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Welcome to our Blog of the 2007 Cattle Industry Convention and Trade Show that is being staged this year at Opryland in Nashville.

Trade Show Spotlight- One of many interviews that we conducted on the floor of the Trade Show in Nashville was with Brian Bolton, CEO and President of AllFlex. Click here to listen to Ron visit with Bolton about why he believes that source verification can be profitable for the individual, while we need animal disease traceback that a national animal ID efforts gives us- he calls that for the greater good of  the cattle business.

Saturday evening: Here is a summary of what was done in the Stakeholders meeting on Saturday afternoon in Nashville as provided by our friend Joe Schuele:Renewable energy was arguably the hottest topic of the four-day convention, due to the surging demand for ethanol and its impact on feedgrain prices. Rapidly increasing prices for corn and other feedgrains have raised operating costs for cattle feeders over the past four months, which in turn has contributed to lower calf and feeder cattle prices.

The policy brought forward Friday by the NCBA Agriculture Policy Committee was approved in large part by NCBA members today, with modest modifications in the policy resolution language. The resolution voiced support for the nation’s commitment to reduced dependence on foreign energy, including efforts to develop renewable energy. But cattlemen called for transition to a market-based approach to renewable energy production, which would help level the playing field for cattle producers and other feedgrain users.

The resolution supports the “sunsetting” of fuel-blending tax credits and tariffs on imported ethanol, as these policies were primarily designed to boost the initial development in renewable fuel production and technology. With alternative fuel production now growing at an astounding pace, cattlemen do not consider it appropriate for Congress to renew these mechanisms in their present form when they expire near the end of the decade. The 54-cent per gallon tariff on imported ethanol is set to expire in 2009, while the 51-cent per gallon fuel-blending tax credit expires in 2010. NCBA members also called for greater policy emphasis to be placed on development of cellulostic fuels. Production of these fuel types does not rely on feedgrains and could have much less impact on grain prices.

NCBA members also approved policy with regard to live cattle trade with Canada. Currently, cattle and beef imports from Canada are limited to cattle 30 months of age or younger. A pending USDA proposal would allow beef from Canadian cattle of any age, and live cattle up to eight years of age.

Cattlemen did not reject the USDA proposal, but adopted a policy voicing concerns about its possible impact. The policy resolution approved by NCBA members demands permanent identification of all live cattle imported from Canada through harvest, and calls for USDA to develop an orderly market transition plan before expanding the scope of cattle and beef imports from Canada.

“NCBA believes in treating our trading partners as we would like to be treated,” said incoming NCBA President John Queen. “But we want free, fair and reliable trade. USDA must look at the big picture and take steps to ensure that U.S. cattlemen are rewarded – not penalized – for opening our market to a wider range of imports.”

Cloning was also a topic of discussion at the convention, primarily because of the draft risk assessment announced by the Food and Drug Administration (FDA) in December. FDA’s initial findings state that meat and milk from cloned animals and their offspring pose no health risk to consumers.

Cattlemen adopted a policy supporting the further development of cloning as one of many reproductive technologies that can be used to enhance the beef industry. But they also urged all technology companies and owners of cloned animals to voluntarily keep these animals and their offspring out of the food supply until FDA makes a final decision on its risk assessment.

NCBA members also proceeded with caution with regard to any changes in the Beef Checkoff Program. An industry-wide task force recently advanced a slate of recommendations for enhancing the checkoff, including an increase in the $1-per head checkoff rate (contingent on a producer referendum). But the policy resolution adopted by cattlemen seeks greater input and discussion on these task force recommendations, before giving them renewed consideration at next year’s convention.

Saturday morning 9 am- It is the final day of this event, and later today, Paul Hitch of Guymon will become the President Elect of NCBA.  At the same time, Jay O’Brien of Amarillo steps down as the Chairman of the CBB. Yesterday afternoon, we did a final interview with Jay as Chairman- he has been an excellent leader for the Checkoff organization over the past year. You can listen to our conversation with Jay by Clicking Here.

Friday afternoon 3:00 pm- There will be a meeting between the U.S. and South Korea in Seoul next Wednesday and Thursday, February 7th and 8th- so says Dr. Chuck Lambert of USDA.  Lambert will be a part of the U.S. team that will go for the two days of discussions and he tells us they are willing to stay longer if needbe.  They have told the U.S. officials they wnat to talk about commercially viable trade- so Dr. Lambert says they will leave Monday for Seoul. Click Here to listen to our conversation from just moments ago with Dr. Lambert during a break at the International Markets Commitee session. We also talk Japan with him.

 Friday Morning 11 AM- Secretary Johanns has finished his speech to the NCBA- no surprises.  Our friend Jeff Nalley from Kentucky did get a couple of questions with him and you can hear the Secretary talk Korea by Clicking Here

Friday Morning 10 AM- The Secretary of Agriculture is speaking at this time here in Nashville to the cattlemen gathered- and we’ll have a report if anything is said different from his stops from Wednesday and Thursday. Meanwhile, we continue to cover this meeting and we’re proud to share with you a conversation that we had this morning with Paul Hitch, currently the Vice President of the NCBA- and at end of this meeting the President Elect of the group. Click here to listen to Ron talk with this feedlot operator from Guymon.

Friday Morning 6:00 am- Howdy Neighbors and a Good morning to ya- we continue our coverage of the Cattle Industry Convention  from Nashville. One of the hot topics at the Region IV Caucus yesterday was the need to bring more money in from the Beef Checkoff- in other words raise it to $2 per head. Oklahoma Farmers Union VP Terry Detrick was one of those expressing his opinion - saying we need to educate the cattle producers in the country before we go and ask for that additional investment. We talked with Terry afterwards about his work on the Beef Checkoff Task Force and the need for that additional dollar. Click here to listen to Ron and Terry from Nashville on this subject.

Later this morning- Secretary Mike Johanns will pitch his farm bill proposal to the NCBA membership. It was said of the Secretary's trip to Tunica, Mississippi that he was selling- but that the cotton and rice farmers who showed up weren't buying his ideas on farm policy. We'll see what sort of reception the Secretary receives here in this venue.
 

4:00 pm- It’s getting into the late afternoon here in Nashville and this evening, the Oklahoma reception is planned and we are looking forward to visiting with many of the Oklahomans that we have not yet caught up with. This is a mighty big place to try to catch up with everybody. Before we head that direction, I wanted to share a conversation that I had with one of Oklahoma’s members on the Cattlemen’s Beef Board- Bob Drake. Click here to listen to Ron and Bob talk checkoff related issues.

10:00 am We are just out of the Cattlefax Seminar- and it was most interesting to say the least.  We will devote most of our Friday E-Mail to it tomorrow morning- but to give you a taste of the things that are ahead according to this organization- we are linking Randy Blach and his wrapup comments this morning. Cattlefax says that Cow-Calf Operators can stay profitable this coming year- but calf and yearling prices will be down- the average 550 pound calf price is projected to be $110, yearlings are guessed at $97-98 for the year and the average slaughter cattle price is a dollar cheaper than last year at $85, based on Cattlefax assumptions. Click here and listen to some of the BIG PICTURE things that Randy talked about as they wrapped up the session.

6:30 am: We are getting ready to head for the Cattle Fax Outlook Seminar- always a highlight of the annual meeting of NCBA.  As we head there to cover that for you, we say congratulations this morning to Brian Healey of Oklahoma who has been nominated to serve on  the Beef Board Operating Committee- where the money is REALLY allocated.

6:00 AM Thursday- Howdy Neighbors and Good Morning to you! We have a good explanation from Chief Economist Greg Doud of NCBA about the OIE designation of our BSE risk status that should be issued by May. In fact, we should be notified of what they plan to call our risk status by March 20th. Doud says that is the leverage we really need to push on trading partners like Korea- it allows us to say sound science is our position- backed up by the 140 countries that have agreed to be involved with the OIE.  Click Here to get today’s Beef Buzz which provides Greg’s explanation which is pretty good.

Midday Wednesday: We have two interviews that we wanted tos hare with you- we caught up this morning with Scott Dewald of the Oklahoma Cattlemen and chatted with him about the priorities for the some 200 Oklahomans that are here at the 2007 meeting- Click here to listen to Ron and Scott.

We also talked at length with one of the true legends in the farm policy arena- Dr. Barry Flinchbaugh of K-State- he is speaking on Wednesday afternoon here in Nashville and we talked with him about a variety of farm policy keys for 2007- including his first take on the Mike Johanns’ proposals for 2007 farm policy. Click here for that almost 12 minute conversation.

Tuesday Evening: We had the chance to visit with the head of the NCBA Washington Office, Jay Truitt about a variety of subjects that will be definitely a part of the conversation the next few days- and at top of that list is ethanol’s potential impact on the cattle industry- CLICK HERE to take a listen!

One discussion that we understand the NCBA officers and staff had during Tuesday meetings was some of the survey results from the Dollar per Head Beef Checkoff survey conducted by USDA. One finding from the study might discourage those who want to pursue a higher checkoff amount in the days to come was the 78% of surveyed producers who said leave the checkoff level alone. We understand that Paul Hitch, NCBA Vice President from Guymon told the other officers that this was a predictable response much like a survey that will ask people in they want to see their property taxes increased. Naturally, most will say NO! However, if you go in and educate the electorate that you need resources to build a new school or barn on the county fairgrounds or other needed local facility- then the answer becomes- how much is really needed- and is this a temporary tax and suddenly the conversation has changed course. Hitch says proponents of a higher checkoff will have to develop a strong case of why the money is needed and how it will be spent. Makes sense to me.

Tuesday morning 6 am:  Howdy Neighbors and Good Morning everybody!  We are actually sitting this morning in Bowling Green, Kentucky where my brother is a professor at Western Kentucky University and have gotten a bit of family time in before we head for Opryland this afternoon. This morning, I did want to mention one interesting subplot to the Cattle Industry Convention here in 2007- the work being done to find a replacement for virtually the only CEO the Beef Checkoff has ever had- Monte Reese. I learned back at the end of the American Farm Bureau convention that Monte had quietly announced his retirement from the CBB, effective the end of March. As you may know, Monte is an Oklahoman- was a farm broadcaster in an earlier life and worked under Russell Pierson at WKY Radio and TV. He also worked in Kansas in farm radio and then in the Farm Credit System during the dark days of the early 1980s before taking the job as the top hired hand for the CBB. He leaves big shoes to fill- as he has guided the CBB thru the drop in beef demand that we were seeing in the early 1990s to the point where we turned the ship around and got beef demand going back up! At the same time, he kept things on an even keel during all the craziness thrown at the checkoff by the LMA through the litigation that landed the Beef Checkoff before the U.S. Supreme Court. I remember very well that day seeing Monte outside on the Supreme Court steps as one of the first in line to get into the Supreme Court on the day of the arguments that was (and is) one of the highlights of my professional life- getting to sit just a few feet away from those Black Robed jurors as they conducted a lively debate over the merits of the case and of the checkoff. Of course, the Supremes ruled the Checkoff LEGAL and with that behind the CBB, now cattle producers face the task of finding Monte’s successor. It will be most interesting to visit with some of the key players in that search.

  As a teaser for what the convention is expected to include- you can click here and be taken to our Beef Buzz of last week that featured Renee Lloyd of NCBA as she described what Cattlemen’s College will be like this year. Check back often for the latest from Nashville and the Cattle Industry Convention 2007 style!

Kevin Good on Demand and Price

Brett Stuart on International trade

Mike Murphy on Grain outlook

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