News Update
September 21, 2012
Beef Checkoff Sets FY2013 Plan of Work
The Cattlemen's Beef Board will invest about $40.3 million into programs of beef promotion, research, consumer information, industry information, foreign marketing and producer communications in fiscal year (FY) 2013, if a recommendation of the Beef Promotion Operating Committee is approved by USDA following review by the full Beef Board.
In action concluding its two-day meeting in Denver this week, the Operating Committee — including 10 members of the Beef Board and 10 members of the Federation of State Beef Councils — approved checkoff funding for a total of 42 "Authorization Requests," or proposals for checkoff funding in the fiscal year beginning Oct. 1, 2012. The committee also will request full board approval of a budget amendment to reflect recategorization of the FY 2013 budget in accordance with the programs approved.
"We really had a tremendous task before us," said Beef Board and Operating Committee Chairman Wesley Grau, a cattleman from New Mexico. "We had to find ways to cut nearly $3 million from the proposals presented to us for checkoff funding in the coming year."
Among the cuts in program proposals was a $300,000 cut from consumer advertising; $100,000 from nutrition research; a $275,000 proposal for programming about the beef industry on America's Heartland on PBS; a $100,000 cut from the national Beef Quality Assurance program; and a total of more than $811,000 in cuts from various foreign-marketing proposals.
"It was a stressful process," Grau said, "but I am just so pleased with how members of the committee dug in and made the tough decisions. In the end, I think the producers and importers who invest in their beef checkoff will be proud of the plan of work the Operating Committee has moved forward. We are leveraging every checkoff dollar to meet our goals the best we possibly can with the limited budget we have."
For more information and the full release, click here.
R-CALF USA CEO Files FOIA Request, Possible USDA Role in Banning R-CALF USA from Beef Checkoff Meeting
R-CALF USA CEO Bill Bullard filed a request for information under the Freedom of Information Act (FOIA) and/or Privacy Act (PA) for copies of all records of communications between the USDA and the eight groups that have banned R-CALF USA from participating in the meeting of the Beef Checkoff Industry Input Group (Checkoff Industry Group) scheduled for Sept. 24, 2012, in Denver, Colo. USDA representative Craig Shackelford is scheduled to make a presentation at the meeting.
The eight groups accused of banning R-CALF USA from participating in the upcoming meeting include the National Cattlemen's Beef Association (NCBA), U.S. Cattlemen's Association, Meat Importers Council of America, American National CattleWomen, American Farm Bureau Federation, Livestock Marketing Association, National Livestock Producers and National Farmers Union.
For more information and the full release, click here.
USDA, Partner Agencies, to Participate in Series of Regional Meetings to Coordinate Long-term Drought Response
Recognizing that recovery from the drought that affected much of the farm belt will be a lengthy process, Agriculture Secretary Tom Vilsack announced the scheduling of four regional meetings, which will outline available resources to assist with local, regional and state recovery efforts. USDA will coordinate with state and local partners, working closely with the Department of Commerce, the Small Business Administration and the Federal Emergency Management Agency to facilitate these meetings.
"The impact of drought can be felt in rural communities throughout the country and the Obama Administration is committed to doing everything it can to help farmers, ranchers, businesses, and local and county governments meet drought-related challenges," said Vilsack. "President Obama has instructed federal agencies to assist drought-impacted regions, and these meetings will provide an opportunity for federal representatives to work cooperatively with local and regional leaders to learn about drought-related impacts and determine how to best use existing programs to help speed recovery efforts."
The meetings will be coordinated through area partners, such as universities or business groups and state agencies, and will be invitational and regional in scope. Specific details will be announced later, but the meetings will be kicked off in Omaha, Neb., Oct. 9, with meetings to follow in Ohio, Colorado and Arkansas. The meetings will assess current and emerging drought recovery issues.
For more information and the full release, click here.
'Agflation': World Food Prices Projected to Reach
Record Highs in 2013
Food prices are once again on the rise, fueled by the lingering U.S. drought and water scarcities in South America and Russia. According to a report released today by the Rabobank Food & Agribusiness Research and Advisory (FAR) group, such prices are likely to reach an all-time high the first quarter of 2013 and will present a challenge for the livestock industry.
The report, titled "Re-entering Agflation" highlights how the affected commodities are those used in animal feeds and not considered core food staples of the world's developing economies — a striking difference from 2008, when low wheat inventories and restricted rice exports held back the availability of those commodities for consumers.
"The impact on the poorest consumers should be reduced this time around, as purchasers are able to switch consumption from animal protein back towards staple grains like rice and wheat," said Luke Chandler, Global Head of Agri Commodity Markets Research at FAR and author of the report. "In developed countries — especially the U.S. and Europe — where meat and corn price elasticity is low, the knock-off effect of high grain prices will be felt for some time to come."
Chandler notes that the impact of higher grain and oilseed prices will be significant for the livestock sector as it is likely to be squeezed by higher feed costs. The long production cycles of livestock, notably cattle, will keep pressure on rising food prices as herds take the time to rebuild. The full effect of this commodity price rally and the subsequent lower meat and milk output, will be a multiyear rebuilding of herds, which will keep price levels high. Meanwhile, beverages and value-added product sectors will be less affected as grains and oilseeds constitute a smaller part of the overall production costs. The report estimates that the Food and Agricultural Organization (FAO) Food Price Index will rise by 15% by the end of June 2013. Rabobank expects prices — particularly for grains and oilseeds — to remain at high levels for at least the next 12 months.
The report also notes that stockpiling and export bans are definitely possible for the end of 2012 and 2013 as governments try to protect consumers from rising food prices. Rabobank suggests that such efforts will be counterproductive and cause even higher spikes in commodity and food prices.
UK Ag Receives More Than $500,000
to Help Beginning Farmers
The USDA has awarded the University of Kentucky College of Agriculture a $561,000 grant for KyFarmStart, its comprehensive training program for beginning farmers and those who are considering going into farming.
At the recent Farm Progress Show in Boone, Iowa, Agriculture Secretary Tom Vilsack announced more than $18 million in grants through the Beginning Farmer and Rancher Development Program to programs in 24 states.
"In the past few decades, U.S. agriculture has become the second most-productive sector of the American economy, thanks to farmers adopting technology, reducing debt and effectively managing risk," Vilsack said. "These grants will help beginning farmers and ranchers overcome the unique challenges they face and gain knowledge and skills that will help them become profitable and sustainable."
The Beginning Farmer and Rancher Development Program makes grants to organizations that implement education, training, technical assistance and outreach programs to help beginning farmers and ranchers, specifically those who have been working in the field for 10 or fewer years.
For more information and the full release, click here.
Predator Management Workshop set Oct. 12
A Predator Management Workshop has been scheduled from 8 a.m.-1 p.m. Oct. 12, at the Sonora/Rocksprings Texas A&M AgriLife Research Station.
"Continued drought and wildfires that caused predators of livestock to move and lack of control by producers once they get here have added to predation pressure on our sheep, goats and wildlife in recent years, and there seems to be no relief in sight," said Pascual Hernandez, Texas A&M AgriLife Extension Service agent in Sutton County. "With this meeting, the AgriLife Research Station's predator committee is partnering with AgriLife Extension to inform this region's producers about what is available to help them cope with this perennial, but growing problem that's literally affecting the survival of our region's ranching industry."
Topics and speakers will include the Sutton and Edwards counties Predator Management Clubs and the Feral Hog Abatement Program, Jimmy Holman, rancher and president of the Sutton County Predator Association; Impact of Predation on Livestock and Wildlife, Mark Mapston, Texas Wildlife Services, Uvalde; Feral Hogs as Disease Vectors, Chronic Wasting Disease, Pete Fincher, Texas Animal Health Commission, Lampsasas; and Trapping Demonstrations, Cliff Brister and Dano Stotts, Texas Wildlife Services, Sutton and Edwards counties, respectively.
The workshop will end with a catered lunch at the station.
Three Texas Department of Agriculture continuing education units, 1.5 integrated pest management and 1.5 general, will be offered.
Individual registration, which includes lunch, is $12. Organizers ask those planning to attend to RSVP by Oct. 2 by calling the AgriLife Extension office in Sutton County at 325-387-3101.
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