News Update

News Update
March 12, 2008

Ethanol Policy Driving Meat, Poultry Prices Higher, Expert Says

U.S. ethanol policy is continuing to drive meat and poultry prices higher, according to preliminary results of an analysis by economist Tom Elam, president of Farm Econ. “You cannot use the combined grain crops of Australia and Indonesia for U.S. fuel and not have an impact on corn, soybean and food prices,” Elam said in an American Meat Institute (AMI) release. He said he expects food price inflation to rise 5% or 6% in 2009.

Elam said that he estimates the cumulative costs to the food industry of the renewable fuel program will be about $100 billion from 2005-2010.

As part of his analysis, Elam compared what has happened with what would have happened without the federal biofuels program. According to his findings, farm level corn prices in 2008 would have averaged about $2.77 per bushel (bu.) without the program. Ethanol tax credits have added $1.33 per bushel, and may drive corn more than $5 a bushel in 2009.

Approximately 76 million acres of corn would have been harvested in 2007, but the program has added 10.5 million acres, Elam said. Elam noted that as a result of the program, he estimates that this year’s costs to the broiler industry are up $3.4 billion; turkey input costs are up $646 million; swine input costs are up $2.9 billion; cattle input costs are up $2.24 billion; and dairy producer input costs are up $2.7 billion. Translated into a cost per animal, Elam estimated the costs at 53¢ per chicken; $3.40 per turkey; $38 per hog and $117.50 per fed-beef animal.

Elam offered the preview of his soon-to-be-released study at the Annual Meat Conference, March 9-11 in Nashville, Tenn.

— Release provided by AMI.

FSIS Issues Notices on Humane Handling Practices

The Food Safety and Inspection Service (FSIS or the agency) issued two new notices: Notice 16-08, “Humane Handling Activities and Documentation in Livestock Slaughter Establishments,” and Notice 17-08, “Increased Verification of Humane Handling Requirements in Livestock Slaughter Establishments.”

According to AMI, Notice 16-08 is a reissuance of Notice 14-08, providing additional information in the documentation section and instructions regarding how inspectors are to document Humane Activities Tracking System (HATS) activities. Specifically, the notice includes a new bullet that reads, “Immediately take any necessary regulatory control action to prevent continued egregious inhumane handling” for situations where there are egregious humane handling noncompliances.

Notice 17-08 announces that, as of March 10, inspection program personnel assigned to federally inspected livestock slaughter establishments are to increase significantly the time spent verifying humane handling regulatory requirements and document those verification activities in HATS. Inspection personnel are to increase their HATS activities a minimum of 50% and up to 100%, depending on the type of livestock being slaughtered. Increased HATS activities will continue until May 6. To view the notices in their entirety, visit the agency’s web site at www.fsis.usda.gov/regulations_&_policies/FSIS_Notices_Index/index.asp. 

— Release provided by AMI.

Follow Guidelines for Prescribed Burning on CRP Land

Rural landowners listen up — U.S. Department of Agriculture (USDA) Conservation Reserve Program (CRP) contracts signed since Oct.1, 2000, may require a maintenance burn during the life of the contract.

If CRP ground is burned, it can be burned any time between Feb.1 through April 15, said Walt Fick, Kansas State University (K-State) Research and Extension range management specialist. This means that CRP ground can be burned before most tall grass rangeland burning begins.

“Burning CRP early is a good way to spread out the burning season in Kansas and help prevent the concentration of smoke in April, when most pasture burning occurs,” Fick said.

When burning CRP ground, building good fireguards is essential, he said. Fireguards can either be mowed to a width of 20 to 30 feet (ft.) or disked. If the fireguard is disked, producers may have to go over the area more than once to make sure all the residue is below ground.

The two most common methods of conducting prescribed burns on CRP ground are a ring fire or a flank fire, he added.

“With a ring fire, the entire perimeter of the field, within the fireguard, is lit. Starting on the downwind side, backfires are started,” Fick explained. “The burned area is gradually widened. Eventually, the entire perimeter is lit and the fire then burns in toward the center from all sides. This results in a single large plume of smoke in the middle of the field. The advantages of a ring fire are that it requires less manpower than other methods, and it is quicker. The disadvantage is that it can trap wildlife in the field with no means of escape except flight.”

If producers want to avoid trapping and possibly killing animals in the fire, the flank fire is a good alternative.

“In this method, a series of parallel strips of fire are lit into the wind, creating a slow-moving series of backfires,” the range management specialist said. “Backfires are hotter than headfires at ground level, and provide a more complete burn of mulch. This method also allows plenty of escape routes for any wildlife living in the field.

“The disadvantages of the flank fire method are that it takes longer to complete, and requires more people to conduct and control the burn. Backfires are also generally less effective at controlling woody plants.”

Whatever method is used, one of the most important considerations when conducting a prescribed burn on either CRP or rangeland is to obtain an accurate weather forecast for the proposed day of the burn. The burn should be conducted when conditions for smoke dispersal are optimum, Fick said.

“That means there should be few clouds, with little chance of inversions. Wind conditions should be light and steady (5 to 15 miles per hour), and take the smoke away from highways, airports, or population centers,” he said.

CRP participants should check with their local Farm Service Agency (FSA) office for requirements related to prescribed burning, he added. Also, producers who burn CRP ground should follow the same general safety guidelines and go through the same permit procedures as those who conduct prescribed burns on rangeland.

More information is available on the K-State Research and Extension web site under: Prescribed Burning: Planning and Conducting (L664) at www.oznet.ksu.edu/library/crpsl2/L664.pdf, and Prescribed Burning Safety (L565) at www.oznet.ksu.edu/library/crpsl2/L664.pdf.

— Release provided by K-State Research and Extension.

Fort Dodge Animal Health Legacy Scholarship Available

The National Cattlemen’s Foundation (NCF) and Fort Dodge Animal Health announced a new scholarship program at the 2008 Cattle Industry Annual Convention last month in Reno, Nev. The Fort Dodge Animal Health Legacy Scholarship Program will consist of five scholarships of $5,000 each. Three scholarships will be directed to veterinary school students that have designated an emphasis in bovine practice. Two scholarships will be directed to junior or senior undergraduate students enrolled full-time in an animal science program with an emphasis in bovine production.

The deadline for scholarship applications is April 30. Application requirements include a biographical account of experience in the cattle industry, an essay describing a mentor in the beef industry and how that person has shaped the applicant’s life, and two letters of recommendation.

“This scholarship fits very well with the mission of the National Cattlemen’s Foundation (NCF) — providing scholarship opportunities to inspire young people to pursue careers in all phases of agriculture,” said Bob Josserand, chair of the foundation’s board of trustees. “We are most appreciative of the valuable commitment Fort Dodge Animal Health has made to young people and the National Cattlemen’s Foundation.”

Last fall, producers utilized their Fort Dodge Animal Health purchases to help support this scholarship program, in turn, helping cattle production and cattle-producing families for the next generation. By purchasing qualifying Fort Dodge Animal Health products, a contribution of 3 percent of each qualifying invoice was made to the scholarship fund. Eligible products included Cydectin® and Synanthic® dewormers, Synovex® implants, Triangle® all-killed vaccines, Pyramid® modified-live virus (MLV) vaccines, Presponse® vaccines, Prism™ killed-virus (KV)/MLV vaccines and TrichGuard® V5L vaccine.

NCF is currently accepting applications for the 2008-2009 academic year. Winners will be announced at the 2008 Cattle Industry Summer Conference in Denver, Colo., July 15-19. In addition to the scholarship, all five recipients will receive an expense-paid trip to attend the summer conference. For more information, visit www.nationalcattlemensfoundation.org or www.fortdodgelivestock.com.

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