News Update
Oct. 27, 2009

Traits Correlated With Grid Premiums
When you get a bonus on grid cattle, sometimes it’s easier to count your blessings than to ask why.

But Tom Brink, senior vice president for Five Rivers Cattle Feeding, says taking a look at discounts and premiums can help you get more of the latter. Tapping into their database, Brink analyzed more than 300,000 cattle records for correlations with grid components. The results are based on a handful of value-based marketing options that mirror those popular in the industry.

“Southern” cattle sold in Kansas and Texas were compared to “northern” cattle in Colorado and Nebraska to show regional differences. Read more…

Six NJAA Members Receive National FFA Proficiency Awards

Caroline Bremer, Illinois, Agricultural Communications – Entrepreneurship/Placement

Caroline Bremer has always had a passion for agriculture. It is this passion that has fueled her desire to inform the public about the importance of agriculture and the National FFA Organization. During her freshman year, she joined the high school newspaper staff and wrote all the articles related to FFA.

The Vienna FFA chapter member also interns at the Illinois state farm, as well as with the Illinois Farm Bureau and RFD Radio. Supported by her parents, Jeff and Lisa Bremer, along with her advisor Bill Fairless, this FFA member continues to work tirelessly to share agriculture information with the community.

Brodie Poppino, Oklahoma, Equine Science – Entrepreneurship

Brodie Poppino of Oklahoma grew up watching his mom ride and train horses for other people. It was a talent that the Adair FFA member wanted to pursue as well. Today, he breaks and trains horses for the roping events of rodeo and horse shows. He trains horses for a certain period of time, depending on the owner’s needs. Learning how to run a business and be successful in this competitive field, Poppino plans to continue in the industry. He is supported by his parents, Marty and Tana Poppino, as well as his FFA advisors, Devin DeLozier and Josh Davis.

Austin Perry, California, Beef Production – Entrepreneurship

As soon as he was old enough to hold a rope halter, Austin Perry of California remembers working with his family’s cattle. Currently the Clovis FFA member’s own herd consists of 38 registered purebred Angus and Charolais cows and heifers. He also raises show cattle and spring-calving cows. Through the Angus and Charolais junior breed associations, he has been able to make contacts, which have helped him in the marketing of his cattle. He is supported by his parents, Randy Perry and Susan Henderson-Perry, as well as his FFA advisors, Mrs. Henderson-Perry, Mr. Dias, Mr. Woodard, Mr. Actis, Ms. Jones and Mrs. Valdez.

Tyler Loschen, Illinois, Diversified Crop Production – Entrepreneurship

Tyler Loschen has always loved farming. In fact, the Illinois resident would look forward to each Christmas with anticipation, as he knew he’d have new components for his toy farm set. Now, agriculture isn’t just a toy farm set for the Tri Point FFA member, it’s reality. His crop enterprise began his freshman year, with the renting of 20 acres, and then expanded when neighbors rented their 160 acres to him. He is constantly expanding his operation, and it currently involves alfalfa, soybeans and corn. He is supported by his parents, Gary and Diana Loschen, who also serves as his FFA advisor.

Kassandra Pfeiffer, Oklahoma, Beef Production – Placement

The beef cattle industry has been a driving force in Kassandra Pfeiffer’s life for as long as she can remember. The Mulhall-Orlando FFA member has grown up in a family that has operated a registered Angus cattle operation. She has always worked around cattle, which has allowed her to learn about the industry. As the industry continues to progress, the Oklahoma resident is able to continue to expand her knowledge base. She is supported by her parents, Jerry and Aida Pfeiffer, as well as her FFA advisor, Allen Miller.

Josh Goff, Oklahoma, Equine Science – Placement

Growing up in rural Oklahoma, Josh Goff has always loved livestock. Horses have specifically held a special place in the Woodward FFA member’s heart. In 2006, he was able to go to work for Cudd Quarter Horses LLC. It was here where he has been able to see what it takes to work and manage a successful horse ranch. He began with the simple lower tasks such as cleaning stalls and feeding horses. Today, he rides and trains horses, cares for sick or injured animals and assists with the annual breeding process. He is supported by his parents, Tim Goff and Shelly Johnson, as well as his FFA advisors, Dallas Krout and Galen McCune.

— From a release by FFA.

NCBA Continues to Call for Death Tax Reform

The National Cattlemen’s Beef Association (NCBA) is continuing to urge Congress to pass legislation providing additional relief and permanency in the tax code for America’s farmers, ranchers and other small business owners. As part of these ongoing efforts, NCBA is supporting H.R. 3905, the Estate Tax Relief Act of 2009, introduced last week by Congresswoman Shelley Berkley (D-Nev.), along with Representatives Kevin Brady (D-Texas), Devin Nunes (R-Calif.), and Artur Davis (D-Ala.). During a 10-year period, H.R. 3905 would increase the estate tax (“death tax”) exemption to $5 million while decreasing the rate to a level of 35%.

Currently, the death tax is set at 45% for estates worth more than $3.5 million (or $7 million for a couple). The President’s budget proposed freezing the estate tax at this level so it could be dealt with at a later date. If Congress does nothing, in 2011, it would revert to pre-2001 tax levels, and estates worth more than $1 million would be taxed at a 55% rate.

H.R. 3905 would raise the estate-tax exemption through a phased approach, starting at $3.5 million in 2009, and increasing by $150,000 each year until 2019 when the exemption would permanently level off at $5 million. The phase-out of the tax would work the same way: decreasing from 45% to 35% by 1% increments from 2009 to 2019. The bill is indexed for inflation after 2019.

The death tax is considered one of the leading causes of the breakup of multi-generation family farms and ranches. According to the U.S. Department of Agriculture (USDA) Economic Research Service (ERS), farm estates are five to 20 times more likely to incur estate taxes than other estates. In fact, according to ERS estimates, one in 10 farm estates (farms with sales of $250,000 or more annually) are likely to owe estate taxes in 2009. Most of the time, these assets have already faced taxes two or three times over the course of a lifetime.

NCBA continues to support H.R. 3524, the Family Farm and Conservation Preservation Act, sponsored by Congressmen Thompson (D-Calif.) and Salazar (D-Colo.), as well as additional estate tax relief for agriculture operations in tax extender legislation. NCBA also supported an amendment by Senators Lincoln (D-Ark.) and Kyl (R-Ariz.) — which passed earlier this year as part of the Senate budget resolution — to raise the death tax exemption to $5 million per individual and $10 million per couple, indexed for inflation. While the amendment wasn’t included in the final bill passed in conference, its passage in the Senate demonstrated strong bipartisan support for death tax reform. For more information: http://www.beefusa.org/uDocs/deathtaxleavebehind.pdf.

— Release by NCBA.

ISU Extension Marketing Resource Helps Livestock Producers Face Volatile Prices

Cattle producers have a new tool to help them develop a marketing strategy, thanks to the work of livestock economists working with the Iowa Beef Center (IBC) and Iowa State University (ISU) Extension.

John Lawrence, IBC director, and Shane Ellis, ISU Extension livestock economist, spearheaded the development of the Cattle “Crush Margin” tool, now available online. This forecasting resource projects the gross margins of fed cattle that will be marketed over the next 16 months. The projections are based on futures prices and the historic Iowa basis for live cattle, feeder cattle and corn.

“During the past three years, livestock producers have faced dramatic volatility in the livestock and feed prices,” Ellis said. “This new resource emphasizes the importance of establishing a profitable gross margin rather than focusing only on maximized revenues.”

Using the projected gross margin as a barometer, it is possible to identify the opportunities when profitability could be secured with a hedge or other price risk management technique. Projections are updated online every Wednesday or more often if significant futures price fluctuations occur.

A similar decision making tool is also available for swine finishers. The crush margin tool and accompanying resources can be accessed through www.iowabeefcenter.org/margins.

— Release provided by ISU Extension.

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