Northeast NE Cattlemen Meeting
Monday, February 13, 2023
6:00 p.m. social
7:00 p.m.. Prime Rib Dinner
Geno’s Steakhouse, 208 Douglas – Wayne
$45/person
Joel Bruns (402) 922-0112
Sean Christensen (402) 203-8631
Cuming Co Feeder Banquet
March 25 @ 6:00 pm - 8:30 pm
Nielsen Center, West Point
Burt Co Cattlemen Ladies Night
March 25 - 6:00 p.m.
Tekamah City Auditorium (1315 K St, Tekamah, NE 68061)
Washington Co Cattlemen Banquet
April 1, 2023 - 6:00 pm
Two Rivers arena. Washington Co Fairgrounds
Elkhorn Valley Cattlemen (EVCA) Banquet
Stanton Co Fairground
April 1 - 6:00 p.m.
Boone Nance Cattlemen Banquet
April 1 - 6:00 social
Boone Co Fairgrounds, Albion
Fischer, Wyden, Grassley, Tester Reintroduce Cattle Market Reform Bill
U.S. Senators Deb Fischer (R-Neb.), Ron Wyden (D-Ore.), Chuck Grassley (R-Iowa), and Jon Tester (D-Mont.) today introduced the bipartisan Cattle Price Discovery and Transparency Act of 2023.
The legislation would restore transparency and accountability in the cattle market by establishing regional cash minimums and equipping producers with more market information, including permanently authorizing a cattle contract library.
“I continue to hear from Nebraska family farmers and ranchers about the need for robust price discovery and transparency in our cattle markets. Support for our bill is stronger than ever, with a long list of cosponsors representing a diverse set of agricultural communities from across the country. I look forward to working with them all to build on the strong momentum we had last year,” said Senator Fischer, a member of the Senate Agriculture Committee.
"Family farmers and ranchers in Oregon are working hard to make a living and produce quality meat to feed families across America and the world. Yet, right now the system is working against them and is rigged in favor of big corporations. The cattle market desperately needs reform to level the playing field and give family farmers and ranchers a fair shot,” said Senator Wyden.
“Iowa cattle producers have struggled to receive a fair price for years – long before the massive market distortions cattle producers have endured most recently. It’s past time for Congress to stand with independent cattle producers and put an end to the cozy relationship between large meat packers and big cattle feedlots. I’m glad to again partner with Senators Fischer, Tester, Wyden and all of my colleagues to build on last year’s successes to advance our Cattle Price Discovery and Transparency Act,” said Senator Grassley, a member of the Senate Agriculture Committee.
“As a third generation farmer, I know people in Washington don’t understand the challenges Montana ranchers face. Right now, just four big packers control north of 80 percent of the beef industry, and that means those four companies can get together tomorrow and decide what they’re charging consumers and paying producers. I know this isn’t right and will take on these massive corporations and anyone back in Washington to make sure Montana families and ranchers get what they need,” said Senator Tester.
“We strongly support Sen. Fischer, the other sponsors, and the Senate Ag Committee for reintroducing this critical legislation. Nebraska livestock producers depend on markets that are healthy and function properly. When markets are not healthy, the folks who do the work, invest the capital, take the risk and drive our state’s economy get the short end of the stick. That is not only not fair to our livestock producers, it hurts our rural communities or our state. We thank Sen. Fischer and the Senate Agriculture Committee for their support for the ‘Cattle price discovery and Transparency Act’. We will continue to work with Sen. Fischer until this bill becomes law,” said Nebraska Farmers Union President John Hansen.
“Senator Fischer’s continuous work to address the complex price discovery and market transparency issues facing the beef cattle industry is greatly appreciated by Nebraska Cattlemen. We are grateful for her commitment to serve Nebraska’s cattle producers,” said Nebraska Cattlemen President Steve Hanson.
“The farm and ranch member families of the Nebraska Farm Bureau Federation once again stand firmly behind Nebraska Senator Deb Fischer’s efforts to provide more price discovery and transparency to the cattle marketplace. Nebraska is ‘The Beef State’ and Sen. Fischer’s tireless leadership trying to address the many challenges surrounding how cattle are marketed in the United States is vital to the economic future of our state. Now is the time to move this legislation through Congress and onto President Biden’s desk,” said Nebraska Farm Bureau Federation President Mark McHargue.
"USCA applauds Senators Fischer, Tester, Grassley, and Wyden for their commitment to U.S. cattle market reform. Restoring fair and competitive market practices is a goal that USCA shares with these champions for competition – and the producers in their states. This bill gives producers access to valuable information that can help them make better - and more profitable - marketing decisions. We welcome the reintroduction of the Cattle Price Discovery and Transparency Act in the 118th Session of Congress and look forward to advancing this bill to the President's desk,” said U.S. Cattlemen’s Association President Justin Tupper.
“We must preserve and promote the cash market as a competitive option for ranchers. The reintroduction of the Cattle Price Discovery and Transparency Act is another important step in Farmers Union’s efforts to seek more transparency and fairness in cattle markets. I want to thank Senator Fischer and the cosponsors for keeping up this fight,” said National Farmers Union President Rob Larew.
In addition to Sens. Fischer, Wyden, Grassley, and Tester, the legislation is cosponsored by U.S. Senators Joni Ernst (R-Iowa), Mike Braun (R-Ind.), Tina Smith (D-Minn.), Cindy Hyde-Smith (R-Miss.), Steve Daines (R-Mont.), Bill Cassidy (R-La.), Ben Ray Lujan (D-N.M.), Richard Durbin (D-Ill.), Martin Heinrich (D-N.M.), Raphael Warnock (D-Ga.), Richard Blumenthal (D-Conn.), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), Josh Hawley (R-Mo.), Sherrod Brown (R-Ohio), Mike Rounds (R-S.D.), John Kennedy (R-La.), and Pete Ricketts (R-Neb.).
11 of the cosponsors are members of the Senate Agriculture Committee.
Background:
Sens. Fischer, Wyden, Grassley, and Tester introduced the Cattle Price Discovery and Transparency Act last year. In June, the Senate Agriculture Committee approved the legislation, which passed by voice vote.
The Cattle Price Discovery and Transparency Act of 2023 will:
Require the Secretary of Agriculture to establish 5-7 regions encompassing the entire continental U.S. and then establish minimum levels of fed cattle purchases made through approved pricing mechanisms. Approved pricing mechanisms are fed cattle purchases made through negotiated cash, negotiated grid, at a stockyard, and through trading systems that multiple buyers and sellers regularly can make and accept bids. These pricing mechanisms will ensure robust price discovery and are transparent.
Establish a maximum penalty for covered packers of $90,000 for mandatory minimum violations. Covered packers are defined as those packers that during the immediately preceding five years have slaughtered five percent or more of the number of fed cattle nationally.
Create a publicly available library of marketing contracts, mandating box beef reporting to ensure transparency, expediting the reporting of cattle carcass weights, and requiring a packer to report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days. The contract library would be permanently authorized and specify key details about the contents that must be included in the library like the duration of the contract and provisions in the contract that may impact price such as schedules, premiums and discounts, and transportation arrangements.
Fischer Discusses Mexico’s Misguided, Unscientific Effort to Ban Genetically Modified Corn
At a Senate Agriculture Committee hearing Wednesday, U.S. Senator Deb Fischer (R-Neb.) questioned a senior official from the U.S. Department of Agriculture (USDA) about ongoing negotiations to push back against Mexico’s proposed ban on genetically modified corn.
Sen. Fischer has been raising concerns about this issue for months. In December, Sen. Fischer led a letter to USDA and the U.S. Trade Representative (USTR) opposing Mexico’s ban and urging the Biden administration to consider all options available to hold Mexico to their trade commitments, including possible enforcement under the United States-Mexico-Canada Agreement (USMCA).
During the hearing, Sen. Fischer also urged USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor to advocate for market access provisions, especially for agriculture, to be included under the Indo-Pacific Economic Framework (IPEF), an economic initiative launched by President Biden on May 23, 2022.
Governor Pillen Temporarily Waives Regulations for Truckers Hauling Critically Needed Fuels
Today, Governor Jim Pillen issued Executive Order 23-03 to provide emergency relief in response to regional fuel shortages. The order temporarily allows drivers to work extended hours to haul gasoline or gasoline blends, diesel, fuel oil, ethanol, propane, and biodiesel.
The Governor’s order will help reduce delays at petroleum product terminals, facilitating timely delivery of fuels to consumers. It is effective immediately and will remain in effect through February 28, 2023.
Registration Open for 2023 Eastern Nebraska Soil Health Conference
Registration is open for the 2023 Eastern Nebraska Soil Health Conference, formerly known as the Nebraska Cover Crop Conference. The event will take place on Thursday, February 9, at the Eastern Nebraska Research, Extension and Education Center near Mead.
This annual conference features speakers who will share their experiences with a variety of soil health practices. Topics will include cover crops, diversifying crop rotations, biochar and other regenerative practices.
The conference will take place from 9 a.m. to 3:15 p.m., with check-in starting at 8:30 a.m. All sessions will be held at the August N. Christenson Center at 1071 County Road G in Ithaca.
Presenters and topics include:
Moving forward requires looking backwards: Benefits of re-diversifying crop rotations in the Midwest - Marshall McDaniel, Iowa State University
Interseeding cover crops into early-season corn and soybean - Farmer panel with Chad Dane (Clay County) and Jay Goertzen (York County) moderated by Jenny Rees, Nebraska Extension Educator
Practical tips for selecting and grazing forage cover crops - Mary Drewnoski, UNL Beef Systems Specialist
Nebraska farmer perspectives on diverse crop rotations and intensification - Farmer panel with Angela Knuth (Saunders County), Garret Ruskamp (Cuming County), Kyle Riesen (Jefferson County), and Haldon Fugate (Gage County) moderated by Nathan Mueller, Nebraska Extension Educator
Emerging topics in soil health
(1.) Biochar and its potential as a soil amendment – Britt Fossum, UNL Graduate Student
(2) Opportunities for the perennial grain Kernza® - What it is and how it is grown - Roberta Rebesquini, UNL Graduate Student
(3.) What’s new in the cover crop industry - Davis Behle, Green Cover Seed
Pre-registration is required by February 4 and can be done at https://enrec.unl.edu/nebraska-cover-crop-conference/. There is no fee to attend, and CCA credits are applied for and pending.
The event is sponsored by Nebraska Extension and the Nebraska Soybean Board.
For more information, contact Nebraska Extension Educators: Katja Koehler-Cole at 402-504-1016 or kkoehlercole2@unl.edu; Nathan Mueller at 402-821-2151 or nathan.mueller@unl.edu; Aaron Nygren at 402-624-8030 or anygren2@unl.edu; Todd Whitney at 308-995-4222 or todd.whitney@unl.edu; and Caro Córdova at 402-472-6292 or ccordova4@unl.edu.
Head of the UNL Department of Animal Science Applications Open
The Institute of Agriculture and Natural Resources (IANR) at the University of Nebraska-Lincoln invites nominations and applications for the position of Head of the Department of Animal Science. IANR is seeking an innovative, dynamic, and collaborative person who will provide intellectual and strategic leadership for 46 faculty and 43 staff members, and 80 graduate and 320 undergraduate students in the department. We are looking for a strong leader who will help us meet our commitment to discovery, training, instruction, and outreach in key areas of animal biology that impacts food, equine, and companion animals and reflects a contemporary view of agri-food systems. The successful department head will be one who puts the success of the team and department above their individual accomplishments in the role. They must be one who appreciates interdisciplinary, experiential, and systems-based learning. The incumbent will be committed to meeting the grand challenges related to sustainability of beef, dairy, swine, and poultry systems for high-quality animal-sourced foods to meet the increasing demand by a growing population of consumers. The successful candidate will be committed to excellence throughout the discovery-to-practice continuum for genetics, reproduction, physiology, nutrition, meats, animal wellbeing, and precision management. The incumbent will be a collaborative and inspiring department head who will hold fast to the university’s core values of accountability, diversity, integrity, respect, and social responsibility.
Recognizing that diversity enhances creativity, innovation, impact, and belongingness, IANR and the Department of Animal Science are committed to creating research, learning, Extension programming, and work environments that are inclusive of all forms of diversity. Every person and every interaction are treated as important to our collective wellbeing and our ability to deliver on our mission.
The department head will be appointed to a five-year renewable term, subject to satisfactory annual reviews and a formal reappointment review. Find more information here: https://ianr.unl.edu/head-department-animal-science.
CattleFax Forecasts Producer Profitability in 2023 with Potential Drought Relief for the West
The popular CattleFax Outlook Seminar, held as part of the 2023 Cattle Industry Convention and NCBA Trade Show in New Orleans, shared expert market and weather analysis today.
Prices and profitability will again favor cattle producers in 2023. The cattle industry is entering 2023 with the smallest cattle supply since 2015 as drought caused the industry to dig deeper into the supply of feeder cattle and calves. While the exact path to drought relief is unknown, improvements are also expected to translate to moderating feed costs, especially in the second half of 2023. Combined with increased cattle prices, cattle producers, especially the cow-calf operator, will continue to see an improvement in margins for the next several years, according to CattleFax.
Meteorologist Matt Makens said the latest forecast for La Niña has only a 14% probability of existence this spring and down further by the summer, which means a pattern change comes our way this year. A neutral phase will take control of the pattern as La Niña weakens and may last several months before giving El Niño a chance to grow this summer and into the fall.
Makens said putting this latest La Niña episode in the review mirror suggests improving drought conditions, more favorable growing seasons and healthier soils.
“I’m not trying to imply that doing away with La Niña fixes everything. An El Niño can cause drought across the northern states. There is no win-win for everyone in any weather pattern,” Makens added. “But moisture conditions should improve for the West in the second half of this year.”
Kevin Good, vice president of industry relations and analysis at CattleFax, reported that U.S. beef cow cattle inventories have already fallen 1.5 million head from cycle highs. The 2023 beef cow herd is expected to be down about another million head to nearly 29.2 million.
“Drought affected nearly half of the beef cow herd over the last year, exacerbating the liquidation in 2022. Drought improvement and higher cattle prices should drastically slow beef cow culling through 2023,” Good said.
Feeder cattle and calf supplies outside of feedyards will be 400,000 to 450,000 head smaller than 2022 at 25.1 million. After being full for most of the past three years, cattle on feed inventories are expected to begin 2023 at 300,000 to 400,000 head below last year, at 14.3 million head, and remain smaller. Commercial fed slaughter in 2023 is forecast to decline by 750,000 to 800,000 to 25.6 million head.
“With drought forced placement and culling, beef production was record large in 2022 at 28.3 billion pounds. Expect production to drop over the next several years – declining 4% to 5% in 2023 to 27 billion pounds,” Good said. “The decline in production in 2023 will lead to a 2.2-pound decline in net beef supply to 57 pounds per person.”
Good forecast the average 2023 fed steer price at $158/cwt., up $13/cwt. from 2022, with a range of $150 to $172/cwt. throughout the year. All cattle classes are expected to trade higher, and prices are expected to continue to trend upward. The 800-lb. steer price is expected to average $195/cwt. with a range of $175 to $215/cwt., and the 550-lb. steer price is expected to average $225/cwt., with a range of $200 to $245/cwt. Finally, Good forecast utility cows at an average of $100/cwt. with a range of $75 to $115/cwt., and bred cows at an average of $2,100/cwt. with a range of $1,900 to $2,300 for load lots of quality, running-age cows.
When looking at domestic beef demand, the U.S. economy will be a driving factor going in 2023. CattleFax said inflation, rising interest rates and general economic uncertainty will continue to impact consumer purchasing decisions as many look to limit spending. Inflation reached a 40-year high in 2022, triggering the U.S. Federal Reserve to raise interest rates seven times last year with intentions for further rate increases until inflation falls. Through the Federal Reserve hopes to accomplish a “soft landing” and avoid recession, the U.S. economy is expected to slow in 2023 with most economists calling for a mild recession in the second half of the year.
Good noted that though beef demand has softened, it remains historically strong, and consumers have shown willingness to continue to buy beef in a new and higher range. He expects the 2023 USDA All-Fresh Retail Beef prices to average $7.35/pound, up 4 cents from 2022.
He also said wholesale demand will appear to be softer, as prices will not go up at the same rate of inflation despite tighter supplies. The cutout value should move higher to average $270/cwt. for 2023.
Global protein demand has continued to rise around the world and tighter global protein supplies should broadly support prices in 2023. After more than 20% of growth across the last two years, U.S. beef exports are expected to moderate, declining 3% in 2023 to 3.5 billion pounds. Japan and South Korea remain the top U.S. beef export destinations with stable exports in 2022. Meanwhile, Chinese demand has continued to grow with tonnage up 20% last year, likely with continued room to grow.
Mike Murphy, CattleFax vice president of research and risk management services, said National Dec. 1 on-farm hay stock were down 9% from a year-ago at 71.9 million tons with hay prices averaging $216/ton in 2022.
“Last year was the smallest U.S. hay production year since 1959,” Murphy said. “Hay prices will likely continue to be high in the first part of 2023, but we expect weather patterns to improve pasture conditions as early as this spring which should help stabilize and soften hay prices throughout 2023.”
CattleFax said corn stocks-to-use are just under 9% and will continue to support the market above $6/bu., and provide resistance near $7.50/bu. into the summer with a yearly average price of $6.50/bu. expected.
Blach concluded the session with an overall positive outlook, expecting improvements in the weather pattern and a tighter supply to distribute more money though all sectors of the cattle industry.
2022 Ends with No DMC Payments; 2023 May Be Different
NMPF
The December Dairy Margin Coverage margin was $9.76/cwt, down $1.13/cwt from the month before but still above the $9.50/cwt threshold for federal payments at the highest insurance level. Much of this decline was contributed by a $0.90/cwt fall in the U.S. average all-milk price, to $24.70/cwt. The DMC December feed cost rose $0.23/cwt from November, on higher corn and soybean meal prices.
The DMC margin fell below the highest coverage level of $9.50/cwt during just two months of 2022, as record high feed costs were generally topped by record high milk prices. This year’s outlook is very different, with the DMC margin currently projected to fall below $9.50/cwt every month until sometime next fall and to average around $8.00/cwt for the year.
CWT Supports 138.2 Million Pounds of Dairy Exports in 2022
Year-end tallies indicate that Cooperatives Working Together (CWT)-assisted sales rose in 2022, as the program did its part in supporting a record year for U.S. dairy exports.
Member cooperatives in 2022 secured 695 contracts, adding 98.0 million pounds of American-type cheeses, 657,000 pounds of butter, 30.7 million pounds of whole milk powder and 8.8 million pounds of cream cheese to CWT-assisted sales. In milk equivalent, this is equal to 1.212 billion pounds of milk on a milkfat basis. On a product volume basis, this is equal to 138.2 million pounds – up 6% (+7.9 million pounds) from 2021. Product destinations include Asia, Central America, the Caribbean, Europe, Middle East-North Africa, Oceania, and South America.
CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages supporting dairy-product exports critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential.
USDA Announces February 2023 Lending Rates for Agricultural Producers
The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2023, which are effective Feb. 1, 2023. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.
Operating, Ownership and Emergency Loans
FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine. For many loan options, FSA sets aside funding for underserved producers, including veterans, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers
Interest rates for Operating and Ownership loans for February 2023 are as follows:
Farm Operating Loans (Direct): 4.750%
Farm Ownership Loans (Direct): 4.750%
Farm Ownership Loans (Direct, Joint Financing): 2.750%
Farm Ownership Loans (Down Payment): 1.500%
Emergency Loan (Amount of Actual Loss): 3.750 %
FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.
To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.
Commodity and Storage Facility Loans
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low. Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.
Commodity Loans (less than one year disbursed): 5.750%
Farm Storage Facility Loans:
Three-year loan terms: 4.000%
Five-year loan terms: 3.750%
Seven-year loan terms: 3.750%
Ten-year loan terms: 3.625%
Twelve-year loan terms: 3.750%
Sugar Storage Facility Loans (15 years): 3.875%
Pandemic and Disaster Support
FSA broadened the use of the Disaster Set Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to 12 months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. Use of the expanded DSA program can help to improve a borrower’s cashflow in the current production cycle.
FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.
Inflation Reduction Act Assistance for Distressed Producers
On Aug. 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. Section 22006 of the IRA provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. USDA has allocated up to $1.3 billion for initial steps to help these distressed borrowers. This includes both automatic and case-by-case assistance. For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.
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