News Update

February 24, 2016

Converting Crops to Grass

A growing interest in shifting out of crop production and into a forage-based system in the Rolling Plains has Stan Bevers, Texas A&M AgriLife Extension Service economist in Vernon, consulting his crystal ball. He has some advice for those who are contemplating the move: “Have a multi-year plan and have a chunk of equity, because you can’t borrow your way through this.”

He said there are a lot of variables and a lot of factors involved in the transition. While he has seen a number of acres go into pasture during the past two years at the peak of the cattle market, things are changing.

“I think there were people thinking there wouldn’t be another bad day in cattle,” he said. “They have quickly found out there will be. You have to have a multi-year plan, because no one can predict prices and production levels. This forces you to consider what might happen.”

Read the complete Angus Media article online.

— Adapted from an article by Kay Ledbetter, Texas AgriLife Extension Service.

NCBA Urges Swift Action on TPP

The National Cattlemen’s Beef Association (NCBA) sent a letter on behalf of its members and state affiliates urging quick passage of the Trans-Pacific Partnership (TPP). NCBA President Tracy Brunner said cattle producers cannot afford to wait any longer for passage of this critical agreement.

“The value exports add to U.S. beef is undeniable,” said Brunner. “Asia and the Pacific Rim are extremely valuable markets for U.S. beef. We not only export steaks and ground beef, but this region demands high-quality variety meats like beef tongue. Those products bring a premium in these markets and add value back to producers here at home. Trade is an investment in our future profitability for the next generation.”

In 2015, trade added an estimated $325 per head in value. Japan is the largest export market for U.S. beef, amounting to $1.3 billion this past year. Currently, U.S. beef faces a 38.5% tariff in Japan. With the implementation of the Australia-Japan Economic Partnership Agreement, Australian beef has a 10% tariff advantage over U.S. beef.

For more information, please view the full NCBA news release online.

— Adapted from a release by the National Cattlemen’s Beef Association.

March 1 Angus Deadlines

Registration deadlines are fast approaching for two outstanding educational experiences offered by the American Angus Association. Seedstock breeders and commercial cattlemen alike are invited to apply for this year’s Beef Leaders Institute (BLI) and an upcoming Cattlemen’s Boot Camp hosted at Washington State University.

BLI is a premier leadership experience for Association members that provides a look into the entire beef supply chain, while enhancing participants knowledge of the Association and strengthening their leadership skills. Angus producers between 25-45 years old are encouraged to apply for the ninth annual BLI scheduled for June 20-24.

Cattle producers are also invited to gather for a Cattlemen’s Boot Camp April 15-16 at the Benton County Fairgrounds in Kennewick, Wash. The event is hosted by the Association in partnership with Washington State University (WSU), and provides purebred and commercial producers timely information presented by academic and industry professionals.

Registration information can be found in the complete article online.

— Adapted from a release by Jena McRell, Angus Media.

Make 2016 the Year of the Customer

The last quarter of 2015 has seen a significant market correction for feeder calves as cattle feeders struggle to find margins. A strengthening dollar will press the brake on exports, and retail prices are testing the limit of consumer willingness to purchase higher quantities of beef. While calf prices are likely to remain at profitable levels, especially for those producers who have maintained a disciplined approach to cost management while holding productivity at or above industry averages, there will be a collective tightening of the proverbial belt.

What does all of this mean for bull prices in 2016? Logic would suggest that willingness to bid up bulls across the board will soften as customers take a more conservative view. Is the sky falling? Hardly, but the game has changed and requires that the seedstock sector adjust accordingly. The central focus of seedstock enterprises for the foreseeable future should be directly on the customer.

— Adapted from an article by Tom Field for the Angus Journal.

Local Ranching Event Scheduled March 8

The Texas and Southwestern Cattle Raisers Association (TSCRA) will host a ranch gathering Tuesday, March 8, at the NRS Ranch Store in Decatur, Texas. Registration will begin at 5:30 p.m. followed by a complimentary beef dinner. The event is free and open to the public.

TSCRA Special Ranger John Bradshaw will provide a law enforcement update and offer ranchers information on how they can keep their livestock and equipment safe and secure. Attendees will also have the opportunity to participate in an industry expert panel covering topics from cattle markets to weather and everything in between. Additionally, TSCRA staff will update cattle raisers on important legislative issues. Please RSVP to 1-800-242-7820, ext. 192, or rsvp@tscra.org.

For more information, please view the Angus Journal Virtual Library calendar of upcoming events here.

— Adapted from a release by the Texas and Southwestern Cattle Raisers Association.

— Compiled by Paige Nelson, field editor, Angus Journal.

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