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A second jobs bill now moving through the Senate contains an agriculture disaster package that was stripped from an earlier bill.

Introduced by Montana Sen. Max Baucus, chairman of the Senate Finance Committee, and Senate Majority Leader Harry Reid, the legislation is expected to be put on a fast track. Read more

Funding Available for Management, Profitability Teams

Harrisburg – Pennsylvania’s beef industry is benefiting from the efforts of the newly-formed Center for Beef Excellence, an initiative of the Pennsylvania Beef Task Force.

Governor Edward G. Rendell appointed the Pennsylvania Beef Task Force in 2007 to re-energize the state’s cattlemen, encouraging them to push for increased profits, more beef production and a stronger agricultural economy. The group’s 70 members represent all aspects of the industry from production, education and industry.   

“We are excited about the progress the Center for Beef Excellence has made in the first year to establish a strong foundation and begin building a network within the beef industry,” said executive director J. Willard Lemaster. “As we continue to expand our services and programs, we can further help our producers improve profitability while moving the entire industry forward.”

The center has established the Integrated Resource Management Team program, or IRM teams, for Pennsylvania cow-calf operations. The program brings together experts from all areas of beef cattle production to work with the producer to target and address on-farm problem areas.

The center will offer a maximum of $3,000 for up to 12 farms to develop a team. Funding is available for 18 months of the IRM team operation and may be used to reimburse team members or cover up to 50 percent of expenses incurred in identifying solutions to farm problems.

A mentor will be provided to help coordinate each team meeting and provide input. Teams are encouraged to meet monthly or bimonthly to evaluate the operation, set goals and develop action plans for targeted areas, and assess progress.

Applications for IRM teams are now being accepted by contacting the center at 717-425-5545, or via e-mail. IRM seminars and training sessions for all interested producers will be coordinated through the center.

Other strides made by the center during the first year include:

• Establishing a Web site (www.beefexcellence.com) that offers information and resources for producers, packers, retailers and youth, in addition to a marketplace section where producers can sell beef-related items at no charge to them.
• Purchasing a trailer and portable handling facilities with a grant for small producers to borrow when participating in a calf pool to combine their market calves to potentially get higher prices and offer more marketing opportunities. Based on the grant, priority is given to producers in Bedford, Bradford, Greene, Fayette and Somerset counties. The equipment is also used as an educational tool to show producers the advantages of marketing backgrounded calves, or those weaned for 45 days, on feed prior to marketing and vaccinated twice, and demonstrate the ease of working with cattle with the proper equipment.
• Providing funding for the Beef Quality Assurance program to support its mission of providing guidelines for production management techniques that raise consumer confidence.
• Helping fund new genetic testing of bulls at the 2009-2010 Pennsylvania Livestock Evaluation Center Bull Performance Test with an educational outreach program to explain how the results affect producers within all segments of the industry.
• Partnering with industry groups like the Pennsylvania Beef Council, Pennsylvania Cattlemen’s Association, Penn State Cooperative Extension, the University of Pittsburgh and the University of Pennsylvania Veterinary program among others, to sponsor events.
• Developing marketing materials for use at trade shows, meetings and events.

For more information about the Center for Beef Excellence, call 717-425-5545, or e-mail Executive Director Willard Lemaster.

As the lackluster economy puts a stranglehold on state budgets and officials search for places to make cuts, one target of the ax is agriculture programs, including Extension.

Some were potentially draconian. Michigan was threatened with a 44 percent cut in funding for Extension and research stations after narrowly escaping elimination through line item vetoes. In October, however, the governor approved a budget that included the programs.

Ag economist Dave Schweikhardt, formerly at Mississippi State and now at Michigan State, says, “The bottom line is that state and local governments are a major contractionary force in the economy right now, because their only choice is to raise taxes or cut spending.

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As a member of the Southern United States Trade Association (SUSTA), West Virginia agricultural producers will have an opportunity to showcase and sell in the Canadian, Chinese and Australian markets.

The missions are part of a multi-year initiative of SUSTA, a trade-based group with the goal of helping companies enter and successfully compete in the lucrative Chinese market. In 2009, the organization led more than 85 trade events in 35 markets throughout the world.

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It is still likely the Senate will act in early 2010 ensuring no person will escape the estate tax.  The Senate will potentially enact legislation or promulgate a retroactive statement which will change or extend current law. A retroactive tax fix would likely raise many complications, especially if lawmakers wait too long to enact it.  The constitutionality of such a fix is questionable; however many U.S. courts, including the Supreme Court, have historically defended retroactive taxes. 

Currently,  estates larger than $7 million per couple or $3.5 million for individuals are subject to the estate tax.  If Congress does not act, those under that threshold will be hit with the following major tax changes:

• Estate and generation-skipping transfer (GST) taxes will be repealed for 2010;
• Gift tax will be retained with a top rate of 35 percent and an exclusion amount of $1 million;
• The stepped-up basis at death rules will be repealed and replaced with modified carryover basis. The recipient of the bequeathed property will receive a basis equal to the lesser of the adjusted basis of the property in the hands of the decedent, or the fair market value of the property on the date of the decedent's death;
• Executors will be able to increase the basis of estate property by up to $1.3 million, or $3 million in the case of property passing to a surviving spouse. Thus, an estate will be allowed to increase the basis of property transferred to a surviving spouse by as much as $4.3 million. However, the basis of an asset cannot be adjusted above its fair market value at the date of the decedent's death; and
• Executors of estates will also be required to report certain details relating to transfers at death of non-cash assets in excess of $1.3 million and appreciated property received by the decedent within three years of death for which a gift tax return was required to be filed.

Many tax provisions will be expiring at the end of next year – see the CNBC article below.   NCBA will continue to be your voice of reason on tax matters in Washington and we will continue to monitor these issues and get you updates as they occur. 

View the Congressional Budget Office brief of the estate tax.  

North Carolina has become the fourth state with confirmed cases of novel H1N1 flu in pigs.

A federal laboratory has verified the presence of the 2009 novel H1N1 flu virus in samples taken from pigs at two North Carolina farms. Minnesota, Indiana and Illinois have previously reported cases of the novel H1N1 virus in pigs.

The pigs in North Carolina have been under the care of a swine veterinarian and have recovered from the illness. “The herd veterinarian noticed signs of mild illness in the pigs and conducted tests to determine the type,” reports State Veterinarian David Marshall. “Confirmatory tests by the U.S. Department of Agriculture’s National Veterinary Services Laboratory in Ames, IA, indicated the virus was H1N1.

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From CattleNetwork

Even after years of sounding the global warning alarm, of gathering data, of preparing predictive models and proposing solutions, it remains far too easy to poke holes in what should be, by now, a tighter case for global warming.

If a massive, hugely expensive climate-targeting bureaucracy is built, shouldn’t it be upon bedrock science?

Perhaps such unequivocal bedrock will eventually be found. But the lead up to the early-December climate forum in Denmark wasn’t smooth for those agitating for a global effort to tackle climate change.

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Do you see a warning light flashing? Americans with high net worth and high incomes are preparing for the likelihood of higher taxes in 2011 and subsequent years. High earners are almost certainly going to take the hit if the EGTRRA and JGTRRA cuts fade away at the end of 2010.

Here’s a summary of what’s happening – and a look at what might happen.

There are some developments you will want to remember, and some tax breaks you might very well want to exploit.

No phaseouts on itemized deductions and personal exemptions in 2010. This may provide you with an opportunity for some notable tax savings. Historically, high-income taxpayers have been subject to a reduction in the value of itemized deductions and personal exemptions. That has gradually decreased in this decade. In 2010, the phaseouts are gone entirely. In 2011, they are poised to return.

As IRS standard deduction and personal exemption amounts are indexed to inflation, you’ll see very little change there for 2010. The standard deduction for heads of household will rise by $50 to $8,400 for the 2010 tax year. Other standard deductions will stay put, and the personal exemption amount will remain at $3,650 for 2010.

Lower long-term capital gains rates through 2010. Unless Congress decides to extend these Bush-era cuts, capital gains tax rates will revert to pre-2003 levels in 2011. For 2010, the long-term capital gains rate for those in the 10% and 15% tax brackets is 0%. In 2011, it is set to go to 10%. If you fall into the 25%, 28%, 33% or 35% tax brackets, the capital gains rate is 15% in 2010 and 20% in 2011.

The Tax Extenders Act of 2009. The House passed this legislation on December 9, and the Senate is likely to follow suit. The final version of this bill would likely extend the additional standard deduction for real property taxes, the deduction for state and local sales tax, and deductions for tuition/education expenses and teachers' classroom expenses into 2010.

The estate tax. 0% estate taxes in 2010? That was the plan … but the reality is that estate taxes are likely to remain at current levels in 2010 with some retroactive lawmaking. In early December, the House voted to restore the estate tax for 2010; a week later, the Senate voted against temporarily extending 2009 estate tax levels into the coming year. The Senate will almost certainly take up the issue again in January. However, to prevent a complete repeal of the estate tax next year, any new legislation is expected to contain a retroactive provision. So instead of taking effect upon passage, any new estate tax law would likely be made retroactive to January 1, 2010.  

The AMT. You know how it works – Congress comes up with another AMT patch at the stroke of midnight and middle-class taxpayers are saved once more. Well, just to make things interesting, the Tax Extenders Act of 2009 doesn’t include an AMT patch for 2010. Many tax professionals think the 2010 patch issue will be addressed early next year, with the patch for the 2010 tax year made retroactive.

How will marginal tax rates rise in 2011? Does anyone think taxes won’t increase in the near future? At present, the marginal tax rates are 10%, 15%, 25%, 28%, 33% and 35%. If Congress doesn’t act by the end of 2010, the tax brackets will reset to 15%, 28%, 31%, 36% and 39.6%. By the way, President Obama and some Democrats have proposed future tax brackets of 10%, 15%, 25%, 28%, 36% and 39.6% for 2011 (that is, only the highest two brackets would revert to pre-EGGTRA levels).

A healthcare surtax? If the healthcare reforms pass in 2010, taxpayers in the highest brackets might pay even more to the IRS. For example, the legislation that the House passed would require couples with MAGI of $1,000,000 or more or individuals with MAGI of $500,000 or more to pay an additional 5.4% surtax.

And finally, a dilemma for Congress. Congress would like to extend the Bush-era tax cuts further to protect lower-income and middle-income taxpayers. However, some analysts say it would cost the federal government more than $1 trillion over the next decade to do so.

Have you talked to your tax advisor lately? If you have, good for you. If you haven’t, do so now. Prepare for change, and plan to take advantage of extended and potentially expiring tax breaks. 

Arkansas Sen. Blanche Lincoln has announced the selection of Julie Anna Potts to serve as chief counsel for the U.S. Senate Committee on Agriculture, Nutrition and Forestry. Lincoln is chairman of the committee.

Potts, an Alabama native, most recently served as general counsel for the American Farm Bureau Federation. She is a graduate of Bryn Mawr College and George Washington University Law School.

“Julie Anna’s experience with the American Farm Bureau Federation and her service to American agriculture will be a great asset to the Senate Agriculture Committee,” Lincoln said. “I am proud to welcome her to the committee and look forward to working closely with her on issues important to Arkansas and our nation’s farmers, ranchers and rural communities.”

Prior to her service at the American Farm Bureau Federation, Potts was an attorney with Mayer Brown LLP and a law clerk at the U.S. District Court for the District of Columbia.

“It is an honor to be able to serve the Senate Agriculture Committee. I am looking forward to joining the committee and continuing my work on issues critical to agriculture and rural America,” Potts said.

“Basic broadband service is no longer a luxury — it’s a necessity for strengthening our rural communities and fueling economic development.”

Ten years ago, President Bill Clinton declared a need to “bridge the digital divide” separating those with broadband high speed Internet service from those, predominantly in rural areas, with either no access or slow dial-up connections.

Today, unfortunately, “The divide remains,” says Lawrence Strickling, assistant secretary for communications and information for the Department of Commerce’s National Telecommunications and Information Administration.

At a hearing by a House agriculture subcommittee, he cited a Pew Internet and American Life Project study showing that only 38 percent of rural American households subscribe to broadband service at home. That compares to 57 percent for cities and 60 percent for suburbs.

But those figures are by no means definitive, Strickling notes, because “at this moment no federal agency has collected comprehensive and reliable data” on the current state of broadband in rural America.

Under the American Recovery and Reinvestment Act, he said, plans call for mapping grants to every state and territory that will result in a national broadband map by February 2011. Congress also provided funds to accelerate deployment of broadband services to rural communities.

Depending on the source, U.S. broadband is a shabby, overpriced also-ran compared to other nations, or is actually pretty good in terms of service and value. Again, no definitive data.

Regardless, deployment of broadband is critical to the growth of rural communities, according to a report by USDA’s Economic Research Service, which concluded that high speed Internet access can boost the economic base, increase employment and off-farm earnings, broaden educational opportunities, and offer greater access to medical knowledge and providers.

“It is often the key factor that can level the economic playing field, provide rural businesses access to national and international markets, and allow new, small, and home-based businesses to thrive,” Jonathan Adelstein, administrator for USDA’s Rural Utilities Service, said at the House subcommittee hearing.

“We are now applying our technical skills, historical knowledge, and financial expertise gained over the past 75 years to meet the new challenge of deploying next-generation broadband capability in rural communities.” The Recovery Act includes $2.5 billion for rural broadband deployment.

Earlier this year, the Congressional Rural Caucus urged the Federal Communications Commission to address the needs of rural America as it develops a national broadband plan.

“In recent years, rural states have seen a brain drain, causing us to lose our most vital economic assets to more populated areas,” Co-Chair Adrian Smith of Nebraska said at a recent meeting of the caucus with FCC Chairman Julius Genachowski. “Broadband is one of the tools we have to counter this brain drain.”

Co-Chair Travis Childers of Mississippi said, “Basic broadband service is no longer a luxury — it’s a necessity for strengthening our rural communities and fueling economic development. We look forward to continuing to work with the FCC in creating a broadband strategy that works for rural America.”

Farmers’ hopes for disaster aid near-term received a setback last week when the House passed a $174 billion jobs package that did not contain the assistance for weather losses during the 2009 harvest they’ve been seeking.

Sponsors of a bill that would provide supplemental direct payments to farmers in counties that have been declared disaster areas were unable to attach an amendment to the jobs package that redirects $75 billion in Troubled Asset Relief Program savings to fund infrastructure and job investments.

Congressional staffers who have been working on the disaster legislation said it will be difficult to find another legislative vehicle that could be used to distribute assistance to farmers before they begin planting the 2010 crops. Payments under the government’s new permanent disaster aid program (SURE) will not be available until 2011.

“The Senate still has its jobs bill, but time is quickly running out,” said an aide to one member of Congress. “Based on history, it will be difficult to amend any other pieces of legislation.”

Although the jobs package contained no funding for disaster aid, it does provide $100 million in funding for civil rights cases that have been filed against the U.S. Department of Agriculture over the last two decades.

The disaster bill sponsored by Reps. Travis Childers, D-Miss., and Marion Berry, D-Ark., would provide $2 billion to farmers in disaster-declared counties along with livestock and specialty crop producers. Similar legislation has been introduced in the Senate by Sens. Thad Cochran and Roger Wicker, both Mississippi Republicans, and Blanche Lincoln, D-Ark.

Of the $75 billion in TARP funds, $43.8 billion of this funding will go toward infrastructure investments, including $27.5 billion for highway infrastructure investments, $8.4 billion for public transportation investments, $2 billion for clean water programs, $2 billion for energy innovation loans, $4.1 billion for school renovation grants, $1 billion for the National Housing Trust Fund, and $1 billion for the Public Housing Capital Fund.

A total of $26.7 billion out of the total $75 billion will go toward public service jobs, including $23 billion for an Education Jobs Fund, $1.18 billion for law enforcement jobs, $500 million for firefighter jobs, $500 million for summer youth employment, and $750 million for job training for high growth fields.

The amendment also provides $79 billion in continuing emergency funding, including $41 billion to extend unemployment insurance for six months, $12.3 billion to extend from nine to 15 months the 65 percent COBRA health insurance subsidy, $354 million for small business loan programs, $23.5 billion to extend FMAP through June 2010, and $2.3 billion to increase eligibility for the child tax credit.

The 217-212 vote on the jobs package was along party lines with no Republican House members supporting the measure and 38 Democrats voting against it.

Will the nation’s fledgling biodiesel industry be forced to shut down when most of the country is returning to work from the holidays on Jan. 4?

That’s a real possibility if Congress doesn’t act to extend the biodiesel tax incentive before its scheduled expiration date of Dec. 31, according to biodiesel industry supporters such as the National Biodiesel Board and the American Soybean Association.

The NBB and ASA have been urging their members and supporters of biofuels to contact their senators and representatives to ask them to extend the biodiesel tax credit beyond the current expiration date.

“It is imperative that Congress extend the incentive before adjourning for the year,” the American Soybean Association said in an Action Alert distributed to members Dec. 16. ASA asked members to support legislation introduced by Sens. Charles Grassley, R-Iowa, and Marian Cantwell, D-Wash., to renew the $1 per gallon credit.

ASA and National Biodiesel Board leaders had asked congressional supporters to include the legislation in the Department of Defense Appropriations bill. But the latter was passed by Congress without such an amendment.

Grassley accused the Obama administration and Democratic congressional leaders of failing to back up their rhetoric in support of “green” jobs.

“It seems like nearly everyone in the administration is touting the benefits of green jobs and a clean energy economy,” he said. “It’s astonishing, then, that this Congress will head home for the holidays while thousands of green energy workers receive pink slips and furloughs.”

The biodiesel tax credit is essential in maintaining the competitiveness of this clean-burning, domestically produced green fuel, supporters say. The tax credit exists to offset the higher cost of producing biodiesel compared to petroleum diesel. Without the tax credit, petroleum marketers will be unwilling to purchase the more expensive biodiesel, and demand will vanish.

“In 2008, the biodiesel industry supported more than 51,000 green jobs,” Grassley said in a speech on the Senate floor. “Because of the downturn in the economy and the credit crisis, the biodiesel industry has already shed 29,000 green jobs.”

ASA and NBB officials said the loss in revenue from extending the tax incentive will have little impact on the federal budget deficit or tax revenues since many biodiesel facilities will be shuttered if the credit expires.

“Since it was enacted in 2004, the biodiesel tax incentive has allowed the nation to reap the economic, energy security and environmental benefits associated with commercial scale production and use of biodiesel,” said Manning Feraci, an NBB vice president. “Allowing the credit to lapse will compound the already daunting challenges facing the industry.”

On the farmer side, failure to renew the biodiesel tax incentive could reduce prices paid for soybeans by 25 cents or more per bushel.

Cantwell and Grassley’s bill is S. 1589, the Biodiesel Tax Incentive Reform and Extension Act of 2009. The bill would extend the credit for five years and restructure it as a production excise tax credit. Congressmen Earl Pomeroy, D-N.D., and John Shimkus, R-Ill., have also introduced H.R. 4070 in the House.

“As time is running out on the Congressional calendar, Congress is also considering legislation that would provide a one-year extension of the existing biodiesel tax incentive,” the ASA said. “Either way, a strong show of support is necessary if we are going to successfully extend the biodiesel tax incentive beyond the end of this year.”

Proponents say there’s little doubt about what will happen in the industry if the credit goes away.

“Without an extension of the tax credit, all U.S. biodiesel production will grind to a halt,” said Grassley. “No one should be surprised by the upcoming expiration of this tax credit. It was extended most recently in October of 2008. So, we’ve known for 14 months that it would need to be extended by the end of 2009.”

Democratic leaders of Congress apparently believe they can extend the tax provisions retroactively sometime early next year. “But retroactivity doesn’t help the U.S. biodiesel market from grinding to a halt on Jan. 1, because without the incentive, biodiesel will cost much more than petroleum diesel.”

Immunizing calves with either of two forms of a vaccine newly developed by Agricultural Research Service (ARS) scientists might reduce the spread of sometimes deadly Escherichia coli O157:H7 bacteria. The microbe can flourish in the animals' digestive tracts, yet doesn't cause them to show clinical symptoms of illness.

In humans, however, E. coli can cause bouts of diarrhea and, sometimes, life-threatening hemolytic uremic syndrome.

Research microbiologists Vijay K. Sharma andThomas A. Casey developed the novel vaccines in their laboratories at the agency's National Animal Disease Center in Ames, Iowa and are seeking a patent for it.

Preventing E. coli O157:H7 from proliferating inside cattle helps limit contamination of meat at the packinghouse, and reduces shedding of the microbe into the animals' manure. Manure-borne E. coli can be moved by rainfall into drinking water. What's more, it can end up in irrigation water, and can contaminate fruits, vegetables or other crops, increasing risk of an outbreak of foodborne illness.

One form of the vaccine is comprised of cells of a strain of E. coli O157:H7 that is lacking a gene known as hha. A second form of the vaccine contains an E. coli strain lacking both hha and a second gene, sepB. In either vaccine, the E. colistrain produces a large quantity of what are known as immunogenic proteins. These proteins trigger the immune system response that prevents E. coliO157:H7 from successfully colonizing cattle intestines.

In preliminary tests, Holstein calves were immunized at age 3 months with a placebo or either form of the vaccine. Six weeks later, the animals were given a dose of E. coli O157:H7, and, for the next 18 days, their manure was tested for evidence of the microbe. Calves that received either vaccine had reduced or non-detectable levels of E. coli in their manure within only a few days after being inoculated with the bacteria, Sharma and Casey found.

Some of the scientists' earliest work with the hha gene is documented in the journal FEMS Microbiology Letters.

ARS is the principal intramural scientific research agency of the U.S. Department of Agriculture. The E. coli investigations help ensure food safety, a USDA top priority.

A bill that would make the 2009 estate tax level permanent — 45 percent and $3.5 million per person exemption — has been approved by the House of Representatives.

The bill passed by a 225-200 vote, with all Republicans opposed. Under current law, the estate tax is scheduled to go away in 2010, but revert to a 55 percent tax rate and a $1 million/person exemption in 2011. The legislation faces an uncertain future in the Senate.

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New disaster legislation should be targeted to farmers who need it most without regard to the types of crops they produce, the president of the American Farm Bureau Federation has written in a letter to the sponsors of an ad hoc disaster bill.

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THE COLUMBUS DISPATCH

Ohio voters agreed yesterday to create a state board to protect the state's $93 billion-a-year agribusiness industry.

State Issue 2, a constitutional amendment to establish the 13-member Livestock Care Standards Board, was being approved by about 64 percent of voters, according to partial, unofficial results last night from the Ohio secretary of state.

The Issue 2 vote was a big victory for farmers and business interests -- along with Gov. Ted Strickland -- who campaigned hard for it in hopes of blocking liberal animal-care reforms advocated by the Humane Society of the United States.

But Ohioans might get to do it all again next year.

Wayne Pacelle, president and chief executive officer of the Humane Society of the United States, said he expected to lose but reaffirmed what he'd said before: They'll be back.

"We just needed to see this issue resolved before we launch reform efforts in Ohio to phase out the confinement of animals on factory farms," he said. "We haven't made the final decision to do that, but it's very likely."

Strickland would oppose such a move.

"I think the people have spoken, and we could make the argument that the issue had been taken to the people in the form of a ballot initiative and they had expressed their desires," he said yesterday.

Athens County was the only county to defeat Issue 2. Franklin County voters gave it one of the most narrow margins -- 56 percent to 44 percent.

To many farmers, it came down to a choice between coping with new state regulations or reforms initiated by outside interests that could threaten the economic future of Ohio's livestock industry.

John Lumpe, executive director of the Ohio Soybean Association and president of Ohioans for Livestock Care, said the vote represented "Ohio taking care of Ohio."

Ohio Agriculture Director Robert Boggs, who will be chairman of the new board, promised it will "serve Ohio's citizens in a way that will be transparent and open." It was a setback for the Humane Society, which came to Ohio this year hoping to work out compromise legislation calling for new "confinement standards" for breeding pigs, egg-laying hens and veal calves. Instead, agribusiness leaders moved quickly to persuade the legislature to put the constitutional issue on the ballot.

“Coming into 2009, CWT’s economists estimated that we would need to remove between 5 billion and 6 billion pounds of milk, the production of approximately 250,000 cows, through herd retirements,” said Jerry Kozak, president and CEO of the National Milk Producers Federation, which administers CWT. “We are pleased that the participation in this third herd retirement of 2009 has brought us to our goal of aligning supply with demand, and hastening the recovery of farm-level milk prices that plunged because of the global recession.”

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In a Sept. 21 letter to GAO, Slaughter asked for a study to address the following areas:

• Which data exist on the types and quantities of antibiotics used in food animals and on the purposes for which they are used?
• Which further data do USDA, FDA and CDC believe are needed to assess and mitigate the risks to people from antibiotic use in animals, and what efforts are underway or are needed to collect these data?
• To what extent is USDA monitoring food animals and meat for the emergence of antibiotic-resistant strains of pathogens like Escherichia coli, Campylobacter, Salmonella and Listeria?
• How effectively is FDA overseeing industry compliance with currently approved animal antibiotics and uses for these antibiotics?What is FDA’s plan and time frame for reevaluating the antibiotics (and antibiotic uses) it has approved for animals?
• What efforts have USDA, FDA, and CDC taken to assess the human health risks related to antibiotic use in animals, and what have the assessments shown?

The letter can be viewed here.

-- National Meat Association “Lean Trimmings

-- Burt Rutherford

Jim Byrum, president of the Michigan Agri-Business Association, was involved in negotiations. Byrum says no one likes change and no one likes to spend money to make those changes. The fact of the matter is, he says, agriculture recognizes we must be more responsive to consumer demand and perceptions. This legislation is a manifestation of that realization.

HSUS had threatened to collect signatures for a ballot initiative in Michigan that, according to Byrum, would have caused essentially these same outcomes, but in a much shorter time-frame and with much more onerous penalties against Michigan farmers. Byrum believes this is the best resolution to a difficult situation, and producers now have certainty and can spend their resources to comply with the new guidelines.

Meanwhile, livestock interests in Ohio are promoting their own "Proposition 2"

It's actually called Issue 2 in Ohio. And in a little over a month, Ohioans will vote on whether to amend the state constitution to create an Ohio Livestock Care Standards Board.

If passed, the measure would establish the Ohio Livestock Standards Board, which would set standards on animal care and "take into account issues of food safety, local availability and affordability of food and the best farm management practices for animal well-being.”

According to the Ohio Farm Bureau, the resolution for Issue 2 had "overwhelming support" in the Ohio General Assembly, and passed 83 to 16 in the House and 31 to 1 in the Senate. However, Issue 2 is not without opposition. Critics include the HSUS, the Ohio Farmers Union, the Ohio Environmental Stewardship Alliance and the Ohio Sierra Club.

-- Ron Hays, Radio Oklahoma Network

-- Southwest Meat Association

In a joint statement, Ag Secretary Tom Vilsack and U.S. Trade Representative Ron Kirk said, "We regret that formal consultations have not been successful in resolving Canada's concerns over country of origin labeling (COOL) required by the 2008 Farm Bill for certain agricultural products.

"We believe that our implementation of COOL provides information to consumers in a manner consistent with our World Trade Organization commitments.

"Countries have agreed since long before the existence of the WTO that country of origin labeling is a legitimate policy. It is common for other countries to require that goods be labeled as to their origin.

"We hope to continue to work with Canada to resolve this issue amicably."

According to NCBA, Canada’s decision to move forward with their complaint against U.S. COOL regulations is unfortunate, due to the potential retaliatory action that could be taken against U.S. beef. “Since COOL was first proposed, we’ve continued to have concerns about its potential implications on our relationship with our top two trading partners—not to mention its impact on domestic feeder cattle markets at our borders to the North and South,” NCBA said in a statement.

“The U.S. imports and adds value to Mexican and Canadian livestock through our feedlots, processing and infrastructure; and we export this value-added finished product back to Mexican and Canadian consumers. Any disruptions to either of these markets will have a significant economic impact on our industry. Unfortunately, it’s becoming clear that COOL has damaged these critically important trading relationships, and is not putting any additional money into the pockets of cattlemen.

“Canada and Mexico are our top two trading partners, together accounting for 59% of total U.S. beef, beef variety meat and processed beef product export revenues last year. It is likely that Mexico will join Canada in proceeding with a formal WTO dispute settlement process,” NCBA said.

-- Canadian government, USDA and NCBA releases

The EPA Administrator is required to keep such a list under Section 111 of the Clean Air Act. The petition can be viewed here

The petition charges that CAFOs emit air pollutants, specifically:

• Greenhouse gases that cause or contribute to climate change;
• Hydrogen sulfide that causes or contributes to hydrogen sulfide exposure localized odors, acid rain and hazeAmmonia that causes or contributes to odors, ecosystem acidification and eutrophication and haze;
• Particulate matter and small particulates that cause or contribute to particle pollution, acid rain and haze, and
• Certain volatile organic compounds that cause or contribute to localized odors, ground-level ozone and haze.

-- National Meat Association “Lean Trimmings”

• In multi-sire breeding pastures, ensure that bulls to be pastured together have been in a common trap or pasture prior to the breeding season. Bulls WILL establish a social hierarchy. They will fight to find out who is “king of the mountain.” It is better to get this done before the breeding season begins, rather than wait until they are first placed with the cows.
• Put young bulls with young bulls, and mature bulls with mature bulls. Mixing the ages will result in the mature bull dominating the younger bull completely, and in some instances causing a serious injury. If the plan is to rotate bulls during the breeding season, then use the mature bulls first, and follow with the yearling bulls in the last third of the breeding season. In this way, the young bulls will have fewer cows to breed, and will be 1-2 months older when they start breeding.
• Breeding soundness exams will be a cost-effective way to help weed out those bulls that may be dominant in the bull pasture, but due to poor semen quality, could cause a lowered pregnancy rate or elongated calving season next fall. Visit with your local veterinarian about testing the bulls soon, so that if replacements are necessary, there is enough time and opportunity before the fall breeding season is to begin.

-- Glenn Selk, “Oklahoma State University Cow/Calf Corner”

The new training is available online and on-site. An important aspect of the curriculum is the early recognition of behavior or health problems that could be detrimental to the individual animal or the entire flock or herd. It addresses animal-welfare issues and poor animal husbandry that are created by a lack of worker/handler knowledge. The program instructors are animal science professionals who will provide onsite demonstrations and guidance in appropriate handling and treatment, whether in the barn or in the field.

For more on AHC please go to www.thehumanetouch.org. For more on American Humane visit www.americanhumane.org.

In the letter to Andres A. Alonso, Boyle pointed out that the district’s web site says three of four students in the Baltimore school district are eligible for free and reduced meals. “Did you also know that according to food banks nationwide, meat is the most requested and least available food?” Boyle asked. “The population of children you serve in particular needs the protein and essential vitamins that meat and poultry products offer and school meals may be the only significant source of meat and poultry in their diets.”

Read the letter here.

-- Burt Rutherford

The article also took USDA to task for its competing goals of promoting agriculture and protecting consumers. I would argue that those two goals are rarely antagonistic and usually are congruent, but in today's age where profits and capitalism in general are deemed problematic, that is not an argument that is going to be well received. The USDA Secretary's tepid response that cited working groups and appointments, while largely deflecting any blame backwards to previous administrations, was received in the light it was given.

The cover-their-behinds attitude so prevalent throughout the article by retailers, processors, and government entities was the most damning aspect of the article. This attitude may be an understandable part of any government bureaucracy with political overtones, and a necessity in today's litigious society, but nevertheless it portrays the image that other concerns take priority over consumer safety.

It doesn't matter if the issue is food safety or animal welfare—as an industry we must demonstrate that we have declared an all-out war to eliminate any problems regardless of how rare they are. Facts and figures showing continual incremental improvement do little in the face of a story about a young lady whose life was devastated by E. coli or contrasted to a Hallmark video showing actual abuse.

-- Troy Marshall

According to the Food Marketing Institute’s (FMI) "2009 U.S. Grocery Shopper Trends," nearly 70% of shoppers say the recession is affecting their food shopping — up from 48% in 2008. Consumers in every income bracket are checking prices before checking out at the grocery store.

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And so it is with cattle markets. Most of the past three years (or six if you start with BSE) have been a rollercoaster of shocks and changes, some short run in nature and some likely more permanent. Arguably the biggest of these and one that is likely more permanent is the change in feed prices.

Although the massive initial shock waves of high corn prices have subsided a bit, the beef industry is still making adjustments to reestablish profitably in the industry, especially in the feedlot sector, Peel says. The industry has made significant adjustments by changing the manner and timing of cattle feeding and has been helped by three consecutive large corn crops that are giving us currently the lowest corn prices that can reasonably be expected.

Still, feedlot profits remain elusive. Although feed costs have moderated in recent months, the global recession has produced weak beef and fed cattle prices resulting in continued feedlot losses. The pain is very real and the long-term reality of reducing excess capacity (feedlots closing) is underway at this time. Nevertheless, there is some potential light at the end of the tunnel.

The near certainty of a 13-billion-bu. corn crop this fall suggests that corn prices will remain in the $3/bu. range and keep feedlots cost of gain in check. Projected feedlot budgets, relative to live-cattle futures, are almost at the point of showing a breakeven for cattle feeding. It will take months of profitability to stop the structural adjustments to feedlot capacity that are underway but it would only take a bit more help in terms of lower feeding costs or higher fed cattle prices to begin the process.

There may begin to be some opportunities to lock in profitable margins in cattle feeding and that may offer more opportunities for cow-calf and stocker producers to have retained ownership as a viable alternative. Macroeconomic recovery that translates into stronger beef demand is possible in the next few months and will certainly help the process.

Markets don’t sit still and inevitably markets will continue to adjust and move toward relative input and output prices that allow profitability and more stability (in the absence of additional shocks!). Opportunities will appear and disappear along the way and producers should look for chances to take advantage of those opportunities. History is less of a guide in dynamic times and rules of thumb based on history are downright dangerous. Nevertheless, there are opportunities.

-- Derrell Peel, OSU Cow-Calf Corner

“In early 2007, we actually ran a survey and it contained about 80 different variables which we could look at and say, ‘This measurement has an impact on predicting an increase in demand.’ So out of that list of variables, we narrowed it down to a smaller list of about 35 demand drivers and have been adjusting that list over time,” says John Lundeen, executive director of market research for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program.

“An example is the impact of sustainability on the consumer’s decision – that was just added to the index recently. But there are two overall functions embodied in the tool: one is to kind of shine a spotlight on what’s important to the consumer and the second one is to say are we being effective with our communications.”

This study invariably shows the heavy beef consumer is also a heavy chicken consumer – they’re protein fans, plain and simple. Over the years, chicken continues to score high in the nutrition category but beef is gaining ground. Beef also continues to maintain its lead on taste and crave-ability where it tops chicken.

The numbers help the beef Checkoff tailor programs in order to ultimately help drive demand.

“All Checkoff programs have to respond long-term with what’s gaining in importance, all the while, being able to respond short-term,” continues Lundeen. “People’s desires from food are actually pretty constant. Twenty years ago there were about five factors of importance: taste, convenience, nutrition, variety and price. Now the one that’s possibly coming onto the radar is a broader definition of food around social causes – the environment, sustainability and animal welfare."

Consumer expectations have changed and what we’re seeing is that consumer wants food that delivers on all those attributes, Lundeen says. So the weighting of the factors changes, and when something stands out as being more important, we have to react to it.”

The Index numbers show consumer have reacted to the changes in Checkoff communications and are now starting to get the message about the nutrient-richness of beef and its positive nutritional aspects. In general, consumers are starting to ascribe a general positive nutritional halo to beef. They’re aware of the lean cuts that are available and safety nudged upwards. The numbers tell a very positive story for producers – 30% of “beef loyalists” put beef on par with chicken as far as nutritional value.

-- MyBeefCheckoff.com

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The Noble Foundation’s Integrity Beef Program is a comprehensive management system that assists participants in producing consistent, high-quality beef cattle by addressing herd establishment, animal health and forage management. Participants are required to follow and implement specific criteria, including maintaining appropriate stocking rates; administering a veterinarian-approved herd health program; maintaining animal health and management records; and achieving Beef Quality Assurance (BQA) certification.

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These permanent disaster programs, authorized in the 2008 farm bill, replace previous ad-hoc disaster assistance programs and are funded through the Agricultural Disaster Relief Trust Fund.

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Even though producers were enjoying a less-challenging weather pattern this summer, many cow-calf producers have struggled to cover rising costs on a softer calf market, said University of Kentucky Agricultural Economist Kenny Burdine.

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“In general, a good lease is one in which both parties agree it is fair and both completely understand each other’s expectations,” Tucker says.

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The key to the system began with free land, which migrated to cheap land, and now rests on inherited land. Land appreciation is what has always made the system work, but land values relative to agriculture output have increased by such a margin that acquiring additional land is a course for only those with tremendous equity.

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Some lawmakers say the measure passed 87-20 Wednesday could avert possible animal treatment ballot initiatives such as those passed in Arizona, California and Florida.

It's unclear if the proposal now headed to the Senate is strong enough to prevent animal rights advocates from pursuing such a measure in Michigan.

The measure would apply to pregnant pigs, veal calves and egg-laying hens. The rules would have exceptions but in most cases would allow the animals enough room to at least turn around freely.

Michigan and most other states have no laws addressing farm animals welfare.

The demand added up to 25 cents in support for the per-bushel price of soybeans.

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According to USDA, increased supplies and lower projected prices will lead to a 15 million bushel increase in U.S. soybean exports to a record 1.28 billion bushels.

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Take, as an example, Cargill Cattle Feeders. In mid-2007, the cattle-feeding company began using DNA markers for marbling in their sorting criteria for feeder cattle.

Simple, right? Well, yes and no. Just ask Bill Kolath.

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This commitment is dependent upon the Japanese trade remaining open to U.S. beef products and our plants continuing to be approved to export to Japan. However, even if the border opens to product from cattle under 30 months of age, instead of the current 20 months or younger, USPB’s commitment to pay $35 per head will remain on age verified cattle 20 months or younger through May 29.

Eligible ASV cattle must be shipped from a feedyard that is an approved supplier in a USDA certified supplier program. See Fact Sheet on USDA Age Verification Programs in the USPB Age and Source Verified Program section on USPB’s web page.

Following are key points regarding the benefits of marketing cattle through USPB to receive age and source verified premiums and information that will help you participate in our ASV program:
 

• $35 per head for finished, age and source verified cattle that are 20 months of age or younger.
• ASV premiums are in addition to all premiums currently offered on USPB’s grids, including branded beef premiums such as Certified Angus Beef®.
• Individual carcass data is provided at no additional cost.
• A freight credit of up to $0.60 per cwt. to help reduce transportation costs to deliver cattle to our plants.
• A $1 per head rebate for EID tags on cattle marketed to USPB’s Kansas plants, paid upon request.
• For information on leasing delivery rights, please call our office at 866-877-2525.
• Cattle need to be scheduled by Tuesday noon of the week preceding cattle delivery.
   

Producers interested in marketing ASV cattle to U.S. Premium Beef should call 866-877-2525 for more information on how they can participate in this program.

"I know there are very strong feelings on all sides of this issue, but I don't want us to get to the point where Congress says they will not continue to fund the system," Vilsack said. "If that were to happen, I would doubt the reliability of our market, and that's not where we want to be."

Vilsack said the USDA needs to hear from and accommodate people with concerns about how a disease tracing system would be administered. He said the US needs such a system to market its livestock as the "highest quality and best in the world."
Source: USAgNet

“When someone says, ‘This is my last day on earth,’ it’s very frightening,” said Michael Marsh, chief executive officer, Western United Dairymen, Modesto, Calif. He has intervened to help at least two dairy operators this year after they expressed despair. Western represents 1,100 dairy members producing 60 percent of California’s milk.

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“We have to get free trade done,” says Barry Flinchbaugh, professor of agricultural economics and farm policy at Kansas State University.

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That is, sadly, the case with the American Veterinary Medical Association (AVMA). People rightly look to their individual veterinarians as experts on animal welfare. They take an oath to alleviate animal suffering and in their professional work or in their volunteer efforts, they nobly fulfill that oath on a daily basis. Yet it’s been our experience that AVMA policies are out of step with a large share of veterinarians and the organization typically takes unfriendly positions on many of the major animal welfare questions of the day.

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"The contraction in the overall economy has caused less commercial and residential development in many regions. Livestock and crop commodity prices have declined from a year earlier, thus producers and investors are less optimistic than a year ago," say NASS analysts. "A decrease in the demand for recreational land has also contributed to the overall decrease in land values."

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Cooperatives Working Together (CWT) announced recently it has tentatively accepted bids to retire another 86,710 dairy cows accounting for 1.8 billion lbs. of milk production. CWT’s most recent herd retirement completed last month removed 101,000 cows and 1.96 billion lbs. of milk production.

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Trichomoniasis (trik-oh-moh-NIE-ah-sis), or "trich," is of particular concern in the West, where grazing associations and permits for grazing on public land allow cattle to co-mingle.

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