News Update
Dec. 22, 2008

Former Iowa Governer Named U.S. Ag Secretary

President Elect Barack Obama appointed former Iowa Gov. Tom Vilsack yesterday as U.S. secretary of agriculture. During his two terms as governor, the 58-year-old Vilsack was a strong supporter of ag biotechnology and renewable fuels. He also worked toward strict regulation of confined animal feeding facilities, particularly hog operations. Vilsack is an attorney.

National Cattlemen’s Beef Association (NCBA) leaders expressed appreciation for Obama appointing someone with the ag credentials of Vilsack. The beef group has remained in close contact with the Obama team throughout the campaign and the transition period. Obama team members have assured NCBA decisions will be based on sound science and will consider any potential economic impact.

“We are eager to begin working with Gov. Vilsack and the Department of Agriculture on our priority issues for 2009, including expanding trade, enhancing food safety and leveling the playing field for food and fuel markets,” a statement from NCBA said.

Also yesterday, Obama named U.S. Sen. Ken Salazar of Colorado as secretary of interior. He will be responsible for grazing and energy exploration on public lands, among other things. Salazar comes from a ranching background and is a former Colorado attorney general.

— Adapted from a release from NCBA.

Monthly Cattle on Feed Report Out

The key numbers in the U.S. Department of Agriculture (USDA) monthly Cattle On Feed report, released Friday afternoon, were very close to analysts’ pre-report estimates. The trade is calling the report neutral — and for good reason.

There were 11.345 million cattle on feed in feedlots with capacities of 1,000 head or more as of December 1. That is 6.2% lower than one year ago and almost precisely the number expected, on average, before the report. November placements numbered 2.015 million head, 5.2% fewer than last November’s 2.125 million head. That number is only 1% higher than the average of pre-report estimates. Fed cattle marketings in November were 9.4% lower than last year’s figures, numbering 1.575 million head. That number is 1.8% higher than analysts expected.

One key factor in the magnitude of year-over-year comparisons for November is that November 2008 has only 19 working weekdays, Two fewer than did November 2007. That’s a 10% change in “opportunity time” for feeders and packers.

November marks the fourth straight month and the eighth month in 2008 in which feedlot placements have been lower than in 2007. December 1 was also the sixth straight month in which U.S. feedlot inventories have been lower than in 2007 — and the shortfall from year-ago numbers was larger this month than in any of the previous five. Placement weights remained well above year-ago levels again in November but the increase was the smallest since the significant increase that occurred in August following record-high corn prices.

We remain concerned about two supply issues. First, feeding regimens revolve around days on feed to reach a desired level of finish and, hopefully, percentage of cattle that will grade USDA Choice. So, big cattle going in to feedyards almost always means big cattle coming out. Expensive feed will obviously mitigate these potentially heavier weights but will likely reduce the number of Choice cattle and increase the number of Select — driving the Choice-Select price spread wider in the spring.

Our second concern is that the July inventory of steers, bulls and non-replacement heifers was only fractionally lower than one year ago and cumulative placements since July are now 5% (545,000 head) Lower than last year. Fewer Canadian feeder cattle account for only 65,565 (12%) of that number so more than 479,000 fewer head of U.S. cattle have been placed. If the July number was right, the rest of those cattle have to show up sometime, do they not? Or perhaps placements are right and the July number was big?

Enid Stocker Receiving Management Conference Set for January

Stocker cattle operators looking to make the best possible business decisions can pick up practical management tips by attending the Oklahoma Cooperative Extension Service’s Stocker Receiving Management Conference on Jan. 21.

The conference will take place at the Chisholm Trail Pavilion, located at 111 W. Purdue on the Garfield County Fairgrounds in Enid. Conference sessions will begin at 9 a.m. and will finish at approximately 6 p.m.

Cost is $20 per person to attend the conference. Lunch will be provided at no extra charge.

“The conference is a great opportunity for stocker operators to interact with nationally recognized speakers and instructors,” said Greg Highfill, Oklahoma State University Cooperative Extension area livestock specialist. “We’re asking everyone to preregister to help ensure we have sufficient numbers of lunches and refreshments on hand.”

To preregister, contact Highfill by e-mail at greg.highfill@okstate.edu, by phone at 580-237-7677 or by fax at 580-242-1955.

“People can still pay at the door if pre-payment is not convenient, but it really helps if we know how many folks will be attending,” Highfill said.

The conference will primarily focus on three major facets facing stocker operators today: stocker health management, stocker cattle business issues and practical techniques for reducing animal stress during cattle handling.

Dan Thomson, Kansas State University (KSU) veterinarian and director of the KSU Beef Cattle Institute, will lead the stocker health session. Subjects will cover management issues that should be addressed with every load of calves, key steps to ensure receiving success, addressing animal welfare and factors that affect overall animal health, among others.

The stocker cattle business session will be led by Derrell Peel, OSU Cooperative Extension livestock marketing specialist. Primary points of discussion will be making good cattle market business decisions in turbulent times and what producers should be doing relative to Country of Origin Labeling (COOL) requirements.

Cattle handling and behavior experts Curt Pate of Helena, Mont., and Ron Gill of Stephenville, Texas, will lead discussions on the use of position, distance, angles and speed to communicate with cattle; teaching cattle to respond in a positive manner; pulling single cattle; removing cattle from pens or pastures; and training horses for low-stress handling of cattle, among others.

Pate also will conduct a live animal demonstration in the arena as a part of the afternoon presentation.

Anyone seeking additional information about the Jan. 21 stocker conference should contact Highfill by e-mail at greg.highfill@okstate.edu or by phone at 580-237-7677.

— From an Oklahoma State University Agricultural Communications Release.

— compiled by Mathew Elliott, assistant editor, Angus Productions Inc. (API)