Volume 32 Number 11 • July 11, 2020
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The Weekly News Source for Wyoming’s Ranchers, Farmers and AgriBusiness Community • www.wylr.net
A Look Inside Wyoming Livestock Board sees big changes.......... Page 2 Certified Angus Beef provides a recent market update....Page 4 Converse County Fair continues Wyoming’s second week of county fair festivities.... Page 14 Annual forage benefits discussed by Extension Educator Jeremiah Vardiman..... Page 15
Quick Bits
NAFTA traded in for USMCA On July 1 the United States-Mexico-Canada Agreement (USMCA) went into effect. American Farm Bureau Federation (AFBF) President Zippy Duvall says, “The launch of the USMCA
brings optimism to the country’s farmers and ranchers at a time they need it the most.” “On the back of a struggling farm economy and on the back of the COVID-19 pandemic, this is welcom-
ing news – improving what has been a long and successful agreement for U.S. agriculture,” says AFBF Chief Economist John Newton. Replacing the North American Free Trade Agreement (NAFTA), the
USMCA will rebalance trade between the U.S., Canada and Mexico, according to the Office of the United States Trade Representative. Trading partners “Canada and Mexico
Please see USMCA on page 5
BEEF AND CATTLE MARKETS
Tour canceled
Some sectors in the industry looking up, others still face disruption
Due to recent spikes in COVID-19 cases around the state, the Wyoming Stock Growers Association (WSGA) made the difficult decision to cancel the 2020 Environmental Stewardship Tour, scheduled for July 16 in Elk Mountain. WSGA plans to reschedule the event at a later date.
There have been many different factors affecting the beef and cattle markets recently, making it difficult to track individual sectors. Some sectors of the industry still seem to have a dark cloud looming above, while others are seeing brighter days. Cattle slaughter approached year ago levels in recent days, after weeks of severe disruption,
and wholesale beef prices retreated to more normal levels as well. However, there are still numerous disruptions caused by the COVID-19 pandemic affecting the industry. Slaughter cow prices – a bright spot Due to the market uncertainty and turmoil driven by COVID-19, the new dynamics of Please see PRICES on page 6
U.S. Drought For the contiguous 48 states, the U.S. Drought Monitor showed 25.77% of the area in moderate drought or worse, compared with 25.52% a week earlier. Drought now affects 32,522,590 people, compared with 29,095,152 a week earlier. For the 50 U.S. states and Puerto Rico, the U.S. Drought Monitor showed 21.62% of the area in moderate drought or worse, compared with 21.42% a week earlier. Drought now affects 35,439,725 people, compared with 32,013,046 a week earlier.
A bright spot – While many sectors of the beef industry continue to face COVID-19 disruptions, slaughter cow prices are one of the few bright spots for cattle producers. Andrea Zink photo
COVID-19 The U.S. surpassed the three million caseload mark on July 8 as the COVID-19 pandemic continues to rage across the country. Coronavirus cases in the U.S. rose by 59,046 to 3,055,144 cases as of July 9, according to the Johns Hopkins Coronavirus Resource Center. The death toll increased by 829 lives to 132,309 deaths.
Notice of Loss The U.S. Department of Agriculture (USDA) announced they will provide additional flexibilities for producers to file on acres with failed crops or crops that were prevented from planting because of extreme weather events. USDA’s Farm Service Agency is adding these flexibilities for Notice of Loss on both insured and uninsured crops to enable service centers to best assist producers.
Seeking assistance WWGA submits several CFAP recommendations for sheep industry In a Wyoming Wool Growers Association (WWGA) newsletter published July 6, WWGA notes the Coronavirus Food Assistance Program (CFAP) hasn’t been a big help to sheep producers impacted by the economic consequences of the COVID-19 pandemic. Therefore, the association has been hard at work pushing for additional help for the industry. “We have been working with the governor’s office and the Joint Ag Committee in the hopes of developing an agriculture-specific relief package for Wyoming’s agriculture community, including a specific provision for sheep ranchers which will be available by fall when the impact of the decline in market prices is expected to be felt by Wyoming agriculture producers,” says WWGA. Establishing a working group As part of their initiative, the association has established a working group to develop recommendations on how to provide assistance to Wyoming sheep producers. WWGA explains, “The working group developed recPlease see WWGA on page 14
Direct Act introduced U.S. Reps. Dusty Johnson (R-SD) and Henry Cuellar (D-TX) introduced the Direct Interstate Retail Exemption for Certain Transactions (DIRECT) Act during the first week of July. The legislation will allow state inspected meat to be sold across state lines through e-commerce, allowing small producers and processors more options to directly market to consumers. “As a result of COVID-19, meat processing plants across the country have been forced to close or slow operations, and as a result we’ve seen a renaissance in small processors,” said Johnson. “Many states have inspection standards that are at least equal to what the federal government requires. This bill cuts through red tape and allows producers, processors and retailers to sell stateinspected meat and poultry direct to consumers through online stores across state lines.” “America’s meat industry has been hit hard by financial challenges resulting from the coronavirus pandemic,” added Cuellar. “The bipartisan legislation will open up new markets for meat producers and processors by allowing meat inspected by the state to be sold online and across state lines. As a senior member of the Agriculture Subcommittee on Appropriations, I will continue to fight for the men and women who work every day to keep food on our table during these unprecedented times. I want to thank Congressman Dusty Johnson for his commitment to supporting our meat industry.” The DIRECT Act will amend the retail exemption under the Federal Meat Inspection Act and Poultry ProdPlease see DIRECT on page 4
Top considerations for direct marketing beef Anticipated food shortages across the country as well as consumers’ increasing desire to know where their food comes from has sparked marketing beef directly off the ranch to consumers to rise in popularity. As more producers look to direct marketing of their beef, experts at Kansas State University discuss considerations for ranchers to keep in mind during a Cattle Chat podcast presented by the Beef Cattle Institute. Kansas State Veterinarians Bob Larson and Brad White, Agricultural Economist Dustin Pendell and Kansas State Beef Cattle Extension Specialist
Bob Weaber share their ideas on how to successfully market from the ranch. Develop a plan The experts all agree developing a business plan is critical to the sustainability of direct marketing. Understanding price structure and determining if producers want to sell their beef in individual cuts or by the carcass are important decisions to be made with caution. “If I sell a half of beef to someone, they will pay the processing charges, and they get all the yield,” shares Weaber. “But, if I am selling meat by the
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Please see BEEF on page 7