergency Program

Wisconsin farmers were able to harvest hay from 6,265 acres of state land under emergency haying provisions the Department of Natural Resources (DNR) put in place earlier this summer as part of its drought relief initiative. The agency issued 286 emergency haying permits and an additional five emergency grazing permits for 63 acres for grazing.

The special harvest ended Aug. 31. This allows time for adequate regrowth of the grass to provide habitat for wildlife and hunting cover to sportsmen and women in the fall.

"Overall, I'd say it was a super-human effort on the part of the many field people that dropped what they were doing to answer phone calls, meet with farmers and issue permits," said Alan Crossley, DNR public lands wildlife management specialist. "By any measure I think we should deem the effort a success."

Division of Lands Administrator Kurt Thiede says farmers really appreciated the hay just when they needed it most.

"Win-wins can sometimes be hard to come by. This was clearly one of them," he said.
The last time the DNR issued such permits was during the drought of 1988.

Feeding Corn Silage to Growing and Finishing Cattle

This year the drought has put a lot of stress on cattle feeders. Because of low yields, many cornfields were harvested as silage for cattle feed. The current question is, how can silage be used best to keep costs down?

"First and foremost, drought-stressed corn silage can be notorious for high nitrate concentrations and overfeeding nitrates can cause nitrate poisoning, or brown-blood disease, in cattle," said University of Illinois feedlot nutritionist Tara Felix. "Cattle essentially suffocate because there is not enough oxygen being carried in the blood. Therefore, before feeding silages put up during a drought, always get a nitrate test."

There are several testing centers where samples can be sent. For a list, click here.

After testing safe for nitrates, silage can be an excellent source of energy for cattle.
"Cattle can be fed by giving them free access to silage with supplemental protein and minerals," Felix said. Her recommendations are that calves that are 600 to 700 pounds (lb.) should eat enough silage to gain about 3 lb. per day if they are fed by given free access. When cattle reach 800 lb. more of the energy in silage will be used for their increased maintenance needs so gains will likely drop to 2 or 2.5 lb. when fed by free choice. If cattle are limit-fed silage at 80% or 90% of free-choice, gains will drop off between 0.25 to 0.5 lb. Felix obtained this information from a 1994 study by Murphy and Loerch.

For more information and the full release, click here.

 

 
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