News Update

News Update
May 29, 2008

U.S. Climate Change Science Program Releases Report

The U.S. Climate Change Science Program (CCSP) released a report Tuesday that outlined specific ways in which climate change is affecting agriculture.

The CCSP integrates the federal research efforts of 13 agencies on climate and global change. The report is one of the most extensive examinations of climate effects on U.S. ecosystems. The U.S. Department of Agriculture (USDA) is the lead agency for this report and coordinated its production as part of its commitment to CCSP.

Titled “Synthesis and Assessment Product 4.3 (SAP 4.3): The Effects of Climate Change on Agriculture, Land Resources, Water Resources, and Biodiversity in the United States,” the report was written by 38 authors from universities, national laboratories, non-governmental organizations and federal service. It underwent expert peer review by 14 scientists through a Federal Advisory Committee formed by the USDA. The National Center for Atmospheric Research also coordinated in the production of the report. It is posted on the CCSP web site at: www.climatescience.gov/Library/sap/sap4-3/default.php.

“The report issued today provides practical information that will help landowners and resource managers make better decisions to address the risks of climate change,” said Agriculture Chief Economist Joe Glauber.

The report finds that climate change is already affecting U.S. water resources, agriculture, land resources and biodiversity, and will continue to do so. Specific findings include:

Grain and oilseed crops will mature more rapidly, but increasing temperatures will increase the risk of crop failures, particularly if precipitation decreases or becomes more variable.
Higher temperatures will negatively affect livestock. Warmer winters will reduce mortality but this will be more than offset by greater mortality in hotter summers. Hotter temperatures will also result in reduced productivity of livestock and dairy animals.
Forests in the interior West, the Southwest and Alaska are already being affected by climate change with increases in the size and frequency of forest fires, insect outbreaks and tree mortality. These changes are expected to continue.
Much of the United States has experienced higher precipitation and stream flow, with decreased drought severity and duration, during the 20th century. The West and Southwest, however, are notable exceptions, and increased drought conditions have occurred in these regions.
Weeds grow more rapidly under elevated atmospheric carbon dioxide (CO₂). Under projections reported in the assessment, weeds migrate northward and are less sensitive to herbicide applications.
There is a trend toward reduced mountain snowpack and earlier spring snowmelt runoff in the Western United States.
Horticultural crops (such as tomato, onion and fruit) are more sensitive to climate change than grains and oilseed crops.
Young forests on fertile soils will achieve higher productivity from elevated atmospheric CO₂ concentrations. Nitrogen (N) deposition and warmer temperatures will increase productivity in other types of forests where water is available.
Invasion by exotic grass species into arid lands will result from climate change, causing an increased fire frequency. Rivers and riparian systems in arid lands will be negatively affected.
A continuation of the trend toward increased water use efficiency could help mitigate the effects of climate change on water resources.
The growing season has increased by 10 to 14 days during the last 19 years across the temperate latitudes. Species’ distributions have also shifted.
The rapid rates of warming in the Arctic observed in recent decades, and projected for at least the next century, are dramatically reducing the snow and ice covers that provide denning and foraging habitat for polar bears.

USDA agencies are responding to the risks of climate change. For example, the Forest Service is incorporating climate change risks into National Forest Management Plans and is providing guidance to forest managers on how to respond and adapt to climate change. The Natural Resources Conservation Service (NRCS) and Farm Services Agency (FSA) are encouraging actions to reduce greenhouse gas emissions and increase carbon sequestration through conservation programs. USDA’s Risk Management Agency has prepared tools to manage drought risks and is conducting an assessment of the risks of climate change on the crop insurance program.

For more information visit:

http://www.usda.gov/oce/global_change/

http://www.climatescience.gov/Library/sap/sap4-3/default.php

http://www.sap43.ucar.edu/.

— Adapted from a release provided by USDA.

S. Korea to Resume Imports

South Korean government officials announced today they’re going ahead with plans to resume imports of U.S. beef.

Amid ongoing protests, Agriculture Minister Chung Woon-chun announced the government has finalized new quarantine regulations for U.S. beef and trade will proceed, according to The Associated Press (AP).

Now customs officials will inspect 5,300 tons of U.S. beef waiting in the wings to be put on the market sometime within the next few days. Meanwhile, police in the capital city of Seoul anticipate approximately 10,000 protestors to gather tonight following today’s announcement.

National Beef to Reduce Output

National Beef Packing Co. plans to reduce the cattle harvest at three plants starting this week as rising costs erode profit, according to Bloomberg News.

Operations at plants in Liberal and Dodge City, Kan., and Brawley, Calif., will be reduced to five days a week from six, cutting the harvest weekly rate by 15,000 head of cattle, Kansas City, Mo.-based National Beef said. The company’s daily capacity was 13,900 head in 2007, based on estimates by industry magazine Cattle Buyers Weekly.

Profit margins for National Beef, the fourth-largest U.S. meatpacker, have fallen after the cost of cattle rose faster than the price of beef, spokesman Keith Welty said. Meatpackers including Tyson Foods Inc. had increased capacity too much in past years, while cattle and beef exports haven’t kept pace, according to JBS Chief Executive Officer (CEO) Joesley Batista, who agreed in March to acquire National Beef for about $560 million. The purchase by the Brazil-based company awaits U.S. antitrust approval

JBS reported its third quarterly loss earlier this month, citing record prices for corn and soybeans used as animal feed that boosted the cost of raising animals to harvest weight. Cattle futures have gained 11% in the past year, while wholesale beef is unchanged, government and exchange data show.

Production cuts and increasing demand for U.S. beef in Russia and Asia will help revive profit in the industry, Batista said.

— Adapted from an article provided by Bloomberg.

Veterinary Scholarships in High Demand

In its inaugural year, the Fort Dodge Animal Health Legacy Scholarship received 158 scholarship applications from students across the country, according to the National Cattlemen’s Foundation (NCF).

The new scholarship program was announced at the 2008 Cattle Industry Annual Convention and NCBA Trade Show in Reno, Nev. Made possible by Fort Dodge Animal Health and administered by NCF, five scholarships of $5,000 each will be awarded at the Cattle Industry Summer Conference, which will be July 15-19 in Denver, Colo. In addition to the scholarship, all five recipients will receive an expense-paid trip to attend the conference.

In the veterinary scholarship award division, 110 scholarship applications from 29 veterinary schools from across the country were submitted. To be eligible for the award, the student must have designated an interest in bovine practice. In the undergraduate division, 48 applications were submitted from 28 colleges or universities from across the country. These applicants are vying for the opportunity to be selected for one of two scholarships that are directed to junior or senior undergraduate students enrolled full-time in animal science programs with an emphasis in bovine production.

“We are extremely pleased with the number of applicants for these scholarships,” said Bob Josserand, chair of the foundation’s board of trustees. “The number of applicants represents the great demand for educational assistance and the interest that our young people have in veterinary bovine practice and production.”

— Release provided by the NCF.

Southeast Ranch Opens New Alfalfa Compressing Plant in Lincoln, Neb. 

Southeast Ranch, Lincoln, Neb., is opening a new alfalfa hay compressing plant.

Southeast Ranch is a large-scale cattle ranching and hay-exporting operation headquartered near Miami, Fla. According to company President Joel Gutierrez, the 341,000 square-foot (sq. ft.) Lincoln facility will be operational by the end of May and will provide expanded access to world markets for alfalfa producers in the region. The facility is a former Ace Hardware distribution center. This is the company’s second such facility. The other is located in Rapid City, S.D.

Alfalfa hay compressed at the plant will be loaded on rail cars and shipped to a port in Jacksonville, Fla., for ocean shipment to customers in Europe, the Middle East and elsewhere. Southeast Ranch has been compressing and shipping alfalfa hay for about two years to markets outside the U.S. but on a smaller scale. Alfalfa that is purchased is preferred to be no more than 15% moisture, a minimum of 16% protein, 22% crude fiber, 10.5% ash and 2.5% fat. Hay must be green in color. According to Southeast Ranch, selling to the operation offers growers distinct advantages. Prices offered are competitive prices with other options, and payments made within 21 days following inspection, testing and weighing. Half of the agreed-upon price is paid up front before the hay leaves the farm. Small square, large square and round bales can all be accepted, and the company provides trucks and loading (within 250 miles of Lincoln, Neb., and Rapid City, S.D.)

In many cases, alfalfa hay can be purchased out of the field, reducing handling and storage costs for growers.

Southeast Ranch is willing to buy the entire production of a farm, it reports.

Southeast Ranch expects to buy most of its alfalfa hay within 250 miles of Lincoln and Rapid City, a region including parts of Colorado, Kansas, Montana, North Dakota, Nebraska, South Dakota and Wyoming. Alfalfa hay from other areas will also be accepted for purchase, but the seller will have to arrange for trucking. Purchases are limited to a minimum of one semi-trailer load.

Southeast Ranch LLC is currently buying hay through both plants. Growers wanting more information should go to www.seranch.com or contact the company via phone at 1-877-350-2690; fax, 904-350-2691; or by email at info@seranch.com.

— Release provided by Southeast Ranch.

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