Randy Blach Tells Cattlefax Seminar Attendees- We Have Got to Rebuild the Beef Cow Herd In the Next 1 to 4 Years

Cattlemen and women gathered Wednesday morning at the 2014 Cattle Industry Convention and National Cattlemen's Beef Association Trade Show to hear CattleFax market analysts' projections for the year ahead. 

Leading off the Outlook Seminar as has been a custom for years- Creighton University Professor Emeritus Art Douglas told the audience he expects improved moisture conditions in the majority of the United States, including improvements of the drought-affected areas of the west coast.

CattleFax Senior Analyst Kevin Good indicated the combination of improved moisture conditions resulting in lower input costs and record high calf values should lead to beef cow herd expansion beginning in 2014.

Beef production in the U.S. will fall, with per-capita supply declining 4.5 percent. However, he said the pork and poultry supplies are expected to increase, leaving total meat supplies near even. CattleFax projects the Retail Beef Demand Index will improve by one percent due to continued modest economic growth.

CattleFax CEO Randy Blach summarized the year ahead by saying almost all segments of the production chain will be profitable, although margin operators will continue to face challenges over the next few years.

Randy joins me for the latest Beef Buzz.  Click here to listen in or read more of this story. 

Vilsack Announces Fort Reno Among Regional Hubs to Mitigate Impacts of a Changing Climate

Agriculture Secretary Tom Vilsack announced yesterday the creation of the first ever Regional Hubs for Risk Adaptation and Mitigation to Climate Change at seven locations around the country, including Fort Reno, Okla. "Climate Hubs" will address increasing risks such as fires, invasive pests, devastating floods, and crippling droughts on a regional basis, aiming to translate science and research into information to farmers, ranchers, and forest landowners on ways to adapt and adjust their resource management. In his State of the Union Address, President Obama pledged that his Administration will continue to do everything in its power to act on climate change. Today's announcement is part of the President's Climate Action Plan to responsibly cut carbon pollution, slow the effects of climate change and put America on track to a cleaner environment.

"For generations, America's farmers, ranchers and forest landowners have innovated and adapted to challenges. Today, they face a new and more complex threat in the form of a changing and shifting climate, which impacts both our nation's forests and our farmers' bottom lines," said Vilsack. "USDA's Climate Hubs are part of our broad commitment to developing the next generation of climate solutions, so that our agricultural leaders have the modern technologies and tools they need to adapt and succeed in the face of a changing climate."

You can read the rest of this story by clicking here. 

Don Close of Rabobank Calls for Beef Industry to Adapt to 'Ground Beef Nation' 

Changing consumer preferences and a production model tailored to the production of top-shelf steaks has put the U.S. cattle industry in a position losing market share to competitive proteins, according to a new report from the Rabobank Food & Agribusiness Research (FAR) and Advisory group. The report, "Ground Beef Nation," notes the industry needs to change the way beef is produced in order to remain competitive in the protein market. 

"Under the existing business model, the U.S. cattle industry manages all fed beef as if it were destined for the center of the plate at a white table cloth restaurant," notes Rabobank cattle economist Don Close. "The industry is, essentially, producing an extraordinarily high-grade product for consumers who desire to purchase a commodity. More than 60 of U.S. beef consumption is ground product. If the U.S. cattle industry continues to produce ground beef in a structure better suited to high-end cuts, the result will be continued erosion of market share." 

Close spoke with me at the Cattle Industry Convention in Nashville, Tenn. You can hear our conversation by clicking here. 

Novozymes praised the Senate for passing a farm bill 68 to 32 with nearly $900 million in dedicated funding for some of the nation's most critical energy and job-creation programs, including advanced biofuels. The bill also expands biomass programs at the United States Department of Agriculture (USDA) to include bio-based product and renewable chemical development, creating more opportunity for new jobs at the country's growing biorefinery manufacturing hubs. The House passed the bill last week 251 to 166.

"America's farmers are core to the innovation that's driven down our dependence on foreign oil - and this policy will help keep them doing it," said Adam Monroe, Novozymes Regional President of the Americas. "There's already enough concern about energy policy in America with EPA's proposed revisions to the Renewable Fuel Standard. It's a powerful sign to see policy certainty surrounding the energy programs in the farm bill. We thank Congress for taking action and we urge President Obama to swiftly sign it." 

Click here for more.

Case IH Survey: Livestock Producers Want Easier Maintenance, Crop Producers Respect Resale

When it comes to farm equipment purchases, livestock producers think more about the ease of maintenance, while crop producers think more about the predictability of it, according to a survey of 800 livestock and crop producers across North America. 

Producers in the study, sponsored by Case IH, who reported a significant portion of their income as generated from livestock operations say they look for low maintenance and easy-to-service equipment from an innovative manufacturer. Those who reported a significant portion of their income as generated from crop operations also rank innovation near the top of their list, but reliability and resale value rate even higher.

"A big difference between livestock and crop producers when it comes to equipment is usage," says Ryan Drollette, farm management specialist from Iowa State University Extension and Outreach. "Livestock producers run their equipment every single day, while crop producers are running them for longer periods of time during select seasons." 

You can read the rest of this story on our website by clicking here.

AFBF Says Farm Data Should Remain Producer's Property

Bob Stallman, PresidentAmerican Farm Bureau Federation issued the following statement:

"Proprietary data collected from individual farms is valuable and should remain the property of the farmer. As innovation and technology using this data expands to provide farmers new management tools, protecting the privacy of this data is paramount. Farm Bureau will continue to work to ensure that a farmer's data, whether related to seed or other crop inputs, the production system used, and both business and personal information, is extended the highest degree of protection. 

"The farmer and rancher delegates attending our annual convention this year felt so strongly about these matters that they gave clear direction and approved strong policy resolutions on the so-called 'big-data' issue as it relates to data privacy, ownership and use in agricultural production. We will continue to advocate for farmers whenever this issue is raised, and we will provide thought leadership on production-related data privacy issues."

Click here to read more from Bob Stallman.  

This N That- Nashville Cats, Superior Auction Preview and Auctioneers Chanting  

The final General Session of the Cattle Industry Convention here in Nashville happens this morning- then there will be a busy afternoon of Committee Meetings being held- looking at everything from property rights to international trade to the image of beef.

It appears a couple of Oklahomans will be serving in key national roles in the coming year.  Richard Gebhart is finishing his year as the Chairman of the Federation Division of the NCBA- and will be appointed by the new President, Bob McCan of Texas to become the Secretary-Treasurer of the NCBA.  Clay Burtrum has one more year to serve on the Executive Committee of the NCBA, and will also serve as member of the Operating Committee for the next year- the Operating Committee is the group that makes the decisions about how to invest the dollar per head beef checkoff (or at least the porion of the money sent to the Cattlemen's Beef Promotion Board.

**********

This Friday's Superior Video Livestock Market is going to be a dandy- over 46,000 head to be sold on Rural TV on DISH as well as on Superior Click to Bid.Com.

For more information on the sale that starts Friday morning at 8 AM, you can click here or call 1-800-422-2117.

********** 

Finally- a quick reminder about this weekend's meeting of the Oklahoma Auctioneers- set for Friday through Sunday at the Embassy Suites on south Meridian in Oklahoma City.

Click here for more details.