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LMD May 2025

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Riding Herd Saying things that need to be said. May 15, 2025 • www.aaalivestock.com

Volume 67 • No. 5

by LEE PITTS

Beef On Dairy D

A Taxing Time

LEE PITTS

A

NEWSPAPER PRIORITY HANDLING

lthough I’ve always hated writing sale reports, I love reading them, especially bull sale reports. Last year I noticed at a few Angus bull sales that the high selling or near high selling bulls went to Grimmius Cattle of Hanford, California, for around twenty to forty thousand dollars. I thought this was odd because I’d known about the Grimmius operation for decades because I often saw family members sitting ringside at Skinner Hardy’s Western Stockman’s Market north of Bakersfield, California, almost every week buying cattle for their feedlot. I also was aware they fed a lot of Holstein cattle. Skinner always spoke very highly of the outfit and said they had a reputation for integrity and for being really, really, smart. So I wondered what the heck a cattle feeder was doing buying Angus bulls. Then I noticed at this year’s Sitz Spring bull sale the second highest selling bull at $120,000 sold to the same Grimmius Cattle of Hanford, California. Again, why would a cattle feeder do that?

I asked a dairyman friend and he told me that since Grimmius Cattle bought so many Holsteins to feed they reasoned why not find Angus bulls that excel in carcass traits and sell semen from those bulls to their dairyman customers which would make their calves better from a carcass standpoint and would also enable Grimmius to

beef cows in this country and 9.3 million dairy cows. Besides milk, cheese, ice cream and other dairy products, dairy cows produce 20 percent of the beef consumed in this country. A long time ago I wrote about a friend of mine, Harvey Dietrich, who owned Sun Land Packing west of Phoenix. Calf News called Harvey, “A man before his time,” and he certainly was that. When Harvey looked around the cattle scene in his neck of the woods he saw Holsteins everyw h ere, at the Los Angeles milk shed and at a big cluster of feedlots near the Mexico border in California. Looking for a profitable niche and a way to distinguish Sun Land Packing Harvey devised a program to buy and feed these Holstein steers and heif-

Timing has a lot to do with the outcome of a Rain Dance. cash in on higher prices for the fat cattle they sold. Suddenly it all made perfect sense. Harvey’s Holsteins Last year it was estimated that there were about 28 million

ers and sell them to the Ralphs grocery chain. Eventually more than half of Sun Land’s daily kill went to Ralphs. The beef was guaranteed to be from Holsteins fed exclusively in California feedyards and if there’s one thing about Holsteins it is they are extremely uniform which was a big selling point. The Sun Land/Ralph’s program was the first I know of that was built around straightbred Holstein cattle. Keep in mind this was at a time when everyone was insisting that beef be lean and there were essentially no premiums for Choice and Prime cattle. No one was selling on a grid back then either that would have highly devalued Harvey’s Holsteins. Because the market rewarded leanness instead of carcass quality, beef consumption dropped precipitously and this was a dark chapter in beef’s history as cattlemen were experimenting with 35 breeds, the cattle were not uniform and so tall you could drive

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Secretary Rollins Suspends Live Animal Imports Through Ports of Entry Along Southern Border, Effective Immediately Washington, D.C., May 11, 2025 –

U.

S. Secretary of Agriculture Brooke L. Rollins today announced the suspension of live cattle, horse, and bison imports through U.S. ports of entry along the southern border due to the continued and rapid northward spread of New World Screwworm (NWS) in Mexico, effective immediately. NWS has been recently detected in remote farms with minimal cattle movement as far north as Oaxaca and Veracruz, about 700 miles away from the U.S. border. The United States and Mexico continue efforts to interdict and eradicate NWS in Mexico and work in good faith. However, despite these efforts and the economic impact on both countries due to this action, there has been unacceptable northward advancement of NWS and additional action must be taken to slow the northern progression of this deadly parasitic fly. As such, effective immediately, the USDA Animal Plant Health Inspection Service (APHIS) in conjunction with Customs and Border Protection (CBP) will restrict the importation of live animal commodities originating from, or transiting Mexico. This import suspension will persist on a month-by-month basis, until a significant window of containment is achieved. USDA will continue constant collaboration with Mexico, including a review of latest data and metrics in two weeks. Our teams have been in daily communication discussing how we can build on the good work that has been accomplished to improve our strategy toward eradication. Any livestock currently in holding for

entry into the United States will be processed normally, this includes an APHIS port Veterinary Medical Officer inspection exam and treatment to ensure they are not carrying NWS. “The United States has ordered the suspension of livestock imports through ports of entry along our southern border after the continued spread of the New World Screwworm in Mexico. Secretary Berdegué and I have worked closely on the NWS response; however, it is my duty to take all steps within my control to protect the livestock industry in the United States from this devastating pest,” said Secretary Rollins. “The protection of our animals and safety of our nation’s food supply is a national security issue of the utmost importance. Once we see increased surveillance and eradication efforts, and the positive results of those actions, we remain committed to opening the border for livestock trade. This is not about politics or punishment of Mexico, rather it is about food and animal safety.” Effective eradication, which remains our shared goal and best interest of both the U.S. and Mexico, requires a three-pronged approach: robust active field surveillance with education and outreach to ensure prevention, treatment, and early detection; controlled animal movement to limit spread; and sustained sterile insect dispersal. Suspending livestock transport through southern ports of entry will assist in the effort to limit northbound transport of NWS through livestock commerce, and will allow the U.S. to reassess whether current mitcontinued on page 3

ateline: April 15... Well, the worst is over. Our income tax is in the mail, now all I have to do is find the money to cover the check. You sure gotta hand it to the IRS (literally), somehow they always manage to get another raise, even when we make less money. Every time we send in our state and federal income taxes, along with our estimated taxes, I feel like an emaciated Holstein who just got her crankcase squeezed until she was bone dry. My wife does all the heavy lifting on our taxes, spending two months getting everything ready for the accountant. I tell my wife that I’d be glad to help but she says people with high blood pressure should NEVER do their own taxes. She’s afraid I’d have another stroke or become ‘intaxicated’ if I even got near a 1099. Plus, my wife knows I’d make all kinds of mistakes because I’d try to write off last year’s taxes as a bad investment or claim two dependents... the feds and the state. I feel I’ve already contributed enough just so the politicians can live in the lifestyle to which they’ve become accustomed, but my work is still not done because Tax Freedom Day, the day of the year when the average taxpayer has theoretically earned enough income to pay for local, state and federal taxes, is estimated to be June 12th this year. Let that sink in. If you still don’t get my point consider that the average worker pays more in income tax than food, shelter and clothing costs combined! My wife and I sat down and made a list of all the taxes Americans are forced to pay and they include: federal income tax, state income tax, capital gains tax, gift taxes, payroll taxes, value added taxes, sin taxes on cigarettes and booze, sales tax, bond issues, gas tax, estate tax, and on and on. (I’m sure you probably can think of a lot more taxes to add to our list). Rubbing it in, right about the time we have to pay our state and federal taxes and estimates we get hit with the worst tax of all - property tax. Paying it is like having to buy something we already own. The bureaucrats in Sacramento say I shouldn’t object because my state taxes go towards paying for things we

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