News Update
April 9, 2009

ACRE Program Enrollment Opens April 27

Agriculture Secretary Tom Vilsack announced today that producers can elect and enroll in the Average Crop Revenue Election (ACRE) program beginning April 27, 2009. ACRE is a provision of the 2008 Farm Bill.

“The Average Crop Revenue Election program is an innovative alternative to the traditional farm safety,” Vilsack said. “This new option presents an opportunity for producers to review both programs and decide which one will work best for their operation.”

Producers have until Aug.14, 2009, to make their decision for the 2009 crop. The U.S. Department of Agriculture (USDA) will not accept any late-filed applications.

Producers who elect the ACRE program for a farm agree to:

• forgo counter-cyclical payments;
  
• accept a 20% reduction of the direct payments; and
  
• accept a 30% reduction in loan rates for all commodities produced on the farm.
  

Commodities eligible for ACRE payments are wheat, corn, grain sorghum, barley, oats, upland cotton, long grain rice, medium and short grain rice, peanuts, soybeans, sunflower seed, canola, flaxseed, safflower, mustard seed, rapeseed, sesame seed, crambe, dry peas, lentils, small chickpeas and large chickpeas.

The ACRE program was created in the 2008 Farm Bill to give producers an option in lieu of traditional counter-cyclical payments. Producers may elect and enroll in ACRE for the 2009 crop year even if they have already accepted advance direct payments under the Direct and Counter-cyclical Program.

To elect ACRE for a farm, producers must complete Form CCC-509 ACRE, which irrevocably elects ACRE for the farm through crop year 2012. Form CCC-509, the contract to participate in ACRE, must then be completed each year the producer intends to participate and receive benefits.

For more information about the ACRE program please visit your local Farm Service Agency (FSA) county office or visit http://www.fsa.usda.gov.

— Release provided by USDA.

FDA delays final feed rule

The Food and Drug Administration (FDA) this week announced a delay in the implementation of the final rule, titled “Substances Prohibited from Use in Animal Food or Feed,” or more commonly referred to as the 2008 BSE (Bovine Spongiform Encephalopathy) final rule.

The final rule, which would have gone into effect on April 27, is now delayed 60 days to June 26. The agency is taking this action in response to comments from affected parties expressing concerns about their ability to fully comply with the rule by the April 27 effective date. In addition, some affected parties are finding it difficult to identify appropriate alternate ways of disposing of material that may no longer be rendered for animal feed use once the rule takes effect.

Citing concerns that the enhanced ban goes beyond what is dictated by existing research to prevent the spread of BSE, National Cattlemen’s Beef Association (NCBA) spokesperson Elizabeth Parker said that the rule has created several unintended consequences.

“This rule has essentially ended rendering services in many parts of the country and left producers with no legal alternatives,” Parker said. “These are 1,200-pound animals. It is unrealistic and simplistic to think that producers can dispose of them in their backyards. The environmental and economic consequences are enormous, and FDA has the responsibility to consider those concerns before implementing this rule.”

— Release provided by Drovers news staff.

K-State Research Shows Potential in Feeding Cull Cows

Deciding which cows to cull from the beef herd is a decision that all producers make from time to time. Recent studies by Kansas State University (K-State) scientists indicate that once the decision is made, it may be worth a producer’s time and money to keep those cows a bit longer before sending them off to market.

K-State scientists found that by putting cows on concentrated feed for 70 to 90 days before sending them to market, much like younger heifers and steers in feedlots, producers can add enough value to the animal to make the practice economically worthwhile, depending on the price of feed and the market for cows.

“This practice is not real prevalent,” said Michael Dikeman, meat scientist with K-State Research and Extension. “That’s why we think that there may be some lost opportunities out there.”

Dikeman, along with meat science specialist John Unruh, coordinated the efforts of research teams that included beef cattle specialist John Jaeger, meat science graduate students, and other faculty members.

The team presented their findings at the 2009 K-State Cattlemen’s Day in early March.

“The cows in one study netted nearly $172 per head, after considering purchase price, feed, supplements, trucking, check-off and yardage costs,” Dikeman said. “In this study, the value of the cull cows was increased from $54.50 per 100 pounds to $77.00 per 100 pounds. The cost of gain averaged $80 per 100 pounds.”

Two studies were conducted at K-State’s Western Kansas Agricultural Research Center at Hays. In the first, 60 cows were split into equal number groups, each with different feeding scenarios for 70 days.

In the other study, 60 cows were separated into 12 pens, holding five cows each. The cows were four- to nine-year old Angus crossbreds. All were implanted with Revalor-200® (developed to enhance weight gain and feed efficiency). Each was fed a high-energy diet, and assigned one of four treatments.

“One thing about feeding a high concentrate diet is that with cows you can step up the diet to a high concentrate ration one to two weeks more quickly than you can with younger steers and heifers,” Dikeman said. “A cow’s rumen physiology is more mature and can handle higher concentrations of feed more quickly.” 

In addition, cows that have been on grass or roughage only diets have yellow fat, which is not acceptable to most beef consumers. Putting cows on feed 70 to 100 days changes a cow’s fat to a white color, resulting in what the industry calls a “white cow.” The muscle takes on a more attractive color that is more typical of grain-fed animals and the marbling fat that the animal puts on makes the meatmore tender and juicy.

“What we found across these studies,” Unruh said, “was that implanted-plus-grain and implanted-plus-Zilmax® plus grain should increase total gain, hot carcass weights, dressing percent, ribeye area, and total subprimal weight compared to grass-fed cows.”

“By doing this, and especially keeping in mind the current economic climate and new uses for certain cuts of beef, we can add value to some of those cuts that otherwise would end up as ground beef, bologna, or other processed meats” Dikeman said.

The animal scientist warned, however, that producers should be mindful of feed prices and seasonal trends in cow prices. March through August is when cow prices tend to be higher, he said.

Dikeman also cautioned that Zilmax® currently is only approved to feed to steers and heifers in feedlot finishing rations and Intervet Inc. controls sales to be used only for steers and heifers. Experiments such as the two K-State studies are needed to determine if approval will come for cows. Revalor-200® can be used in any age cattle; Optaflexx™ can be purchased for diets of any age cattle, although the label does not state its use for cows.

The researchers also said that if a producer intends to feed cull cows before marketing them, they should make sure they have an interested buyer before going through the process.

“We recommend that producers establish a market before they feed the cows,” Dikeman said. “You’ve got to have a processing plant that is interested in ‘white’ cows that will produce higher quality beef than the average cull cow. If you don’t have an arrangement worked out ahead of time, and you just take the cows to auction like you normally would, these cows might get lost in the shuffle.”

— Adapted from a release provided by K-State Research and Extension.

The American Angus Association and Angus Productions Inc. will be closed tomorrow, April 10, in observance of Good Friday.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.