Virginia Cattlemen November 2015 Newspaper

The Virginia Cattleman

November 2015 Contest Photo Taken By: Bob Munsey.

Volume 37 Number 11 Circulation 8,000 November 2015

What’s Inside

Page 6 - A CROSSROADS FOR BEEF Page 18 - MINERAL NEEDS OF CATTLE CHANGE THROUGHOUT THE YEAR Page 27 - EVALUATING FARM FINANCIAL HEALTH Page 39 - OUTLOOK FOR WORLD BEEF MARKETS

The Virginia Cattleman P.O. Box 9 Daleville, VA 24083-0009

Non-Profit Organization U.S. Postage PAID Daleville, VA 24083 Permit No. 8

Opportunities

PAGE 2, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

By: Jason Carter

Fall is in full swing in Virginia now and the cooler temperatures outside certainly warm my heart inside. I have always been a big fan of fall both for the climate change as well as the change in activities. Fall harvest brings a great sense of accomplishment. I remember as a young boy getting to ride along in the wagon behind the corn picker dodging ears as they flew out to keep the pile pushed around for efficient fill. I remember the smell of tobacco curing in smoking barns and firing up the wood stove in the morning and having to shut the dampers by dinner time. College football is greatly anticipated as well, and until a recent graduation, I also had the Friday night lights to look forward to. August through October

is a good calving time for Virginia producers. A friend recently reminded me how nice it was to tag newborns at 6 PM under God’s light and not by flashlight. Finally I’m a lover of apple butter. I’m not a paid spokesperson, and everyone has their preferences, but I’ll tell anyone Silver Creek & Seaman’s Orchard’s apple butter in Tyro, VA is world class.

The cattle market finally made a positive shift in mid-October with fed and feeder cattle values regaining a little of the nearly $50/cwt those contracts had lost since all-time highs nearly a year ago. There has been a slight uptick in thru put of calves in the markets that those waiting for better prices were able to pull the trigger on. Overall however, we have seen market volume remain relatively

low compared to 2014. Is it a function of fewer cows or cattle? I still contend that the number of actual females in the Commonwealth has not decreased a great deal in 2015. There has been great incentive since last fall to get them bred and maintain herd size if not grow some. The all-time highs last year were unquestionably unsustainable and we were due for a correction. It probably was more massive than needed or anticipated by most but nonetheless all markets find equilibrium once expansion begins in earnest. The old cattle cycle days have been in hiding for some time since the down years of the mid 1990s and the debacle of government subsidized ethanol in 2006. Subsidizing ethanol has been a man-made disaster for the livestock business and the Midwestern drought was a natural one. Both coupled to drive herd contraction that married up with a weak

economy and strong export demand to cause demand to explode in times of short supply. The outlook is still very positive for the cow/calf producer and green grass every spring will continue to underpin this business.

A new legislative season will be underway in Virginia soon and VCA will have priorities for a number of issues and not the least of which being funding for the SL-6 BMP or cost share for stream fencing from livestock. The 100% cost share that was offered for this program was well received but has placed a great burden on the state to assure adequate funding. There is also an equal burden on our industry and local Soil & Water Conservation Districts to consider where priorities are for available funding both of this program as well as other well deserving BMPs. I stated recently at a Technical Advisory Committee meeting of DCR that it may be necessary

to both develop a uniform statewide scorecard for evaluating SL-6 requests along with funding for these programs coming directly from the state as opposed to by SWCD as it does now. This is certainly not meant to undermine the authority or relationships of the local SWCD Boards. Unfortunately the obligations to the program outweigh the resources currently and the cattle business benefits from implementation where there is critical need and operational improvement potential first and foremost.

A fallacy of the program has sometimes been that fencing more linear feet is always best. That’s how we spend over $100K to exclude two cows and that’s purely waste.

Bad for tax payers and bad for the cattle business. Clean water is a priority for all of us.

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 3

Ginger Hill Real World Premium Angus Bull & Female Sale Noon (EST) * Saturday, November 21, 2015 at Culpeper Agricultural Enterprises, Culpeper, VA SELLING: 50 Fall Yearling Angus Bulls 30 Fall Angus Cow/Calf Pairs

GINGER HILL HELEN 654

She sells with a fall heifer calf by Ginger Hill COOL 203.

CED BW WW YW MILK +1 +3.7 +42 +79 +26 ® This Pathfinder Dam is regarded as the most proven and powerful female ever sold at Ginger Hill. She is the dam of Ginger Hill Duke 808 and a maternal sister to the dam of Ginger Hill Treasure 233.

REFERENCE SIRES: Cole Creek Black Bore 572 • Ginger Hill Treasure 233 • Ginger Hill COOL 203 Cole Creek Black Cedar 1100 • VDAR Really Windy 4097 • Crook Mt Really Windy 141 Ginger Hill Really Windy 213

GINGER HILL BLACKBIRD 662 – She sells with a fall calf at side.

CED BW WW YW MILK +6 +.8 +46 +83 +23 Sire: CAR Duke 104

GINGER HILL HELEN 080 – She sells with a fall calf at side.

CED BW WW YW MILK +6 +1.3 +35 +82 +30 Sire: Ginger Hill Duke 719

Ginger Hill Black Bore 402 – He sells CED BW WW YW MILK +9 +.5 +50 +89 +25 Sire: Cole Creek Black Bore 572

Ginger Hill Black Cedar 428 – He sells CED BW WW YW MILK +5 +1.0 +44 +79 +29 Sire: Cole Creek Black Cedar 1100

GINGER HILL HELEN 883 – She sells with a fall calf at side.

CED BW WW YW MILK +4 +2.0 +45 +84 +26 Sire: Ginger Hill Treasure 429

Ginger Hill Black Bore 4052 – He sells CED BW WW YW MILK +4 +2.3 +50 +94 +29 Sire: Cole Creek Black Bore 572

FERTILITY * CALVING-EASE * MATERNAL * MUSCLE Raising Angus the commercial way since 1956. Ginger Hill cows get only fescue grass and fescue hay through the winter – no corn, no silage, no protein tubs and no creep feeders. Conception rate of 98% in the first 60 days of 2015 breeding season. The bulls were developed on grass and hand fed a ration with fertility and longevity in mind, not fattened. They are docile, virile, sound footed and offer outcross genetics for the majority of the industry.

GINGER HILL ANGUS

Washington, VA Brooke Miller (540) 522-8363 Hodge Miller (540) 272-4967 Request a Sale Book @ GingerHillAngus.com or by calling (540) 522-8363 Sale Managed by American Angus Hall of Fame, (816) 532-0811, angushall@earthlink.net 1

■

ANGUSJournal

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March 2005

PAGE 4, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

The Virginia Cattlemen’s Association Affiliated with the National Cattlemen’s Beef Assoc.

P.O. Box 9 Daleville, Va24083-0009 540/992-1009 www.vacattlemen.org

The Virginia Cattleman 540/992-1011 540/992-4632 - FAX published monthly by the Virginia Cattlemen’s Association

Jason Carter ....................... Stuarts Draft Executive Secretary Butch Foster.................................. Bristol Field Manager Troy Lawson...........................Churchville Field Manager

FEEDER COUNCIL

Glenn Wheeler ............................... Atkins Region 1 Chuck Miller ................................Crockett Region 2 Joe Meek ....................................... Dublin Region 3 Forrest Ashby.............................Staunton Region 4 Rick Matthews.........................Browntown Region 5 Steve Hopkins...............................Louisa Region 6 Tom Nixon.................................. Rapidan Region 6 Brett Stratton Region 7 Andy Smith Director at Large

POLICY & INDUSTRY ADVOCACY BOARD Gene Copenhaver...............Meadowview District 1 Joey Davenport...................Glade Spring District 1 Bill McDonald .........................Blacksburg District 2 Steve Furrow.......................Rocky Mount District 2 Bill Tucker .................................. Amherst District 3 Jon Repair ................................ Glasgow District 3 Jared Burner .................................. Luray District 4 Allen Heishman......................... Edinburg District 4 John Goodwin ............................. Orange District 5 James Kean..................................Louisa District 5 Jay Calhoun.............................. Callands District 6 Mike Henry........................... Chesterfield District 6 Editor...................................... Jason Carter jcarter@vacattlemen.org Publication Coordinator...Jacquelynn Davis jdavis@vacattlemen.org Issued the first week of each month. Copy deadline the 15th of the previous month.

The Virginia Cattleman is sent to members of the Virginia Cattlemen’s Association. Annual dues are $50/year or participation in the Association’s Feeder Cattle marketing Program. Complimentary copies are sent to various supporters of the Virginia Cattle Industry.

A Member of:

LPC LIVESTOCK PUBLICATIONS COUNCIL

Virginia’s Weekly Market Reports

October 1, 2015 State Graded Feeder Steers, Medium and Large 1 400-500 lbs 140.00-205.00, mostly 186.00-205.00, average 197.80 500-600 lbs 121.00-192.75, mostly 172.00-192.75, average 180.33 600-700 lbs 141.00-181.00, mostly 165.00-181.00, average 173.22 700-800 lbs 146.00-183.50, mostly 163.00-183.50, average 171.14 State Graded Feeder Heifers, Medium and Large 1 400-500 lbs 148.00-176.00, mostly 158.00-176.00, average 169.78 500-600 lbs 134.00-172.50, mostly 155.00-172.50, average 163.10 600-700 lbs 138.00-167.50, mostly 150.00-167.50, average 157.68 700-800 lbs 118.00-164.00, mostly 132.00-162.00, average 150.50 Slaughter Cows Boning, 800-1200 lbs, 64.00-97.00, average 79.09 Breakers, 1200-1600 lbs, 72.00-96.00, average 84.53 October 8, 2015 State Graded Feeder Steers, Medium and Large 1 400-500 lbs 169.00-193.50, average 187.19 500-600 lbs 143.00-184.00, mostly 165.00-184.00, average 170.55 600-700 lbs 150.00-166.00, average 158.95 700-800 lbs 139.00-166.00, mostly 155.00-166.00, average 162.46 State Graded Feeder Heifers, Medium and Large 1 400-500 lbs 131.00-165.00, mostly 142.00-158.00, average 150.26 500-600 lbs 126.00-152.00, mostly 138.00-152.00, average 146.82 600-700 lbs 121.00-161.00, mostly 121.00-141.00, average

131.76 700-800 lbs 110.00-150.00, mostly 110.00-129.00, average 128.22

age 68.23 Breakers, 1200-1600 lbs, 61.00-80.00, average 71.75

Slaughter Cows Boning, 800-1200 lbs, 54.00-95.00, average 73.89 Breakers, 1200-1600 lbs, 67.00-89.50, average 80.29

October 22, 2015

October 15, 2015 State Graded Feeder Steers, Medium and Large 1 400-500 lbs 122.00-204.00, mostly 180.00-204.00, average 191.47 500-600 lbs 125.00-200.00, mostly 172.00-189.00, average 181.91 600-700 lbs 115.00-183.50, mostly 155.00-173.50, average 168.80 700-800 lbs 149.00-183.00, mostly 164.00-183.00, average 166.86 State Graded Feeder Heifers, Medium and Large 1 400-500 lbs 125.00-174.75, mostly 150.00-171.00, average 169.97 500-600 lbs 149.00-177.00, mostly 152.50-165.00, average 162.03 600-700 lbs 133.00-169.50, mostly 135.00-156.50, average 153.03 700-800 lbs 120.00-163.50, mostly 149.00-163.50, average 152.02

State Graded Feeder Steers, Medium and Large 1 400-500 lbs 169.00-225.50, mostly 204.00-220.50, average 212.34 500-600 lbs 157.00-213.00, mostly 191.00-213.00, average 196.97 600-700 lbs 120.00-200.50, mostly 170.50-188.50, average 179.34 700-800 lbs 154.00-200.75, mostly 175.50-200.75, average 188.75 State Graded Feeder Heifers, Medium and Large 1 400-500 lbs 130.00-190.00, mostly 179.00-189.00, average 181.01 500-600 lbs 130.00-193.00, mostly 168.00-182.00, average 174.59 600-700 lbs 129.00-173.00, mostly 156.00-173.00, average 161.73 700-800 lbs 131.00-175.00, mostly 155.00-175.00, average 167.83 Slaughter Cows Boning, 800-1200 lbs, 62.00-86.00, average 72.89 Breakers, 1200-1600 lbs, 64.00-82.50, average 74.89

Slaughter Cows Boning, 800-1200 lbs, 60.00-84.00, aver-

Virginia Cattlemen's Association Sponsored Graded Sales Schedule

Check our website at www.vacattlemen.org for updates CONTACT LIVESTOCK MARKETS OR VCA STAFF FOR QUESTIONS VCA 540-992-1009 Butch Foster 423-360-0434 Troy Lawson 540-430-0042 November 2015

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 5

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BALANCER SIRES:

BALANCER Sale Bulls Average:

ANGUS SIRES:

KCF Bennett Absolute KCF Bennett Fortress KCF Bennett Southside ANGUS EXAR Denver 2002B Sale Bulls Average: Connealy Black Granite CE DOC +9 +20 Fintry of Graham 48708 AAR Ten X 7008SA BW +0.6 MARB +0.73 EF Authentic 0829 WW +63 REA +0.73 GAR Prophet, VAR Reserve 1111 YW +112 $W +73.80 Connealy Covenant Connealy Final Solution MILK +30 $B +134.97 Connealy Beacon

17659 Red House Road • Red House, Virginia 23963 Martha Johnson, Office Manager (434) 376-3567 • Fax (434) 376-7008 knollcrest@hughes.net • www.knollcrestfarm.com

BMI INDEX CHB INDEX

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KCF Bennett Encore Z311 KCF Bennett Revolution X51 RST 0124 Times A Wastin 2107 KCF Bennett Influence Z80 NJW 73S W18 Hometown 10Y Hyalite On Target 936 NJW 73S M326 Trust 100W Churchill Sensation 028X CRR 719 Catapult 109 NJW 98S R117 Ribeye 88X Genoas Bonanza 11051

CE

+13

BW

-0.9

WW

+74

YW

+118

KCF Bennett Y6 KCF Bennett Y504 KCF Bennett U556 KCF Bennett Y353 REA KCF Bennett Benchmark MARB GAR Prophet FPI Connealy Covenant INDEX +87.02 KCF Bennett U271 MILK

+29 +0.60 +0.42

GELBVIEH Sale Bulls Average: MILK CE +10 +35 REA +0.66 BW +0.3

GELBVIEH SIRES:

KCF Bennett X593 KCF Bennett U271

WW YW

+84 +116

MARB

-0.32

FPI INDEX

+72.61

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A Crossroads For Beef

PAGE 6, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Greg Henderson, AgWeb

Over the next two to three years, annual fall prices for weaned calves will likely struggle to match those of the previous year, a trend typical of an expansion phase. It doesn’t necessarily mean the good times are over for producers, but analysts believe consumer beef demand will play an increasing role in the success of your operation.

Continued on Page 10. with pastures and grassland re- strategies designed to strength- en beef demand are not worthy stored for most of the country and the feeling that feed prices will remain moderate, this expansion is off to a fast start.”

U.S. beef supplies were down O S T S!! about 6% in the last half of 2014 T N ER and about 4% in the first half of OU MB C E 2015, Hurt says. Beef supplies S DI A M will likely show a small growth C V of 1% in the second half of this year and expand by a more significant 4% in 2016. Often overlooked during last year’s profit windfall was the fact consumers continued to buy beef even as retail prices reached record levels.

“The consumer has been willing to pay more for beef and pork than we thought they would,” Tonsor says. Consumers are spending a smaller percentage of their disposable income on red meat than they used to, he Bulls Sired by These and other Leading Sires adds, but “the importance of demand will be clear over the next two to five years,” Tonsor says. “As supplies grow, prices will decline unless demand grows to more than offset supply-side pressure.”

“The U.S. beef industry is at a critical crossroads,” according to Glynn Tonsor and Ted Schroeder, Kansas State University agricultural economists. “The recent historically-tight cattle and beef supplies are shifting as cow-calf producers expand the breeding herd,” they say.

“The industry has enjoyed four consecutive years of aggregate beef demand growth.

Combined, tight supplies and strong beef demand led to beef and cattle prices that many never envisioned possible.” Last year’s historic prices—and this year’s precipitous decline— have led to the inevitable question: “What will beef demand Beef’s recent track record, look like in the coming years?” however, has been outstanding.

Beef demand has increased in The beef industry was long 17 of the past 20 quarters, datoverdue for expansion. 2014 ing back to mid-2010. More began with the smallest herd in recently, the beef demand index 60 years as a result of several during the first quarter of 2015 years of drought and high grain was 92.57, a 15% gain over the prices. The tightening numbers same quarter of 2014. Second left feed yards and packers quarter 2015 beef demand index scrambling for cattle, and pric- was 88.48, a 5.2% increase over es became a runaway. Coupled the same period last year. If dewith ample rainfall throughout mand continues to grow, Tonsor the Central Plains, those higher and Schroeder say relatively prices provided the incentive for small reductions in cattle pricproducers to expand their herd. es would occur “as expanding Already, agricultural econo- beef demand could absorb largmists see signs of aggressive er volumes without realizing expansion. “The nation’s beef substantial price declines from cow herd has started down the current levels.” Despite the repath of the largest expansion in cent success of beef demand, 25 years,” explains Chris Hurt, however, Tonsor and Schroeder economist, Purdue University. are less optimistic for the near “The last major expansion was future. “For a variety of reafrom 1990 to 1995 when the sons, we do not believe beef deherd grew by 10%. The industry mand will grow sufficiently in had started on a modest expan- the next few years to fully offsion in 2005 and 2006, but pro- set the expected rate of growing ducers aborted that expansion supplies”...“In other words, we cycle due to the Southern Plains expect lower fed cattle and beef drought and the start of the high prices than recently observed. feed price era late in 2006. Now, However, that does not suggest

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 7

PAGE 8, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

SHELTON ANGUS – DOGWOOD FARM – LOCUST LEVEL Fall Sale Saturday, November 21, 2015 12:30 p.m.

G & E Sale Facility Gretna, Virginia

LLF One Way Up 414

WHS Limelight 64V

* 75 Performance Tested Angus Bulls * Including a select set of Spring Yearlings * Data enhanced with 50K Genomic Testing

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*These Bulls and More like them Sale*

- LLF 030 Validation 434 – A DDF 03-05-14 son of Validation out of a full sister to the dam of One Way Up. - LLF 913 War Party 417 & LLF 913 War Party 411 – February 2014 flush brothers out of the dam of Validation.

- WHS All In 41C +14 CED, -1.0 BW, +67 WW, +114 YW, +86.39 $W, +154.12 $B, +30 DOC - DWF W Party of U1 B27 +1.9 BW, +121 YW, +161.85 $B - WHS Prophet C14 +86 WW, +148 YW, +101.18 $W, +166.02 $B, 1507 adj. yearling weight - DWF Safeguard of X2 B21 +181.55 $B - WHS Limelight 67C +16 CED, -2.2 BW, +116 YW, +161.72 $B LLF 141 Weigh Up 408 - DWF P Tool of T11 B30 +119 YW, 1409 adj. yearling weight This 02-03-14 Weigh Up son made choosing LLF - WHS Prophet C11 +72 WW, +127 YW, +166.96 $B - DWF War Party of 1708 B26 +15 CED, -1.4 BW, +104 YW One Way Up 414 a difficult choice for Select - WHS Capitalist C3 Powerful Capitalist son from the dam of Limelight Sires.

- LLF 913 Forward 4114 +.8 BW, +119 YW, son of Validation’s dam +1.1 BW, +75 WW, 142 YW, and +162.18 $B

Also offering a select group of pairs, bred cows, and herd building heifers like these: WHS Miss HD Burgess C2 +1.4BW, +66 WW, +115 YW, +168.44 $B DWF W Party of U5 B12 +59 WW, +109 YW, +150.64 $B WHS Prophet Burgess C8 +77 WW, +131 YW, +155.75 $B

Buddy Shelton Shelton Angus Farm 434-251-7149

Mike McDowell Locust Level Farm 434-575-4850

Marty Winn Dogwood Farm 276-732-1247

George Winn G & E Test Center 434-489-4458

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 9

FEED FIRST Avoid the Fall Slump in 2016 Ingleside Dairy, Lexington, VA

Charlie Leech of Ingleside Dairy in Lexington, VA has been growing and feeding Masters Choice (hybrids include 6753, 6581 & 6153) for five years in order to maximize milk production from his 350 head herd (400 mature cows and 400 heifers).

The benefits Charlie sees with Masters Choice are “increased digestibility, high starch availability and early feeding after harvest”. Masters Choice helps Ingleside Dairy avoid the typical fall milk production slump. Charlie plans to continue planting all of his silage needs in Masters Choice.

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PAGE 10, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

From Page 6 Crossroads

investments. In fact, striving to grow demand as supplies increase is immensely important to industry profitability.”

That view meshes with the recommendations from the National Cattlemen’s Beef Association and the Cattlemen’s Beef Board’s Beef Industry Long Range Plan Task Force, which agreed the single most important strategic objective the industry should pursue is increasing beef demand. This summer, the 16-member task force established a specific objective to “increase the wholesale beef demand index by 2% annually over the next five years.”

In their report, Tonsor and Schroeder listed five “key areas for the industry to use in prioritizing efforts focused on beef demand:” 1. Support expanded information regarding demand concepts 2. Assess international demand prospects and identify target countries/regions 3.

Assess implications of changes in composition of U.S. households 4. Improve perceived food safety and product quality profile of U.S. beef 5. Assess determinants of recent demand strength.

Increasing beef demand is the single most important strategic objective for the U.S. beef industry, according to the Beef Industry Long Range Plan Task Force. Meeting the objective of increasing the wholesale beef demand index by 2% annually will require resources be committed in four core strategies: Drive growth in beef exports, a strategy that focuses on gaining access to key markets and promoting the unique attributes of U.S. beef to foreign consumers.

Protect and enhance the business and political climate for beef, which begins with motivating stakeholders to become more engaged in policy concerns to improve the industry’s

effectiveness in managing political and regulatory issues that threaten the overall business climate of beef production, including assuring beef’s inclusion in dietary recommendations, exploration of new production technologies, crisis management planning, developing the next generation of beef industry stakeholders and other initiatives.

Grow consumer trust in beef and beef production, including a critical focus on antibiotic stewardship, the implementation of a certification/verification program and continued investment in beef safety initiatives. The task force said the entire beef community must be engaged and collaborate with a broad group of industry partners to Beef demand has increased in 17 of the past 20 quarters compared to the prior year. Additional inforprotect beef’s image. mation can be found at www.agmanager.info.

Promote and strengthen beef’s value proposition, a strategy invest in research that allows italize on media technologies to er-based market signals with designed to revolutionize beef the industry to communicate communicate beef’s value prop- product improvements and inmarketing and merchandising; beef’s nutritional benefits; cap- osition; and respond to consum- creased production efficiencies.

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 11

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PAGE 12, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

A Producer’s Beef Quality Assurance Guide for Judicious Use of Antimicrobials in Cattle

1. Prevent Problems: Emphasize appropriate husbandry and hygiene, routine health examinations, and vaccinations.

2. Select and Use Antibiotics Carefully: Consult with your veterinarian on the selection and use of antibiotics. Have a valid reason to use an antibiotic. Therapeutic alternatives should be considered prior to using antimicrobial therapy.

3. Avoid Using Antibiotics Important in Human Medicine as First Line Therapy: Avoid using as the first antibiotic those medications that are important to treating strategic human or animal infections.

4. Use the Laboratory to Help You Select Antibiotics: Culture and sensitivity test results should be used to aid in the selection of antimicrobials, whenever possible.

5. Combination Antibiotic Therapy is Discouraged Unless There

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Is Clear Evidence that the Specific Practice Is Beneficial: Select and utilize an antibiotic to affect a cure.

6. Avoid Inappropriate Antibiotic Use: Confine therapeutic antimicrobial use to appropriate clinical indications, avoiding inappropriate uses such as for the treatment of viral infections without bacterial complication.

7. Treatment Programs Should Reflect Best Use Principles: Regimens for therapeutic antimicrobial use should be optimized using current pharmacological information and principles.

8. Treat the Fewest Number of Animals Possible: Limit antibiotic use to sick or â&#x20AC;&#x153;at riskâ&#x20AC;? animals.

9. Treat for the Recommended Time Period: This will minimize the potential for bacteria to become resistant to antimicrobials.

10. Avoid Environmental Contamination with Antibiotics: Continued on Page 14.

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Feds Won’t Factor Environment Into Dietary Guidelines

PAGE 14, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Lydia Wheeler, The Hill

Obama administration officials assured House lawmakers during a hearing October 7th that environmental concerns won’t be factored into the new guidelines for what Americans should and shouldn’t be eating. While testifying alongside Health and Human Services Secretary Sylvia M. Burwell at a House Agriculture Committee hearing, Agriculture Secretary Tom Vilsack said the law should restrict the guidelines to dietary information only. Earlier this year, the Dietary Guidelines Advisory Committee — a federally appointed panel of nutritionists created in 1983 to help draft the guidelines —decided for the first time this year to factor in environmental sustainability in its recommendations.

“The [Dietary Guidelines] Advisory Committee’s report is not the guidelines and sometimes there’s confusion about that,” he said. “The report informs our

From Page 12 BQA

Steps should be taken to minimize antimicrobial drugs from reaching the environment through spillage, contaminated ground run off or aerosolization.

11. Keep Records of Antibiotic Use: Accurate records of treatment and associated outcomes should be used to evaluate therapeutic regimens and always follow proper withdrawal times.

12. Follow Label Directions: Follow label instructions and never use antibiotics other than as labeled without a valid veterinary prescription.

13. Extra-label Antibiotic Use Must Follow USDA Regulations: Prescriptions, including extra label use of medications, must meet the Animal Medicinal Drug Use Clarification Act (AMDUCA) amendments to the Food, Drug, and Cosmetic Act and its regulations. This includes having a valid Veterinary/Client/Patient Relationship (VCPR).

14. Sub therapeutic Antibiotic Use is Discouraged: Antibiotic use should be limited to the treatment, prevention or control of

work, but it certainly does not and should not dictate it.”

The agency heads first made the announcement in a joint blog post to settle a national food fight that erupted after the federally appointed panel of nutritionists appointed to help the agencies draft the guidelines decided for the first time this year to factor environmental sustainability into its recommendations. After arguing that the advisory panel had neither the authority nor the expertise to make such a judgment call, members of the meat industry praised the administration’s move.

“Cattle farmers and ranchers have made significant investments in nutrition research to understand beef’s role in a healthy diet,” Philip Ellis, president of the national Cattlemen’s

Beef Association, said in a statement. “Since the inception of the Dietary Guidelines in 1980 this research has been shared and it’s important for federal policies, like the 2015 Dietary Guidelines for Americans, to incorporate the latest nutrition evidence and recognize the role today’s lean beef plays in a healthy diet.”

During the hearing, Rep. Scott DesJarlais (R-Tenn.) asked Vilsack if he could assure him that the guidelines are going to be based on sound scientific evidence given the advisory committee’s decision to remove lean meat from its description of a healthy dietary pattern.

The 2010 dietary guidelines, he said recognized lean meat as a nutrient dense food and the scientific data has not changed.

“It’s my understanding – maybe I’m wrong about this – that the report basically described a consistent and direct recognition of the 2010 guidelines,” Vilsack said. “I’d be surprised if our final conclusion was not to include that.”

Rep. David Rouzer (R-N.C.) asked Burwell and Vilsack to remember that not all calories are the same. The human body reacts differently, he said to 2,000 calories of beef than it does to 2,000 calories of doughnuts. “I recognize science has improved dramatically, but mankind has survived for many thousands of years on red meat and whole milk,” he said.

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benefits of all meat and poultry products to develop a Dietary Guidelines for Americans best suited to achieve healthy outcomes for all Americans,” North American Meat Institute’s CEO Barry Carpenter said in a statement. Lawmakers also questioned why the administration is still formulating new guidelines every five years when the general public doesn’t appear to be paying attention.

“For those who are, they are very skeptical of the whole process,” Ranking Member Collin Peterson (D-Minn.) said. “For example, we were once told that butter and eggs were bad for you but now I guess they’re OK.” Peterson said most of his constituents no longer believe Continued on Page 15.

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 15

From Page 14

Dietary Guidelines in the guidelines. “You have lost your credibility with a lot of people and they are just flat out ignoring this stuff,” he said. “So that’s why I said I wonder why we are doing this?”

While Secretary Burwell explained that the science, particularly that regarding dietary cholesterol, has evolved over time, Vilsack said he believes the guidelines are merited as long as people understand what they are and what they are not.

“They are not a hard and fast set of rules,” he said. “They’re a set of guidelines, a framework, and they’re not about treating disease they are about preventing it.”

With 1 in every 3 school-aged children overweight or at obesity and 1 in every 3 adults suffering from cardio vascular disease and diabetes, Jim McGovern (D- Mass.) said clearly American can do better. “This is our attempt to do better,” he said of the dietary guidelines. “And if people aren’t interested in the well-being of our citizenry and all they are interested in is the bottom line, then our nation should be very supportive of what we’re talking about here today because at the end of the day, healthy people mean lower healthcare costs, so we all benefit here.”

In a statement following the hearing, Michael Jacobson, president of the Center for Science in the Public Interest, said he was surprised to see so many lawmakers raising questions about recommendations meant to improve public health.

“There’s a good reason why Americans concerned with their diet and health typically turn to a physician or a nutritionist and not a politician or a lobbyist for Big Food,” he said. Burwell said HHS and USDA expect to have the guidelines completed in December.

ANGUS FARM Thank you Spring Grove Ranch, Nathan Clarkson, Owner and Kevin Fleenor, General Manager for their purchase of 33 registered females from the heart of our herd. We know our cattle will serve you well and we very much appreciate your business!

We have increased our embryo transfer program and have concentrated our efforts on a few select donors such as SHAF Miss Skymere 631, our Impression daughter that is one of the best Angus cows we have ever had the opportunity to work with!

Her first calf was the 2014 High Indexing Bulls at the Virginia BCIA Culpeper Bull Test.

We have several full siblings on the ground now and they look the part-outstanding.

We are excited about the next chapter at SHAF!!

Please check out our consignment to the Virginia BCIA Bull Sale in Culpeper, December 12, 2015. Bull sired by Right Answer, War Party, and Impression will be available there and off the farm. Please contact Dennis Pearson, 540-3262222 for additional information.

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8459 March Wales Road Warrenton, Virginia 20186 Email: hokiefarmer@gmail.com

Certified Hereford Beef Enjoys Record Year

PAGE 16, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

As more and more consumers learn to rely on the consistency and promise of brand-name beef products, it’s a category that enjoys continued growth. Just ask the folks at Certified Hereford Beef. Certified Hereford Beef (CHB) LLC experienced a record year of growth during fiscal year 2015 with 51.2 million pounds of product sold — a 2% increase compared with the previous year’s total. Since 2008, CHB LLC has increased beef sales by 46%. Celebrating its 20th year as a brand, the CHB program continues to expand its market share and meet the needs of its customers.

CHB LLC staff, along with the program’s marketing partners, tout the advantages of CHB product in marketing differentiation when compared to other brands, along with the fact that it is a consistently tender, juicy and flavorful beef product. These advantages are fueling the brand’s advance in both food service and retail markets. Foodservice continues to provide the most growth opportunity for CHB LLC. As

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consumers continue to prepare fewer meals at home, CHB LLC staff has worked hard to supply a high-quality source of beef to restaurateurs and chefs through distributors around the country.

CHB LLC’s foodservice division experienced a 2 million pounds growth during FY 2015.

The following new distributors contributed to this increase: Cash WA Distribution, Kearney, NE; Sysco Virginia, Harrisonburg, VA; Crystal Creek Cattle CO, Ft Worth, TX; Golden Gate Meats, Sacramento, CA; and Sysco North Dakota, Fargo, ND. The program also experienced growth in its export sales to the Caribbean, Central and South America markets. A new opportunity explored, implemented and becoming an asset to the program this fiscal year was CHB value-added products.

“Adding value to CHB primal cuts is proving to be a great asset to CHB’s bottom line for retail and foodservice,” explains Mick Welch, CHB LLC vice president of sales. “As our distributors explore what their customer base is seeking for home or dinning out, CHB LLC staff is paying attention. Our customer base knows their businesses, and as their partner we want to respond to their needs and offer CHB value-added products that meets those needs.”

Since the beginning of CHB LLC 20 years ago, more than 5.3 million cattle have been identified, and more than 3.4 million

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carcasses certified to carry the CHB name at licensed packing partners. Continued growth of cattle numbers and CHB tonnage sold is expected moving forward as well as growth in the value of Hereford-influenced cattle. “Our consumers have

found the CHB-brand product meets their demand for a consistent, quality dining experience with a great value,” says David Trowbridge, CHB LLC board president. “Our producers, staff and packer partners work as a team to provide the highest

quality product and continue to build the CHB brand. Our legendary story and high-quality product value will continue to provide our CHB team with unlimited potential to provide the pull-thru demand for Hereford genetics.”

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 17

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Mineral Needs of Cattle Change Throughout the Year

PAGE 18, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Minerals are important building blocks of functional life. They aid in countless body processes.

When the body in question is a 1,500-pound beef cow whose purpose is to produce income, she may need supplemental minerals during several crucial periods throughout the year.

“Speaking specifically about the beef cow herd and production beef cows, they require macro minerals such as calcium, phosphorous, sodium, chlorine, potassium and magnesium,” said Chris Reinhardt, K-State Research and Extension beef specialist. “But they also have requirements for trace elements.”

These trace elements include, for example, copper, zinc, selenium, manganese and cobalt, in parts per million rather than percentages like the macro minerals, Reinhardt said. Some of these minerals are stored in the liver or other tissues during times of plenty for use during times of deficiency. “We need to be aware of the mineral balance in the forages a cow might be consuming, and we have to be aware of the demand that cow has for those minerals,” he said.

He outlined a scenario where a cow may have different needs: “Calcium is being drawn out in milk during lactation. Copper and zinc are used heavily for reproduction, during the gestation and during immune challenges. The needs of the cow change throughout the year, and the supply of minerals available changes tremendously throughout the year as well. Our job as producers is to make sure we are matching what the cow has access to with what her needs are.”

Clinical deficiencies of minerals occur when a required mineral has been deficient in the diet for an extended period of time, Reinhardt said. Producers can see these deficiencies in obvious outward symptoms showing the animal is lacking a mineral or minerals. He cited a classic example: “In the 1930s, we didn’t always supplement phosphorus to cows in the western range states. When cows become ex-

tremely phosphorus deficient, they will chew bones.” One of the clinical signs that indicates a cow is extremely deficient of phosphorus is she will not breed or have a calf. A cow cannot reproduce without adequate phosphorus. “However, in between adequate status and clinical deficiency is what we call subclinical deficiencies,” Reinhardt said. “These are where most of the deficiencies occur in the U.S. beef industry.”

For example, he said cows could be marginally copper deficient when they seem to produce well, but maybe their fertility doesn’t quite match up to the producer’s expectations.

In this case, the herd overall may be calving on time, but one cow that didn’t calve as expected. The cow in question may have looked fine and had access to the same food sources as the rest of the herd. This is why subclinical deficiencies are often difficult to detect and require a close watch.

Management tips to help producers “The first step is to assess the needs of the animal,” Reinhardt said. “For instance, a gestating cow requires different levels of calcium and phosphorus than does a lactating cow. When that cow is in the peak of lactation, we have to ensure the cow has access to adequate macro and trace minerals. “The second step of developing a strategy is assessing what is available to the animal,” he continued. “For example, in the spring when we have adequate rainfall to produce abundant, lush forage, the forage alone is adequate in phosphorus to meet most of the needs of a lactating cow. However, as that forage matures into summer months, phosphorus content will decline to well below the needs of a lactating cow.”

This is where producers need to intervene and ensure adequate provisions are made not only for calcium and phosphorus, but

also many of the trace minerals. initially want to have forages To determine the mineral content analyzed for mineral content, he in the

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Extended-Release Injectable Parasiticide 5% Sterile Solution NADA 141-327, Approved by FDA for subcutaneous injection For the Treatment and Control of Internal and External Parasites of Cattle on Pasture with Persistent Effectiveness CAUTION: Federal law restricts this drug to use by or on the order of a licensed veterinarian.

INDICATIONS FOR USE LONGRANGE, when administered at the recommended dose volume of 1 mL per 110 lb (50 kg) body weight, is effective in the treatment and control of 20 species and stages of internal and external parasites of cattle: Gastrointestinal Roundworms Lungworms Dictyocaulus viviparus Bunostomum phlebotomum – Adults and L4 – Adults Cooperia oncophora – Adults and L 4

Cooperia punctata – Adults and L4 Cooperia surnabada – Adults and L4 Haemonchus placei – Adults Oesophagostomum radiatum – Adults Ostertagia lyrata – Adults Ostertagia ostertagi – Adults, L4, and inhibited L4 Trichostrongylus axei – Adults and L4 Trichostrongylus colubriformis – Adults Parasites Gastrointestinal Roundworms Bunostomum phlebotomum Cooperia oncophora Cooperia punctata Haemonchus placei Oesophagostomum radiatum Ostertagia lyrata Ostertagia ostertagi Trichostrongylus axei Lungworms Dictyocaulus viviparus

SEASON-LONG PAR ASITE CONTROL • 15,000 HEAD • 9 STATES

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Grubs Hypoderma bovis

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Durations of Persistent Effectiveness 150 days 100 days 100 days 120 days 120 days 120 days 120 days 100 days 150 days

DOSAGE AND ADMINISTRATION LONGRANGE® (eprinomectin) should be given only by subcutaneous injection in front of the shoulder at the recommended dosage level of 1 mg eprinomectin per kg body weight (1 mL per 110 lb body weight).

WARNINGS AND PRECAUTIONS Withdrawal Periods and Residue Warnings Animals intended for human consumption must not be slaughtered within 48 days of the last treatment.

This drug product is not approved for use in female dairy cattle 20 months of age or older, including dry dairy cows. Use in these cattle may cause drug residues in milk and/or in calves born to these cows.

A withdrawal period has not been established for pre-ruminating calves.

Do not use in calves to be processed for veal.

Animal Safety Warnings and Precautions The product is likely to cause tissue damage at the site of injection, including possible granulomas and necrosis. These reactions have disappeared without treatment. Local tissue reaction may result in trim loss of edible tissue at slaughter.

Observe cattle for injection site reactions. If injection site reactions are suspected, consult your veterinarian. This product is not for intravenous or intramuscular use.

Protect product from light. LONGRANGE® (eprinomectin) has been developed specifically for use in cattle only. This product should not be used in other animal species.

When to Treat Cattle with Grubs LONGRANGE effectively controls all stages of cattle grubs. However, proper timing of treatment is important. For the most effective results, cattle should be treated as soon as possible after the end of the heel fly (warble fly) season.

Environmental Hazards Not for use in cattle managed in feedlots or under intensive rotational grazing because the environmental impact has not been evaluated for these scenarios.

Other Warnings: Underdosing and/or subtherapeutic concentrations of extendedrelease anthelmintic products may encourage the development of parasite resistance. It is recommended that parasite resistance be monitored following the use of any anthelmintic with the use of a fecal egg count reduction test program.

TARGET ANIMAL SAFETY Clinical studies have demonstrated the wide margin of safety of LONGRANGE® (eprinomectin). Overdosing at 3 to 5 times the recommended dose resulted in a statistically significant reduction in average weight gain when compared to the group tested at label dose. Treatment-related lesions observed in most cattle administered the product included swelling, hyperemia, or necrosis in the subcutaneous tissue of the skin. The administration of LONGRANGE at 3 times the recommended therapeutic dose had no adverse reproductive effects on beef cows at all stages of breeding or pregnancy or on their calves.

Not for use in bulls, as reproductive safety testing has not been conducted in males intended for breeding or actively breeding. Not for use in calves less than 3 months of age because safety testing has not been conducted in calves less than 3 months of age.

STORAGE Store at 77° F (25° C) with excursions between 59° and 86° F (15° and 30° C).

Protect from light.

Made in Canada.

Manufactured for Merial Limited, Duluth, GA, USA. ®LONGRANGE and the Cattle Head Logo are registered trademarks of Merial. ©2013 Merial. All rights reserved.

1050-2889-02, Rev. 05/2012

LONGRANGE averaged 0.28 lbs./day more Average Daily Gain (ADG) 2.5 lbs.

Difference ADG 0.24*

2 lbs.

1.5 lbs.

1.93

1

Difference ADG 0.40 2.33 1.93

1.69

33607_LR_FALL_2third_B_LEFT_VIRGINIA_CATTLEMAN_X1a.indd 1

1.84

Difference ADG 0.28* 2.07

2.14 1.79

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0 lb.

DECTOMAX/ivermectin Pour-on

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Comparing more than 15,000 head in nine states, stockers treated once for parasites with LONGRANGE gained an average of 28 lbs. more over DECTOMAX® (doramectin), CYDECTIN® (moxidectin), SAFE-GUARD® (fenbendazole) and ivermectin-treated cattle – even when used in combination over 103 days.1 And at today’s market prices, that adds up to an extra $56 per head. Not bad for around a $5 investment.

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IMPORTANT SAFETY INFORMATION: Do not treat within 48 days of slaughter.

Not for use in female dairy cattle 20 months of age or older, including dry dairy cows, or in veal calves. Post-injection site damage (e.g., granulomas, necrosis) can occur. These reactions have disappeared without treatment.

®JOHN DEERE is a registered trademark, and ™GATOR is a trademark, of Deere & Company. Deere & Company neither sponsors nor endorses this promotion. ®LONGRANGE and the Cattle Head Logo are registered trademarks of Merial.

All other marks are the property of their respective owners. ©2015 Merial, Inc., Duluth, GA. All rights reserved. RUMIELR1455-B (01/15)

Difference ADG 0.30*

Thanks to LONGRANGE® (eprinomectin), parasite control will never be the same.

Available in 500 mL, 250 mL and 50 mL bottles.

Administer subcutaneously at 1 mL/110 lbs.

1

Data on file at Merial.

2

Dependent upon parasite species, as referenced in FOI summary and LONGRANGE product label.

3

LONGRANGE product label.

7/2/15 1:14 PM

PAGE 20, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

From Page 18 Mineral Needs

said. Then producers can work with their veterinarians or beef nutritionists to determine a supplement that fills the gap.

‘One mineral concept’ According to Reinhardt, many producers use the “one mineral concept,” where they buy a mineral that meets most of the animals’ needs most of the time.

When the cattle eat it adequately and predictably, the producer simply leaves the mineral out year-round. During times of the year where the cattle’s needs may be lower, such as spring when there is ample high-quality forage available, they may eat only a little or none of that one mineral. “As the grass quality declines you will notice an increase in the consumption of that mineral,” Reinhardt said.

“In the fall or winter when we are supplying supplemental feeds, such as soybean meal, distillers’ grain and good-quality hay, the cattle may go back to a period where they may not be eating a tremendous amount of mineral.”

Another option is using differ-

ent mineral formulations during different times of the year. “If you’re feeding wet distillers grains and high-quality hay, you may have a need for calcium and trace minerals but not a tremendous need for supplemental phosphorus,” he said.

There may be a better option when doing a mix feed with a force-feeding situation. During the summer, a producer needs a mineral that works with the forage. Also, it is highly important that the cattle will eat independently in a predictable manner.

Deciphering mineral labels Mineral labels are subject to law that states if a mineral ingredient is included in a product, there are certain items that must be included on the tag, which is the first place producers should check, Reinhardt said.

Pay close attention to levels of phosphorus, calcium, salt, potassium, copper and selenium.

Adequate selenium is important in beef cattle diets, but it is highly regulated by the federal government, as it is toxic to humans and livestock at high levels. Because soils and forages in parts of the United States have low levels of selenium, it is

important that producers make sure cattle are getting adequate selenium. If copper is included in the product, it must be at a guaranteed minimum level on the label. There are many areas of the United States during various times of year where copper is deficient in the soil and in the forages, so Reinhardt said make sure to have a formula that works well with the geography.

Don’t put off the minerals Cattle producers are often extremely busy, but a good mineral program should remain important, the beef specialist said: “A producer always has about a hundred different things to do daily. Occasionally, the mineral formula works its way toward the top of the list.” Even then, determining how much cattle are consuming is often overlooked. Information on the mineral tag sometimes includes a recommended range of consumption. Depending on the animals’ needs, geography and pasture conditions, cattle may not eat the predicted amount of the mineral. In that case, it’s possible their mineral needs are not being met. “We want to ensure that we have the right formula for the cattle,” Reinhardt said. “If they’re not eating the mineral, we have to go back to the drawing board and find a product the cattle will eat.”

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EPD Information for All Bulls Listed CE BW WW YW MM Udder* Teat** SC FAT REI M BMI*** CEZ CHB Breed Avg.

47

76

19

1.14

1.14

0.8 .002 .29 .07

17

15

22

Chris Jeffcoat, Regional Manager

1303

-2.7 5.0

54

95

30

1.36

1.30

0.8 .003 .57 .17

15

11

28

1403

2.7 1.6

49

68

17

1.17

1.2

0.7 .00

.39 .01

18

17

21

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1407

0.7 3.4

57

89

23

1.23

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3201 Frederick Ave. • St. Joseph, MO 64506 816.383.5100 • www.ANGUS.org To subscribe to the Angus Journal, call 816.383.5200.

Watch The Angus Report on RFD-TV Monday mornings at 7:30 CST. © 2015-2016 American Angus Association

0.9 3.3

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 21

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5 Questions to Ask Before Grazing Corn Stalk Residue PAGE 22, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

1. What’s left in the field?

After the corn crop has been harvested, it’s good to know what’s left for grazing. It’s estimated that approximately 50% of the weight of the total corn plant remains in the stalk, leaf, cob and husk components. According to a report from Iowa State University’s Extension Beef Center, “For each bushel of shelled corn produced per acre, 50 pounds of residue is also produced. For example, an acre yielding 120 bushels of shelled corn per acre will produce approximately 6,000 pounds of corn residue.”

2. How long will it last?

With good weather conditions, it’s reasonable to assume that 1 acre of corn residue will provide 60 days of grazing for a 1,000-pound animal, according to the report. In the article from Iowa State University, “Mature cows in the middle trimester of gestation that are in desirable body condition typically maintain their body weight and may gain up to 1 pound per head daily. As the grain component is consumed and availability of husks and leaves declines, protein supplementation may be needed to maintain body condition.”

3. When should I supplement?

Fall calving cows may need protein and energy supplementation, and because corn stalk residue is typically low in a number of minerals as well as vitamin A, a balanced mineral and vitamin mix should be offered free choice. According to the report, “To determine if supplementation is necessary, observe the manure. If little or no corn is visible, protein supplementation should be considered. Sources include alfalfa, corn gluten feed, distillers’ grains.

4. How can I extend the grazing time?

Cattlemen should consider strip grazing to make the corn stalks last longer and offer a more uniform quality of diet.

Limiting the amount of stalks the herd can graze at once will force them to be more efficient and consume both the high and low-quality components of the residue. Strip grazing can also limit the damage on the field due to mud or icy conditions.

5. Should I be worried about nitrate toxicity?

According to the report, “Another issue can be nitrate toxicity—especially during drought conditions. The highest level of nitrate concentration in the corn

plant is in the lowest part (18-24 inches) of the stalk. This area is typically the last to be grazed by cattle. Therefore, the potential for nitrate issues is unlikely. Soil compaction can also be a con-

cern. Recent research from the Iowa State University Leopold Center for Sustainable Agriculture suggests that compaction is not an issue once the ground is frozen. Prior to freezing, there

is potential for slight reduction in yield for no-till soybeans, although there was no difference in soybean yield in conventionally tillage systems.”

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 23

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Additional average weight gain versus control after 105 days1

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CYDECT I N® (moxidectin) DECT o MAX® (doramectin) ivermectin

32.8 lbs. x $2/lb. = $65.60 33 parasite species and stages

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EPRINEX kills more species and stages than any other brand. Period.2 When cattle are sharing their feed with parasites, they gain less weight, and that means lower profitability for you. EPRINEX kills 39 stages and species of parasites, more than CYDECTIN and DECTOMAX.2 With the additional weight gain, at today’s market prices it more than pays for itself.

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IMPORTANT SAFETY INFORMATION: No meat or milk withdrawal is required when used according to label. Do not use in calves intended for veal or unapproved animal species as severe adverse reaction, including fatalities in dogs, may result. ®EPRINEX and the Cattle Head Logo are registered trademarks, and TMMAX, Merial Awards Xpress is a trademark, of Merial. All other marks are the property of their respective owners. ©2015 Merial, Inc., Duluth, GA. All rights reserved. RUMIEEP1507-A (08/15)

34341-2_EPRINEX_MAX_StacksUp_VIRGINIA CATTLEMAN.indd 1

10/8/15 9:52 AM

PAGE 24, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Beef Council Update Enhancing consumer preference for beef & sustaining Virginia families.

September Was The Month of Agriculture Promotion September was an extremely active month for myself and many others. With livestock evaluation contests, the State Fair show, and the Beef Ambassador Contest packed into one month, it was obvious that traveling on the agriculture path would fill much of my time. Of course, I am a young agvocate- I advocate for agriculture because it is something that I care about and feel others should learn about. Because of this, I was driven to participate in the Beef Ambassador Contest to promote the specie of livestock I am most involved with and the agricultural industry as a whole.

On April 18, 2015, at the Virginia Junior Beef Roundup in Harrisonburg, Virginia, I participated in the Virginia Beef Ambassador Contest. Relying on my understand, beliefs, ideas, and a few pamphlets relating to beef, the contest was expected to be unlike any other contest I had done..

Participants were required to undergo a mock media interview and a consumer response.

In both instances, questions were asked relating to the beef industry as a whole. After the conclusion of the contest, the winners were recognized: In the Senior division (ages 1720) third went to Zach Jones of Chilhowie, second to Caley Ellington of Linville, and winning first was Hanna Craun of Bridgewater. In the Junior event (ages 13-16) Sarah Harris, myself, was first.

Following the state contest, Hanna Craun and I were elected to represent the Virginia beef industry in Denver, Colorado at the National Beef Ambassador Contest. In preparation for this event, we

studied different yields associated with beef. Protein quantities, the BOLD diet, lean vs. regular beef, differences between Organic, Conventional, and Natural Farming, cattle reproduction, and numerous other topics were all discussed in order to help develop the ability to tell the story of the beef industry and promote it to consumers of all backgrounds.

All of this proved helpful at the contest when we participated in the contest, The Junior and Senior divisions and requirements were very similar. As a Junior representative, I participated in an issues response, mock interview, and consumer response.

In each case, topics revolving around the beef industry, the benefits that one obtains when he or she consumes beef, and the role of the USDA (United States Department of Agriculture) in the harvesting facility were discussed. In the Senior division, Hanna was required to be involved in the same activities and additionally participated in Education and Outreach.

All of these activities promoted the beef industry as a whole and the reasons for the inclusion of beef in the average consumer’s daily diet.

Following the conclusion of the contest, awards were granted to the finalists.

In the Junior division, in third was the Virginia Ambassador, myself, second went to the Tennessee Ambassador, Lindsey Parsley, and winning the event was the California Ambassador Angelee Dowling. In the Senior division, Lauren Schlothauer of New Mexico, Hannah Nave of Tennessee, Ashtyn Shrewsbury of Nebraska, Kylee Sigmon of Arkansas, and Mackenzie Kim-

bro of Arizona were selected as the 2016 National Beef Ambassadors.

Following the successful contest, our focus shifted to the Virginia State Fair.

Each year, the exposition hosts a statewide livestock show for cattle, goat, lamb, and hog exhibitors. After a change in schedule due to the potential harsh weather caused by the incoming Hurricane Joaquin, the fair date was set back to September 9th, 10th, and 11th. The

show was a success, allowing numerous young individuals to showcase their specialized skills exhibiting high quality livestock. Much credit can be directed to Dr. David Roper, Virginia Tech, Youth Livestock Shows Superintendent, and his team of dedicated officials who were able to ensure the Fair’s success.

September was yet another month of my life dedicated to the promotion of agriculture as a whole and the industry

I most closely relate myself to.

Agvocating and participation in industry related events definitely make the difference in solidifying consumer trust in the agricultural world. I recommend pursuing these paths so that you can strengthen your understanding of the livestock world in its entirety and create opportunities that build long lasting friendships, connections, and links accessible throughout the duration of your life.

TOP LOIN STEAKS WITH RED WINE SAUCE

•

Total Recipe Time: 40 to 45 minutes

•

Makes 4 servings

INGREDIENTS 1. 2 beef Strip Steaks Boneless, cut 1 inch thick or Flat Iron Steaks (about 8 ounces each) 2. 1 teaspoon lemon pepper 3. Chopped fresh parsley (optional)

Red Wine Sauce:

1. 1 tablespoon olive oil 2. 1 cup sliced cremini or button mushrooms 3. 2 cloves garlic, minced 4. 1/2 cup dry red wine 5. 1/3 cup ready-to-serve beef broth 6. 1/3 cup whipping cream 7. 1/4 teaspoon ground black pepper 8. Salt

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 25

Beef Checkoff Budgets $42 Million For 2016 The Cattlemen’s Beef Board will invest about $42 million into programs of beef promotion, research, consumer information, industry information, foreign marketing and producer communications in fiscal year 2016, pending USDA and full Beef Board approval. In September, the board’s Operating Committee recommended checkoff funding for a total of 11 proposals for checkoff funding in the fiscal year beginning Oct. 1. The committee also recommended full Beef Board approval of a budget amendment to reflect the split of funding between budget categories affected by their decisions. Cuts from contractor proposals to meet budget requirements totaled $696,200.

The Operating Committee approved proposals from seven national beef organizations for funding through the FY16 Cattlemen’s Beef Board budget, as follows: •National Cattlemen’s Beef Association (four proposals for $30.3 million) •U.S. Meat Export Federation (one proposal for $8.4 million) •Cattlemen’s Beef Board (one proposal for $1.5 million) •North American Meat Association (two proposals for $1 million) •Meat Importers Council of America (one proposal for $350,800) •American Farm Bureau Foundation for Agriculture (one proposal for $400,700) •National Livestock Producers Association (one proposal for $47,500) Broken out by budget component, the Fiscal Year 2016 Plan of Work for the Cattlemen’s Beef Board budget includes: $9 million for promotion programs, including continuation of the checkoff’s consumer digital advertising program, as well as veal promotion. $10.3 million for research programs, focusing on a variety of critical issues, including pre- and post-harvest beef safety research, product quality research, human nutrition research and scientific affairs,

market research, and beef and culinary innovations. $8.1 million for consumer information programs, including a Northeast public relations initiative, national consumer public relations, including, nutrition-influencer relations, and work with primary- and secondary-school curriculum directors nationwide to get accurate information about the beef industry into classrooms of today’s youth. $4.7 million for industry information programs, comprising dissemination of accurate information about the beef industry to counter misinformation from anti-beef groups and others, as well as funding for checkoff participation in a fifth annual national industrywide sympo-

sium focused on discussion and dissemination of information about antibiotic use. $8.4 million for foreign marketing and education in some 80 countries in the following: ASEAN region; Caribbean; Central America/Dominican Republic; China/Hong Kong; Europe; Japan; Korea; Mexico; Middle East; Russia/Greater Russian Region; South America; Taiwan; and new markets. $1.5 million for producer communications, which includes investor outreach using national communications and direct communications to producers and importers about checkoff results; as well as development and utilization of information conduits, such as auction markets; maintenance of a seam-

less partnership with state beef council producer-communication efforts; and producer attitude research to determine producer attitudes about and desires of their checkoff program.

Separate from the authorization requests, other expenses funded through the total $44.8 million 2016 CBB budget include $221,000 for evaluation, $303,000 for program development, $325,000 for USDA oversight; and about $2 million for

administration, which includes costs for Board meetings, legal fees, travel costs, office rental, supplies, equipment, and administrative staff compensation.

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PAGE 26, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

VIRGINIA SIMMENTAL ASSOCIATION Virginia Junior Simmental Association Update Farrell Jones, Junior Advisor The State Fair of Virginia Youth Beef Show was held on October 10, 2015. We were pleased to have a percentage show in addition to our purebred show.

Classes and winners are listed below. All of our junior exhibitors are commended for their hard work.

Purebred Junior Heifer Calf (Mar.-Apr., 2015) – 1st Zack Jones Purebred Junior Heifer Calf (Jan.-Feb., 2015) – 1st Hunter Watkins Divison Winner – Zack Jones Reserve Division Winner – Hunter Watkins Purebred Senior Heifer Calf (Sept.-Oct., 2014) – 1st Hayley Crossman, 2nd Hayden Campbell Division Winner – Hayley Crossman Reserve Division Winner – Hayden Campbell Purebred Intermediate Heifer Calf (May-Jun., 2014) – 1st Kyle Lutz (also Division Winner) Purebred Junior Yearling Heifer (Jan.-Feb., 2014) – 1st Sidnie Saville, 2nd Hunter Watkins Divison Winner – Sidnie Saville Reserve Division Winner – Hunter Watkins Purebred Senior Yearling Heifer (Sept.-Oct., 2013) – 1st Zack Jones (also Division Winner) Champion Purebred Heifer – Zack Jones Reserve Champion Purebred Heifer – Sidnie Saville Champion Bred & Owned Purebred Heifer – Zack Jones Reserve Champion Bred & Owned Purebred Heifer – Kyle Lutz Percentage Junior Heifer Calf (Jan.-Feb., 2015) – 1st Lianna Durrer, 2nd Cheyenne Deming Division Winner – Lianna Durrer Reserve Division Winner – Cheyenne Deming Percentage Senior Heifer Calf (Sept.-Oct., 2014) – 1st Taylor Edwards, 2nd Daniel Campbell Division Winner – Taylor Edwards Reserve Division Winner – Daniel Campbell Percentage Junior Yearling Heifer (Mar.-Apr., 2014) – 1st Lianna Durrer, 2nd Will Clark Percentage Junior Yearling Heifer (Jan.-Feb., 2014) – 1st Hayden Campbell Division Winner – Lianna Durrer Reserve Division Winner – Will Clark Champion Percentage Heifer – Lianna Durrer Reserve Champion Percentage Heifer – Will Clark Champion Percentage Bred & Owned Heifer – Will Clark

VSA Awards Scholarship At the Legends of the Blue Ridge Sale on October 10, 2015, Virginia Simmental Association awarded a $250 scholarship to VJSA member Zack Jones of Chilhowie, Virginia. Zack is a senior at Chilhowie High School where he is a member of the Senior Choir. He is also active at his church and in numerous Smyth County 4-H clubs and teams. He has been named Outstanding Smyth County 4-H member, is a 4-H All-Star, and is currently a 4-H Shooting Sports Ambassador. Zack has been a member of VJSA for seven years and of AJSA for 11 years. He is currently VJSA vice-president and has previously held the office of treasurer. Zack has shown cattle at shows in Virginia and surrounding states and at AJSA Eastern Regional Classics. He also helps with the day-to-day operations of his family’s farm. Zack plans to pursue a career in agriculture. Congratulations, Zack!

Congratulations also go to our VJSA members who participated in the Premier Exhibitor and Skill-a-Thon contests. Sidnie Saville was first place, Junior Premier Exhibitor and placed second in the Junior Skill-a-Thon. Zack Jones and Hunter Watkins placed fourth and seventh, respectively, in Senior Premier Exhibitor and Senior Skill-a-Thon.

VIRGINIA SIMMENTAL ASSOCIATION Dana Campbell, VSA Secretary / Treasuer 4nelsoncampbells@gmail.com 3764 Lowesville Road Lowesville, VA 22967 434-277-9104

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 27

Evaluating Farm Financial Health: How Understanding Your Balance Sheet Can Put More Money in Your Pocket As you may recall from the June edition of the Virginia Cattleman, when I last visited with you , we went over the highlights of putting together a basic financial statement for your farming operation. While admittedly, the process of collecting and putting together this statement can be somewhat less than enjoyable for most, the information it can unlock can be very valuable in terms of improving your profitability.

The world and our lives seem to get more hectic every day.

You’d think, with all the technology we have today, we’d be looking for something to do, rather than constantly struggling to keep up. But for most of us, it seems there is less and less time in a day and more and more things in need of our attention. It’s hard to keep up with the things you have to do and next to impossible to do the things you need to do or would like to do. Believe me, I get it. I’m right there with you.

And with everything on our plates, finding time to sit down and crunch numbers just never seems to make it to the top of our “to do” list. It’s one of those “I need to” things that just never seems to get done. For a lot of us, a shoebox full of receipts or stack of papers on the dash board is about all of the financial record keeping and analysis we can seem to manage.

But with just a small investment of time here and there, you can turn that pile of receipts into some very useful information.

Let’s take a look at a handful of tools that with a relatively small investment of time and effort, could pay some significant dividends for you and your operation. Hopefully, you took a few minutes to put together the basic financial statement we talked about last time. Admittedly, it’s been a couple of months, so you may need to update a few things to make sure it’s current, but this statement provides some very valuable insight into determining the financial health of your operation and will be the source of information for the two finan-

cial ratios we’ll discuss through the rest of this article.

As a lender, there are several important indicators I look at to evaluate the health of an operation. Using the financial statement, one of the most obvious of these is Debt/Asset ratio. You can find this ratio by simply dividing your total debt by total assets, just as the name implies. This ratio is an indicator of Leverage or equity. From a common sense standpoint, I’m sure most of us understand what leverage is. The longer the handle on the wrench, the easier that rusty bolt is to turn. Leverage is what lets you pick up a roll of hay with your front end loader or makes a see-saw go up

and down. And the same analogy applies to finance. The more leverage you have, the stronger your financial position and the “healthier” your operation is.

As a lender, your debt/asset ratio tells me how long the handle is on your wrench, if you will.

Debt/asset ratio is certainly not the only measure of leverage or equity, but for our purposes, it does the job, and is pretty simple to calculate.

Debt/asset ratio indicates what portion of your assets are financed with debt. Obviously, the less debt you have, the better-off financially you are.

This is a ratio where “lower is better”; as debt increases relative to assets (increasing the

debt/asset ratio), the handle gets shorter and shorter on the wrench and that bolt is harder and harder to turn. Now that we’ve established what it is, what’s a good number for debt/ asset ratio? Like most things, there’s no “one-size-fits-all” answer to this question. Younger farmers, those just starting out, and operations in or just out of

an expansion will generally, by default, have a higher level of debt relative to assets. Many factors can influence the true implications of a given debt/asset ratio for an operation, but as a general rule if you’re debt/asset ratio is 25 – 30% or less, you should be in excellent shape. A ratio of around 30 – 60% is genContinued on Page 29.

PAGE 28, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

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From Page 27

that will be sold over the course of the operating cycle to generate cash. Likewise, current liabilities are any debt which must erally acceptable, but obviously, be paid in full over the next 12 risk increases as the numbers go higher. If debt/asset ratio is above 60 – 65% then you are most likely in the “danger zone” and need to look at making some changes to improve your situation. Again, these are general guidelines, so don’t assume that if you’re at 60% that you’ve got nothing to worry about, but they do provide a place to start.

To keep things in common sense terms, I’d look at equity as the financial foundation of your operation. If you’re going to build a house, you need to start with a good foundation. That foundation will help the house to stand against the storms life throws at your family and we all know about the house built on shifting sands. A strong equity position improves your ability to weather the financial storms that life invariably will bring your way.

A few ways to improve a less-than-desirable debt/asset ratio include: Make additional principal payments on debts, where possible/ prudent Increase operating profits which will allow you to more easily complete the first suggestion Avoid unnecessary capital expenditures/purchases Control expenses/family living withdrawals and apply savings toward debt payment

Financial Health

The next major facto we’ll look at is Liquidity. If equity is the foundation, then liquidity might be looked at as the sill plate, or the anchor that holds the house firmly to the foundation’s anchor. In common sense terms, liquidity is a measure of the farm’s ability to meet all financial obligations over the next 12 months with cash-on-hand or through the sale of assets that would normally be expected to be converted to cash during that same time period. Current Ratio is calculated by dividing Current Assets/Current Liabilities. We calculated both of these on the farm financial statement.

If you missed that installment, though, current assets include cash, market livestock, feed, accounts receivable or any assets

months, such as credit accounts with suppliers, operating lines of credit, etc… The resulting ratio (Current Assets/Current Liabilities) is referred to as the

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 29

Current Ratio. While this is not the only measure of liquidity, it’s simple to calculate with the information from the financial statement.

When evaluating Current Ratio, a higher value is better. An operation that has $100,000 in current assets and $100,000 in Continued on Page 30.

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PAGE 30, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

From Page 29

Financial Health

current debts has a 1:1 Current Ratio, meaning they have exactly enough current assets to cover their debt obligations over the next 12 months. An operation that has $125,000 in current assets and $100,000 has a current ratio of 1.25:1. It’s important to note before we go any further, that to get a truly accurate measure of liquidity, you’d need to also add in all debt payments on longer term loans over the next 12 months, as well as any deferred tax liability you may be carrying. If these are not added in, then keep in mind that you’re overstating your current ratio somewhat.

Benchmark values for current ratio can vary greatly depending on the type of operation you have. For example, a dairy farm that receives milk checks twice a month can generally tolerate a lower current ratio than a cow/ calf operation that only sells calves once per year, simply because the dairy has a more consistent and frequent flow of income. Current ratio can also fluctuate significantly during the course of a year or operating cycle. For example, if you purchase a load of stocker cattle, when they are first turned out, they are generally worth significantly less than they will be in even a couple of months, simply because they will gain weight over time. If you purchased the cattle on credit, then your current ratio will be less desirable when the calves are first turned out, but should improve as the calves gain weight and increase in value.

Rather than giving specific values for determining whether your current ratio is where it should be or not, given the variability in what a “good” current ratio is, let’s just say that the higher this ratio is, the better. If you’d like to drill down more on your specific situation, try contacting your lender or extension agent and they should be able to help you determine more precisely where you stand.

Even though there may be more variation in terms of where different types of operations Continued on Page 31.

Virginia Tech AGR Boys, supporting VCA.

From Page 30

Financial Health

should be in terms of liquidity, it’s importance cannot be overstated. Having solid liquidity provides weathering ability.

Like a savings account, strong liquidity provides a safety net or cash reserves to meet unexpected expenses or to make up for shortfalls in operational income. We all know that It’s important to have some money put back for a rainy day. Liquidity does that for your operation and reduces your dependence on debt to manage through short term financial difficulty.

If your liquidity isn’t where it should be, there are several things you can do to improve the situation, including: Make sure that timing of debt payments matches timing of cash-flows (income) Look at debt structure to balance operating needs and long term investments/debt reduction Look for ways to reduce production costs Sell excess or unneeded assets such as unused equipment to generate cash and reduce current debts With these two ratios, we’ve laid the groundwork to analyzing the financial health of your operation. If you find yourself in a less-than-desirable position on either or both of these indicators, there’s no better time than the present to start thinking about changes you could make

to improve your foundation and increase the stability of your financial house.

With the next installment in this series, we’ll add in income and expense information to calculate another ratio or two, and then tie it all together to get a picture of overall financial health, as well as ways to improve in areas that may not be quite where they need to be. By including a basic analysis of income and expenses, we can expand on the information we’ve gathered so far and begin to drill down into some strategies to put more jingle in your pocket.

Until next time, may the rain come when you need it, the sun shine on cut hay and the Good Lord bless each of you. As always, if you have any questions or would like additional information on this discussion, feel free to contact me at dcuddy@ farmcreditofvirginias.com or (276) 628-5191.

David Cuddy is a Commercial Agriculture Loan Officer with Farm Credit of the Virginias, working out of the Abingdon, VA office, specializing in meeting the financial needs of beef cattle operations.

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THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 31

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PAGE 32, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Survey Gauges Interest in Omega-3-Enhanced Beef

A survey by Kansas State University researchers found an increased preference for grass-fed beef over omega-3-enhanced beef among consumers. The research also found there is demand for beef enhanced by omega-3 fatty acids, though consumers in the national survey gravitated toward grass-

fed, according to a news release from the university. Sean Fox, agricultural economist at Kansas State, said he is unsure why consumers in the survey preferred grass-fed beef but suspects they may perceive it to be a more natural product. Prior studies have shown grass-fed beef to have somewhat higher levels of omega-3s compared to conventionally raised beef.

Kansas State animal scientists

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have been studying beef enhanced with omega-3s as a way to increase demand for beef.

The fortification of omega-3 fatty acids in beef would occur in the cattle feeding process – adding ingredients that are high in omega-3s to the animal’s diet in the feedlot. Fox said this has been done in the past using flaxseed as the added ingredient, and omega-3 beef products have been on the market for a while.

He said animal scientists have found adding an algae extract to the beef diet can enhance levels of EPA and DHA in the beef product. The researchers also aimed to find what consumers would be willing to pay for omega-3-enhanced beef.

The average premium for grassfed steak was around $3.70 a pound over conventional steak while the omega-3-enhanced product carried an average premium of about $1.85 a pound.

“That is a premium over and above what they were willing to pay for the conventional product,” Fox said. For ground beef, the average premium for grassfed beef was $1.27 a pound, compared to about 79 cents a pound for the omega-3-enhanced product.

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 33

U.S. Reaches Trans-Pacific Partnership Trade Deal With 11 Pacific Nations

William Mauldin, The Wall Street Journal The U.S., Japan and 10 countries around the Pacific reached a historic accord October 5th to lower trade barriers to goods and services and set commercial rules of the road for two-fifths of the global economy. For the U.S., the Trans-Pacific Partnership trade agreement opens agricultural markets in Japan and Canada, tightens intellectual property rules to benefit drug and technology companies, and establishes a tightknit economic bloc to challenge China’s influence in the region.

President Barack Obama lauded the trade accord on Monday, saying it would open new markets to American products and set high standards for protecting workers and the environment.

“This partnership levels the playing field for our farmers, ranchers, and manufacturers by eliminating more than 18,000 taxes that various countries put on our products,” the president said in a statement. “It includes the strongest commitments on labor and the environment of any trade agreement in history, and those commitments are enforceable, unlike in past agreements.” Mr. Obama, who has faced a steep challenge in winning support for TPP on Capitol

Hill, said he would work with resolved bitter fights over intel- biologic drugs, automotive-as- The deal, if approved by Conlawmakers as they consider the lectual property protection for sembly rules and dairy products.

Continued on Page 35. agreement, adding that Congress would have months to Myers Hereford Farm read every word of the deal.

Bull & Heifer Sale The president said the Trans-Pacific Partnership would December 12, 2015 12:00 NOON strengthen U.S. relationships with partners and allies in a key Myers Sales Barn 449 Elmwood Road, region. “It’s an agreement that Statesville NC puts American workers first and will help middle-class families get ahead,” he said. The deal SELLING: is a victory for Mr. Obama, (30) 2-year old Horned Hereford Bulls who sees it as boosting eco(5) 2-Year Old Hereford Cows with calves nomic growth, enhancing competitive industries and binding (5) Bred Hereford Heifers like-minded Pacific countries at (12) Yearling Hereford Heifers a time when China—not a part (75) Yearling Back Baldie Heifers of the bloc—is adopting a more assertive economic and military posture in the region.

But Mr. Obama faces a steep Myers Hereford Farm challenge in the months ahead 321 Elmwood Road, Statesville NC 28625 to win approval for the deal in a Phone: 704 872-7155 Cell: 704 450-1598 Fax 704 871-9997 deeply divided Congress. Only Email: harrymyers1226@att.net a handful of Democrats support Website: www.myersherefordfarm.com Mr. Obama’s trade policy, and Online bidding through cattleinmotion.com Republican support is unpredictable in the 2016 election year, depending on the stance of presidential candidates and new leadership in the House. As it is, the deal can’t go to a vote before Congress until early next year.

After dozens of rounds of negotiations and five days of haggling in Atlanta, trade ministers and other top officials said they

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PAGE 34, NOVEMBER 2015, THE VIRGINIA CATTLEMAN KNOLL CREST FARM JAMES, PAUL, JIM, BRIAN BENNETT 17659 RED HOUSE RD. RED HOUSE, VA 23963 434-376-3567 OFFICE 434-376-7008 FAX JAMES BENNETT - 434-376-7299 PAUL BENNETT - 434-941-8245 JIM BENNETT - 434-664-7935 DALTON G. BENNETT - 434-664-7946 BRIAN BENNETT - 434-664-8309 SCOTT BENNETT - 434-660-7268

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From Page 33

Pacific Partnership gress, will mark an effective expansion of the North American Free Trade Agreement launched two decades ago to include Ja-

stymied by politically sensitive disputes, including a fight between the U.S. and Japan over the automobile industry.

One of the last disputes to be resolved pitted Australia against the U.S., which was seeking up to 12 years of protection for biologic drugs against gener-

and potentially up to eight years of exclusivity for biologics.

Chile, Peru and other countries remained concerned about adding to the price of drugs through long exclusivity periods, according to people following the talks. In another last-minute deal, Canada and Japan agreed

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 35

to increase access to their tightly controlled dairy markets, allowing some American dairy products in, but New Zealand also persuaded the U.S. to accept more of its milk products. The sour milk fight caught the attention of Congress, where Sen. Ron Wyden (D., Ore.) and Rep.

BEEF AND BEEF PRODUCTS The Trans-Pacific Partnership (TPP) will provide significant new market opportunities for U.S. exporters, promoting economic growth in 11 countries across the Asia-Pacific region and expanding demand for U.S. food and agricultural products among nearly 500 million consumers outside the United States.

No one knows change better than the agricultural industry.

U.S. Beef Exports, 2014 Total = $7.1 billion

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JAPAN

Duties on 74% of tariff lines eliminated within 16 years. Reductions on remaining lines include 77% cut for fresh, chilled, and frozen beef.

TPP Region $3.9 billion

CANADA

U.S. exports already duty-free under NAFTA.

VIETNAM

UNITED STATES

Tariffs, currently as high as 34%, eliminated in 3-8 years.

BRUNEI

All tariffs eliminated immediately.

MEXICO

U.S. exports already duty-free under NAFTA.

MALAYSIA

All tariffs locked in at 0%.

PERU

NEW ZEALAND

All tariffs eliminated immediately.

SINGAPORE

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The TPP strengthens trade rules and provides new market access for U.S. agricultural exports to Japan, Malaysia, Vietnam, New Zealand, and Brunei.

First Bank & Trust Company

Top Cattle Producing States Tariffs eliminated by 2020 under existing trade agreement.

U.S. exports already duty-free under existing trade agreement.

Rest of World $3.2 billion

Source: USDA - FAS GATS

Tariffs, currently as high as 26.4%, eliminated within 15 years.

CHILE

U.S. exports already duty-free under existing trade agreement.

AUSTRALIA

U.S. exports already duty-free under existing trade agreement.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Continued on Page 37.

Times change.

United States Department of Agriculture Foreign Agricultural Service

Trans-Pacific Partnership (TPP)

Paul Ryan (R., Wis.), two lawmakers overseeing trade policy, demanded that dairy producers in their states gain more access to Canadian consumers, a sensitive concession for Canada during its own election season.

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From Page 35

Pacific Partnership

The Pacific agreement is expected to face a tough battle in Congress that could carry on to the next administration. Mr. Obama will have to allay unease over the deal within both parties in the midst of a heated presidential campaign. Legislation designed to expedite passage of the agreement through Congress passed narrowly last summer, and a variety of factors, including the pressures of the presidential campaign, could make the final deal a harder sell.

Lawmakers from both parties have expressed reservations over provisions in the deal in recent days, including a number who voted in favor of earlier legislation to move ahead on the pact.

The odds of passage in Congress will hinge in large part on the final language in a number of provisions, ranging from the strengthening of rights for labor unions to whether U.S. cigarette companies will face special limitations within TPP countries.

“I will carefully scrutinize it to see whether my concerns about rushing into a deal before meeting all U.S. objectives are jus-

tified,” Sen. Orrin Hatch (R., Utah), chairman of the Senate Finance Committee, said in a statement Sunday before the deal was completed. Mr. Hatch has long backed 12 years of exclusivity for biologic drugs, and congressional staffers attending the talks Sunday said they were still digesting what the U.S.-Australia compromise could mean for drug companies.

PhRMA, representing some of the biggest U.S. pharmaceutical companies, said it was “disappointed” with the agreement but would evaluate the details.

In pharmaceuticals and other industries, U.S. officials sought a deal that would be acceptable to other countries and as many members of Congress as possible, without triggering the outright opposition of a major business group. Many Democratic lawmakers and groups backing generic drugs and less expensive medicine didn’t want any more than five years of exclusivity for biologic drugs, and it wasn’t immediately clear if the compromise in the TPP would satisfy their concerns.

U.S. labor unions and their allies among consumer and environmental groups are among the biggest critics of the TPP.

The left-wing opposition has prevented Mr. Obama from getting many fellow Democrats— already skeptical of the deal’s benefits to U.S. workers—to support his trade policy. An array of Republican lawmakers object to provisions that would strengthen the influence of labor groups, impinge on the ability of tobacco companies to fight against packaging rules and

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 37

other laws overseas, and possibly harm local industries, from dairy farmers to sugar.

With key provisions on the environment and labor rights, Mr. Obama may pick up some Democratic votes in Congress that opposed the “fast track” legislation earlier this year. The TPP includes stepped-up powers for the U.S. to put pressure on developing nations to im-

prove labor practices. Under the internationally enforceable framework, the governments in the 12-nation bloc will be able to challenge fellow countries if they don’t follow through with labor-action plans established in the negotiations. Many U.S. lawmakers have also sought binding rules that would punish trading partners for alleged currency manipulation.

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Circuit Court Hands Landowners Major Victory on WOTUS

Burt Rutherford, BEEF Magazine

A ruling that ranchers, farmers and other landowners have been desperately hoping for came to fruition Oct. 9th when the Sixth Circuit Court of Appeals in Cincinnati issued a nationwide stay

According to Bob Stalman, American Farm Bureau president, â&#x20AC;&#x153;The judges expressed deep concerns over the basic legality of this rule. Weâ&#x20AC;&#x2122;re not in the least surprised: This is the worst EPA order we have seen since the agency was established more than 40 years ago. The

court clearly understood our arguments.â&#x20AC;? Stalman is confident that the courts will strike down this rule. â&#x20AC;&#x153;Unfortunately, we also know stays donâ&#x20AC;&#x2122;t last forever, and cases like this almost always take years to win. So we again ask the Senate to pass legislation to nullify this rule just

as the House has already done.

Farmers and ranchers cannot afford to wait.â&#x20AC;? NCBAâ&#x20AC;&#x2122;s Yager hailed the ruling as a great decision. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to have the rule stayed, so that means you donâ&#x20AC;&#x2122;t have to worry about it just yet. We can let these lawsuits play out and figure out what is

the correct court to hear the case in. And in the meantime, you donâ&#x20AC;&#x2122;t need to worry about it too much. Itâ&#x20AC;&#x2122;s status quo, what the law of the land has been before the WOTUS rule.â&#x20AC;?

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on the EPA-Army Corps of Engineers Waters of the U.S. (WPTUS) rule. The rule follows an earlier stay issued by a North Dakota court that only applied to certain states. This ruling applies to all 50 states.

The appeals court considered four different suits regarding the WOTUS rule, combining them into the final ruling. Altogether, 19 different litigation coalitions have filed lawsuits against implementation of WOTUS, says Scott Yager, environmental counsel for the National Cattlemenâ&#x20AC;&#x2122;s Beef Association.

The court, in a 2-1 ruling, cited the substantial possibility of legal success for the case against WOTUS on the merits of the claims and cast suspicion on the rulemaking process. Philip Ellis, National Cattlemenâ&#x20AC;&#x2122;s Beef Association president, said this action will prevent implementation of the WOTUS rule. â&#x20AC;&#x153;This is great news for cattlemen and women and all land users who have been at a loss as to how to interpret this rule,â&#x20AC;? said Ellis. â&#x20AC;&#x153;A stay by the Court has the same effect as an injunction, and this action prevents the EPA and Army Corps from implementing this disastrous rule across the country.

In granting the stay, the majority of the Court sided with the states that the rule likely fails on both substantive and procedural grounds.â&#x20AC;?

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737 Quarker Run Road Madison, VA 22727 (540) 923-5486 ggennin@earthlink.net

Longhorn Bulls and Heifers For Sale Easy Calving - Disease Resistant - Gentle

2070 Walnut Springs Road Blacksburg, VA 540-552-2520 * 540-230-6225 www.mcdonaldfarms.com BLACK POLLED SIMMENTAL AND ANGUS CATTLE â&#x20AC;&#x153;Our cows work for us; so our bulls will work for you!â&#x20AC;?

TRIO FARMS, INC. Jerry Burner 3070 US HWY BSN 340 Luray, VA 22835 HOME (540)743-3446 CELL (540) 742-1220 EMAIL triofarms@comcast.net WEBSITE www.triofarmsinc.com

SIMMENTAL-ANGUS-SIMANGUS Bulls Availablre Year-Round

Replacement Purebred / Commercial Females Available

SUPPLYING QUALITY CATTLE SINCE 1971

Double J Farm LLC

Registered Polled Herefords Located in Traphill, N.C. â&#x20AC;&#x153;Quality Cattle for Quality Peopleâ&#x20AC;?

John Wheeler Headquarters 910/489-0024 775 Clacton Circle Earlysville, VA 22936 doublejfarm@yahoo.com 2IĂ&#x20AC;FH ORFDWHG LQ )D\HWWHYLOOH 1 &

FOR SALE

Chestnut Ridge Farm

222 acres Augusta Co. 9 tax parcels, Barns, Silo, and 1780 Log and Frame House Owner, Agent Owen Thomas III, Chestnut Ridge Road, Staunton, VA 24401 540-337-1847 or 540-480-4817

AVAILABLE NOW

Exceptional SimAngus and Simmental Bulls and Fancy Genetics 3691 S. Middle Rd., Quicksburg, VA 22847 * (540) 335-1885 * lisazl@shental.net

www.shenandoahvalleysimmentals.com Home of â&#x20AC;&#x153;the keepinâ&#x20AC;&#x2122; kindâ&#x20AC;?

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 39

Outlook For World Beef Markets Starting with the beef complex, herd expansion in the U.S., Brazil and India will lead the way in expanding world beef production an expected 1%. More favorable moisture conditions in Australia will move them towards rebuilding cattle herds, pushing slaughter lower and their beef prices higher. This should create some opportunities in the global market place, especially in Asia, for the U.S. to become more competitive. As the U.S. herd expansion continues, beef supply will increase and put downward pressure on prices. Brazil is also continuing herd expansion, and the weaker real creates cheaper Brazilian beef relative to other markets.

India still holds the spot of the top beef exporting country, however as a reminder India’s cattle herd largely consists of water buffalo, not traditional beef, and their top export destinations include the Middle East, Southeast Asia, and North Africa.

Overall, into 2016 the U.S. continues to be the top beef

producer with a forecasted 11.4 million metric tons (mmt) - carcass weight equivalent, followed by Brazil (9.4 mmt), European Union (7.5 mmt), China (6.8 mmt), and India (4.2 mmt). Leading countries in beef exports with forecast 2016 volumes are India at 2.2 mmt, Brazil at 1.8 mmt, Australia at 1.6 mmt, U.S. at 1.1 mmt, and New Zealand at 0.6 mmt. Specifically regarding U.S. animal protein imports, year-over-year decreases are forecast in 2016 for beef, pork, and broiler meat, with the largest percentage decrease in beef imports (down 11%). This is no surprise as there are consistent indications of a growing cattle herd, that will allow the U.S. to realize a larger beef supply largely starting in 2016 and into 2017.

Additionally, most of U.S. beef imports come from Australia, and as their slaughter numbers decrease U.S. purchases of Australian beef will decrease as well.

Tucker Family Farm

Selling 2015 Spring Calving Heifers Spring Heifers 2015 Calving SBred ale Heifers Tucker Family Farms for Functionality,Black Performance, & Carcass Merit.

Notes

19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb

Heifer Heifer Bull Hiefer Heifer Bull Bull Heifer Heifer Heifer Bull Bull Heifer Heifer Bull Heifer Bull Heifer

1124 5-­‐Mar 1163 9-­‐Mar 1011 9-­‐Mar 1116 10-­‐Mar 1129 10-­‐Mar 1139 10-­‐Mar 1013 12-­‐Mar 1162 12-­‐Mar 1119Sale 13-­‐Mar Spring 2015 Calving

Bull Heifer Bull Heifer Bull Heifer Bull Bull Bull

*

* *

BWF

Choc

VDACS Livestock Grader (Part time) Lynchburg & Northern VA Areas 540-480-1459

1122 1109 1121 1138 1130 1127 1016 1018 1140 1136 1022 1141 1132 1113 1134 1106 1142 1126

"*" denotes AI

Notes

Job Opening

PA # Due Date Fetal Sex

PA # Due Date Fetal Sex 1161 1023 1117 1015 1107 1160 1017 1105 1110 1104 1014 1120 1125 1012

19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb 19-­‐Feb

Heifer Bull Bull Bull Heifer Heifer Heifer Bull Heifer Bull Bull Heifer Bull Bull

1112 1115 1123 1019 1020 1111 1010 1021 1144 1148 1149 1146

2-­‐Mar 8-­‐Mar 10-­‐Mar 10-­‐Mar 14-­‐Mar 22-­‐Mar 24-­‐Mar 9-­‐Apr 19-­‐Apr 23-­‐Apr 12-­‐May 12-­‐May

Bull Heifer Heifer Bull Heifer n/a n/a n/a n/a n/a n/a n/a

Black Heifers Sire Milk Pdx 729 n/a n/a 729 Confidence Kpd n/a n/a Pdx Confidence Prophet 729 Kpd Pdx Kpd n/a 991

YW

21 24 n/a n/a 24 9 34 n/a n/a 21 9 35 24 34 21 34 n/a 30

K50 30 Bal 36 729 24 729 24 *Regis 22 K50 30 Pdx 21 729 24 729Red H24 eifers

Red Heifers Sire Milk Rev MS MS NK Rev NK Pdx Comm Bal Comm Rev Rev MS MS

YW

Service Sire

CED

BW

YW

Price

111 80 n/a n/a 80 90 118 n/a n/a 111 90 134 80 118 111 118 n/a 97

Uptown Sure Fire Niagara Niagara Sure Fire Anticipation Early Bird Niagara Niagara Uptown Anticipation Comrade Sure Fire Early Bird Uptown Early Bird Niagara Niagara

13 15 11 11 15 16 17 11 11 13 16 17 15 17 13 17 11 11

0 -­‐1.5 -­‐1.6 -­‐1.6 -­‐1.5 -­‐1.4 -­‐0.5 -­‐1.6 -­‐1.6 0 -­‐1.4 -­‐2.9 -­‐1.5 -­‐0.5 0 -­‐0.5 -­‐1.6 -­‐1.6

100 114 80 80 91 100 111 80 80

Outlook Safeguard Safeguard Consensus Outlook Outlook Consensus Safeguard Safeguard

17 11 11 6 17 17 6 11 11

-­‐2.9 99 2,300 -­‐0.7 105 2,350 -­‐0.7 105 2,300 0.3 97 2,350 -­‐2.9 99 2,350 -­‐2.9 99 2,350 0.3 97 2,300 -­‐0.7 105 2,300 -­‐0.7Tucker 105 2,300 Family Farms

Service Sire

CED

BW

YW

128 112 123 123 112 105 102 123 123 128 105 99 112 102 128 102 123 123

2,600 2,600 2,450 2,600 2,600 2,500 2,450 2,600 2,600 2,600 2,500 2,500 2,600 2,600 2,450 2,600 2,450 2,600

Tucker Family Farms

Price

23 17 17 20 23 20 21 24 36 24 23 23 17 17

108 109 109 117 108 117 111 100 114 100 108 108 109 109

Sure Fire All In All In Early Bird Sure Fire Early Bird Uptown Prophet Early Bird Prophet Sure Fire Sure Fire All In All In

15 14 14 17 15 17 13 11 17 11 15 15 14 14

-­‐1.5 -­‐0.1 -­‐0.1 -­‐0.5 -­‐1.5 -­‐0.5 0 1 -­‐0.5 1 -­‐1.5 -­‐1.5 -­‐0.1 -­‐0.1

112 130 130 102 112 102 128 134 102 134 112 112 130 130

2,500 2,350 2,350 2,350 2,500 2,500 2,500 2,350 2,500 2,350 2,350 2,500 2,350 2,350

Rev 23 Rev 23 Comm 24 *Capiche Shorthorn Comm 24 *Capiche Shorthorn NK 20 Bal 36 Comm 24 NK 20 MS 17 Comm 24

108 108 100 n/a 100 n/a 117 114 100 117 109 100

Consensus Consensus Consensus Consensus Consensus Safeguard Consensus Consensus Consensus Safeguard Consensus Safeguard

6 6 6 6 6 11 6 6 6 11 6 11

0.3 0.3 0.3 0.3 0.3 -­‐0.7 0.3 0.3 0.3 -­‐0.7 0.3 -­‐0.7

97 97 97 97 97 105 97 97 97 105 97 105

2,250 2,300 2,300 2,250 2,300 2,250 2,250 2,250 2,000 2,000 1,950 1,950

31 Years of wholly owned and developed heifers rearing coupled with 22 years of feeding experience and carcass data collection have led us to breed our 600 cow herd for functionality, performance and product merit.

For more information call Bill Tucker at Cell: 434-944-2292 * Home: 434-277-5059 betterheifers@gmail.com

PAGE 40, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

VIRGINIA CHAROLAIS ASSOCIATION

Our next sale, 15th Fall Herd Improvement Sale, at Virginia Tech November 7, 2015 1:00pm

2015 - 2016 VCA Officers

Bill Thompson - President 1295 Park Avenue Clifton Forge, VA 24422 540-968-1987 Kaitlin Smith - Vice President 454 Old Farm Road Lexington, VA 24333 540-463-6778 Deidre Harmon - Secretary 1445 Pipers Gap Road Galax, VA 24333 276-233-8852

more pounds at weaning!

Walt Winkler - Treasurer 124 Kindig Road Waynesboro, VA 22980 540-943-6144

more pounds at yearling!

Data from the Spring 2012 Across-Breed EPD Genetic Trends presented at the Beef Improvement Federation documents Charolais and Charolais-influenced genetics lead all major breeds compared for both weaning and yearling weights. In fact, Charolais cattle were proven to excel at adding more pounds at weaning and yearling.

Rob Farmer- Past President 8030 Greenwich Road Catlett, VA 20119 540-270-3886

Every beef producer knows profitability starts with more pounds.

More pounds. More profits.

Simple math.

Chad Joines Southwest Director Junior Advisor Virginia Tech Dept Animal & Poultry Science Blacksburg, VA 24061 540-557-7263

Increased Red Meat Yield Optimum Growth ■ Moderate Stature Hybrid Vigor ■ Consistent Breed Identity Reproductive Efficiency ■ Docility AMERICAN-INTERNATIONAL CHAROLAIS ASSOCIATION 11700 NW Plaza Circle ■ Kansas City, Missouri 64153 816.464.5977 ■ Fax: 816.464.5759

We would like to invite anyone interested in becoming a member of our association to call one of the officers list above.

www.charolaisusa.com © American-International Charolais Association 2014

D o W h a t Wo r k s 8.5x11 4c (bull).indd 1

M

ountain eadows

William (Bill) Thompson 1295 Park Ave Clifton Forge, VA 24422 CELL 540-968-1987 FAX 540-962-7508 FOR SALE Several Purebred Charolais bulls Quality Charolais Embryos

River Croft Charolais Breeding Polled - Registered Performance Charolais William and Agnes Anerson P.O. Box 304 Altavista, VA 24517 434-369-5366 “Keeping the commerical producers in mind”

3/10/14 1:04 PM

Charolais bulls for most discriminating buyer

Colonial Farms

Cross Mountain Cattle Co.

You are invited to our Charolais Sale at Virginia Tech. There is a great selection of cattle assigned to this sale. These consignments should work well to improve or add to a registered Charolais herd. Also, as you should already know, the Charolais cattle work well in a commercial herd.

If you do not receive a catalogue, you should be able to view it on our sale manager’s website at: www.outfrontcattle.com Also, if you prefer a hard copy mailed to you, contact our sale manager Dennis Adams: 979-693-1310 cell 979229-4472 email outfrontcattle@gmail. or Bill Thompson: cell 540-968-1987 mountainmeadows@higlandcomputers.com

CREWS FARMS Registered Charolais 784 Payneton Rd.

Robert Farmer Chatham, VA 8030 Greenwich Rd. Billy Crews, Barry Crews 124 Kindig Road Billy C. Crews, Brent Crews Catlettt, VA 20195 Waynesboro, VA 22980 540-270-3886 Walt Winkler 434-656-2361 Gerry Scott 540-379-1975 540-943-6144 434-656-3771

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 41

Market Highlights: Cattle Prices Drop Fed cattle prices fell on a live basis and beef prices also saw a slight decrease.

By: Andrew P. Griffith, University of Tennessee

FED CATTLE: Fed cattle traded $5 to $6 lower on a live basis compared to a week ago. Prices were mainly $166 to $168 on a live basis while dressed trade was mainly $263 to $265.

The 5-area weighted average prices thru Thursday were $166.61 live, down $5.35 from last week and $263.97 dressed, down $2.44 from a week ago.

A year ago prices were $131.89 live and $209.10 dressed.

The break from record high cattle prices may be starting to take form as futures prices have been pressured all week. The pressure on futures contract prices has resulted in the cash market taking a dive, and there does not seem to be much of any new information that will continue to support fed cattle prices at record levels.

A number of feedlot operators were resistant to trading cattle for a price less than what was received a week ago, but it appears the fate of the market is softening which means margins are about to tighten on feedlot managers. Some feedlots may hold onto cattle and try to market

them at higher prices again next week, but it may simply result in moving cattle at further reduced prices than the current week.

Feedlot managers can ill afford for fed cattle to move very low as break-evens are in the $160s.

BEEF CUTOUT: At midday Friday, the Choice cutout was $253.87 down $0.55 from Thursday and down $3.28 from last Friday. The Select cutout was $237.78 down $2.48 from Thursday and down $8.11 from last Friday. The Choice Select spread was $16.10 compared to $11.26 a week ago.

Packers find margins to be continually squeezed as cutout prices floundered this week. The only upside is that fed cattle

prices softened which meant the squeeze was only coming from one direction instead of two. The Choice cutout has remained relatively strong due to some last minute holiday purchasing at the retail level. However, pressure

against the Select cutout was strong as 60 percent of the gains in the Select market that occurred over the past five weeks were erased in one fell swoop.

It is not uncommon for the Choice Select spread to widen this time of year as most beef purchases are focused on Choice middle meats while end cuts and Select cuts are pushed to the side. The Choice and Select cutouts will be under extreme pressure as retailers finish the last of their holiday beef purchasing which could result in continued negative margins at the packer level if fed cattle prices do not decline significantly.

TENNESSEE AUCTIONS: On Tennessee auctions this week compared to two weeks ago

steers and bulls were $6 to $9 higher. Heifers were $8 to $13 higher. Slaughter cows were steady to $1 lower while bulls were steady to $1 higher. Average receipts per sale were 816 head on 9 sales compared to 600 head on 2 sales last week and 764 head on 11 sales last year.

OUTLOOK: Cattle receipts generally tail off the in the weeks following Thanksgiving and leading up to the New Year.

However, weather factors prohibited many cattle producers across the state from marketing the last of their calves and culled commercial market cows the last couple of weeks of November. Thus, there was an expectation that cattle movement would Continued on Page 42.

PAGE 42, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

From Page 41 Prices Drop

be strong this week and potentially next week. The failure of producers to market earlier in the fall has been to their benefit as calf prices continue to rise and commercial slaughter cow prices have remained elevated.

Cash prices have steadily increased for most classes of cattle, but a roller coaster ride on feeder cattle futures has been present since the beginning of October. January feeder cattle futures closed at $231.78 on the first day of October and then proceeded to climb to $236.33 seven days later but then fell to $228.13 the following week before closing at $237.48 in the middle of November. Subsequently, January feeder cattle futures fell to $230.50 the day before Thanksgiving and have now rebounded back

to near $236. Most contract months follow a similar pattern.

What does not follow this pattern so well is the cash price for feeder cattle. The feeder cattle index traded over $244 this week which is an $8 premium to the nearby January futures contract.

Futures prices and the feeder cattle index generally converge as the expiration of a contract month approaches. This is important because the CME feeder cattle index is used to settle open contracts. Thus, either the feeder cattle index will have to drop off sharply or the nearby feeder cattle futures price will have to continue to escalate.

What may be more feasible are a small decline in the index price and an increase in the nearby futures price. Such discrepancies in the market can make it difficult to hedge cattle successfully as basis risk is relatively high. Additionally, the cost of

at-the-money puts and calls are relatively expensive due to volatility in the market and the sheer magnitude of prices.

TECHNICALLY SPEAKING: Based on Thursday’s closing prices, December live cattle closed at $166.45. Support is at $166.00, then $164.85.

Resistance is at $167.15 then $168.30. The RSI is 43.87.

Continued on Page 43.

CAMPBELL FARMS Wayne and Becky Campbell 26023 Old Saltworks Road Abgindon, VA 24210 Cell: 276-608-8647 Cell: 276-608-0203 davidcampbell13@gmail.com Registered Hereford Bulls and Heifers / Commercial Cow Calf / Stocker

VIRGINIA CATTLEMEN’S ASSOCIATION WORKING FOR VIRGINIA’S CATTLE INDUSTRY

Partner with VCA by contributing to the Policy Fund and help protect our industry and our legislative, regulatory, environmental and social well being Choose your contribution level: $50 – Partner $100 – Bronze $365 – Dollar A Day $500 – Silver $1000 - Gold Mail checks to VCA, PO Box 9, Daleville, VA 24083 Virginia Cattlemen’s Association is a 501(c)(5) entity and donations to the VCA Policy Fund are not tax deductible

Deer Creek Farm

Registered Simmental & SimAngus

Production Sale November 14, 2015

Make plans to join us at the farm to purchase high quality

bulls & heifers • Call or visit our website to request a catalog

DeerCreekSimmental.com Mark & Dana Campbell 3764 Lowesville Rd

434-277-9104 • Roseland, VA 22967

From Page 42 Price Drop

February live cattle closed at $166.98. Support is at $166.40, then $165.07. Resistance is at $167.72, then $169.05. The

RSI is 44.03. April live cattle closed at $166.45. Support is at $166.40, then $166.10.

Resistance is at $167.40, then

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 43

$168.75. The RSI is 45.36.

January feeders closed at $235.95. Support is at $234.61, then $232.01. Resistance is at $233.06 then $235.08. The RSI is 58.78. March feeders closed at $232.05. Support is at $231.03, then $229.01. Resistance is at $233.06, then $235.08. The RSI is 53.72. April feeders closed at $232.55. Support is at $231.20, then $230.78. Resistance is

at $232.85 then $234.38. The RSI is 54.07. Friday’s closing prices were as follows: Live/ fed cattle –December $164.45 -2.00; February $164.88 -2.10; April $164.30 -2.15; Feeder cattle - January $234.88 -1.08; March $231.23 -0.83; April $230.93 -1.63; May $231.35 -1.25; December corn closed at $3.82 up $0.06 from Thursday.

Division of Ashby Herd Health Services, Inc. 2420 Grace Chapel Road Harrisonburg, VA 22801 Day/Night (540) 433-0430 1-800-296-COWS (2697) Randall H. Hinshaw, D.V.M. (540) 246-2697

Fall Breeding Season is Here!!!

18-20 month old Angus bulls for sale

Sire: Gambles Convoy

Reasor Simmentals 276-620-3123 skrlkr@embarqmail.com

Simmental & SimAngus Bulls for Sale

CALENDAR OF EVENTS

Sire: SAV Brave

11/7 VA Charolais Assoc Fall sale VT Blacksburg, Va

Classic Cattle Company LLC Matthew & Kymberly Coffman McGaheysville, VA Kymberly’s Cell: 540-820-6087 Classiccattle@gmail.com

11/14 VA Tech Surplus Property Auction Blacksburg, Va 11/28 Scott County VPA Bred Heifer sale Abingdon, Va Sire: Final Answer

12/5 SWVAA SWVA Finest Angus Bull and Female sale Abingdon, Va 12/12 VA BCIA Bull sale Culpeper, Va

USDA responds to New York Times Article Alleging Cruelty

PAGE 44, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

The USDA’s Meat Animal Research Center in Clay Center, Neb. (MARC) has responded to specific statements made in a January New York Times article that alleged inhumane practices at the center. MARC stated in an interim report released as a response to the Jan. 19 New York Times article that the center stands behind its protocols and scientists. In March the USDA’s Office of Inspector General (OIG) began its review of USMARC’s research practices and operations in response to concerns expressed by Congress and reported by the media regarding animal welfare.

In January USDA Secretary Tom Vilsack and Nebraska legislators called for an investigation into the animal welfare and care at the research center.

In its interim report, released last week, the USDA said that it identified 33 questionable statements from the article and has reviewed documentation from the Agricultural Research Service and the University of Nebraska at Lincoln documentation dating back 25 years and has interviewed more than 30 current and former ARS and UNL personnel.

Some of the 33 statements made by the New York Times are listed below: NYT statement: “... center scientists have been operating on pigs’ ovaries and brains in an attempt to make the sows more fertile.” ◦MARC response: Through a review of USMARC documentation and interviews of USMARC personnel, we determined that surgeries involving pigs’ ovaries have been a part of USMARC’s research.

Our fieldwork found that surgeries performed in connection with research are focused on obtaining information on how various biological aspects interact and affect pig fertility, which, in turn, could be utilized by the industry in making selection and management decisions. While surgery on pigs’ brains was approved as part of a research plan at USMARC, we did not find

any evidence that such surgery was actually performed at the facility.

NYT statement: “Of the 580,000 animals the center has housed since 1985, when its most ambitious projects got underway, at least 6,500 have starved.” ◦MARC response: Through a

W L

H

F

QUALITY GELBVIEH, BALANCER AND ANGUS CATTLE

review of USMARC data, we determined that over 6,500 animals have been coded as having died due to starvation since 1985. Based on interviews of current and former USMARC personnel, the starvation code within the USMARC data does Continued on Page 45.

Double J Livestock LLC WEEKLY BUYING STATION

4176 Silling Rd., Dayton,VA 7145 Polly Pitcher Hwy, Greencastle, PA

540-879-BULL (2855)

Direct Agents for Slaughter&FeederCattleSales NEED GRAZING CATTLE? We purchase & sell “Farm Fresh” calves to meet your needs.

JBS FED Cattle Buying Station

Grade and Yield Your Fed Cattle HERE.

Little Windy Hill Farms Doug & Sue Hughes

6916 Peppers Ferry Road Max Meadows, Va 24360

H 276-637-3916 LWHF@Wiredog.com Cell 276-620-4271

All prices FOB Wytheville VA, subject to change

MikeAllen•540-476-4680-LoadLots JamesHousden • 540-476-0269• Feeder/Fats Barry Wilkins, Jr. • 540-607-6032 • Feeder/Fats

From Page 44

USDA Responds not indicate that animals were not provided adequate food by USMARC personnel. They explained that this code is used when an animal is found dead with no fat on its body. These deaths generally occur early in life as a result of complications with nursing.

NYT statement: “That veterinarian, Shuna A. Jones, wrote to scientists and managers in 2011 and 2012 with a variety of concerns, including barns so stuffed with pigs that workers could not clean them, resulting in spates of diarrhea and respiratory disease. ‘This is a scheduling nightmare,’ wrote Dr. Jones, who declined to be interviewed.

‘We have pigs everywhere.’” ◦MARC response: Through a review of USMARC data and interviews of USMARC personnel, we determined that this email stemmed from USMARC changing its farrowing system.

For a brief period during the transition, the two farrowing

systems overlapped and created a hectic situation. Our review of USMARC’s swine health data did not find evidence that there was a marked increase in diarrhea or respiratory diseases during this period. Furthermore, we determined that the live birth piglet mortality rates for this period were within industry norms.

NYT statement: “Yet unsettling

side effects surfaced. Some 95 percent of the females born with male siblings had deformed vaginas.” ◦MARC response: Through interviews of multiple veterinarians and our own research, we determined that the deformity referenced by the article is called “freemartinism.”

We determined that it is a very commonly known condition that results from a male/female

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 45

twin set, rather than a unique side effect that arose as a result of the Twinning Project. Furthermore, multiple veterinarians have confirmed that, other than being sterile, animals with this

condition suffer no ill effects or pain and can still enter the food supply.

In its report, MARC declined to respond to 11 statements in the article.

SCOTT COUNTY CATTLEMEN’S ASSOCIATION, INC 11TH ANNUAL VIRGINIA PREMIUM ASSURED BRED HEIFER SALE Saturday, November 28th at 12 Noon Washington County Fairgrounds, Abingdon, VA Approx 100 Heifers Bred For Spring Calving Most Heifers Bred AI and Fetal Sexed Contact: Smith Reasor Auctioneer & Sales Manager Phone: 276-620-3123 Scott County Extension Office Phone: 276-452-2772

Good Morning World! Photo Taken at Sinking Creek Cattle and Land LLC. in Sinking Creek , VA

Visit scottcountycattle.weebly.com to view catalog

Matney Angus Farm A Total Performance Program With Your Satisfaction Our Top Priorty.

Matney 1456 of 1108, Reg. AAA 18107442 D.O.B 4/15/2014, Sire. Rito 4036 of Rita 6R40 338 B.W. +2.5 W.W. +62 Y.W. +101 CEM +6 Milk +29 $EN -26.84 $B +133.70

MATNEY Safeguard 1408 , Reg. # 17898392 D.O.B. 2/28/2014, Sire PA Safeguard 021 B.W. +2.4 W.W. +49 Y.W. +90 CEM +4 Milk+24 $EN -12.43 $B +132.44

MATNEY War Party 1428 , Reg. AAA 17898286 D.O.B. 3/13/2014, Sire Werner War Party B.W. +.8 W.W. +45 Y.W. +91 CEM +8 Milk +27 $EN -18.42 $B +123.44

More Bulls Available, Ready To Work For You, Give Us A Call.

Keith Matney Home: 276-964-9205 Cell: 276-971-6809

Check out our bulls on Matney Angus Farm’s Facebook page!

Thanksgiving Wishes From Our Family to Yours!

Jason Matney Cell: 276-964-3809 matneyangusfarm1984@yahoo.com

KIDS COLORING CONTEST! THE BEST COLORER OF EACH AGE GROUP WILL WIN A $50 SAVING BOND. THE COLORED PICTURES WILL BE JUDGED IN 4 DIFFERENT AGE GROUPS. AGES 4 TO 6, 7 TO 9, 10 TO 12 & 13 PLUS. PLEASE MAIL YOUR PICTURE TO: VCA, P.O. BOX 9, DALEVILLE, VA 24083 ALL PHOTOS MUST BE MAILED IN BY NOVEMBER 15TH. WINNERS WILL BE ANNOUNCED IN THE DECEMBER NEWSPAPER. PLEASE BE SURE TO PUT YOUR NAME AND OTHER CONTACT INFORMATION ON THE BACK OF THE PICTURE OR ON ANOTHER SHEET OF PAPER WHEN YOU MAIL IT IN. THANKS AND GOOD LUCK!!

PAGE 46, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 47

Sunshine therapy in San Diego!

SET SAIL SAN DIEGO Join NCBA Today!

Name _____________________________________________ Business/Ranch Name ________________________________ Address ___________________________________________ City _______________________ State ______ Zip ________

CATTLE INDUSTRY CONVENTION NCBA Membership Categories NCBA TRADE SHOW

Phone ____________________________________________ Email _____________________________________________ Recruited by _______________________________________ Please select the option that best describes your primary operation.

Cow/Calf Producer o 1-100 ...........................$150

o 1001-1250 ................$1,150

o 101-250 .......................$300

o 1251-1500 ................$1,400

o 251-500 .......................$450

o 1501-1750 ................$1,650

o 501-750 .......................$650

o 1751-2000 ................$1,900

o 751-1000 .....................$900

o 2001+ ...... $1,900 + 38¢/hd over 2,001 head

January 27-29, 2016 San Diego, California

Stocker/Feeder $150 + (38¢/hd x________hd=________) Total $_________

Join NCBA Today!

Name _____________________________________________ Business/Ranch Name ________________________________ Address ___________________________________________ City _______________________ State ______ Zip ________ Phone ____________________________________________ Email _____________________________________________ Recruited by _______________________________________

NCBA Membership Categories Please select the option that best describes your primary operation.

Cow/Calf Producer o 1-100 ...........................$150

o 1001-1250 ................$1,150

o 101-250 .......................$300

o 1251-1500 ................$1,400

o 251-500 .......................$450

o 1501-1750 ................$1,650

o 501-750 .......................$650

o 1751-2000 ................$1,900

o 751-1000 .....................$900

o 2001+ ...... $1,900 + 38¢/hd over 2,001 head

Stocker/Feeder $150 + (38¢/hd x________hd=________) Total $_________

Associate Membership Non-cattle owning. Non-voting.

o Individual ...................$150

Associate Membership Non-cattle owning. Non-voting.

o Individual ...................$150 o Business ......................$200 o Student (24 or younger)$50

Payment Method o My check is enclosed -- Please make checks payable to: NCBA o MasterCard o Visa o American Express Card Number ______________________________________ Expiration Date______________________CCV___________ Signature __________________________________________ Return payment to: NCBA P.O. Box 173778 Denver, CO 80217-3778

Join online at www.BeefUSA.org or call the Membership Hotline at 866-233-3872.

PAGE 48, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

A Dirt Road Diary

When A Cowboy Gives Thanks

Steve Lucas On Thanksgiving Day, folks will join in houses across our land To share the things they are thankful for, both the little and the grand Like health and wealth and family, food, pets and friends they’ve made, paid off loans, new smart phones, and their daughter’s passing grades.

Folks’ lists will be fairly short, though the Lord’s been good to most.

They don’t want to say too much; they sure don’t want to boast.

But I’ll warn you, if a cowboy has been invited to the feast Be prepared for an oration of fifty minutes at the least.

‘Cause a cowboy’s seriously thankful for the blessings God bestows Most days it’s just him and the Lord, and you can bet he knows, That the miracles he sees every day come from heaven above He and God have a relationship; it’s almost hand in glove.

So he can’t wait to share what he’s seen with anyone who’ll listen ‘bout the beauty of fall colors and spider webs that glisten In the morning sun, and calves sleeping in the shade.

He won’t take the credit; it’s all what God has made.

He won’t see folks getting antsy, or the dinner getting cold He’ll just keep sharing his long list. He cannot be controlled.

So go ahead and eat your dinner, he won’t mind you anyway.

He’ll eat his later with his dog and horse. It’s just the cowboy way

FOR SALE

Scott County’s VPA Heifers will be sold.

November 28, 2015 at 12 NOON Washington County, VA Fair Grounds 9 F1 Breds Heifers!

- Dams Registered Angus Female with Productions Records.

- Sire (Led Bull at 2012 Richfield Farm Braunvieh Bull Sale).

Profit from the benefits of cross breeding. See braunvieh.org

FOR MORE INFORMATION CONTACT: James S. Osborne 276-479-3132 Auctioneer - Smith Reasor - 276-620-3123

The Beef Quality Assurance effort has been an extremely effective tool to build quality into beef products—not just to rely on inspections at the end of the process. All across America, ranchers recognize they are producing high-quality food for consumers— not just selling calves or growing stockers. This is a huge difference between cattle producers and many other industries.

John Maas, Chair of BQA National Advisory Board

Winter Feeding Workshop Monday November 9 5:30-6:30 pm

Augusta Extension Office 13 Gov’t Center Ln., Verona

Monday November 16 5:30-6:30 pm

Rockingham Extension Office 965 Pleasant Valley Rd., Harrisonburg

FREE This workshop is designed to help you prepare a personalized feeding plan for your livestock this winter.  Save money.  Accurately match hay to protein and energy sources  Compare various by-product feeds and supplements  Get up-to-date costs and feeding recommendations Contact us to register and inquire about getting a free hay test prior to the meeting Matt Booher, 540-245-5750; mrbooher@vt.edu

Virginia Cooperative Extension programs and employment are open to all, regardless of age, color, disability, gender, gender identity, gender expression, national origin, political affiliation, race, religion, sexual orientation, genetic information, veteran status, or any other basis protected by law. An equal opportunity/affirmative action employer. Issued in furtherance of Cooperative Extension work, Virginia Polytechnic Institute and State University, Virginia State University, and the U.S. Department of Agriculture cooperating. Edwin J. Jones, Director, Virginia Cooperative Extension, Virginia Tech, Blacksburg; Jewel E. Hairston, Administrator, 1890 Extension Program, Virginia State, Petersburg.

If you are a person with a disability and desire any assistive devices, services or other accommodations to participate in this activity, please contact Matt at (phone number/TDD*) during business hours of __8___ a.m. and ___5__ p.m. to discuss accommodations 5 days prior to the event. *TDD number is (800) 828-1120.

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 49

Steve Dittmer for Drovers

Resolution of mCOOL Still Waiting

A key question for livestock producers is, what has been happening behind the scenes on the mCOOL issue while Congress has been on recess? The answer is, progress is hard to detect.

As you may know, the House passed a repeal bill shortly after the World Trade Organization (WTO) made its fourth and final decision that the U.S. mandatory country-of-origin-labeling (mCOOL) law did not meet WTO rules. Because the United States has failed to adequately revise or repeal its regulations to meet the rules and lost all appeals, that means the winners in the case â&#x20AC;&#x201D; Canada and Mexico â&#x20AC;&#x201D; have the power to decide what constitutes settlement of the case or to request permission to retaliate against imports of U.S. products into their countries. Canada and Mexico have said plainly that repeal of the law is what they would accept.

They filed retaliation figures â&#x20AC;&#x201D; based on damages they have suffered â&#x20AC;&#x201D; totaling $3 billion for Canada and roughly $600 billion for Mexico.

While weâ&#x20AC;&#x2122;re guessing this whole dispute would have been resolved years ago if the United States Trade Representative (USTR) had been in charge instead of USDA, the USTR is not helping things now. USTR issued a report claiming the damages were only $91 million, a figure so ridiculously low that this dispute would never have risen above pimple status if it were valid.

Meanwhile, Sen. Debbie Stabenow (D-Mich.) and a group of both Democratic and Republican senators have ridden onto the scene very late in the game and proposed a very lame â&#x20AC;&#x153;solutionâ&#x20AC;? that amounts to the federal government setting the rules on a â&#x20AC;&#x153;voluntaryâ&#x20AC;? labeling program for U.S. beef and pork. There are all kinds of problems here.

There has never been any reason the beef production chain couldnâ&#x20AC;&#x2122;t have voluntarily put a USA label on beef, as long as they could back up the claim.

They just couldnâ&#x20AC;&#x2122;t put it on the USDA weight and grade label

because it had nothing to do with pricing, and the inspection stamp and label is a separate issue. The big packers never did it on their own because consumers didnâ&#x20AC;&#x2122;t want it enough to pay for the cost of segregating production.

Now some rancher groups are complaining they donâ&#x20AC;&#x2122;t have a program to take advantage of a USA label if mCOOL goes away. There have been sourceand age-verified programs they could participate in, but Iâ&#x20AC;&#x2122;m not sure how many of those put a

USA label on it. But they are up- R-CALF wants to hold to the Contined on Page 51. set it wouldnâ&#x20AC;&#x2122;t be a government original mCOOL program and program. Now they say a government program would force the packers to segregate cattle in the processing segment even to make a voluntary program possible. Isnâ&#x20AC;&#x2122;t that interesting, since their previous position was segregation is just a strawman obLease a Roseda Black Angus bull and become a jection the packers had made up out of thin air because they partner in an innovative branded beef didnâ&#x20AC;&#x2122;t want a mCOOL program. program.Roseda Farm will purchase your Roseda Behind the scenes, R-CALF and National Farmers Union sired calves at competitive prices plus a premium (NFU) have fallen out because

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These heifers were produced in North Dakota and South Dakota and developed in SW Virginia. Heifers were bred to start calving January 25, 2016, and are located in Southwest Virginia near Rosedale, Virginia.

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PAGE 50, NOVEMBER 2015, THE VIRGINIA CATTLEMAN

Working for Virginia’s Cattle Industry  Marketing Virginia feeder cattle through special graded sales, tel-o-auctions, and special board load sales  Supporting Virginia’s cattle industry through representation at regional and national industry events  Providing educational opportunities to Virginia’s cattle producers on a local and state-wide level  Representing the cattle industry in regulatory and policy issues  Working with industry groups, media and government to insure Virginia’s Cattlemen have a voice Membership benefits include a one year subscription to The Virginia Cattleman newspaper—providing valuable and timely information to VCA members!!

For more information call our office at (540) 992-1009 or visit http://vacattlemen.org/membership_join.php

Name ___________________________________________ Farm/Business Name ________________________________ Address __________________________________________ Town/City __________________________ State ________________________________ County: ____________________________ Zip Code: ____________________________ Phone: _______________________ Email: _____________________________________ _____ General Membership: ______

$50.00

(Includes subscription to The Virginia Cattlemen newspaper)

Allied Industry Member: $300.00

(Local Cattlemen groups and breed associations with budget <$10,000)

______

Allied Industry Member: $600

______

Associate Member: $300

(Livestock Markets, Agribusinesses, Lenders with budget <$1 Million)

____ Associate Member: $600

(Livestock Markets, Agribusinesses, Lenders with budget >$1 Million)

____ Associate Member: $1000

(Local Cattlemen groups and breed associations with budget >$10,000)

(Livestock Markets, Agribusinesses, Lenders with budget >$10 Million)

_____Please renew my membership

(Current members only)

♦ Please return to: Virginia Cattlemen’s Association ♦ P. O. Box 9 ♦ Daleville, VA 24083-0009 ♦

From Page 49

tary program Stabenow is proposing in her bill might satisfy the technical rules of the WTO. They say it might because there is much disagreement among “compromise” voluntary bill. international law professors and The USTR has also muddied experts as to whether a volunthe waters by saying the volun- tary program is really voluntary

Resolution

if a government body sets the standards that need to be met.

Regardless, Canada and Mexico hold the whip hand because everyone knows the rules when they join and operate under the WTO. The United States has defiantly refused to follow the rules, even when repeatedly warned by successive rulings, and has provoked our biggest trade partners. The WTO committee that resolves the retaliation dollar figures met in mid-September.

Meanwhile, Stabenow and her compadres are holding out. While her known group is too small to defeat Sen. Pat Roberts (R-Kan.) repeal amendment, there is some doubt that Roberts has the votes to pass his amendment and get it sent to the president’s desk before retaliation.

THE VIRGINIA CATTLEMAN, NOVEMBER 2015, PAGE 51

2015 DUBLIN FEEDER CATTLE ASSOCIATION FALL GRADED SALES 11/6/2015 7:30pm Stock Cow Sale ALL Sales held at Pulaski Livestock Market Sale Time 7:30 PM Dublin, VA 540-674-5311 Sale Time 7:30 PM

For Info Contact: Joe Meek OFFICE 540-674-5311 HOME 540-674-6080 Malcolm Boothe HOME 540-980-6914

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