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Angus Journal

The Angus Journal Daily, formerly the Angus e-List, is a compilation of Angus industry news; information about hot topics in the beef industry; and updates about upcoming shows, sales and events. Click here to subscribe.

News Update

February 22, 2018

Beef Checkoff Scorecard

The majority of beef producers continue to be supportive of the Beef Checkoff Program, according to findings of a recent survey. Results of survey data collected from cattle owners between Dec. 20, 2017, and Jan. 12, 2018, revealed 74% of those surveyed continue to approve of the National Beef Checkoff Program. This is a 5% increase from survey data collected a year ago.

Findings were shared during a Checkoff Update session convened in conjunction with the 2018 Cattle Industry Convention & NCBA Trade Show hosted in Phoenix, Ariz., Jan. 31-Feb. 2.

The survey also found that producers are generally more optimistic about the cattle industry than they were a year ago. Plus, the survey indicated favorable support from producers regarding the value they gain from the checkoff. Findings included:

Continue reading this Angus summary online.

Cattle on Feed Estimates

USDA will issue on Friday, Feb. 23, the results of its monthly survey of feedlots with +1,000 head capacity. A survey of analysts conducted by Urner Barry in recent days indicates that for the most part analysts agree that placements were about steady to maybe a bit higher than a year ago while marketings increased significantly in January. There was one extra day for marketing cattle in January, which likely bolstered the number of cattle sold. On average analysts polled indicated they expect January marketings to be up 6.1% compared to a year ago.

As usual the focus will be on January placements and the supply of cattle and the weight of the cattle placed on feed. Of the 11 analysts that were polled by Urner Barry, five of them expect January placements to be lower than a year ago. There are some regional reports showing a notable increase in the number of cattle placed on feed, and we suspect that may have influenced some of the analyst calculations.

Dry conditions in the Southern Plains have been an issue for the last four months, and the situation there has become worse recently.

Read the full report online at

Tax Reform and You

Enactment of the first major tax reform package in 30 years includes a number of changes that will affect farmers and ranchers. Estate and succession planner Michael McCormack, with Lincoln Agri Business Services, talked about the good, the bad and the ugly implications of new tax laws in a Learning Lounge presentation conducted during the 2018 Cattle Industry Convention Jan. 31-Feb. 2 in Phoenix, Ariz.

McCormack said a significant change, and a good one, is the new permanent 21% corporate tax rate designed to stimulate corporate investment and creation of jobs. However, most farm and ranch business entities are not incorporated. For those, seven expanded tax brackets apply, representing moderately lower tax rates.

McCormack explained the increase in standard deductions to $12,000 for individuals and to $24,000 for married couples filing jointly. Another good thing is that “pass-through” businesses, including sole proprietors and partnerships, will be able to deduct 20% of their business income, which includes payments from cooperatives, commodity wages and farmland rental income.

Still more good is found in the improved ability to make capital investments.

Learn more in the Angus summary online.

Shortage of Feed-grade Vitamins

What does a shortage of a substance used in perfumery have to do with the price of livestock feed supplements? Well, it’s because the lemony-scented citral used in aroma and fragrance products also is important to the manufacture of feed-grade vitamins A and E.

More cattle producers are learning how important citral is when they seek answers to why some feed supplement prices are climbing. It’s the kind of question asked of Purina livestock nutritionist Christina Hayes during the 2018 Cattle Industry Convention and NCBA Trade Show Jan. 31-Feb. 2 in Phoenix, Ariz.

According to Hayes, there just isn’t enough citral to go around, and there probably won’t be for the next few months. An October fire in a manufacturing plant in Germany, plus environmental regulation issues for a plant in China have curbed production and created a worldwide shortage of citral. The shortage affects the manufacture of vitamin A used in a variety of livestock feeds.

“It could be April before the German plant restarts and perhaps June or July before supplies to the U.S. are resumed,” said Hayes.

Keep reading this Angus summary online.



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