Larry Howard of West Point, the University of Nebraska-Lincoln Extension Educator in Cuming County, attended the 98th Annual Meeting and Professional Improvement Conference of the National Association of County Agricultural Agents (NACAA) that was held in Pittsburgh, Pennsylvania, September 13-20, 2013. The conference was held in conjunction with the Galaxy IV Conference hosted by the Joint Council of Extension Professionals (JCEP). Participants from all six Extension professional organizations were in attendance where the conference theme was “Bridging the Centuries – A New Era for Extension”.
This year, Howard has completed his fourth year on the NACAA Board of Directors. The first two as North Central Regional Vice Director and the last two years as Director. He was presented a “Retiring Director” plaque for his years of service. The board provides leadership and oversees the mission of the NACAA. Howard represented the twelve states in the North Central region and also attended their respective state meetings throughout the last two years. Nebraska is represented on the National Board once every twenty four years.
While at the conference, Howard gave several presentations during workshops, conducted the regional meeting, participated in professional improvement seminars and workshops in various agricultural program areas, committee meetings, general business sessions, poster sessions, award presentations, a commercial trade show, the voting delegate session and a one day professional improvement tour of area cattle, crop producers and agribusinesses.
Howard was accompanied by his wife Mary, who was one of several spouses who attended the conference. Mary participated in educational workshops, regional meeting, tour and evening sessions. The 99th Annual NACAA conference will be held in Mobile, AL in July, 2014.
THISTLE CONTROL DURING OCTOBER
Bruce Anderson, UNL Extension Forage Specialist
Timing is everything. That's particularly true with thistle control. And October to early November is one of the best times to use herbicides.
Did you have thistles this year? If so, walk out in those infected areas this week. Look close. I'll bet you find many thistle seedlings. Most thistle seedlings this fall will be small, in a flat, rosette growth form, and they are very sensitive now to certain herbicides. So spray this fall and thistles will not be a big problem next year.
Several herbicides are effective and recommended for thistle control. Several newer herbicides like Milestone, Forefront, and Chaparral are very effective. Two other very effective herbicides are Tordon 22K and Grazon. Be careful with all these herbicides, but especially Tordon and Grazon, since they also can kill woody plants, including trees you might want to keep. 2,4-D also works well while it’s warm, but you will get better thistle control by using a little less 2,4-D and adding a small amount of Banvel or dicamba to the mix.
Other herbicides also can control thistles in pastures – like Redeem, Cimarron, and Curtail. No matter which weed killer you use, though, be sure to read and follow label instructions, and be sure to spray on time.
Next year, avoid overgrazing your pastures so your grass stands get thicker and compete with any new thistle seedlings.
Give some thought now to thistle control during October and November. Your pastures can be cleaner next spring.
Cuming County Board of Supervisors Seeking Extension Board Nominations
The Cuming County Board of Supervisors, are seeking nominations for individuals interested in serving a three-year term on the Cuming County Extension Board. Due to changes in the laws, Extension Board Members will be appointed by the Board of Supervisors rather than being elected, as had been the practice in the past.
Two positions on the Cuming County Extension Board are up for appointment. The district lines are defined according to the Cuming County Board of Supervisors districts. Nominees are needed for the districts served by supervisors John Ross, District II, and Clarence Tichota, District IV, and Leslie Ott, District VII. Potential candidates are encouraged to contact the Extension Office or the Cuming County Clerk, Bonnie Vogltance, to determine which supervisor district you reside in.
A nominating committee is seeking nominations or calls from interested individuals. This nominating committee will be responsible for preparing a slate of potential candidates that will be submitted to the Board of Supervisors for their consideration. If you are interested in being a candidate, please feel free to contact the Cuming County Extension office 402/372-6006. You may also contact nominating committee members Cindy Bloedorn at 402/529-6541, Matt Peters at 402-385-3885, and Lori Urwiler at 402-529-6332.
According to Extension Educator Debra Schroeder the operation of Extension should be given serious consideration by all county residents. It operates the tax funds under the guidance of the Cuming county Extension Board.
Extension programs focus on priority needs and problems in five major programming areas including 1) Agriculture, 2) Natural Resources, 3) Home Economics and Family Life, 4) 4-H and Youth Development, and 5) Community Resource Development.
State Fair Carcass Results from Cuming County
The Nebraska State Fair recently released the results for livestock carcass contest according to UNL Extension Educator in Cuming County, Larry Howard. Complete results for Cuming Cunty 4-H exhibitors are:
- Blue: Darby Doernemann, Fremont x2; Dylan Ludwig, Wisner x2; Elizabeth Karnopp, Oakland, Jamie Plagge, West Point; Erin Doernemann, Fremont; Rachel Groth, Beemer.
- Red: Rachel Groth, Beemer; Elizabeth Karnopp, Oakland x2; Megan Groth, Beemer; Tiffany Plagge, West Point; Blake Guenther, West Point; Erin Doernemann, Fremont.
- White: Nathan Groth, Beemer x2; Colby Heller, Pilger; Megan Groth, Beemer; Kiley Guenther, West Point; Logan Polenske, Wisner; Allison Guenther, West Point.
Nebraska Corn Board has newly appointed board members and elected new officers
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| Debbie Borg (l) and David Bruntz |
Two new board members were appointed to the Nebraska Corn Board at the start of the 2013-14 fiscal year. David Bruntz, farmer from Friend, Neb. was appointed to District 1, and Debbie Borg, farmer from Allen, Neb., was appointed to District 4.
David Bruntz, and his wife, Ann, raise irrigated and dryland corn and soybeans along with feeding cattle. He has served as President of the Nebraska Cattlemen, regional Vice President of the National Cattlemen’s Beef Association (NCBA), as well as on the executive committee for NCBA. Bruntz has served 15 years on the local coop board and on the Friend Area Foundation. In addition to his role on the Corn Board, he is currently on the Nebraska Cattlemen’s Foundation.
Debbie Borg is a partner in TD Borg Farms, a 5th generation family farm, raising corn, soybeans, alfalfa and backgrounding cattle. Besides serving on the board, Borg has been involved in the Nebraska Soybean Association, Nebraska Farm Bureau, Nebraska AgRelations Council, Syngenta Young Leader program and numerous volunteer organizations within her community, FFA and 4-H. She has been married to her husband, Terry, for 18 years and they have three children, Hannah, Heidi and Hunter.
With the addition of two new board members, the Nebraska Corn Board met and elected officers, during their meeting in Lincoln, Neb.
- Tim Scheer, District 5 director from St. Paul, Neb., was elected to remain chairman of the board. This will be Scheer’s second term to serve as board chairman.
- Curt Friesen, District 3 director from Henderson, Neb., was elected to remain vice-chairman of the board for his second term.
- David Merrell, District 7 director from St. Edward, was elected to remain secretary/treasurer of the board for his second term.
- Alan Tiemann, at-large director from Seward, Neb., will remain to serve as the past-chairman of the board, for his second term also.
“The Nebraska corn industry has some great new leaders representing them with Dave and Debbie on the board,” said Don Hutchens, executive director of the Nebraska Corn Board. “They, along with our officer team, will play a dynamic role in helping the Nebraska economy through its market development, research, promotion and education, and in supporting the mission and vision for Nebraska’s 23,000 corn producers that pay the corn checkoff.”
Bruntz and Borg’s appointments concluded the service of Dave Nielsen of Lincoln, Neb. (District 1) and Bob Dickey of Laurel, Neb. (District 4).
“I also want to thank Bob and Dave for their years of dedicated service to the 23,000 corn farmers across the state,” added Hutchens. “Both of them brought distinguished leadership and significant ideas that continue to move the board and industry forward.”
CASNR Helps Prospective Students Experience the Power of Red
High school and transfer students can learn about the College of Agricultural Sciences and Natural Resources at the Experience the Power of Red Open House on Oct. 19.
The open house, held on the University of Nebraska-Lincoln's East Campus, gives students the chance to hear about the college's 29 academic programs and two pre-professional programs, said Laura Frey, UNL college relations director. They can also meet current UNL faculty, staff and students.
"They get to explore career opportunities and just become familiar with UNL in general," she said.
The open house will begin at 9 a.m. with refreshments and a browsing session, when students can get a brief introduction to each department in the college. Following a welcome at 10 a.m., students and parents will attend academic sessions that offer more in-depth information about each academic program. The event finishes with lunch and a scholarship drawing at 12:45 p.m. Optional tours of both UNL campuses start at 2 p.m.
Academic interest areas featured at the open house include agribusiness/agricultural economics; agricultural education/agricultural journalism/hospitality, restaurant and tourism management; agronomy; animal science; applied science; biochemistry; food science and technology; food technology for companion animals; forensic science; grazing livestock systems; horticulture; insect science; mechanized systems management/agricultural engineering/biological systems engineering; microbiology; natural resources, including applied climate science, environmental restoration science, environmental studies, fisheries and wildlife, grassland ecology and management, natural resources and environmental economics and water science; PGA golf management; plant biology; turfgrass and landscape management; veterinary science; and the Engler Agribusiness Entrepreneurship program.
For more information or to register, visit casnr.unl.edu/openhouse.
Day @ the Farm Video Contest Aims to Give Nebraska Classrooms Agriculture Experience
Life without agriculture? The Nebraska Farm Bureau and the Nebraska Farm Bureau Foundation for Agriculture are hoping to answer that question for students across the state. The two organizations have teamed up to host the Day @ the Farm video contest for Nebraska classrooms as a part of their goals to promote agriculture literacy.
Agriculture is a staple of Nebraska’s economy accounting for one in four jobs across our state. But with a growing disconnect between farmers and ranchers to teachers and students, an understanding of the impact of agriculture is becoming a major issue.
“This is where the idea for the Day @ The Farm Contest originated,” said Cathy Day, interim executive director of the Nebraska Farm Bureau Foundation for Agriculture.
“The Day @ The Farm Contest is designed to educate students about the importance of agriculture in their lives no matter where they live,” said Deanna Karmazin, state director of the Nebraska Agriculture in the Classroom program. “Through the contest, we hope to reach classrooms who want to learn more about where their food, fuel and clothing come from.”
Teachers and their classrooms, grades K-12, are invited to submit a video by Nov. 15, answering the question – What would your life be like without Nebraska Agriculture? Three classrooms will be selected as grand prize winners from across the state. Additional rules and contest information is outlined on the Nebraska Farm Bureau website, nefb.org.
Winning classrooms will receive an all-expense paid field trip to farms or ranches near their school as well as a surprise lunch party congratulating them as a grand prize winner.
“We are asking everyone to encourage their children’s, grandchildren’s and neighbor’s classrooms to apply for this awesome opportunity! All of the information on the Day @ The Farm contest can be found online at nefb.org,” said Day.
Nine U.S., Canadian and Mexican Meat and Livestock Organizations Appeal U.S. District Court’s Denial of Preliminary Injunction in COOL Lawsuit
Nine U.S., Canadian and Mexican meat and livestock organizations filed their initial brief as part of an appeal of a September 11 decision by the U.S. District Court for the District of Columbia denying a motion for a preliminary injunction in a lawsuit to block implementation of the U.S. Department of Agriculture’s May 2013 final rule on country-of-origin labeling (COOL).
Appellants include the American Association of Meat Processors, American Meat Institute, Canadian Cattlemen’s Association, Canadian Pork Council, National Cattlemen’s Beef Association, National Pork Producers Council, North American Meat Association, Southwest Meat Association and Mexico’s National Confederation of Livestock Organizations.
The brief argues that the trial court incorrectly accepted the Agricultural Marketing Service’s (AMS) argument, which was inconsistent with rationale offered by AMS in the final rule, that the new final rule “is to correct misleading speech and prevent consumer deception” that purportedly occurred because of requirements AMS imposed in its 2009 version of the rule.
“Even putting aside the absurdity of a government agency referring to itself as an agent of ‘deception,’ the District Court should have rejected AMS’s belated declaration because it was a plainly impermissible post hoc rationalization. Yet the District Court accepted it anyway,” the brief notes.
The appellants also contend that when the trial court accepted AMS’ rationalization, it applied the wrong legal standard regarding the First Amendment and compelled speech because the mandated labels at issue are not voluntary deceptive advertising.
“There is no such voluntary misleading advertisement here; AMS is the source of the alleged ‘deception’,” the brief says. “No court has ever before applied lesser scrutiny for compelled speech in such circumstances.”
Because of these factors and the irreparable harm being done to the industry right now, the appellants argue the final rule should be enjoined.
The lawsuit to block implementation of the COOL rule was originally filed July 8, 2013 in the United States District Court for the District of Columbia. The original complaint is available here. A motion for preliminary injunction was filed July 26, 2013.
In their complaint, the plaintiffs explained that the final rule violates the United States Constitution by compelling speech in the form of costly and detailed labels on meat products that do not directly advance a substantial government interest. They also explained that the 2013 regulation exceeds the scope of the statutory mandate, because the statute does not permit the kind of detailed and onerous labeling requirements the final rule puts in place, and that the rule is arbitrary and capricious, because it imposes vast burdens on the industry with little to no countervailing benefit.
The May 2013 rule at issue in the litigation was published by AMS in response to a World Trade Organization (WTO) Dispute Settlement Panel Ruling, which found that the 2009 mandatory-country of origin labeling for meat products rule violated the United States’ WTO obligations. Mandatory country of origin labeling is currently in effect for many meat products. AMS argued that the new May 2013 rule, which is more cumbersome and burdensome than the 2009 version, will somehow satisfy the nations that originally complained to the WTO prompting the ruling.
Report: USDA Over Pays Producers with Crop Insurance
A new report from USDA's Inspector General concludes that prevented planting coverage provided through the federal crop insurance system pays farmers too much and discourages them from planting second crops. The report says that the Risk Management Agency has set current prevented planting coverage levels above the percentages of guarantees that insureds needed to cover average preplanting costs, potentially overpaying by $480 million from 2008-2011. Further, the report concludes that RMA's decision not to apply an assigned yield to prevented planting acreage has created a disincentive to planting a second crop and indirectly penalizes those that do plant. "Under the current policy, producers planted a second crop on only 0.1 percent of prevented planting acres," the report says. RMA generally agreed with the eight recommendations made by the Inspector General.
Very Low Volatility
Matthew A. Diersen, Professor, South Dakota State University
Last week I delivered a risk management presentation for cattle producers interested in livestock insurance. Initially is seemed like an odd time of year to be thinking about falling cattle prices. But after visiting with the audience a little, they were interested in what might happen to prices much later this fall and into the winter. Backgrounding, which did not pencil out in South Dakota last year, has been looking profitable this year. Thus, producers were looking at feed prices, talking about high prices for light calves sold in the area, and thinking about the value of their raised calves and raised feed. I, however, was distracted by something else - the low volatility in the cattle market.
A colleague had recently asked me to confirm a marketing strategy she was exploring after hearing about all the volatility in the market. What volatility had she hear about? Certainly prices in recent weeks have changed because of changing corn prices and other factors. However, most producers in the area have not been selling cattle yet and would not have been affected by that type of volatility. I happen to follow another, specific volatility, the implied volatility from cattle futures and options markets. That volatility is low, very low.
The implied volatility is industry's best guess at how much a futures price will fluctuate between now and when the contract expires. That volatility does not depend on how much cash prices have moved in the recent past. That volatility is the one that producers are worried about. They want to know what will happen to feeder cattle prices by January or March of 2014. Implied volatility for those months has been under 9% in recent weeks. Typical for feeder cattle in recent years has been a volatility level of 15%. A high level of volatility would exceed 20% and a low level would be under 10%. By that reasoning, the volatility is low. Typical live cattle volatility levels are higher than for feeder cattle and the implied volatility is low there too.
Feeder cattle prices this fall are historically high. In contrast, livestock insurance premiums and options premiums are historically low. At-the-money options for deferred months are trading for less than what out-of-the-money options for nearby months were trading for last year. The implied volatility drives the cost the industry charges to transfer risk. At low volatility levels, simple marketing strategies such as buying put options on feeder cattle look attractive. An at-the-money January feeder cattle option would cost about $3.50 per cwt. today with implied volatility at 9%. The same option would cost about $5.75 per cwt. were implied volatility at 15%.
The bottom line is that if these volatility levels hold, it will be very inexpensive to transfer cattle price risk using livestock insurance or using options (of any kind). The lower cost of coverage could show up in higher prices bid for calves this fall.
UAN, Potash Lead Fertilizers Lower
The price slide continues. Retail fertilizer prices are still marching lower, according to retailers tracked by DTN for the third week of September. All eight of the major fertilizers averaged lower prices from the third week of August and all eight also moved down significantly. Prices for most fertilizers began to budge in June. UAN32 tumbled 10% compared to last month while potash, urea, 10-34-0 and UAN28 dropped 9%. UAN32 had average price of $372 per ton, potash $506/ton, urea $452/ton, 10-34-0 $533/ton and UAN28 $330/ton. The remaining three fertilizers were all down 5% compared to last month. DAP had an average price of $541/ton, MAP $579/ton and anhydrous $662/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.49/lb.N, anhydrous $0.40/lb.N, UAN28 $0.59/lb.N and UAN32 $0.58/lb.N.
All eight of the major fertilizers are now double digits lower in price compared to September 2012. UAN32 is now down 10%; MAP is 14% less expensive; DAP, 10-34-0 and UAN28 are all 15% lower; potash is 18% less;, anhydrous is 21% lower and urea is 25% less expensive compared to last year.
NCGA Brings a Farmer's Voice to International Climate Change Discussion
Yesterday, National Corn Growers Association President Pam Johnson joined world leaders from business and government and America's top faith, military, agriculture and health representatives at the Opening Ceremony for Climate Week NYC 2013. In its fifth year, Climate Week NYC provides a global summit for government, business and thought leaders to drive innovation, build coalitions and deliver practical solutions.
"Modern agriculture isn't the problem; it's the solution," Johnson explained. "We are producing more grain on limited arable acres."
Johnson, who spoke alongside international notables including former United Kingdom Prime Minister Tony Blair, President of World Bank Jim Yong Kim, U.S. Special Envoy for Climate Change Todd Stern and many others, brought the story of American corn farmers to the panel. In her remarks, she stressed the scientific and technological advances agriculture uses to increasing demands and an ever-changing environment.
"Perhaps more than any other sector of the economy, farmers are dependent upon the weather and must find ways to adapt to changes to remain productive," Johnson said. "The good news is that technology advancements in agriculture are helping farmers become more resilient in the face of volatile weather while also significantly decreasing greenhouse gas emissions."
Against the backdrop of President Obama's commitment to take action on climate change, and the publication of the first part of the International Panel on Climate Change Fifth Assessment Report, Climate Week NYC 2013 focuses on the themes of leadership, opportunity and security.
"Farmers are committed to taking care of the land and our natural resources," Johnson stated. "The next generation deserves nothing less."
CEOs and executives from top companies also spoke during the event including: Phil Ryan, Swiss Re; Meg Whitman, Hewlett-Packard; Harry Verhaar, Phillips; Steve Howard, IKEA; Nancy Pfund, SolarCity and entrepreneurs Sir Richard Branson and Tom Steyer. Additionally, faith leader Dorothy Boorse, and former Republican U.S. Representative Bob Inglis provided remarks.
NCGA Yield Contest Sets New Participation Record
The National Corn Growers Association's National Corn Yield Contest set a new entry record in 2013 with 8,827. This surpasses the previous record of 8,431 entries, set in 2011, and far outstrips the 8,263 entries received in 2012.
"The contest continues to grow in popularity undeterred by challenging planting weather like that which many saw this year," said NCGA President Pam Johnson. "By nature, farmers are optimists who act humbly while taking great personal pride in their work. NCGA is proud to offer the contest to our members and, in doing so, recognize the excellence that abounds in American agriculture today."
News of the record shortly follows NCGA's achievement of a major milestone, growing rolls beyond 40,000 members for the first time in July. Now in its 49th year, the program remains one of NCGA's most popular. Notably, NCYC rules require entrants be current members of the association.
Winners will receive national recognition in publications such as the NCYC Corn Yield Guide, and potentially receive trips or other awards from participating sponsoring seed and crop protection companies. During the 2014 Commodity Classic in San Antonio, Texas, state winners will be recognized at the NCYC Breakfast and national winners will receive awards at the NCGA Awards Banquet.
"Now, I call on all of our entrants to take a valuable next step and complete the harvest forms for every entry," said Johnson. "While I understand that it seems tempting to leave the entry unfinished should a field fail to produce the anticipated yield, the information the contest provides helps NCGA as it strives to find more effective production practices that will help move agriculture forward. The contest provides not only an exciting opportunity for good-natured competition but also an unparalleled source of production data from America's best and brightest."
The online harvest form is available to both farmers and seed representatives using the same login process as the initial entry form. Login does require submission of the entrants NCGA membership number.
When using the online harvest form, it is imperative that all entrants complete one final step. Following submission of the online harvest form, entrants must submit a printed copy of the harvest confirmation form with the appropriate weight tickets attached for verification. Failure to do so will void entry. Forms and other required documentation must be sent by mail to NCGA, and postmarked no later than seven days after the final yield check, or by Nov. 22, whichever is earlier. See complete rules for details.
CWT Assists with 5 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 18 requests for export assistance from Dairy Farmers of America, Foremost Farms, and Northwest Dairy Association (Darigold) to sell 4.041 million pounds (1,833 metric tons) of Cheddar, Gouda and Monterey Jack cheese and 992,080 pounds (450 metric tons) of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered September 2013 through February 2014.
Year-to-date, CWT has assisted member cooperatives in selling 100.974 million pounds of cheese, 71.538 million pounds of butter, 44,092 pounds of anhydrous milk fat and 218,258 pounds of whole milk powder to 37 countries on six continents. These sales are the equivalent of 2.543 billion pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
Milk Prices Not Expected to Exceed 2012 Levels
Even though the Class III milk price has been running higher this year compared to the same months in 2012, it will not likely reach last year's highs for the remainder of 2013. That's the assessment of Dr. Bob Cropp, professor emeritus with the University of Wisconsin Cooperative Extension. In his monthly Dairy Situation and Outlook report, he noted that the Class III price peaked at $21.02 per hundredweight for October 2012. But the Class IV price will surpass last year's high of $18.66 per cwt. in November.
"While looking less likely, the Class III price could still reach $18.50 per cwt. by October. [But] current dairy futures don't reflect this possibility, Dr. Cropp noted. "The October Class III futures decline from the September price of near $18.15 per cwt. to $17.80, and ends for December at $16.87."
With higher milk prices and lower feed costs, margins for dairy producers have also been higher, he adds. However, higher margins have also supported higher milk production during 2013.
"Milk supplies for cheese production in the Midwest and Northeast during August and September have been rather tight, with cheese plants paying as much as $2.50 per cwt. premium for spot loads of milk, and other cheese plants running at a reduced schedule," Cropp said. "Domestic cheese sales seem mixed, but with favorable exports cheese prices, along with dry whey prices, could strengthen enough to push the Class III price to the mid-$18s by October before declining--but staying above $17 per cwt. for December."
Meanwhile, the supply-and-demand factor is also playing a role in keeping prices in check this fall. Cropp cites the latest USDA milk production report for August, which shows milk production rising for the marks the fifth consecutive month.
"However, milk production last year was slightly below year-earlier levels August through October, so it is likely milk production will continue above a year ago for the remainder of the year."
Of course, the cost of feed will be an important factor for milk prices going into next year. Cropp says if projections for the corn and soybeans harvest materialize, feed prices ought to be considerably lower than last winter.
"Lower feed costs and lower exports spell lower milk prices next year. But, milk prices respond to rather small changes in in either the supply side or demand side of the market. Much uncertainty still exists as to where milk prices will end up. Current dairy futures have Class III prices below $17 per cwt. for most of next year," he predicted.
U.S. exports will also be held back in anticipation that New Zealand's milk production recovery will increase their exports of skim milk powder, lowering U.S. exports in 2014.
Beller Feedlot, Lindsay (NE), wins CAB Small Feedlot of the Year
Nobody likes to lose a customer, but to see a cattle feeder get emotional over the thought of a ranching client having to sell out… that’s when you know his heart is really in the business.
Terry Beller, of Lindsay, Neb., can tell you the last time the Sandhills and points west received a measureable rain. It matters to his bottom line, certainly, but the owner-manager of the 6,000-head Beller Feedlot talks about ranchers dealing with drought as if one of his own children were facing a major obstacle.
Beller’s cattle management and marketing reflect the care he has for those customers. For that attitude, level of cooperation and success in producing high-quality beef, his family business earned Certified Angus Beef LLC (CAB) honors this year. At the brand’s annual conference in Palm Desert, Calif., in September they were named Feedlot Partner of the Year for yards with less than 15,000-head capacity.
After nearly two decades of sending cattle to Beller, some regular suppliers are looking to sell their entire herds for lack of grass.
“That would be devastating,” Beller says. He means it. Not because the western Nebraska ranchers typically load more than 300 yearlings on eastbound trucks before they’ve even entered into price discussions; not because they regularly grade and gain right alongside the top cattle in the yard; but because Beller has gotten to know their family, watched the next generation start to take over the ranch.
“They’re really struggling out there; it’s just a terrible drought,” he says.
This is just one of dozens of relationships Beller has cultivated through the years.
“When I do good for them, they’re going to keep coming back,” he says.
Easier said than done with high input costs and hard-to-predict markets, but Beller says he’s learned a simple truth: “It’s all about margins. You’re not going to hit home runs anymore, especially with $7 corn, that’s not just going to happen, so you’ve got to take those small margins.”
Some of that philosophy comes from discipline learned over 37 of years in the business. It was also passed on to the third-generation cattle feeder.
“My dad always said, ‘When people are running, you walk, and when they’re walking scared—that’s when you dive in,’’ Beller says. “It’s been true to fact when the market is down and things look like heck, that’s when you want to put the plow in as deep as you can.”
Perhaps as a testament, they’ve added a large machine shed and a new office in the last few years and there’s talk of pen expansions.
From ordering materials to installing the office cabinets and completing the trim, Beller’s right-hand man, younger brother Mike put sweat into the entire project, all while maintaining the computerized cattle records and carcass data.
That includes enrolling more than 15,000 head of cattle in CAB’s feedlot database, which reveals an overall CAB acceptance rate of 41% CAB and Prime.
Yet the brothers say that’s not good enough.
“That’s what keeps us going: always wanting to be better,” Beller says. “Our goal is to have a group hit 100% CAB.”
Right now the bar is set at 92% CAB.
“We’re pretty much known for feeding the good black Angus cattle,” Beller says. “That’s gotten us some customers who were leaning on the fence.”Beller not only specializes in feeding for a high-quality endpoint, but he’s willing to share data back to help customers improve.
“When the numbers change, I’m the first one to ask, ‘What happened from last year?’” he says. They talk genetics, health and feeding programs. “I do a lot of comparing from year to year, but they’ll take that data and pick it apart one by one.”
When Beller purchases cattle, he likes to go back to a known source.
“I get in the rhythm of buying the same people’s cattle,” he says. “I know how what they do, I know how they grade.”
He also can expect good disposition, which is a benefit in more ways than one.
“It’s directly related to grading—a calm animal is going to be tastier,” Beller says. And easier to handle.
“I’ve got my own kids working out here. I don’t want anybody getting hurt,” he says.
They compete against themselves, but beyond that, Beller says the “make a quick buck off somebody else” nature of the business has gone by the wayside the past few decades.
“They know we need everybody in this business,” he says. “I want to give them as much as I can, yet I need to buy within reason. I want them to come here because I’m a competitive bidder.”
Beller makes on-location visits when he can to meet the people he’s buying from. “It means a lot to me and I think it means a lot to them to put a face to the check blank that’s buying their cattle.”
It could be weather or health issues or just plain bad luck, but whatever it is that’s plaguing a customer, it weighs heavy on Beller.
“They count on us and we count on them,” he says.
ADM to Establish New Global HQ
One of the world's largest agriculture companies is seeking a more cosmopolitan hometown.
Archer Daniels Midland Co. (ADM) said Monday it plans to relocate its global headquarters after more than four decades in Decatur, Ill., so its senior executives can travel more easily and the company can better recruit and retain talent with diverse skills. It will relocate about 100 jobs as part of the move.
Officials in Chicago -- about 180 miles from Decatur -- confirmed the city is in the running to become ADM's new home.
An ADM spokesman declined to comment on cities under consideration, saying said only that the grain trader and processor is in talks with various public officials and advisers.
ADM, which has annual revenue of about $89 billion, said it needs to be based where executives can travel more efficiently to meet with customers and other ADM employees around the world. It also wants a location where executives' family members can find ample career prospects.
ADM, which was established through a merger in 1923, said it will locate a small, corporate team at the global center. ADM also plans to create an information-technology center at the new location, adding about 100 new jobs over the next few years.
ADM said it will remain committed to Decatur, a city of about 75,000 located in the heart of the nation's Farm Belt. The company will retain about 4,400 employees in Decatur, where it operates the world's largest corn-processing facility along with the company's largest North American soybean-processing plant.
ADM said Decatur will be designated the company's North American headquarters. The company also maintains regional headquarters in Rolle, Switzerland; Sao Paulo, Brazil; and Shanghai, China.
Smithfield Shareholders Approve Acquisition by Shuanghui
Smithfield Foods Inc. shareholders have approved the pork processor's $4.7 billion acquisition by Shuanghui International Holdings Ltd., the biggest purchase of a U.S. company ever by a Chinese firm.
At a special Smithfield shareholder meeting Tuesday, more than 96% of votes cast were in favor of the deal, representing about 76% of the company's total shares outstanding as of the record date for the special meeting. The deal is expected to be completed by Thursday.
"We are pleased with the outcome of today's vote and thank all of our shareholders for their support," said Chief Executive C. Larry Pope.
The vote comes after activist hedge fund Starboard Value LP, which had sought to block the Shuanghui-Smithfield acquisition, changed course last week and said it would vote for the tie-up after failing to come up with an alternative bid.
Shuanghui agreed in May to buy Smithfield for $34 a share, a 31% premium to the price at the time. Some lawmakers and others have criticized the deal over questions of food safety, concerns Smithfield and Shuanghui have rebutted.
This month, the deal won approval from the Committee on Foreign Investment in the U.S., which reviews the national-security risks of foreign acquisitions, at the end of an extended 45-day investigation. Proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services also recommended that shareholders back the deal, and it had been widely expected to win a majority of votes at Tuesday's meeting.
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