News Update
Oct. 16, 2009

American Angus Association to Run Weekly Carcass Evaluation

The American Angus Association® has issued its first release of genomic-enhanced expected progeny differences (EPDs) for multiple carcass traits, now available at www.angus.org through AAA Login or the EPD/Pedigree lookup.

In an industry first, the updated National Cattle Evaluation (NCE) carcass trait EPDs are scheduled for weekly release and incorporate available breed-specific DNA profile results from the Igenity® Profile for Angus in addition to all pedigree and performance information.

Through the use of new technologies, Angus NCE EPDs can be provided across the complete performance database for carcass traits, encompassing nearly 2 million animals. Genomic, carcass and ultrasound databases can be used to calculate NCE EPDs each week for Angus breeders and industry allies.

The process bypasses the need for interim procedures on animals with genomic profile results and speeds the information exchange for newly arriving ultrasound and carcass data received at the Association.

Visit www.angus.org to access the NCE genomic-enhanced EPDs for carcass traits. For more information call the Association at 816-383-5100 or e-mail AHIR.

A Winning Hand: 4NCGL in Reno

The schedule is set and enthusiasm is high for the Fourth National Conference on Grazing Lands Dec. 13-16 at the Nugget Casino Resort in Reno-Sparks, Nev. The event, which is sponsored by the Grazing Lands Coalition Initiative (GLCI) along with the Society for Range Management, will feature presentations from producers and grazing management experts for all species of livestock from across the country.

The conference will get under way Sunday, Dec. 13, with regional GLCI meetings in the afternoon and an Exhibitor’s Trade Show reception that evening.

Monday, Dec. 14, National GLCI Chair Bob Drake will offer introductory remarks and U.S. Secretary of Agriculture Tom Vilsack and Department of Interior Secretary Ken Salazar have both been invited to address the conference.

Concurrent workshop sessions will take place throughout Monday and Tuesday, and Wednesday morning Dec. 16. Speaker highlights include:

• Missouri grazier and author Greg Judy, discussing “The benefits of holistic, high-density grazing;”
  
• University of Nebraska holistic grazing management specialist Terry Gompert, discussing “The power of stock density;”
  
• Don Ball and Garry Lacefield, both University forage specialists, discussing “Forage management that beats the odds;” and
  
• Animal behavior specialist Darrell Emmick discussing “Foraging behavior and diet selection in the grazing dairy cow.”

Additionally, presentations on grazing with goats, focusing on legumes, rotational grazing management and much more are on the schedule.

An evening banquet will take place Monday, Dec. 14, featuring cowboy entertainer Dave Stamey. Cowboys and Indians Magazine has called him “the Charley Russell of Western Music.” Stamey has been a cowboy, a mule packer, a dude wrangler, and is now one of the most popular Western entertainers working today. Tickets for the event can be purchased when registering for 4NCGL. For more information or to register for the conference visit www.glci.org.

— Release by GLCI.

Economist: Cattle Producers Should Consider Retained Ownership

Recent rainfall has been beneficial to Texas small-grain pastures, and cattle producers may want to weigh their options when marketing calves in 2010, according to a Texas AgriLife Extension Service economist.

There’s potential for increased profit margins if cattle producers consider retained ownership ventures, said Jose Pena, AgriLife Extension economist in Uvalde in his recent economic report.

“Relatively weak wheat prices in relation to recent highs may mean that wheat farmers may prefer to graze small grains this winter/spring,” he said. “Abundant supplies of small-grain pastures may be available this spring.”

He said current cattle market prices suggest that retained-ownership enterprises this fall/winter may be profitable. Retained ownership bypasses the traditional marketing of calves at local auction facilities, opting to place calves on winter pasture for added gain through a contract.

Pena said cattle-gain contracts on small grains last fall was approximately 45¢ to 55¢ per pound of gain. However, since then prices for energy and fertilizer have decreased as have wheat and corn prices.

Pena said that when considering retained ownership, carefully consider the risks involved.

“High production and market vulnerability risks indicate that retained-ownership enterprises will require careful planning, monitoring and a review of alternatives,” he said. “Alternatives include comparing the value of calves now versus the potential additional profits from retaining owned calves, or buying calves to carry through the stocker/feeder phase on native, small-grain or ryegrass pastures and/or feedlot.”

Meanwhile, beef inventory numbers are declining. Prices could improve as confidence in the economy is restored, according to Pena. U.S. cattle inventory on July 1 decreased 1.5 million head from July 2008. The 2009 calf crop is estimated at 35.6 million head, down 513,000 head from a calf crop of 36.1 million in 2008 and down 1.76 million head from a calf crop of 37.4 million head in 2007.

“Feeder supplies will remain in short supply unless feeder-cattle imports from Mexico increase,” Pena said. “Scarce supplies of cattle will keep a base support for prices, especially for feeder cattle ready to enter feedlots as feedlots are operating below capacity.”

The USDA Cattle on Feed report indicated an inventory of 9.8 million head on feed Sept. 1, down 1.2% from 9.9 million head Sept. 1, 2008, and down 4.1% from two years ago.

“Cattle marketings as of the end of August were down 4.1% from a year ago to the lowest fed-cattle marketing since the series began in 1996,” Pena said.

With stronger cattle prices, retained ownership or buying stocker calves this fall “will provide an opportunity to add value to the calves through additional gain from relatively manageable forage or cost of gain through a feedlot,” Pena said.

To reduce price risk, Pena said a price floor for steers could be set by selling a feeder-cattle futures contract or buying a put option (option to sell a futures contract).

“A put option contract with a strike price of 99¢ per pound with a May 2010 delivery date would cost about 4.2¢ [per] pound,” he said.

After option costs and commissions are deducted, Pena said a price base of 95¢ per pound could be set with a May 2010 put options contract.

For more on retained ownership strategies, visit the AgriLife Extension Bookstore at agrilifebookstore.org and view publication L-5246, Retained Ownership Strategies for Cattlemen.

— Release by Blair Fannin, Texas AgriLife Extension Service.

Extension Southwest Cow-Calf Conference set for Dec. 4 in Duncan

Cattle producers in and around southwestern Oklahoma looking to get the most out of their cow-calf operations should register now to attend the Oklahoma Cooperative Extension Service’s Southwest Cow-Calf Conference Dec. 4 in Duncan.

“Conference sessions will focus on the latest management tools available to cow-calf producers, with the goal of helping them make decisions that promote the best possible outcomes for their operations,” said Bob LeValley, Oklahoma State University (OSU) Cooperative Extension area livestock specialist.

The conference will take place from 8:45 a.m. to 2:30 p.m. at the Stephens County Fair and Expo Center, located at 2002 S. 13th St. in Duncan. Cost is $10 per participant.

Registration forms are available through OSU Cooperative Extension county offices in the Southwest District or through the OSU Beef Extension web site at http://beefextension.com/ on the Internet.

Ryan Reuter of the Samuel Roberts Noble Foundation will kick off the conference with a session on utilizing commodity feeds in a winter-feeding program. Reuter will share how and where commodity feeds fit in an operation from a nutritional and economic perspective, as well as special handling considerations.

Glenn Selk, OSU Cooperative Extension livestock specialist, will discuss issues related to choosing a calving season that best fits operational needs and the markets a producer wishes to target.

David Lalman, OSU Cooperative Extension beef specialist, will show how to match the cow herd to available forage and production resources, including information on the ways beef cattle industry trends continually influence cow type and potential impacts on profitability.

Derrell Peel, OSU Cooperative Extension livestock marketing specialist, will showcase the current market situation and outlook with a focus on calf prices and cull cows.

Daren Redfearn, OSU Cooperative Extension forage specialist, will lead a discussion on Bermuda grass fertility and management considerations as they relate to the potential profitability of cow-calf operations. Estimating stocking rates for Bermuda grass and native range also will be a focus of the session.

A trade show will take place in conjunction with the Dec. 4 conference.

Anyone interested in additional information about the Southwest Cow-Calf Conference should contact LeValley at 580-255-0546.

— Release by Oklahoma Cooperative Extension Service.

EXTRA Scheduled for Tuesday Delivery

The October edition of the Angus Beef Bulletin EXTRA is scheduled to be delivered Tuesday, Oct. 20. If you haven’t signed up to receive this electronic newsletter, delivered by e-mail, send your request to be signed up to Editor Shauna Hermel by Monday.

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