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The Line Rider is the official publication of the Idaho Cattle Association. It is published 10 times each year, in January, February, March, April/May, June, July/August, September, October, November and December.
Maximize the good times
Making the decisions that are right for your operation
Finances are a hard topic for me to write about. Every operation is unique and every operation is different, so it is difficult to dole out advice from my perspective.
As a feeder and a cow-calf producer, I often get asked the question in the fall of whether or not to sell or retain calves. Of course, when the market is
Whether its feeders or live cattle, sell when they—and you—are ready.
$3.45 per pound for a five-weight, I would love to tell people to hold off and retain ownership. Then when it drops to sell them. That is the feeder in me. As a cow-calf producer, sell when it’s high. The point that I am getting at is that you should do what is right for your operation. There is always going to be money left on the table in any deal. So, my advice always ends with, “well, if you
BY SPENCER BLACK ICA President
are turning a profit, then sell.” Whether its feeders or live cattle, sell when they—and you—are ready.
We also produce cattle in a time where we have many resources for success, such as Pasture, Rangeland, and Forage (PRF) insurance and the Livestock Risk Protection (LRP) program to help aid us in unforeseen weather changes or market ups and downs. We have people to turn to that can help us navigate these programs to our best benefit.
These tools have helped the industry weather the bad times so that, hopefully, we can enjoy the good times that we are in now. Whether it’s updating old equipment or paying down some debt, prices for cattle are good and the cattle industry in Idaho is very strong. We have options to sell our cattle with 3 new processing plants. Feeders are expanding and the general population wants us grazing public ground to produce the most valuable protein.
Personally, I am looking forward to another good year. While every operation is unique, assume the amount of risk you are comfortable with, and make our selling/buying decisions based on your comfort level.
January 6
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A season of tradition... and change
Reflecting on the past and looking to the future
As we work our way through December, I think of the upcoming Christmas holiday and some of the songs, poems, and stories that are part of our tradition. Songs that come to mind include “The Twelve Days of Christmas,” “Rudolph the Red-Nosed Reindeer,” “Frosty the Snow Man,” or even Bing Crosby’s “White Christmas.”
Tradition is a big part of our industry and, for many of us, is one of the things that we love about our western heritage. We are thankful to continue the traditions that have stayed alive and continue to live through our work, our fun, and our families. However, at times, I think it is fun to put a little spin on tradition. How
We need to continue our work to help our decision-makers understand how they influence our industry.
about “Redneck Twelve Days of Christmas,” or, one of my favorite laughs, “Leroy the Redneck Reindeer”? I still remember the annual tradition of my cousins and I of singing “The 12 Days of Christmas,” with each of us having a number to sing from 1-12. Often, when it came to our turn, we’d slip in a parodied “redneck day.”
This November we participated in one of the most important traditions of our country. The election of our president is quite traditional, as well as the election of other officials at both the state and federal level. However, there seemed to be little tradition in this campaign season. It is only the second time in US history that a president has been re-elected in non-consecutive terms, and having a candidate on the ballot
BY CAMERON MULRONY ICA Executive Vice President
that was not a presidential candidate in the primaries was a first for me as well. Despite the somewhat untraditional aspects of the election, the voters turned out, which is the most important part of the process.
The Idaho legislature will look different once again, with new faces in some seats alongside those returning to their positions. I ask that you to watch your representatives in our state house -- are they a good representation of your district? As I look at the change over my short time here at the ICA office, I am concerned that the voice of Idaho agriculture, which is the lifeblood of our state, is slowly eroding in the state house. We may have many of the correct people there, but there are certainly fewer folks directly involved in agriculture than there were just a short 8 years ago. This is why we need to continue our work to help our decision-makers understand how they influence our industry. January is less than a month away and the ICA will be working on behalf of your industry to help provide perspective for our leaders during this legislative session. Please make sure you are signed up to receive updates and commenting opportunities from “The Western Martingale” (www.westernmartingale.com) and ask your friends or acquaintances to join as well.
I’ll leave you with a wish of Happy Holidays and a very Merry Christmas, along with the words of a poem that suits our industry well during this time of year: “A Cowpuncher’s Night Before Christmas,” by Shawn Williams.
A Cowpuncher’s Night Before Christmas
By Shawn Williams
’Twas the night before Christmas.
All the ponies had been fed.
I was tryin’ to choke down
A few beans before bed.
But my belly was churnin’. It just wouldn’t sit still. It was gonna be a long night, I sure nuff could tell.
’Cause in my string of horses
There was one called Saint Nick. And thinking ’bout ridin’ him Sometimes made me sick.
Ol’ Flipper had come in With a front leg a draggin’ Last fall during shippin’ When we was out on the wagon.
Saint Nick was an extra In the outfit’s remuda. And every time you got on him He’d give a gift to ya.
That gift was a bronc ride, And I don’t mean no hoppin’. He was sin covered lightnin’ That would get your ears to poppin’.
Saint Nick liked to buck, But that wasn’t all. He’d kick ya, and bite ya And was sure bad to paw.
But the boss cut him to me. That’s just part of the deal. Flipper got turned out For the winter to heal.
I thought it kinda funny
That it was Saint Nick’s turn to go With me checkin’ heifers The next day in the snow.
So I lay in my bedroll With the fireplace a crackin’. Had terrible nightmares ’Bout my poor neck a snappin’.
I woke up at midnight, Again at two-thirty. I decided to saddle Saint Nick This time a little early
I thought, I’ll set him to soak With the cinches pulled tight. Come daybreak, that’ll help Take out some of the fight.
Well, I got him saddled Out there in the dark. It was kinda like hand-feedin’ Breadcrumbs to a shark.
I came back inside
He’d jump sideways While he chewed on a foot. The red, fuzzy coat Popped out chimney soot.
He’d show you his belly, Then stand on his head. I noticed the fat feller’s Cheeks turnin’ red.
To wash the blood off my head, And to see how much of my White shirt had turned red.
I lay down again. Maybe now I could rest. He was still gonna try me, But maybe not with his best.
I’d just closed my eyes When I heard such a racket. I stumbled out of bed, Put on my denim jacket.
As I walked to the horse pens The moon lit the stage, And the icicles shone bright On the high-desert sage.
Out in the big pen
On a fresh carpet of white My eyes took in The most amazing, wild sight.
Saint Nick was a-makin’ A wild, crooked leap With a potbellied feller Sittin’ up there in the seat.
He throwed him his head With one hand in the air. Saint Nick touched the ground And growled like a bear.
I’ll tell ya in my life, boys, I’ve sure seen some rides, But I thought that critter Would buck out of his hide.
Saint Nick finally winded And throwed his head up. Started lickin’ his lips Like an old, gentle pup.
The rider stepped down To hand me the reins. I noticed in his mouth A broken candy cane.
That’s when it hit me. My mind started to click. I’d just watched Saint Nick Ride ol’ Saint Nick.
Then I noticed his team, And his little red sleigh. His reindeer were hobbled, Eatin’ some of my hay.
He said, “Merry Christmas. Hope that present will do. I knocked some of the rough off That ol’ pony for you.”
Then he buttoned his coat And limped on away. Unhobbled his reindeer, And climbed into his sleigh.
I heard him exclaim As he headed back North, “I ain’t never seen nothin’ Buck like that ol’ horse!”
This may not be the traditional night before Christmas, but it’s a good read for a cowpuncher!
Poised and ready Time to take advantage of new opportunities
At 10,339 feet, Cache Peak reigns majestic over southern Idaho. My family’s Forest Service grazing allotment starts at the bottom of the valley below Cache Peak and goes all the way to the top. The ridgeline is our boundary. Naturally, this is heavy snow country, which requires a let-down fence. Our cattle come off the forest near the end of October and every year, it is a race to beat the snow in order to get to the top of the mountain to take the fence down. Due to commitments on the home front, we were not able to make it up there this year until
Like my decision to chop down a Christmas tree early, now is also the time to take full advantage of the political environment.
several days into November. Heavy snowstorms had already dragged their way across the mountain top, which made for an arduous job trekking through knee-deep snow near trails that had become impassable by any vehicle. The road to the top passes through some heavily forested areas. Although the snow made for a very long day’s work, it also created a festive, holiday sort of mood as it rested peacefully on the tree branches. While in this mood, I half-jokingly mentioned the idea that we should just cut down our Christmas trees while we were up there. So, on our way back down, that is just what we did. Now, I’m a stickler for giving Thanksgiving its due and not celebrating Christmas before the fourth Thursday in November, but the temptation to cross this task off my
BY KAREN WILLIAMS ICA Natural Resources Policy Director
to-do list was just too great—especially because this particular grove of trees mirrored a real-life Christmas tree farm chock-full of perfectly-sized potential Christmas trees. If we waited until December, and the certain influx of snowfall, there would be no hope of getting back to this spot. The perfect Christmas tree was chopped down and brought home to await its day of grandeur in my living room, loaded with as many lights as the branches can hold and dressed with the ornaments reflective of Christmases past.
Like my decision to chop down a Christmas tree early because the opportunity presented itself, now is also the time to take full advantage of the political environment we now (somewhat surprisingly) find ourselves in. As President Trump’s cabinet positions are being filled and leadership posts in Congress are being set, our industry is likewise preparing policy statements and formulating positions on key issues we either need to introduce, abolish, or amend. As they say, let’s strike while the iron is hot. We have been in this position before, or so we thought, poised to make great improvements to the regulatory conditions which govern the ability to raise cattle in Idaho. However, in previous instances, it has seemed to take the new administration so much time to get settled into office and figure out the lay of the land that the congressional majority would flip before anything of substance could be accomplished. This time feels different, dare we hope. President Trump has been here before. This time around, he is not starting at ground zero. One would hope that he and his administration would be able to get right to work starting January 20th, 2025.
As this happens, ICA will be poised with its priority list and will be knocking down doors to make needed changes and improvements to laws and regulations. One of the key items will be the Bureau of Land Man-
agement’s (BLM) sage grouse management plan. The new final plan was issued in November and failed to adequately incorporate our concerns. The newly unveiled plan was especially frustrating because we were actually so close this time around to coming to an agreement on how to manage grazing in the presence of the species’ habitat. But, not only did the BLM not address our outlined concerns, they also added a new layer of protection which was not analyzed in the draft plan. ICA will protest the decision on these points of difference by the December 16th deadline, but will also turn to the administration to find solutions, hopefully outside of the courtroom.
Another issue we will work to turn around is the BLM’s Public Lands Rule, finalized this spring, which could drastically alter the way BLM lands are managed and increase the designation of restrictive Areas of Critical Environmental Concern (ACECs). As we seek to roll back this rule, we concurrently will encourage the administration to reinitiate the revision of the BLM’s grazing regulations. This is a priority that we fought hard for during President Trump’s last tenure, but unfortunately, the administration moved at a glacial pace on this issue. Hopefully, they will have learned their lesson and act quickly this go-around. When they do, we are ready to go with our suggestions for greater efficiency and sound sense in the way grazing is managed on public lands.
As I have considered the possibilities for change, I have had to remind myself to temper my expectations somewhat. Energy development is obviously a primary issue for the Trump administration. Most of us can agree on the need for a stable domestic energy supply. However, we may not agree on how that energy is obtained. Large-scale renewable energy development on public lands, particularly solar development, which would reduce forage available for grazing, is a non-starter for us. Obviously, the previous administration was not concerned about our industry and was hyper-focused on this so-called green energy. Time will tell how this issue will be handled by the new administration, and we will be vigilant in expressing our concerns.
As the Trump administration is unveiling its agenda, ICA is preparing to take our key issues and solutions to the highest levels. To start that process, our board will meet later this month to set our annual priority list based on the most current and pressing issues. If there is an issue you would like ICA to take action on, be sure to reach out to your local board member or me so that we can target it for our priority list, which will serve our roadmap for the coming year. Meanwhile, take a moment to soak in the feelings of hope and renewal that come not merely with a change in government leadership, but, more importantly, with the light of the Christmas season. You can find me doing so in one of my favorite places, under the glow of my Christmas tree.
COVER STORY
BY MICHAEL FLERCHINGER, CPA AND PRINCIPAL NICHOLS ACCOUNTING
Navigating Strategies for
The 2024 election cycle is now complete, and with this comes some clarity about what tax policy may look like for the next couple of years. As this is being written, the Presidency and Senate will be under Republican leadership, and it is likely the House will as well. Many of the tax laws businesses and individuals are operating under are due to the Tax Cuts & Jobs Act (TCJA) that began in 2018 under the Trump Administration. Without action from Congress, these tax laws are scheduled to sunset at the end of 2025. If both chambers of Congress end up
SUCCESS
Managing your finances amid changing tax policy
with Republican control, it is likely most provisions of the TCJA will be extended, or made permanent. Permanent in taxes is a loose term, as its permanence lasts only as long as the party in charge retains power. While this provides businesses and individuals some certainty for the next couple of years, it does not change the longer-term urgency for tax management under current and future tax policy. Following are long-term planning strategies, including ways to manage taxes for the high cattle prices the industry has been experiencing.
DEFERRAL OF CATTLE INCOME DUE TO DROUGHT OR OTHER WEATHER-RELATED CONDITIONS
Several Idaho counties have USDA designations for 2024 that allow for nonrecognition, or deferral of income from cull cattle and young stock sold due to drought.
• Cull Cows & Bulls – To the extent your operation has sold more than a normal amount, for your operation, of cull cows and bulls, nonrecognition of that income can be elected for the excess on those head sold due to drought, assuming replacement property is purchased that is equal to or greater than the gain. The replacement period is 4 years.
• Deferral of Young Stock Income – To the extent the sale of calves is accelerated to an earlier tax year, again, in excess of the operation’s normal practices, that excess income can be deferred to the following tax year. Both provisions above require an election to be attached to the tax return and are available only to cash basis taxpayers.
FARM INCOME AVERAGING & SELFEMPLOYMENT TAX CONSIDERATIONS
A provision in the tax code afforded to farmers and ranchers is called Farm Income Averaging and is a useful tool for managing marginal tax rates. Farm income averaging allows taxpayers to elect a certain portion of farm income for the current year to be taxed at marginal tax rates applicable to the three prior tax years, the base years. This works best in years when there is a large increase in taxable income compared to the base years’ taxable income. The mechanics of farm income averaging essentially takes elected farm in-
come and splits it into thirds and applies that income to the base years to come up with an averaged tax on the base years that is applied to the current year income.
It may be advantageous to amend prior year tax returns to help with current year farm income averaging. If in prior years, there were depreciable capital asset additions on your ranch, you may have an opportunity to go back and amend your tax return to use Section 179 depreciation. This provision allows you to select how much depreciation you take on qualifying assets purchased in that year. Assuming Section 179 was not already elected, that amended return could create a lower income base year that will help with current year income averaging. If you have a tax advisor prepare your tax returns, you will want to ensure the additional cost of that amendment is worth the tax savings. In the right situation, farm income averaging can save tens of thousands of dollars in taxes.
It is a natural tendency for taxpayers to defer income and taxes. However, when there are multiple years of increased income, management and timing of that is crucial. Self-employment taxes (Social Security 12.4% & Medicare 2.9%) is an area where tax savings can be realized by bunching income into one or two years. For 2024, Social Security is not paid on earnings above $168,600 and for 2025 this amount is $176,100. Any amounts above these thresholds are not subject to the 12.4% Social Security tax. Medicare tax of 2.9% will still apply on all earned income levels. Depending on what your operation projects for 2025, it may be advantageous to accelerate income into 2024 to take advantage of the lower 2024 Social Security earnings base, but to also take advantage of the lower base years for farm income averaging.
MANAGING RANCH FINANCES IS MORE COMPLEX THAN JUST DECIDING WHEN TO SELL OR HOW MUCH FEED TO BUY.
RETIREMENT PLANNING STARTS NOW
In good times and bad, planning for retirement is critical to the long-term viability of a generational ranch. It is not uncommon to see a ranch go through hardships when it is time for the elder generation to be less involved in the operation, and proper planning has not occurred for that generation to pay for living costs in retirement years.
It is a natural tendency for taxpayers to defer income and taxes.
However, when there are multiple years of increased income, management and timing of that is crucial.
With cattle prices at current levels, now is a good time to start funding retirement. There are a number of options available including traditional and Roth IRAs, SEP and SIMPLE IRAs, 401(k) plans, and cash balance plans. The details of each of these plans are beyond the scope of this article but be aware that there are several options available that would be suitable for a range of operations of all sizes. Some plans could potentially allow for significant amounts to be contributed.
Care should be taken when selecting a plan due to varying levels of funding, complexities involved, and they need to be designed with the ranch owners’ goals in mind. Few
plans are the same. Some plans are required to be established by certain times during the year. You should consult with your financial and tax advisors early to properly select a plan that achieves the desired goals.
SUCCESSION AND ESTATE PLANNING STARTS NOW
The best time to start your estate plan and operational succession plan is right now. The Federal estate tax lifetime exemption amount for 2024 is $13,610,000 per individual and increases to $13,990,000 for 2025. After 2025, assuming no changes to the TCJA as mentioned previously, this will revert to 2017 levels of approximately $5 million with an adjustment for inflation. While these do seem like large numbers, with the pressure that land investors have put on real estate, it may be surprising how much even a modestly-sized ranch can be valued at for estate tax purposes. According to the USDA, the average U.S. pastureland value for 2023 was $1,760 per acre, which is a $110 increase from 2022 and a 66% increase since 2009. With the value of the real estate and other operational assets, estate
tax exposure could easily creep up on certain ranchers. Even though Idaho does not have an estate tax, you should consider the potential exposure at the Federal level, if nothing else, to know the level of your net worth to aid in succession planning.
Along with an estate plan, each ranch that is likely to continue to a succeeding generation should have a well-thought-out succession plan. There are a lot of intricacies to a succession plan and each one is as unique as the operation it is created for. Some of the things to think about in a succession plan are as follows. This list is certainly not exhaustive.
• Who is involved in the next generation?
• How are off-ranch family members part of the succession & estate plan?
• Are life insurance policies necessary for owner buy-outs?
• How will the elder generation be compensated as the new generation takes over?
It cannot be stressed enough that the process of succession needs to start early, and discussions need to be frequent with the involvement of proper stakeholders.
While there is now some clarity as to which way the politicians will drive tax policy over the next few years, there is still plenty of uncertainty in agricultural operations beyond taxes. As we go into 2025 and see changes to Federal tax policy, it is important to keep in mind that the big picture is keeping your ranch healthy and productive. This certainly involves tax management, but it is only a piece of the puzzle that keeps your ranch able to continue for generations to come.
Not all strategies in this article will fit your situation. Facts and circumstances across operations vary significantly. You should consult with your advisors in your planning processes. If you are interested in learning more about the topics above, or Nichols Accounting Group P.C. and how we can help build your legacy, please visit our website at www.nicholsaccounting.com or email discovery@nicholsaccounting.com for a consultation.
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Building Consumer Trust And Beef Demand
How the Beef Checkoff is expanding beef promotion and education.
ABY IRA BRACKETT Past IBC Chairman
s Chairman of the Idaho Beef Council, I am proud to reflect on another year of significant progress and growth within our industry. I have had time to look back on some of the strategic programs and valuable partnerships, which will provide return-on-investment for our Idaho beef producers and ensure long-term sustainability and success for our industry.
One key initiative has been the Beef Quality Assurance (BQA) program, which has played a critical role in promoting responsible management practices across our state’s beef operations. As we expand the reach of BQA, it’s important for producers to recognize that the tools and knowledge gained through the program help secure a strong market for their products, leading to long-term success. This commitment to excellence strengthens consumer confidence in our product and enhances Idaho’s reputation as a leader in the beef industry.
Together with our partners, we are navigating challenges, addressing consumer demands, and preparing for the future with confidence. As we move forward, the Idaho Beef Council remains committed to supporting our producers, growing markets, and enhancing the overall value of Idaho beef. We are grateful for the continued support and trust of our producers, industry partners, and consumers. Thank you for being a part of this journey as we work together to keep improving and promoting Idaho beef.
Fiscal Year 2024 (FY24) marked a vital period for the Idaho Beef Council (IBC), showcasing growth in promoting Idaho’s beef industry. As the marketing and educational organization funded by Idaho beef producers, the IBC has remained dedicated to expanding consumer trust, enhancing knowledge about beef production, and supporting industry-wide growth. The fiscal year, spanning July 2023 to June 2024, revealed several successes that continue to shape the future of Idaho’s beef sector.
Equally important is our partnership with the U.S. Meat Export Federation (USMEF), which continues to open new international markets for Idaho beef. USMEF’s programs have allowed us to grow demand for Idaho beef worldwide, capitalizing on the increasing global appetite for high-quality American beef. By collaborating with USMEF, we are positioning Idaho producers to thrive in both established and emerging markets, ensuring that Idaho’s beef products remain competitive on the world stage.
Finally, the industry partnerships we have strengthened have been instrumental in driving innovation and sustainability in beef production. From research at the University of Idaho to retail programs and education initiatives to joint marketing campaigns, these collaborations are fostering a stronger beef industry in Idaho.
PROMOTING BEEF QUALITY ASSURANCE THROUGH PRODUCER EDUCATION
A cornerstone of FY24 was the enhancement of the Beef Quality Assurance (BQA) program, aimed at reinforcing responsible management practices among cattle handlers. The importance of these initiatives continues to be a high priority; according to insights from the 2022 National Beef Quality Audit, losses averaging $83.30 per carcass stemmed from preventable defects like bruising and foreign objects. The Audit revealed the value of continuous education for producers, transporters, and packers to boost cattle handling standards and improve product value.
During the year, 823 individuals completed BQA and BQA-Transportation (BQAT) certifications, with in-person sessions (379 completions) in addition to online completions (232). The need to increase online course participation to broaden reach will continue to be a vital component to BQA
certifications. Discussions with feedyard facilities highlighted a gap in resources for Spanish-speaking cattle handlers. The IBC responded by developing bilingual training materials, recruiting bilingual trainers, and expanding outreach to better support this crucial segment of the workforce.
STRENGTHENING CONSUMER TRUST THROUGH STORYTELLING AND ENGAGEMENT
Connecting with consumers was an essential focus, driven by strategic campaigns like the “Ranching Road Trip.” This engaging social media initiative, led by influencer Katie Williams, better known as ‘The Traveling Spud,’ provided a behind-thescenes look at beef ranching across Idaho. Stops from Lemhi County to Parma offered captivating stories and educational content, amassing over 69 hours of video watch time. The positive feedback from Williams’ followers illustrated a growing appreciation for the dedication of Idaho’s ranching families.
IBC leveraged its digital assets to encourage consumer engagement. Through 136 Facebook posts and 120 Instagram updates, IBC reached over 2.5 million consumers. These posts featured everything from rancher stories to recipes, building an online community that resonates with both seasoned beef enthusiasts and newer Idaho residents. Website traffic on IDBeef. org also surged by 53%, drawing 18,792 visitors and showcasing high-interest pages like “The Story of Idaho Finger Steaks” and “Raising Beef: Meet Idaho’s Ranching Families.”
BOOSTING IDAHO BEEF’S REPUTATION THROUGH STRATEGIC PARTNERSHIPS
IBC’s partnerships, including its collaboration with the U.S. Meat Export Federation (USMEF), were valuable in boosting beef markets regionally and internationally. By participating in national and Western States advertising campaigns and supporting programs that showcase U.S. beef in leading markets like Japan and South Korea, Idaho beef producers are well-positioned to capitalize on increasing global demand. A series of
Costco roadshows in Japan, for example, led to a 91% sales increase during promotional periods.
Domestically, IBC’s investment in a “Beef. It’s What’s For Dinner.” campaign in collaboration with a national retailer paid dividends. This initiative not only raised awareness, but also delivered $1,079,729 in attributable beef sales within Idaho—an financial impact of $107.97 per dollar invested. The campaign’s success is a testament to the strategic allocation of checkoff dollars, with a focus on driving demand and consumer loyalty.
EMPHASIZING INNOVATION AND HERITAGE
Celebrating Idaho’s unique beef offerings, the IBC highlighted Idaho Finger Steaks as a distinctive menu item with strong potential for widespread popularity. Focus group research in locations like Boulder, CO, and Atlanta, GA, revealed enthusiastic responses, positioning finger steaks as a potential addition to restaurant menus. This approach taps into consumer desire for novel, regional foods, enhancing both dining experiences and beef consumption.
As FY24 came to a close, the IBC’s forward-thinking approach and commitment to promoting quality, trust, and sustainability stood out. From training and certification programs to consumer engagement strategies, the Idaho Beef Council continues to champion initiatives that benefit producers and elevate Idaho’s beef industry on both the local and international stage. These efforts not only secure a sustainable future but also strengthen the longstanding heritage and reputation of Idaho beef.
For more details on BQA certification and the IBC’s ongoing projects, visit IdahoBeefQuality.com.
Editor’s Note: We’d like to acknowledge that the current chairman of the Idaho Beef Council is Steven Taylor. Taylor was preceded by Ira Brackett, whose term was complete in June 2024.
Lessons Learned: Virtual Fence
Wins & losses behind potentially game-changing technology for grazing management.
BY MELINDA ELLISON, PhD
Extension Range Livestock Specialist
Nancy M. Cummings Research, Extension and Education Center
University of Idaho
Virtual fence as a management tool for grazing livestock on rangelands has become a widespread topic of discussion among cattlemen and range managers, especially as an option to mitigate rangeland issues in the Intermountain west. Although the technology has the potential to be a game changer for the way grazing cattle are managed, it is still in early stages of development and has only recently begun being tested for effectiveness on broader rangelands. Under some circumstances when the future of grazing may be at risk, such as post-wildfire and/or presence of endangered wildlife or critical fish habitat on public lands grazing allotments, virtual fence has already proven to be an economically sound decision for some producers. However, as the technology continues to improve and come down in cost, it may not be a fit for everyone, at least not yet.
As researchers for the University of Idaho, our opportunity to test virtual fence on large, public lands grazing allotments began in 2023. Working with 7 different cattle herds from 5 ranches across privately-owned land, plus BLM and US Forest Service (FS) managed public lands, we have intensively tested virtual fence on extensive, steep, and rugged mountainous terrain. Our objectives have included grazing cattle one-year post wildfire by excluding moderate to heavy burn areas, containing cattle in areas with poor or no physical fence, excluding endangered fish
habitat during critical time periods, and observing cattle behavior and grazing utilization, among other sub-objectives. As we close out our second season of grazing, outlined below are some of the lessons we have learned. Collaboration is Key. Especially when using virtual fences to manage grazing cattle on public lands, developing relationships with the managing agencies is critical to successfully implement the technology. Discussions should begin as early as possible and providing a full understanding of the way that the technology works will provide land managers with more ease going forward in the process. For both cattle producers and land managers, it is important to have an intended management plan worked out prior to the grazing season, especially if excluding sensitive areas from grazing, and a plan should be in place for how unforeseen issues may be handled. Data Sharing. Many public lands management agencies have shown interest in implementing virtual fence on grazing allotments within their management areas, but none that we have spoken with have communicated interest in having access to data generated by the virtual fence technology. The primary data of concern is GPS location timestamps generated by virtual fence technologies. There has been expressed concern by public land agencies that having complete access to timestamp data would open them up to more litigation than they already deal with. While most public lands management agencies do not desire to have the data, it has been conveyed by some producers who have used virtual fence that such data would likely be beneficial to their cause if they needed to provide the data to the agencies to support them in litigation, should that need ever arise.
Expenses and Time. Virtual fence is not without cost. Aside from the up-front cost of virtual fence equipment (ie., radio towers, collars for cattle, collar batteries), which can be fairly expensive depending on the number of animals collared and the complexity of the terrain that can dictate the number of base stations needed, it also takes time to learn how to use the technology, such as where and how to draw virtual fences in complex terrain and operating the software most effectively. In addition to the learning curve required by the producer, cattle must also go through a multi-day training program to understand the cues (i.e., sound and shock) associated with virtual fence boundaries so they obey the virtual fence boundaries effectively. All of that aside, cattle locations and virtual fence boundary breaches are displayed in nearly real-time, allowing for immediate management of those animals if needed. Also, being able to visualize locations of animals just prior to or during a move has saved some producers substantial time just by knowing where to find their cattle, rather than having to search rugged terrain for several days or weeks just to find their animals.
Animal Containment. Throughout our experience with virtual fence, containment of animals has been anywhere from 75-100% containment, depending on several factors:
1. Often, the same cow was the culprit for virtual fence boundary breaches a number of times, suggesting that individual cows may respect the virtual fence boundaries more, or less. There may be a culling opportunity with this information.
2. Terrain played a critical role. Placing a virtual fence boundary in a poor place for the natural traveling ability of cattle proved to challenge the virtual fence effectiveness. For example, cattle would not stop for a virtual fence boundary across a well-traveled trail on a steep downhill grade, likely due to the difficulty to turn around and go back up the hill relative to the stimulus of the virtual fence collar. Just like the case would be with placing a physical fence barrier, virtual fence boundaries should be carefully considered to not put cattle in a position where they are either stuck or cornered. This is especially true with consideration to where the animals get water (or may be used to getting water).
3. Among the herds that were collared and exposed to virtual fence, management style seems to play a role in effectiveness. Herds that have been handled more often and more quietly, routinely managed more intensively on rangelands, and/or have experience with electric fence had better containment than other herds.
5. Co-mingling cattle that either do or do not have virtual fence collars on will decrease effectiveness of virtual boundaries. Cattle with collars may not respect virtual fence boundaries as effectively when cows that are not collared influence them.
6. Predators or other stressors may influence cattle and cause them to breach virtual fence boundaries.
7. In some instances, producers were able to more effectively control cattle movement across their allotments and keep cattle from returning to previously grazed areas of their allotments with the aid of virtual fence, resulting in improved forage utilization.
Virtual fence has the potential to be an excellent grazing management tool on large, rugged rangelands. However, given the current cost and complexities of virtual fence, it would benefit producers thinking about implementing virtual fence to consider cost vs. benefit and also discuss the finer details with an experienced user before making a decision. Feel free to reach out to my email, ellison@uidaho.edu, if you would like more information!
OCTOBER 15TH- DECEMBER 15TH OCTOBER 15TH- DECEMBER 15TH
4. Dry cows have had much greater (>95%) containment when no other factors were at play compared with cows with calves. This suggests that cows will breach a virtual fence boundary to follow her calf. However, cows often retrieved their calves and returned to the virtual fence containment area to return to a near-by herd group.
What options are best for you heading into the new year
Snow comes early in the mountains of Eastern Oregon, and it always reminds me that the year is coming to an end, which means Tax Season is coming, as well as the exhausting conversation on how to handle your year-end expense planning to attempt to pay as little in taxes as possible; while also best utilizing the cash you have on hand. Many times, the exhausting question comes down to which of two options do you pick... One, pay down your operating line or mortgage, or two, prepay expenses for the upcoming year to decrease your profit. The best option or plan for any single operation typically changes every year, but let’s talk about the positives and negatives of each option to help you decide what is best for you as you head towards 2025.
Keeping your debt load down and getting your operating loan paid off annually is definitely a high priority.
Many people have a balance on their operating loan as they reach the end of the year depending on the timing of when you sell your cattle; or have a mortgage on their land. Keeping your debt load down and getting your operating loan paid off annually is definitely a high priority. Let’s look at a potential scenario: you have a net income on your profit and loss at the beginning of December of $400,000 and you need to decide how to manage your cash on hand and how to decrease your tax liability. As we all know, a $400,000 profit does not mean you have $400,000 cash in the bank to work with. You are looking at potentially a 30% tax on that income depending on your situation. You can pay
BY CASSI JOHNSON Loan Officer, Pacific Intermountain Mortgage Company
$200,000 down on your operating line or mortgage, however, only the interest portion of the payment you make is deductible on your taxes. This doesn’t matter if you are making the minimum payment or an extra payment on your debt. Many people want to pay an extra $200,000 down on their mortgage. If you have already made your regular payment, you may have zero to little interest due in your payment, leaving it all applied to principle, which is a great thing to lower debt, but a negative in that your payment wouldn’t be deductible. Now, you will have spent $200,000 of your cash and still owe the same amount of tax on the full $400,000 profit in this transaction example, which may leave you low on cash or deeper into your operating line at the very beginning of your operating year to come up with enough cash to pay the tax.
I tend to lean away from spending money to purchase new assets at year-end only for the sake of getting out of taxes. I have had clients that chose to buy additional equipment just for the sake of lowering their net income, but then you forget that you now have extra equipment to maintain, potentially increasing your operating expenses for non-justifiable reasons. For instance, you buy an additional 4-wheeler or side-by-side that you didn’t really need, now you have to buy more tires, oil, and parts; all additional annual expenses than you didn’t have previously. It is true that sometimes you need new equipment or need to upgrade a piece of equipment, but make sure it is justifiable for the operation and the longterm increase in operating expenses that come with that purchase. Prepaying expenses for the upcoming year is changing the timing of when you use your cash to save on the taxes for the current year. For example, you have fertilizer you know you will buy in March, a feedlot bill that you know will be due in February, or hay and supplement that you will buy after January. These expenses
are planned to be incurred, if you pay them right now you will decrease your net profit for the current year to get you into a lower tax bracket without technically changing your operating budget, just your cash flow. As always, there are negatives to this approach as well. This is moving expenses out of next year and putting them into the current year, which means you are potentially increasing next year’s profit. This may put you in a place of needing to prepay expenses again next year to keep balancing your profit from year to year. Usually, prepaying some amount of expenses at year-end is part of my annual plan.
As I stated earlier, there is no option that doesn’t have both positives and negatives to it. I prefer to utilize both options if feasible and am of the mindset of paying a little tax to save a little cash compared to spending all my cash on unnecessary expenses just for the sake of not paying tax. In my perfect world, I would save some cash or pay some cash on debt principle and then pair that with prepaying some expenses. This mitigates your potential tax liability while also allowing you to pay down some debt or save some cash headed into the new year. Obviously, this is all dependent on what your net income for the year is and how much cash you have available to use. Call your accountant and they should be able to help you run multiple situations to see which option or combination of options maximizes your tax savings and cash utilization.
Cheers to 2025 and a year of changes!
TOP NOTCH
This site serves as a corral of sorts for this ‘martingale of influence’ that those within our industry can use when it comes to taking action on policy. It will provide information and quick action resources to facilitate commenting & participation on legislative policy and regulatory rulings with potential impact to the beef industry in Idaho.
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Success in Sun Valley
A look at the ICA 2024 Annual Convention
Photos by Allison Eliason
BY MONTANA MACCONNELL, WITH CONTRIBUTIONS FROM ICA CONVENTION INTERNS:
ELIZA DUGAN, COLLEGE OFSOUTHERN IDAHO
MADILYN OXNAM, COLLEGE OFSOUTHERN IDAHO
JACK DUNCAN, COLLEGE OFSOUTHERN IDAHO
COOPER RAYMOND, COLLEGE OFSOUTHERN IDAHO
DANIELLE STAHLKE, UNIVERSITY OFIDAHO
GRACE NOE, UNIVERSITY OFIDAHO
The Idaho Cattle Association (ICA) Annual Convention & Tradeshow has come and gone, and once again, it has left us feeling fulfilled, inspired, and excited as an organization! The ICA boasts a diverse membership, representing members from every aspect of the cattle industry and from across the state, but when these individuals gather in one room, it’s clear: the voice of Idaho’s beef industry has never been stronger. Nearly 500 attendees gathered in Sun Valley, ID, from November 11th to 13th for this year’s event. The convention was filled with tradition, great food, meaningful conversations, and even an exclusive film screening. Read on to discover more about this year’s convention.
MONDAY, NOVEMBER 11TH
STUDENT ICA
Idaho’s college campuses were once again well-represented at this year’s convention, with 54 students in attendance from Brigham Young University – Idaho, the College of Southern Idaho, and the University of Idaho. On Monday morning, these students were given exclusive time to connect at the tradeshow and attend a special student session featuring inspiring speakers from varying agricultural backgrounds, including Logan Peters of AgriBeef, Kelsea Donahue of Sawtooth Law, and Josh Uriarte of the Governor’s Office of Species Conservation. This year’s convention also hosted the 2nd Annual Student Quiz Bowl, where students competed in three rounds of beef industry questions, with the College of Southern Idaho taking the win for the second year in a row!! The student presence demonstrates the next generation’s passion and readiness to carry forward the Idaho beef legacy, and ICA is proud of the active student involvement throughout the state.
KEYNOTE SESSION: THE FARM BABE
The Keynote Session began with a patriotic start, honoring veterans for Veterans Day with the Pledge of Allegiance. The featured speaker was Michelle Miller, better known as the Farm Babe, a powerful keynote speaker with a remarkable journey from farm life to the fashion industry, then back to her roots. After studying fashion in Los Angeles and working for Gucci, she later moved back to farming in northeast Iowa, where she
raised corn, cattle, sheep, and more. This allowed her the leverage to start advocating for agriculture with a social media platform called “Farm Babe,” where she defends agriculture against misconceptions. A turning point for her influence came when Burger King released an anti-cow commercial in 2020, garnering around 9 million views. Determined to share the truth, Miller invited Burger King to her farm. The visit opened their eyes to the realities of sustainable farming. Miller’s efforts were effective, and Burger King replaced the original ad with one that supported agriculture, even showing video segments from their visit to Miller’s home. This is just one example of how sharing agriculture’s story can benefit the industry. Miller urged that it is simple, but powerful to use your voice and position in agriculture to educate consumers. To close, she shared tips for promoting agriculture: have empathy for others, be yourself, network and collaborate on social media, share frequently on social media, and use tags like @ and # to amplify your reach. Her story encouraged attendees to engage the public authentically, fostering positive connections between ranchers and consumers.
CATTLEMEN’S COLLEGE
The CattlActive sponsored Cattlemen’s College featured James Davison, an expert on ruminant health and nutrition. He shared valuable tips to help your cattle consistently breed back, milk, and produce high quality, healthy calves. Health can play a huge role in reducing illness, limiting death loss, and helping ensure that you are getting the full genetic potential of your stock.
KEYNOTE SPEAKER MICHELLE MILLER, THE FARM BABE, SHARES HER UNIQUE STORY OF AG ADVOCACY, AS WELL AS TIPS FOR SHARING YOUR OWN VOICE.
Do we give the cattle the tools they need to perform?
According to Davison, the answer lies in ever-changing research and science. Rumen health products can give cattle all the tools they need to reach their genetic potential. As a cow-calf producer, it is important that the mother cow has the health and nutrition level to produce a live and healthy calf and provide it with colostrum. A calf that does not receive enough high-quality colostrum when it is born will always be behind.
Davison also reminded that a good management plan is very important. If something didn’t work well the year before, change it! Davison’s advice is to investigate new rumen health and supplementation products that could benefit your herd. “Never speculate when you can calculate,”
arte’s primary mission is to secure funding and support for issues impacting the agricultural industry. The assembly then moved on to the review and passage of important resolutions, as well as an exciting announcement: the successful renewal of the Heifer of the Year competition. With all scheduled business completed, the meeting adjourned on a note of optimism and commitment to the industry’s future.
FEEDER COUNCIL SESSION
In this meeting, members of the feeder council received essential updates, covering topics from cattle implants to transportation regulations. Gene Klaft of Merck Animal Health opened the session with a deep dive into cattle production phases, from suckling to fattening, and the range
he said. Management and nutrition working together is what makes a good producer. Being proactive instead of reactive is something we all need to think about in terms of cattle health.
COW-CALF/PUREBRED COUNCIL SESSION
Josh Uriarte from the Governor’s Office of Species Conservation kicked off this council meeting. Uriarte provided insight into his role, highlighting key areas of focus, such as working with the governor on livestock compensation with wolves and grizzly bears, collaborating with the Sage Grouse Action Team, and advocating for agricultural communities. He emphasized the importance of policy by stating, “the policy written in Boise or D.C. affects you all.” Uri-
of implants available for each stage. He reviewed FDA definitions and noted that implant and reimplant programs have seen few changes in recent years, providing stability for producers. Valene Cauhorn followed with an important discussion on the CAFO Improvement Fund, urging cattle producers to apply for available grants. She stressed that bringing financial support back into the beef sector is critical for sustaining producers, especially considering evolving industry demands. Will Keyser then discussed feed additives, focusing on products like MGA in Rumensin, Tylan, and Experior for heifers. He recommended a voluntary four-day withdrawal period before marketing. To close the session, attendees were briefed on recent transportation amendments, with four new amendments passed to enhance livestock transport safety and efficiency. The session
STUDENTS FROM THREE IDAHO COLLEGES COMPETE IN THE SECOND ANNUAL STUDENT QUIZ BOWL.
provided practical, up-to-date information to help producers navigate regulatory, financial, and operational challenges, making it an invaluable resource for those looking to optimize their feeder operations.
FILM SCREENING: WORLD WITHOUT COWS
Would this world be better off without cows? The answer is not a simple yes or no. One of the hottest topics in the world right now is global warming, with many people blaming agriculture, especially cows, for the recent uptick in greenhouse gases. The movie, produced by World of Plenty, takes us to Kenya, India, England, Brazil, North Dakota, and Florida. One thing that all these
STROLLING SUPPER & PAC AUCTION
Monday night featured the Strolling Supper, an opportunity to enjoy good food while getting to know the tradeshow vendors. This year marked the much-awaited return of the Heifer of the Year contest, a competition for high schoolers to win their very own herd starting heifer by completing a quiz and several essay questions. The lighthearted evening was highlighted with the announcement of the winner, Troy Edwards of Kuna, Idaho. Troy’s new heifer was generously donated by Lanting Enterprises, LLC.
The PAC Auction also took place on Monday evening, providing a stroke of excitement as bidding commenced. Not only does the auction contribute to the fun of convention, but it also raises money to help benefit Idaho’s
places have in common is that the people rely on cattle for their livelihood and survival.
As anyone can assume, the world would look very different without cows, but whether it is better without them is not black and white. The movie explains several viewpoints of the climate issue and how carbon emissions can be lowered throughout the world. One of the most effective ways to fix carbon is by grazing cattle on land that is not suitable for high production farming or development. This makes up about 70% of agricultural land. The main takeaway from this movie is that cows are not the biggest problem and, in fact, may be part of the solution to slowing climate change. If you would like to read more about this movie or watch the trailer, go to www.worldwithoutcows.com.
cattle industry. This year’s auction brought over $19,000 for this cause!
TUESDAY, NOVEMBER 12TH
NCBA UPDATE BREAKFAST
National Cattlemen’s Beef Association Vice President of Government Affairs, Ethan Lane, spoke on current events and issues at the national level. He started off this update by talking about the recent presidential election. Though it provides a lot of positive change for cattle producers, Lane did caution that there will still be battles to fight for our industry in the next four years. For instance, Lane touched on some people who helped influence President Donald Trump’s victory, including Robert F. Kennedy Jr., whose motto is “Make
THIS YEAR’S CONVENTION FEATURED AN EXCLUSIVE VIEWING OF THE DOCUMENTARY FILM WORLD WITHOUT COWS.
America Healthy Again.” RFK resonates with Americans worried about their food. Lane explained that this may cause some issues within the agriculture and food production community. He hopes that in terms of national policy, “if it’s an animal health issue, leave it to the animal health professional.” Lane urged that producers must
stay up to date on technology available to keep up with feeding a growing population. Producers need to stay true to their ideals and policy books in an environment that tends to sway based on the current political mood. Teaching about the production of beef is the best possible way to demonstrate why beef production is beneficial. During the Biden administration, money was going into research for lab-grown meat but in Trump’s administration, money will shift away from that research.
VIRTUAL FENCE/MOOSE FIRE
Virtual fencing is a new and exciting technology that is being used in the management of cattle grazing. Dr. Melinda Ellison, along with Jay and Chyenne Smith from J Lazy S Ranch, shared information about the applications of virtual fencing in Idaho. Jay and Chyenne dove into their personal experience using virtual fencing on their ranch. They partnered with the University of Idaho on this project after the devastating Moose Fire of 2022 that burned 130,000 acres near Salmon, ID. The fire had left a mosaic burn through their grazing allotment, complicating the management of their cattle. The university helped them connect with virtual fencing as a resource and supported them through the application for grants to fund the project. Virtual fencing consists of three basics: solar powered base stations, GPS livestock collars, and boundaries set on land. The software used was Vence. There is currently one major limitation: these fences will not work in areas without cell reception. Cattle wear GPS collars, which emit a noise and shocks them if they cross
MELINDA ELLISON AND JAY AND CHYENNE SMITH PRESENT IN A BREAKOUT SESSION ON VIRTUAL FENCING TECHNOLOGY.
THE CATTLEWOMEN’S RAFFLE SADDLE GETS A MANDATORY TEST RIDE BEFORE THE RAFFLE.
a boundary but won’t shock them when reentering. Chyenne Smith shared that many factors had to be considered when deciding if virtual fencing was the best option for their Angus operation. Dr. Melinda Ellison shared the reach of this project. For instance, the Bureau of Land Management sent some employees to Washington, D.C. to share the success of the project with upper-level agency management. This session helped inform those in the cattle industry of future technologies that may be beneficial for their own operations.
MARKETS & RISK PROTECTION TOOLS
The speakers for this breakout session were Doug Robison and Derek Gerratt from AgWest Farm Credit. Doug Robison is the Idaho President for AgWest Farm Credit. His presentation was on current market correlations and rankings. According to Robison, interest rates and oil are some of the highest drivers of ag commodity prices, with little to moderate influence from overseas. Ukraine has a moderate impact on commodity prices, as Robison shared that grain exports have not really decreased since Russia invaded Ukraine. China is the largest consumer in the world, and as such, their impact is high. U.S. consumers are in a position of high equity at this moment in time, and this makes their commodity impact high as well.
On the topic of oil, the U.S. is producing more oil than it ever has, at a current rate of 13.5 million barrels per day. These increases are driven by shale oil and more productive wells with the use of new technology. Oil and
ag commodities have a strong positive correlation, while interest rates have a strong negative correlation. An example that Robison gave was that as interest rates drop, calf prices will rise.
Derek Garrett then took over to discuss PRF and LRF insurance from AgWest Farm Credit. PRF insurance is
CONVENTION WAS PACKED WITH OPPORTUNITIES FOR GROWTH, ENGAGEMENT, AND EDUCATION.
CONVENTION WOULDN’T BE POSSIBLE WITHOUT THE ENGAGEMENT AND CONTINUED DEDICATION OF ICA MEMBERS FROM
pasture, rangeland, and forage insurance. PRF pays based on a lack of rainfall and is subsidized 51% by the government at the 90% coverage level. LRP, or livestock risk protection, is 35% subsidized by the government, and protects against a decline in livestock prices. LRP plans can go all the way up to 100% coverage, which is rare. Just like the PRF insurance, it sets a floor price that you would receive after paying the premium but keeps the top side open. It can be used on both feeder cattle and fed cattle, and there is no deductible.
BEEF COUNCIL LUNCHEON
The attendees were treated to a delicious beef lunch, along with an informative discussion led by the Idaho Beef Council. One big issue that the speaker, Shelley Bradway, talked about was the importance of getting true facts about cattle out to the public through different social media platforms. A crucial aspect of the Idaho Beef Council is the Beef Quality Assurance program. Being BQA certified adds greater value to a producer’s herd. Another topic that was discussed was consumer decisions. When the consumer purchases a cut of meat, most of them do not know how to prepare or cook that cut of meat. This causes some people to be intimidated by purchasing a cut of beef, because they do not know how to make it presentable on their dinner table. This is where education through social media plays a huge role in sparking ideas for the consumer on different recipes and ways that they can better prepare beef.
IDAHO PUBLIC LANDS
This session provided for a broad range of discussion on topics impacting agriculture and public land management. Key legislative priorities were highlighted, including the necessity of passing the Farm Bill, which is crucial for sustaining funding for vital agricultural programs. Another priority is preventing the expiration of tax reforms, specifically the 2017 tax cuts and the inheritance tax, set to end in 2025. Failure to maintain these could jeopardize family farms. Additionally, policies that manage endangered species, erosion control, and other environmental issues were discussed as essential for continued agricultural support. Kaitlynn Glover, Executive Director of the Public Lands Council, underscored the ongoing challenges in Washington, emphasizing the disconnect between policy and its real-life effects on farmers and ranchers. She acknowledged the vital role of programs aimed at protecting resources, such as wild grasslands, and reiterated that grazing protections in the Farm Bill are a key
TROY EDWARDS SHAKES HANDS WITH CHASE LANTING OF LANTING ENTERPRISES, DONOR OF THIS YEAR’S HEIFER.
TUESDAY’S LUNCHEON PROVIDES A SPACE FOR UPDATES FROM THE IDAHO BEEF COUNCIL.
focus. Glover called for concerted efforts to pass effective legislation and make improvements in USDA spending.
Mike Courtney, BLM Twin Falls District Manager, provided insights on the surge in renewable energy projects resulting from the Bipartisan Energy Act of 2020, which mandates 25,000 megawatts of renewable energy from public lands. He detailed ongoing developments, including wind, solar, battery storage, and transmission interconnection projects. Courtney expressed optimism about these projects but noted that significant progress depends on advancements in transmission infrastructure.
Bill Myers addressed the ongoing challenges with water rights, referring to the United States v. Idaho case, which upheld Idaho’s principle of “use it or lose it” for water rights. The federal ruling supported state law but left unresolved issues that require further action in federal and appellate courts. The case highlighted the need for continued protection of stock water rights and vigilance in state and federal processes.
The meeting concluded with recognition of Mike Courtney as recipient of the “Friend of Industry” award for his impactful work. The overarching message of the session was clear: protecting Idaho’s public lands, resources, and agricultural industry is an ongoing endeavor that requires active participation, advocacy, and legislative focus.
SECURE BEEF SUPPLY
Meranda Small and Dr. Sergio Arispe led the session on the topic of the secure beef supply. They discussed precautions that farmers should take when encountering different livestock diseases, specifically Foot and Mouth Disease (FMD). FMD is a disease that causes blisters in the hooves of cloven-hoofed animals. While it is the most contagious livestock disease, it isn’t a public or food safety concern. However, some risks that can be considered and planned for are market risk, production risk,
and financial risk. The Secure Beef Supply Plan components include movement permits, enhanced biosecurity, disease monitoring, and continuity of business. One major component that this session touched on was a national movement standstill, which is a temporary situation where livestock must stay in designated Control Areas. The Secure Beef Supply Plan provides
39.08 +-ACRES 1500 CAFO Feedlot, 2400+-SF building Paul: $1,290,000
TOM BASABE OF THE J.R. SIMPLOT CO. RECEIVES THE BEEF INDUSTRY LEADER AWARD, PRESENTED BY SHAWNA GILL.
guidance for obtaining specific permits, and overall, how to go about the risks created by FMD. It is important to remember that livestock are never not going to have zero risk of disease exposure, and a smart farmer plans ahead to protect economic losses.
IDAHO BRAND BOARD
The Brand Board, represented by Jay Smith, Cody Burlile, Ted Vander Schaaf, and Aron Bennett, detailed its role and current initiatives. The Board oversees the State Brand Department, which operates as a state agency funded solely through its own revenue. With rising costs, the brand department recently implemented a $0.06 fee increase to sustain operations, which took place as of July 1st and maxed out the current cap of $1.25 per head. Upon recommendation from the Brand Board and brand fee working group stakeholders, Executive legislation will be pursued during the 2025 session to make statutory cap adjustments, and proposed fee adjustments would help maintain financial stability. Legislative changes are necessary to revise funding structures, and the interest accrued on accounts. A potential digital inspection program, though minimal in cost and operable without cell service, requires ongoing investment. The board is also launching an equipment replacement initiative. Other states face similar challenges in their brand inspection programs, but structural differences highlight the unique approach needed for Idaho. Brand Board representatives requested for continued stake-
holder and producer support to advance its proposals, ensuring the department remains effective and sustainable.
PRESIDENT’S RECEPTION/BANQUET
Tuesday night is arguably the most nostalgic and exciting evening of convention. It’s a time to honor those who have shown unwavering dedication to the industry, reflect on the successes of the past year, and look forward to a bright future. This year, the ICA had the honor of congratulating Michael Parella on his retirement as Dean of the College of Agricultural & Life Sciences at the University of Idaho. Dean Parella leaves behind an incredible legacy of support for both the Idaho cattle industry and Idaho agriculture as a whole, shaping the future of the field with his leadership and commitment.
The Beef Industry Leader award was presented to Tom Basabe of J.R. Simplot Co., a key figure in the formation of the Idaho Cattle Association. Basabe has consistently demonstrated his lifelong dedication to the Idaho cattle industry, contributing greatly to its growth and success over the years.
The evening continued with a lighthearted roast of the 2024 ICA President, Jerry Wroten, given by Bill Lickley. The banquet closed with a slideshow highlighting the past year’s events, and featuring Wroten in his true element— surrounded by cows. To cap off the night, the Barton & Bollar band took the stage, providing lively music that had everyone dancing and enjoying the good company.
ONE OF THE BEST PARTS OF THE SUN VALLEY RESORT IS THE INCREDIBLE MOUNTAIN VIEW.
Photos: Top, Chalky Lives; bottom, Steve Shook
WEDNESDAY, NOVEMBER 13TH
THE REALITY OF AGRICULTURAL EASEMENTS
Wednesday morning featured a panel discussion by David Anderson, Diane French, and Mark Eisele, moderated by Kim Brackett, about the importance and applications of agricultural land easements. David Anderson started the session off speaking about the relationship between agriculture and conservation, and how ag easements are the tool to beneficial conservation in an ag setting. Anderson explained that easements help “conserve the history and the past,” because they will protect the land from being converted to residential or commercial purposes. Diane French talked about how land in Idaho has been rapidly disappearing, generating need for the Regional Conservation Partnership Program (RCPP), which received over 1 million dollars to go towards protecting, conserving, and preserving land. Mark Eisele brought the cattle producer’s perspective, saying that ag easements are not meant to put any on an operation. He went on to say that when we protect our open space, we protect our air, water, and the land.
CONCLUSION
Overall, the convention was a resounding success, thanks to the incredible speakers, generous sponsors, and dedicated attendees. It provided a moment to celebrate the achievements of 2024 and look ahead to the new year with optimism. Whether or not you were able to attend this year, you are an integral part of what makes this organization thrive. No matter where you are in the state, know that your voice is stronger because of ICA. A heartfelt thank you to everyone who attended, supported the event, participated in the tradeshow, and showcased what this industry is all about. We look forward to seeing you next year!
MARK EISELE, DAVID ANDERSON, AND DIANE FRENCH PROVIDED AN INSIGHTFUL DISCUSSION
A Few Thoughts – Reshaping the U.S. Beef Industry
Is it time to restructure?
DBY JOHN NALIVKA President Sterling Marketing
id I miss something or has USDA made the decision the U.S. beef industry needs to be restructured? Perhaps, I have come to the wrong conclusion too quickly, but after USDA poured $35 million dollars into expanding packing capacity with small-to-mid sized plants with grants and loans through the Meat and Poultry Expansion Program, they announced on October 11th, a Notice of Proposed Rule Making regarding Price Discovery and Competition in Fed Cattle Markets. I may be misinterpreting the timing, but the two seem to be aiming toward an agenda of restructuring the beef industry with small-to-mid sized packers buying cattle on the spot market.
Though I am wary of the potential outcome of the two USDA actions, I am not one to say that USDA needs to go away. The Department provides needed services for U.S. agriculture and the beef industry including food safety, market news and information, research, trade, animal and plant health, nutrition programs, and farm lending. And yes, they do provide necessary regulatory oversight.
The packing industry, not unlike other sectors of U.S. agriculture is driven by economies of scale. Expanding production capacity reduces costs of production per unit of output. Feedlots, ranches, and farms all have consolidated and grown larger to gain those same economies. Beyond agriculture, econo-
mies of scale are a driving economic force in other industries as well. So, then the question arises; has this principle created a non-competitive situation in the beef packing industry as packers increase the number of plants and the capacity of those plants to build a profitable and thus, sustainable business? Some in the industry would say the answer may be yes. However, closely related to capacity is capacity utilization and closely related to capacity utilization is competition. The packing industry is driven by throughput capacity and the utilization of that capacity. Packers compete for cattle to accommodate that capacity just as feedlots compete for feeder cattle.
Addressing the fed beef industry, I calculate the current capacity to slaughter and process cattle is 30.3 million annually or 583,000 every week. Given the current supply of fed cattle as the result of significant herd liquidation during 2021 and 2022, the utilization of this capacity in 2024 has averaged 82.5% year-todate compared to 87.7% during 2022.
The USDA notice discussed valued-added cattle production and pricing. Together with economies of scale, the production and marketing of value-added beef drives today’s beef industry. Marketing cattle at the ranch with genetic merit will grow increasingly important to accommodate the demand for value-added production and together with economies of scale will increasingly drive the industry. All the while, production efficiency will continue to be a limiting factor to growing cattle numbers as in past cattle cycles. The industry has adapted structurally to changing economics. We need to be careful with any discussion that might take the industry backward.
New and renewed ICA members
Nathaniel Holmes
Cade McMurry
Stan Harder
Greg Brown
Brent Jones
Douglas Ward
Performix Animal Nutrition
Josie MacConnell
Lynn Bastian
Cole Lickley
Travis & Kassidy Telford
Thomas Kinder
David Butler
Kenworth Sales
Howard & Antonia Hedrick
Mike & Ronda Macaw
Joe & Dee Conrad
Sky Reinhardt
Bonners Ferry Vet Clinic
Frank & Cindy Bachman
Natalie Kornbau
Lee Bradshaw
Phibro Animal Health
Helen & Ron Ford
Pat Hawkins
Rebecca Falcon
Brion & Brock Egan
Rolland Jones
Wyatt & Christie Prescott
John Peters
Bill Barton, DVM
Lance Jenkins
MWI Animal Health/MICRO
Technologies
Tom Olsen, Jr.
John Tomlinson
Jay Schwieder
Esmeralda Aguilar
Jesse & Shae Human
Shae Human
Jim & Diane Meeks
Eulogio Mendoza
Dave Coates
Synovia Bates
Amie Halstead
Merrill & Sharal Beyeler
James Whittaker
Lewiston Livestock Market
Kirk & Sherry Southern
Wesley Woolery Jr.
Thomas Rountree
Kaiden Warda
Sarah & Sam Damele
Douglas Pickett
Chris Macaw
Lex Carter
Scott & Michele Rigby
James Boggan
Bruce & Ann Mulkey
Phoebe Hamilton
Dean & Brenda Heckman
Dion & Susie Heckman
Don & Pam Heckman
Hannah Moos
Rachel Cahill
Tegan Macy
Codi Cunningham
Madison Orem
Curtis & Lauren Thomas
Breanna Morford
Audrey Anderson
Christopher Gill
Matt Baxter
Jason Stevens
Tim & Laurie Munns
Annika Tee
Alan & Leslie Alexander
Nick Waldher
Kenzie Barta
Jonathan Davis
EMILEE HOLT
Territory 1 Field REp.
PO BOX 151, Huston, ID 83620 (208) 965-3130 cell eholt@hereford.org
KODY DEE WILLIAMS
Northwest Regional Manager
Cell: 509.948.6430
Office: 800.989.8247
Email: kodydeewilliams@allflexusa.com
P.O. Box 612266 • 2805 East 14th Street
Dallas/Ft. Worth Airport, Texas 75261-2266
Dennis Boehlke
9351 Lake Shore Drive Dennis: Nampa ID 83686 (208) 989-1612 2 miles west of Hwy. 45 PRIVATE TREATY SALES HEREFORD & RED ANGUS
2 Year Olds & Spring Yearling Bulls Spring Yearling Hereford & Red Baldy Heifers
Check out our offering at jbbalherefords.com
& Dawn Anderson
JBB/AL HEREFORDS 1973 S 1500 E GOODING, ID 83330 jbbalherefords@gmail.com
Bryan & Charly Anderson 208-280-1964 Jae Anderson
KNIPE LAND COMPANY
• Farm, Ranch, Recreation, Large Land Parcels, and High Net-Worth Real Estate • 1031 Tax Deferred Exchanges info@knipeland.com • 208-345-3163 • www.knipeland.com Our experienced sales team is ready to solve your real estate needs. Ready to buy or sell? Call today!
