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Markets and Production
Editor and Contributor
Oklahoma's Latest Farm and Ranch News
Your Update from Ron Hays of RON
Tuesday, December 15, 2015
Derrell Peel Calls 2015 Cattle Market
"Agonizing and Frustrating" For Nearly Everyone Involved
Derrell Peel, Oklahoma State University Extension
Livestock Marketing Specialist, offers his economic analysis of the
beef cattle industry. This analysis is a part of the weekly series
known as the "Cow Calf Corner" published electronically by
Dr. Peel and Dr.
Glenn Selk. Today, Dr. Peel looks at where the cattle
market has landed as we approach the final trading days of 2015- and
what may happen to the market in 2016:
"The contrast between the beginning and end of 2015 is stark. It
has been a year of transition as the markets turned the corner from a
long run of up-trending prices to the reality that growing cattle
inventories and increasing beef production imply lower prices in the
future. The idea that things will change is not a surprise but how
that change will happen is most always impossible to predict. Cattle
and beef market fundamentals have not changed nearly as dramatically
as the recent volatility and freefalling prices would suggest; but
the process of changing market psychology from bullish to bearish is
emotional, often overly-dramatic and usually painful.
"The second half of 2015 has been agonizing and frustrating for
nearly everyone involved and the contrast between the annual averages
and the end-of-year conditions are marked. Cattle prices at the end
of the year are sharply lower, although 2015 will have the highest
average annual prices ever. Beef production in 2015 will be down
another 2-2.5 percent year over year, but production in the fourth
quarter will be up an estimated 1.5-2.0 percent year over year. The
annual comparisons of 2015 and 2016 will show sharp differences; with
average cattle prices lower and beef production increasing year over
year. However, most of the adjustments are already in place at the
end of 2015 and current conditions provide the starting point for
Read all of Dr. peel's analysis on the ups and downs of the 2015
cattle market and what that means for 2016- click
here to jump to the rest of his commentary.
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Oklahoma Senator Jim
Inhofe Applauds GAO Decision on EPA's Illegal Use of Social Media in
U.S. Sen. Jim
Inhofe (R-Okla.), chairman of the U.S. Senate
Environment and Public Works (EPW) Committee, today released a
statement after the Government Accountability Office (GAO) published
its legal decision that the U.S. Environmental Protection Agency
(EPA) violated prohibitions on the use of taxpayer dollars for covert
propaganda and unauthorized publicity as well as for indirect or
grassroots lobbying against legislation concerning EPA's
controversial Waters of the U.S. (WOTUS) rule:
"GAO's finding confirms what I have long suspected, that EPA
will go to extreme lengths and even violate the law to promote its
activist environmental agenda. Courts have already raised questions
about the legality of the Waters of the U.S. rule and have
temporarily halted it from going into effect. EPA officials act as if
the law does not apply to them, but this GAO opinion should serve as
another reminder that EPA officials are not above the
law. GAO's determination that EPA violated the ban
on covert propaganda and grassroots lobbying is especially
troubling. EPA's illegal attempts to manufacture
public support for its Waters of the United States rule and sway
Congressional opinion regarding legislation to address that rule have
undermined the integrity of the rulemaking process and demonstrated
how baseless this unprecedented expansion of EPA regulatory authority
really is. This opinion from GAO also bolsters our oversight of EPA
in other areas, as we continue to investigate and raise questions
about the process EPA used to develop the Clean Power Plan and its
coordination with environmental activists groups."
Read more about the GAO ruling by clicking
here- we also have a link to the complete ruling within our
Farm Bureau and NCBA
Weigh In on GAO Ruling Against EPA's Actions During WOTUS Public
Both the American
Farm Bureau and the National Cattlemen's Beef Association
have been quick to praise the findings of the non partisan GAO
regarding the EPA's handling of Social Media to shape comments given
to the agency during the Public Comment Period for the Waters of the
Farm Bureau's Bob
Stallman says "It's clear from this report that
EPA orchestrated this matter in a biased fashion. Now it's up to
Congress to clean up this mess by including a corrective measure in
the omnibus bill now taking shape on Capitol Hill.
"Courts already have declared serious doubts about the legal
authority for the rule. Now that it has become clear that the agency
used illegal tactics to manufacture ill-informed support for the
rule, Congress should act immediately to prohibit implementation of
this rule, which is the product of an unlawful and misguided
Read all of Stallman's comments by clicking
Likewise- NCBA President Phillip
Ellis says that "the EPA's zealous
advocacy of their rule in violation of federal law shows the extremes
to which this administration will go to subvert public opinion in
favor of their far-reaching environmental agenda."
Read all of the NCBA statement on this GAO ruling by clicking
$45,000 Raised Monday at
the Oklahoma National Stockyards- Helping Marine Bill Broadie with
His Steaks for Troops
It has become a tradition of December. For the sixth year, the cattle
buyers in Oklahoma City who buy thousands of cattle annually paused
on the day of the last sale of the year and said thanks to those who
are in our armed services and are the protectors of our freedom by
"bidding" on a single calf in the sale ring.
This tradition happened again on Monday at the Oklahoma National
Stockyards where 8,500 cattle went through the sale ring and were bid
on- but a single calf weighing 690 pounds was sold- and resold
multiple times for a grand total of just over $45,000- all to benefit
the All American Beef Battalion.
Standing beside the auctioneer was the Chairman of the AABF, Bill Broadie
of Ashland, Kansas. Broadie was in Vietnam in the late 1960s and came
home unappreciated, as did so many soldiers that were in that war. He
resolved that current members of our military should not have to feel
like they were outcasts as he did when he returned from Vietnam fifty
years ago. He and other like minded folks organized the All American
Beef Battalion "to support our brave troops fighting the global
war on terror."
We talked with Broadie after the fundraising was complete- and you
can hear his comments and learn more about his Steaks for Troops
efforts by clicking
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New Insecticide Developed
for Cattle Ear Tags, Aims to Break Insecticide Resistance With Flies
It's been a while since the cattle industry has had a
new ear tag with new chemistry to battle horn flies and face flies.
That's on the horizon for 2016. Bayer HealthCare Animal Health's new
insecticidal ear tag called Tolfenpro
Insecticide Ear Tag. It has a new active ingredient that will help
cattle producers control both horn flies and face flies. It will be
effective for beef cattle, non-lactating dairy cattle and lactating
Product Manager Bruce
Brinkmeyer says that Tolfenpro will offer cattle producers
a new active ingredient, Tolfenpyrad, in the pyrazole chemical class.
Both horn flies and face flies can be a big problem for cattle
producers in potentially spreading disease and reducing weight gain.
Brinkmeyer said horn flies are a huge economic expense. Because horn
flies don't have any previous experience with this chemical, he
expects strong efficacy and up to five months control of horn flies
from the Tolfenpro ear tag. Bayer is currently manufacturing and
boosting supplies. Brinkmeyer said the product will be available in
the spring of 2016.
I talked with Brinkmeyer about Bayer's plans on rolling out this new
fly control option in 2016 on the Beef Buzz. Click
or tap here to listen to this Beef Buzz featuring his comments.
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Argentine President Tells Farmers- No More Excuses- Start Producing
promised, the new Argentine President Mauricio Macri eliminated export
taxes on agricultural goods including beef, wheat and corn while
cutting a tariff on soybeans by 5 percentage points- this on his
first day in office.
President Macri told farmers as he took office "there are no
more excuses to not produce more." Export tariffs were increased
in the last decade in a bid to boost government revenue. The country
estimates that farmers had been holding on $11.4 billion worth of
corn, soybeans and wheat.
Argentine farmers have protested the taxes for several years. Export
tariff on soybeans will now be 30 percent. The taxes on beef, wheat
and corn were previously 15 percent, 23 percent, and 20 percent,
respectively. Argentina has shipped $17.9 billion of grains and
oilseeds abroad this year, the lowest for the period since 2009.
The taxes had been introduced in 2008 under the Peronist government
of former president Cristina
Kirchner. Protests over the steep rates paralyzed the
agriculture sector that year and turned into a crisis for her
There are also reports that the new President is looking at a
devaluation of the Argentine Peso to make both their farm products
and industrial goods cheaper in the short run on the international
marketplace- Macri needing the export dollars to help jumpstart the
economy in the new year.
A good overview of these early actions by President Macri is available
ICYMI- Cheri Long Talks
Ag in the Classroom with Ron Hays on In the Field
In Case You Missed It- a few weeks ago, we talked with Cheri Long of
the Oklahoma Ag in the Classroom program. Originally, this video was
scheduled to air the Saturday morning after Thanksgiving- but due to
the ice storm of that weekend, regular programming was preempted. As
a result, the video conversation between yours truly and Long was
aired on KWTV's News9 Saturday morning news report this past
Saturday, December 12th.
You can watch this update on the Ag in the Classroom efforts in the
state by clicking
We also have in our webstory with the video the earlier story we
posted talking about Ag in the Classroom over this past year and what
is ahead in 2016- and you will have a chance to hear our "off
camera" conversation with Cheri as well. Just click on that link
in the paragraph above.
thanks to Midwest Farms Shows , P & K Equipment, American Farmers
& Ranchers, KIS Futures
by Winfield, Stillwater Milling Company, Farm Assure, Pioneer Cellular, National Livestock
Credit Corporation and the Oklahoma Cattlemen's
Association for their support of our daily Farm News Update.
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