News Update

News Update
Oct. 24, 2006

Effect of Group Marketing Feeder Calves From Small Producers

In a collaborative project, Fort Valley State University and ABS Global worked with small cow-calf producers in Georgia in putting together truckload lots of feeder calves. The objective was to assist small producers in achieving greater returns by selling in load lots of uniform, source-verified calves. The calves were backgrounded on a corn silage diet formulated to support a daily gain of 2.2 pounds (lb.) per day.

In August 2004, 168 calves were marketed for an average return per calf of $108.77 over the local auction market. Average daily gain (ADG) was 1.78 lb. per day, and cost of gain was $1.62 per day during the backgrounding period. In November 2004, 430 calves were marketed for an average return per calf of $23.93 over the local market. Average daily gain in the November group was 2.01 lb. per day, with an average feed cost of $0.98 per calf per day.

There was no sickness or mortality during backgrounding in the August group. Twelve calves became sick in the November group, but there were no mortalities. No calves were rejected in August, while in November there were 17 no-loads. Health of the calves after sale was reported to be excellent.

These results suggest that it is possible to work with small beef producers and have a positive effect on enterprise profitability (Freeman and Getz. 2006. Southern Section ASAS. Abstract 130).

— by Rick Rasby, professor of animal science, University of Nebraska

Johanns Announces More Than $776 Million in Electric Loans

Agriculture Secretary Mike Johanns announced Oct. 23 that the U.S. Department of Agriculture (USDA) will loan more than $776 million to electric utilities in 16 states to provide service to more than 10,000 new customers and to make infrastructure improvements, including new generating facilities and lines.

One loan, for almost $38 million, is being made to the Coast Electric Power Association of Bay St. Louis, Miss. Funds will be used to restore distribution systems damaged by Hurricane Katrina. Southwest Electric Cooperative of Bolivar, Mo., will use more than $9 million in loan funds to build 119 miles of new distribution line and make system improvements, serving 2,447 new customers. Plumas Sierra Rural Electric Cooperative of Portola, Calif., will receive an $11 million loan to construct a new generation facility that will serve residents of California and Nevada.

States receiving funding include California, Colorado, Florida, Georgia, Iowa, Kentucky, Minnesota, Mississippi, Missouri, Montana, North Dakota, Nebraska, Nevada, South Dakota, Wisconsin, and Wyoming. A complete list of the loan recipients is available at www.rurdev.usda.gov. Since 2001, USDA Rural Development has made 1,124 electric loans for a total of $23.9 billion.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life in rural communities. As a venture capital entity, Rural Development has invested more than $72 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than 1.2 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA’s web site at www.rurdev.usda.gov.

— release provided by USDA News