News Update
February 21, 2013
NCBA Statement on OIE Classification
of U.S. as Negligible Risk for BSE
National Cattlemen’s Beef Association President Bob McCan, a cattleman from Victoria, Texas, made the following statement about notification received from the Scientific Commission for the World Organization for Animal Health (OIE) recommending that the United States' risk classification for bovine spongiform encephalopathy (BSE) be upgraded to negligible risk:
“This announcement by OIE’s Scientific Commission is great news for U.S. cattle producers. The U.S. beef industry has worked with government officials and scientists to implement multiple interlocking safeguards to prevent BSE from taking hold in our country. The most important of these safeguards is the removal of specified risk materials — or the parts of an animal that could contain the BSE agent should an animal have the disease — from all animals presented for slaughter in the United States. Being classified as negligible risk for BSE by the OIE is proof that these safeguards are working and protecting the public and animal health against BSE.”
“The safety of our cattle and our beef is the top priority for American beef producers. Recognition by OIE that our cattle and our beef are of the highest and safest quality is important in promoting U.S. beef in our growing export markets. We applaud USDA for working with the international scientific community and industry leaders on this issue.”
EPA Releases Producer Information to Activist Groups
Recently the National Cattlemen’s Beef Association (NCBA) was notified by the Environmental Protection Agency (EPA) that the agency had been collecting information from states on Concentrated Animal Feeding Operations (CAFOs). This information was requested by extremist groups, including Earth Justice, the Pew Charitable Trust and the Natural Resources Defense Council through a Freedom of Information Act (FOIA) request and granted to them.
“When we reviewed the information submitted by the states and released by EPA, we were alarmed at the detail of the information provided on hard-working family farmers and ranchers, family operations including my own,” said NCBA Past President J.D. Alexander, a cattle feeder from Pilger, Neb. “It is beyond comprehension to me that with threats to my family from harassment atop bio-security concerns, that EPA would gather this information only to release it to these groups. This information details my family’s home address and geographic coordinates; the only thing it doesn’t do is chauffeur these extremists to my house. For some operations, even telephone numbers and deceased relatives are listed.”
In January 2012, EPA proposed the Clean Water Act Section 308 CAFO reporting rule to collect information from CAFOs and make it publicly available and readily searchable through their website. Cattlemen and women, along with the Department of Homeland Security, expressed concerns that this was not only a serious overreach of EPA’s authority and would create a road map for activists to harass individual families, but that the proposal would aid and abet terrorism and provide a very real threat to the nation’s food security.
EPA later withdrew the 308 rule on these grounds, but NCBA has learned that the agency still intends to use this gathered data to create a national searchable database of livestock operations. EPA’s current action proves that our nation says it is concerned with national security, but does not care about personal small-business security, said Alexander.
“Cattle producers won this issue with EPA’s decision to withdraw the rule and with the withdrawal, we had hoped precautions would be taken by the agency to protect such information. Instead of protecting this information, EPA was compiling it in a nice package for these groups, all on the federal dole,” said Alexander. “Moreover, EPA knew, or had reason to know, this information would be readily accessible to all groups wishing to harm agriculture, through a simple and quick FOIA request. My question is, with government overspending and rumors from United States Department of Agriculture Secretary Vilsack threatening to shut down meat inspection to control spending, why is EPA using valuable government resources to do the dirty work of extremists, activists and terrorists?”
The information released by EPA covers CAFOs in more than 30 states, including many family farmers and ranchers who feed less than 1,000 head and are not subject to regulation under the Clean Water Act.
Meat, Dairy Producers Gain Global Sales
As Rising Middle Class Gains Higher Pay
Livestock and dairy producers can’t afford to ignore what goes on in the rest of the world, says Scott Brown, University of Missouri livestock and dairy economist.
Global population and income growth spurs more consumption. Potentially, that means more export business for meat and dairy producers.
U.S. demand for protein products remains sluggish, Brown said. A rising middle class is poised to grow in other parts of the world, especially the Asia-Pacific region outside of Japan.
Look for areas of growing population that have growing income, Brown told livestock and genetic exporters meeting in Kansas City.
“The new middle class seeks more meat in their diet. And they’ll have money to buy.”
Consumers in already-developed countries don’t show as much demand growth. “The U.S. economy turned upward, if slowly. Now, a lot depends on whether Congress does something that hurts job growth,” Brown added.
In developing countries, more consumption depends on mouths to feed, and money to buy food.
U.S. farmers must realize export markets demand high quality. The United States now fills the niche for providing corn-fed prime beef. This quality has helped sustain beef prices in the United States, boosting farm prices.
That quality demand is so strong, Brown said, that future export growth might come not from increased U.S. production but from reduced U.S. consumption.
Changes in U.S. agriculture will affect future exports.
Agricultural prices continued higher over the past five years. At the same time, input costs rose for raising and feeding livestock.
Higher prices of meat and dairy products could moderate expected exports.
Price volatility remains a big issue facing U.S. farmers. That includes uncertainties in weather, international markets and domestic use.
For more information and the full release, click here.
100th Annual Cattlemen’s Day to Follow Long-Standing Tradition of Presenting Research-Based Information
For some, it’s the chance to talk to beef researchers and specialists, face-to-face. For others, it’s the camaraderie and food, not to mention the Legacy Sale. For many, it’s to hear about the latest research and best practices related to cattle production. For those reasons and more, Kansas cattle producers are again invited to gather in Manhattan — this time for the 100th anniversary of Kansas State University’s Cattlemen’s Day on March 1.
Over the years, Cattlemen’s Day attendees have been among the first to hear groundbreaking information on a myriad of topics, including pasture burning, germ plasm, estrous synchronization and crossbreeding.
Presentations this year represent the latest information on such issues as passing the farm to the next generation; using ammoniation to stretch forage supplies; the short- and long-term cattle market outlook; beef-selection systems; heifer development and more.
Highlights include a presentation by longtime U.S. Premium Beef chief executive officer, Steve Hunt. Hunt’s presentation, “Designing Meats and Meals,” will be the first in the Henry C. Gardiner Lecture Series, established to honor Gardiner, a pioneer in beef genetics and founder of Gardiner Angus Ranch in Ashland, Kan.
In addition, the Stanley Stout Center will be dedicated with a ribbon-cutting at 3 p.m., prior to the Legacy Sale that begins at 4 p.m. The center honors famed auctioneer and Kansas native, Stanley Stout. This year’s Legacy Sale offers 80 Angus, Hereford SimAngus and Simmental bulls, six show heifer prospects, 30 bred females and six registered quarter horses.
More information and online registration is available by clicking here.
Farmers See Tax Changes in Annual Reporting in 2012
The fiscal cliff created the opportunity for a number of changes in the tax rules regulating when a farm must complete and file their annual income tax returns. For 2012, farm income tax returns have received a deadline extension from the normal March 1, 2013, date to file their tax returns without penalty, if they have not made estimates. With the tax deadline extended, Farm producers now have until April 15, 2013, to file their tax returns without a penalty.
Farms that elect to delay completing and filing their tax returns after March 1, 2013 will need to include a Form 2110F as part of their returns. The Form 2110F is a waiver that was part of the enactment of the American Taxpayer Relief Act (ATRA). To qualify, at least two-thirds of the taxpayer’s gross income must be from farming in either 2011 or 2012. Much of the guidance from the IRS is still in process due to the late enactment of ATRA after the end of 2012.
Some of the changes and a major point that may impact farms as they prepare their 2012 income tax returns:
The 179 expense election for 2012 was set at $500,000 retroactively because of the ATRA. This allowance provides an option for accelerated depreciation on new or used machinery or equipment purchases for the year of its purchase. There is a dollar-for-dollar phase-out if your farm purchased more than $2 million of depreciable capital assets during 2012. This change is a major increase from the $139,000 that was originally stated in the 2012 rules.
In addition, a farm has a 50% bonus depreciation of adjusted basis after the 179 expensing. This option only applies to new property placed in service during 2012 that has a depreciable recovery period of 20 years or less. Your farm can take the bonus depreciation or can select the election to opt out of having the 50% bonus applied to all new property this is grouped by class (3, 5, 7, 10, 15 or 20 year property) but everything within a class must be treated the same.
For more information and the full release, click here.
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