November 5, 2007

 

 

 

Wanted: Ralgro Wheels for “Wheels for Bucks” Program - Please make an effort to collect empty Ralgro wheels from your friends, neighbors, and business associates.  For every 10 empty Ralgro wheels, we will receive one wheel of Ralgro to be auctioned at the “Taste of Beef” event during the MCA Convention.  This is a wonderful fundraising opportunity and it goes to benefit the CattleWomen's Association, Junior Cattlemen’s Association and Cattlemen’s Foundation.
Wheels and strips can be brought to the MCA office prior to convention or directly to the convention. The Wheels for Bucks program is sponsored by Schering-Plough. 

Star Junior Awards – Entries are being accepted until December 18th for the junior and senior Star Junior Awards. Winner in the senior category will receive $500 and the junior receives $100 with a plaque for each. Contact LeAnne (601-613-9611) for entry details.

VOTE TOMORROW!!

 

Scholarship Applications Online – Forms for convention scholarships are now available online at www.mscattlemen.org . At this year's convention, $48,000 in college scholarships was presented to the children and grandchildren of MCA members.  The Wax Company, Mississippi CattleWomen's Association, and Mississippi Cattlemen’s Foundation each sponsor scholarships. 

State Fair Pics - Pictures from the Mississippi State Fair are posted on the MCA website’s Photo Gallery at www.mscattlemen.org

$1000 Scholarship – The winner of this year’s Mississippi Beef Ambassador Contest will receive a $500 cash award, expense-paid trip to the nation contest in Oklahoma City, and a $1000 college scholarship.  Second place will receive a $500 scholarship.  The competition will be held on February 3rd.  For details and an entry form, contact the MCA office.

Cattle Market Notes, Friday, November 2, 2007, Dr. John Anderson, Mississippi State University – After a very quiet week, cash business developed last Friday at $0.50 to $1 lower than the week before.  Last week’s 5-Area average live steer price worked out to $92.41, down from $93.02 the prior week.
Negotiated transactions were pretty light at just under 148,000 head.  This week was also pretty quiet on the cash front.  Ideas of tightening showlists continue to feed hopes of higher cash prices, but the inability of wholesale beef prices to sustain any kind of momentum along with intense pressure from outside markets (higher grain prices, record high oil prices, contract lows on hog futures, sharp sell offs in the stock market, etc.) are creating a pretty tough market environment.  Dow-Jones reported a few cash sales at $90 on Friday but noted many sellers dug in at asking prices of $95 or better.
Calf prices looked to be steady or maybe even a bit better at the beginning of the week, but with corn prices steadily moving up and with the fed cattle market stubbornly quiet, the tone toward the end of the week looked a good deal weaker.  At Oklahoma City, feeder steer and heifer prices were $1 to $2 lower.  Stocker steer prices were $1 to $4 higher; stocker heifer prices were steady to $2 higher.  At Arkansas auctions this week, steer prices were weak to $3 lower, and heifer prices were $3 to $5 lower. 
At Mississippi auctions this week, steer prices were steady, and heifer prices were $5 higher.  Steer prices at Mississippi auctions this week were reported as follows: 200-300 pounds, $130-$142; 300-400 pounds, $120-$130; 400-500 pounds, $110-$120; 500-550 pounds, $100-$110; 550-600 pounds, $95-$100; 600-700 pounds, $85-$95; 700-800 pounds, not reported.
Slaughter cow prices were steady this week.  For the week: breakers, $37-$40; boners, $40-$45; lean (850-1,200 pounds), $35-$40.
Live Cattle futures were kind of up-and-down this week.  Live Cattle futures closing prices on Friday (with change from last Friday’s close in parentheses) were as follows: December $94.72 (-0.40); February $97.60 (+0.28); April $97.62 (+0.32); June $93.80 (-0.20); August $94.17 (+0.30).
Feeder cattle futures started the week higher, but fell progressively after about Tuesday.  Feeder contracts were under relentless pressure from rising grain futures in the latter part of the week.  Feeder Cattle futures closing prices on Friday (with change from last Friday’s close in parentheses): November $108.35 (-0.70); January $107.92 (-0.28);March $108.42 (-0.35); April $110.50 (-0.40).
After dropping early in the week, corn futures put together solid gains to close out the week.  Crude oil futures in the neighborhood of $95/barrel (with serious talk of going to $100) have been very supportive of higher corn (and soybean) prices.  Adverse harvest time weather in parts of the Corn Belt has led to expectations of a downward revision in the corn production estimate when USDA releases its updated estimates next week.  December Corn closed on Friday at $3.77, up 5 cents from last week’s close. Soybean futures also moved higher this week.  November beans closed on Friday at $10.01, up 6 cents from last Friday’s close.  Dr. Anderson’s complete report can be accessed from www.mscattlemen.org

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Bush Nominates Edward Schafer to be Ag Secretary - President Bush announced October 31st the nomination of Edward Schafer, former North Dakota Governor, to be Secretary of Agriculture.  If confirmed, Schafer would replace former Ag Secretary Mike Johanns who resigned on September 20 to pursue a Senate bid.  In the interim, Deputy Secretary Chuck Conner has been serving as Acting Secretary.
Schafer served as governor of North Dakota from 1992 to 2000.  During that time, he gained experience dealing with issues such as disaster assistance, international trade and renewable energy policy – all issues at the forefront of today’s political environment.

Export Verification Change – Beginning January 1, 2008, all cattle destined for USDA beef export verification programs must be identified before leaving the farm of origin. For information on the Southeastern Livestock Network’s PVP program, contact the MCA office.

Cargill Firm Recalls Ground Beef - A Cargill Meat Solutions Corp. firm in Wyalusing, Pa., is voluntarily recalling nearly 1.1 million pounds of ground beef products because they may be contaminated with E. coli O157:H7, USDA's Food Safety and Inspection Service announced last Saturday.
The recall involves nearly 60 varieties of ground beef product, including ground beef and ground beef patties. Each package or label bears the establishment number "Est. 9400" inside the USDA mark of inspection.
In addition to the above listed products, there are various weights and varieties of ground beef, ground chuck, and ground sirloin product that are distributed for further processing and repackaging and will not bear the recalling firm's establishment number on the package.
 "No illnesses have been associated with this product," John Keating, president of Cargill Regional Beef, said in a press release. "We are working closely with the USDA to remove the product from the marketplace.”  from meatingplace.com

Cancer Report Takes Aim at Obesity, Red Meat - A long-awaited report that analyzed more than 7,000 scientific studies on cancer risks was released last week in Washington. The report, the work of worldwide teams of scientists, found that excess body fat increases the risk for several cancers. The report, from the American Institute for Cancer Research and the World Cancer Research Fund, both organizations with strong scientific credentials, offered recommendations for cancer prevention including, in order: adding at least 30 minutes of physical activity every day, limiting energy-dense foods and avoiding sugary drinks, eating foods of plant origin, limiting the intake of red meat and processed meat to no more than 18 ounces a week, limiting alcohol and salt consumption, and limiting the consumption of salt and moldy cereal grains or legumes.
Checkoff dollars have supported review of and response to the report. During the months leading up to release of the report, checkoff dollars were invested to conduct extensive research on the subject of red meat and cancer to let producers know what was out there. Upon release of the report results, the checkoff had representatives and third-party experts on the ground in Washington, D.C. to answer key questions of regional, national and international consumer and ag media, and to report results and research findings. For more information about the report and response, go to http://www.beef.org/cancer.aspx.

Producer -specific Label - Starting Jan. 1, 2008, Russia will only import meat from Brazil with special labels that name the producer and indicate the product complies with Russian veterinary and health requirements.
Russia is tightening control over imports of Brazilian meat out of concerns about foot and mouth and other diseases. Russian veterinarians who inspected the veterinary oversight system in Brazil in May found violations in the quality control system for meat exported to Russia, and have cited 19 companies for these violations.
Similarly, Russia banned a number of U.S. poultry and pork plants, effective Nov. 1, after facility audits this summer.
According to the Russia's Agrarian Market Institute (IKAR), Russia imported 254,000 metric tons of beef, 229,000 metric tons of pork and 169,000 metric tons of poultry meat from Brazil in 2006. This amounted to respectively 40 percent, over 37 percent and 15 percent of total imports of these commodities.
from meatingplace.com

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Cattlemen Want Packer Ban Stripped From Senate Farm Bill - As the Senate prepares to consider their version of the 2007 Farm Bill next week, of greatest concern to cattlemen is legislative language which would place a ban on packer ownership.  This language would prohibit packers from owning, feeding or controlling cattle more than 14 days before slaughter.  NCBA opposes this language due to the larger unintended consequences it could have our on consumer-driven, producer-led marketing alliances. 
NCBA has had member policy for nearly ten years to oppose legislation that would alter the competitive structure of the cattle industry or limit cattlemen’s marketing options.  In communications to Senate offices last week, hundreds of NCBA cattle producer-members voiced their strong opposition to the amendment.  “If I want to sell my cattle as feeder calves, I want more buyers - not less - competing on the purchase of my cattle.  In order to get paid more for a better product, we have found that working directly with a packer and sharing the risk on the performance of the cattle we, our customers, the packers and the consumers all benefit,” wrote an NCBA member.  “Those who claim to be shut out of the market by these mutually-agreed upon arrangements are upset that they can no longer pass off their ‘Pig-In-a-Poke’ low quality commodity cattle for the same cash price as received by more progressive and quality minded producers.” 
“This amendment hurts the entrepreneurial spirit of cattle ranchers by inhibiting their participation in marketing alliances which can add value to their cattle,” says Colin Woodall, NCBA’s executive director of legislative affairs.  “The proponents of this packer ban want to put the government in control of the cattle producer’s business instead of letting the market reward a producer for the work he’s done to produce higher quality beef.”
NCBA will be working to strip this language from the final Farm Bill and urges cattle producers to aggressively communicate with their Senators about the consequences of this language.  NCBA members can contact Elizabeth Bostdorff, NCBA’s manager of policy affiliate relations in NCBA’s Washington, D.C. office at 202-347-0228 or ebostdorff@beef.org for more information on Farm Bill issues, and for assistance in contacting their Senators. 

Vote No on the “Captive Supply Reform Act” - In related news, NCBA is working to communicate with Senators about the negative impacts of legislation dealing with Captive Supply which could be added to the Senate Farm Bill next week.
This provision, being championed by Senator Michael Enzi (R-Wyo.), would outlaw the ability for cattle producers to engage in confidential, one-on-one business deals with prospective buyers.  Instead, cattle producers would have to conduct all of their business in open markets with competitors and neighbors looking on, watching, and engaging in the process.  The bidding process would also be required to include at least one blind bid.  In addition, forward contracts would be prohibited for more than 40 head of cattle and prohibited from using a basis pricing mechanism. 
“Forward contracts, as well as other alternative marketing arrangements, are the basis for the marketing alliances that allow producers to get paid for the value they add to their cattle by investing in good genetics and implementing sound herd management practices,” says NCBA’s Executive Director of Legislative Affairs Colin Woodall.  “These marketing alliances are providing the consumer with the high quality beef they demand, while allowing producers to get more money for their cattle.  If these alliances and arrangements are lost due to intrusion by the government on our business practices, then it is the consumer and cattle producers that lose the most.” 
As the Senate prepares to debate their Farm Bill package on the Senate floor this week, NCBA urges cattle producers to contact their Senators about the negative impacts of letting the government control the cattle market. 

Cattlemen Laud Disaster Assistance Package - NCBA is supporting a Permanent Disaster Relief Trust Fund that was approved by the Senate Finance Committee as part of the “Heartland, Habitat, Harvest, and Horticulture Act of 2007” (S. 2242).  Of interest to cattle producers, the permanent program includes:
- disaster payments to help offset pasture and grazing forage losses resulting from drought or other inclement weather,
- permanent authority for the Livestock Indemnity Program (LIP) which would compensate producers for disaster related death loss at a rate of 75 percent the market value of the animal at the time of death, and
- an Emergency Assistance component allowing USDA to use up to $35 million annually to provide emergency relief to eligible producers who suffered substantial losses but whose county of residence was not covered by a formal disaster declaration.
“Ranchers struggle with difficult management, movement and sale decisions in the midst of a disaster, and that situation is worsened by the uncertainly of whether or not Congress will be able to provide any meaningful assistance,” says Jason Jordan, NCBA’s manager of legislative affairs.  “This disaster assistance package is permanent in nature as opposed to previous approaches of providing producers with assistance on an ad-hoc basis well after a catastrophic event.” 

House Tax Panel Approves One-Year AMT Patch, Extenders - The House Ways and Means Committee approved November 1st, H.R. 3996, the Temporary Tax Relief Act of 2007.  Included in the legislation is a one-year “patch” for the Alternative Minimum Tax (AMT).  Although the AMT was originally intended to target only the highest income earners, it was not indexed to inflation. It is estimated that without Congressional action, an additional 23 million taxpayers would be saddled with the burden of paying the tax in 2007. NCBA policy supports a full repeal of the AMT.
In addition, H.R. 3996 would extend a number of expiring tax provisions for one year including a deduction for state and local sales taxes in states without an income tax and an enhanced deduction for the donation of qualified conservation easement donations.  With regard to the conservation easement provision, NCBA has strongly supported legislation in the House (H.R. 1576) and Senate (S. 469) that would make this beneficial deduction for farmers and ranchers permanent. At present, the Senate Finance Committee has approved legislation which contains a permanent extension, and it is awaiting further action on the Senate floor. 

 Ag Committee Hearing on Packing Technologies - The House Agriculture Committee held a hearing on Tuesday, October 30th, to review technologies in the meat industry.  “Over the past several decades, technology has improved the quality and safety of meat products available to consumers,” Committee Chairman Collin Peterson said. “This hearing is a good opportunity to educate the Committee and the public about some of these new and emerging technologies being used in the meat industry.”
The Committee was especially interested in hearing about the use of carbon monoxide (CO) in modified atmosphere packaging (MAP) a food packaging technology which has been utilized commercially for years to better preserve products at retail. 
“The use of MAP-CO for fresh meat offers numerous significant advantages including improved product appearance, better flavor and greater tenderness and suppression of bacterial growth,” testified Dr. Joseph Sebranek, Ph.D. and a professor of meat science at Iowa State University.  “This technology is establishing a track record that has been free of problems and has not been an issue with consumers.  It seems to me that it is most appropriate to let the marketplace decide the ultimate success or failure of this technology.”

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Nov 8                     BCIA Sale, Raymond
Nov 13                    Wilkinson CCA
Nov 13                    Simpson CCA
Nov 15                    Webster CCA
Nov 15                    MAFES Sale, Starkville
Nov 19                    Claiborne/Jefferson/Warren CCA
Nov 20                    Adams/Wilkinson/Franklin CCA
Nov 27                    Nutrition Shortcourse, Distance Ed Sites
Dec 1                     Tanner Farms Sale, Shuqualak
Dec 6                     Lafayette CCA

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Mississippi Cattlemen's Association
680 Monroe Street, Suite A
Jackson, MS 39202
(601) 354-8951
missca1@bellsouth.net