News Update
July 9, 2013
Bred-and-owned Champions
Named in Kansas City
The first champions of the 2013 National Junior Angus Show were named yesterday during events and dthe American Royal Complex in Kansas City, Mo. Judge Jonathan Perry, Fayetteville, Tenn., named Silveira’s S Sis Sandy 2354 grand champion bred-and-owned female. Sydney Schnoor, Chowchilla, Calif., owns the May 2012 daughter of Silveira’s Style 9303. She first won intermediate champion.
SCC Royal Blackbird ELL 231 won reserve grand champion bred-and-owned female for Lindsey Pugh, Louisville, Ohio. She’s a March 2012 daughter of Dameron First Class and first claimed late junior champion.
For comprehensive show results, visit www.angusjournal.com/aj_showresults.html.
2013 NJAS Cattle Show Coverage
This week, more than 1,100 head of cattle are expected to walk through the showring at the National Junior Angus Show (NJAS) at the American Royal Complex in Kansas City, Mo. Angus enthusiasts who are not at the NJAS this year can catch live coverage of the show on Live Auctions’ website, www.liveauctions.tv.
“We’re expecting a great show this year,” says Robin Ruff, American Angus Association director of activities, events and education. “Junior members have prepared all summer for these events and their hard work is finally going to pay off.”
Throughout the week, the cattle shows feature steers, bred-and-owned cow-calf pairs, owned cow-calf pairs, bred-and-owned bulls, bred-and-owned best five head, owned heifers and the 47th Annual NJAS Showmanship event. Judges include:
- Chris Mullinix, El Dorado, Kan., owned heifers;
- Jonathan Perry, Fayetteville, Tenn., bred-and-owned heifers, cow-calf pairs, and bred-and-owned bulls; and
- Ryan Rathmann, Lubbock, Texas, steers.
States will also compete for the Best Five Head, while individual members will vie for Junior Premier Breeder and the Silver Pitcher Award. This year’s Showmanship judges are Lacey Robinson, Olsburg, Kan.; Jason Hoffman, Thedford, Neb.; and Randy White, Waukomis, Okla.
Visit www.angus.org to find contest results, awards, scholarships and show photos. Backdrop and candid photos will be available for purchase online. Coverage is also available on the NJAA and Angus Journal Facebook pages, as well.
Also, plan to tune in to a special NJAS episode of The Angus Report at 7:30 a.m. (central) Monday, July 22, on RFD-TV.
Court Decision Affects Conservation
Reserve Program (CRP) Landowners
As a result of a recent U.S. Tax Court ruling, those who sign a Conservation Reserve Program contract, whether they are involved in a farm business or just own the land, will find their CRP payments subject to self-employment tax.
Previously, at least until 2003, self-employment tax on CRP payments was only enforced on those who were directly involved in a trade or business, and a non-farmer’s CRP income was not subject to self-employment tax, said Roger McEowen, director of the Center for Agricultural Law and Taxation and agricultural law professor at Iowa State University.
“The issue is that people who are not in a trade or business should not need to pay self-employment taxes on CRP rents,” McEowen said. McEowen explained that even if someone just owns the land that is in the CRP and is not a farmer, the court says they will be charged the tax.
According the USDA’s website, the program pays landowners to halt all production on their environmentally sensitive lands to conserve and improve the quality of the land. The program is in place to help improve water quality and to stop soil erosion and the loss of natural habitats. Landowners apply for the program by a bid to the USDA, who then accepts or denies the application. The participants then sign a 10 to 15 year contract. The court determined that the landowners participating in the CRP have the intent to make profit, and should be charged a self-employment tax.
“The court says that you are in the trade or business of creating environmentally friendly land and farms,” said McEowen. “Once you sign the CRP contract, the court states that you are in the trade or business of CRP and the CRP rents are subject to self-employment tax.”
With landowners being charged a self-employment tax, McEowen explained that when they apply their bids for the CRP, they would adjust their bids to incorporate the tax. The USDA will then have to pay more for the land to become a part of the CRP. Others may simply not participate in the CRP and cash lease the land to a farmer so that the cash rent income is not subject to self-employment tax.
Summer Grazing Management
Despite the summer sun, excessive heat and fewer rains typically associated with Ohio summers, producers can take steps to increase summertime productivity in pastures composed of grasses that typically grow best in cooler conditions, said a forage expert from Ohio State University’s College of Food, Agricultural and Environmental Sciences.
To lessen the summer slump in cool-season grass pastures, producers can follow the four Rs for summer grazing, said Rory Lewandowski, agriculture and natural resources educator for the college’s outreach arm, Ohio State University Extension.
“Producers need to be looking and planning ahead,” Lewandowski said. “Even though we’ve gotten a lot of rain in recent days, we will get to the point where dry, warmer temperatures take over and rainfall slows.
“And either a dryer or warmer weather pattern can cause grass to grow slower, so we need to start managing for that slower grass growth now.”
The four Rs focus on removing seed heads; the right starting height; residual leaf area; and rest period.
“Whereas last year we were talking to grazers on how to protect their pastures during drought, this year with the more rainfall and cooler temperatures that we’ve experienced thus far, producers can continue to manage to promote productivity and get good animal performance,” Lewandowski said. “The main emphasis here, as we get into summer, is “that” these cool-season grasses require a higher level of management if you want to keep your pastures productive throughout the growing season.”
To read the full release click here.
Pasture and Hay Conditions Key to Beef Herd Recovery
Although forage conditions are better now in many locations, it is the residual effects of drought the last two years combined with the long and severe winter in parts of the United States that have forced more herd culling so far this year.
Derrell Peel, Oklahoma State University (OSU) Cooperative Extension livestock marketing specialist, said the U.S. beef herd is likely getting smaller in 2013 because of unexpectedly large beef cow slaughter in the first half of the year.
“The 3.4% year-to-date increase in beef cow slaughter masks a more dramatic increase in beef cow culling since mid-March,” he said. After decreasing nearly 9% during the first 10 weeks of the year, beef cow slaughter has averaged more than 12% above year-earlier levels for the last 15 weeks. The rate of beef cow slaughter has slowed the last three weeks, averaging 2.3% above the same period last year, with one week slightly lower than last year.
“Although beef cow slaughter is expected to drop below year-earlier levels in the second half of 2013, it would take a severe decrease for the remainder of the year — certainly averaging more than 10% below last year — to avoid net beef cow herd liquidation in 2013,” Peel said. At the current time, 51% of U.S. pastures and ranges are in good or excellent condition, compared to only 25% at this time last year. By contrast, 25% of pastures and ranges are in poor or very poor condition this year, compared to 43% at this time last year.
“Drought conditions currently are confined to the western half of the country, where conditions are worsening in many regions,” Peel said. “Regional pasture and range conditions illustrate the dramatically different situations between east and west.”
Peel said forage conditions and supplies are expected to improve significantly in the second half of 2013 in many regions, but these gains will be partially offset by persistent drought conditions in the western half of the country.
“Lack of forage to date has already provoked enough additional beef cow slaughter and likely diversion of potential replacement heifers into feeder markets to result in additional herd liquidation in 2013,” he said. “However, a sharp decrease in beef cow slaughter and increased heifer retention in the second half of 2013 may set the stage for potential beef cow herd recovery, beginning in 2014.”
For more information and the full article, click here.
Dowell Joins Texas A&M AgriLife Extension Service
as Agricultural Law Specialist
Tiffany Dowell has joined the Texas A&M AgriLife Extension Service as an assistant professor and agricultural law specialist. Dowell, who will be based in College Station, specializes in legal issues pertaining to oil and gas, water and property leasing/grazing rights, as well as other issues affecting farming and ranching.
“This is a unique position for AgriLife Extension and certainly a timely one with the heightened interest in Eagle Ford shale development and water rights,” said Mark Waller, AgriLife Extension program leader for agricultural economics in College Station.
Dowell previously was an associate attorney with the law firm of Peifer, Hanson and Mullins in Albuquerque, N.M. She received her law degree from the University of New Mexico School of Law and bachelor of science degree in agribusiness from Oklahoma State University. Dowell grew up on a family ranch in New Mexico.
“Agricultural law has always been my interest and my background has prepared me well for this type of work,” she said. “With this position, I hope to help many farmers and ranchers with their questions and need for information statewide.”
Dowell has started an agricultural law blog at http://agrilife.org/texasaglaw/ that provides regular updates on various topics and weekly recaps on legal issues in the news. She will also provide traditional educational programming through workshops and conferences conducted by the agency statewide.
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