Declining cattle and beef supplies are a certainty in 2012. Cow slaughter in 2010 and 2011 was at it’s highest level in nearly 15 years. Higher calf prices and more precipitation in the South will slowly transition the industry back to expansion. The year will start with less feeder cattle and calves outside of feedlots on January 1, and the opportunity for heifer retention will further reduce available feedlot supplies. Fed cattle supplies will likely be even smaller in 2013 due to a reduced 2012 calf crop and increased heifer retention.

Beef demand improved in 2-11 due to robust export demand and an improved domestic economy. Beef exports were up 23 percent in 2011 compared to 2010. Exports will likely improve an additional11 percent in 2012 with improved beef access to Japan and increased wealth in emerging international markets. Retail beef prices reached new record highs in 2011. The USDA all-fresh retail beef price averaged $4.44 per pound last year,  and prices will need to increase this year to support higher cattle prices. During the U.S. recession, consumers traded down to lower priced beef cuts and ground beef. Traffic to fine-dining restaurants declined. A $19/cwt high in the Choice-Select price spread this fall showed demand is improving for higher quality beef, but the economy is still recovering.  Higher beef prices will test consumer beef demand in 2012.

Higher corn prices offset the many benefits of higher cattle prices in 2011. The available supply of corn in 2011 was record low. Historically low corn stocks during the first half of 2012 will be price supportive. However, large corn supplies in the second half 2012 are expected to drive prices significantly.

Shrinking cattle supplies and higher input prices will continue to influence industry structure in 2012. It is possible that feedlot and packing capacity will be reduced as margins shrink. Higher prices lead to increasing market volatility, managing price risk will be increasingly important to production agriculture.

Listen to the seminar below…

Prestage Farms in Goodwell, Oklahoma has joined the voices speaking out about the Humane Society of the United States’ video which claims that Prestage Farms and Seaboard Foods practice inhumane treatment of pigs. Veterinarian Ron Prestage says – we recognize our moral and ethical obligation to provide for the responsible treatment of our animals. Any willful mistreatment or neglect of animals is unacceptable. Prestage Farms takes animal well-being very seriously and has a history of implementing programs that help train our employees on proper animal care, handling and transporting procedures.

Officials at Prestage Farms have initiated an internal investigation into HSUS allegations at units located in Oklahoma. Prestage noted that if it is found that any employee engaged in activities contrary to the company’s animal well-being policies, disciplinary action will be taken, including termination of employment.
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“NCBA President Addresses On-farm Child Labor”

On Wednesday, National Cattlemen’s Beef Association President Bill Donald told those attending the 2012 Cattle Industry Convention and NCBA Trade Show – your voice – our voices – were heard by the Department of Labor. That was after DOL announced it intends to reconsider a portion of its proposed rule related to on-farm child labor. Donald commended American farmers and ranchers for making their voices heard on the proposed rule, which could have restricted, and in some instances totally prevented, America’s youth from working on farms and ranches.

Donald said – this issue goes to the very fiber of who we are in this country. It goes right to the fact that businesses are looking to fill positions with farm and ranch kids because they have a work ethic. They do their chores before they get on the school bus and do them again when they get home. So thanks to all of you, the Department of Labor listened finally.

Iowa Senator Chuck Grassley says – what would be best for everybody involved is to scrap the whole thing and allow farm families to operate in a manner consistent with the rural living that allows children to learn and grow as part of a rural community.
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“Subcommittee Focuses on Child Labor”

The House Small Business Subcommittee on Agriculture, Energy and Trade, held a hearing Thursday focused on the future of the family farm and the effect of proposed Department of Labor regulations on small business producers. Chris Chinn, a Missouri hog farmer testifying on behalf of the American Farm Bureau Federation, told the subcommittee – young people and the contributions they make as members of farm and ranch families are vital to American agriculture.

Chinn said proposed the regulations – could significantly limit the jobs their children, aged 14 and 10, could do on their own farm, and especially their grandparents’ farm. The regulations – strip away the ability of youth to work in agriculture, and the desire and goal of parents to pass on to our children the traditions and values we hold.

Responding to the DOL announcement it would re-propose the “parental exemption”, chin said – it is clear to all of us in the agricultural community that merely ‘tweaking’ the rule will not fix something that we believe is fundamentally flawed. Chinn said there was clearly a lack of appreciation and grasp in the proposed regulations of – what it is like to live in rural America.
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“Next NCBA President Speaks About Future”

NCBA President-Elect J.D. Alexander painted a picture of regulatory chaos in Washington, D.C. to nearly 7-thousand cattlemen and women attending this year’s Cattle Industry Convetion and NCBA Trade Show in Nashville, Tennessee. Alexander credited – grassroots advocacy as the primary reason the cattle industry was able to “weather the storm.” He noted, – because of the partnership between our state affiliates and your national organization, we managed to prevent ourselves from being the main course at the big government café.

Alexander said NCBA will continue pushing for practical legislation and a commonsense approach to regulations. He called the estate tax his top policy priority as the 2012 Alexander added, – I pledge to you that my top priority as your president is to do all I can to build beef demand and producer profitability. This can only be accomplished if we are allowed to operate without government intervention and, most importantly, if decisions are made to ensure future generations are able to take over our family businesses.

Alexander said – the death tax is the biggest deterrent to young people returning to the cattle business. What we need now are jobs, a stable economy and food for a growing global population. Leaving the next generation to choose between a life they love or the inability to pay the estate tax is not something we will tolerate.
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“Cattle Industry Foundation Presents Scholarships”

During the 2012 Cattle Industry Convention and NCBA Trade Show in Nashville, Tennessee, the Cattle Industry presented its National Retail Beef Backer awards to Broulim’s Fresh Foods, Haggen Food & Pharmacy/TOP Foods, Harris Teeter Inc., and Safeway. Funded by the Beef Checkoff Program, this program recognizes grocery establishments that are doing an outstanding job of marketing and merchandising beef in the meat case.

10 student scholarships were also presented by the National Cattlemen’s Foundation. Levi Berry of Happy, Texas received the Max Deets Scholarship Award. The award is presented each year to the chairman of NCBA’s Young Cattlemen’s Conference on the basis of outstanding leadership. And Malorie Bankhead, a student at California Polytechnic State University was selected to receive the top 15-hundred dollar student scholarship.

Also receiving scholarships were Megan Webb, Texas A&M University; Meghan Blythe, Kansas State University; Maci Lienemann, Norris High School in Nebraska; Trenton Blythe, White City High School in Kansas; Matthew McQuagge, Abraham Baldwin Agricultural College in Florida; Valene Lickley, Valley High School in Idaho; Katie Ochsner, Casper College in Wyoming; Reagan Kays, Kansas State University; and Cade Sallee, Fowler High School in Colorado.
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“International Agronomy Day Planned”

The University of Illinois is planning the first International Agronomy Day on August 27.  The U of I Department of Crop Sciences is encouraging producers from around the globe to participate in this unique forum bringing its nationally renowned faculty together to share the latest in agronomy, weed science, crop production, pest management, agricultural economics and more.

German Bollero, head of the Department of Crop Sciences, said he’s excited about the opportunity for more global engagement. He says – we all face similar challenges in producing food and feedstuffs so we want to provide information based on sound scientific research to help improve global food production.

International Agronomy Day will take place on Monday, August 27, from 7:00 a.m. to 1:00 p.m. central time at the U of I South Farms, allowing participants time to continue on to Iowa for the 2012 Farm Progress Show on August 28-30. Aaron Hager, International Agronomy Day chairman, says – we hope to create a new tradition for people who attend the Farm Progress Show and add value to their experience.
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“DuPont Investing in Feeding the Hungry”

No one company, country or non-profit organization can meet the challenge of feeding the world alone.  But according to Ellen Kullman, DuPont Chair and CEO, each of us can commit to doing our part and hold ourselves accountable to make a meaningful contribution to this global challenge. Kullman says – establishing specific, measurable goals for what we can do to address that challenge is key to turning talk into results.

Therefore, responding to the challenge of global hunger, DuPont has announced goals for its contribution to help improve food security around the world. These goals address innovation, education and rural community development and will be tracked along with DuPont sustainability goals.

By the end of 2020, DuPont will invest 10-billion dollars in research and development and introduce 4-thousand new products centered on producing more food; enhancing nutrition, food and agriculture sustainability and safety; boosting food availability and shelf life; and reducing waste. DuPont also wants to engage 2-million young people around the world in educational opportunities, while improving the livelihoods of at least 3 million farmers and their rural communities.
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“Companies Offering Price Breaks”

This is the time of year when growers are in a position to take advantage of offers from their suppliers.  Offers that save producers dollars while guaranteeing the participating supplier a customer base. As an example, BASF Crop Protection is offering to help producers manage risk, increase efficiency and maximize yield.

The offers expiring March 15 include partial purchase price rebates for certain BASF High Yield Package product purchases, interest-free financing on qualifying purchases, and as much as 20 percent savings on select products. An additional offer allows qualifying growers to reduce their crop insurance premiums.

For more information and these and other incentives, contact you supplier of choice for information on how they work.
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“Fresh Impact Forum to Begin”

The United Fresh Produce Association will launch a month-long member outreach tour that will include more than 10 Town Halls; dozens of visits to member farms, packing facilities, wholesalers and retailers; a Leadership Program trip to explore the Chilean produce industry; and a Fresh Impact Forum at Fruit Logistica in Berlin, Germany.

Tom Stenzel, president and CEO of United Fresh, says – last summer’s inaugural Fresh Impact Tour was an incredible experience. The tour allowed members to engage in personal discussions about issues important to their businesses, and spotlighted how United Fresh can help leverage the passion of individual members to make a difference for the greater industry.

The Fresh Impact Tour will begin officially with the United Fresh Impact Forum in Berlin on February 8, with the final stop of the tour March 9 in Dallas, Texas, the site of United Fresh’s 2012 Annual Convention.
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They examine the contentious issues that divide this nation along partisan lines, seeking common ground that can advance the stalemate for the benefit of us all. Moving away from the archaic crossfire format, Beckel and Thomas find shared beliefs that both liberals and conservatives can agree upon.

More like a conversation between friends than debate between enemies, they inspire audiences to find the common ground in their own beliefs, and put aside politics as usual. Their book, Common Ground: How to Stop the Partisan War that is Destroying America, expands on their work in USA Today, and is a discussion on how liberals and conservatives can work together to put America back on track.

The Associated Press reported Wednesday that unnamed investigators have located almost all of the 1.2-billion dollars first reported missing when securities company MF Global went under last year. The money has been tracked to other customer accounts and banks. MF Global, headed by former New Jersey Governor Jon Corzine, failed in October, 2011, after a disastrous bet on European debt.

The chief risk officer when MF Global Holdings Ltd. collapsed is expected to tell a congressional committee that he sounded concerns about the firm’s European sovereign-debt bet in July 2011. Moody’s cut the brokerage’s rating to just above ‘junk’ status on October 24, 2011. That downgrade helped push MF Global into bankruptcy.

Scott O’Malia, a Republican commissioner at the Commodity Futures Trading Commission, says the agency has mistakenly concentrated too much on implementing new swaps rules to comply with the 2010 Dodd-Frank law, while short-changing efforts to restore public confidence and protect the futures marketplace.
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“DOL to Revisit Farm Labor Rule”

The U.S. Department of Labor is going back to the drawing board on its controversial farm labor rule that would have prevented many young people from working on family farms.  The department is stopping its plans to implement the new rules and has agreed to open a new dialogue with family farmers on the issue.

Senate Ag Committee chairwoman, Debbie Stabenow, agrees – there should be safeguards to protect children from dangerous situations, but there needs to be an understanding that many children in rural communities learn about safety by helping their family on the farm.

According to the DOL, a new “parental exemption” rule is expected to be proposed this summer.  The exemption allows children of any age who are employed by their parent, or a person standing in the place of a parent, to perform any job on a farm owned or operated by their parent or such person standing in the place of a parent.
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“Agriculture Appreciative of DOL Move”

National Farmers Union President Roger Johnson says – farming is a lifestyle that is passed down from generation to generation, so it is critical that farmers are able to teach their children how to perform the work safely and responsibly. Johnson believes – current rules and regulations allow adequate flexibility for parents to teach their children about agriculture while still ensuring that young workers are safe.

American Farm Bureau Federation president Bob Stallman says – the decision by the Labor Department to re-propose the ‘parental exemption’ in the child labor rule is a positive step, but much more work is needed. Farm Bureau says any final regulation must make sense, not infringe on the traditional rights of family farms and not unnecessarily restrict the ability of young people to work in agriculture. Stallman says – laws and regulations need to be sensible and within reason.
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“Stabenow Sets Farm Bill Hearings”

Senator Debbie Stabenow, Chairwoman of the Senate Committee on Agriculture, Nutrition and Forestry, has schedule hearings to continue examining Farm Bill principles and evaluating policy solutions to develop a 2012 Farm Bill. All hearing will be held in Washington, D.C.

The schedule is as follows:

Wednesday, February 15; Title: Energy and Economic Growth for Rural America
Wednesday, February 29: Title: Strengthening Conservation through the 2012 Farm Bill
Wednesday, March 14: Title: Healthy Food Initiatives, Local Production and Nutrition
Wednesday, March 21: Title: Risk Management and Commodities in the 2012 Farm Bill
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“CBO Reports on Expected Federal Spending”

In an annual report, the Congressional Budget Office says that mandatory spending for agricultural supports totaled 15-billion dollars in 2011. That spending will dip in 2012, to about 13-billion, largely because of changes in the timing of mandated payments for crop insurance and commodity programs. Starting in 2013, spending for the crop insurance program is expected to rise as a result of projected increases in crop prices and the value of insured crops. The higher spending for crop insurance will be offset by the scheduled termination of some other agricultural support programs.

As for the general economy, CBO projected the economy would remain sluggish, with high unemployment, and the federal deficit would exceed one-trillion dollars in 2012 for the fourth consecutive year. That’s about 200-billion less than in 2011. CBO also expects the nation’s deficit will fall sharply in the next three years as a result of tax increases and spending cuts. Unemployment is expected to rise in the final quarter of 2013.

Senate Budget Committee Chairman Kent Conrad of North Dakota says – CBO’s report demonstrates we must do much more to put the nation’s long-term budget outlook on a sustainable path. The deficit reduction included in last summer’s Budget Control Act cannot be the end of the story. Conrad believes – we need to achieve about 4-trillion dollars in deficit reduction over ten years, including what has already been enacted.
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“HSUS Video Put Into Question”

The Humane Society of the United States has again released video showing what the organization calls – inhumane treatment of pigs. The video was shot at Seaboard Foods and Prestage Farms at Goodwell, Oklahoma. The HSUS says it has filed legal complaints with the U.S. Securities and Exchange Commission and Federal Trade Commission alleging false and misleading statements about animal care by one of the producers.

Seaboard Farms has released a statement in response to the claims of abuse by HSUS  saying in part – we’ve reviewed documented employee actions alleging abuse and listened to the recent discussions questioning U.S. industry practices of sow gestation, swine tail cutting and swine castration, and strongly dispute any allegations of abuse.

The company added that – housing for gestating sows, must be based on sound science while also seeking a balance with societal concerns. The statement continues – Seaboard Foods’ integrated system uses both stalls and group pens to house gestating sows. Animal welfare experts and professional groups have found no one method for housing gestating sows that is clearly better than the other when managed properly.
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“New Training For Meat-Counter Employees”

A new web-based retail training program has been established to help boost knowledge about today’s beef and how it’s produced. The National Cattlemen’s Beef Association and the Beef Checkoff Program partnered with Merck Animal Health to launch Better Beef Sales.

These organizations recognized the need for more training of meat-counter employees after Merck Animal Health conducted a series of consumer panels. The panels found that consumers identify the staff behind the counter as experts. Carrie Thomas, account manager for food chain affairs for Merck Animal Health, said the need for training was quickly confirmed during retailer discussions.

The Better Beef Sales education program consists of a series of six web-based training modules for the retail meat counter employees on the front lines of consumer marketing. Topics covered in the videos include: types and quality of beef offered today; sustainability of today’s beef; animal welfare practices; beef-improvement technologies; and ways retailers can add value to the meat case. Learn more at www.beefretail.org.
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“CRP Signup to Begin”

Acting Under Secretary for Farm and Foreign Agricultural Services Michael Scuse says USDA will conduct a four-week Conservation Reserve Program general signup, beginning on March 12 and ending on April 6. CRP is a voluntary program available to agricultural producers to help them use environmentally sensitive land for conservation benefits.

Producers enrolled in CRP plant long-term, resource-conserving covers to improve the quality of water, control soil erosion and develop wildlife habitat. In return, USDA provides participants with rental payments and cost-share assistance. Contract duration is between 10 and 15 years. Producers with expiring contracts and producers with environmentally sensitive land are encouraged to evaluate their options under CRP.

CRP has a 25-year legacy. Currently, about 30 million acres are enrolled in CRP; and contracts on an estimated 6.5 million acres will expire on September 30, 2012.
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“NACD Awards Conservation Leaders”

During its annual meeting in Las Vegas, the National Association of Conservation Districts honored leaders in conservation during a special awards banquet, moderated by National Association of Farm Broadcasting President Tom Steever.

Lee McDaniel, NACD Executive Board Member from Darlington, Maryland, was honored with the prestigious President’s Award.

John Redding of Monroe, Georgia.was presented with NACD’s Distinguished Service Award.

NACD’s Friend of Conservation Award was presented to Ray Tschillard of Greeley, Colorado.

The NACD/NRCS Olin Sims Conservation Leadership Award was presented to Kimberly LaFleur of Plympton, Massachusetts.

The Association of Equipment Manufacturers and NACD presented the Partnership Award—for excellence in conservation equipment and technology use—to Outagamie County Land Conservation Department of Appleton, Wisconsin.
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“Organizations Meet to Find Middle Ground”

Leaders of major farm and commodity groups have met in Washington, D.C. to learn more about the Congressional timeline for writing a new farm bill.  The meeting was expected to draw leaders from the American Farm Bureau Federation, National Farmers Union and commodity organizations representing growers of corn, cotton, rice, soybean, wheat and minor oilseeds.  USA Rice Federation lobbyist Reece Langley organized the get-together.

The expressed purpose of the meeting was for each group to gain a better understanding of where their colleagues are coming from. Langley hoped the groups would find a willingness to try to contain and work out any of differences among the groups and not air those differences in public.

This was the first time these groups have met formally since the failed attempt to pass a farm bill through the Super Committee process, an exercise that created deep divisions among commodity groups.
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“Nation’s Cattle Industry Meeting in Nashville”

The Cattle Industry Convention and National Cattlemen’s Beef Association’s Trade Show is in full swing in Nashville, Tennessee. This is the largest annual gathering of the beef industry. NCBA President Bill Donald says – we’re here to highlight some of the successes of the past year while also setting goals and priorities for what lies ahead. Donald said cattlemen and women have the opportunity to hear directly from the experts about how to sustain and improve their operations.

An important segment of the meeting is a series of committee meeting, part of NCBA’s grassroots policy process. Donald says – it is important to let the voice of our producers be heard. The grassroots policy process is the backbone and the strength of NCBA. Cattlemen come together to discuss policy priorities and then chart the course forward for NCBA.
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“Rural Refinance Pilot Program Announced”

The Department of Agriculture is launching a pilot program to help rural borrowers refinance their mortgages to reduce their monthly payments. The Single Family Housing Guaranteed Rural Refinance Pilot Program will operate in 19 states for homeowners who have loans that were made or guaranteed by USDA Rural Development. These states are among those hardest hit by the downturn in the housing market.

In making the announcement, Ag Secretary Tom Vilsack said – this pilot program will help homeowners take advantage of historically low interest rates and by working closely with lenders, we are helping rural homeowners protect one of the most important investments they will ever make.

USDA Rural Development estimates 235-thousand homeowners will be eligible to refinance their loans, which is expected to save them considerable time and money. The two-year pilot is open to homeowners in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.
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“Scientists Identify Important Gene in Corn”

USDA scientists and their university colleagues have found a specific gene in corn which seems to confer resistance to three important leaf diseases. This finding could potentially help plant breeders build disease-resistance traits into future corn plants.

Three diseases-southern corn leaf blight, northern leaf blight, and gray leaf spot-all cause lesions on corn leaves worldwide. In the U.S. Midwest Corn Belt, northern leaf blight and gray leaf spot are significant problems. It is noted that no corn variety has complete resistance to any of these diseases, but varieties differ in the severity of symptoms they exhibit.

This gene, a GST (glutathione S-transferase), is part of a family of genes known for their roles in regulating oxidative stress and in detoxification. Both of these functions are consistent with a role in disease resistance.
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“CHS Makes Major Contribution to Raise Awareness”

The largest financial contribution ever made to a special campaign focused on raising awareness for the need for more agricultural teachers in U.S. high schools has been announced. CHS, the nation’s leading farmer-owned cooperative, has allocated 104,300-dollars for the National Teach Ag Campaign, an initiative to bring attention to the need for more agricultural educators in the United States. The campaign provides resources for those who wish to help promote the profession of agricultural education and for those interested in pursuing a career in agricultural education.

Led by the National Association of Agricultural Educators, the campaign is sponsored by CHS Foundation, Landmark and Delmar Cengage Learning as a special project of the National FFA Foundation. Foundation executive director Rob Cooper says – we are extremely grateful that CHS chose to support FFA programs and initiatives that help agriculture teachers.

William Nelson, president of CHS Foundation and vice president of CHS Corporate Citizenship, believes – developing the next generation of agriculturists and supporting the important work of agricultural educators is very important to the farmers, ranchers and local cooperatives who own CHS.
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Marcus Luttrell the featured keynote speaker, is author of the 2007 #1 New York Times best-selling book, Lone Survivor, tells the harrowing story of four Navy SEALs who journeyed into the mountainous border of Afghanistan and Pakistan on Operation Redwing. An unparalleled motivational story of survival, the book is also a moving tribute to the friends and teammates who did not make it off the mountain. A powerful testament to the courage, integrity, patriotism and community that forged these American heroes, Lone Survivor is an incredible account of teamwork, fortitude and modern warfare.

In this emotionally raw account, Luttrell honors the memories of all those who died, sharing the incredible bravery, courage and honor of these extraordinary warriors. He holds their lives up as examples of this guiding philosophy of the SEALs: “I will never quit. I persevere and thrive on adversity. My nation expects me to be physically harder and mentally stronger than my enemies. If knocked down, I will get back up, every time. I will draw on every remaining ounce of strength to protect my teammates and accomplish our mission. I am never out of the fight.”

Luttrell takes the audience from the rigors of SEAL training to the battle on the mountain, into his family’s experience of community support and generosity, and back to his own incredible story of survival and grace. In powerful narrative, he weaves a rich account of courage and sacrifice, honor and patriotism, community and destiny that audiences will find both wrenching and life-affirming.