News Update
Dec. 17, 2010

NCBA Calls Estate Tax Vote Victory for U.S. Cattle Producers

Despite calls to amend the estate tax language, the U.S. House of Representatives voted in favor of farmers, ranchers and small business owners, according to Illinois cattleman and National Cattlemen's Beef Association (NCBA) President Steve Foglesong. He said it was unfortunate to hear some Congressional leaders portray the reformation of the estate tax to a 35% rate with a $5 million exemption as a benefit for the wealthy elite. Foglesong said that on Jan. 1, 2011, if the estate tax was allowed to revert back to the pre-2001 level of 55% on property valued at $1 million, many farmers and ranchers would have been forced to sell, further depopulating rural America.

"It was shocking to hear some members of Congress argue against estate tax reform and even attempt to make the case to increase this outdated tax. It is apparent some members of Congress are out of touch with their constituents and the steam engine of economic growth in rural America," Foglesong said. "I speak for all cattlemen and women when I express my gratitude to those members of Congress who understand the importance of keeping small businesses, including farmers and ranchers, from receiving a financially devastating death sentence on New Year's day."

At midnight last night, the U.S. House of Representatives voted in favor of extending all expiring tax cuts with a vote of 277 to 148. This passage is subsequent to the Senate's 81-19 vote Dec. 15. CNN reported late in the day Dec. 17 that President Obama signed the bill into law.

The law will reduce the top rate of the estate tax, commonly known as the death tax, to 35%; increase the exemption level to $5 million; index exemptions to inflation; and include a stepped-up basis.

NCBA Vice President of Government Affairs Colin Woodall said estate tax reform was among NCBA's top policy priorities for 2010. In fact, Woodall said, NCBA has had estate tax reform as a top priority for more than two decades. In 1988, NCBA, which was then the National Cattlemen's Association, along with the National Federation of Independent Business (NFIB) joined forces to create the Family Business Estate Tax Coalition. The group is now comprised of more than 60 entities ranging from the Air Conditioning Contractors of America to the American Farm Bureau Federation (AFBF) to the National Newspaper Association. Woodall said the Coalition, formed by NCBA, is a well-respected advocate and united front for small business owners, including farmers and ranchers.

"The efforts of the Coalition that took place in Washington, D.C., coupled with the outcry from rural America got the attention of Congress. Today is a great day for cattlemen and women. Although we believe permanent repeal of this tax is the best answer, two-year relief for family-owned operations is better than the 55% tax that would leave many farmers and ranchers in financial ruin," said Woodall. "NCBA has been the leading organization on this issue for many years and we will continue to fight for permanent reform. We can't wait for two years and then wonder what we are going to do. We will be on Capitol Hill advocating for farmers and ranchers and an end to a tax that penalizes the innovation and hard work of all farmers and ranchers."

— Release by NCBA.

China Agrees to Resume Beef Talks with U.S.

U.S. officials indicated Dec. 15 that that China has agreed to continue discussion on expanding access to imports of U.S. beef, with the goal of re-opening that market sometime early next year.

"The 21st JCCT was both productive and effective," said U.S. Secretary of Commerce Gary Locke. "We were able to make progress on significant issues in a number of areas, and on other issues we have established channels that will allow us to continue our robust engagement and pursue timely solutions."

U.S. Secretary of Agriculture Tom Vilsack also participated in the discussions.

"I am pleased with the progress made today towards resolving our differences on beef access," Secretary Vilsack added. Technical talks will resume as soon as possible with the goal of re-opening China's market in early 2011. This is a vital outcome for our farmers and ranchers, underscoring the importance of the JCCT in providing a forum for our stakeholders."

Established in 1983, the JCCT is the main forum for addressing bilateral trade issues and promoting commercial opportunities between the United States and China.

— Adapted from a USDA release.

Feeding the World in 2050: Dinner for 9.3 Billion People

With the increase in population mankind has experienced during the 20th century and continuing into the 21st, the agricultural industry faces a major challenge in the next 40 years — continuing to feed the world. Even though we can celebrate scientific successes such as better disease control methods, lower infant mortality and longer lifespans, there are also many obstacles to overcome, such as a larger gap between the rich and poor and more people living below the "hunger line" than in the 1800s.

"Feeding the World in 2050: Dinner for 9.3 Billion People," is the theme of Alltech's 2011 North American Lecture Tour. Speakers on the 21-stop tour, taking place Jan. 8-Jan. 28, will explore how agriculture and the animal health industry can find the balance for sustainable food production, production of energy and protection of resources while satisfying consumer demands.

Alltech will present the possibilities that lie within its core philosophy, the ACE Principle, and examine strategies for improving the performance of the animal while satisfying the consumer and protecting the environment. Besides Alltech founder and President Pearse Lyons, North American Lecture Tour speakers include Mark Lyons, Karl Dawson, James Pierce, Juan Tricarico, and Kate Jacques. These experts will discuss how new tools such as Nutrigenomics can change the way we feed our animals and ourselves; how trace mineral nutrition may be the key to overcoming major epidemics such as HIV, Alzheimer's disease, and cancer; how the 'farm of the future' will look; and how agribusiness can sustain itself for centuries to come.

"In addition to the fact that there are more of us, more people live in towns and cities, away and unaware of agriculture. Because of this, the way we make food purchasing decisions is totally different that we did in the past," said director of North America, Mark Lyons. "We can see the changing dynamics of the global supermarket playing out in our own local grocery stores. We are now looking for the right nutrients, not just the right food. We look beyond the label and at the message behind the products we buy. There has never been a time that the consumer has felt as empowered as now and at the same time as far away from the farm."

Dates and locations for the 2011 North American Lecture Tour are:

January 8
Atlanta, Ga., Ag Connect, Georgia World Congress Center, 3:30 p.m.

January 17
Waterloo, ON, The Cutten Club, 9 a.m.
Drummondville, QC, Hôtel Suites Le Dauphin, 4 p.m.

January 18
Burlington, VT, Sheraton Burlington Hotel, 9 a.m.
Syracuse, NY, Doubletree Hotel, 3 p.m.

January 19
Lancaster, PA, Best Western Eden, 9 a.m.
Raleigh, NC, The State Club, 3:30 p.m.

January 20
Columbus, OH, The Blackwell, 9 a.m.
Madison, WI, Sheraton Madison Hotel, 2:30 p.m.

January 21
Owatonna, MN, Holiday Inn and Suites, 9 a.m.
Winnipeg, MB, Canada Inns Polo Park, 4 p.m.

January 24
Brookings, SD, Swiftel Center, 9 a.m.
Ames, IA, Hilton Garden Inn, 3 p.m.

January 25
Lincoln, NE, University of Nebraska-Lincoln, 9 a.m.
Lethbridge, AB, The Coast Lethbridge Hotel, 4 p.m.

January 26
Twin Falls, ID, Shilo Inn, 8:30 a.m.
Pendleton, OR, Wildhorse Casino Resort, 3 p.m.

January 27
Fresno, CA, Holiday Inn Fresno Downtown, 8 a.m.
Clovis, NM, Alltech New Mexico Office, 4 p.m.

January 28
Rogers, AR, Embassy Suites- Northwest Ark., 9 a.m.
Springfield, MO, The Tower Club, 4 p.m.

For further information on the lecture tour, please visit www.alltech.com/.

— Release by Allie Hembree for Alltech.

K-State Animal Scientist Discusses Body Condition Scoring for Beef Cows

Beef cattle producers know that a cow's body condition at the time of calving will affect the health of her calf and her ability to breed back in a timely manner. A Kansas State University (K-State) animal scientist encourages producers to use a body condition score (BCS) system to determine their cows' condition.

"A body condition score on a beef cow is the closest thing we have to determining her nutritional status at a glance," said Chris Reinhardt, livestock specialist with K-State Research and Extension. "But scoring cows properly and really benefitting from this tool requires more effort and observation than simply looking and thinking, 'They look a little thin.'"

The reason for talking about BCS now is that there is still time to adjust the nutrient supply to get the cows into the target BCS by calving time, Reinhardt said.

To evaluate an individual cow, he said, look at her topline, brisket, ribs, flank, round and tail head. A borderline thin cow (BCS 4) will clearly show three to four ribs first thing in the morning, will have no obvious fat depots in the brisket or tailhead, and the individual vertebrae along the topline will be visible. The cow still shows some muscle through the round, and she may appear "healthy but thin."

In a borderline fleshy cow (BCS 6) the ribs and vertebrae will not be obvious, as they are covered by fat. The muscling through the round will be plump and full, but muscle definition is still apparent, and there will be small but noticeable fat deposits behind the shoulder, in the flank, brisket, and around the tail head.

The "ideal" or "target" BCS for cows at the time of calving is BCS 5, Reinhardt said. This cow will show the last one to two ribs first thing in the morning before feeding and have good fullness of muscle in the round with definite muscle definition. In addition, the spine will be apparent, but individual vertebrae will not be discernable, and with no obvious fat deposits behind the shoulder or around the tail head.

"We would say this cow has a good bloom," he added.

A change in BCS (from BCS 4 to 5, for example) requires the addition of 75-100 pounds (lb.) of live body weight, depending on the mature size or frame size of the cows, the livestock specialist said.

"If you're two months from the start of calving and would like to add 0.5 to 1.0 BCS, you'll need to feed the cows for maintenance, the last one-third of gestation, and an additional 1-1.5 lb. per day of gain. This means increasing the amount of good quality hay as well as the amount of supplement."

Reinhardt said that thin cows (BCS 4 or below) can be separated from the rest of the herd and fed at a higher plane of nutrition.

"The argument can be made that this creates 'welfare cows.' However, good recordkeeping will indicate whether these cows are perennial 'hard-keepers' or if they are simply too young or too old to compete with the mature cows," he said. "If they're too young, another year of maturity should cure this; if they're too old, you may consider culling them after weaning time. The key here is that good recordkeeping allows you to cull intentionally based on productivity, not based on lack of observation and management."

Cows at BCS 5 at the time of calving should provide adequate colostrum and nutrition for their calf and breed back in a timely fashion, Reinhardt said. Cows that calve below BCS 5 will delay their return to estrus and breed back late. If these cows do not maintain a 365-day calving cycle, they could, after one to two late breedings, effectively cull themselves due to being open at pregnancy checking time.

"Young cows are especially susceptible to this because they are gestating a calf, nursing a calf and still growing frame and muscle themselves," he said. "Unfortunately, young cows are the future of your herd and possibly your most progressive genetics. Hopefully, these cows aren't culled simply for lack of nutrients."

Reinhardt encourages producers to take time to critically evaluate the nutrient status of their cow herds this winter, and to use the body scoring system to manage the fertility and health of their herds going into next spring. "That way, you give yourself full control over the genetics of your herd for years to come," he said.

Beef Cow Body Condition Scoring for Whole Herd is Simple Process

Keeping track of an individual cow's condition using the body condition scoring system may be simple enough, but what about a whole herd?

"Body condition scoring the herd is a simple process, and can be done on a large paper tablet," said K-State Research and Extension Livestock Specialist, Chris Reinhardt.

"Make columns for BCS 3, 4, 5, and 6 and, as you pass through the herd first thing in the morning, make a tick mark for each cow in each of the columns. Multiply the number of 3's by 3, the 4's by 4, etc., add up the total score and divide by the total number of tick marks. This gives you an average BCS for the herd."

More important than the average is how many cows you've got in the critical scores of 3 and 4, he said. 4's can be easily fed into the 5 range, but 3's could potentially not cycle in time to stay in the herd. If 3's can be fed into the 4-range, they'll have a chance to breed, albeit late, during the normal breeding season.

— Release by K-State Research and Extension.

— Compiled by Linda Robbins, assistant editor, Angus Productions Inc.