LMD January 2011

20
Livestock Digest Livestock JANUARY 15, 2011 • www. aaalivestock . com Volume 53 • No. 1 “The greatest homage we can pay to truth is to use it.” – JAMES RUSSELL LOWELL continued on page two NEWSPAPER PRIORITY HANDLING by LEE PITTS MARKET Digest Riding Herd by Lee Pitts W hen it comes to the global beef business the United States is Mr. Nice Guy. We have opened the world’s most lucrative beef trade to over 30 countries and our government puts onerous restrictions on American producers but doesn’t make foreign importers meet the same requirements. Environ- mentalists try to put ranchers out of business in this country for taking care of the land while buying meat from foreign com- petitors who destroy rain forests and commit human rights viola- tions. We tax ourselves to death while giving tax breaks and loans to our foreign competition. Our USDA oversees a checkoff pro- gram that won’t let the money be used to differentiate between foreign and U.S. beef and allows the checkoff dollars to be siphoned off to the NCBA, who has become a cheerleader for meat packer interests. (NCBA’s former lobbyist now does the same thing for JBS). Not that the packers need much more help. Cargill, Tyson and JBS now control well over 80 percent of the beef, pork and poultry business in this country. They’ve done it by being oppor- tunistic, taking advantage of deregulation, using illegal immi- grants as workers, breaking antitrust laws while an emascu- Brazilian Ball Park Franks JBS began in 1953 when the company’s founder, Jose Batista, opened a butcher shop in rural Brazil and slaughtered five head of cattle per day. Fast forward to today when the Batista family has controlling interest in the world’s largest beef processor, with meat packing plants in the world’s four leading beef produc- ing nations, Brazil, Argentina, USA and Australia. Headquar- tered in São Paulo, Brazil, it had revenues of $28.7 billion and net income of $3.5 billion in 2009. The company employs 125,000 people around the world. Taking advantage of the low value of the American dollar, in just the last three years it has picked up U.S. beef, pork and poultry proces- sors by spending $2.7 billion. And it’s not even close to being done. Recently the Wall Street Jour- nal reported that Sara Lee Cor- poration, another American cor- poration with a long history in this country, is weighing a sale to JBS. By my count, Sara Lee owns 67 brands of food and bev- erage products and its meat line includes such well known names as Ball Park Franks, Gallo Salame, Hillshire Farms, Jimmy Dean, Sara Lee and a host of others. It’s hard to get more American than Ball Park Franks, Jimmy Dean or Sara Lee yet they all could become Brazilian owned. At the time the Wall Street Journal broke the news Sara Lee’s stock price was $17.26 which would give the company a market capitalization of $11 bil- lion. According to the Journal, “Private equity firm Apollo lated Justice Department looked the other way, and by convincing some big ranchers that they should become contract produc- ers for them. In the process they have devoured smaller compa- nies, made our food less safe and have reduced the numbers of swine and poultry producers by 90 percent and the ranks of cat- tlemen by half. But what really galls this reporter is we are let- ting foreigners grab up good American companies at fire sale prices. We are making it way too easy for our foreign competitors. Especially for one in particular. Sold Down The River by LISA M. KEEFE, meatingplace.com T he USDA’s Food Service and Inspection Service (FSIS) estimates that the average annual cost of complying with its new final rule on including nutritional labels on meat and poultry products would be between $10.5 million and $10.9 million a year for the next 20 years, according to a notice in the Federal Register explaining the rule. So the total average present value of the total cost over 20 years would be between $156.7 million and $115.4 million, depending on the economic assumptions that are underly- ing the projections, according to the agency. There are avenues to complying with the rule that would be less costly: For point-of- purchase nutrition information for major cuts of single-ingredient raw products, the annual average costs are estimated to be between $1.3 million and $1.32 million. The costs compare favorably with the esti- mated benefits, however. The agency estimates that the average value of the benefits of the new law is between about $800 million and $1.4 billion. Annually, FSIS estimates that the rule would produce average benefits of between $75.5 million and $91.3 million. The monetized value of the benefits includes the value of lives saved by the new nutritional label- ing laws. FSIS concludes, in its Federal Register notice, “The projected annualized average net present values of costs of the rule's nutrition labeling requirements appear to be justified by the larger projected annualized average net present values of benefits.” Reaction to the rule Various industry organizations and legisla- tors released their reactions to the rule after its publication in the Federal Register. “NCBA supports nutrition labeling on beef products and is pleased to see USDA moving forward with this effort,” said National Cattle- ment’s Beef Association Executive Director of “You cannot unsay a cruel word.” continued on page twelve continued on page six Labeling law may carry a $10 million-a-year price tag www.LeePittsbooks.com Leftover Love T o paraphrase an old ballad from my youth . . . “Where have all the hippies gone?” It took me awhile to find them but I finally fig- ured out where they’re hiding. Have you ever answered the phone and immediately knew you shouldn’t have? Recently an old hippie from my past called, said he’d heard something on the radio that a Lee Pitts had written, and he wondered if it was his old classmate. Sadly it was. We called him Stoner because he took more trips than a truck driver. Only Stoner’s were on LSD, marijuana and any other drug he could get his hands on. Stoner went to Woodstock, slept in the mud, rocked back and forth to Country Joe and the Fish and lived on free love. Needless to say, we never traveled in the same circles as he took an entirely different orbit around the sun than I did. Stoner was in my area on vacation, looked me up in the phonebook and now wanted to go out to dinner to talk about old times together, despite the fact that we never had any. I couldn’t think of a good excuse fast enough and was trapped. I was shocked by Ston- er’s appearance. The guy who used to have long, dirty hair now had less hair than a cue ball and instead of wearing a tie dyed t-shirt with happy faces sewn on to ragged bell bottom jeans, he was wearing a suit and tie. Instead of being barefoot he was wearing an expen- sive pair of Italian loafers. Stoner had been divorced three times but intro- duced me to his “life part- ner” Amber, who was easi- ly 20 years younger than he was. First thing, I looked to see if she was bra-less or wearing san- dals. The guy who always said he could live without material things had rings on three fingers, a Rolex watch, expensive sunglass-

description

The Newspaper of Southwestern Agriculture

Transcript of LMD January 2011

Page 1: LMD January 2011

LivestockDigest

LivestockJANUARY 15, 2011 • www. aaalivestock . com Volume 53 • No. 1

“The greatest homage we can pay to truth is to use it.”

– JAMES RUSSELL LOWELL

continued on page two

NEWSPAPER

PRIO

RIT

Y H

AN

DLI

NG

b y L E E P I T T S

MARKET

DigestRiding Herd

by Lee Pitts

When it comes to theglobal beef businessthe United States isMr. Nice Guy. We

have opened the world’s mostlucrative beef trade to over 30countries and our governmentputs onerous restrictions onAmerican producers but doesn’tmake foreign importers meet thesame requirements. Environ-mentalists try to put ranchers outof business in this country fortaking care of the land whilebuying meat from foreign com-petitors who destroy rain forestsand commit human rights viola-tions. We tax ourselves to deathwhile giving tax breaks and loansto our foreign competition. OurUSDA oversees a checkoff pro-gram that won’t let the money beused to differentiate betweenforeign and U.S. beef and allowsthe checkoff dollars to besiphoned off to the NCBA, whohas become a cheerleader formeat packer interests. (NCBA’sformer lobbyist now does thesame thing for JBS).Not that the packers need

much more help. Cargill, Tysonand JBS now control well over 80percent of the beef, pork andpoultry business in this country.They’ve done it by being oppor-tunistic, taking advantage ofderegulation, using illegal immi-grants as workers, breakingantitrust laws while an emascu-

Brazilian Ball Park FranksJBS began in 1953 when the

company’s founder, Jose Batista,opened a butcher shop in ruralBrazil and slaughtered five headof cattle per day. Fast forward totoday when the Batista familyhas controlling interest in theworld’s largest beef processor,with meat packing plants in theworld’s four leading beef produc-ing nations, Brazil, Argentina,USA and Australia. Headquar-tered in São Paulo, Brazil, it hadrevenues of $28.7 billion and netincome of $3.5 billion in 2009.The company employs 125,000

people around the world. Takingadvantage of the low value of theAmerican dollar, in just the lastthree years it has picked up U.S.beef, pork and poultry proces-sors by spending $2.7 billion.And it’s not even close to beingdone.Recently the Wall Street Jour-

nal reported that Sara Lee Cor-poration, another American cor-poration with a long history inthis country, is weighing a sale toJBS. By my count, Sara Leeowns 67 brands of food and bev-erage products and its meat lineincludes such well known namesas Ball Park Franks, GalloSalame, Hillshire Farms, JimmyDean, Sara Lee and a host ofothers. It’s hard to get moreAmerican than Ball Park Franks,Jimmy Dean or Sara Lee yetthey all could become Brazilianowned.At the time the Wall Street

Journal broke the news SaraLee’s stock price was $17.26which would give the company amarket capitalization of $11 bil-lion. According to the Journal,“Private equity firm Apollo

lated Justice Department lookedthe other way, and by convincingsome big ranchers that theyshould become contract produc-ers for them. In the process theyhave devoured smaller compa-nies, made our food less safe andhave reduced the numbers ofswine and poultry producers by90 percent and the ranks of cat-tlemen by half. But what reallygalls this reporter is we are let-ting foreigners grab up goodAmerican companies at fire saleprices. We are making it way tooeasy for our foreign competitors.Especially for one in particular.

Sold Down The River

by LISA M. KEEFE, meatingplace.com

The USDA’s Food Service and InspectionService (FSIS) estimates that the averageannual cost of complying with its newfinal rule on including nutritional labels

on meat and poultry products would bebetween $10.5 million and $10.9 million a yearfor the next 20 years, according to a notice inthe Federal Register explaining the rule.So the total average present value of the

total cost over 20 years would be between$156.7 million and $115.4 million, dependingon the economic assumptions that are underly-ing the projections, according to the agency.There are avenues to complying with the

rule that would be less costly: For point-of-purchase nutrition information for major cutsof single-ingredient raw products, the annualaverage costs are estimated to be between $1.3million and $1.32 million.The costs compare favorably with the esti-

mated benefits, however. The agency estimatesthat the average value of the benefits of the

new law is between about $800 million and$1.4 billion. Annually, FSIS estimates that therule would produce average benefits ofbetween $75.5 million and $91.3 million. Themonetized value of the benefits includes thevalue of lives saved by the new nutritional label-ing laws.FSIS concludes, in its Federal Register

notice, “The projected annualized average netpresent values of costs of the rule's nutritionlabeling requirements appear to be justified bythe larger projected annualized average netpresent values of benefits.”

Reaction to the ruleVarious industry organizations and legisla-

tors released their reactions to the rule after itspublication in the Federal Register.“NCBA supports nutrition labeling on beef

products and is pleased to see USDA movingforward with this effort,” said National Cattle-ment’s Beef Association Executive Director of

“You cannot unsay a

cruel word.”

continued on page twelve

continued on page six

Labeling law may carry a $10 million-a-year price tag

www.LeePittsbooks.com

Leftover Love

To paraphrase an oldballad from my youth. . . “Where have allthe hippies gone?”

It took me awhile tofind them but I finally fig-ured out where they’rehiding.Have you ever

answered the phone andimmediately knew youshouldn’t have? Recentlyan old hippie from mypast called, said he’dheard something on theradio that a Lee Pitts hadwritten, and he wonderedif it was his old classmate.Sadly it was.We called him Stoner

because he took moretrips than a truck driver.Only Stoner’s were onLSD, marijuana and anyother drug he could gethis hands on. Stoner wentto Woodstock, slept in themud, rocked back andforth to Country Joe andthe Fish and lived on freelove. Needless to say, wenever traveled in the samecircles as he took anentirely different orbitaround the sun than I did.Stoner was in my area

on vacation, looked me upin the phonebook andnow wanted to go out todinner to talk about oldtimes together, despite thefact that we never hadany. I couldn’t think of agood excuse fast enoughand was trapped.I was shocked by Ston-

er’s appearance. The guywho used to have long,dirty hair now had lesshair than a cue ball andinstead of wearing a tiedyed t-shirt with happyfaces sewn on to raggedbell bottom jeans, he waswearing a suit and tie.Instead of being barefoothe was wearing an expen-sive pair of Italian loafers.Stoner had been divorcedthree times but intro-duced me to his “life part-ner” Amber, who was easi-ly 20 years younger thanhe was. First thing, Ilooked to see if she wasbra-less or wearing san-dals. The guy who alwayssaid he could live withoutmaterial things had ringson three fingers, a Rolexwatch, expensive sunglass-

Page 2: LMD January 2011

Page 2 Livestock Market Digest January 15, 2011

Global Managementapproached Sara Lee during thesummer about a deal after areport that Sara Lee hadrebuffed an unsolicited offer thatcould have been worth $12 bil-lion from KKR.”That’s the firm that led the

leveraged buyout of Nabisco andled to the book and the moviecalled “Barbarians At The Gate.”That could also describe a hostof foreign companies chompingat the bit to buy good old Amer-ican businesses at fire sale prices.

The World’s ButcherSara Lee is no small potatoes

and yet it would be just one ofdozens of companies that JBShas gobbled up in its three-yearlong buying spree around theglobe in its quest to becomebutcher to the world. Ratherthan taking the time to build itsown global brands the companyhas purchased reputation com-panies like these:

� In 2007 JBS paid $1.4 bil-lion for beef and pork processorSwift & Co. thereby increasingits slaughtering capacity by7,600 head per day.

� In 2008 JBS purchasedSmithfield’s Five Rivers feedlotsfor $565 million. Five Rivers hasa one-time capacity of 820,000cattle and fed two million cattlelast year. With its purchase JBSinstantly became one of Ameri-ca’s biggest cattle feeders.

� In May of 2008 JBS madeits first foray into Australia withthe acquisition of the TasmanGroup which slaughters 3,000head of cattle and 16,000 sheepper day.

� Next JBS made Swift-Aus-tralia a subsidiary when it boughtSwift’s slaughterhouses and feed-lots in Australia that producebeef, veal, lamb and mutton.

� Then JBS announced theywere taking over one of Aus-tralia’s biggest feedlots and asso-ciated packing facilities, Rock-dale Beef, despite increasingunease about overseas domina-tion of the industry in the landdown under. JBS purchasedRockdale Beef from Japanesepartners, Itoham Foods and Mit-subishi Corporation, and thisacquisition gave JBS 30 percentof the feedlot capacity in NewSouth Wales and 14 percent ofcattle on feed in Queensland andNSW. Swift also has 26 percentof the beef processing capacityin Australia with 10 meat plants.

� The Justice Departmentnext allowed JBS to acquire Pil-grim’s Pride, a chicken processorwith operations in the US, Puer-to Rico, and Mexico. JBS pur-chased 64 percent of Pilgrim’sPride out of bankruptcy for $800million plus two billion in debt.The deal instantly made JBS thesecond-largest chicken processorin the U.S.

� In 2009 JBS diversified fur-ther into dairy, leather and petproducts by merging with BertinGroup in Brazil.

� After purchasing Gent, thelargest cooked beef processor inEurope, JBS President JoesleyMendonca Batista said that his

company is exploring moreacquisition opportunities inEurope. The Brazilian publica-tion Valor Economico reportedthat the company was lookingfor acquisitions to stay ahead ofrival Marfrig.

� Hard as it is to believe, JBSalso tried to become America’slargest pork processor by pur-chasing Smithfield in June of2010. Smithfield has about 36percent of the US nationwidepork slaughtering capacity.Smithfield was a typical targetfor JBS as it had been weakenedby soaring feed costs, the reces-sion and the H1N1 virus out-break, which curbed porkdemand for awhile. In just twoyears Smithfield posted a com-bined net loss of almost US$ 300million. In other words, theywere ripe for the picking. Onlyfalling grain prices and betterpacker margins kept Smithfieldfrom selling out.But JBS would still very much

like to own Smithfield.As a result of all this buying

JBS now processes beef, pork,lamb, poultry, leather, milk andother dairy products with a pres-ence in the U.S., Brazil, Argenti-na, Paraguay, Uruguay, Aus-tralia, Italy and Russia. Thecompany slaughters 90,290 headof cattle per day easily making itthe world’s largest beef compa-ny. It is also the pride of Brazil,the largest Brazilian multination-al in the food industry. In thethird quarter of 2010 theirAmerican beef operations alonegenerated revenue of $3.36 bil-lion, up 18 percent from thesame period in 2009. In U.S.pork, revenue rose $38 to $772million, and chicken revenuetotaled $1.72 billion. JBS nowearns more than twice as muchthrough its American operationsas its South American ones andalmost one-third of their rev-enues now comes from exports.

Too Big To Fail?JBS is on a roll with the wind

at its back. The low value of thedollar and the strength of theBrazilian currency has madeAmerican companies cheap tobuy. Alan Greenspan the formerFederal Reserve chairman, hasaccused the present U.S. govern-ment of “pursuing a policy ofcurrency weakness,” and certain-ly this Administration seems will-ing to do anything to pull us outof our economic malaise. Buthelping foreigners buy goodAmerican companies with cheapdollars seems a tad bit short-sighted and misguided to us.Then there is the increasing

concentration and subsequentprofitability of the meat packingsector, which has been incremen-tally advanced by JBS. This con-centration of purchasing andpricing power has allowed themto increase their revenue tofinance their buying spree. Theaverage return on equity beforetaxes for the meat packing indus-try for the past six years has been17 percent. That’s a very good

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Sold Down the River continued from page one

continued on page three

Page 3: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 3

payoff, especially when comparedwith an average return on equityfor farming and ranching the past13 years which has been a nega-tive one half of one percent! Then there is this little tidbit.

Besides the big American banksand the JP Morgan Chase’s ofthis world, JBS is also beingfinanced by the Brazilian govern-ment. Mexican beef producersare currently calling for meat andlivestock products to be excludedfrom a planned free trade agree-ment with Brazil because theycannot compete with theirBrazilian counterparts due toshortages of commercial creditin Mexico. JBS has no suchproblem in Brazil. When JBSissued $2 billion worth of con-vertible bonds to finance theirpurchases in the United Statesthe buyer of the bonds wasBNDES, Brazil’s developmentbank. That means that if JBSUSA were to fall behind on theirinterest payments the Braziliangovernment could end up own-ing 20 to 25 percent of JBSUSA. And that’s not an impossi-ble scenario to conceive. As thisstory was being written, bondssold by JBS SA were posting theworst week since they were sold.As a result, Brazil’s nationaldevelopment bank penalized thecompany $300 million for delay-ing a U.S. share offering ofstock. The stock offering wassupposed to be the way that JBSwas going to pay off the Brazil-ian development bank.JBS agreed to pay the penalty

in order to have more time totake its U.S. unit public withouttriggering a clause that allowsthe state bank to convert $2 bil-lion of bonds into stock. WhenJBS debt is compared to the

quality of the debt for emerging-market corporate bonds analystssay it is “underperforming.”While our government is

doing its darndest to put Ameri-can farmers and ranchers out ofbusiness the Brazilian govern-ment is doing everything it canto help its ag producers. And lit-tle wonder, agriculture accountsfor 26 percent of the country’sgross domestic product, 42 per-cent of exports and is responsiblefor generating 37 percent of thejobs in the country. 2010 Brazil-ian exports of agri-livestockproducts were expected to reacha new record and the govern-ment plans to improve that trendby opening up new markets inplaces like China, Japan andSouth Korea. The same placeswhere Americans would like tosell more meat. A recent govern-ment report said that Brazil candouble grain production andtriple beef production in theforeseeable future.

Mr. Nice GuyIt’s as if the United States is

having a garage or farm sale withcheap prices and many otherenticements. The latest is thefood safety bill recently passedby the Senate and the House.S.510/HR 2751 as it’s known,places an enormous new burdenon U.S. farmers while it doesnothing to address the food safe-ty of food imports. Food cominginto the USA from Mexico,Chile, Peru or anywhere elsedoes not have to meet S.510food safety regulations at all, andmany dangerous chemical pesti-cides that have been banned inthe USA are legal to use else-where. Some critics argue thatthe food safety bill will not make

our food any safer but will drivemany American farmers andranchers out of business. It willerect new barriers to ranchersentering the business, and placea host of regulatory burdens onU.S. farmers and ranchers at thesame time are no new regula-tions required for food grownoutside the U.S. It will hinderthe competitiveness of U.S.farms, add to the worsening agri-cultural trade imbalance andcentralize food production pow-er in the hands of a few wealthycorporations like JBS. But it willcreate new jobs . . . in SouthAmerica and elsewhere. It ispolicies like these that made theEconomic Policy Institute con-clude that American companieshave created 1.4 million jobsoverseas this year, comparedwith less than 1 million in theU.S. The additional 1.4 millionjobs would have lowered theU.S. unemployment rate to 8.9percent, says the Institute’sRobert Scott.It’s not just the federal gov-

ernment who is making life easyfor JBS and other internationalbusiness predators. In Cactus,Texas, where JBS is improving aplant, the company was able tonegotiate a tax abatement dealfor seven or eight years. In Plain-well, Michigan, JBS USA willreceive a tax break to aid in theexpansion of its beef processingplant there. Township officialsvoted to give JBS a 12-year, 50percent abatement for construc-tion and upgrades. If all this isn’t enough to make

you mad consider that our gov-ernment recently allowed freshmeat imports from a state inBrazil that’s been recognized bythe World Trade Organization

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Page 4: LMD January 2011

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Page 4 Livestock Market Digest January 15, 2011

National industry groupsparticipated in a confer-ence call in mid Decem-ber with Agriculture Sec-

retary Tom Vilsack regarding theprocedure the U.S. Departmentof Agriculture (USDA) will fol-low as it moves forward with theproposed competition ruleissued by the USDA GrainInspection, Packers & Stock-yards Administration (GIPSA) inJune. The comment deadline forthe GIPSA rule ended onNovember 22.Secretary Vilsack said the

GIPSA rule was intended to car-ry out the requirements of the2008 Farm Bill and provideneeded updates to current regu-lations under the Packers &Stockyards Act of 1921 to keepmarkets functioning fairly andproperly. He described the GIP-SA rule as a starting point forreinvigorating rural America.A total of 60,700 public com-

ments were filed on the GIPSArule with somewhere between28,000 and 52,000 of themappearing to be form letters,depending on who reported onthe call.The Secretary said he could

not venture a guess as to howlong it will take GIPSA to issue afinal rule. But he did describethe steps the agency will now gothrough to finalize the rule:

� USDA will put all theunique comments (those com-ments that are not form letters)on the website at www.regula-tions.gov. No comment wasmade by the Secretary on how

he would handle the form lettercomments.

� USDA will identify thecomments and will sort out theperimeters of the comments,sorting out those comments thataddressed only a single part ofthe rule from those that mayhave addressed the entire rule.

� USDA will then put togeth-er analysis teams who will reviewthe specific content of the com-ments and determine if theagency needs to do more legalanalysis or policy analysis for therule.

� USDA will then conduct anew cost/benefit analysis on therule based on the issues andinformation contained in thecomments. He said the publiccomments will allow for a farmore rigorous economic analysis.

� Once any additional analy-ses are complete, and after thenew cost/benefit analysis is con-ducted, USDA will then puttogether the draft final rule.

� After USDA obtains inter-departmental clearance on itsdraft final rule, it will send therule over to the Office of Man-agement and Budget (OMB).Secretary Vilsack said it may takesome time before OMB com-pletes its review of the draft finalrule.

� After OMB completes itsreview, USDA will then publishthe final rule in the Federal Reg-ister.Secretary Vilsack said the

USDA will take the public com-ments very seriously before mak-ing decisions on the many con-

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cerns that have been raised andhis goal is to achieve a workable,common-sense rule. While hesaid he cannot give a timeline forcompletion, he said USDA willtake the time necessary to dothis right, comprehensively, andin good faith.In his remarks, Secretary Vil-

sack stated that rural America isin need of more people and thatthe joint USDA/Department ofJustice competition workshopshave amplified the very real dif-ferences, including differences inprofitability, between the needsof small operations, mid-sizedoperations, and commercialoperations. He said a real chal-lenge is the disconnect betweenthe less-than-one-percent ofAmericans who produce ourfood and the rest of Americathat consumes it, without havingan understanding of the difficul-ties and challenges that produc-ers face. Comments from both sides

on the GIPSA issue were sup-portive of the fact that theUSDA will continue to thoroughanalyze the issue and considerthe economic consequences ofpotential rule changes.Additionally in early Decem-

ber Chairman Blanche Lincoln(D-Arkansas) held a SenateAgriculture Committee confir-mation hearing on RamonaRomero’s nomination to be theGeneral Counsel at USDA. Sen-ator Lincoln led her line of ques-tioning with concerns on GIPSAgoing well beyond the intent ofCongress with this rule. She wasfirm that Congress had spokenand USDA needed to complywith the intent of the language inthe 2008 Farm Bill.

Page 5: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 5

from MSNBC

After knocking on 50 mil-lion doors and handlingtens of millions of surveys,the Census Bureau

announced that the official pop-ulation of the United States isnow 308,745,538.The 2010 census also shows

America’s once-torrid populationgrowth dropping to its lowestlevel in seven decades.The new number, based on

the surveys taken on April 1,2010, is a 9.7 percent increaseover the last census, 281.4 mil-lion residents in 2000.But that’s slower than the

13.2 percent increase from 1990to 2000. And it’s the slowest rateof increase since the 1940 cen-sus. That is the decade in whichthe Great Depression slashedthe population growth rate bymore than half, to 7.3 percent.The Census figures will be

used to reapportion the 435House seats among the 50states. The numbers trigger ahigh-stakes process wherein thedominant party in each stateredraws the election map, shap-ing the political landscape forthe next 10 years.In Congress, the steady

migration to the South and Westshould be a boon for Republi-cans, with GOP-leaning statesled by Texas picking up Houseseats.The U.S. is still growing

quickly relative to other devel-oped nations. The population inFrance and England eachincreased roughly 5 percent overthe past decade, while in Japanthe number is largely unchangedand in Germany the populationis declining. China grew at about6 percent; Canada’s growth rateis roughly 10 percent.“We have a youthful popula-

tion that will create populationmomentum through a largenumber of births, relative todeaths, for years to come,” saidMark Mather, an associate vicepresident at the Population Ref-erence Bureau, a private firm inWashington that analyzes censusdata. “But demographers gener-ally expect slower growth in thefirst decade of the 21st century.”The declining growth rate

since 2000 is due partly to theeconomic meltdown in 2008,which brought U.S. births andillegal immigration to a nearstandstill compared with previ-ous years. The 2010 count repre-sents the number of people —citizens as well as legal and ille-gal immigrants — who called theU.S. their home on April 1 thisyear.

� The most populous state wasCalifornia (37,253,956); the leastpopulous, Wyoming (563,626).

� The state that gained themost numerically since 2010 wasTexas (up 4,293,741 to25,145,561); the state thatgained the most as a percentagewas Nevada (up 35 percent to2,700,551).

� Politically, Texas will gain

four House seats due to a bur-geoning Hispanic populationand a diversified economy thatheld up relatively well during therecession. Other winners areGOP-leaning Arizona (1) andFlorida (2).

� Other states with increasesare: Georgia (1), South Carolina(1), Utah (1) and Washington (1).

� States that lose seats are:Illinois (1), Iowa (1), Louisiana(1), Massachusetts (1), Michi-gan (1), Missouri (1), New Jer-sey (1), New York (2), Ohio (2),Pennsylvania (1).

� The Ohio and New Yorklosses typify many of the Demo-cratic strongholds carried by

Barack Obama in 2008 that sawdeclines in political influence.

� And, for the first time in itshistory, Democratic-leaning Cal-ifornia did not gain a House seatafter a census after losing manyof its residents in the last decadeto neighboring states.On Monday, White House

press secretary Robert Gibbssought to downplay the possibili-ty that 2010 census results wouldbe a boon for Republicans. “Idon’t think shifting some seatsfrom one area of the country toanother necessarily marks a con-cern that you can’t make a politi-cally potent argument in thosenew places.”

South gains electoral clout in Census tallyThe projections do not

account for overseas U.S. mili-tary personnel and their families,who are typically counted at mil-itary bases in the U.S. The Cen-sus Bureau obtains Pentagonrecords on overseas military andadds them to the resident countbefore allocating the Houseseats. In 2000, North Carolinabeat out Utah for the last Houseseat because of its strong Armypresence.The stakes are high. States on

the losing end Tuesday may havelittle recourse to challenge thenumbers. Still, census officialswere bracing for the possibilityof lawsuits seeking to reverse the2010 findings, according tointernal documents.

The release of state appor-tionment numbers is the first setof numbers from the 2010 cen-sus. Beginning in February, theCensus Bureau will release pop-ulation and race breakdownsdown to the neighborhood levelfor states to redraw congression-al boundaries.Louisiana, Virginia, New Jer-

sey and Mississippi will beamong the first states to receivetheir redistricting data next Feb-ruary.The 2010 census results also

are used to distribute more than$400 billion in annual federal aidand will change each state’sElectoral College votes begin-ning in the 2012 presidentialelection.

The Associated Press contributed to this report.

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Page 6: LMD January 2011

Page 6 Livestock Market Digest January 15, 2011

“Cow Fertility in Arid Environ-ments” by Milton Thomas,NMSU professor in the Collegeof Agricultural, Consumer andEnvironmental Sciences’ Animaland Range Sciences Depart-ment.The program concludes with

the afternoon Stocker/FeederCattle production sessionaddressing “Weight Considera-tions” by Ted McCollum, TexasAgriLife Extension; “VaccineTechnology: What is on theHorizon?” by Glenn Rogers,Pfizer Animal Health; and“Managing the Weight Gain inStockers” by McCollum.There is a $50 registration fee

for the symposium. Checksshould be made payable toSWBS Acct. #229100. For moreinformation and to register forthe program online, visit theSouthwest Beef Symposiumwebsite at swbs.nmsu.edu. Reg-istration forms can also bemailed to: Bruce Carpenter,Texas AgriLife Extension Cen-ter, Box 1298, Ft. Stockton,Texas, 79735.

The Southwest Beef Sym-posium, jointly hosted bythe New Mexico StateUniversity (NMSU)Cooperative Extension

Service and Texas AgriLifeExtension Service, is scheduledfor Tuesday and Wednesday,January 18 and 19, in the GrandPlaza Room of the AmarilloCivic Center, 401 S. Buchanan

St., Amarillo.The educational forum, tai-

lored for beef producers, wasestablished seven years ago toprovide timely information annu-ally about current industry issuesand practical management. Theevent alternates between loca-tions in New Mexico and Texas.NMSU hosted the event lastyear in Tucumcari.

“The symposium is an annualopportunity for beef producersto get a bona fide perspective ofcurrent issues facing the industryfrom nationally recognizedspeakers,” said Manny Encinias,NMSU Extension beef special-ist.Guest speaker Dennis Avery,

director of the Center for GlobalFood Issues at the Hudson Insti-tute in Washington, D.C., willopen the symposium on the top-ic of feeding the world.“Dennis Avery is sure to pro-

vide a thought-provoking plat-form that producers will findbeneficial,” Encinias said.Avery served as agricultural

analyst for the U.S. Departmentof State from 1980 to 1988,where he was responsible forassessing the foreign-policyimplications of food and farmdevelopments worldwide.At the Hudson Institute,

Avery continues to monitordevelopments in world food pro-duction, farm productiondemand, the safety and securityof food supplies and the sustain-ability of world agriculture. As astaff member of the President’sNational Advisory Commissionon Food and Fiber, he wrote thecommission’s landmark report,“Food and Fiber for the Future.”The January 18 program will

begin at 1 p.m. with the CurrentIssues: Stand Up and Be Count-ed session, followed by anevening steak dinner. The Janu-ary 19 program will run from7:45 a.m. to 3:30 p.m. andinclude a lunch sponsored by Hi-

Pro Feeds.In addition to Avery’s talk, the

current issues section featuresdiscussions on “The CarbonCycle and Beef Production” byDr. Brent Auvermann, TexasAgriLife Extension; “Manage-ment Technologies and the Car-bon Footprint of Beef Produc-tion” by Dr. Jim MacDonald,Texas AgriLife Extension; and“Management Technologies andFood Safety” by Dan Upson,Kansas State University.“The second day of the sym-

posium has always been focusedon addressing timely manage-ment issues,” Encinias said.The morning production ses-

sion, Setting the Stage for theNext Five Years, will includetalks on “Production Costs andParameters for Cow-Calf Pro-duction in North Texas and NewMexico” by Stan Bevers, AgriL-ife Extension; “You and YourHeifers” by Rob Hogan, TexasAgriLife Extension; “ManagingFertility in Cows and Bulls” byEncinias and Bruce Carpenter,Texas AgriLife Extension; and

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Labeling Law continued from page one

Legislative Affairs Kristina Butts, in a release. “We wish USDAwould have granted our request for an 18-to-24-month imple-mentation period, [but] we are hopeful USDA will work withindustry to find the least disruptive and most cost effective wayto implement the rule.”And Rep. Rosa DeLauro (D-Conn.), Chairwoman of the

FDA and Agriculture Appropriations Subcommittee, said,“This new rule is an important step forward in helping con-sumers make informed choices about what they feed their fam-ilies. Our country is facing an obesity epidemic, and if we are tomake any progress against this problem, it is critical that con-sumers have access to nutrition information about the foodsthey buy at restaurants and at grocery stores.”

Page 7: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 7

Agriculture Secretary TomVilsack announced in midDecember, that theUSDA is seeking propos-

als for projects that will bringpartners together to help farm-ers, ranchers and private nonin-dustrial forest landowners imple-ment beneficial water and landconservation practices. Proposalswill be due by January 28, 2011.“Farmers, ranchers and own-

ers of forest land play pivotalroles in protecting and enhanc-ing natural resources,” Vilsacksaid. “Our goal is to supportprojects that will improve thehealth of the natural resourceson their land and bring the envi-ronmental and economic bene-fits of conservation to their localcommunities.”The requirements for submit-

ting project proposals for theAgricultural Water Enhance-ment Program (AWEP) and theCooperative Conservation Part-nership Initiative (CCPI) can beviewed at www.regulations.gov.USDA’s Natural ResourcesConservation Service (NRCS)will provide financial and techni-cal assistance to eligible produc-ers in approved project areas.Through AWEP, NRCS pro-

vides support for projects thatconserve and improve waterquality, use irrigation water effi-ciently, mitigate the effects ofdrought and climate change andtake other actions that benefitwater resources. NRCS entersinto partnership agreements withfederally recognized IndianTribes, state and local units ofgovernment, agricultural andforestland associations, and non-governmental organizations tohelp landowners plan and imple-ment conservation practices indesignated project areas.Twenty-eight projects

approved for AWEP in fiscalyear (FY) 2010 are supportingwater conservation efforts innine states. For example, inLuna County, New Mexico, $2.4million was provided to helpfarmers on irrigated crop landconvert irrigation systems frominefficient flood irrigation tohighly effective drip (or micro-irrigation) systems. It is estimat-ed that several hundred acre-feetof water will be saved over a ten-

year period.Through CCPI, NRCS and

partners assist producers inimplementing conservation prac-tices on agricultural and nonin-dustrial private forest lands.NRCS leverages financial andtechnical assistance with part-ners’ resources to install soil ero-sion practices, manage grazinglands, improve forestlands,establish cover crops, and reduceon-farm energy usage and otherconservation measures. CCPI isopen to federally recognizedTribes, state and local units ofgovernment, producer associa-tions, farmer cooperatives, insti-tutions of higher education andnongovernmental organizationsthat work with producers.Twenty-six projects in 14

states were approved for CCPIin FY 2010. There were two sig-nificant CCPI projects whichbegan last year in New Mexico.The Arizona-New Mexico Bor-derlands Initiative is designed toimprove more than 10 millionacres of grazing land along theNew Mexico and Arizona bor-der. In New Mexico, ranchers inGrant, Hildago and Luna Coun-ties applied for CCPI funding

that reduces invasive shrubs,improves soil conditions andwater use, and create a betterhabitat for wildlife.CCPI also funded the Graz-

ing Lands Restoration Initiativein FY 2009, providing $1 millionto the New Mexico Associationof Conservation Districts to sup-port numerous projects in NewMexico. Through a separateagreement with the U.S. Depart-ment of Interior – Bureau ofLand Management, ranchers arereceiving additional financialassistance to implement a widerange of conservation practices.

Proposals for AWEP and CCPIprojects must be received byNRCS by Jan. 28, 2011. Visit www.nrcs.usda.gov/programs/awep andwww.nrcs.usda.gov/programs/ccpiweb pages to learn more.2010 represents the 75th year

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(WTO) as foot-and-mouthdisease free. Even though thedisease occurs elsewhere inthe country. This change inU.S. policy according to oneofficial “was expected toimprove the revenues of largeBrazilian meat companies.”Let’s see, who would that be?“Another effect will be theopening of other markets tofresh Brazilian meat, such asJapan and South Korea,which respect the U.S.inspection service.”

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Down The Rivercontinued from page one

Page 8: LMD January 2011

Page 8 Livestock Market Digest January 15, 2011

Five cattle marketfactors to watch in 2011by RITA JANE GABBETT, meatingplace.org

Cattle prices across theboard are expected to postyear over year increases in2011, according to Oklaho-

ma State University ExtensionLivestock Marketing SpecialistDerrell Peel.In an outlook report, Peel pre-

dicted cattle prices will likely riseinto “uncharted waters” in 2011.He identified five market factorsexpected to have the biggestimpact on market prices.

Beef demand. Projecteddecreases in beef production in2011 will pressure wholesale andretail beef prices higher. The abil-ity to pass on the impacts ofreduced beef supplies willdepend on continued recovery inbeef demand. Recessionaryweakness continues to limit mid-dle meat demand though signs ofrecovery were evident at the endof 2010. Increased competingmeat supplies, mostly increasedpoultry production, may temperretail beef prices somewhat.

Herd Expansion . . . orNot? Limited cattle numbers areexpected to result in reduced cat-tle slaughter in 2011. The magni-tude of feeder supply squeezingwill depend on the extent ofheifer retention in the comingyear. Though not yet confirmedby data, there were indications atthe end of 2010 of limited heiferretention. The question of herdrebuilding will determine justhow tight cattle supplies are in2011 and also the timetable forpotential increases in beef pro-duction in coming years.

2011 Crop Conditions. A2010 corn crop that fell justshort of record levels was stillshort enough to push corn pricessharply higher. Projected cropyear ending stocks are at levelsthat make the feed grain marketsextremely sensitive to anticipat-

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by LAUREN MORELLO, ClimateWire (New York Times)

A60-year drought thatscorched the Southwestduring the 12th centurymay be a harbinger of

things to come as greenhousegases warm the Earth, accordingto research published in midDecember in the Proceedings ofthe National Academy of Sci-ences (PNAS).The study’s authors used tree

rings to reconstruct a portrait ofdroughts that struck the South-west over a 1,200-year periodstretching back to 900 A.D.They believe that understandingthe droughts of the past couldhelp water managers plan for

future dry periods that areexpected to become moreintense as climate change wors-ens.Portions of the Southwest

have suffered prolonged droughtsince 2001. But the medievaldrought, which peaked along theColorado River between 1146and 1155, stands as the worstdrought in the region for at least1,200 years, according to thetree ring records.Still, there are similarities to

present-day conditions. Themedieval drought occurred dur-ing a period from 900 to 1300A.D. when the Southwest wasabout 1 degree Celsius warmerthan average. Temperatures inthe Southwest have been more

than 1 degree Celsius warmerthan average since 1990, and cli-mate models suggest greaterwarming by the end of the cen-tury.It’s not a perfect comparison,

said the study’s lead author, Uni-versity of Arizona paleoclimatol-ogist Connie Woodhouse. Tem-peratures are warmer now thanthey were in the 12th century,when it was drier than it is today.But Woodhouse says themedieval scorcher represents a“conservative” worst-case sce-nario for future Southwestdroughts, and the region’s watermanagers should take heed.“There’s no reason to believe

that we won’t have a drought likethat in the future,” she said, “butwe’re going to have warming ontop of that.”A region where the cost of

inaction will be ‘particularly high’Woodhouse’s work is one of sev-eral papers on climate changeand drought in the Southwestpublished recently by PNAS.

Page 9: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 9

ed grain supplies. Crop marketswill likely be especially focusedon evolving crop conditions thatwill have a large impact on over-all feed grain price levels as wellas increased volatility from thepre-planting period through har-vest. Crop prices and volatilitywill continue to have a bigimpact on livestock industries ingeneral and in cattle, especiallyon the feedlot sector.

International Trade.Strong beef exports providedcritical support for cattle marketsin 2010. Beef exports are expect-ed to increase again in 2011,albeit at a more modest rate ofgain. Global demand for beef isexpected to continue growingthough country specific econom-ic conditions and currencyexchange rates will have a largeimpact on specific trade flows.Beef exports and imports bothhelp the beef industry to improvedomestic beef demand by chang-ing the mix of products to bettermeet the preferences of U.S.beef consumers and increasetotal value to the industry.

Forage Conditions. Beefindustry responses to the twinforces of limited cattle numbersand high feed grain pricesdepend on forage use. There arecontinued strong incentives forincreased cow-calf productionand for forage based stocker pro-duction. The quantity and quali-ty of forage will have a bigimpact on both the level of pro-duction and the timing of feedercattle flows in the coming year.Currently, the La Niña weatherpattern is producing dry condi-tions across much of the South-ern Plains and Southeast regionsthat may impact winter grazingsystems. Should dry conditionscontinue to develop and extendinto the growing season, theimpact on cow-calf productionand summer grazing programscould be very significant. Wide-spread drought in major cattleregions could offset producerintentions with respect to possi-ble herd rebuilding.

The U.S. Census Bureau esti-mates that, by 2030, the South-west will be home to more than67 million people. Within 50 to100 years, the current popula-tion could double.Even without the added pres-

sure of climate change, thatwould stress the region’s watersystem, said John Sabo, a seniorfellow at Arizona State Universi-ty’s Global Institute of Sustain-ability, who served as lead authorfor one of the new studies.His work shows the South-

west currently uses 76 percent ofits surface water, a number thatcould rise to 86 percent whenthe region’s population doubles.That’s not enough to support theSouthwest’s growing communi-ties and agriculture sector whilealso leaving enough water in itsrivers to support healthy ecosys-tems.“Part of the challenge we face

in the Southwest is old-stylethinking,” said Peter Gleick,president of the Pacific Instituteand an author of another analy-sis. “We brought to the South-west very European ideas aboutwater, developed in water-richareas . . . That worked OK for awhile, although not really. Butnow it’s clear that green lawnsand unlimited swimming poolsand inefficient irrigated agricul-ture can't be sustained.”Gleick says the solution lies in

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Together they sketch a portraitof a region where a combinationof climate change and explosivepopulation growth could bringabout a water crisis in comingdecades.“Because climate warming

will exacerbate water sustainabil-ity problems, the Southwest islikely to experience some of thehighest economic expenses andenvironmental losses,” said GlenMacDonald, director of the Uni-versity of California, Los Ange-les’ Institute of the Environment,and an author of one of the newpapers. “The ultimate costs ofinaction in curbing greenhousegas emissions will be particularlyhigh for the Southwest.”Explosive population growth

over the past century has pushedthe Southwest’s relatively meagerwater supply to unsustainablelevels of use, the PNAS studiesconclude.The region’s population grew

from 2.1 million to more than 50million during the 20th century.

wastewater, policies to encour-age more efficient water use,efforts to coordinate water policyat local, state and federal levels,and planning to help water utili-ties adapt to climate change.Best-case scenario ‘is not too

good’ “I don’t consider theSouthwest unique,” he said. “Iconsider them the first dyingcanary in the coal mine . . .There is more and more evidencethat climate changes are going tobe felt in the Southwest earlyand deeply.”Still, it’s not yet clear whether

climate change is a factor in thecurrent drought, scientists said.“A lot of what we’re seeing is

caused by natural variability,”said Richard Seager, a climatescientist at Columbia Universi-ty’s Lamont-Doherty EarthObservatory. “There is this back-ground steady drying of theregion that is occurring due torising greenhouse gases, andvariability is moving aroundthat.”Over the past three decades, a

trend toward more frequent LaNiña weather patterns hashelped drive Southwesterndrought, Seager said, by influ-encing sea surface temperaturesin the tropical Pacific Ocean.Whether that trend will con-

tinue in coming decades isn’tclear. If the pattern switches tofavor El Niño systems, whichtend to send more stormsthrough the Southwest, droughtscould be gentler — at first.

Page 10: LMD January 2011

Page 10 Livestock Market Digest January 15, 2011

mass without increasing the agri-cultural footprint, meaning farm-ers and ranchers can producemore plant material from thesame sized field. Plants that haveincreased density hold greatpotential to be used to producebiofuels, electricity and evenadvanced materials, like carbonfiber. “This is a significant break-

through for those developingimproved plants to addresspressing societal needs,” saidRichard Dixon, D. Phil., directorof the Noble Foundation’s PlantBiology Division. “This discoveryopens up new possibilities forharnessing and increasing thepotential of crops by expandingtheir ranges of use. These plantswill be part of the next genera-tion of agriculture which notonly impacts food, but manyother vital industries as well.” Huanzhong Wang, Ph.D., a

postdoctoral fellow in Dixon’slab, found a gene that controlsthe production of lignin in thecentral portions of the stems ofArabidopsis and Medicago trun-catula, species commonly used asmodels for the study of plantgenetic processes. Lignin is acompound that helps providestrength to plant cell walls, basi-cally giving the plant the ability tostand upright. When the newlydiscovered gene is removed, thereis a dramatic increase in the pro-duction of biomass, includinglignin, throughout the stem.Research targeting plants that

are grazed by animals has histor-

ically focused on reducing ligninproduction within the plant.However, increasing lignin innon-food crops, such as switch-grass, may be desirable forincreasing the density of the bio-mass and producing more feed-stock per plant and, therefore,more per acre.

“In switchgrass, as the plantmatures, the stem becomes hol-low like bamboo,” Dixon said.“Imagine if you use this discoveryto fill that hollow portion withlignin. The potential increase inbiomass in these new plantscould be dramatic. This technolo-gy could make plants better suit-ed to serve as renewable energysources or as renewable feed-stocks to produce advanced com-posite materials that consumersdepend on every day.”Additionally, further research

with collaborators at the Univer-sity of Georgia revealed thatremoval of the gene also canincrease the production of carbo-hydrate-rich cellulose and hemi-cellulose material in portions ofthe plant stem. These are thecomponents of a plant that are

converted to sugars to createadvanced biofuels, such as cellu-losic-derived ethanol or butanol.More celluloses and hemicellu-loses mean more sugars to usefor carbohydrate-based energyproduction.“Science often progresses in

increments,” Dixon said. “Everyonce in a while, though, youhave a significant breakthroughthat helps redefine the research.This is certainly one of thosemoments for our advanced feed-stock program.”This project is supported by

the United States Department ofEnergy and the Oklahoma Bioen-ergy Center. It builds upondecades of research by Dixon'sgroup, which has already demon-strated the ability to reduce ligninin plants as well as modify itscomposition and characteristics. The potential lies in the com-

bination of these current andpast discoveries to maximize theusefulness of agricultural crops;achieve more from less throughthe application of technology;and design agricultural feed-stocks to produce sustainablesources for energy and othervaluable industrial products. This research was recently

published in Proceedings of theNational Academy of Sciences(PNAS) as well as selected as anEditors’ Choice feature in Sci-ence. Since its establishment in1914, PNAS is one of the world'smost cited, multidisciplinary sci-entific serials that publishes cut-ting-edge research reports, com-mentaries, reviews andperspectives. Science is regardedas the world’s leading journal fororiginal scientific research, glob-al news and commentary.

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Gene Discovery Could Increase Value of Non-Food Crops for Industries Outside of Agriculture

Scientists at The SamuelRoberts Noble Foundationhave uncovered a generesponsible for controlling

key growth characteristics inplants, specifically the density ofplant material. Denser plants have more bio-

“This discovery opens up new possibilities for harnessing and

increasing the potential of crops by expanding their

ranges of use.”

Page 11: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 11

by SHELLEY LITTIN, NASA Space Grant intern, University of Arizona Communications

Adding oregano to meatbefore grilling couldreduce the formation ofpotentially cancer-causing

compounds by up to 78 percent,University of Arizonaresearchers have found. Thespice also helps inactivate harm-ful E. coli O157:H7 in the meat.Research conducted by UA

microbiologist Sadhana Ravis-hankar has shown that a com-pound in oregano reduces theformation of heterocyclicamines, the potentially cancer-causing culprits that can form ingrilled meat.“We are preventing the forma-

tion of potentially carcinogeniccompounds in the grilled meatitself, so people can eat safergrilled meat,” said Ravishankar,an assistant professor in theUA’s department of veterinaryscience and microbiology in theCollege of Agriculture and LifeSciences.Her study was published in

the Journal of Agricultural andFood Chemistry.Heterocyclic amines form in

grilled, charbroiled or fried meatin two essential steps. First, araw juicy hamburger is slappedon the grill. As the meat heatsup, amino acids and glucose inthe meat react with each other tocreate molecules known as inter-mediates. Next, these intermedi-ates react with creatinine, a mol-ecule that is present in muscle.The result is heterocyclic amines.Once the nice and crispy

hamburger is eaten, the hetero-cyclic amines potentially couldlead to cell malfunction. Severalepidemiological studies haveshown a possible correlationbetween the consumption ofwell-done meats and differenttypes of cancers in humans.So maybe people can live

without that extra crispy textureon their meat. Unfortunatelythat strategy has a pitfall too:There are established standardsfor cooking ground beef in orderto eliminate harmful E. coli bac-teria in the vast majority of com-mercial meat. Restaurants oftenrecommend well-done meat tominimize the potential for food-borne illness.“The ground beef patty has to

be heated to a temperature of 71degrees Celsius to kill E. colibacteria,” said Ravishankar.“When they say 71 degrees, thatmeans the cold spot at the geo-metric center of the ground beefpatty. What happens is whenyou’re grilling or broiling or fry-ing, it takes longer for the geo-metric center to reach 71degrees while the periphery ofthe meat has already reachedthat ahead of time and the tem-perature continues to rise. The

higher the temperature, themore the formation of hetero-cyclic amines.”So it’s E. coli on one hand,

and potential carcinogens on theother. Not the best of choices.Luckily, a plant compoundfound in oregano may be a solu-tion to both problems.“We added the active ingredi-

ent of oregano oil, called car-vacrol, to the meat. Then wegrilled the meat, and we wereable to reduce the formation ofthese compounds,” said Ravis-hankar. “Carvacrol has anti-oxidative properties, so we arethinking that it binds to or reactswith some of the intermediatesand prevents them from formingthe heterocyclic amines. Themechanism is not clear yet.”Carvacrol also has antimicro-

bial properties that inactivate E.coli: a membrane-active com-pound, it breaks the chain of fat-

ty acids that makes up the outermembrane of an E. coli cell,causing the cell to leak its con-tents.“We are also hoping that by

using these compounds we canreduce the temperature of heat-ing to inactivate E. coli,” saidRavishankar. “If you reduce thetemperature of heating, you canreduce the formation of hetero-cyclic amines automatically.”Collaborating with Mendel

Friedman at the U.S. Depart-ment of Agriculture’s Agricultur-al Research Service WesternRegional Research Center inAlbany, Calif., Ravishankar iscurrently testing other anti-oxidative and antimicrobial plantcompounds and extracts to findout if they have similar effects ascarvacrol on grilled meat.To prevent compromising the

meat flavor and taste, Ravis-hankar’s lab is testing differentcombinations of plant com-pounds. “We plan on evaluatingdifferent combinations in such away that you reduce the hetero-cyclic amines, inactivate E. coli,and at the same time you keepthe flavor of the ground beefpalatable,” said Ravishankar.In the future, Ravishankar

would like to test the effects in

animal studies designed to findout whether consumption ofmeat containing plant com-pounds helps protect againstboth infection and cancer.Meanwhile, Ravishankar’s

research has shown for the firsttime a way to simultaneouslyinactivate harmful E. coli and

reduce the formation of poten-tially carcinogenic compounds ingrilled meat itself, hopefully sav-ing us from a future filled withmedium-rare food.This research is funded by a

grant from the American CancerSociety through the ArizonaCancer Center.

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Grilled Meat + Oregano = Reduced Cancer, Foodborne Disease RisksResearch conducted by UA microbiologist SadhanaRavishankar has shown that a compound in oregano reduces the formation of potentially cancer-causingcompounds that can form in grilled meat.

Page 12: LMD January 2011

Page 12 Livestock Market Digest January 15, 2011

Compensation is negotiable withbenefits commensurate withexperience and industry stan-dards.Inquiries may be made to

the Corporation’s President,Michael White, at 505/977-1682or [email protected] Matt Rush, Interim ExecutiveVice President, at 575/532-4707or [email protected] apply, please send a cover

letter, resume and/or curriculumvitae by February 15, 2011 toMichael White, P.O. Box 580,Dexter, NM 88230.

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es atop his bald head, a phoneclipped on to his ear and iPodear buds around his neck. Turnsout the guy who used to listenJefferson Airplane now was a bigLady Antebellum fan. It mademe furious that he now liked togroove to country/western musicand I wanted to scream, “Youcan’t do that. That’s my music.Go back to the Grateful Dead,you acid head.”Stoner’s real character came

out at dinner. Surprise, surprise,he and Amber were lacto-ovovegetarians and this guy who’dcrammed an entire pharmacyinto his body every week in

school now didn’t want any for-eign substances in his food. Heordered bottled water because itwas more pure and he tried totell me what to eat! He showed me photos of his

tattooed and pierced five kids bythree different women, one ofwhom ran an “alternativelifestyle” bookstore in San Fran-cisco. Instead of everythingbeing “far out” his every otherword was now “awesome.” Andhere’s the worst part: When Iasked him what he did for a liv-ing he said he worked for theUSDA! This guy who teasinglycalled me “farmer” in highschool, laughed at us when wewore our FFA jackets to school,and wouldn’t know a Holsteinfrom a John Deere, worked for

the USDA! (Food stamp divi-sion). This guy who burned ourflag and hated our governmenthad worked for it ever since hegot back from Canada.When I walked the couple to

their car after dinner I was sur-prised to see a silver Lexusinstead of an old VW bus, and itwas plastered with bumper stick-ers for the Humane Society,Nature Conservancy and “GreenSex.” It turns out that Stoner isnow an activist for reproductiverights and guaranteed access tocontraception. The old hippiewho used to protest that we’d alldie in a nuclear holocaust nowknows we’ll all perish due to glob-al warming. The same old hippieswho believed in free thinking andhaving an open mind are the

The New Mexico Farm andLivestock Bureau is seekinga qualified individual toserve as Executive Vice

President and Secretary-Treasur-er of the Corporation and Affili-ated Farm Bureau Companies.The candidate should have aBachelor’s degree or equivalent,and experience in business andfiscal management, staff supervi-sion, strategic planning, programdevelopment and administration,or a combination of the above. Acomprehensive position descrip-tion is available on request.

Riding Herd continued from page one

same people who’ve given uspolitical correctness.As Stoner pulled away he

rolled down his car window andsaid, “Peace and love brother.”And that’s when it hit me: The

New Mexico Farm BureauSeeks Executive

Page 13: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 13

American Shorthorn Association Elects NewBoard

The American ShorthornAssociation (ASA) 2010annual meeting was heldduring the 2010 North

American International Live-stock Exposition (NAILE). Dur-ing the meeting delegates re-elected three ASA boardmembers to serve a three-yearterm. Returning to the board fornewly elected terms are LesMathers, Ill., Ricky Guidry, La.,and Billy Zach Taylor, Ky.Les Mathers from Morton,

Ill., operates Leveldale Farmswhich was established in 1852and is dedicated to breedinghighly fertile, easy calving, andrapid-growing cattle. Mathersgraduated from the University ofIllinois, has a medical degree,and currently serves as the ChiefMedical Officer for Carle Clinic.His philosophy is to work withthe other board members toexpand and improve service toall breeders and exhibitors, andto support the identified strate-gic initiatives already in place. Ricky Guidry from Bell City,

La., owns RL Cattle Co, which isa family herd of about 150 com-mercial cows and 30 Shorthorncows. Guidry served as aResearch Associate with theDepartment of Agricultural Eco-nomics at LSU conductingresearch and teaching freshman-level courses, worked with theFederal Land Bank of BatonRouge doing commercial and aglending, and developed DupontBuilding, Inc. He is dedicated tosupporting agriculture nation-wide and has the desire is to usehis business background to helppromote Shorthorn cattle. Billy Zach Taylor from Salem,

Ky., began integrating Shorthorncattle into the Taylor Stock Farmin 1960, and has shown, pur-chased, and sold cattle since thenin over 25 states and Canada.Taylor brings first hand knowl-edge of several different aspectsof the cattle industry, includingcommercial cattle production,producing registered cattle, andmanaging a backgrounding oper-ation. The Taylor Family hasbeen actively involved in theShorthorn breed and strives toproduce good, sound, functional-ly correct cattle.

earth. Although I don’t agreewith Phil that the land of biboveralls and football is the Foun-tainhead of all great ideas andthings in this world, I would haveto agree with his assessment ofthe folks who live there.Phil isn’t looking to get rich

from his book but instead merelywanted to leave a record abouthis family and the events thatshaped their lives for those rela-tives and friends who come later.He wrote about herding turkeys,milking cows and the everydaywork with horses that made lifeon the farm bearable for him.His stories about the depressionand drouth of the thirties in theSandhills of Nebraska put ourlives today in proper perspective.

Sure they were poor but like Philwrote, “how do you know if youare poor if you’ve never met anyrich people?”Let me warn you, this book is

not one you’re going to sit downand consume in an evening ortwo. It’s a book best enjoyed onebio bit at a time. I made a pointof reading two or three a day andwhen I finished I not only had agreater respect for Phil, but agreater respect for a generationthat is vanishing before our veryeyes right now.You can buy Phil’s book

online, in person from Barnes orNoble or direct from Phil for$24.95 plus three dollars perbook for postage. You don’t haveto be from Nebraska to enjoy it.

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Book Review by Lee Pitts

Ihave known Phil Raynard forall of my professional life,some 38 years now. When Ifirst met him I was all of 21

years old and he was one of theold-timers of the business asPublisher of the California Cat-tleman Magazine. We hit it off

immediately and I, like everyoneelse who has ever met Phil,immediately knew three thingsabout him: that he was extremelyintelligent, extremely witty, andmost importantly to him, that hewas from Nebraska. And veryproud of it!Later on I learned another

thing about Phil: that he waswriting a book. Oh sure, Ithought. Just about every suc-cessful person I’ve ever met hastold me they were writing abook, yet hardly any of them

BOOKREVIEW

It Started In Nebraskaby Phil Raynard

Available from Barnes and Noble, or direct from Phil

have. Well, darned if Phil didn’tdo it, and it’s not just any oldbook, but 419 pages of text withover 250 individual stories, orwhat Phil calls Bio Bits. They areall about his life on the familyfarm near Stapleton, Nebraska,and about his experiences in theNavy. Everyone of the stories isgood for a chuckle or a fondremembrance. Just like Phil, Ifound his book to be intelligentand witty. That Phil titled his book It

Started In Nebraska, came as nosurprise to me because accordingto Phil the world revolves aroundthe state. Although he lives andsells real estate in California hemakes it clear that in his mindthere are no better people on

Page 14: LMD January 2011

Page 14 Livestock Market Digest January 15, 2011

In mid December the non-profit Center for ConsumerFreedom (CCF) pointed tothe 2010 “Watchdog Report”

from Animal People News,which determined the HumaneSociety of the United States(HSUS) spends 50 cents ofevery donated dollar on contin-ued fundraising and additionaloverhead costs. HSUS has a hol-iday fundraising goal of $1.2 mil-

lion, of which a staggering$600,000 will likely go to raisemore money, pay lobbyists, andfund HSUS’s $11 million pen-sion plan. HSUS’s skewedspending priorities leave count-less shelters without funds intoday’s tough economy.Animal People News, the

well-regarded newspaper of theanimal rights movement, studiedHSUS’s 2009 federal income tax

return and determined that 50percent of HSUS costs were“overhead,” not 29 percent asHSUS claims. CCF’s own analy-sis of HSUS’s recent tax filingsindicates that HSUS shares lessthan one percent of the public’scontributions with America’sunderfunded pet shelters.“The holidays are all about

giving but HSUS seems moreinterested in taking, keeping,and wasting,” said David Mar-tosko, CCF’s Director ofResearch. “Homeless dogs andcats deserve better. Americans

should support their localhumane societies which are farmore efficient with each pre-cious dollar.”In addition to the Animal

People News report, HSUSreceived a “D” rating in the

American Institute of Philan-thropy’s most recent quarterly“CharityWatch” guide. AndCharity Navigator now givesHSUS one star (out of four) fororganizational efficiency.These near-failing grades are a

consequence of HSUS’s factory-fundraising practices and incom-

petent nonprofit management.The Los Angeles Times reportsthat of the $8.6 million HSUSraised through California tele-marketing campaigns between1997 and 2006, only $976,000made it to HSUS. And HSUS’smost recent tax return showsthat the group spent an exorbi-tant $3,999 for each animal its“rescue operations” saved.Martosko added, “Animal

lovers need to know the differ-ence between HSUS and realhumane societies. The only wayto be sure your donations willhelp homeless dogs and cats is togive to organizations in your owncommunity.”The Center for Consumer

Freedom is a nonprofit watch-dog organization that informsthe public about the activities oftax-exempt activist groups. It issupported by American con-sumers, business organizations,and foundations.

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Several years ago I made acommercial for the CatfishInstitute. Their office was inBelzoni, Mississippi. The

commercial concluded, “. . . justwrite in care of Miz June. That’sB-E-L-Z-O-N-I. You learned tospell Mississippi in grade school!”I have spent most of my life in

the mountain west so trout hasbeen my primary fish source. ButI come from deep Oklahomaroots and, from my youth, I havebeen a frequent visitor to myOkie farmer kinfolks. Each onehad a pond stocked with bassand catfish. Catfish almost tasteslike meat, whereas trout tasteslike fish.Anybody who lives in the

S.E.C., South East CollegeFootball Conference, appreci-ates that catfish beats countryham and red-eye gravy as thesupper of choice, most of thetime. Catfish is to the Southwhat chile is to the Southwest,brisket is to Texas, crabs to theChesapeake Bay, pizza to mid-dle-school soccer moms, andporridge is to Minnesota.Catfish on the menu still

flourishes but the local catfishfarmer’s market is in decline forthe 6th straight year. Reason:Cheaper imported catfish prima-rily from Asia. Sound familiar?Just ask the three sheepherdersstill in the United States, or askan American Lumberjack if youcan find one, or a shoemaker orsteelworker.America is still capable of sup-

plying all our catfish needs butraising them is now being “out-sourced”. The Catfish Institute

blames higher grain prices as afactor, but I’m guessing even ifsoybeans and corn dropped to lessthan a dollar and the USDA andEPA removed all the catfish regu-lations, the Mong, Vietnameseand Chinese could still furnish itcheaper! The Institute is pushingfor a mandatory “Country of Ori-gin” labeling law. It seems to behaving a dampening effect on ourMexican beef imports.But if Miz June called me and

said, “Bax, what can we do tocompete with foreign catfishfarmers?” I would point to themost successful “value added”(which means you can chargemore) program that I know; Cer-tified Angus Beef. On a privatesector level look at Dole Pineap-ple, Diamond Walnuts, OmahaBeef, Washington Apples, IdahoPotatoes, French Toast, Belgianwaffles and why are FloridaOranges worth more thanEdmonton Oranges or Milwau-kee Oranges?Distinguish your product

from imports with name brandslike: “Cajun Catfish, raised onZydeco music!”“The Crimson Catfish, each

granted an honorary degree fromUniversity of Alabama!” Talkabout a school of fish!“Bentonville Catfish, with the

WalMart Seal of Approval!” How ‘bout “Mississippi River

Baptized Catfish, sprinkled forCatholics and dunked for Bap-tists!”Right now I’m getting hungry

for some good ol’ catfish cookies,or a dish of catfish ice cream . . .with red eye gravy, of course!

The Catfish Institute

www.baxterblack.com

Wasteful Humane Society of the United States Earns a Spot on Charity Watchdogs’ “Naughty” ListsNew Report Concludes 50 Cents Of Every Dollar Donated To HSUS Is Swallowed Up By “Overhead” Expenses

“Animal lovers need to know the difference between

HSUS and real humane societies.”

BaxterBLACK

O N T H E E D G E O F C O M M O N

S E N S E

Page 15: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 15

by KATIE MICIK, DTN Staff Reporter

Superior Livestock’s generalmanager said the companyis lucky that it’s going to beable to withstand the more

than $19 million shortfall it facesdue to Eastern Livestock Com-pany’s collapse.Superior Livestock, an online

and satellite cattle auction serv-ice, is the largest petitioningcreditor in the involuntary bank-ruptcy proceedings against East-ern Livestock. Jim Odle, the general manag-

er and former owner of theonline and satellite cattle auctionservice, also said the industry hasseen rough times before and willmake it through the damagethat’s been left in the wake ofEastern Livestock’s downfall.“It’s hard to see the positive

because it’s been so visibly nega-tive,” Odle told DTN. “If youlook back through the past, therehave been many more dollarslost in dairy, in bank failures. Allwe can do is work, clean up themess and try to keep all the mon-ey from going to attorneys’hands. That’s how it lines up in alot of bankruptcy cases.”Superior Livestock is the

largest petitioning creditor in theinvoluntary bankruptcy proceed-ings against Eastern Livestock.The Grain Inspection, Packersand Stockyards Administrationestimates that Eastern Live-stock’s failure has left more than740 sellers short $130 million.Outside of what Eastern owes

to Fifth Third Bank — the cattlebrokerage is $13 million over-drawn and in default on a $32million loan — Eastern owesSuperior Livestock the most,according to court documents.Superior’s filings in the bank-ruptcy proceedings allege it’sowed $19,270,617.70.And in court filings in Texas,

Superior Livestock has allegedthat Fifth Third Bank failed tofollow its fiduciary responsibili-ties as a lender and contributedto the heavy losses throughoutthe cattle business.Eastern failed to fulfill its end

of the bargain on about 500 con-tracts with Superior between Oct.22 and Nov. 13. Checks worth$8.96 million were returned withthe note “refer to maker,” accord-ing to a spreadsheet included incourt documents. Superior Live-stock stopped depositing thechecks it received from Easternon Oct. 28 and between Oct. 29and Nov. 1 Superior receivedchecks totaling $4.34 million thatit did not deposit. Superiorreceived no payment for $5.98million worth of cattle. Thespreadsheet indicated that someof the cattle sold to Eastern arestill in Superior’s possession, butSuperior has already paid the sell-er for the cattle.Odle said it’s important to

focus on the positive.

“The market has been goodand that’s a blessing,” he said.“We haven’t seen any problemsfilling the gap left by Eastern.”He’s noticed there are more buy-ers than usual bidding in hiscompany’s auctions as morefeedlots are purchasing their cat-tle directly.“Getting Eastern out of the

picture has created competitionin the industry that Eastern hadtaken away,” he said.Eastern Livestock was doing

about $10.75 million of businessevery two days based on a GIP-SA requirement that Easternincrease its bond to $1.15 mil-lion and the formula used tocompute bond amounts. (DTNsubscribers can find more detailsabout how GIPSA computesbonds by reading “GIPSAExplains Bond Process” in theRecent Features section.)Superior is involved in another

case resulting from the confusionof Eastern Livestock’s collapse.Three large feeders in Texas —

Friona Industries, Cactus Grow-ers and J&F Oklahoma Holdings— have asked the federal court inAmarillo to sort out funds thatare in dispute. After EasternLivestock’s checks bounced,many sellers turned to the feed-lots, who received the cattle soldthrough Eastern, requesting pay-ment be made directly to themand not through Eastern.Instead of making payments,

the feedlots deposited the dis-puted funds with the court,about $6.9 million between thethree feeders. The feedyards arerequesting that the court allowthem to recoup the cost of downpayments made on cattle thatEastern didn’t deliver and allowthem to recover what they’ll losein replacing those cattle at ahigher price, according to courtdocuments. Then, they’rerequesting the court figure outwho will be paid what.Messages left for the lawyers

for Cactus Growers, FrionaIndustries and J&F OkalahomaHoldings by DTN were notimmediately returned.Superior Livestock was

involved in business transactionswith all three feeders throughEastern Livestock, according tothe court documents. Superiorhas only filed an answer toFriona’s claim.In court documents, Superior

Livestock argues that it’s entitledto $776,109.69 of the$2,542,846.79 interpled funds,which is the legal term for thecontested funds deposited withthe court by Friona. Odle said hecan’t blame Friona for taking thelegal route it did.“They just want to know who

to pay,” he said. “I’d rather seethat than what lots of people aredoing, just waiting for someoneto demand payment. That’s beinga little bit dishonest I think bynot interpleading that money andusing it to keep buying. It will allshake out, but it’s not a fun deal.”Perhaps one of the more

interesting parts of SuperiorLivestock’s answer in the case is

the cross claim it makes againstFifth Third Bank. The Cincin-nati-based bank’s lawsuit againstEastern Livestock argues that it’sthe creditor that should be paidfirst. Superior is arguing that ifFifth Third Bank claims anyinterest in the proceeds of theSuperior-Friona transactions, thecourt should favor Superiorbecause the bank “engaged ininequitable conduct with respectto Superior.”Superior’s cross claim argues

that Fifth Third was familiar withall aspects of Eastern’s businessand “knew or should have known

that Eastern’s business practices,including those involving theSuperior-Friona Lots, wereunsound” and that “Fifth Third’sdecision to permit the practicesto continue put cattlemen andcattle auctioneers, such as Supe-rior, at risk of loss. Nevertheless,Fifth Third allowed Eastern’spractices to continue, andallowed $19,000,000 of Eastern’schecks payable to Superior anddrawn on Eastern’s account withFifth Third to be returned.”A media representative from

Fifth Third Bank declined tocomment on ongoing litigation.

Louis Brown • [email protected]/576-2207 • 575/403-8765626 Route 66, Bard, NM 88411

BrownFarms Inc.

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Jauer Dependable Genetics31059 Juniper Ave.Hinton, IA 51024

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• Roger ph. (712) 947-4357• Kurt ph. (712) 947-4338• Doug email [email protected]• Internet bidding www.liveauctions.tv

34th Annual Angus Bull & Female Sale

At Jauer Dependable Genetics, the scope of our programcontinues to be the production of efficient Angusmamma cows. We have over 30 years of experiencelinebreeding low maintenance - maternal lines of cattleto produce consistent, predictable, balance traitedoffspring that can be profitable in any environment. Weare one of the few Angus herds in the country that haveconsistently proliferated high capacity, low input cattlethrough the use of elite cow makers like DHD Traveler6807. Our cattle work in real world environments . Theythrive on grass and forage diets and will not needsupplemental grain to maintain their body condition.

Our 34th Annual Angus Bull and Female Sale will featurean excellent set of bred females and bulls from elite cowmaker sires like the outstanding 6807 grandson, and thetremendous double-bred 6807 grandson, pictured at right.

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auer Dependable GeneticsJ

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January 29, 2011 • 12:30 p.m.

Superior Livestock to Survive LossesEastern Livestock Owes Superior $19 Million

Page 16: LMD January 2011

Page 16 Livestock Market Digest January 15, 2011

DP main targetThose funds could be redi-

rected to producers. “But directpayments will be a main target,”Outlaw said.Agricultural commodity groups

will need to prioritize issues.“Each group will want a fair share.“We see a lot of uncertainty.

All people in Washington wantto talk about are the budget andthe deficit. They are looking forplaces to cut, and agriculture willtake a hit. I expect to see moremoney spent on crop insurancethan on commodity programs.”Nutrition programs will claim

75 percent of the agriculturebudget.Outlaw said uncertainty also

hangs over the ag committees.Frank Lucas, R-Okla., will be thenew chair of the House Agricul-ture Committee and has been astrong supporter of agriculture.Less known will be the Senatechairman, Debbie Stabenow, D-Mich., who will replace BlancheLincoln. “She (Stabenow) is anunknown entity,” Outlaw said.“Losing Lincoln was a big hit.She knew southern crops.”He said the Brazil cotton case

also will weigh on farm billdebates as legislators contem-plate the $147 million a yearpaid to “Brazilian farmers tomake them better. That will notsit well in Washington. And therest of the world will look at cot-ton in the next farm bill.”Outlaw expects debate to

begin in 2012. He said CollinPeterson would have begun theprocess in 2011, but Lucasprefers to “stick with the currentprogram. They can’t do muchwith the farm bill until theyknow how much of a cut agricul-ture will take.”

Source URL: http://deltafarmpress.com/government/farm-program-cuts-be-deep

by RON SMITH

Significant cuts are comingto farm programs when thenext farm bill becomes law,probably in 2012.

“All signs point to less of asafety net. I can’t put a positivespin on what’s happening inWashington,” said Joe Outlaw,professor and Texas AgriLifeExtension economist. “Congresscan’t take less money and makeeveryone better off.”How deep could the cuts go?

Depends on whose numbers getthe most attention, but proposedcuts by either the National Com-mission on Fiscal Responsibilityand Reform or the BipartisanPolicy Center indicate severereductions, Outlaw said.The former would eliminate

$1 billion out of a $6 billion total.The latter would take $3billion,half the current budget.“The 2002 farm bill had $11

billion in the commodity pro-gram,” Outlaw said during theTexas Plant Protection Associa-tion annual conference in Col-lege Station. “In 2008, we got$6 billion.” Funding for cropinsurance doubled and nutri-tion program funds more thandoubled.Outlaw said 38 programs in

the 2008 farm bill do not havebaselines to carry them forward.He said one possibility congressmight consider is redirectingfunds to “those at risk. Forsorghum, cotton, rice and wheat,direct payments are going tolandowners. The safety net is notgoing to farmers.”

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505/243-9515, ext. 30; or Colorado office:720/242-8032 (direct line)

Arizona sausageprocessor plans expansionby TOM JOHNSTON

APhoenix-based sausageprocessor will spend $30million on an expansionplan that includes opening

seven restaurants in the city andadd 200 jobs.Stanley’s Homemade Sausage

Co., the Arizona Republicreported, will expand by Decem-ber 2011 to 250,000 square feetof retail, deli and restaurantspace from 7,000 square feet.Marko Stovanovic, Stanley’s

chief operating officer, was quot-ed as saying the company’s cus-tomer base is growing. Mean-while, the lagging economyprovided an opportunity to buyproperty and build on the cheap.The new business will com-

prise a cooler and storage forsausage, snack-food products,beef jerky, poultry and a donationsite for food banks. Stanley’s sells76 meat products, the majority ofthem sausage, according to theArizona Republic.

Farm program cuts to be deep

Page 17: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 17

Secretary of Interior KenSalazar, on November 15,2010, signed a SecretarialOrder elevating the Office

of the National Landscape Con-servation System and Communi-ty Partnerships in the Bureau ofLand Management (BLM) tothe level of a directorate withinBLM. In response to the Secre-tarial Order (the Order), thePublic Lands Council (PLC);American Sheep Industry Asso-ciation (ASI); National Cattle-men’s Beef Assoc. (NCBA); and19 other livestock groups sent aletter to Secretary Salazar, voic-ing their concern that the Order

could threaten livestock grazingon BLM lands.The National Landscape

Conservation System (NLCS)was codified in the OmnibusPublic Lands Act of 2009 inorder to “conserve, protect, andrestore nationally significantlandscapes.” It consists ofapproximately 10 million acres ofnational monuments, nationalconservation areas, and otherspecially designated BLM lands.By merit of statute, livestockgrazing occurs on much ofNLCS land. According to PLCpresident John Falen, the lawsmandating grazing on NLCS

lands are not given due consider-ation in the Order.“The Order says multiple uses

such as grazing may be allowed,as long as they are not ‘in conflict’with the ‘values for which [NLCScomponents] were designated’,"said Falen. “That leaves a lot ofroom for litigious environmentalgroups to claim that grazing is ‘inconflict’ with conservation —even though well-managed graz-ing is documented to actuallypromote healthy ranges. In fact,grazing on federal lands keepsmany ranching families in busi-ness, which is critical in preserv-ing vast open spaces. We are avital part of the conservationeffort, not a burden to it.”Steve Foglesong, president of

the National Cattlemen’s BeefAssociation, expressed concernregarding the possibility of expan-sion of the NLCS portfolio.“The Secretary stated that

NLCS is a ‘successful model forour nation.’ If NLCS continuesto grow, managed under the con-cepts put forth in the Order, wehave a lot of questions about thedirection it will take the BLM,whose mission is based on man-agement for multiple use,” saidFoglesong. “Our members needassurance that they will continueas part of a vibrant, workinglandscape.”

Southeastern N.M. Ranches For Sale

MOATS RANCH – 20,565 Total acres, 12,025 deeded.Thirty miles north of Roswell, N.M. along and on bothsides of U.S. Highway 285. 400± Animal Units Yearlong.Three wells and pipelines.

DEGANAHL RANCH – 5,635 Total acres, 960 deeded.BLM grazing permit for 164 Animal Units Yearlong. 40miles northwest of Roswell, NM north of State Highway246. New improvements, three wells and pipelines.

Contact: SCOTT MCNALLY, Qualifying Broker, C: 575/420-1237www.ranchesnm.com

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� FINE AG LAND! Historic property – in the same family since 1857. 70.5acres with 57 irrigated. Also included 12+ acre side lot with homesite pos-sibilities. $879,000.

� PROFESSIONALLY DESIGNED EQUESTRIAN FACILITY! Multiple dwellings,w/potential of 2 spectacular additional homesites on 362.70 acres. 220acres of irrigated ground. Wine grape study shows 180 potential vineyardacres. Engineered drainage system, well designed 240 x 120 covered arenawith attached viewing area, multiple wash rack tack and fitting facility,40 x 40 vet barn with 2 stalls, as well as 26 shed row stalls all with runs.$4,900,000.

� WORLD�CLASS FLY FISHING WATERS! 1,704 ACRES. 2¼ miles of UpperWilliamson River frontage, bordering National Forest. Rustic cabin andshop, meadows and timber. $2,450,000.

� MOUNTAIN SHADOWS RANCH, 182 TRANQUIL ACRES. Existing home andsecond approved home site. 1.1 million net board feet of marketable tim-ber, including a year-round creek and pond with water rights. 50+ acresof irrigated hayfield and pasture. Gravity flow spring produces abundantwater. $2,184,000.

� A SELF-CONTAINED RANCH OF 328 acres. Scenic creek front property with2 homes. Water rights dated 1865 for 100 acres of pasture. Currently run-ning 65 cows. Indoor arena, 2 feed barns, one with covered working cattleequipment. $1,500,000.

� ONE�OF�A�KIND 267.60 ACRE RANCH with tall trees and meadows sur-rounding the historic lodge. Multiple living quarters in private setting.Gravity wheel-line irrigation system irrigates 240 acres. Over 12,000 feetof drain tile insure highly productive meadows. 2 large barns and rangerights. $2,700,000.

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by LISA M. KEEFE

The USDA’s Food Safetyand Inspection Service(FSIS) announced severalmeasures to better enforce

humane handling laws for cattleslaughtered at FSIS-inspectedfacilities.Among the new measures the

agency announced are:Inspection personnel are

instructed to condemn andpromptly euthanize all non-ambulatory mature cattle,regardless of the reason for theanimal’s non-ambulatory status,to ensure they are humanelyhandled. The clarification isintended to ensure that the poli-cy is consistently applied at allfederally inspected establish-ments by resolving any uncer-tainty on how inspectors shouldinterpret existing rules. The agency will respond to

and solicit comments on peti-tions from the Humane Societyof the United States (HSUS)and Farm Sanctuary. FSIS willsoon publish a federal registernotice providing the tentativeconclusions FSIS has drawnregarding each petition and ask-ing for public comment on both.FSIS will appoint an Ombuds-

man in the Office of Food Safetyspecifically to address humanehandling issues. The ombudsmanwill provide FSIS employees achannel of communication tovoice their concerns when thestandard reporting mechanismsdo not adequately address out-standing issues. The USDA Office of Inspec-

tor General will audit industryappeals of noncompliancerecords and other humane han-dling enforcement actions byFSIS inspection program person-nel to help determine whetherFSIS has adequately handledhumane handling violationsidentified by inspection person-nel and challenged by an estab-lishment. The audit will give theAgency a better picture of howwell the appeals process works,and if problems are found, FSISwill take action to address them.FSIS will deliver enhanced

humane handling training to giveinspection personnel more prac-tical, situation-based training.“Under this Administration,

T H E L I V E S T O C K M A R K E T D I G E S T

Real EstateGUIDE

To place your Real Estate listings here, contact Debbie Cisneros at [email protected]; New Mexico office: 505/243-9515, ext. 30; or Colorado office: 720/242-8032 (direct line)

Livestock Groups Say Secretarial Order May Threaten Grazing

FSIS unveils humane handling enforcement measures

we have significantly strength-ened our ability to enforce theHumane Methods of SlaughterAct, but we have more work todo,” Under Secretary for FoodSafety Dr. Elisabeth Hagen saidin a news release. “That is whywe are taking concrete steps toaddress outstanding humanehandling issues, ranging fromenhanced employee training toclearer guidance on existingrules.”

CONTINUED ON PAGES 18 and 19

Page 18: LMD January 2011

Page 18 Livestock Market Digest January 15, 2011

by TOM BARKLEY / Wall Street Journal, D.C.

China agreed in mid Decem-ber to move toward liftingrestrictions on some U.S.beef imports and provided

new assurances that its efforts topromote domestic innovationwon’t discriminate against for-eign firms.China’s pledge to gradually

reopen its market to U.S. beeffrom cattle under 30 months oldwas one of a number of poten-tially significant announcementscoming out of two days of bilat-eral trade talks, signaling a fur-ther easing of tensions in thegrowing economic rivalry.

As with previous rounds ofbilateral trade talks, most of theconcessions were made on theChinese side, although therewere no major breakthroughsand the importance of the agree-ments Beijing made will dependon implementation. The U.S.,for its part, agreed to considerChinese concerns over trade-remedy cases and export controlson sensitive technologies.U.S. trade officials emerged

from the annual talks reassuredthat their concerns about Chi-nese discrimination against U.S.companies had been met.“Of course we need to ensure

full implementation of these

agreements, but they present areal opportunity for more made-in-USA products and services tomake it to China,” U.S. Com-merce Secretary Gary Locke saidfollowing the talks.Mr. Locke said he hopes the

meeting will set the stage for“even more impressiveannouncements” when ChinesePresident Hu Jintao meets withPresident Barack Obama in Jan-uary.China is especially eager to

calm trade tensions with theU.S. ahead of Mr. Hu’s trip,which is expected to be the firststate visit to Washington by aChinese leader in more than a

decade and likely Mr. Hu’s finalone before he hands over powerto a successor in about twoyears.Mr. Locke and U.S. Trade

Representative Ron Kirk co-host-ed the Joint Commission onCommerce and Trade, with VicePremier Wang Qishan leadingthe Chinese delegation.Mr. Wang gave only brief

remarks before heading to Capi-tol Hill for meetings with U.S.lawmakers. The Chinese vicepremier praised the “candidexchange of views.”USDA Secretary Tom Vil-

sack, who also participated in thetalks, said one goal before Mr.Hu’s visit is to work out some ofthe sanitary and proceduralissues that need to be resolved to

restart beef exports.“Technical talks will resume as

soon as possible with the goal ofreopening China’s market in ear-ly 2011,” he said.He plans to send a team of

department officials to China inearly January to discuss theplanned staged resumption ofU.S. beef exports, which havebeen banned since BSE was dis-covered in U.S. cattle in 2003.While China has eased those

restrictions on paper, an effec-tive ban remains in place thathas kept out U.S. beef, a seniorU.S. trade official told reportersafter the meeting.The U.S. also made progress

in its multifront effort to makesure China’s so-called indige-nous innovation policies don’tkeep American firms out of theChinese market.In addition to pledging that

its government procurementrules won’t discriminate on thebasis of where the intellectualproperty of a product originates,China also assured that thedevelopment of standards in itslucrative wireless and smart gridmarkets will remain open. Infra-structure investment in 3G tech-nology is expected to reach asmuch as $12 billion by 2011,while China plans to invest $10billion a year through 2020 tobuild a national smart grid.The two countries also agreed

to cooperate in a range of areasto improve enforcement of intel-lectual-property rights in China,especially to curtail rampantsoftware piracy that costs soft-ware makers an estimated $7.9billion a year in lost revenue.China recently launched a six-

month campaign to crack downon piracy and counterfeiting,including by ensuring that gov-ernment bureaus and businessesare using legitimate software.The two countries plan to dis-

cuss early in the new year waysto verify that China is complyingwith its software legalizationpromises.“We expect to see concrete

and measurable results, includ-ing increased purchase and useof legal software,” said Mr. Kirk. P BAR RANCH: Rates at 1,350 AU’s including 900 mother cows

outside year round – WINTER RANGE – 11,750 deeded acres plus BLM, 300 irrigated – background lot for calves – 3 homes – good improvements –CAN SPLIT – $6,000,000.

LYMAN RANCH: Rated at approximately 225 hd. year long –MEADOW RANCH – 850± deeded with 670± irrigated – FREE WATER –several interior pastures for easy management of cattle – over 1-1/2 MILERIVER THRU RANCH – would make great stocker operation for about 800 hd. – modest improvements including great shipping facilities andscales – asking $1,530,000 Rae at 208/761-9553.

LINSON CREEK: 400/500 HD. WINTER (11/5 – 5/1) with less than 1/2-ton on normal years – 1,938 deeded plus BLM – great stock water – UP-LAND GAME BIRDS, MULE DEER, ELK, FISHING – Washington/ PayetteCounties, ID – modest improvements – $1,475,000 with SELLER FINANCE.

LANDRETH: Malheur County, OR – 780 deeded acres with 180± irrigated– 1/2-MILE RIVER – quality improvements – upland game birds, waterfowl, mule deer, bass ponds – PRICE REDUCED – $980,000.

FARM/FEEDLOT: 500± deeded acres with 280 irrigated row crop – CAFO at 850-1,000 hd. – good improvements – great stocker and/or dairy hfrs. – $1,580,000.

QUARTER CIRCLE DIAMOND: Gilliam County, OR – 6,148 deeded acres with 1,078 dry farm – in addition running 125 mother cows year long– includes 40% interest in potential power generation – siting for 17 TURBINES – mule deer, elk, chukar, quail – $1,750,000 Rae at 208/761-9553 Jack at 541/473-3100.

AGRILANDS Real Estatewww.agrilandsrealestate.com

Vale, Oregon • 541/473-3100 • [email protected]

“EAGER SELLERS”

NEVADA RANCHES and FARMS

Bottari RealtyPAUL D. BOTTARI, BROKER

www.bottarirealty.com • [email protected]

Ofc.: 775/752-3040Res: 775/752-3809 • Fax: 775/752-3021

Out West Realty Network Affiliate

MASON MOUNTAINRANCH

Nothern Elko County ranch with 3700 deededacres and a small BLM permit. Great summer pasture with free water from springs, creeks and seeps. No power but land line phone.

The ranch received 1 landowner Elk Tag this year.The irrigation reservior on Mason Creek is stockedwith Red Band trout. Several useful buildings including home with gravity flow water andpropane lights, water heater and refrigerator. The ranch should run 300 pair for the season.

Price: $1,575,000.

Ken Ahler Real Estate Co., Inc. www.SantaFeLand.com1435 S. St. Francis Drive, Suite 210 • Santa Fe, N.M. 87505O: 505/989-7573 • Toll Free: 888/989-7573 • M: 505/490-0220E-mail: [email protected]

Capulin Ranch, Separ, N.M. – 21,640 acres total, 7,785 deeded acres and13,835 leased acres. 350 auyl operation has excellent fences, 8 pastures, 2traps, 10 wells and drinkers, forage is in excellent condition. Good popula-tions of mule deer, antelope, big cats, javalina and quail. HQ home is SWstyle with pool. Guest home, equip storage, rail cars, pens and scales at HQlocation. Price is $4,000,000La Cueva Ranch, Las Vegas, N.M. – 3,334 deeded acres on Apache Mesa 20minutes from Las Vegas, NM. Caves, rimrock, canyons, grassy mesa tops andtall pines. Smaller parcels available. Very scenic area. Priced at $1,779,000 Trigg Ranch Parcels, Las Vegas, N.M. – 720 acre and 360 acre parcelslocated on Apache Mesa at $612,000 and $216,000 respectively. 180 acreparcel located on Hwy 84 has stunning views, several building sites on thisparcel. Priced at $298,000

Idaho-OregonCall 208/345-3163

for catalog.

KNIPE

LAND CO.RANCHES

FARMSCOMMERCIAL

Established 1944

��������������The Ranch Finder – Ronald H. Mayer

P. O. Box 2391, Roswell, NM 88202 575/623-5658 • www.ranchfinder.com

THE RANCH FINDER presents . . .

Escondida Land & Cattle Co.A great ranch located in the foothills of the Capitan Mountainof Lincoln County, N.M., near Arabela, just eight milesabove the Hondo Valley from Tinnie. 45 miles west of

Roswell, and 25 miles east of Ruidoso, Escondida Ranch consists of 9931deeded acres plus 6,551 U.S. Forest Service Lease w/an additional 490 NewMexico State Lease acres, 27 being sections of rolling foothills and open val-leys of grama grass pastures at an altitude of 5,000 ft. A four-season cattleranch w/an established grazing capacity of 500 animal units or 750 yearlingson a six-month grazing rotation system. This grazing program is also tied inwith 130 acres of water rights applied to sprinkler irrigated grass pastures,w/irrigation wells capable of pumping up to a 900 gallon-per-minute at lessthan a 100' depth. Escondida Ranch is improved with a full service modernheadquarters complex w/new barns, corrals and shipping pens w/scales. Thisarea of Lincoln County is noted for its big game habitat and the ranch is annu-ally issued eleven elk permits along w/topline mule-deer, black bear, mountainlion and barbary sheep hunting, and lots of turkey. A turn-key offering — every-thing goes.

Bailey Family Ranch, LLC.A year long cow/calf grazing unit located six miles north of Cuero in GuadalupeCounty, N.M., just off I-40, and 20 miles east of Santa Rosa — a trade centerfor this area and east 45 miles to Tucumcari, the Hub City for this quadrant inNew Mexico. The Bailey Ranch consists of 7,587 deeded acres along with1,160 New Mexico State Lease for a total of 8,747 grazing acres. This 14-sec-tion cow/calf or yearling ranch is located in some of the better grazing countryin eastern New Mexico. Under normal range conditions this area receives 14-16 inches of moisture a year and can support up to a 200-day growing season,at an elevation of around 4,300 ft. This ranch has an ideal habitat for deer,antelope and game birds. The design of the ranch is divided into six pasturesand one trap 160+ acres of free grazing on vacant land, supported by six wind-mills and five surface tanks. In a fenced design seven miles long and two wide,north to south, Walker Road is an all weather county road running north alongthe west boundary. A basic headquarter complex with full services, a good ten-ant house, two-car garage and livestock working and shipping pens.

U.S.-China Trade Talks Advance

Page 19: LMD January 2011

January 15, 2011 “America’s Favorite Livestock Newspaper” Page 19

The American ShorthornAssociation (ASA) selectedthe Herdsman of the Yearfor the 2010 National

Shorthorn Show held during theNorth American InternationalLivestock Exposition (NAILE).The Herdsman of the Year washonored with a trophy buckle inmemory of Lawrence Grathwohland sponsored by the ShorthornFoundation. The award was pre-sented during the selection ofthe selection of the National

Champion Female of the 2010show season to Jeff Sargent fromDenison, Texas.Lawrence Grathwohl was a

loyal member of the AmericanShorthorn Association who diedat the age of 41 from injuriesreceived from a pickup truckaccident. He raised livestock andfarmed his entire life, howeverhe was known for raising Short-horn cattle which he showed all

across the country. Throughouthis years he received severalawards and special recognitionfor his show cattle, including hislast champion exhibited at the2003 North American Interna-tional Livestock Expo inLouisville, Ky., WHR RT RodeoAugustus 2111.“The Herdsman Award is a

great tribute to Lawrence’s mem-ory. He was a competitor at heartand had the opportunity to exhib-it many champions during his

SOLD

D A N D E L A N E YR E A L E S T A T E , L L C

318 W. Amador Ave.Las Cruces, N.M. 88005(O) 575/647-5041(C) 575/[email protected]

WAHOO RANCH: Approximately 40,976 acres: ±11,600 deeded, 6,984 BLM, 912 state, 40 uncontrolled and21,440 forest. Beautiful cattle ranch located on the eastslope of the Black Range Mountains north of Winston,N.M., on State Road 52. Three hours from either Albu-querque or El Paso.The ranch is bounded on the east bythe Alamosa Creek Valley and on the west by the WahooMountains ranging in elevation from 6,000' to 8,796'. Thereare 3 houses/2 cabins, 2 sets of working corrals (1 withscales) and numerous shops and outbuildings. It is verywell watered with many wells, springs, dirt tanks andpipelines. The topography and vegetation is a combinationof grass covered hills (primarily gramma grasses), withmany cedar, piñon and live oak covered canyons as wellas the forested Wahoo Mountains. There are plentiful elkand deer as well as antelope, turkey, bear, mountain lionand javelina (47 elk tags in 2010). Absolutely one of thenicest combination cattle/hunting ranches to be found inthe Southwest. Price reduced to $5,500,000.

MAHONEY PARK: Just 10 miles southeast of Deming,N.M. The property consists of approx. 800 acres Deeded,560 acres State Lease, and 900 acres BLM. This historicproperty is located high up in the Florida Mountains andfeatures a park like setting, covered in deep grasses withplentiful oak and juniper covered canyons. The cattle al-lotment would be approx. 30 head (AUYL). Wildlife in-cludes deer, ibex, javalina, quail and dove. This rare jewelwould make a great little ranch with views and a home sitesecond to none. Priced at $600,000.

SAN JUAN RANCH: Located 15 miles south of Deming,N.M. east of Highway 11 (Columbus Highway) on CR-11.Approximately 24,064 acres consisting of approximately2684 acres Deeded, 3240 State Lease, 13,460 BLM, and 4,680uncontrolled. The cattle allotment would be approx. 183head (AUYL). There are 6 solar powered stock wells withmetal storage tanks and approximately 6-1/2 milespipeline. The ranch has a very diverse landscape consistingof high mountain peaks, deep juniper & oak coveredcanyons, mountain foothills and desert grasslands. Thereis plentiful wildlife including deer, ibex, javalina, quail anddove. A truly great buy at $600,000.

212 ACRE FARM BETWEEN LAS CRUCES, N.M.AND EL PASO, TEXAS:Hwy. 28 frontage with 132 acresirrigated, 80 acres sandhills, full EBID (surface water) plusa supplemental irrigation well, cement ditches and largeequipment warehouse. Priced at $1,868,000.

50.47-ACRE FARM: Located on Afton Road south of LaMesa, NM. Paved road frontage, full EBID (surface water)plus a supplemental irrigation well with cement ditches.Priced at $13,000/acre ($660,400).

±37-ACRE FARM – WEST OF ANTHONY, N.M.: Lo-cated 20 minutes from Sunland Park Race Track onHaasville Road (paved) just north of Gadsden High Schooland west of Highway 28. EBID, irrigation well and cementditches. Beautiful farm with many possibilities. Call foraerial and location maps. Sign on property. Priced at$13,900/acre ($514,300).

www.zianet.com/nmlandman

OTHER FARMS FOR SALE: In Doña Ana County. All located near Las Cruces, N.M. 8, 11, and 27.5 acres. $15,000/acreto $17,000/acre. All have EBID (surface water rights from the Rio Grande River) and several have supplemental irrigationwells. If you are interested in farm land in Doña Ana County, or ranches in Southwest New Mexico, give me a call.

Lassen County: 11,725 acres, all deeded. 970 acres irrigated, flood and 4 pivots. Alfalfa, grain, grass. BLM permits, 500 cows, organic hay. Lots of potential for more farm ground. Priced at $5,375,000.

Tehama County, Cottonwood, Calif.: 1,850 acres, winter range. Large barn, 1 bdrm. apt., horse stalls, tie stalls, tack room, shop. Deluxe 400x200 ft. roping arena. All new fences and steel corrals. Hunting and fishing. Priced at $2,200,000.

Tehama County, Cottonwood, Calif.: 556 acres, winter range, two small houses, corrals, chute, small barn. Good hunting and fishing. Price reduced — $775,000.

Tehama County, Cottonwood, Calif.: 80 acres, winter range and a custom built appx. 3,000 sq. ft. beautiful home. Large barn, tack room, shop roping arena, round-pen — a real crown jewel. Many amenities. A roper’s dream. Priced at $1,400,000.

——— CALIFORNIA RANCHES ———

Properties and Equities

R.G. DAVIS, BROKERCell: 530/949-1985

19855 S. Main St., P.O. Box 1020Cottonwood, CA 96022

Ofc.: 530/347-9455 • F: 530/[email protected]

TEXAS & OKLA. FARMS & RANCHES

Joe Priest Real Estate1205 N. Hwy 175, Seagoville, TX 75159

972/287-4548 • 214/676-69731-800/671-4548www.joepriest.com

[email protected]

• Magnificent 90 Hunting – Cattle/Horse Ranch50 miles E. of Dallas, 35 miles W. of Tyler, Whitepipe fence along FM Hwy. 3,700 sq. ft. elabo-rate home, flowing waterway, l ake. Has it all.• 532-acre CATTLE & HUNTING, NE TX ranch,elaborate home, one-mile highway frontage.OWNER FINANCE at $2,150/ac.• 274 acres in the shadow of Dallas. Secludedlakes, trees, excellent grass. Hunting & fishing,dream home sites. $3,850/ac. • 1,700-acre classic NE TX cattle & huntingranch. $2,750/ac. Some mineral production.• Texas Jewel, 7,000 ac. – 1,000 per ac., runcow to 10 ac.• 256 Acre Texas Jewel – Deep sandy soil, high-rolling hills, scattered good quality trees, & ex-cellent improved grasses. Water line on 2 sidesrd., frontage on 2 sides, fenced into 5 pastures,5 spring fed tanks and lakes, deer, hogs &ducks. Near Tyler & Athens. Price $1,920,000.• 146 horse, hunting cattle ranch N. ofClarksville, TX. Red River Co. nice brick home,2 barns, pipe fences, good deer, hogs, ducks,hunting priced at $395,000.• 535 ac. Limestone, Fallas, & Robertson coun-ties, fronts on Hwy. 14 and has rail frontagewater line, to ranch, fenced into 5 pastures, 2sets, cattle pens, loamy soil, good quality trees,hogs, & deer hunting. Priced at $2,300 per ac.

INTEREST RATES AS LOW AS 3%. PAYMENTS

SCHEDULED ON 25 YEARS

�������������

JOE STUBBLEFIELD & ASSOCIATES13830 Western St., Amarillo, TX

806/622-3482 • cell 806/674-2062Drew Perez Assocs.

Nara Visa, NM • 806/392-1788

1002 Koenigheim, San Angelo, TX 76903 • www.llptexasranchland.com • [email protected]

LEE, LEE & PUCKITTASSOCIATES INC.

KEVIN C. REED

Office: 325/655-6989Cell: 915/491-9053

RanchersServing

Ranchers

Texas andNew Mexico

RANCHSALES &APPRAISALS

PAUL McGILLIARDCell: 417/839-5096 • 1-800/743-0336

MURNEY ASSOC., REALTORSSPRINGFIELD, MO 65804

Missouri Land Sales� 5-acre Horse Set-up: Location-location, only2+ miles north of Mountain Grove on Girlstown Rd.New fencing, 20x40 new 3-stall horse barn/shop/1-car garage, 1,300 sq. ft. , 3-br., 2-ba. manufacturedhome, wrap around deck ( 2 sides), nestled downyour private drive. MLS #1010102� 675 Acres Grass Runway, Land your ownplane: Major Price Reduction. 3 BR, 2 BA homedown 1 mile private land. New 40x42 shop, 40x60livestock barn, over 450 acres in grass. (Owner runsover 150 cow/calves, 2 springs, 20 ponds, 2 lakes,consisting of 3.5 & 2 acres. Both stocked with fish.Excellent fencing. A must farm to see. MLS#1010371� 483 Acres, Hunter Mania: Nature at her best.Don’t miss out on this one. Live water (two creeks).70+ acres open in bottom hayfields and upland graz-ing. Lots of timber (marketable and young) for the besthunting and fishing (Table Rock, Taney Como and BullShoals Lake) Really cute 3-bd., 1-ba stone home. Se-cluded yes, but easy access to Forsyth-Branson, Ozarkand Springfield. Property joins Nat’l. Forest.MLS#908571See all my listings at: paulmcgilliard.murney.com

Ben G. Scott, Krystal M. Nelson, Brokers1301 Front St., Dimmitt, TX 79027 • 1-800/933-9698 day/night

www.scottlandcompany.com

—— TEXAS AND NEW MEXICO ——This ad is just a small sample of the properties that we currently have for sale.

Please check our website: scottlandcompany.com and give us a call! We need your listings both large and small, all types of ag properties (ESP. RANCHES).

LONE WOLF RANCH - EASTERN, NM: Approx. 30 sections mostly deededsome BLM and State, employee housing and two sets of steel pens, countymaintained, all weather road. Mild climate year round.

HARTLEY/MOORE COUNTY LINE: Corn, wheat, cotton, cattle with all theperks, 992 acres, sprinkler irrigated with some improved pasture, large brickhome, large set of state of the art steel working pens with concrete feed bunksand covered working area, on pavement. House, shop and horse barn on 2acres may be bought separately.

RANCH & FARM REAL ESTATE

Sargent awarded Lawrence GrathwohlMemorial Herdsman of the Year

continued on page twenty

Page 20: LMD January 2011

Page 20 Livestock Market Digest January 15, 2011

National Bull and NationalFemale Show.

2010 Century Club WinnersSullivan Cattle Co., Dunlap,

Iowa; Waukaru Farms, Inc.Rensselaer, Ind.; WHR Short-horns, Van Alstyne, Texas; T BarT Shorthorns, Wolfforth, Texas;Jungels Shorthorn Farm,Kathryn, N.D.; Byland,Loudonville, Ohio; Loving PolledShorthorns, Pawnee Rock, Kan.;Sneed Shorthorns, Sedalia, Mo.;Cal-Dak Shorthorns, White Riv-er, S.D.; Keith H. Lauer, Abi-lene, Kan.; Warner Ranch Short-horns, LLC., Riverton, Wyo.

The American ShorthornAssociation (ASA) 2010annual awards presenta-tion was held during the2010 North American

International Livestock Exposi-tion (NAILE) in Louisville, Ky.Award winners were announcedthroughout the National Bulland Female show in recognitionof accomplishments in the Short-horn breed.The All-American awards

were announced during eachdivision drive. To receive the dis-tinction of an All-American, ani-mals are exhibited throughout ashow season at the designatedPACE (Point AccumulationEvent) Shows. Winners are

selected through a point tallyprocess based on points earnedat the designated Major andInvitational PACE shows. Pointamounts are based on the typeof show and the number of headexhibited. Animals are named asan All-American based on thespecific age classifications of thePACE Program. The top accu-mulating female and bull of allthe age divisions is then namedas the “Show Female/Bull of theYear.”Accumulating the most points

for Show Bull of the Year wasLBB Sonny California 07 ET,owned by Brooke Bennett,Ducor, Calif. and Tri-Star Cat-tle, San Luis Obispo, Calif.

2010 ASA Sire of the Year

First Place: 7,665 pointsCF Solution X ET, owned by Cates Farms and Sullivan CattleCompany, Dunlap, Iowa

Second Place – 6,540 pointsHD Bloodstone 603 ET, owned by Tyler Hahn, Watseka, Ill.; WHRShorthorns and Cates Farms

Third Place – 5,710 pointsWHR Sonny 8114 ET, owned byWHR Shorthorns and SchragShorthorn Farms

Fourth Place – 4,360 pointsSULL GNCC Salute 532R ET,owned by Sullivan Cattle Co., “S” Co Shorthorn Farms, and The Bollum Family

Fifth Place – 3,550 pointsCF Trump X, owned by CatesFarms, WHR Shorthorns and Jim Cooper

2010 ASA Dam of the Year

First Place – 1,660 pointsNPS Desert Rose 004, owned by Tyler Hahn

Second Place – 1,445 pointsCF Myrtle Bo 46 TP X, owned by James Sullivan, Dunlap, Iowa

Third Place – 1,435 pointsK-Kim MP Mona Lisa 34P, owned by James Sullivan

Fourth Place – 1,195 pointsWHR Jazz Demi Delight 2R58,owned by Stover Cattle Company, Robinett Family Cattle and Randy Blood

Fifth Place – 1,125 pointsSGK Call Girl ET, and Kolby Berg

Centuries Club is a way torecognize those members of theassociation that register over 100head in a given year. The follow-ing were recognized between the

BennettSHORTHORNS

JOHN & DONNA BENNETT123 NORTON ROAD

OAKVILLE, WA 98568

Private Treaty

Year Round

Calves in Fall

Shorthorns are an excellent

choice for Marbling and

High Gradeability!

CHOICE BREEDING STOCK AVAILABLE AT ALL TIMES. CALL

360/273-9932FOR PERFORMANCE DATA!

career. He really valued theShorthorn friends he made overthe years traveling to shows acrossthe country,” says Nancy (Grath-wohl) Heter, niece of Lawrence.Jeff Sargent, better known in

the industry as “Sarge,” has beenassisting WHR Shorthorns inVan Alstyne, Texas, owned byBill and Becky Rasor, since theearly 1990s and has been full-time with the show and sale cat-tle for the last eight years.“He has presented our cattle

in a professional manner anddeveloped a good relationshipwith the many customers he hasassisted. He takes special prideworking with beginning Short-horn enthusiasts. His dedicationduring the preparations for ourannual sale and also during thesale week is highly commend-able,” comments Mr. Rasor.The Lawrence Grathwohl

Memorial Herdsman of the Yearwill continue to be selected dur-ing the National ShorthornShow. The 2011 herdsman willbe chosen during the 2012National Western Stock Show inDenver, Co.

ASA Awards Presented

Sargentcontinued from page nineteen