President's Thoughts

Andy Bishop KCA President

As I write this article the Kentucky State Fair is just around the corner, which means summer break for students is coming to an end. I can still remember the nostalgia of school starting back, high school football season, and for most of us farm kids, tobacco harvest in the Bluegrass! The dog days of summer gave way to cool, foggy mornings and a crispness in the air that meant winter was approaching. Now that I am older, the trigger for those memories is the Cattle Industry Summer Business Meeting in August, then state fair and stockpiling tall fescue. I certainly don’t miss cutting tobacco nor bending over all day hanging burley in the barn but hate that my children will miss out on the opportunity for one of the biggest “character building” jobs in the Southeast. One thing was for certain, tobacco harvest separated the “men from the boys” and the “women from the girls!”

The Cattle Industry Summer Business Meeting was recently held in San Diego, U.S. producers came together to discuss issues facing the industry, submit resolutions for ag policy, and most importantly, network with each other. Being on the Checkoff side of things, I spent very little time on the policy side at these meetings. I am busy with the Checkoff committees who are gathered to listen contractors present their annual requests in hopes of obtaining funding to administer Checkoff programming for 2024. There are six Checkoff committees made up of 101 Cattlemen’s Beef Board members (producers) appointed by the U.S. Secretary of Agriculture and 101 producers, which represent the Federation of State Beef Councils from 43 states. Those committees are Consumer Trust, Domestic Marketing, International Marketing, Nutrition and Health, Safety and Product Innovation, and Stakeholder Engagement. Nine contractors to the Beef Checkoff submit authorization requests for funding to the Beef Board and present those requests to committee members at Summer Business Meeting. Committee members have time to ask questions, give feedback and then score the requests and submit comments to the Beef Promotion and Operating Committee (BPOC), who will ultimately decide how funds will be allocated for 2024. The BPOC is made up of 10 elected Beef Board members and 10 elected federation members, who interview with producer-led nominating committees. The budget set by the Cattlemen’s Beef Board for 2024 is roughly $36 million, which is down from previous years. The BPOC has the tough task in September of voting how the $49 million in requests for funding are whittled down to meet the $36 million budget. Keep in mind that once those funds are allocated, contractors still must administer the programs and then seek reimbursement after those programs have been reviewed by the Cattlemen’s Beef Board and the USDA. Many producers feel that contractors get a checkbook to spend at will which simply just isn’t the case. I look forward to highlighting the programming in future articles, but in the meantime, you can visit www.beefboard. org or drivingdemandforbeef.com to learn more about how your checkoff dollars are being utilized to increase beef demand.

Dave, Carey Brown, Cary King and Jeff Pettit also attended Summer Business Meeting and fortunately, were able to participate in some lengthy policy discussions in my absence. Cary King sits on the NCBA resolutions committee, which can be a hotseat at times when groups are discussing controversial topics within the industry. I am proud to see Cary continue to volunteer his time for the industry and see firsthand the importance of having Kentucky representation on as many national committees as possible to ensure our voice is heard. Topics at this year’s meetings were the fighting the OFF Act, Livestock Mandatory Price Reporting, prompt payment on cattle purchases, cell-cultured meat, trade, traceability and many more. These discussions are producer led and show that we can all have different opinions, but at the end of the day we are in this together and need to put our heads together to develop a solution that works for the good of the industry. Finishing the article on a bright note, Randy Blach from CattleFax gave his midyear report and projections for the industry for 2024. As you already know, cow numbers are down and are nearing 2013/2014 levels, which means prices are strong and getting stronger. Beef demand is holding strong thanks to the work of the Checkoff. Producers should be in a good position going into 2024 where fed cattle could reach $205/cwt plus. I recently watched a Superior sale where 415-pound calves brought $4 for fall delivery out west. These numbers just don’t seem realistic. Oddly enough, a good friend of mine was the contending bidder on those calves, so I asked him how he penciled in a breakeven on a $1,700 calf with 1,100 pounds of gain left. His plans were to graze those calves in Colorado for the fall then ship them to California to graze through the winter and spring and sell them in late spring weighing 935 pounds with a breakeven of $2,075 per head or $221/cwt. He would lock in a profit of nearly $300 per head using futures or Livestock Risk Protection, which seems unfathomable. I make this example to show the resiliency of the American cattleman and outside-thebox thinking which makes this industry work. Now where those calves end up pricewise as a fat steer and who feeds them is the next question, but I can assure that at $200,000 per semi load, those folks have sharp pencils and aren’t “riding the market.” Be smart folks, and take advantage of these strong calf prices, but don’t let it be another 2014/2015 situation, where we get complacent and forget to utilize the tools to protect our investments such as LRP and futures. Enjoy a few good years and always remember this, the moment a producer tells you that calves will NEVER be under $2 again, you better purchase insurance!

Ryan Quarles Commissioner of Agriculture

As the weather begins to cool in September, I encourage all Kentuckians to come outside and celebrate Kentucky Agritourism Month at a Kentucky farm destination.

At a time when money is tight and gas is expensive, you and your family can have a great time at a Kentucky farm without breaking the bank. Plus, you can keep your entertainment and food dollars close to home while helping a Kentucky farmer earn a living.

If you’ve ever visited a pumpkin patch or toured a Kentucky horse farm, you’ve experienced agritourism. It is defined as “the act of visiting a working farm or any agricultural, horticultural, or agribusiness operation for the purpose of enjoyment, education, or active involvement in the activities of the farm or operation.” That’s a mouthful, so I just say, “Kentucky Farms Are Fun.”

Farm tourism is a terrific way to explore Kentucky while supporting our hardworking farm families. With our busy schedules and kids back in school, most of us are limited on the number of vacations or weekend getaways we can plan this time of year. A Kentucky farm tour can be a spontaneous day trip – a fun experience for the whole family or an impromptu adventure for you and your significant other.

There’s no shortage of things to do on Kentucky farms. Kentucky offers a veritable treasure trove of more than 500 agritourism destinations. Here are just a few: u-pick orchards, corn mazes, hay slides, hayrides, horse trail riding, hunting preserves, live music, wine tastings, breweries and distilleries, garden and nursery tours, wedding venues, farm stays and bed and breakfasts, retreats, educational events, fresh Kentucky Proud food, unique farm markets that sell numerous Kentucky Proud products, and many more activities and attractions. Festivals, concerts, and other special events are scheduled all month long in September and throughout the fall. You can find a list of Kentucky agritourism locations, broken down by category, at https://kyproud.com/programs/farms-are-fun/.

A few decades ago, many Kentucky family farms relied upon tobacco as a primary source of farm income. In the years of tobacco’s decline, many farm families began to look for ways to replace lost income. Agritourism became a welcome source. Now, agritourism venues are a key component of Kentucky’s economy, providing additional income to help supplement existing farm operations. Kentucky’s agritourism industry employs many people and contributes to our ag economy. All the while, they help educate people about the basics of how food gets from the farm gate to the dinner plate.

Today, many Kentuckians have no direct connection to farm life, even in rural areas. Agritourism gives people an opportunity to better understand the skill and hard work that go into producing the abundant food and fiber that we all enjoy.

The most recent Census of Agriculture in 2017 listed 651 Kentucky farms involved in “agritourism and recreational services.” Income increased by $10 million in five years, from just over $7 million in the 2012 census to more than $17 million in 2017.

It’ll be interesting to see the most recent agritourism numbers from the 2022 census when they are released next year.

Maternal Matters!

At Red Hill Farms, our maternal selection goals include cows that have longevity, breed regularly, calve easily and early in the breeding season, and wean a high percent of their body weight. In addition, we put extra emphasis on udders, feet and disposition. Profitability starts with the cow!