News Update

News Update
Feb. 14, 2008

USDA Releases Long-Term Projections

The U.S. Department of Agriculture (USDA) released new 10-year agricultural projections yesterday, titled “USDA Agricultural Projections to 2017.”

Available at www.usda.gov/oce, the report provides the agency’s annual long-term projections used to develop federal budget estimates. The projections cover agricultural crop and livestock commodities, ag trade and aggregate indicators through 2017.

The agency’s Economic Research Service (ERS) led preparation of the report, also available at www.ers.usda.gov.

NCBA Members Elect Officers, Debate Policy Issues at Annual Convention

Members of the National Cattlemen’s Beef Association (NCBA) conducted their board of directors meeting and annual membership meeting Feb. 9 during last week’s 2008 Cattle Industry Annual Convention and NCBA Trade Show in Reno, Nev.

According to NCBA, cattlemen debated a number of important policy issues, but enhancement of the Beef Checkoff Program drew the most interest and discussion. The $1 per head checkoff — split 50-50 between the national checkoff program and the state beef councils — became mandatory in 1986. While the checkoff has enjoyed many successes, some cattlemen are questioning whether it is still adequately funded.

“Twenty plus years of inflation have really eroded the beef checkoff’s ability to fulfill all the expectations we have placed on it over the years,” said NCBA President John Queen, a cattleman from Waynesville, N.C. “And increases in beef production have come primarily from higher cattle weights, rather than herd expansion. That’s another reason revenues don’t keep up with the industry’s needs. We’re producing more beef, but the revenue we need to market it doesn’t keep pace.”

Cattlemen directed NCBA to ask Congress to approve a process that will allow producers to vote on enhancements to their Beef Checkoff Program.

“All we’re asking Congress to do is empower cattle producers with a referendum process, so they can control the destiny of their checkoff,” said incoming NCBA Policy Division Chairman Bill Donald, a rancher from Melville, Mont. “Producers will decide whether to increase the checkoff assessment, but this will put the procedure in place that allows them to do that.”

NCBA members declined to ask for a specific increase in the checkoff rate, but did request that Congress ensure that the program is adequately funded.

“The sense of the cattlemen at this convention is that $2 per head (a $1 increase) would adequately fund the program at this point in time,” Donald said. “But that can change over time, which is why we didn’t include a specific rate in today’s resolution.”

For the most part, NCBA members maintained their policy on other major agricultural issues. With regard to renewable fuels, NCBA continues to favor a sunset of the 54¢ tariff on imported ethanol and the 51¢-per gallon fuel blending tax credit. These programs are set to expire in 2009 and 2010, respectively. NCBA members adopted a policy last year requesting that Congress not extend these subsidies beyond their current time frame.

NCBA still supports a voluntary, market-based approach to animal identification (ID). But member policy was updated to recognize the legitimate benefits premises registration numbers can provide in meeting animal health emergency requirements — as long as they do not impede normal cattle movement.

In response to a number of recent food safety incidents, members reaffirmed their existing policy calling for NCBA to work with all segments of the beef industry, as well as government officials, to reduce the prevalence of E. coli O157:H7. This policy also calls for NCBA to seek the regulatory approvals necessary to implement sound safety practices across the industry.

Cattlemen also adopted policy expressing support for several educational and financial aid programs that will help address the nation’s growing shortage of large animal veterinarians.

All policies adopted are now subject to approval by more than 30,000 NCBA members nationwide.

For the latest news, summaries, audio, video and complete coverage of the 2008 Cattle Industry Convention and NCBA Trade Show, visit Angus Productions Inc.’s (API’s) web site www.4cattlemen.com. More information regarding NCBA policy and initiatives can be found at www.beefusa.org.

— Information provided by NCBA.

CBB Names New Chairman

The Cattlemen’s Beef Board (CBB) elected Dave Bateman to serve as its new chairman.

Bateman, a fourth-generation cattleman from Oregon, Ill., embraces change and sees it as a stepping-stone to greater things to come, according to a CBB release.

Since his nomination to the CBB by beef organizations in Illinois and his appointment by the U.S. Secretary of Agriculture in 2000, Bateman has served in various leadership positions in agricultural industries, beginning as a director of county affiliate organizations and continuing through state and national service on committees, committee chairmanships and officer positions and most recently as CBB vice chairman. Among others, Bateman is a past president of the Kane County Corn Growers Association, the DeKalb/Kane Cattlemen’s Association, the Illinois Beef Association and is a long-time member of the Illinois Livestock Advisory Board of Commissioners.

Producers to Receive 2007-Crop-Year Counter-Cyclical Payments

U.S. Secretary of Agriculture Ed Schafer announced Feb. 9 that USDA will soon begin issuing about $315 million in partial 2007-crop-year counter-cyclical payments (CCPs) for producers with upland cotton and/or peanuts base acres enrolled in USDA's Direct and Counter-cyclical Program (DCP). The 2002 Farm Bill authorizes preliminary partial payments for the 2007 crop to be made six months after the start of the marketing year, which began Aug. 1, 2007, for these commodities. Preliminary payments must be refunded if full-year price calculations result in a lower payment rate.

USDA estimates producers with enrolled upland cotton and peanuts base acres will receive $300 million and $15 million, respectively, in partial CCPs. The 2007-crop-year projected partial payment rates, equal to 40% of the projected amount, are $0.0309 per pound for upland cotton and $7.60 per short ton for peanuts.

Visit www.usda.gov for further information, payment time frames and more.

ERS Releases Other Forecast Data

ERS released data Feb. 8, providing a futures-price forecasting model, supply and demand estimates and outlook.

A futures-price forecasting model is used to provide season-average price forecasts for corn, soybeans and wheat. In addition to the monthly forecasts for prices received, the model computes a forecast for the counter-cyclical payment rate for each commodity. The 2002 Farm Act provides for counter-cyclical payments when prices are below specified levels.

See www.ers.usda.gov/Data/PriceForecast for complete results.

Issued monthly, World Agricultural Supply and Demand Estimates (WASDE) provides the most current USDA forecasts of U.S. and world supply-use balances for major grains, soybeans and products, and cotton, and U.S. supply and use data for sugar and livestock products.

Visit www.usda.gov/oce/commodity/wasde/ for more information.

Statistical Indicators previously published in Agricultural Outlook addressing a broad spectrum of agriculture-related issues include commodity and food prices, general economic indicators, government program expenditures, farm income estimates and trade and export statistics.

Visit www.ers.usda.gov/Publications/AgOutlook/AOTables/ for complete details.

— Information provided by ERS.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.