News Update
May 27, 2009

REMINDER: Association Web Sites to go Down Beginning Friday Afternoon

The American Angus Association will be updating its computer system during the weekend of May 29 through June 1. Beginning Friday afternoon (May 29), several Association web sites will be unavailable for use. In particular, the AAA Login web site will be down the entire weekend.
Other web sites will have intermittent access available during this time. This notice includes the web sites for American Angus Association, National Junior Angus Association, Angus Productions Inc., and Angus Foundation.

Special note: National Junior Angus Show — The entry deadline and ownership deadline for the National Junior Angus Show is June 1, 2009 (postmark date). Please plan accordingly as online show entries will not be available after 4:30 p.m. CDT on May 29 due to computer system upgrades. All transfers need to be submitted prior to May 29, 2009, to ensure the work is completed. Thank you for your patience during this time of transition, and we apologize for any inconvenience.

— Notice provided by the American Angus Association.

Lighter Cattle on Feed, USDA Says

The U.S. Department of Agriculture (USDA) monthly Cattle on Feed report showed fewer cattle on feed May 1 than a year ago, and those placed on feed were lighter, reports Meatingplace.com.

According to the site, the report could mean fewer cattle ready for market by August.

USDA reported 10.8 million cattle on feed on May 1 in feedlots with capacity of 1,000 or more head — a 2.8% drop in number of cattle on feed compared to a year ago. The monthly report marked the 13th consecutive month that feedlot inventories were lower than a year ago, according to Meatingplace.com.

Economist: Gas Prices on Rise but Shouldn’t Top $3

Gasoline prices were up Memorial Day weekend, but motorists should not experience the historic highs of one year ago, said a Purdue University agricultural economist.
Pump prices traditionally rise in late May with the beginning of the summer driving season, said Wally Tyner, who specializes in energy production and policy.

“For the rest of the summer, we can expect to see gasoline prices higher than this spring, but nothing like last summer,” Tyner said. “Today, gasoline is $1.35 less per gallon than this time last year. Gasoline prices this summer likely will stay in the $2 to $3 dollar-per-gallon range and not come near the $4 seen last year.”

A combination of factors is driving gas prices higher, Tyner said.

“First, there are higher oil prices,” he said. “Crude oil is now around $60 per barrel, driven by signs of economic recovery and by violence in Nigeria — an important supplier of crude for the United States.

“In addition, the falling U.S. dollar means that much of the rest of the world is not seeing the higher crude oil prices in their own currency, so they are not seeing higher gasoline or diesel prices.”

The poor economy also is having an effect on gas prices, and could for some time to come, Tyner said.

“Even though there are ‘green shoots’ evidencing prospects for eventual economic recovery, we will continue to be in recession through the summer and into fall,” he said. “Overall demand for petroleum products is still down quite a bit, led by a decline in jet fuel demand of more than 10%. Gasoline demand had been down 3.5%, but recently demand has picked up so that we are only down about 1%, leading to higher gasoline prices.

“From December 2008 until this May, gasoline had been priced lower relative to crude oil than by historic norms. But today, even though crude oil stocks are still high, gasoline inventories are now considerably lower than historic norms. In essence, gasoline prices have now caught up with crude oil prices.”

— Release provided by Purdue University Extension.

Iowa State Makes Drastic Cuts to Extension

Iowa State University (ISU) has announced it will be implementing a plan to restructure its Extension services following drastic cuts — $4.15 million worth — in state funding for fiscal year (FY) 2010.

ISU Vice President for Extension and Outreach Jack Payne said the plan would help streamline the organization and meet state budget needs.

“The current economic downturn forces us to change the way we do business,” Payne said. Based on input from staff, council members, Extension leadership and Iowa residents, Payne said the Extension Restructuring Plan will consolidate Extension Field administration and move the organization from a geographically based structure to an issue-based model.

Five area director positions and five area offices will be closed as part of the plan, and County Extension Education Director (CEED) positions will be replaced by regional positions. Twenty-five Extension positions on campus will also be terminated.

According to Cattle Business Weekly, staffed offices will remain in all 99 counties along with 18 4-H field specialists.

“Iowa State University and Extension Councils will work together to change our methods, but not our mission,” Payne said.  “This is an innovative and bold restructuring. It meets the financial realities we are facing, and creates a flexible organization that is positioned to maintain its leadership role as one of the best Extension systems in the nation.”

The Extension Restructuring Plan can be viewed at www.extension.iastate.edu/restructuring.

FCC Report Details Strategy for Bringing Broadband to Rural America

Concluding that all rural Americans must have the opportunity to reap the full benefits of broadband services, Acting Federal Communications Commission (FCC) Chairman Michael Copps released a report today providing a starting point for the development of policies to deliver broadband to rural areas and restore economic growth and opportunity for Americans residing and working in those areas.

Recognizing that the need for broadband in rural America is becoming ever-more critical, Congress in the 2008 Farm Bill required the FCC Chairman, in coordination with the Secretary of the Department of Agriculture, to submit a report to Congress describing a rural broadband strategy. Titled “Bringing Broadband to Rural America: Report on a Rural Broadband Strategy,” the report identifies common problems affecting rural broadband, including technological challenges, lack of data, and high network costs, and offers some recommendations to address those problems.

The report includes a number of recommendations, including: enhancing coordination among and between federal, Tribal, state, and community agencies, governments and organizations; reviewing existing federal programs to identify barriers to rural broadband deployment; coordinating broadband program terminology consistent with current laws; coordinating data collection and mapping efforts at the federal, Tribal, and state levels to better inform the public and policymakers; supporting consumer education and training initiatives to stimulate and sustain broadband demand; and identifying important policies and proceedings that support further broadband deployment such as universal service and network openness. The report also recognizes that the new administration has already taken important steps to improve coordination efforts and to prioritize broadband initiatives.

In the report, Acting Chairman Copps notes that Congress has provided new direction and support for federal broadband policies and initiatives, in particular through the American Recovery and Reinvestment Act of 2009. In addition to providing $7.2 billion for broadband grants, loans and loan guarantees administered by the Agriculture and Commerce departments, that law charges the FCC with developing a national broadband plan by next February.

“I view this report as a prelude to, and building block for, the national broadband plan, which will address in greater detail and on a vastly more complete record, the input of all stakeholders and the steps the nation must take to achieve its broadband goals,” Acting Chairman Copps said in the report. The report can be found on the FCC web site at http://wireless.fcc.gov/outreach/ruralbroadband.

— Release provided by FCC.

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