Friday February 25 Cattle on Feed Report + Ag News

NEBRASKA CATTLE ON FEED UP 2%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.66 million cattle on feed on February 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 2% from last year.  Placements during January totaled 535,000 head, unchanged from 2021.  Fed cattle marketings for the month of January totaled 460,000 head, down 1% from last year.  Other disappearance during January totaled 15,000 head, up 5,000 head from last year.

IOWA CATTLE ON FEED UP 2 PERCENT
Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 610,000 head on February 1, 2022, according to the latest USDA, National Agricultural Statistics Service - Cattle on Feed report. This was up 2 percent from January but down 2 percent from February 1, 2021. Iowa feedlots with a capacity of less than 1,000 head had 585,000 head on feed, up 3 percent from last month and up 3 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,195,000 head, up 2 percent from last month and up slightly from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during January 2022 totaled 110,000 head, up 29 percent from December but unchanged from January 2021. Feedlots with a capacity of less than 1,000 head placed 85,000 head, up 37 percent from December and up 39 percent from January 2021. Placements for all feedlots in Iowa totaled 195,000 head, up 33 percent from December and up 14 percent from January 2021.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during January 2022 totaled 98,000 head, up 7 percent from December but unchanged from January 2021. Feedlots with a capacity of less than 1,000 head marketed 63,000 head, up 110 percent from December and up 40 percent from January 2021. Marketings for all feedlots in Iowa were 161,000 head, up 32 percent from December and up 13 percent from January 2021. Other disappearance from all feedlots in Iowa totaled 9,000 head.

United States Cattle on Feed Up 1 Percent
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.2 million head on February 1, 2022. The inventory was 1 percent above February 1, 2021. This is the highest February 1 inventory since the series began in 1996.

On Feed, by State (1,000 hd - % Feb 1 '21)
Colorado ......:              1,140          102                
Iowa .............:                610            98                  
Kansas ..........:              2,540          101               
Nebraska ......:              2,660          102               
Texas ............:              2,940          101           

Placements in feedlots during January totaled 2.00 million head, 1 percent below 2021. Net placements were 1.94 million head. During January, placements of cattle and calves weighing less than 600 pounds were 420,000 head, 600-699 pounds were 445,000 head, 700-799 pounds were 545,000 head, 800-899 pounds were 414,000 head, 900-999 pounds were 105,000 head, and 1,000 pounds and greater were 70,000 head.

Placements, by State  (1,000 hd - % Jan '21)
Colorado ......:                      200           103                 
Iowa .............:                     110           100                 
Kansas ..........:                     480           100                 
Nebraska ......:                     535           100                 
Texas ............:                     390            96                 

Marketings of fed cattle during January totaled 1.77 million head, 3 percent below 2021.  Other disappearance totaled 64,000 head during January, 14 percent above 2021.

Marketings, by State  (1,000 hd - % Jan '21)
Colorado ......:                  185           103               
Iowa .............:                  98           100               
Kansas ..........:                  420            93                
Nebraska ......:                  460            99                
Texas ............:                 355           101             

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 81.9 percent of all cattle and calves on feed in the United States on January 1, 2022. This is comparable to the 81.6 percent on January 1, 2021.

Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2021 represented 87.2 percent of total cattle marketed from all feedlots in the United States, up slightly from 87.0 percent during 2020.



USDA Issues a Complaint Against Bruce Camenzind for Alleged Violations of the Packers and Stockyards Act

The U.S. Department of Agriculture (USDA) issued an administrative complaint against Bruce Camenzind (Camenzind), doing business as Clarence E. Camenzind Funnel Trust, BK Farms, and Dixon Ranch in Blair, Neb., on Jan. 25, 2022, for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that from June through October 2019, Camenzind operated as a livestock dealer, purchasing 178 head of livestock valued at $133,947 and selling 218 head of livestock valued at $125,313 without maintaining bond coverage.

In addition, the investigation revealed that in four of these transactions, Camenzind issued checks for $36,751 that were returned unpaid or denied by the bank because Respondent failed to maintain sufficient funds when presented.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted or proven in an oral hearing, Saavedra may be ordered to cease and desist from continuing violations of the P&S Act and assessed a civil penalty.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.



NC Calls for Beef Drafts to be Cashed

Nebraska Cattlemen requests those who have received a beef draft during the 2021 Nebraska State Fair to use the draft as soon as possible. Beef drafts will no longer be honored after May 1st, 2022.  All beef drafts can be used at grocery stores for beef purchases or at restaurants while enjoying a beef meal.

During Labor Day weekend at the Nebraska State Fair, Nebraska Cattlemen hands out beef drafts to honor veterans and active-duty service members. The gift certificates are purchased with funds through the Nebraska Cattlemen’s Beef for Troops program.

Nebraska Cattlemen members and affiliates have supported this program for several years. The Farmer Stockman Council looks forward to continuing the Veteran’s Day recognition during the 2022 Nebraska State Fair.



Iowa Beef Producers Assume National Leadership Positions

Beef producers, advocates, students and organizations from across the country convened to discuss industry topics such as beef demand trends, international trade, and Beef Checkoff Contractor updates during the Cattle Industry Convention held Feb. 1-3, 2022, in Houston. Nine producer leaders from Iowa attended, representing the Iowa Beef Industry Council while serving in various capacities of leadership on the Federation of State Beef Councils and the Cattlemen’s Beef Board (CBB).

Janine Moore of What Cheer, Iowa, was nominated and successfully elected to serve as the Federation of State Beef Council’s Region III Vice President. Janine will act as a regional liaison to the Federation of State Beef Councils on behalf of qualified state beef councils from Illinois, Iowa, Minnesota, Missouri and Wisconsin.

The vision of the Federation of State Beef Councils, a division of the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, is to build beef demand by inspiring, unifying and supporting an effective state and national Beef Checkoff partnership. It provides a voice and performance vehicle by which producers and qualified state beef councils (QSBCs) collectively influence and give direction to the Beef Checkoff.

Among other duties, the Regional Vice President works closely with state beef councils, coordinates regional activities, facilitates Federation Division regional elections and champions Checkoff efforts within the region, especially state beef council engagement in the Federation.

Janine’s leadership will be instrumental in helping Iowans remain apprised of the most current Beef Checkoff promotions. It’s important that the diversity of Midwestern producers is represented in beef promotional activities. Janine’s newly appointed position presents a great opportunity for Iowans and other Midwestern state, who share a similar size and scope of operations, to strengthen our voice at the decision-making table.

Furthermore, Iowa continues to have a strong delegation of representatives on the Cattlemen’s Beef Board. CBB serves as the Beef Checkoff mothership and administers authorization requests to contracts each year. CBB representatives are selected from each state by the U.S. Secretary of Agriculture. We want to thank Stephanie Dykshorn of Ireton, Iowa, for her time in leadership as her term has now come to completion. Madrid beef producer, David Bruene, was appointed for a second, three-year term while Mike Holden, of Scranton, was selected as a new representative. Ross Havens of Wiota and Jenni Peters of Bellevue also represent Iowans within CBB.



Market Outlook Resources Available for Iowa's Crop and Livestock Producers

Crop and livestock producers can get a look at where markets are headed in the February edition of the Ag Decision Maker https://www.extension.iastate.edu/agdm/.

A wealth of resources are available, including an article by Chad Hart, professor in economics and extension grain markets specialist at Iowa State, on how the South American drought is impacting crop production; and an article by Lee Schulz, associate professor in economics and livestock economist at Iowa State, on the expansion of Iowa’s beef herd. (Note: The articles were written prior to the military escalation by Russia, which has and will have significant implications for agricultural markets; in general, boosting crop futures prices and lowering livestock futures prices.)

Information files on livestock basis levels in Iowa, and historical livestock prices, are also available.

The United States Department of Agriculture shows additional downward movement on South American crop production, according to the February report, and crop prices are rising.

Futures prices show strength well into 2024, with corn futures above $5 and soybean futures above $12.50. While crop prices have remained strong enough to cover inputs and provide some solid profit opportunities, Hart said producers should remember what happened back in 2013.

“This situation reminds me a lot of the 2013 marketing year, when we began the year with strong prices and profit windows, but we ended the year with lower prices and challenging returns,” he said. “While I hope we do not repeat that, it is a good reminder that now is a great time to put a marketing plan in place to capture and protect the healthy returns markets are offering.”

In his article titled “Iowa’s beef cow herd is off and running,” Schulz says Iowa now ranks 10th in beef cows, up from 13th a year ago. The state’s 925,000 beef cows is an increase of 65,000 head from last year – the largest gain of any state. Idaho rose 34,000 head and Minnesota grew by 25,000.

“The beef cow herd is the foundation of the total cattle inventory and Iowa appears to be leading the national herd by about two years in the current cattle cycle,” according to Schulz.

Schulz says producers can use knowledge of the cattle cycle to improve profitability on their farms, if they do two basic things. First, buy low and sell high, and secondly, find out what other producers are doing, and do something different. Obviously, these are more easily said than done.

The livestock market outlook article and information files examine current and historical inventories, price projections and planning information.



Swine Production Seminar Set in Northwest Iowa

Pork producers in northwest Iowa are invited to attend a one-day swine production seminar on March 30 in Okoboji. The program is sponsored by Iowa State University Extension and Outreach, University of Minnesota Extension, Hubbard Feeds and Elanco.

Iowa State Extension swine program specialist Dave Stender said the program is geared toward pork operation decision-makers including owners and managers. He will assist with hosting the program that runs from 10 a.m. to 3 p.m. at the Arrowwood Resort Conference Center, 1405 Hwy 71, Okoboji. Registration begins at 9:30 a.m. and lunch will be provided.

There’s no cost and although no preregistration is required, please call Stender for a lunch count at 712-225-6196.

“Regardless of the type of operation, if you’re involved in making decisions on your farm, you’ll want to attend this program,” Stender said.

Primary topics are herd health, industry insights, market outlook and production practices.  Speakers are Jon Greteman of CIH, Dan Hamilton of PIC, Orlando Gil of TCTS Global, Chris Rademacher of Iowa State and Andy “Caygeon” Junkin of Agriculture Strategy.



SHIC Announces New Associate Director Megan Niederwerder

The Swine Health Information Center (SHIC) is pleased to announce Megan Niederwerder, DVM, PhD, has been chosen for the new role of associate director. Most recently an assistant professor in the Department of Diagnostic Medicine/Pathobiology, College of Veterinary Medicine at Kansas State University, Niederwerder has an expected start date of April 1 with SHIC. “The SHIC mission is consistent with my professional goals of increasing the efficiency of pork production through improving swine health,” Niederwerder commented. “It is an honor to be named the first associate director and I look forward to contributing to the breadth of swine health and disease objectives led by SHIC for the industry.”

In November 2021, the National Pork Board (NPB) Board of Directors provided an additional $15 million to fund the SHIC for another five-year period, through 2027. Subsequent to this extension, the SHIC Board of Directors approved adding the role of associate director for the organization. “The addition of Megan as associate director will help to make SHIC even more impactful and able to meet the needs of pork producers,” remarked SHIC Executive Director Paul Sundberg, DVM, PhD, DACVPM. “We’ll be able to multiply return-on-investment results as SHIC remains faithful to its mission to protect the health of the US swine herd through comprehensive preparedness, monitoring, response, and communications activities.”

Specifically, Niederwerder will assist Sundberg in directing overall expectations and accountability as well as ensuring quality programs and services. This includes collaborating to provide oversight and implementation of the Center’s budget, long range planning, and strategic initiatives. Additionally, Niederwerder will interact closely with the pork community, assisting efforts to build awareness of SHIC, establish and maintain working relationships in the pork industry, and successfully meet the Center’s mission.

“SHIC continues to deliver beyond expectations to the swine industry,” stated Daryl Olsen, DVM, chair of the SHIC Board of Directors. “As the scope of our efforts in prevention, preparedness, and response to emerging and potential foreign swine disease issues grows, so does our need for qualified leadership for the organization. Megan will be an outstanding addition to SHIC with her experience, passion, and knowledge.”

After earning her veterinary degree at Kansas State University, Niederwerder was in clinical practice for three years. Upon her return to Kansas State, she obtained her PhD in infectious diseases of swine, including research projects involving porcine reproductive and respiratory syndrome virus, porcine circovirus type 2, and porcine epidemic diarrhea virus. “My dissertation research as a veterinarian scientist was related to the clinical response of swine to viral diseases,” she explained. “I developed a passion for the health and prevention of disease in swine as well as productivity of the US pork industry.”

During her time as a faculty member in academia, Niederwerder led an internationally renowned research program on viral diseases of swine with focus areas on the risk and mitigation of African swine fever virus introduction through feed and the use of the gut microbiome as an alternative tool for porcine respiratory disease. “I see improvements in swine health to be two-fold, including increasing the health of swine with endemic disease exposure and decreasing the risk of foreign animal disease exposure,” Niederwerder said.

“SHIC is well-positioned to lead the generation of novel swine health data, be the foremost global swine disease news source, and address challenges to swine health with creative solutions for stakeholders,” Niederwerder concluded. “I look forward to advancing the SHIC mission through the role of associate director and working with Paul, the SHIC Board of Directors, and the SHIC Working Groups to serve the needs of US pork producers.”



January Egg Production Up 1 Percent

United States egg production totaled 9.59 billion during January 2022, up 1 percent from last year. Production included 8.29 billion table eggs, and 1.31 billion hatching eggs, of which 1.22 billion were broiler-type and 89.7 million were egg-type. The total number of layers during January 2022 averaged 391 million, down 1 percent from last year. January egg production per 100 layers was 2,452 eggs, up 2 percent from January 2021.
                                    
All layers in the United States on February 1, 2022 totaled 390 million, down 1 percent from last year. The 390 million layers consisted of 323 million layers producing table or market type eggs, 63.6 million layers producing broiler-type hatching eggs, and 3.56 million layers producing egg-type hatching eggs. Rate of lay per day on February 1, 2022, averaged 78.9 eggs per 100 layers, up 2 percent from February 1, 2021.

NEBRASKA CHICKENS AND EGGS
All layers in Nebraska during January 2022 totaled 8.40 million, up from 8.20 million the previous year, according to the USDA's National Agricultural Statistics Service. Nebraska egg production during January totaled 210 million eggs, up from 204 million in 2021. January egg production per 100 layers was 2,497 eggs, compared to 2,482 eggs in 2021.

Iowa egg production during January 2022 was 1.22 billion eggs, down 4 percent from last month and down 4 percent from last year, according to the latest Chickens and Eggs report from the USDA's National Agricultural Statistics Service.  The average number of all layers on hand during January 2022 was 47.3 million, down 3 percent from last month and down 3 percent from the same month last year. Eggs per 100 layers for January were 2,586, down 1 percent from last month and down slightly from last January.



Researchers Developing New Vaccine for Piglet Killer PEDV

To address climbing economic losses from swine that contract the porcine epidemic diarrhea virus, Virginia Tech researchers in the College of Agriculture and Life Sciences and Virginia-Maryland College of Veterinary Medicine are developing a vaccine to combat the disease that has a near 100 percent mortality rate in newborn piglets.

The disease emerged in the United States in 2013 and has since caused around $600 million in annual losses to swine producers. When combined with increased food prices for consumers and decreased exports of hogs, the associated loss amounts to more than $900 million annually in the U.S.

While there are two commercially available vaccines for the virus commonly known as PEDv, neither are effective in preventing the disease. Mike Zhang, the principal investigator of the project and a professor in the Department of Biological Systems Engineering and Turner Faculty Fellow, saw the urgency for an effective vaccine against this virus.

With a four-year, $630,000 grant from the USDA National Institute of Food and Agriculture, Zhang and co-principal investigator X.J. Meng, a University Distinguished Professor of molecular virology in the Virginia-Maryland College of Veterinary Medicine, are researching a nanoparticle-based vaccine to curb this highly contagious coronavirus among swine.

Because of PEDv being in the coronavirus family, the researchers hope to gain knowledge and insight in order to swiftly produce vaccines against human coronaviruses and their variants.

"This project will give us the opportunity not only to development a vaccine for swine, but gain insight into coronaviruses," Zhang said. "While the viruses are different from each other, they share a lot of similarities. A lot of things that we learn from this project can be used to develop vaccines against human coronaviruses in the future."

Meng, also a professor of internal medicine at the Virginia Tech Carilion School of Medicine, the director of the Center for Emerging, Zoonotic, and Arthropod-borne Pathogens, and the interim director of the Fralin Life Sciences Institute, lent his help with his renowned knowledge as a virologist.

"PEDv is one of the most devastating illnesses in the swine industry," Zhang said. "Right now, we don't have a good mitigation method. We want a safe and reliable tool in the arsenal of those in industry and our research will lead to that."

Over the last few years, vaccine development has targeted a safer, more effective way to deliver an immune response. So far, that target has landed on nanoparticle-based vaccines, to safely deliver a strong immune response in hosts to protect against disease.



First Load of Tariff-Free U.S. Wheat Arrives in Vietnam

Following productive talks with the United States last year, the Vietnamese government eliminated a three percent U.S. wheat import tariff on Dec. 30, 2021. On Feb. 6, 2022, the first shipment of U.S. wheat purchased without a tariff arrived at port in Ho Chi Minh City carrying more than 68,350 metric tons of soft white and hard red spring wheat grown in the Pacific Northwest and Northern Plains.

“With the import tariff reduced to zero, the Vietnamese buyer saved almost $1 million on this vessel load of U.S. wheat alone,” said Robert Hanson, Agricultural Counselor, USDA Foreign Agricultural Service, Hanoi. “We thank the Vietnam government for ending the tariff, a decision that will hold the line on food costs and help make U.S. wheat more competitive in Vietnam’s growing market.”

“The Foreign Agricultural Service worked hard to cut this barrier and level the playing field for U.S. wheat in Vietnam,” said Vince Peterson, President, U.S. Wheat Associates (USW). “Vietnam first reduced the U.S. wheat import tariff from five percent to three percent in July 2020. The talks continued until Vietnam published the final decree, and USDA and U.S. Trade Representative Katherine Tai announced in November 2021 that the tariff would be eliminated.”

Vietnam imports an average of about four million metric tons of wheat per year. Australia and Canada are large wheat suppliers to Vietnam and had enjoyed duty-free access to Vietnam for many years under regional trade agreements.

However, even with the applied U.S. wheat import tariff, Vietnamese millers doubled U.S. import volume to more than 520,000 metric tons between 2015 and 2021. In addition to soft white and hard red spring wheat, Vietnam imported U.S. hard red winter and soft red winter wheat in 2021. That returned about $130 million to U.S. farmers and the wheat supply industry.

“Eliminating the U.S. wheat import tariff came at the right time for Vietnam given the run up in U.S. and global wheat prices,” said Peterson. “We will keep helping Vietnamese customers gain more value with the U.S. wheat supplies needed to meet the growing demand there for better quality wheat foods.”