News Update
May 15, 2014
NFU and USCA Oppose USDA Proposal to Import Animal Products from Brazil
On May 14 the National Farmers Union (NFU) and the United States Cattlemen’s Association (USCA) sent a letter to U.S. Secretary of Agriculture Tom Vilsack requesting he withdraw the USDA proposal to relax restrictions on imports of animal products from Brazil. Recent revelations about the state of livestock health and food safety standards in Brazil raise additional concerns about loosening restrictions on imports.
Brazil has a long history of foot-and-mouth disease (FMD) outbreaks among livestock, but last week bovine spongiform encephalopathy (BSE), another contagious animal disease, was confirmed in Mato Grosso, a state in the region of Brazil from which USDA proposes to allow imports of animal products. When BSE was first identified in the United States in December 2003, 65 of our trading partners eventually imposed partial or full bans on U.S. beef.
“The health and integrity of animal agriculture is extraordinarily important to rural America and to the U.S. economy as a whole. Any threats to this industry deserve thorough investigation, and the events in Brazil warrant close scrutiny by the USDA before further advancing,” the letter states.
USDA recently released correspondence with Brazilian food safety regulators about the country’s meat inspection system. USDA conducted an audit in early 2013, which found concerns about Brazil’s ability to evaluate food safety procedures. Brazilian regulators have begun to consider changes in standards and enforcement but have not fully implemented these measures.
I Am Angus Airs Tonight on RFD-TV
America’s farms and ranches are filled with generations of stories — historic tales and dreams for the future. I Am Angus, the popular documentary series produced by the American Angus Association, introduces the individuals and families dedicated to raising cattle and caring for the land. Tonight’s episode airs at 10 p.m. Eastern (9 p.m. Central) on RFD-TV and travels from Michigan to Montana, with many stops in between.
Produced entirely by the Association, tonight’s program is sponsored by AngusAuctions.com, the trusted online source for Angus cattle sales. AngusAuctions.com is a marketing partnership between API and DV Auction.
RFD-TV is distributed by more than 625 cable operators and can be found on DirecTV channel 345 and Dish Network channel 231. Check local listings for more information.
For more information, including a listing of the herds to be featured in tonight’s episode, read the full news release at http://bit.ly/1k5MqG2. To watch segments from past shows, visit the Association’s website (www.angus.org) or YouTube Channel (http://bit.ly/1nTt1Zm).
St. Louis Fed Ag Survey Shows Farmland Prices
Down for First Quarter 2014
Farm income declined in the first quarter of 2014 relative to a year earlier, according to the latest Agricultural Finance Monitor, a newsletter published quarterly by the Federal Reserve Bank of St. Louis. However, the decline appears less severe than respondents expected according to our previous survey.
The survey for the report was conducted March 17, 2014, through March 31, 2014. The results are based on the responses from 49 ag banks within the boundaries of the Eighth Federal Reserve District. The District comprises all or parts of seven states: Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee.
Quality farmland prices fell slightly in the first quarter, a reversal of the gain reported in Q4 2013. Despite the decline, farmland prices still measured 7.5% higher compared to levels reported a year earlier. According to the survey, a majority of ag bankers continue to expect farm income and farmland values to decline during the next three months compared with year-earlier levels.
More details will be included in a front-page feature of the May 20 Angus Beef Bulletin EXTRA. Sign up to receive this electronic newsletter at www.angusbeefbulletin.com.
MCA Commends Passage of Ag Omnibus Bill
The Missouri Senate May 15 passed HB 1326, an omnibus bill that includes many bills related to agriculture, on a bipartisan vote of 28 to 3. MCA President Jim McCann said HB 1326, which is similar to SB 506 that was passed May 14 by the Missouri House of Representatives, includes issues that MCA members identified as top priorities for the 2014 legislative session.
HB 1326 extends the equine activity liability waiver to include livestock activities in the rare instance an accident occurs. Additionally, the omnibus bill includes increasing the hauling limits for livestock from 80,000 pounds (lb.) to 85,500 lb. HB 1326 allows Missouri beef producers to vote in a checkoff referendum if an enhancement is proposed by the Missouri Beef Industry Council, and it includes legislation that extends the student loan program for large-animal veterinary students who practice in rural, underserved areas.
HB 1326 now goes back to the House for consideration. McCann said the association encourages the House to quickly pass the legislation.
Commentary: How to Prevent Losing
1,000 Missouri Family Farms
China is farming 5% of the Ukraine and has farming interests in Australia, the United States, Tanzania, Senegal, Russia and Zambia. They may own as much as 12 million acres worldwide, and Chinese firms are farming more than 20 million acres outside of China. Why? Because China has 20% of the world's population, but only 9% of the world's land suitable for farming.
People involved in the U.S. agriculture data industry, who are building databases made up of yield reports and soil surveys from American farms, report that Chinese agricultural firms are the best customers for that data. They are interested in the data because they’re in the market for some of the best farmland in the world, farmland located in the U.S. Corn Belt.
In the waning days of the legislative session last year, the Missouri legislature ended the long-time ban on foreign ownership of farmland in Missouri by passing a bill allowing up to 1% foreign ownership of Missouri farmland. The best estimates we have show that foreign firms own about 0.29% of Missouri land. The law in place will allow foreign interests to nearly quadruple their ownership of Missouri's most precious resource, Missouri farmland. That’s an increase in foreign ownership of more than 200,000 acres, or about 400 square miles. If the farms purchased are of average size, then the legislature has passed a bill that would allow nearly 1,000 family farms to be purchased by people who owe their allegiance to countries other than the United States.
Missouri Farm Bureau is working hard to replace the present 1% cap with a total prohibition of further purchases of Missouri farmland, capping ownership at present levels.
For more information, please view the full release here.
Millennials — Are They Really that Different
from Other Generations?
For the beef checkoff, there are two important goals in the Beef Industry Long Range Plan around which key elements of the program are built — building beef demand and protecting beef’s image. To accomplish these goals, beef checkoff programs have focused on consumers’ ages, household status and their interest in both food and nutrition.
Given consumers’ ever-changing relationship with beef, producers who oversee the program decided it was time to take a fresh look at their target audience to make sure the checkoff seizes every opportunity to positively influence beef demand. While the previous target of food- and health-involved consumers would remain on their radar, consumer research led these producers to look more closely on a group of 25-to 34-year-olds, part of the so-called millennial generation, to fall into the food and health category.
The checkoff conducted a study in late 2013 using both qualitative and quantitative methods to better understand the target audience overall. This research included focus groups among ‘mature millennials’ (ages 25-34 years) to learn more about what really defines these consumers in a face-to-face setting, along with a survey of 1,250 from this group through online research to gain a perspective on the millennial generation vs. non-millennials.
The purpose of the study was to identify the most promising target segments for beef in terms of their attitudes, values, lifestyles and motivations relative to their perceptions of beef.
What did the study find? Millennials eat beef a couple times a week, which is not different than non-millennials, and their reasons for choosing beef are also the same. Most consumers, regardless of generation, want a great-tasting meal, value and a food they feel confident preparing.
Both groups of consumers recognize beef nutrients such as protein and iron; however, B vitamins and zinc are nutrients less associated with beef.
While there are many similarities across generations, there are a number of clear differences. For example, millennials are more likely to be influencers and want to share their beef-eating experiences with others. This group of consumers is eager to learn how to cook better and is very engaged with food. Importantly, when millennials are disappointed with a meal outcome they are much less likely to try this meal again, which obviously affects their beef-eating experience and how willing they are to try new beef recipes.
Although both millennials and non-millennials say their parents were influential in teaching them to cook, millennials say they tend to use websites, social media and cooking shows to learn to cook. The checkoff knows from this and other research that this generation is much more tech-savvy and more inclined to use technology to seek, find and share information.
For more information, please view the full release here.
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