July & August 2014 ANR Newsletter

Cooperative Extension Service Nelson County 317 S. Third Street Bardstown, KY 40004 (502) 348-9204 Fax: (502) 348-9270 http://nelson.ca.uky.edu

RON’S RUMBLES This year is slipping by pretty quickly. Most everything is planted except for a few late beans. At this point everything looks pretty good. I wish we had a little more moisture in the ground. Most of the county is OK but we don’t have an overabundance of moisture. The next three weeks will be the most critical time for corn. From talking with folks the first cutting of hay was 30 to 40% short of normal. A lot of folks have a pretty good second cutting ready that should make up for the first. Tobacco looks good but is behind what it should be for this time of year. I guess what I’m saying is the next month will really decide how good or bad crops will be this year.

Livestock and milk prices continue to hold. $1,000 for a 400 pound calf is almost beyond imagination.

Everyone keeps wondering how long this type market will last. I think it will hold for a while. Cow (Continued on page 2)

Upcoming Events July 14-19 Nelson County Fair July 15-Pig Show 6:00 July 16-Youth Beef Show 10:00 July 16-Open Beef Show 4:00 July 17-Youth Lamb Show 6:00 July 17 KFGC Field Day, Breckinridge County July 19-Ag Day at the Fair July 31 Corn, Sorybean & Tobacco Field Day @ Princeton Aug 14-24 Kentucky State Fair Sept 25 Beef Bash, U.K. Research & Education Center, Princeton

Ron Bowman County Extension Agent for Agriculture/Natural Resources

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numbers are down to 1960 levels and it takes a pretty good while to build those numbers back significantly. The economy is rebounding and population numbers are rising so demand should remain stable or increase. But, there is a price ceiling somewhere.

During the next couple of months when it is extremely hot be careful of heat exhaustion and overheating.

As always if I can be of help give me a call at 348-9204.

Trace Minerals for Beef Cattle Cattle getting mineral using the free choice method.

Grazing livestock require many different nutrients to support growth, milk production, and body tissue maintenance. Often minerals are separated into two categories. The minerals that are required in relatively large amounts are called major or macro minerals. These minerals are often listed on feed tags with a percentage sign following them. Those needed in lesser amounts are called micro, minor, or trace minerals and usually listed in parts per million (ppm).

These terms have no relationship to the metabolic importance of the specific mineral in the diet. A trace mineral can be just as important to health and performance of an animal as a macro mineral. Factors that influence the amount of specific minerals that cattle need include age, rate of growth, stage of pregnancy, and stage and level of lactation.

The essential macro minerals for beef cattle are calcium, phosphorus, chlorine, magnesium, potassium, sodium, and sulfur. The trace minerals that are needed are copper, chromium, cobalt, iodine, iron, manganese, nickel, molybdenum, selenium, and zinc. The above minerals may function as structural components of bones and teeth, electrolytes in body fluids, metabolism of nutrients, nerve conduction, reproduction, immune response, and many more functions.

Various body functions require different amounts of minerals. The daily intake of trace minerals needed for maximum immune response is greater than the amount required for optimal growth or reproduction. Cattle can have sufficient trace mineral intake to support optimal 2

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growth or reproduction. However, cattle may not consume adequate trace minerals for maximum immune function. Intake and absorption of minerals must be adequate to meet all the animal's body functions.

Although many factors affect the intake and absorption of minerals by cattle, a major factor is the mineral content of the forages they consume. The first step in developing a mineral supplementation program is to determine the feed or forage mineral content. It is important to understand that the bioavailability of minerals from forages may be low. As a general rule when figuring mineral values in forages, the suggested usefulness should be divided in half to account for potentially low bioavailability. For example if a forage has a concentration of 0.2% of X mineral, the amount of mineral absorbed would be 0.1%. Mineral supplements are calculated making adjustments for the bioavailability of the sources.

There are many different types of mineral feeders available on the market, and a lot of producers construct their own out of wood.

Producers should always read the mineral product label. Key things to note: target species (beef cattle, dairy cattle, etc.), mineral levels (percentage or ppm), target intake (ounces per day), feeding method (free-choice or mixing), and the ingredients or source of the minerals. Because a min-eral’s source greatly influences absorption or bioavaila-bility, mineral supplements must contain sources of high bioavailability. The levels listed on the feed tag as well as the targeted intake must then be considered. There can be various mineral mix-tures with both different min-eral levels and intakes. The supplement should provide adequate intake of the vari-ous minerals to balance the supply from the forage and the animal’s needs while also being cost effective.

For further information about minerals and their functions see: Trace Mineral Supple-mentation for Kentucky Beef Cattle publication available at your local extension office or online athttp:// www2.ca.uky.edu/agc/pubs/asc/asc155/asc155.pdf.

Importance of Water Water is the most important nutrient for animals, and it is essential to ensure that animals have ample access to clean water. Having Continued on page 4)

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water available to livestock allows for optimal animal performance and health. Dry matter intake is directly related to water intake, and the less an animal drinks, the less feed it will consume. This leads to reduced weight gains, milk production, and animal performance.

Water accounts for 50 to 80 percent of an animal's weight and is involved in every physiological process.

It is vital that there is enough water available for the entire herd during hot weather because water requirements double when temperatures increase from 50° to 95° F. Water quality affects water intake, herd health and performance. Waterers should be cleaned frequently to ensure the water does not become contaminated.

During a drought, water quality declines as the concentration of pollutants increases when water evaporates and becomes stagnant. Using city or county water Temperature Amount of water needwill decrease the likelihood of this happening, but is not always ed by animal. a practical option. Try to avoid 50°F 90°F contamination of water by microWater Requirement organisms, suspended solids, (gal/head/day) and other pollutants. Preventing animals from urinating and defe- Beef Cattle 400-lb cating in the water source will 4-7 8 - 15 calves help reduce disease transmis800-lb sion. Water analysis should be 8 15 - 18 calves taken if you suspect water is 1000-lb 9 - 10 18 - 20 causing a problem or when a calves new source of water is develcows and 9 - 14 18 - 27 oped. Quality shouldn’t vary bulls much for springs and wells, but Dairy Cattle ponds and streams will normally dry cow 6 8.7 be lowest in quality during late 40-lb milk 16 26.5 summer.

80-lb milk

Sulfate is present in many water sources in Kentucky and is commonly found in the form of calcium, iron, sodium, and magnesium salts. High levels of these

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44.9

Source MWPS-6 Beef Housing and Equipment Handbook. UK Cooperative Extension Service Publication Pasture for Dairy Cattle: Challenges and Opportunities (ASC151) (Continued on page 5)

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salts can make the water taste unpleasant to animals. Sulfates in high concentrations can cause diarrhea and lead to death in some instances. Nitrates in drinking water are rapidly becoming the most predominant water problem for livestock in the southeastern United States. Nitrate is converted into nitrite once digested, and is dangerous to cattle. Excessive nitrate intake may result in a lethargic animal and sudden death. Animals can adapt to higher levels of nitrates if levels are raised gradually, but prolonged exposure either from feed or water may result in lower feed intake, depressed growth rate and abortions. Stagnant waters may contain excessive levels of bluegreen algae, which are toxic and may result in death of animals as well.

It is suggested that water be placed within 800 feet of all areas of the pastures. Having water in ideal locations encourages more uniform grazing, and manure distribution. Normally, only a few animals will drink at a given time if the water is placed within 800 feet of the herd. Drinking will become a “social event� when livestock must walk further distances to water because they will travel as a herd. This behavior causes lounging at the water source, manure buildup, and increased soil compaction.

Placing water within 800 feet will reduce travel time to the water source, as well as time standing around water, increasing time spent grazing.

The amount of water an animal needs each day depends upon the animal's size, stage of

Amount of water needed by an animal.

Water Requirement (gal/head/day)

Horses Mature

8 - 12

Brood Mare

8 - 12

Foal to 2-year

6-8

Stallion

8 - 12

Pony

6-8

Mature

1-3

Goats

Lactating

2.5

Sheep Rams 5 - 20lb Lambs Ewes with Lambs Feeder Lambs

2 .1 - .3 3 1.5

Source UK Cooperative Extension Service Publication Housing for Pleasure Horses (ID57). Meat Goat Nutrition, Langston University. MWPS-3 Sheep housing and Equipment Handbook (Continued on page 6)

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production, and the average daily temperature. Different species of animals require different amounts of water. Below are two tables that give a few examples of animal requirements. Be sure to keep an adequate amount of clean water available for your animals in order for them to perform well.

Farm Financial Management - Keeping the Pencil Sharp ~ Jonathan Shepherd A significant trait found in top performing farm managers is having a focused approach towards efficiency and a sharp pencil. Two things top managers focus on are working capital and cash-flow.

The current agricultural production climate warrants all producers to take an even closer look at costs and returns. So far, 2014 has shown some signs of concern for grain producers with commodities trading at or below the cost of production; while livestock and dairy producers, especially cow/calf operations, may see an opportunity to improve farm equity. Regardless of what enterprise mix constitutes your farming operation, prudent farm financial management is the cornerstone of ensuring that your operation can weather a storm or efficiently allocate net worth to be productive in future years. This article will look at the importance of having adequate working capital as well as ways to address cash-flow issues.

Working capital is the difference between current assets and current liabilities, and is generated from net farm income (NFI). Current assets include cash and marketable grain/livestock inventories that will be sold within a year. Current liabilities are those that are due within one year such as operating notes, yearly principal, and accrued interest payments on term debt, etc. Increasing working capital is important so that your operation can better withstand short-run profit shortfalls, while taking advantage of opportunities as they arise.

NFI is the difference between total income and total expense, including gain or loss on capital asset sales. The difference can be thought of as the amount returned to owner equity, management, and unpaid labor. There are only four places that NFI can go: 1.) family living or partner withdrawals, 2.) income and social security tax payments, 3.) increases in assets, and 4.) decreases in liabilities through principal payments; all of which affect net worth.

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Number three above is where positive NFI can be used to increase working capital by retaining returns in liquid assets. Positive NFI can also be applied to number four above and still increase working capital by reducing liabilities.

With shrinking margins in grain commodities, many producers will have a lower NFI for 2014 relative to the most recent years. Concern arises when debt servicing and family living expenses are based on years of relatively high, and in some cases, recordbreaking incomes. There is a good chance that balance sheets completed at the end of 2014 will not show as high of an increase in cost-basis net worth as years passed. This is where managers must sharpen their pencils and take time to analyze their operations in detail. For producers who find that they are having cash-flow issues because their working capital is not sufficient, consider the items below: Debt Structure-Do you need to restructure your debt load? If you have too much current debt, it may be advisable to restructure it and shift more to term debt. This will help alleviate some cash-flow concerns.

Asset Management-Are you maximizing your assets? Think about the “big ticket items” such as tractors and combines. Are these fixed costs being spread over as many acres as possible? Or, were you hoping to “grow in to them?” If the asset is not being maximized, it may be time to sell and replace it with a more appropriately sized asset. This decision needs to be analyzed carefully. Take into consideration gains/losses and the potential for accelerated depreciation recapture before making this decision. Livestock operations need to look at underperforming assets as well. It may be time to replace or cull underperforming assets.

Asset Acquisitions- Is now the best time to be purchasing new machinery and buildings? Remember, those payments are due each year, regardless of your NFI. Do not let your eyes become bigger than your balance sheet. Keep the ego and emotions in check when making these decisions.

Cost reduction-Are your operating costs as low as possible? Is it possible to make repairs as opposed to purchasing new equipment?

Review other costs, especially overheard costs and determine if re7

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reductions can be made.

Downsizing-With shrinking margins, is it time to give up marginal land? Remember, each farm needs to be analyzed and cash rent needs to be looked at on the margins. In other words, the revenue generated off each farm needs to be compared to cost associated with generating that revenue. Calculating average cash rent for your operation can be very misleading when deciding whether to renew a lease or not. Be sure to complete an enterprise budget specific to each farm.

Cash rents-Is it possible to renegotiate cash rents for 2015, or find less-costly rental agreements?

Family living-Family living expenses are arguably as “sticky� as cash rents. These expenses should be analyzed as closely as farm expenses and be adjusted to correspond with NFI. Have a cushion- Having several months of living expenses on hand as well as other liquid assets for the farming operation is not a bad thing. While there is not much return to be earned on these assets currently, self-insuring in this manner will help to safeguard your family and your farming operation against an unexpected event (major repair, illness, etc.)

For those producers who may have been dealing with cash-flow issues in the past, but are posed to increase profitability in the coming years, be cautious not to forget the lessons learned. Do not let the pencil get dull. While returns may be up for livestock and dairy producers, be judicious in making decisions concerning expanding herds. Be sure to carefully plan and budget any new capital assets to ensure that you will be able to pay for them if the cycle turns down. A great place to start with these decisions is your own, detailed, and timely kept records. If you need help analyzing these decisions, or find that you have cash-flow concerns, contact your local Kentucky Farm Business Management Specialist and see what the Kentucky Farm Business Management Program has to offer. www.uky.edu/Ag/KFBM.

Next cattle expansion will be complex

By Aimee Nielson

Cattle numbers in the United States are the lowest they have been 8

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in more than 50 years.

“There has always been variation in cattle inventory from year to year,” said Kenny Burdine, agricultural economist with the University of Kentucky College of Agriculture, Food and Environment.

“There was an upward trend from the 1930s to the 1970s, followed by a sharp and then more gradual reversal that has continued through today.”

So many factors play into the current situation, not the least of which is a massive, long-standing drought in the Southern Plains that has reduced conditions to a modern-day Dust Bowl. But that’s not the only thing affecting cattle numbers. Burdine said many things would determine when and if a cattle expansion occurs.

“There’s really no single factor that drives a producer to decide to expand or reduce their cow herd size,” he said. “Producers respond to a wide array of market signals, and they operate within a wide range of constraints as well. Regardless, I believe the next expansion is going to be very complex.”

Even though Kentucky has not experienced the same harsh drought conditions as the Southern Plains in the past couple years, drought was an issue in 2007, 2008 and 2012. Kentucky’s cattle inventory has decreased by about 195,000 cows since 2007 according to the U.S. Department of Agriculture. According to fellow UK agricultural economist Greg Halich, however, conversion of pasture ground to row crops is probably the main reason for the reduced numbers in Kentucky.

“Record prices and profitability in row crops has led to this conversion, and most of this ground will not come back to pasture very easily,” he said.

As corn and soybeans gained popularity for their profitability in the past several years, cattle producers opted for row crops over cow numbers. If grain prices decrease and grain profitability declines, producers may start to convert row crops back to pasture and increase their herds again.

“That

really just illustrates a basic economic principle that farmers are going to allocate their land to what is going to be most profitable for them,” Halich said. “Cattle obviously compete with other 9

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land uses. In Kentucky, we’ve historically run cattle and produced hay on ground that is also suitable for row crop production, particularly in the central part of the state.”

It’s easier to convert pasture to row crops than to convert row crops to pastureland. Halich said it’s not really that simple to “switch” back. Re-establishing forages takes time. And then there are the fences that many farmers removed to make row crop management more efficient.

“Once those fences are gone, the cost of returning the land to pasture dramatically increases,” he added. “Fencing is very expensive, and producers will only make that investment when it is justified by the market.”

Burdine explained that there are many areas that were forced to reduce numbers because of weather, and they will want to expand again once weather conditions improve. In Texas, beef cow numbers have decreased 22 percent since 2011 and much of that land is not well suited to row crop production.

It’s important to note that producers don’t just automatically expand when prices reach a certain level.

“It’s true, calf and feeder prices are at an all-time high,” Burdine said. “It’s also true that production costs have dramatically gone up as well. To really signal an expansion, prices will have to rise enough to translate into increased profits at the cow-calf level.”

When it does come about, expansion could actually happen pretty quickly in the early stages. Heifer retention gets a lot of attention in expansion talks.

“We’ve actually seen increased heifer retention over the past several years,” Burdine said. “But, this hasn’t really been enough to offset the reduction in beef cow numbers brought about by higher than normal culling.”

Expansion is a long-term process that involves cattle that are likely to remain in production for 10 years or more. A producer who purchases additional bred heifers, or one who holds back their own heifers, makes an investment that requires several years to pay back. The upfront cost is high, and producers don’t know what the conditions will be throughout the time it takes to recover the invest10

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ment. Those long-term profit expectations are what most farmers are using to guide their expansion decisions.

Burdine and Halich also asked the question, “Do farmers and ranchers really have to expand the herd?”

“It’s assumed that there are folks out there ready to expand when conditions are better,” Halich said. “But there is a growing concern that fewer and fewer of the next generation are willing to take up the challenges and opportunities of raising cattle. Fewer cattle farmers coming up through the ranks and a decrease in large tracts of land suitable for cattle will make it more difficult to expand the cattle herd in the future.”

As summer nears, livestock heat stress looms

By Aimee Nielson With summer drawing near, it’s a good time to start thinking about protecting livestock from inevitable heat stress conditions on the way.

“The combination of hot, muggy weather conditions prompts some real concern for humans, as well as livestock and pets,” said Tom Priddy, meteorologist for the University of Kentucky College of Agriculture, Food and Environment. “The livestock heat stress index is a combination of air temperature and humidity. That one-two punch makes it hazardous for people and animals. Dew point temperatures above 65 degrees lead officials to declare conditions dangerous for livestock.”

The Livestock Heat Stress Index helps producers know when heat stress could create a problem for their animals. Periods of heat stress call for livestock producers to be vigilant in making sure their animals are able to withstand the conditions.

UKAg dairy specialist Jeffrey Bewley said the most important things producers can do are to provide cool, clean water and shade, with buildings as open as possible to help keep animals’ internal body temperature within normal limits. Sprinkler systems that periodically spray a cool mist on the animals also are beneficial.

To keep cattle from becoming overheated, producers should not (Continued on page 12)

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work cattle during periods of heat stress. “To keep cattle from becoming overheated, you certainlydo not want to work them during heat stress conditions—veterinarian work, reproductive checks or vaccinations,� Bewley said.

Producers should also avoid transporting livestock during a heat danger or emergency period. If they must move animals during this time, producers should try to do so with fewer animals per load.

Planning trips so producers can load animals immediately before leaving and quickly unload upon arrival can help minimize the risk.

Heat loss for all horses becomes difficult when temperatures exceed 90 degrees, so avoid exercising them during very hot periods.

When humidity is high, temperatures much lower than 90 degrees can pose problems. Horse owners can reduce heat stress by scheduling activities during the cooler part of the day and giving horses plenty of water. Transporting horses during the cooler hours of the morning or evening can help. To reduce the risk of dehydration and heat stress, give horses access to water before, during and after transportation in hot weather.

Offer horses frequent drinks of water during work in hot weather.

Allowing them to drink during work helps maintain water balance and relieves the urge to drink a lot of water after exercise. After a hard workout, water horses out gradually.

Even non-working horses will double their water intake during hot weather, so be sure plenty of water is available to horses in pastures, paddocks and stalls.

Lactating mares will have especially high water requirements because they are using water for milk production and heat loss.

Hot weather also will increase horses' need for salt because salt is lost during sweating. Heavy rains can "melt" salt blocks in pastures, so salt licks should be checked.

Visit the UK Ag Weather Center website at http://weather.uky.edu to keep up with current weather, forecasts, heat stress indices and more

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Dairy cows can’t take the heat Source: Donna Amaral-Phillips, extension dairy specialist Heat stress is hard on livestock and especially dairy cows. Dairy cows will first start to experience heat stress when the temperaturehumidity index (THI) exceeds 68. You may notice them breathing heavily and panting in the early stages. Cows are much less heat tolerant than humans. Lessening heat stress is extremely important to any dairy business, because heat stress decreases cow comfort and health, and most importantly decreases reproductive performance and milk production.

Some research indicates that the detrimental effects of heat stress on reproduction may start at a temperature-humidity index of 55 to 60. The THI is a combination of temperature and humidity that measures the degree of discomfort cows experience.

Some key points dairy farmers should consider regarding lessening heat stress include: -Fans: Are your fans installed and maintained properly for maximum air movement and when temperatures are at or above 72 degrees Fahrenheit?

A temperature-humidity index of 68 is equivalent to a temperature of 72 degrees with 45 percent relative humidity. You should run your fan cooling systems continuously once the THI exceeds 68, especially covering the feed bunk, holding areas and resting areas. You should have enough fans to guarantee that there are no areas in the barn where air is not continuously flowing. A general rule of thumb is to space box-type fans no more than 10 times the diameter of the blades at a 20-degree angle downward towards the bottom of the next fan. For example, if the blade diameter is 3 inches, your fans should be no more than 30 inches apart. Fans spaced more than 10 times their diameter lose effective velocity and, as a result, cows will not be adequately cooled. Fan blades and housings should be cleaned at least yearly for improved performance.

-Sprinklers: Do you use a sprinkler system for your herd at the feed bunk and the holding pen?

You should have low-pressure sprinklers that wet the cows’ hair coat in areas like the holding pen and feed bunk, where the floor can (Continued on page 14)

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become wet without consequence. Your sprinklers should come on for 1 to 3 minutes every 10 to 15 minutes to coat the cow’s hair and skin. Fans run continuously to allow for evaporation of the water.

-Barn Ventilation: Does your housing facility provide adequate natural ventilation and contain properly designed ridge openings or caps in the roof?

Ridge openings and open sidewalls allow for air removal from the barn. A ridge opening should be 3 inches wide for every 10 feet of building width. Ridge caps generally are not recommended, but if you use them, they should be at a height equal to 0.75 times the ridge opening. Overshot roofs should allow 3 inches for every 10 feet of building width. These roofs are less desirable because they assume that air always blows in the same direction. In addition, the roof slope should be 4/12, 4 inches of rise for every 12 inches of run. You should orient new facilities with the long axis of the barn placed east-west to minimize sun exposure inside the building during the summer months.

-Rations and Water: Do you need to make ration and water modifications?

Cows under heat stress will eat less often and consume less dry matter. To get cows to eat more, you should feed during cooler parts of the day, such as morning and evening. Mix feed twice daily to prevent or minimize heating of the feed. During heat stress, water intake increases tremendously. Make sure that your watering containers provide enough water for your herd and are cleaned daily. Watering containers should be placed throughout the barn so all cows can reach them.

In summary, we realize that the dairy business is one that requires a lot of attention to detail. If you put effort into minimizing heat stress, it will lead to improved herd health and increased milk production. To get the pay off, you must follow these key principles and put them into practice on your farm.

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Woodland owners: Got questions? Get answers.

By Carol Lea Spence Woodland owners who are wondering how to get the most from their property should think about attending one of three Woodland Owners Short Courses being offered around the state this summer, said Billy Thomas, University of Kentucky Cooperative Extension forester.

The 2014 Woodland Owners Short Course is the result of a partnership between UK Cooperative Extension Service, UK Department of Forestry, Kentucky Division of Forestry, Kentucky Department of Fish andWildlife Resources, Kentucky State University, Kentucky Tree Farm Committee, Kentucky Woodland Owners Association, U.S. Department of Agriculture’s Natural Resources Conservation Service, Kentucky Forest Industries Association, Sustainable Forestry Initiative and the Kentucky Chapter of the Association of Consulting Foresters of America Inc. For a detailed listing of course topics at each location and to register, visit the short course website at http://www.ukforestry.org. Registration can also be done over the phone by calling 859-257-7597.

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Bardstown, KY 40004

317 South Third Street

Nelson County

University of Kentucky

Cooperative Extension Service

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