Sunday, October 11, 2020

Weekend Ag News Roundup - October 10

Celebrate Pork Month
John Csukker, President, Nebraska Pork Producers Association


You’ve waited all year and it’s finally here. An entire month dedicated to tender, juicy, delicious pork! October is National Pork Month, so join me and the 1500 pork farmers across Nebraska in celebrating.

“If you have eaten a slice of bacon, pork chop or pulled pork smothered in barbeque sauce, you have a connection to a pork farmer.” Nebraska’s pig farmers recognize that consumers have a growing interest in understanding where pork comes from and how it is produced. Now more than ever, we have access to many tools and resources to better care for our animals and meet consumer demand.

Pork is the worlds’ most widely eaten meat, ahead of chicken and beef.  In Nebraska we have more pigs than in the past 20 years. This growth means we are positively affecting our local economies.  We are proud to add $1.14 billion of value to our gross state product. With 1-in-4 jobs coming from agriculture, we know that we play a valuable role in this area.

The pork industry is committed to managing operations in the most environmentally responsible way possible. Conservation, recycling, land management, water quality, air quality and manure management are areas of priority for pig farmers for continuous improvement. Safeguarding the environment comes naturally to Nebraska’s pork producers because they understand their inherent responsibility to future generations.

COVID-19 presented a number of challenges in 2020 to our industry that we hope to never see again. Our farmers met each one with courage and determination. Through it all they succeeded in doing what they do best for their family, animals, employees and community by donating over 10,000 pounds of pork to neighbors in need through our “Pork Cares” project.

October is Pork Month and it is a time when we celebrate and remember all the hard-working farm families that are there every day of the year so we can all enjoy a safe, sustainable, affordable, and yes, a ‘tasty’ food we call pork!



NEBRASKA CROP PRODUCTION REPORT


Based on October 1 conditions, Nebraska's 2020 corn production is forecast at 1.84 billion bushels, up 3% from last year's production, according to the USDA's National Agricultural Statistics Service. Area to be harvested for grain, at 9.83 million acres, is up slightly from a year ago. Yield is forecast at 187 bushels per acre, up 5 bushels from last year.

Sorghum for grain is forecast at 12.0 million bushels, down 1% from last year. Area for harvest, at 135,000 acres, is up 4% from 2019. Yield is forecast at 89 bushels per acre, down 4 bushels from last year.

Soybean production is forecast at 309 million bushels, up 9% from last year. Area for harvest, at 5.15 million acres, is up 6% from 2019. Yield is forecast at 60 bushels per acre, up 1.5 bushels from last year.
 
Alfalfa hay production, at 3.78 million tons, is up 5% from last year. Area for harvest, at 970,000 acres, is up 2% from a year ago. Yield of 3.90 tons per acre is up 0.10 ton from 2019. All other hay production, at 2.21 million tons, is down 11% from last year. Area for harvest, at 1.70 million acres, is up 13% from a year ago. Yield of 1.30 tons per acre is down 0.35 ton from 2019.

Dry edible bean production is forecast at 3.49 million cwt, up 85% from 2019. Area for harvest, at 149,000 acres, is up 54% from last year. Yield is estimated at 2,340 pounds, up 400 pounds per acre from last year.

Sugarbeet production is forecast at 1.40 million tons, up 31% from 2019. Area for harvest, at 45,800 acres, is up 9% from last year. Yield is estimated at 30.6 tons per acre, up 5.2 tons per acre from a year ago.

All sunflower production is forecast at 68.1 million pounds, up 52% from last year. Acreage for harvest, at 47,000 acres, is up 12,500 acres from 2019. Yield is forecast at 1,450 pounds per acre, up 150 pounds per acre from a year ago. Of the acres for harvest, non-oil sunflowers account for 9,000 acres and oil sunflowers account for 38,000 acres.



IOWA CROP PRODUCTION


Iowa corn production is forecast at 2.36 billion bushels according to the latest USDA, National Agricultural Statistics Service – Crop Production report. Based on conditions as of October 1, yields are expected to average 186 bushels per acre, down 5 bushels per acre from the September 1 forecast, and 12 bushels per acre lower than last year. Corn planted acreage is estimated at 13.7 million acres. An estimated 12.7 million of the acres planted will be harvested for grain. Acreage updates were made based on a thorough review of all available data.

Soybean production is forecast at 522 million bushels. The yield is forecast at 56.0 bushels per acre, up 2.0 bushels per acre from the September 1 forecast, and 1.0 bushel per acre higher than 2019. Soybean planted acreage is estimated at 9.40 million acres with 9.32 million acres to be harvested.

Production of alfalfa and alfalfa mixtures for hay is forecast at 2.70 million tons, an increase of 13% from the previous year. Yield is expected to average 3.70 tons per acre, up 0.30 ton from last year. Production of other hay is forecast at 858,000 tons, up 17% from last year. Yield for other hay is expected to average 2.60 tons per acre, up 0.30 ton from last year.

The forecasts in this report are based on October 1 conditions and do not reflect weather effects since that time. The next corn and soybean production forecasts, based on conditions as of November 1, will be released on November 10.



USDA:  Corn Production Down 1 Percent from September Forecast

Soybean Production Down 1 Percent

Corn production for grain is forecast at 14.7 billion bushels, down 1 percent from the previous forecast but up 8 percent from 2019. Based on conditions as of October 1, yields are expected to average a record high 178.4 bushels per harvested acre, down 0.1 bushel from the previous forecast but up 10.9 bushels from last year. Area harvested for grain is forecast at 82.5 million acres, down 1 percent from the previous forecast, but up 1 percent from the previous year. Acreage updates were made in several States based on a thorough review of all available data.

Soybean production for beans is forecast at 4.27 billion bushels, down 1 percent from the previous forecast but up 20 percent from last year. Based on conditions as of October 1, yields are expected to average a record high 51.9 bushels per harvested acre, unchanged from the previous forecast but up 4.5 bushels from 2019. Area harvested for beans in the United States is forecast at 82.3 million acres, down 1 percent from the previous forecast but up 10 percent from 2019. Acreage updates were made in several States based on a thorough review of all available data.



Fortenberry Offers Important Update on Paycheck Protection Program (PPP)

Congressman Jeff Fortenberry (NE-01) issued the following statement today after receiving an important update from the Treasury Department on the Paycheck Protection Program.

“One of the great bipartisan successes of our nation’s robust COVID-19 response has been the Paycheck Protection Program (PPP).  The program has saved tens of millions of jobs, and millions of small businesses,” Fortenberry said.  

“Today, we received important news from the Treasury Department.  If you have a PPP loan for $50,000 or less and are seeking loan forgiveness, the process has been greatly simplified.  Just click here: https://bit.ly/3jKcV6N,” Fortenberry added.

“In a testament to our community cohesion and strong community banking infrastructure, I am happy to report that Nebraska continues to remain a leader in PPP loans approved per capita,” Fortenberry said.  



Update on Farm Income and Farm Program Payment Projections

Webinar: Oct. 15, noon CDT
With Brad Lubben, associate professor and policy specialist, Department of Agricultural Economics.

Farm program payments are a significant part of the bottom line for farmers and ranchers in 2020, whether from existing commodity programs, agricultural disaster assistance, or trade and COVID-19 relief. This session will review current program details and projections, including ARC and PLC payments due to producers in October (for the 2019 crop year). A broader outlook for farm income based on national projections from USDA in early September and state-level analysis will provide a baseline for economic outlook and farm policy issues and decisions moving forward.

Register at farm.unl.edu.  



Online farming workshops set for October and November


Nebraska beginning farmers and ranchers are invited to attend free, virtual workshops designed to explore different agricultural enterprises, hosted by the Center for Rural Affairs.

“Explore Farming” will take place on Thursdays, Oct. 22 and 29, from 6 to 7:30 p.m. CT, via online video conference. A second virtual series will occur on Nov. 12 and 19 at the same time. Each session will be offered in Spanish.

“If you see yourself farming, but aren't sure where to start, these sessions will help you," said Lucia Schulz, Center for Rural Affairs’ project assistant. “Throughout the workshops, we will identify your farming strengths and weaknesses and prepare you to make decisions with those in mind.”

The October session will be instructed by Schulz. Registration is required by Oct. 21. To sign up, email lucias@cfra.org or call 402.750.5727.

Eunice Ramirez will instruct the November classes. To register, email eunicer@cfra.org or call 402.380.0973. The deadline is Nov. 11.

Learn more at cfra.org/events.

This event is funded by the U.S. Department of Agriculture’s Outreach Assistance to Socially-Disadvantaged Farmers and Ranchers Competitive Grants Program, otherwise known as the 2501 Program.



Training for Ag Professionals on Crisis, Suicidal Behavior


An upcoming online training for agricultural professionals will teach individuals how to recognize and respond to potential signs of crisis and suicidal behavior.

Farming and ranching can be stressful in the best of times. Financial worries, unpredictable weather, unpredictable commodity prices, plant pests, livestock diseases and isolation all contribute to a producer’s anxiety. And now Nebraska’s rural communities and families are coping with the unpredictability and imposed isolation produced by the COVID-19 pandemic.

In response to this uncertainty, Nebraska Extension and the Panhandle Public Health District will be offering an online “Question. Persuade. Refer.” training. QPR is a suicide prevention program that teaches participants three steps to help save a life from suicide.

Just as people trained in CPR and the Heimlich maneuver help save thousands of lives each year, people trained in QPR learn how to recognize the warning signs of a suicide crisis and how to question, persuade and refer someone to help.

This 90-minute training will be held online, via Zoom on Oct. 22 at 10 a.m. MT. There is no cost to attend the training, but attendance is limited to 35 participants and registration is required here https://go.unl.edu/panqpr.



NCGA Action Teams and Committees Announced for 2021


The National Corn Growers Association announced the slate of new and returning farmer leaders who will serve their industry as members of the action teams and committees beginning on January 1, 2021. These volunteer farmers will actively shape the future of their industry by guiding programs and carrying out the policies and priorities that drive NCGA. There are a number of Nebraska corn farmers who were placed on Action Teams this year, and some have been chosen as leaders on their respective teams (bolded below). Current 2020 teams, committees and members will remain in place until the beginning of the new calendar year.
 
Leadership for NCGA’s seven major teams in 2021 will be:
    Ethanol Action Team: Mark Recker, chair; JR Roesner, vice chair; Gary Porter, board liaison.
    Market Development Action Team: Robert Hemesath, chair; Troy Schneider, vice chair; Tom Haag, board liaison.
    Member and Consumer Engagement Action Team: Lowell Neitzel, chair; Dan Nerud, vice chair; Kenneth Hartman, board liaison.
    Production Technology Access Action Team: Kate Danner, chair; Patty Mann, vice chair; Dennis Maple, board liaison.
    Risk Management Action Team: Doug Noem, chair; Bill Leigh, vice chair; Deb Gangwish, board liaison.
    Stewardship Action Team: Andy Jobman, chair; Bryan Biegler, vice chair; Dennis McNinch, board liaison.
    Sustainable Ag Research Action Team: Randy DeSutter, chair; Ronnie Mohr vice chair; Brandon Hunnicutt, board liaison.

The action teams and committees will have their first set of meetings in St. Louis in January.



ICA Comments on RFID Rule


On Monday, October 5, 2020, the Iowa Cattlemen’s Association submitted comments on the U.S. Department of Agriculture (USDA) proposal to fully transition to Radio Frequency Identification (RFID) tags as the official ear tags for use in interstate travel.

The intent of the proposal is to improve the ability of USDA Animal Plant Health Inspection Service (APHIS) to trace livestock for animal disease purposes by phasing out visual metal ear tags and replacing them with RFID tags.

The proposed change maintains classes of cattle required to have official identification (sexually intact and 18 months of age or older, all female dairy cattle and male dairy animals born after March 11, 2013, cattle used for rodeo and recreational events, cattle used for shows or exhibitions).

The proposal included the following timeline:
-   Beginning January 1, 2022, USDA would no longer approve vendors to use the official USDA shield in production of metal ear tags or other ear tags that do not include RFID components.
-   On January 1, 2023, RFID tags would become the only identification devices approved as an official ear tag for cattle.
-   However, USDA APHIS would recognize metal ear tags as official identification for cattle if in place before January 1, 2023.

The Iowa Cattlemen’s Association submitted comments that reflected current policy and input from members.

“Iowa’s beef cattle producers have been challenged with significant market disruptions, volatile cattle markets, extreme drought conditions, and more. With the financial implications and uncertainty surrounding data management and confidentiality, the Iowa Cattlemen’s Association requests that USDA APHIS reassess their timeline for implementation of RFID use for cattle. We believe further research is needed to develop a fully-functional and effective animal disease traceability system.”



Iowa Corn Contributes to Beef Up Iowa Program


Iowa Corn® is proud to announce its contributions to the Beef Up Iowa program which was launched in July to connect Iowa beef producers with food insecure Iowans. Iowa Corn’s Animal Agriculture and the Environment Committee donated funds directly to the Beef Up Iowa program, while Iowa Corn’s District 2 Committee donated funds to purchase a family-owned steer that was processed at Iowa State University. The beef was distributed through the Iowa Food Bank Association. Iowa Corn representatives visited Amy’s Food Bank in Rockford, Iowa, with Iowa Secretary of Agriculture Mike Naig yesterday. Amy’s Food Bank is operated by the Howe family, who raised the Iowa Corn sponsored steers that were part of the Beef Up Iowa program.

“Iowa Corn is pleased to be part of this generous program that gives back to Iowa communities, and also a program that benefits agriculture,” said District 2 Iowa Corn Growers Association (ICGA) Director Stu Swanson. “Corn-fed beef is the most widely produced type of beef in the U.S. In fact, last year 1.3 billion bushels of corn went directly to corn-fed beef cattle in the U.S. Now more than ever, agriculture knows we are stronger when we work together, and Iowa Corn is proud to support the Beef Up Iowa program.”

The Beef Up Iowa program is a partnership with the Iowa Department of Agriculture and Land Stewardship (IDALS), Iowa State University (ISU), and Iowa’s beef producers, and is an initiative of Gov. Reynolds’ Feeding Iowans Task Force led by Lt. Gov. Adam Gregg.

“It has been incredible to see Iowans rally together to support the agriculture community and food insecure Iowans,” said Iowa Secretary of Agriculture Mike Naig. “Thanks to many partners, including Governor Reynolds, Iowa beef producers, Iowa State University, and Iowa Corn, we were able to distribute locally-grown protein to Iowa’s food banks and pantries.”

Iowa food banks and food pantries have seen increased demand due to the pandemic while processing options for Iowa beef producers have decreased. Gov. Reynolds has allocated federal CARES Act funds from the state to help cover processing costs and provide beef to food insecure Iowans. However, there are costs associated with purchasing cattle, and the storage, transportation, and delivery of the beef to food banks and pantries. The initial cattle for “Beef Up Iowa” were sourced from 4-H and FFA members to be processed by students and staff at the Iowa State University Meat Lab to help meet the limited processing need options. The meat will be distributed to food bank and food pantry feeding programs across the state.

Iowans can help support this program by donating funds that will cover costs and future purchases of Iowa-produced beef for food giving programs across the state. To donate funds to support this program, visit the Iowa Cattlemen’s Foundation at donorbox.org/beefupiowa.

A summary of food resources available to those in need is available at coronavirus.iowa.gov.



Best Beef Dish of DSM Restaurant Week 2020


The Iowa Beef Industry Council (IBIC) has been a long-standing sponsor of dsm Restaurant Week as a way to pay tribute to the talented chefs that prepare an enjoyable and affordable eating experience with beef.

With the goal to elevate and celebrate the food service industry in the Des Moines area, this 10-day event gives restaurants the freedom to create a specialized menu for customers and encourages locals to try new places.

This year IBIC wanted to raise the steaks and showcase palate-pleasing beef dishes by awarding one participating restaurant with the title of “Best Beef Entrée of dsm Restaurant Week 2020”.

Vino209 Wine Bar & Bistro claimed the title with their crowd-pleasing Steak Roulade—prime beef filled with Swede Point Creamery chevre, roasted red pepper and power greens, creamed Iowa sweet corn, sauce au poivre, and herb salad. The dish was paired with a bold and spicy red blend to perfectly complement the beef.

To be eligible for the award and recognition, voted on by Restaurant Week attendees, restaurants were required to have a minimum of at least one, 100% real beef entrée on their dsm Restaurant Week menu.

The Executive Chef, Andrew Phelps, and his team developed this delicious dish specifically for dsm Restaurant Week customers. “I enjoy the challenge of taking an under-utilized cut of beef to create a new and flavorful dish,” said Chef Andrew. Vino209 is a sophisticated, yet cozy place to dine—located in the charming shopping and dining district of West Des Moines.

Address:
209 5th Street
West Des Moines, IA 50265
www.vino209.com

Hours: Tuesday – Saturday: 11 AM to 9 PM

Although restaurant week has concluded, Vino209 is still open for business with several other beef dishes on their menu to enjoy.



CFAP Webinar for Alfalfa Farmers – Thursday, October 15


Thanks to the National Alfalfa & Forage Alliance's efforts in working with Congressman Collin Peterson and other congressional offices, alfalfa farmers are now eligible for USDA's Coronavirus Food Assistance Program 2 (CFAP 2). In order to provide farmers with details regarding the program, NAFA and USDA's Farm Service Agency (FSA) will be hosting the Coronavirus Food Assistance Program 2 (CFAP 2) Webinar specifically for alfalfa farmers on Thursday, October 15 at 12:00 noon.

     Participants will have an opportunity to learn about CFAP 2 available to eligible farmers and ranchers whose operations have been directly impacted by the coronavirus pandemic. CFAP 2 payments provide eligible producers financial assistance which gives them the ability to absorb some of the increased marketing costs associated with the COVID-19 outbreak. The webinar will highlight basic program information and educational outreach resources that are available.

     Farm Service Agency staff, including Supervisory Agricultural Program Specialist Calvin Gellatly, will review eligibility, the application process, and how payments are calculated. FSA staff will also take questions from participants.

     To register for the CFAP 2 Webinar, click here, or visit the NAFA website at alfalfa.org and click the link under CFAP Webinar for Alfalfa Farmers on the right.

     FSA will be accepting applications for CFAP 2 through Dec. 11, 2020. To find the latest information on CFAP, including forms and the contact information for your local Service Center, visit farmers.gov/cfap.



Managing Weed Seeds in Manure

Chryseis Modderman, University of Minnesota, Extension Educator, Crops


Small but mighty, weed seeds in manure can be problematic when they result in overgrown, weedy fields after manure application. A survey found that fresh manure on dairy farms had an average of 75,000 seeds per ton. But, luckily, there are some measures that can be taken to reduce the viability of those weed seeds.

First of all, don’t assume that animal digestion will take care of the problem. Though it will reduce weed seed viability, simply feeding the material to livestock will not eliminate all seeds. Grass and soft-coated broadleaf weed seeds are more easily destroyed in digestion than hard-coated seeds. In a study conducted on rumen animals, such as cattle, 27% of hard-coated seeds remained viable after digestion. The gizzard digestive system of poultry is highly effective at destroying weed seeds, and only 3.5% of hard-coated seeds fed to ducks were recovered and found viable in a similar study.

So what can you do to reduce weed seed viability beyond the gut? In general, heat is the enemy of weed seed survival. The benchmark for good seed mortality is 140⁰F (60⁰C) sustained for three days. Hot temperatures that fall below that mark or a shorter duration will still kill some weed seeds, but not as thoroughly. How you subject the weed seeds to heat is up to you, but below are a few suggestions.

Minimize weed seeds in feed and forage by ensiling

What goes in, must come out; so killing seeds before they get to the animal is a good strategy. One way to do that is to ensile the feed (if appropriate for the feed type). The fermentation and heat generated during ensiling is quite effective for killing weed seeds. One study found that just one month after seed-contaminated alfalfa haylage was stored, viability of the toughest seeds dropped by 41%; and in corn silage, the drop was even greater at 60%. Logically, seed viability continues to decrease as silage storage time increases. Eight weeks of ensiling was shown to kill up to 87% of viable seeds; and when feed went through both ensiling and rumen digestion, the seed mortality increased to 89%.

Minimize weed seeds in manure by composting

Internal heat generated by properly composting manure will kill most weed seeds – even the hard-seeded weeds. The key word here is “properly.” Aged manure is not composted manure. I’ll say it again: aged manure is not composted manure. Proper composting requires active management and must be monitored and aerated for correct weed-killing conditions to develop.

Temperature and moisture are the two most crucial elements for seed mortality in compost. Studies have shown that sustaining the compost at that benchmark of 140⁰F for three days can reduce weed seed viability 90-98%, so long as a minimum of 35% moisture is maintained. Another study found that overall duration was important and that it took between 21 and 50 days of composting for best results.

Even under the most diligent composting program, there can be seeds that survive. It is theorized that since manure is not a uniform product, this mortality escape is due to cooler pockets that do not sustain high temperatures for long enough. Therefore, just because manure has been composted does not necessarily mean it is weed seed free.

Field application of contaminated manure

Remember, even if the feed was ensiled and the manure was composted before spreading, it’s still possible for weed seeds to remain viable. A 98% reduction in viability seems sufficient, but even low seed survival rates can be problematic. A 2% survival of 75,000 seeds would leave 1,500 viable seeds remaining per ton. Applied at 8 tons per acre, that would increase the weed seedbank by 12,000 seeds per acre! Therefore, it is crucial to scout fields that receive manure to head off any severe weed infestation.



USDA Announces Oct. 30 Deadline to Submit Wildfire, Hurricane Disaster Assistance Applications


The U.S. Department of Agriculture (USDA) today announced Friday, Oct. 30, 2020, as the deadline to submit applications for the Wildfire and Hurricane Indemnity Program – Plus (WHIP+) for 2018 and 2019 losses. USDA did not originally specify a deadline when the program was announced.

“The physical and financial loss experienced by farmers and ranchers impacted by natural disaster events in 2018 and 2019 was widespread and catastrophic,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “Fortunately, in addition to our already extensive suite of disaster assistance programs for crop and livestock producers, we were able to provide additional support through WHIP+. If you have not yet submitted your application for assistance, please don’t miss your chance.”

WHIP+ compensates producers for losses due to hurricanes, floods, snowstorms, tornadoes, typhoons, volcanic activity, drought, excessive moisture, and wildfires occurring in calendar years 2018 and 2019. Drought and excessive moisture were added as eligible losses for the program in March 2020. To date, FSA has received more than 133,000 applications for WHIP+ disaster assistance and paid out nearly $1.4 billion in WHIP+ benefits.

Next week, FSA will launch a new tool on the farmers.gov WHIP+ webpage to help producers understand eligibility for the program and whether they had possible losses in 2018 and 2019. The tool will also allow producers an opportunity to provide information for FSA staff to reach out to them.

FSA will announce soon the details for producers who experienced quality loss from 2018 and 2019 natural disaster events authorized in appropriations legislation. There will be a separate signup period for producers reporting quality loss.

For more information or application assistance, visit farmers.gov WHIP+ webpage https://www.farmers.gov/recover/whip-plus or contact your local USDA Service Center.



NCBA Hosts Beef Industry from “Pasture to Plate” Panel


In effort to educate key opinion leaders in the food and hospitality industry on the beef production cycle, from pasture to plate, the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, held a webinar in partnership with the James Beard Foundation. The “Pasture to Plate” webinar highlighted the beef community’s commitment to raising cattle in a safe, humane and environmentally sustainable manner. The webinar was part of the James Beard Foundation’s Industry Support Webinar series, targeting chefs and other hospitality leaders.

The Sep. 22 webinar aimed to educate attendees about how beef is raised and used.  The panelists represented various parts of the beef production cycle and included Minnesota cattle rancher, Katie Brenny; Nebraska feedlot operator and NCBA Federation Division Chair, Buck Wehrbein; Josh White, NCBA executive director of producer education; Pitmaster Dr. Howard Conyers and Chef Lamar Moore.

The conversation focused on the following topics:
    The beef lifecycle
    Production practices
    Beef Quality Assurance program
    Common misconceptions about the beef industry
    Consumer concerns and expectations of food production
    Challenges and opportunities facing the industry
    How COVID-19 impacted the industry    

“It is important that the Beef Checkoff leads the charge to educate key opinion leaders about how cattle are raised and what steps cattle producers are taking to continuously improve industry sustainability,” said Wehrbein. “By investing our dollars in these types of events and introducing this audience to actual beef producers, we are able to share our authentic story with chefs, so they can proudly feature beef on their menus.”

In addition to the “Pasture to Plate” webinar, NCBA partnered with the James Beard Foundation for a second webinar held on Sept. 29. This webinar focused on how to use underutilized beef cuts across menus.

In total, the webinars had 90 participants.



Fall Run of Calves

Stephen R. Koontz, Dept of Ag and Resource Econ., Colorado State University


The fall run of calves is in full swing and portions of that market are exhibiting weakness. The most notable is between small calves relative to larger feeder cattle. Cash prices for 7-8 weight feeder animals have improved for much of the summer off lows established in the teeth of the pandemic – during April. Fall prices have the potential to be some of the best for the year. Prices are close to $145/cwt, off from the peak in August of close to $150/cwt, but much improved from the $120 from April. However, cash prices for 4-5 weight animals remain comparable to this spring. Prices are in the high $160s and that is similar to the mid- $160s of April and May. Basis for these lightweight animals is soft and the market is rather clearly communicating, for producers who can feed calves for another month or two, that delaying marketing should be considered.

Of course, the fall run in the western U.S., is in full swing in part because of drought conditions. I made this recommendation to a group of producers recently and they were none too pleased with it. They clearly communicated that they had been feeding hay for much of the summer and were for the rest of the fall and winter only going to continue to only feed cows. And fewer cows. Many of the Coloradoans that I have spoke to are not specially looking forward to winter but are certainly looking forward to less dangerous forest fire conditions. Beef cow slaughter is not higher through this fall as of yet, but this is a market condition worth watching through the reminder of 2020. Similarly, forage prices are not higher in the western U.S. either, with the exception of dairy quality hay, but supplies of beef cow quality hay were abundant at the beginning of the forage year. I continue to expect to see beef cow liquidation be more substantial in the fall and I expect to see stronger western forage prices. And this is before any discussion of recent higher corn prices. The next two months for all are key.

The COVID impacts on the fed cattle market continue to almost have entirely run their course. Marketings have been reasonably strong. The number of long-fed cattle are down off their peaks in June and high inventories in the surrounding months of May and July. On September 1, the inventory of cattle on feed over 120 days was the same as a year ago in 2019. I had expected that to take another month or three. On the other hand, placements were aggressive in July and August, but these animals will not weight on the market until the end of 2020 or beginning of 2021. The single remaining factor weighing on the market now are carcass weights. Steer carcass weights are about 25 pounds heavier, heifers are only about 10 pounds, but both of those gaps are shrinking. The train-wreck from April continues to be further and further behind us.




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