NEBRASKA CATTLE ON FEED DOWN SLIGHTLY
Nebraska feedlots, with capacities of 1,000 or more head, contained 2.46 million cattle on feed on February 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down slightly from last year.
Placements during January totaled 545,000 head, up 17 percent from 2013. This is the highest January placements since the data series began in 1994.
Fed cattle marketings for the month of January totaled 470,000 head, up 2 percent from last year. This is the highest January marketings since the data series began in 1994.
Other disappearance during January totaled 15,000 head, unchanged from last year.
IOWA CATTLE ON FEED UP THREE PERCENT
Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,270,000 on February 1, 2014 according to the USDA, National Agricultural Statistics Service, Iowa Field Office. The inventory is up 3 percent from January 1, 2014, but down 2 percent from February 1, 2013. Feedlots with a capacity greater than 1,000 head had 660,000 head on feed, up 6 percent from last month and up 3 percent from last year. Feedlots with a capacity less than 1,000 head had 610,000 head on feed, unchanged from last month, but down 8 percent from last year.
Placements during January totaled 179,000 head, a decrease of 6 percent from last month and last year. Feedlots with a capacity greater than 1,000 head placed 114,000 head, up 19 percent from last month and up 4 percent from last year. Feedlots with a capacity less than 1,000 head placed 65,000 head. This is down 32 percent from last month and down 19 percent from last year.
Marketings for January were 132,000 head, down 20 percent from last month and down 8 percent from last year. Feedlots with a capacity greater than 1,000 head marketed 71,000 head, down 15 percent from last month and down 8 percent from last year. Feedlots with a capacity less than 1,000 head marketed 61,000 head, down 24 percent from last month and down 9 percent from last year. Other disappearance totaled 7,000 head.
United States Cattle on Feed Down 3 Percent
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on February 1, 2014. The inventory was 3 percent below February 1, 2013.
Placements in feedlots during January totaled 2.03 million, 9 percent above 2013. Net placements were 1.96 million head. During January, placements of cattle and calves weighing less than 600 pounds were 470,000, 600-699 pounds were 440,000, 700-799 pounds were 560,000, and 800 pounds and greater were 559,000.
Marketings of fed cattle during January totaled 1.79 million, 5 percent below 2013. Other disappearance totaled 71,000 during January, 10 percent below 2013.
2013 Cattle on Feed and Annual Size Group Estimates
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head represented 83.4 percent of all cattle and calves on feed in the United States on January 1, 2014, down from 83.8 on January 1, 2013.
Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2013 represented 87.8 percent of all cattle marketed from feedlots in the United States, down from 88.5 percent during 2012.
Number of Cattle on Feed on 1,000+ Capacity Feedlots by Month - States and United States: 2013 and 2014
---------------------------------------------------------------------------------------------------
: : : February 1, 2014
: : :--------------------------------------------
State :February 1, 2013 : January 1, 2014 : : Percent of : Percent of
: : : Number :previous year :previous month
---------------------------------------------------------------------------------------------------
: --------------- 1,000 head -------------- ----- percent ----
Arizona ..........: 275 274 272 99 99
California ........: 475 510 520 109 102
Colorado ........: 1,010 960 970 96 101
Idaho .............: 225 220 215 96 98
Iowa ..............: 640 620 660 103 106
Kansas ..........: 2,110 2,010 2,050 97 102
Minnesota ......: 136 130 137 101 105
Nebraska .......: 2,470 2,400 2,460 100 103
Oklahoma ......: 325 260 265 82 102
South Dakota .: 225 230 240 107 104
Texas ............: 2,620 2,440 2,440 93 100
Washington ...: 234 201 206 88 102
Other States ..: 325 335 325 100 97
United States .: 11,070 10,590 10,760 97 102
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Number of Cattle Placed on Feed on 1,000+ Capacity Feedlots by Month - States and United States: 2013 and 2014
---------------------------------------------------------------------------------------------
: : : During January 2014
: During : During :--------------------------------------------
State : January 2013 :December 2013 : : Percent of : Percent of
: : : Number :previous year :previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
Arizona ..........: 30 28 31 103 111
California ........: 55 59 70 127 119
Colorado ........: 190 150 190 100 127
Idaho .............: 37 32 41 111 128
Iowa ..............: 110 96 114 104 119
Kansas ..........: 425 360 435 102 121
Minnesota ......: 19 20 18 95 90
Nebraska .......: 465 405 545 117 135
Oklahoma ......: 51 43 47 92 109
South Dakota .: 36 43 54 150 126
Texas ............: 385 370 405 105 109
Washington ....: 29 34 42 145 124
Other States ...: 37 39 37 100 95
United States ..: 1,869 1,679 2,029 109 121
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Number of Cattle Marketed on 1,000+ Capacity Feedlots by Month - States and United States: 2013 and 2014
---------------------------------------------------------------------------------------------
: : : During January 2014
: During : During :--------------------------------------------
State : January 2013 :December 2013 : : Percent of : Percent of
: : : Number :previous year :previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
Arizona ..........: 26 28 32 123 114
California .......: 50 52 58 116 112
Colorado ........: 175 150 170 97 113
Idaho .............: 40 36 45 113 125
Iowa ..............: 77 84 71 92 85
Kansas ..........: 410 385 385 94 100
Minnesota ......: 15 11 10 67 91
Nebraska .......: 460 420 470 102 112
Oklahoma ......: 64 45 40 63 89
South Dakota .: 40 30 41 103 137
Texas ............: 460 420 385 84 92
Washington ....: 40 37 35 88 95
Other States ...: 35 38 46 131 121
United States ..: 1,892 1,736 1,788 95 103
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STATEMENT BY NEBRASKA AGRICULTURE DIRECTOR GREG IBACH ON CATTLE ON FEED FIGURES
The National Agricultural Statistics Service has released the Cattle on Feed report for February 1, 2014. The report contains information from a monthly survey that counts the number of cattle on feed in feedlots of 1,000 head and greater, highlighted by state. The recent report indicates Nebraska has become the No. 1 cattle feeding state in the nation, surpassing the state of Texas, which has historically held the No. 1 spot.
The report indicates that at the beginning of February, Nebraska had 2.46 million head of cattle on feed in feedlots 1,000 head and greater, compared to 2.44 million head in Texas. Kansas comes in third with about 2 million head.
“Over the past decade the Nebraska agriculture industry has worked collectively to develop the cattle, corn and ethanol sectors, knowing that together the three could have great synergy. I think our continued growth in cattle feeding, culminating in Nebraska taking over the No. 1 position, is a positive reflection of that fact.
“This cattle on feed report follows new Census of Agriculture figures that show growth in the number of small farms and the number of young farmers in Nebraska. I think this collective information demonstrates that the industry’s efforts to position Nebraska as a national and international leader in agriculture are coming to fruition.
“We will continue to watch the cattle on feed figures as we expect some fluctuation, but the trend is certainly positive for Nebraska.”
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Nebraska Cattlemen to Host Heat Stress Management Meetings
Beef feedlot managers, owners, employees and supporting industry personnel will learn the importance of managing heat stress in cattle during the Nebraska Cattlemen Managing Feedlot Heat Stress lunch and learn sessions March 10-12.
These sessions will be a pre-summer review for feedlot sites to help determine the adequacy of facilities and prepare management plans to reduce the impact of heat stress on cattle.
The sessions will be offered March 10 at the Nielsen Center in West Point from 10:30am-2:30pm, March 10 at the River’s Edge Convention Center in Columbus from 5:00pm-9:00pm, March 11 at the Boone County Fairgrounds Casey’s Building in Albion from 10:30am-2:30pm, and March 12 at the Dawson County 4-H Office in Lexington from 10:30am-2:30pm.
Topics and presenters include:
- Finding the potential problem areas in your facilities and planning ahead (Dee Griffin, University of Nebraska)
- Heat waves, why are some areas affected more than others? (Terry Mader, Mader Consulting, LLC)
- Heat stress management, physiological and behavior responses (Terry Mader, Mader Consulting, LLC)
- Design options for heat stress abatement (Jake Mayer, Settje Agri-Services & Engineering)
- Cattle handling in heat. What is a compromised animal? (Rob Eirich, University of Nebraska)
- Animal welfare impacts of heat stress (Jake Mayer, Settje Agri-Services & Engineering)
These 4 hour meetings will include a free meal.
The Managing Feedlot Heat Stress sessions are sponsored by K&R Equipment, F&M Bank, Rainforth Veterinary Supply, Jay Rainforth, Samson-Inc., and Town and Country Vet Clinic.
For more information about the meeting schedule please contact Bonita Lederer at 402.329.6273.
48th Annual TRIUMPH OF AG EXPO - Farm and Ranch Machinery Show Announces Nebraska Wheat to be at the Show!
Over 1,000 booths with over 200,000 square feet of Exhibit space of the latest technology will be showcased at the 48th Annual TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show, Wednesday, March 12, 2014 and Thursday, March 13, 2014 at the CenturyLink Center Omaha.
Regarded as the Area's Largest Indoor Shortline Farm Machinery Show, the EXPO has become a tradition for area farmers, ranchers, stockmen, and their families to come to the show and ask questions directly to the leading farm manufacturers and suppliers for ways to improve their farm operation right before spring fieldwork begins all at one time and under one roof. The Seminar schedule is attached and provides a chance to learn more about some of the new products and services available at the Show. The Farm Show is open on Wed, March 12 from 9 AM to 4 P.M. and on Thurs, March 13 from 9 AM to 3 PM.
The Nebraska Wheat Growers Association and the Nebraska Wheat Board, collectively known as Nebraska Wheat, are bringing the Mobile Baking Lab to the Triumph of Ag Expo in Omaha March 12-13, 2014. Nebraska Wheat will serve free, fresh-baked cinnamon rolls while discussing the advantages of using wheat in the rotation. See below for more details.
Bob Mancuso, Sr., the Show's Producer, says, "Farming today is more challenging and Midwest farmers are interested in keeping up with the changes and ways to increase their profits and yields per acre while reducing their costs." The Triumph of Ag Expo offers a one stop opportunity to see and compare hundreds of hands - on demonstrations from the newest farm machinery to the day-to-day supplies and product information that's available for today's farming decisions. The TRIUMPH OF AG EXPO is proud that they have been able to keep the Admission to the Show FREE for the past 48 years. Advance Free admission tickets can be obtained from County extension agents, farm machinery and equipment dealers, or at the Qwest Center Omaha's door. There are over 4,500 parking spaces on site right at the convention center entrance.
At no other time this spring will area farmers be able to see all these agricultural suppliers indoors at one time and under one roof than on these two days at the Triumph of Ag Expo. Bob Mancuso, Jr., the Show Director, said "Many first-time visitors cannot believe the wide selection of products on display and the tremendous opportunity for savings at the Show". The Triumph of Ag Expo has something for every kind of farm operation, including tillage equipment, planters, monitor and control systems, soil testing equipment, mowers, cattle chutes, augers, fertilizers, various seed hybrids, feeders, tanks and pumps, hay moving and handling equipment, plows, combines, computers and software, tractors and many more agricultural products and services for today's farmers and ranchers.
Bob Mancuso, Jr., said, "The farmers and ranchers in this area have had a very good year and are looking at equipment and products to buy! This year there are many show features. There will be a special Heritage Art display - featuring metal farm scenes and tractors. There will also be antique tractors and equipment from Camp Creek Threshers, Elkhorn Valley Antique Power Association, and the Keg Creek Antique Machinery Club. There are also some crafts for the ladies and hourly prize drawings."
THE TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show is produced by Mid-America Expositions, Inc., sponsored by the Mid-America Farm & Ranch Machinery Council and is a member of the North American Farm Show Council consisting of the top 25 shows in the nation.
INFORMATION ON NEBRASKA WHEAT
The Nebraska Wheat Growers Association and the Nebraska Wheat Board, collectively known as Nebraska Wheat, are bringing the Mobile Baking Lab to the Triumph of Ag Expo in Omaha March 12-13, 2014. Nebraska Wheat will serve free, fresh-baked cinnamon rolls while discussing the advantages of using wheat in the rotation.
During the Triumph of Ag Expo, the Mobile Baking Lab will be run by Nebraska wheat farmers and their spouses as well as Nebraska Wheat staff. Visitors to the booth are welcome to ask questions about wheat production in Nebraska, the benefits of using wheat in a rotation with corn and soybeans, where the wheat check-off is going, and why wheat nutrition and education should matter to farmers. Seed guides, pocket wheat production handbooks with disease and pest information, and membership information for the Nebraska Wheat Growers Association will also be available in the booth.
The Mobile Baking Lab is a complete kitchen housed inside a 24-foot trailer, used by Nebraska Wheat to connect wheat farmers with consumers. Nebraska Wheat uses fresh-baked wheat foods to initiate conversations with trade show attendees about wheat production practices and wheat nutrition.
The Nebraska Wheat Board administers the check-off of 0.4% of net value of wheat marketed in Nebraska at the point of first sale. The board invests the funds in programs of international and domestic market development and improvement, policy development, research, promotion, and education.
The Nebraska Wheat Growers Association is a non-profit, membership based organization that works to improve and stabilize the profitability of the Nebraska wheat producer. NWGA works to do this by representing Nebraska's wheat producers in state and national policy and providing educational opportunities to producers and consumers.
CASNR Helps Prospective Students Experience the Power of Red
High school sophomores and juniors can learn about the College of Agricultural Sciences and Natural Resources at the Experience the Power of Red Spring Edition Open House April 3.
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 8:30 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 9:15 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 11:45 a.m. Optional tours of both UNL campuses start at 1 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/visitday.
2014 Nebraska Cattlemen’s Classic Angus, Simmental and Charolais
Great weather resulted in above-average attendance during the Royal Day at the 2014 Nebraska Cattlemen’s Classic. The day featured the Angus, Simmental, Charolais, Limousin, Gelbvieh shows and sales. The evening showcased an elite offering of pregnancies, flushes, semen and embryo packages.
Angus Sale
The 2014 Nebraska Cattlemen’s Classic Angus Show and Sale was held Thursday, February 20th, 2014 in Kearney, NE. 34 bulls and 22 females participated in this year’s sale. This year’s judge was Don Moser of Manhattan, KS and the auctioneer was Tracy Harl of Kearney, NE.
Taking home Champion Angus Bull and high-selling bull honors was Lot 20, DAR Ali's Brilliance 310 consigned by Dethlefs Angus Ranch of North Platte, NE. This bull is a 01/29/2013, son of SAV Brilliance 8077 and sold to Larry Rice of Scottsbluff, NE, for $15,500.
The Reserve Champion Angus Bull honors went to Lot 45, JJT Wide Load, consigned by Tracy Cattle of Wellfleet, NE. This bull is a 4/21/2013, son of Plainview Lutton E102 and he sold to Brent Hillery of Wichita, TX for $8,500.
High-Selling Female honors went to Lot 46, SOO LINE Vale Bar 2037, consigned by Boss Cattle of Chappell, NE. This heifer is a 01/16/2012, daughter of HF Kodiak 5R and she sold to Blairs.Ag of Lanigan, SK, Canada for $22,000.
The Grand Champion Angus Female was Lot 52, SB Peggy Sue 311, consigned by Sisco Brothers Cattle Co. of Syracuse, NE. This heifer is a 02/1/2013, daughter of Limestone Great Divide U254 and she sold to JW LeDoux, of Agenda, KS for $12,000.
The Reserve Champion Angus Female was Lot 58, Boss Miss Tiger King 356, consigned by Boss Cattle of Chappell, NE. This heifer is a 03/5/2013, daughter of Daines Ranch Tiger King 36Y and she sold to Cottage Lake Livestock of Stony Plain, AB, Canada for $6,250.
The 2014 sale featured 34 bulls averaging $4,248. 22 females sold for an average of $4,360 in 2014. Overall, in 2014, there were 56 cattle that grossed $241,700 and averaged $4,316.
Simmental Sale
The 2014 Nebraska Cattlemen’s Classic Simmental Show and Sale was held Thursday, February 20th in Kearney, NE. 21 bulls and 9 females participated in this year’s sale. Judge was Les Jones of Wills Point, Texas, and the auctioneer was Tracy Harl of Kearney, NE.
Champion Simmental Foundation Bull and high-selling honors went to Lot 18, Nelson's Steel 3141, consigned by Nelson Angus of Crete, NE. This bull is a 02/22/2013 son of SVF Steel Force S701and sold to James Tarnick, Tarnick Farms of Fullerton, NE for $7,750.
Reserve Champion Foundation Simmental Bull went to Lot 39, MCCO Flashpoint, consigned by McCollam Show Cattle of Culbertson, NE. This bull is a 3/31/2013 son of TK/FCC Quickfire and he sold to Bob Hirschman, Bobkat Charolais of St. Paul, NE, for $2,100.
Champion Simmental Purebred Bull honors went to Lot 12, SS Jesse Thur, consigned by Slama Simmentals of Dorchester, NE. This bull is a 02/12/2013 son of RR Thor S332 and sold to Cody Robinett of Riverton, NE, for $6,500.
Reserve Champion Purebred Simmental Bull and high-selling honors went to Lot 2, BCC5 High Ball, consigned by Bullard Cattle Co of Cornell, IL. This bull is a 05/2/2012 son of KKK Blended Whiskey R38 and he sold to Nathan Hoyt of Culbertson, NE, for $7,500.
Grand Champion Simmental Foundation Female and went to Lot 46, MS SB Maid Rite 315A, consigned by Sisco Cattle Brothers Cattle Company, of Syracuse, NE. This female is a 2/1/2013 daughter of ZKCC Chopper 844U and she sold to Nathan Hoyt of Culbertson, NE, for $5,500.
The Reserve Champion Foundation Simmental Female was Lot 51, Vogt Ms Callaway, consigned by Vogt Cattle Co of Elmwood, NE. This heifer is a 03/17/2013 daughter of SS Mr Callaway and she sold to Greg Bauer, Blackwood Farms, LLC., of Culbertson, NE, for $2,500.
Grand Champion Purebred Simmental Female was Lot 55, J6 RA MS. Pandora, consigned by J-6 Farms of Gibbon, NE. This heifer is a 05/5/2013 daughter of DHF Drakkar W242 and she sold to Wryder Svoboda of Sargent, NE for $7,000.
The Reserve Champion Purebred and High-Selling Purebred Simmental Female was Lot 42, WRS Emerald Z216, consigned by Wayne and Barb Ohlrichs of Norfolk, NE. This heifer is a 03/27/2012 daughter of Mr NLC Upgrade U8676 and she sold to Gary Ames, Ames Simmental, of Wymore, NE, for $15,300.
The 2014 sale featured 21 bulls averaging $3,714. 9 heifers sold for an average of $4,967 in 2014. Overall, in 2014, there were 30 cattle that grossed $122,700 and averaged $4,090.
Charolais Sale
The 2014 Nebraska Cattlemen’s Classic Charolais Show and Sale was held Thursday, February 20th in Kearney, NE. 25 bulls and 5 females participated in this year’s sale. Judge was Don Moser of Manhattan, KS and the auctioneer was Tracy Harl of Kearney, NE.
Taking home Champion Charolais Bull honors was Lot 19, BCR Track Fire 311, consigned by Benes Cattle Co of Valparaiso, NE. This bull is a 02/16/2013 son of TR Mr Fire Water 5792R ET and sold to Butch Fanning of Martin, NE for $6,000.
High-Selling Charolais Bull was Lot 25, IKE Sebastion 3109 consigned by Sonderup Charolais Ranch, Inc. of Fullerton, NE. This bull is a 03/10/2013 son of TTT Sebastion and sold to Triple K Charolais and Dale Funk, of Superior, NE for $9,000.
Reserve Champion Charolais Bull went to Lot 22X, HCF Rub It In, consigned by Hassebrook Charolais Farm of Genoa, NE. This bull is a 03/26/2013 son of HC Stash 0383, and he sold to Dave Hebbert, Hebbert Charolais of Hyannis NE, for $4,200.
Champion Charolais Female and high-selling female was Lot 28, SCR Miss Tuffy 2119, consigned by Sonderup Charolais Ranch, Inc. of Fullerton, NE. This heifer is a 02/18/2012 daughter of FC Marbler 841 P and she sold to Cole Billeter of Bertrand, NE for $16,000.
The Reserve Champion Charolais Female was Lot 30, BCR Myra 303, consigned by Benes Cattle Co of Valparaiso, NE. This heifer is a 02/5/2013 daughter of RCR Chrome Illusion W655 and she sold to Curtis Wiedel of Hebron, NE, for $3,750.
The 2014 sale featured 25 bulls averaging $4,412. 5 heifers sold for an average of $5,760 in 2014. Overall, in 2014, there were 30 cattle that grossed $139,100 and averaged $4,637
Limousin Sale
The 2014 Nebraska Cattlemen’s Classic Limousin Show and Sale was held Thursday, February 20th in Kearney, NE. 10 bulls and 4 females participated in this year’s sale. Judge was Les Jones of Wills Point, TX, and the auctioneer was Bruce Brooks of Marietta, OK.
Taking home Champion Limousin Bull honors was Lot 5, SL Trip Wire 299Z, consigned by Straight Limousin of Logan, IA. This bull is a 11/14/2012 son of Mags Xyloid and sold to Dean Summerbell of East Bethel, MN, for $4,000.
Reserve Champion Limousin Bull Lot 4, Wulfs Zonked 9114Z consigned by Casey Fanta, Wulf Cattle of Morris, MN. This bull is a 08/6/2012 son of SAV Final Answer 0035 and he sold to Max Schultz, M&M Farms of Oxford, NE, for $7,100.
High Selling Limousin Bull was Lot 10, HUNT Atomic 17A, consigned by Hunt Limousin Ranch of Oxford, NE. This bull is a 02/16/2013 son of RUNL Stetson 850S and he sold to Curt Wieczorek of Mt. Vernon, SD, for $8,200.
Champion Limousin Female went to Lot 16, JAMO ZURIE 307A, consigned by Amos Limousin of Stapleton, NE. This bull is a 02/23/2013 son of DHVO Deuce 132R and she sold to Matthew Schultz of Oxford, NE, for $3,500.
Reserve Champion Limousin Female went to Lot18, BRAW Ms Christy 353A, consigned by Bullis Creek Ranch of Wood Lake, NE. This heifer is a 03/06/2013 daughter of PBRS Upper Echelon 820U and she sold to Max Schultz, M&M Farms of Oxford, NE, for $3,800.
High Selling Limousin Female went to Lot 17, HUNT Applesauce 80A, consigned by Hunt Limousin Ranch of Oxford, NE. This heifer is a 03/06/2013 daughter of HUNT Xclaim 71X and she sold to Casey Fanta, Wulf Cattle of Morris, MN, for $4,100.
The 2014 sale featured 10 bulls averaging $5,280. 4 heifers sold for an average of $3,300 in 2014. Overall, in 2014, there were 14 cattle that grossed $66,000 and averaged $4,714.
Balancer/Gelbvieh Sale
The 2014 Nebraska Cattlemen’s Classic Balancer/Gelbvieh Show and Sale was held Thursday, February 20th in Kearney, NE. 13 bulls and 12 females participated in this year’s sale. Judge was Les Jones of Wills Point, TX, and the auctioneer was Tracy Harl of Kearney, NE.
Taking home Grand Champion Balancer/Gelbvieh Bull and high selling honors went to Lot 10, BARG Victory 40A ET, consigned by Barwick Gelbvieh of Orleans, NE. This bull is a 01/24/2013 son of SAV Pioneer 7301 and sold to Dale and Mike Taubenheim, Taubenheim Farms, of Amherst, NE, for $8,000.
Reserve Champion Balancer/Gelbvieh Bull was Lot 13, AHL Final Drive 368A ET, consigned by LeDoux Ranch of Agenda, KS. This bull is a 03/2/2013 son of XXB Wingman 639T ET and he sold to Jerry Ibsen, Kearney, NE, for $3,100.
Grand Champion Balancer/Gelbvieh Female and high selling honors went to Lot 27, CTR Lass 3200A , consigned by Cedar Top Ranch of Stapleton, NE. This heifer is a 04/2/2013 daughter of CTR Sandhills 0065X and she sold to JW LeDoux of Agenda, KS for $12,000.
Reserve Champion Balancer/Gelbvieh Female was Lot 20, VER Ms Bizkit 330Z, consigned by Flying H Genetics of Arapahoe, NE. This heifer is a 10/2/2012 daughter of Connealy Stimulus 8419 and she sold to Blake Steinkruger of Upland, NE, for $5,000.
The 2014 sale saw 13 bulls average $3,308. 12 heifers sold for an average of $3,675 in 2014. Overall, in 2014, there were 25 cattle that grossed $87,100 and averaged $3,484.
Royal Ice Sale
The 2014 Nebraska Cattlemen’s Classic Royal Ice Sale was held Thursday, February 20th in Kearney, NE. The Royal Ice Sale consisted of 27 embryo packages, one flush and 5 semen packages. Auctioneer was Tracy Harl of Kearney, NE.
High Selling Embryo Package was Lot 31, MS 315 of TH x SVF/NJC Built Right N48, consigned by Boss Cattle Co., of Chappell, NE, and sold to Cody Gale, Gale Angus Ranch of Cody, NE, for $650 per embryo for a total amount of $3,900.
The sale also featured five semen lots that averaged $582 per lot.
A highlight of the Royal Ice sale was Lot 27- Flush offered by Christo Cattle, Albion, NE. This flush lot was purchased by Wayne and Barb Ohlrichs, Norfolk, NE for $5,750.
The 2014 sale featured 27 embryo packages grossed $59,075 and averaged $2,188 and 5 semen lots grossed $2,910 and averaged $582 and one flush lot sold for $5,750.
Friday, February 21st will feature the Shorthorn, Maine Anjou and ChiMaine/ChiAngus breeds along with the Replacement Heifer Pen of Five Sale. Friday will also bring the juniors to the 23rd NE Cattlemen’s Classic which will kick-off the junior activities for the weekend. Saturday’s Junior & Senior Classic Judging competitions will see almost 400 youth participating in this great event.
2014 Nebraska Cattlemen’s Classic Shorthorn, Maine Anjou and ChiMaine/Chianina and Pen of 5 Heifer Sale
Friday’s schedule for the 23rd NE Cattlemen’s Classic consisted of three breed shows and the Commercial Man’s Pen of Five Heifer Sale. Friday also brought the arrival of many junior cattlemen to the NE Cattlemen’s Classic. Excitement is also growing for the upcoming Fancy Heifer and Prospect Steer Sale on Saturday.
Shorthorn Sale
The 2014 Nebraska Cattlemen’s Classic Shorthorn Show and Sale was held Friday, February 21st in Kearney, NE. 7 bulls and 7 females participated in this year’s sale. Judge was Don Moser of Manhattan, KS, and the auctioneer was Bruce Brooks of Marietta, OK.
Taking home Grand Champion Shorthorn Bull and was Lot 5, GCF Anwar, consigned by Crawford Family Shorthorns of Roca, NE. This bull is a 03/6/2013 son of GCF Sterling and sold to Radley Eisenhauer of Farnam, NE, for $3,300.
Reserve Champion Shorthorn Bull and high-selling honors was Lot 11, 3BC Judge 1397, consigned by 3BC Shorthorn Farms of Pierce, NE. This bull is a 04/22/2013 son of SBR Hi-Definition 16X and sold to Schroeder Family Shorthorns, of Columbus, NE for $6,000.
Champion Shorthorn Heifer was Lot 15, BOS White Lace, consigned by Sha Ron Farms of Clarkson, NE. This heifer is a 2/24/2013 daughter of SRF Buddy and she sold to Fred Gruhn of Denison, IA for $7,750.
Reserve Champion Shorthorn Heifer and high-selling honors was Lot 14, GNCC Brenda 239A, consigned by Gana Nisley Cattle Co of Martell, NE. This heifer is a 02/22/2013 daughter of SULL GNCC Asset ET and she sold to Jay Cech of Clarkson, NE for $8,500.
The 2014 sale saw 7 bulls averaging $2,979. 7 heifers sold for an average of $4,793 in 2014. Overall, in 2014, there were 14 cattle that grossed $54,400 and averaged $3,886.
Maine Anjou Sale
The 2014 Nebraska Cattlemen’s Classic Maine Anjou Show and Sale was held Friday, February 21st in Kearney, NE. 12 bulls and 2 females participated in this year’s sale. Judge was Les Jones of Wills Point, TX, and auctioneer was Tracy Harl of Kearney, NE.
Overall Maine Anjou Bull and Grand Champion Purebred Bull was Lot 22X, BBR Abel 14A, consigned by Blind Badger Ranch of Fort Morgan, CO. This bull is a 05/5/2013 son of GOET I80 and he sold to Keith Klatt, Klatt Farms, Campbell, NE, for $4,400.
Overall Reserve Maine Anjou Bull and Champion Maintainer Bull along with high-selling honors was Lot 13, KQM Made Right, consigned by KQM Show Cattle of Minden, NE. This bull is a 03/30/2013 son of GTWY Breath Easy and he sold to Bob Holzwarth, Cattle Alliance of Saint Francis, KS for $5,400.
Overall and Grand Champion Purebred Maine Anjou Heifer and high-seller was Lot 18, BBR Kashmirs Girl 1290Z, consigned by Blind Badger Ranch of Fort Morgan, CO. This heifer is a 05/4/2012 daughter of HAA Wisdom 505S and she sold to Timothy and Jake Zahm of Osecola, NE for $13,750.
Overall and Reserve Champion Maintainer Heifer was Lot 17, PDCK Black Betty, consigned by D&P Enterprises of Pierce, NE. This heifer is a 05/5/2012 daughter of GTWY-HFM Destination and she sold to Garrett Smart of Atwood, CO, for $4,000.
The 2014 sale featured 12 bulls averaging $3,479. 2 females sold for an average of $8,875 in 2014. Overall, in 2014, there were 14 cattle that grossed $59,500 and averaged $4,250.
ChiMaine/ChiAngus Sale
The 2014 Nebraska Cattlemen’s Classic ChiMaine/ChiAngus Show and Sale was held Friday, February 21st in Kearney, NE. 2 bulls and 3 females participated in this year’s sale. Judge was Les Jones of Wills Point, TX, and auctioneer was Tracy Harl of Kearney, NE.
Taking home Grand Champion Chianina Bull and high-selling honors was Lot 2, GAC House Call, consigned by Greg Christo of, Albion, NE. This bull is a 02/20/2013 son of Doctor Meyer and he sold to Bob Holzwarth, Cattle Alliance, of Saint Francis, KS for $7,000.
Reserve Grand Champion Chianina Bull was Lot 1, RPC Linebacker 186, consigned by Ralph and Cheryl Pilkington of Albion, NE. This bull is a 02/15/2013 son of Hannibal and he sold to Fred Gruhn of Denison, NE, for $3,200.
Grand Champion Chianina Heifer and high-selling honors was Lot 6, Fuzzy Honey, consigned by Schultz Show Cattle of Cairo, NE. This heifer is a 04/12/2013 daughter of Monopoly and she sold to Nathan Hoyt of Culbertson, NE, for $8,100.
Reserve Grand Champion Chianina Heifer was Lot 5, Bonnies Girl, consigned by Schultz Show Cattle of Cairo, NE. This heifer is a 02/21/2013 daughter of Heatwave and she sold to Greg Bauer, Blackwood Farms, LLC of Culbertson, NE, for $4,000.
The 2014 sale featured 2 bulls averaging $5,100. Three females sold for an average of $5,100 in 2014. Overall, in 2014, there were 5 cattle that grossed $25,500 and averaged $5,100
Pen of 5 Sale
The 2014 Nebraska Cattlemen’s Classic Commercial Man’s Pen of Five Sale was a favorite again for events held Friday, February 21st in Kearney, NE. 12 lots of exceptional commercial open and bred heifers provided a great selection to the bidders/buyers that came to the Classic on Friday evening. The auctioneer was Tracy Harl of Kearney, NE.
The Grand Champion Pen of Five Heifers went to Lot 6, consigned by Dethlefs Angus Ranch of Ravenna, NE. This was a Registered Angus Pen of Open Heifers that sold to Robert Steinbrink, Blackstone Cattle Co of Loomis, NE, for $11,100.
The Reserve Champion Pen of Five Heifers Lot 2, consigned by Douglas Keiser, Flying K of Gothenburg, NE. This pen was a Simm/Angus Cross of Bred Heifers that sold to Garrett Smart of Atwood, CO, for $14,000.
High-Selling Pen of Five Heifers went to Lot 3, consigned by Douglas Keiser, Flying K of Gothenburg, NE. This pen was a Simm/Angus Cross of Bred Heifers that sold to Kevin Knuth of Grand Island, NE, for $17,400.
The 2014 sale featured 12 pens that grossed $129,500 and averaged $10,792.
The junior weekend begins on Saturday with judging contests and the junior show check-in at 7:00 AM. Sullivan’s will provide the Stock Show University Clinic from 10:30 AM- 11:30 AM. Also, this year is the Junior Showmanship Blow-n-Go at 3:30 PM with many kids excited about this opportunity. New this year is the Classic Premiere Heifer Selection at 7:00 PM followed by Supreme Row Judging at 8:00 PM. Sunday will feature the Junior Show with the Breeding Heifers in Ring 1 at 8:30 AM, and Market Heifers in Ring 2 at 9:00 AM.
Cold Storage Highlights January 2014
Total red meat supplies in freezers were up 6 percent from the previous month but down 3 percent from last year. Total pounds of beef in freezers were down 2 percent from the previous month and down 11 percent from last year. Frozen pork supplies were up 13 percent from the previous month and up 3 percent from last year. Stocks of pork bellies were up 8 percent from last month and up 137 percent from last year.
Total frozen poultry supplies on January 31, 2014 were up 3 percent from the previous month but down 6 percent from a year ago. Total stocks of chicken were down 1 percent from the previous month but up 3 percent from last year. Total pounds of turkey in freezers were up 16 percent from last month but down 24 percent from January 31, 2013.
Total natural cheese stocks in refrigerated warehouses on January 31, 2014 were up 1 percent from the previous month but down 2 percent from January 31, 2013. Butter stocks were up 23 percent from last month but down 33 percent from a year ago.
Total frozen fruit stocks were down 10 percent from last month but up 13 percent from a year ago. Total frozen vegetable stocks were down 9 percent from last month and down 3 percent from a year ago.
ASA Reiterates Trade Priorities, Concerns on Eve of TPP Ministerial
As U.S. Trade Representative Ambassador Michael Froman heads to Singapore for the upcoming ministerial for the Trans Pacific Partnership (TPP) trade agreement, the American Soybean Association took the opportunity to reiterate the association’s key priorities for the discussions, as well as significant market access concerns that ASA has regarding the ongoing negotiations with Japan, Canada, and other Pacific-Rim nations. ASA President and Iowa farmer Ray Gaesser issued the following statement:
“As Ambassador Froman heads to Southeast Asia to represent American interests in the Trans Pacific Partnership, we are both encouraged and concerned about the potential for these upcoming negotiations.
“We are encouraged at the overall progress and prospects presented by the TPP. This agreement is something that we, the growers of America’s largest agricultural export, have been behind since day one. The agreement encompasses 11 key trading partners that each represent a growing market for U.S. soy, and combine to account for more than $27 trillion in GDP. If constructed and enacted in the right way, the TPP can be a real game-changer for American soybean farmers and our livestock customers.
“But that’s also where we’re concerned. Japan, who is the newest member of the TPP negotiations, has requested special protections for numerous agricultural commodities. These protections, which include exemptions for meat and certain grain commodities among others, would not only weaken the TPP agreement, but also hamper the development of agreements with new partners by setting a dangerous precedent allowing countries to pick and choose those parts of an agreement that work for them. It is not a reciprocal or mutually-beneficial approach to trade, and we encourage the U.S. and other TPP nations to reject the Japanese demand to exclude products from eventual liberalization.
“Overall, we remain supportive of the TPP, and optimistic that it can become a vehicle for increased soybean and meat trade with key partners. After all, agricultural trade like that conducted with our fellow TPP nations accounts for more than a million jobs and almost $200 billion in economic activity, but those benefits simply cannot be realized if one member of such a balanced coalition receives such an unbalanced benefit.”
Japan Offer On TPP Unacceptable To U.S. Agriculture
If the United States accepts the offer Japan has made as part of the ongoing Trans-Pacific Partnership (TPP) trade talks, it would be a radical departure from previous U.S. free trade agreements (FTAs) and set an unacceptable precedent for future trade deals, according to a coalition of agricultural organizations.
The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global GDP.
In its negotiations with the United States, Japan wants to exempt from tariff elimination 586 tariff lines, or 11 percent of its tariff schedule. In the 17 other FTAs the United States has concluded this century, only 233 tariff lines were exempted from tariff elimination.
“For the TPP to be a high-standard, 21st century agreement, Japan’s deal on market access should exceed the deal that South Korea and other U.S. FTA partners made this century with the United States,” said Nick Giordano, vice president and international trade counsel for the National Pork Producers Council, which is part of the agricultural coalition.
“If the United States acquiesces to Japan’s demands,” Giordano said, “it’s not difficult to envision other trading partners asking for exemptions on non-agricultural products. And if Japan is permitted to shield a massive number of tariff lines from tariff elimination, other TPP countries are likely to pull back their sensitive products.”
Japan is an important market for U.S. agriculture – the fourth largest – which shipped $13.5 billion of food and agricultural products to the island nation in 2012.
Said Giordano, “The U.S. must reject Japan’s offer and insist that it do what every other U.S. trading partner has done and what all other TPP nations are willing to do: eliminate all tariffs.”
Senators Call For Japan To Eliminate Tariffs
Senate lawmakers are calling on Japan to eliminate tariff and non-tariff trade barriers for U.S. agricultural products as part of the ongoing Trans-Pacific Partnership (TPP) trade talks.
The TPP is a regional negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global GDP. Lead negotiators met this week in Singapore – ahead of the TPP ministers meetings Feb. 22-25 – to discuss outstanding issues, including Japan’s recalcitrance on market access.
In a letter sent today to U.S. Trade Representative Michael Froman, 16 senators, led by Michael Bennett, D-Colo., and Charles Grassley, R-Iowa, asked for assurances that the TPP negotiations will not be concluded until Japan agrees to eliminate tariff and non-tariff trade barriers for agricultural products. In addition to Bennett and Grassley, signing the letter were Sens. Roy Blunt, R-Mo., Richard Burr, R-N.C., John Cornyn, R-Texas, Joe Donnelly, D-Ind., Kay Hagan, D-N.C., Jim Inhofe, R-Okla., Mike Johanns, R-Neb., Mark Kirk, R-Ill., Jerry Moran, R-Kan., Mark Pryor, D-Ark., Pat Roberts, R-Kan., John Thune, R-S.D., Mark Udall, D-Colo., and John Boozman, R-Ark.
Japan is demanding special treatment for its agricultural sector, including exclusion from the agreement of certain “sensitive” products. The United States never has agreed to allow a trading partner to exempt as many tariff lines as Japan is requesting. It wants exemptions for 586 tariff lines, or 11 percent of its tariff schedule. (In the 17 free trade agreements the United States has concluded this century, a total of 233 tariff lines have been exempted from having their tariffs go to zero.) A recent analysis of Japan’s market access offer can be viewed here.
The Asian nation is an important market for U.S. agriculture – the fourth largest – which shipped $12.1 billion of food and agricultural products to the island nation in 2013.
The senators pointed out in their letter that, if Japan is allowed to claim exceptions for sensitive products, other TPP countries inevitably will demand the right to do the same. That, they said, would cost U.S. jobs and billions of dollars in future U.S. agricultural exports and would undermine the TPP and future trade talks, including the ongoing Trans-Atlantic Trade and Investment Partnership (TTIP) negotiations between the United States and the European Union.
A number of U.S. agricultural organizations resounded the points in the Senate letter.
“What is achieved in TPP with Japan will set the standard for future TPP partners such as China and the Philippines and for TTIP negotiations,” said NPPC President Randy Spronk, a hog farmer from Edgerton, Minn., who pointed out that the EU already has indicated it will seek to protect pork and other agricultural products. “Japan’s market access offer, if accepted, would be a radical departure from past U.S. trade policy, exempting nearly three times more tariff lines than were exempted in all 17 previous U.S. free trade agreements combined. All U.S. sectors are at risk if the precedent of allowing widespread product tariff exemptions is established.”
Those sentiments were echoed by Bob McCan, president of the National Cattlemen’s Beef Association and a cow-calf producer from Victoria, Texas. “It is fundamentally important that all TPP members, including Japan, abide by the same terms of TPP as the other members. Excluding products for purely political reasons sets a dangerous precedent that will result in other TPP countries seeking similar treatment. This will undermine all efforts to make TPP a true 21st century agreement based on market principles and sound science,” said McCan.
“It is vital that TPP be done in a comprehensive manner so that all of America’s farmers and ranchers can realize the benefits of a more open regional marketplace,” said American Farm Bureau Federation President Bob Stallman. “The Trans-Pacific region is an economically dynamic slice of the world, and to be meaningful, these talks need to enhance opportunities for all sectors, rather than picking winners and losers based on one nation’s perceptions.”
Added James H. Hodges, president and CEO of the American Meat Institute, “The TPP is a 21st century trade agreement that must be ambitious and comprehensive. To live up to the high standards of the TPP partners, Japan must be willing to negotiate all products.”
“As a major wheat importer, it is in Japan’s interest to free its grain trade and ensure the future competitiveness of its large milling and wheat foods industries under TPP,” said U.S. Wheat Associates Chairman Dan Hughes.
“We are open to a reasonable but limited amount of time for Japan to transition to a zero tariff for wheat,” said National Association of Wheat Growers President Bing Von Bergen, “but we must see that outcome if Japan is to earn our support for its TPP membership.”
Hurt: Beef Herd Expansion Possibly on Horizon
Recent record-high cattle prices and lower feed costs could offer producers the profit incentives they need to start expanding their herds after U.S. beef cattle numbers at the start of this year reached their lowest point since 1951, Purdue Extension agricultural economist Chris Hurt says.
The nation's beef cattle herd has been declining for many years, with the most recent phase beginning in 2007 when high feed prices led to large financial losses for producers. Since that time, major beef-production areas also have been dealing with drought. But if lower feed costs and high cattle prices hold steady, producers could start to slowly grow their operations.
"While the incentives have turned positive, they have not been in place long enough for the industry to begin registering signs of expansion according to U.S. Department of Agriculture numbers," Hurt said. "The rebuilding of the beef herd is expected to take multiple years."
Hurt said two main factors are driving increased beef profit potential. The first is that small herd numbers have kept beef supplies low. The second is that U.S. corn, soybean and forage crops returned to more normal yield levels, bringing with them more abundant feed and lower feed prices. The combination has resulted in record-high prices for fed cattle and calves this winter.
While the USDA's most recent cattle inventory report showed that the number of replacement heifers held back for breeding is up about 2 percent, that increase isn't likely enough to grow beef cow numbers this year.
Whether the national beef herd grows or declines in the coming months and years will depend, in large part, on cow slaughter numbers, Hurt said.
"Some cow/calf operations will see 2014 as the golden opportunity to get out with record-high cow prices," he said. "But the greater tendency will be for producers to hold on to the cows for the profitable opportunities that are expected over the next three or more years."
Hurt also said the following would be hindrances to expansion:
-- Retaining heifers to replace breeding cows is expensive for producers.
-- Beef producers have struggled through a long period of narrow margins, so it will take a longer time of profitability to restore their confidence.
-- Drought still has its grasp on large areas of beef-production regions.
But even with the challenges, Hurt said there seems to be plenty of expansion incentives over the next few years.
"The price outlook is extremely favorable for 2014 to 2016 for the beef industry," he said. "Beef supplies this year are expected to be down 5 percent, while domestic demand is expected to remain positive."
High beef prices are expected to reduce export demand, and beef will have some strong consumer competition from higher pork, turkey and chicken supplies.
"However, low beef supplies will dominate these drivers and likely push cattle prices to another record year," Hurt said. "Finished cattle prices are expected to average about $135 per live hundredweight in 2014, exceeding the previous record high near $126 in 2013."
Hurt's full report, Beef Cattle Industry Just Beginning to Transition to Expansion, is available via the Farmdoc website under "Marketing & Outlook." Farmdoc is a service of the University of Illinois.
Imperial Valley Cattle Feeders Work to Keep Brawley Plant Open In Wake of National Beef Packing Decision to Close Facility
The Imperial Valley Cattle Feeders Group said today that it had been working with National Beef Packing Co. to prevent the closing of its Brawley processing facility on April 4.
The local feeders offered in excess of $9 million in additional cattle price discounts for years 2014 and 2015. The discount was in addition to the $15 million of discounts previously given National Beef on Jan. 1, 2013. Annual discounts beyond $24 million would put local feeders at a disadvantage when trying to compete with other markets, according to Bill Brandenberg, of the Imperial Valley Cattle Feeders (IVCF) Group.
"National lost a stable supply of cattle from Arizona and some IVCF members had plans to increase their supplies but those plans are now on hold. Imperial Valley cattle numbers are at 25-30 year highs. Valley feeders understand National's need for more cattle and are ready to accommodate those needs to the best of their abilities," Brandenberg said.
The feeders said they appreciate all of the extraordinary efforts made by Imperial County, City of Brawley, Imperial Irrigation District, Senator Ben Hueso, Assemblyman Manuel Perez, the Governor's office, the Regional Water Quality Board and other stakeholders who have worked with National Beef to keep its plant open.
"We owe it to the Imperial Valley community, the plant's 1,300 employees, and our own feed yard employees to continue looking at all options," Brandenberg said.
Dairy Situation and Outlook
Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension, University of Wisconsin-Madison
With milk production flat the last two months of last year and increasing just 0.4% for the year coupled with record dairy exports totaling 15.5% of U.S. milk production on a total solids basis the milk supply-demand situation remains rather tight. The result is record cheese prices and record milk prices for February. On the CME 40-pound cheddar blocks were a record at $2.36 per pound on February 4th and cheddar barrels a record $2.32 per pound on February 5th. And with dry whey at $0.61per pound the February Class III price will a near $23.15, up $2 from the January price of $21.15 and a record. With nonfat dry milk trading more than $2 per pound the February Class IV price will be near $23.35, up more than $1 from the January price of $22.29 and also a record. Both the Class III and Class IV prices are more than $5 higher than February a year ago. The January U.S. All Milk price was $23.20 and will be about $25 for February, also a record and more than $5 above a year ago.
With feed prices a lot lower than a year ago dairy producers are experiencing strong margins (returns over feed costs). This will help dairy producers to recover financially after receiving very depressed milk prices in 2009 and tight margins the last half of 2012 and the first half of 2013 that resulted from the drought of 2012 causing very high feed prices.
The latest dairy product production report and dairy stock report are for December. Compared to a year ago, cheddar cheese production was 2.8% lower with total American cheese production 2.2% lower. American cheese stocks have declined each month since May and as of December 31st stocks were 2.6% lower than a year ago. The production of other cheese types were much higher than a year ago increasing total cheese production by 2.3%. But strong cheese exports resulted in total cheese stock as of December 31st being 1.4% lower than a year ago.
December butter production was 6.9% lower than a year ago. Lower butter production and strong exports pushed December 31st butter stocks 27.2% lower than a year ago. December nonfat dry milk production was 20.8% lower than a year ago as more skim milk powder was produced for exports. Skim milk powder production was up 52.4%. Producing 82% butter and skim milk powder for export has tighten both the supply of butter and nonfat dry milk for domestic use which has kept prices strong.
The big question is how long can milk prices stay at these record levels? As of now cheese, butter and nonfat dry milk supplies are rather tight. Dairy exports also remain strong. These two factors appear to be holding up butter and cheese prices. Butter and cheese prices have fallen but are still holding at rather high levels. CME butter was $1.90 per pound back on January 28th, fell 13 cents to $1.77, but gained a penny on February 20 to $1.71. CME cheddar barrel cheese declined $0.2525 from its record of $2.32 per pound to $2.0675, but gained $0.0425 on February 20th to $2.11 on an unfilled bid. CME 40-pound block cheddar cheese fell $0.2525 from its record of $2.36 per pound to $2.1075, but also increased on February 20th by $0.0225 on an unfilled bid to $2.13.
Dairy exports are forecasted to decline some from last year’s record as milk production is increasing in each of the five major dairy exporters. But, after rather poor milk production in each of these exporters last year and strong world demand there are not surplus dairy stocks in any of the countries. It will take some time to rebuild stocks and world demand is expected to continue a strong level. So U.S. dairy exports ought to remain at high levels through the first half of the year and end the year down only slightly from last year’s record.
The level of milk production is the major factor on how long milk prices hold. Margins for dairy producers are very good and history says dairy producers will maintain or increase cow numbers and feed for high milk production per cow. Despite high slaughter cow prices dairy farmers may reduce culling of cows. The January 1st cattle inventory also shows the total number of dairy replacements about unchanged from a year ago with the number to calve this year up by 1.8%. However, Lower quality forages appear to be reducing milk per cow in some states like Minnesota and Wisconsin. USDA’s report on January milk production shows milk per cow compared to a year ago down 1.2% in Minnesota and 2.9% in Wisconsin. Of the 23 reporting states milk per cow was down in 10 with the average increase of 0.9%. Tighter supplies of quality forages may be reducing cow numbers in some state. Cow numbers were down 1.1% in Minnesota and 2.4% in Idaho. Of the 23 reporting states cow numbers were down in 9 and ust 0.1% higher .
Compared to a year earlier January milk production was up in 16 states and lower in 7. California which was plagued most of last year with high feed costs resulting in unfavorable dairy producer margins ended up with 1.3% less milk than 2012. But, much improved milk prices and lower feed costs are resulting in increased milk production. In January California had 0.1% more cows producing 4.6% more milk per cow resulting in 4.7% more milk. Texas which increased milk production just 0.1% last year increase cow numbers by 1.1% and milk per cow by 2.1% for an increase in milk production of 3.3%. Compared to January a year ago milk production was up just 0.8% in Arizona, 0.4% in Idaho and down 0.9% in New Mexico. In the Northeast milk production was up just 0.3% in New York, 0.4% in Pennsylvania, 1.3% in Michigan and down 1.3% in Ohio. In the Upper Midwest milk production was down 2.3% in Iowa, 2.1% in Minnesota and 2.9% in Wisconsin.
We can expect milk production to continue to improve as we move through the year. Weather can impact milk per cow and crop conditions. The severe drought in California will likely to substantially increase the price of alfalfa hay later this year and could impact the level of milk production recovery in the state. As of now USDA is projecting 0.4% increase in the average number of milk cows for the year and 1.9% more milk per cow resulting in an increase of 2.2% in total milk production.
No doubt with favorable weather and good crops this summer milk prodcut6ion will continue to improve. Milk prices will average higher for the first half of the year than for the last half. But, as of now it appears that milk prices will average higher for the year than 2013 setting a new record high. Dairy futures are quite optimistic with Class III above $20 through April, above $19 March through June and not falling below $18 until December. But, if USDA is correct on their forecast for milk production Class III prices could well end up lower than this for the last half of the year, but staying above $17 until the end of the year is quite likely. Even if prices due end up at this lower level, with lower feed costs 2014 is shaping up to be good year for dairy producers and they deserve it.
CoBank Reports Higher Quarterly, Annual Income
CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced fourth-quarter and full-year financial results for 2013. CoBank reported net income of $856.5 million for the year, up slightly from $853.9 million in 2012.
The increase was driven primarily by improvements in credit quality and the fact that no provision for loan losses was recorded in 2013, compared to $70.0 million in provisions in the prior year.
Net interest income decreased 6 percent, to $1.2 billion, primarily due to the impact lower interest rates had on the bank's returns on invested capital, its balance sheet positioning and its portfolio of investment securities.
Average loan volume increased 2 percent to $71.9 billion.
For the fourth quarter, net income increased to $227.6 million, from $153.4 million in the same period of the prior year.
During the quarter, the bank reversed $20.0 million in loan loss provisions recorded earlier in the year, compared to a $50.0 million provision in the fourth quarter of 2012.
Net interest income declined 8 percent during the quarter, to $288.0 million. Average loan volume for the quarter was essentially unchanged from the fourth quarter of 2012, at $72.2 billion.
Placing Taiwanese Swine Producers on the Same Page
Taiwan's swine industry consumes roughly 3.4 million metric tons of feed, or about 47 percent of the nation's total feed production. Taiwan produces only about one percent of the needed feed ingredients, so it is import dependent in grains. This makes Taiwan's swine industry an important export market for U.S. grains and co-products.
The provision of information by the U.S. Grains Council plays an important role in maintaining this market. Taiwan's swine industry lacks an adequate technical and institutional support structure to deal with industry problems. In addition, the new generation of swine producers are not yet familiar with the updated technology, equipment/facilities and production systems of hog production, and many do not fully appreciate the advantages of feeding U.S. grains.
With ever-increasing competition from other suppliers, the Council continues to assure Taiwan customers, including swine producers, of the quality and reliability of U.S. grains by providing timely and objective market information. This past month, the Council in Taiwan had the opportunity to discuss the findings of the 2013/2014 Corn Harvest Quality report with 40 swine producers, grain buyers and feed mill specialists at an industry conference jointly conducted with the National Animal Industry Foundation. The meeting – titled "Grain Market Information and Swine Industry Conference" – is held quarterly to introduce production, supply and demand of grains; and to discuss the current market situation of swine production with local producers.
The Council's Corn Harvest Quality Report -- a story of record production and high-quality -- promotes the United States as the world's most reliable long-term supplier of corn. Sharing these findings is a key step in building the Taiwanese swine industry's confidence in U.S. grains and sustaining this important export market for U.S. grains and co-products.
Agrium Profit Falls 72%
Agrium Inc., a major Canadian supplier of agriculture products, reported a 72% drop in fourth-quarter earnings as it continued to grapple with lower crop nutrient prices in its wholesale operations.
Calgary, Alberta-based Agrium had already warned that fourth-quarter results would be at the low end of its guidance due to lower-than-expected prices and potash sales volumes.
Agrium said it earned $99 million, or 74 cents a share, in its latest quarter, down from $354 million, or $2.36 a year earlier. Earnings from continuing operations fell to 74 cents a share from $2.36 a year earlier.
On an adjusted basis, to exclude items such as gains and losses related to its purchase of Viterra Inc. assets last year, Agrium said earnings from continuing operations would have been 87 cents a share. That is in line with the company's most recent guidance of 80 cents to $1.25 a share and a penny better than the 86 cents analysts polled by Thomson Reuters were expecting.
Overall sales fell to $2.87 billion from $3.09 billion, below the $2.98 billion analysts were expecting. Wholesale sales fell 24% to $963 million, while retail sales climbed 6% to a record $2.1 billion, helped by the addition of Viterra's Canadian retail assets, which it bought from Glencore International Inc. last October.
"Retail achieved record fourth quarter results due to increased margins across almost all shelves. Our Wholesale business unit, which has more direct exposure to volatility in nutrient markets, saw their results impacted by lower global prices across all nutrients," Chuck Magro, Agrium's president and chief executive, said in a statement.
"Global nitrogen and phosphate markets have firmed significantly in early 2014 in response to what we expect will be a strong spring season," he added.
Fertilizer companies like Agrium and Potash Corp. of Saskatchewan Inc. have seen profits hurt by an uncertain environment due to lower prices for potash and other ingredients used in crop nutrients. Potash prices in particular have taken a major hit since last summer after the dissolution of a trade partnership between Russian and Belarus potash producers.
Agrium last year successfully fended off a proxy battle with New York hedge fund Jana Partners LLC, which had been pushing for the company to split its retail business off from its fertilizer operation.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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