LMD July 2010

16
Livestock Digest Livestock JULY 15, 2010 • www. aaalivestock . com Volume 52 • No. 7 “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 R anchers should honor June 25, 2010, as an important date in history. In the war over who will control the cattle industry going forward, that date will be remembered as the day the NCBA waved the white flag and called for a truce. The NCBA attempted a sneak attack to steal the checkoff, were repelled, and the last time we looked, the NCBA was in full retreat. If an army marches on its stomach, the fuel for an industry group like the NCBA is cold hard cash. Now what will they do after the Cattlemen’s Beef Board (CBB) has changed the combi- nation to the checkoff safe? Tough Or Toothless? We were busy preparing what we thought was the biggest story of the year, and perhaps the young century, namely, that the USDA, the Justice Department and the Packers & Stockyards Administration were finally going to do something about packer concentration. But that story was kicked off the front page by an even bigger one! While we were writing about captive supplies the NCBA was suffering the single biggest defeat in its young life at the hands of the Farm Bureau, Live- stock Marketing Association, R-CALF, WORC, National finally won one. We are happy to report that there really is a new Sheriff in town and this one isn’t bought and paid for by some big compa- ny he plans to go to work for when his work at the USDA is done. When the NCBA sent their dog and pony show to Washington to sweet talk and bedazzle the bureaucrats like they have in the past, they fell flatter than a cow pie on con- crete. Let’s just say it wasn’t old home week as usual and the red carpet was definitely not rolled out. Instead they were told in no uncertain terms that this USDA and this Ag Secretary would not look the other way as the NCBA tried to heist the part of the checkoff they don’t already get to spend. One Plan, One Voice, One Dollar As we’ve reported for two years now, the NCBA has been devising a new governance struc- ture that would allow them to completely take over the cash belonging to the Federation of State Beef Councils. They came up with a plan to render the Fed- eration a figurehead, while they’d come up with ways to spend the half dollar of every buck the Fed- eration can legally keep. The only problem was that mixing the nonpolitical checkoff with the very political NCBA is against the law! But that didn’t stop the always-broke NCBA, who des- perately needs the cash despite the infusions of checkoff bucks they already get as the largest contractor for checkoff dollars. The NCBA says their new governance structure was neces- sary so that the industry could move forward, so it could become more streamlined and efficient. They urged everyone to Farmers Union, United Cattle- men’s Association, the USDA and many other groups, among them the Beef Board. In our last issue we speculated that Ag Secretary, Tom Vilsack, was different from recent models because he vowed to defend and serve the farmers and ranchers of this country, not just big multi- national corporations. We won- dered aloud if Vilsack and the Justice Department just talked tough but were toothless. Well, early results are in and we’re elat- ed to report that Vilsack has a full set of choppers! Thanks to him the good guys in their sweat- stained white cowboy hats have NCBA In Retreat by TOM STEEVER, BROWNFIELD T he Grain Inspection, Packers & Stock- yards Administration (GIPSA) is propos- ing rule changes that USDA Secretary Tom Vilsack says will protect producers against unfair or retaliatory practices in live- stock marketing. In a conference call in mid June, the Secretary said the proposed rule addresses fairness. “It’s about making sure the playing field is level for the people that put in, in some cases, most of the capital and a great deal of the labor, and have seen over the course of time their margins squeezed considerably,” said Sec- retary Vilsack, speaking from USDA Head- quarters in Washington, D.C. “We’ve seen a rather substantial decline in the number of people who can compete, and who can produce, and who can participate in what they want to do, which is to farm.” Among other things, Vilsack says specifical- ly, the rule will improve transparency by mak- ing sample contracts available for producers to view online. The proposed rule announced on June 19, 2010 would provide: Provide further definition to practices that are unfair, unjustly discriminatory or deceptive, including outlining actions that are retaliatory in nature, efforts that would limit a producer’s legal rights, or representations that would be fraudulent or misleading. Additionally, the pro- posed rule reiterates USDA’s position that a producer need not overcome unnecessary obstacles and have to always prove a harm to competition when they have suffered a viola- tion under the Act; Define undue or unreasonable preferences or advantages; “Your fences need to be horse-high, pig-tight and bull-strong.” continued on page seven continued on page four USDA livestock rule draws mixed reaction www.LeePittsbooks.com Speechless I have always been fasci- nated by the possibility of talking to animals. Like most ranchers, sheep- herders and pig persons, I feel I have this special ability to know what animals are thinking and often I seem to communicate better with cattle and sheep than I do my wife. Don’t lock me in the looney bin, but I feel strongly that animals speak to us. Oh, they may not use the proper syntax and pro- nunciation but when they say arf arf, meow, moo or baa, I feel they are trying to tell us something. About the only reason I’d like to live another 100 years is because I bet that in that time frame, using computers, translators and decoder rings, we’ll be able to ask animals questions and get back answers. But I won’t be around, so please ask these questions for me. I’d like to ask a donkey if he’s offended when we call a politician by his family name? I want to know what breed of dogs that sheep hate the most and I’d like to know chicken’s innermost thoughts, if they have any. I’d ask pigs if they believe in God and, if so, what religion are they? Also, to what polit- ical party would most hogs belong if they could join? (Although sometimes I think they already have.) I’d like to ask a sow nursing 12 babies if, given the opportunity, she didn’t ever want to just sneak away in the dark of night? I’d also like to know how they feel about their heart valves being used to save people they didn’t even know, or were related to, and if they’d voluntarily fill out an organ donor card if they could? I have a ton of questions I’d like to ask dairy cattle. Such as . . . Do you consider milking machines foreplay and do they turn you on? When a milker strips your teats do you feel violated? How do you feel about artifi- cial insemination and would you outlaw it if you could? Do you understand Spanish or English better? I’d like to ask a Mad Cow if she really does feel crazy and I’d follow up with, “Are you the brains behind PETA because it sure seems like it?”

description

Newspaper of Southwestern Agriculture

Transcript of LMD July 2010

Page 1: LMD July 2010

LivestockDigest

LivestockJULY 15, 2010 • www. aaalivestock . com Volume 52 • No. 7

“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

Ranchers should honor June25, 2010, as an importantdate in history. In the warover who will control the

cattle industry going forward,that date will be remembered asthe day the NCBA waved thewhite flag and called for a truce.The NCBA attempted a sneakattack to steal the checkoff, wererepelled, and the last time welooked, the NCBA was in fullretreat.If an army marches on its

stomach, the fuel for an industrygroup like the NCBA is coldhard cash. Now what will they doafter the Cattlemen’s Beef Board(CBB) has changed the combi-nation to the checkoff safe?

Tough Or Toothless?We were busy preparing what

we thought was the biggest storyof the year, and perhaps theyoung century, namely, that theUSDA, the Justice Departmentand the Packers & StockyardsAdministration were finallygoing to do something aboutpacker concentration. But thatstory was kicked off the frontpage by an even bigger one!While we were writing aboutcaptive supplies the NCBA wassuffering the single biggestdefeat in its young life at thehands of the Farm Bureau, Live-stock Marketing Association, R-CALF, WORC, National

finally won one.We are happy to report that

there really is a new Sheriff intown and this one isn’t boughtand paid for by some big compa-ny he plans to go to work forwhen his work at the USDA isdone. When the NCBA senttheir dog and pony show toWashington to sweet talk andbedazzle the bureaucrats likethey have in the past, they fellflatter than a cow pie on con-crete. Let’s just say it wasn’t oldhome week as usual and the redcarpet was definitely not rolledout. Instead they were told in nouncertain terms that this USDAand this Ag Secretary would not

look the other way as the NCBAtried to heist the part of thecheckoff they don’t already getto spend.

One Plan, One Voice, One DollarAs we’ve reported for two

years now, the NCBA has beendevising a new governance struc-ture that would allow them tocompletely take over the cashbelonging to the Federation ofState Beef Councils. They cameup with a plan to render the Fed-eration a figurehead, while they’dcome up with ways to spend thehalf dollar of every buck the Fed-eration can legally keep. The onlyproblem was that mixing thenonpolitical checkoff with thevery political NCBA is againstthe law! But that didn’t stop thealways-broke NCBA, who des-perately needs the cash despitethe infusions of checkoff bucksthey already get as the largestcontractor for checkoff dollars.The NCBA says their new

governance structure was neces-sary so that the industry couldmove forward, so it couldbecome more streamlined andefficient. They urged everyone to

Farmers Union, United Cattle-men’s Association, the USDAand many other groups, amongthem the Beef Board.In our last issue we speculated

that Ag Secretary, Tom Vilsack,was different from recent modelsbecause he vowed to defend andserve the farmers and ranchers ofthis country, not just big multi-national corporations. We won-dered aloud if Vilsack and theJustice Department just talkedtough but were toothless. Well,early results are in and we’re elat-ed to report that Vilsack has afull set of choppers! Thanks tohim the good guys in their sweat-stained white cowboy hats have

NCBA In Retreat

by TOM STEEVER, BROWNFIELD

The Grain Inspection, Packers & Stock-yards Administration (GIPSA) is propos-ing rule changes that USDA SecretaryTom Vilsack says will protect producers

against unfair or retaliatory practices in live-stock marketing. In a conference call in midJune, the Secretary said the proposed ruleaddresses fairness.“It’s about making sure the playing field is

level for the people that put in, in some cases,most of the capital and a great deal of thelabor, and have seen over the course of timetheir margins squeezed considerably,” said Sec-retary Vilsack, speaking from USDA Head-quarters in Washington, D.C.“We’ve seen a rather substantial decline in

the number of people who can compete, andwho can produce, and who can participate inwhat they want to do, which is to farm.”

Among other things, Vilsack says specifical-ly, the rule will improve transparency by mak-ing sample contracts available for producers toview online.The proposed rule announced on June 19,

2010 would provide:� Provide further definition to practices that

are unfair, unjustly discriminatory or deceptive,including outlining actions that are retaliatoryin nature, efforts that would limit a producer’slegal rights, or representations that would befraudulent or misleading. Additionally, the pro-posed rule reiterates USDA’s position that aproducer need not overcome unnecessaryobstacles and have to always prove a harm tocompetition when they have suffered a viola-tion under the Act;

�Define undue or unreasonable preferencesor advantages;

“Your fences needto be horse-high,

pig-tight and bull-strong.”

continued on page seven

continued on page four

USDA livestock rule draws mixed reaction

www.LeePittsbooks.com

Speechless

Ihave always been fasci-nated by the possibility oftalking to animals. Likemost ranchers, sheep-

herders and pig persons, Ifeel I have this special abilityto know what animals arethinking and often I seem tocommunicate better withcattle and sheep than I domy wife. Don’t lock me inthe looney bin, but I feelstrongly that animals speakto us. Oh, they may not usethe proper syntax and pro-nunciation but when theysay arf arf, meow, moo orbaa, I feel they are trying totell us something. About theonly reason I’d like to liveanother 100 years is becauseI bet that in that time frame,using computers, translatorsand decoder rings, we’ll beable to ask animals questionsand get back answers. But Iwon’t be around, so pleaseask these questions for me.I’d like to ask a donkey if

he’s offended when we call apolitician by his familyname? I want to know whatbreed of dogs that sheephate the most and I’d like toknow chicken’s innermostthoughts, if they have any.I’d ask pigs if they believe inGod and, if so, what religionare they? Also, to what polit-ical party would most hogsbelong if they could join?(Although sometimes I thinkthey already have.) I’d like toask a sow nursing 12 babiesif, given the opportunity, shedidn’t ever want to just sneakaway in the dark of night? I’dalso like to know how theyfeel about their heart valvesbeing used to save peoplethey didn’t even know, orwere related to, and if they’dvoluntarily fill out an organdonor card if they could?I have a ton of questions

I’d like to ask dairy cattle.Such as . . . Do you considermilking machines foreplayand do they turn you on?When a milker strips yourteats do you feel violated?How do you feel about artifi-cial insemination and wouldyou outlaw it if you could?Do you understand Spanishor English better? I’d like toask a Mad Cow if she reallydoes feel crazy and I’d followup with, “Are you the brainsbehind PETA because it sureseems like it?”

Page 2: LMD July 2010

Page 2 Livestock Market Digest July 15, 2010

look at the results they’veachieved these past 14 years. Inthe words of NCBA’s CEO For-rest Roberts, they need this newgovernance structure to becomean industry with “one vision, oneplan, one budget and one voice.”The problem with that is that

the only voice would beNCBA’s, an organization that 96percent of cattlemen refuse tojoin. And more and more thatsingle voice appears to emanatefrom a wooden puppet with thepackers pulling all the strings.To prove our point, after Vil-

sack and the Justice Departmentannounced they were going tocrack down on the packers, everymajor farm or ranch group wecan think of cheered Vilsack andsaid it was about time. Whengroups as diverse as the Ameri-can Farm Bureau Federationand the National Farmers Unionagree on anything you know it’ssignificant. The only major groupwith ranchers as members thatopposed the plan to put morecompetition into the pricing ofyour cattle was the NCBA. Andtheir press release looked like ithad been written by the AMI,the packer’s lobbyists.If no one had stopped

NCBA’s grab, we’re guessing itwouldn’t have been many yearsbefore you’d be asked to sign thesame 24-page contracts shovedin front of today’s hog hothousejanitors and corporate poultrypluckers.

Imagine That!After NCBA failed to con-

vince the USDA in Washingtonon May 17 that their motiveswere pure, Tom Vilsack sent aletter to NCBA informing themthat their proposed new gover-nance structure was dead onarrival as far as he was con-cerned. Now, consider this crueland satisfying twist of fate: You’llrecall that in order to save thecheckoff the NCBA argued inthe U.S. Supreme Court that thecheckoff was a government pro-gram, which came as a completesurprise to most ranchersbecause the NCA, CBB andNCBA had been telling us foryears that it was a cattlemen’sprogram, run by them and fortheir own benefit. But here’s thesatisfying part: it is because thecheckoff is a government pro-gram that the USDA can nowstop the NCBA from stealingyour checkoff dollars. TheNCBA was shot down with theirown gun. How sweet is that?Then, while the NCBA was

still reeling from Vilsack’s bodyblow, the Cattlemen’s BeefBoard delivered a hard right tothe jaw that knocked the NCBAsenseless. Well, at least evenmore so than they already were.The CBB Board of Directors’Executive Committee passed aunanimous resolution that sug-gests they no longer think it’s agood idea for all the industrygroups to try and coexist underthe same roof. What they arereally saying is that perhaps themerger wasn’t such a good idea

after all. IMAGINE THAT!On June 22 the Cattlemen’s

Beef Board Executive Commit-tee called for an independentFederation of State Beef Coun-cils that should be a “strong,independent checkoff entity thatshould be separate from any pol-icy organization.”In short, the CBB just served

divorce papers on the NCBA.The CBB press release said,

“The Executive Committee ofthe Cattlemen’s Beef Boardstrongly believes that the Feder-ation of State Beef Councils is afull partner in checkoff activities,but also takes seriously itsresponsibility for oversight ofproducer-invested, checkofffunds. CBB continues to have agreat deal of respect for the workand responsibilities of the Feder-ation. Further, CBB has a signif-icant interest in, and oversightresponsibilities for, the Federa-tion. The Executive Committeebelieves that a separate and inde-pendent Federation is in the bestinterest of all those who pay thecheckoff, regardless of organiza-tional affiliation or policy posi-tion.“The CBB Executive Com-

mittee believes that the Federa-tion of State Beef Councilsshould exist independently fromany policy organization.” (Thatmeans you NCBA!) “The Execu-tive Committee prefers a Feder-ation structure that assures thatno policy organization has influ-ence on programming, budget orgovernance decisions made bythe Federation.”The Executive Committee-

approved motion stated, “TheFederation should be separatefrom any policy organization,since all funds for the checkoffcome from mandatory assess-ments of producers andimporters. The checkoff is ownedby, and responsible to, all pro-ducers and importers, and nospecific organization.”The Beef Board’s motion gets

sweeter each time you read it.It’s what we’ve been saying eversince the merger, when theDigest was a lone voice of dis-sent. But who knew the BeefBoard had been feeling this wayfor some time? One CBB Boardmember said the concept ofdecoupling had been discussedfor several years at the BeefBoard. Although NCBA’s Gov-ernance Task Force didn’t initi-ate this showdown, it did put theissue front and center and theBeef Board felt they had noalternative but to act. The CBBwas worried that if NCBA’s rec-ommendations were implement-ed they’d lose the checkoff,either in court or by referendum.One of the major players, and

a member of NCBA’s Gover-nance Task Force, told the Digestthat he felt the NCBA might beable to tweak their proposal toget by the USDA (we doubt it)but that they knew they’d bechallenged in court. ANDLOSE! Here’s more of CBB’s

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CAMILLE PANSEWICZ,Graphic Artist continued on page three

NCBA in Retreat continued from page one

Page 3: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 3

best press release ever. “Thestructure and function of theFederation often are topics ofdiscussion for the ExecutiveCommittee. Recently, these dis-cussions have occurred more fre-quently, due to increased inter-est from industry organizations,as well as recent USDA guid-ance regarding the Federation.The Executive Committee mettoday and discussed the struc-ture of the Federation in light ofconcerns expressed by USDAand other industry organizations.“On many past occasions, the

Executive Committee recom-mended the need for greater sep-aration of the Federation fromNCBA.”(We must have missedthose press releases, but nevermind.) “In addition to its pro-gramming functions, the Execu-tive Committee’s position is thattwo of the Federation’s primaryresponsibilities, 1) election ofFederation members to theOperating Committee, and 2) arecipient of funds from statebeef councils, should be organ-ized and operated as A SEPA-RATE LEGAL ENTITY FROMANY INDUSTRY ORGANIZA-TION.” Emphasis ours.Drum roll please because here

comes the best part. “After con-sidering USDA’s recent guid-ance, as well as continued indus-try concern, the CBB ExecutiveCommittee voted recently torecommend complete separationbetween NCBA and the Federa-tion of State Beef Councils.”Yes folks, you read that right.

What the Beef Board is recom-mending is an UN-MERGER.

A Timeout

After being shot down by AgSecretary Tom Vilsack we weretold that the NCBA was tryingto compose a set of draft bylawsthat would satisfy the USDA andstill allow them the 30 days nec-essary so that the new bylawscould be voted on at Denver’smidyear meeting on July 31. Buthold your horses, it appears nowthat what the staff at NCBA wasreally doing was trying to com-pose a letter of surrender thatwould make it sound like theNCBA hadn’t just suffered ahumiliating defeat. But make nomistake, the NCBA lost andwent into retreat . . . and we’renot talking about the kind ofretreat where expense-accountemployees sit in a circle around abonfire, get all warm and fuzzy,sing Kumbaya and get in touchwith their inner selves.As a precursor to their surren-

der the NCBA staged a feeblepress conference in which theyexpressed their sense of disap-pointment with the Beef Board’sresolution. Then following thatpress conference the NCBA sentout a bombshell of a pressrelease. After working on theirnew governance structure for twoyears, spending who knows howmuch money, they issued a state-ment saying they were “suspend-ing plans to proceed with changesto its governance structure toallow the Federation of StateBeef Councils an opportunity toclarify its role and intentions toall industry shareholders.”Like a stressed out mother

with a bratty child, the NCBAwanted a “time-out.”Scott George, Chairman of

NCBA’s Federation, insistedthat NCBA was not giving up onrevising its governance structure,but rather “turning its attentionto U.S. producers to ensure agovernance structure is devel-oped that fosters unity within theindustry.” Funny, we thoughtthat’s what they said their initialplan would do.“We want to do this right. The

Federation effectively representsall cattle producers paying intothe checkoff,” said George.“Quite frankly, it is impossible todo so when there is so muchcontroversy driving a divide with-in the industry. We have criticalissues affecting this industry thatrequires us to be united, notdivided. We are calling a time-out to clarify our role and wishesto all shareholders.”As the NCBA tucked their

tail and ran George said,“Through the transparentprocess of reinventing our gover-nance structure, the industry hasawakened to what we haveknown since NCBA’s inception:NCBA is much more than a pol-icy organization.”Therein lies the problem Mr.

George. Read the law. You can-not be a policy organization andget your hands on checkoff cash.We don’t know how longNCBA’s time-out will last but weexpect they’ll keep trying. Withthe new governance structurethe NCBA was like a kid whoput his hand through the narrowneck of a candy jar and couldn’tremove his hand while it was

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continued on page four

NCBA in Retreat continued from page two

Page 4: LMD July 2010

Page 4 Livestock Market Digest July 15, 2010

filled with candy. We’re bettingthe NCBA still won’t let go ofthe candy and will come up withnew and creative ways to gettheir hands on the cash. After all,it appears they need the checkoffdollars to exist.Meanwhile, while all our

efforts should be directedtowards increasing demand forbeef, both at home and overseas,we are about to get sidetrackedinto another long and expensive

battle and the sad part is, thepetty barbs back and forth willbe financed with your checkoffdollars. In the end the only win-ners will be the lawyers.In conclusion, here’s some-

thing we at this newspaperthought we’d never say and yetare elated to do so: Thank youMr. Ag Secretary Tom Vilsackand the Beef Board for doing theright thing and not passing thebuck . . . along to the NCBA.

� Establish new protectionsfor producers required to provideexpensive capital upgrades totheir growing facilities, includingprotections to ensure producershave the opportunity to recoup80 percent of the cost of arequired capital investment;

� Prohibit packers from pur-chasing, acquiring or receivinglivestock from other packers, andcommunicate prices to competi-tors;

� Enable a fair and equitableprocess for producers thatchoose to use arbitration to rem-edy a dispute. Additionally, clearand conspicuous print in thecontract will be required toensure producers are providedthe option to decline the use ofarbitration to settle a dispute;

� Require that companiespaying growers under a tourna-ment system provide the samebase pay to growers that raisethe same type and kind of poul-try, including ensuring that thegrowers pay cannot go below thebase pay amount;

� Provide poultry growerswith a written notice of a compa-ny’s intent to suspend the deliv-ery of birds under a poultry

growing arrangement at least 90days prior to the date it intendsto suspend the delivery;

� Improve market transparen-cy by making sample contracts(except for trade secrets or otherconfidential information) bemade available on GIPSA’s web-site for producers;

� Outline protections so thatproducers can remedy a breachof contract;

� Improve competition inmarkets by limiting exclusivearrangements between packersand dealers.Secretary Vilsack cited con-

cerns that he said relate toincreasing consolidation and ver-tical integration in the livestockand poultry marketplace, andshrinking farm numbers. Hestated that in 1980, there wereover 666,000 hog farms, buttoday only 71,000 are in opera-tion. In the cattle industry, therewere over 1.6 million farms in

1980, but only roughly 950,000today.Further, Secretary Vilsack

pointed out that in the hogindustry, producers received 50percent of the retail value of ahog in 1980, but in 2009, only24.5 percent of the retail valuegoes to the producer. He saidthat cattle producers received 62percent of the retail value of a

steer in 1980, but only 42.5 per-cent in 2009. In the poultryindustry today, Vilsack said thatgrowers average 34 cents perbird, while the processing com-pany on average makes $3.23 abird.Vilsack acknowledged that

“Rural America has struggled forsome time,” as a result of shrink-ing farm numbers and a generaldecline in competition in live-stock markets.“Over the course of my life-

time, we’ve lost over a millionfarm families,” Vilsack said Fri-day. “Certainly livestock pro-ducers across the country are nostrangers to this notion of strug-gle.”The group R-CALF USA is

pleased with the GIPSA proposal.“This proposed rule corrects

the core problem that preventsU.S. cattle farmers and ranchersfrom obtaining relief from theanticompetitive practices of thehighly concentrated meatpackersand will help restore competitionto our industry by providing ameans to discipline anticompeti-tive behavior,” said R-CALFPresident Max Thornsberry, inprepared comments.Other provisions in the pro-

posed rule include a requirementthat meatpackers retain writtenrecords to justify differentialprices offered to livestock sellers,a prohibition to prevent two ormore meatpackers from using asingle cattle buyer to procurecattle, and a prohibition to pre-vent meatpackers from tradinglive cattle among themselves.“While more must be done to

reestablish a fully functioningcompetitive market for inde-pendent U.S. cattle producers,

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NCBA in Retreat continued from page three USDA Livestock Rule continued from page one

continued on page seven

Vilsack acknowledged that “Rural America has struggled for some time,” as a result of

shrinking farm numbers and a general decline in competition in livestock markets.

Page 5: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 5

by PATRICK DORINSON, Western Legacy Alliance

Another Earth Day hascome and gone. EarthDay has become a holyday of obligation for

America’s secular religion, theenvironmentalist movement.But hidden behind the facade

of planting trees or discussingthe virtues of “paper or plastic” isa well-financed global group ofdedicated radicals who are benton changing the way we livewhether we like it or not. Theyare funded by a vast network ofwealthy individuals, trust funds,and foundations who selectivelygive money to organizations theycan control like puppets on astring (think George Soros).One such organization has

dedicated its entire existence tothe warped dream of one manwho says that his ultimate goal inlife is to destroy families and away of life with absolutely noregard for the economic orhuman cost.Meet Jon Marvel and the

Western Watersheds Project.This is an organization that

talks a big game about saving theenvironment but in truth hasnever lifted a finger or raised adollar to mitigate the environ-mental issues they claim to careso much about.This is an organization that

bills itself, according to its mis-sion statement, as a group dedi-cated “to protect and restorewestern watersheds and wildlifethrough public education, public

policy initiatives and litigation”That last word “litigation” is

the key, because in truth they arenothing more than a group ofprofessional plaintiffs who havefiled hundreds of lawsuits againstthe government and individualsto accomplish their goals.Between 2000 and 2009 theyhave filed 91 lawsuits and 31appeals in Idaho alone and hun-dreds more throughout theWest.And this is an organization

that has been funded in part withthe hard-earned tax dollars of theAmerican people to the tune of$1.2 million in Idaho FederalDistrict courts alone by the abuseof the Equal Access to JusticeAct (EAJA), which others havewritten about on these pages.The Western Watersheds

Project is headquartered in thatplayground of the rich andfamous, Sun Valley, Idaho. Theorganizaton’s neighbors includeTeresa Heinz Kerry and her hus-band John Kerry as well asArnold Schwarzenegger.Marvel’s ultimate goal? End-

ing any and all economic activityon the vast public lands thatmake up 75 percent of theAmerican West. These are landsthat are rich in resources andprovide recreational opportuni-ties like hunting, fishing, andhiking. They are also a criticalpart of our food supply, as graz-ing rights make cattle and sheepranching possible.Marvel saves his particular

venom for the ranching commu-nities of the West who lease the

public lands from the govern-ment to graze their cattle orsheep.Marvel and WWP claim that

the ranchers pay very little to thegovernment for the right to usethe land for livestock grazing andthat this is a form of “welfare” tothe ranchers and the cowboyswho work the land.What he won’t tell you is that

the rancher who enters into alease agreement with the federalgovernment is taking on thesame responsibilities of environ-mental stewardship that theywould on private land.The ranchers are responsible

for all the financial costs associ-ated with maintaining the landas well as the wildlife that inhabitit. Failure to do so can result infines, penalties, and the loss ofthe permit.So here’s a question to ponder

when you look at the wild claimsof WWP and other environmen-tal outlaws when it comes to cat-tle grazing on America’s publiclands.If livestock grazing is destroy-

ing the public lands, how comeevery year the grass comes back,the streams run clear with water,and the cycle of life continues asthe land yields its nutrients toproduce more meat for ourtables?Many ranching families can

trace their history back five or sixgenerations. So if everything thatJon Marvel and WWP say aboutthe alleged abuse of the landwere true, they would never havelasted one generation.

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The Western Watersheds Project’s Assault on Family Ranchers

Page 6: LMD July 2010

Page 6 Livestock Market Digest July 15, 2010

by STU ELLIS, University of Illinois via AgNetwork

You may soon need anothermonth at the end of theyear, just to get all of yourtax information ready to

visit your tax advisor. Severalmajor changes were recentlymade in the US tax code, andone, in particular, will hit hard atranchers and farmers. If you haveever received a Form 1099 froma company paying you, keep thatin mind, because you will have toissue Form 1099 to many compa-nies that you are paying. Andthat is only part of it!Subscribers to the Cornbelt

Update learned about this devel-opment in mid June, which willcause most ranchers and farmersto spend a lot more energy incollecting information ahead oftheir annual visit to their taxadvisors. The health care bill,which was at the top of theWashington, D.C. agenda, wasthe vehicle that carried a numberof changes in the tax law. One ofthose changes is found in Sec-tion 9006 and greatly expandsthe use of Form 1099 which doc-uments income, other thanwages and salaries. For example,if your annual repair bills at thelocal welding shop exceed the$600 threshold, you will have toissue a 1099 to Joe’s WeldingService, which means you haveto find out his corporate name,official corporate address, andobtain his federal tax identifica-tion number. Once you have thatyou will mail him a Form 1099that indicates you have paid him$603.67 during the prior 12months.Maybe you bought a new

computer from Dell Computersand wrote a check for $738 tocover the computer, a printer,and an ink cartridge. At the endof the year you will have toobtain the corporate name,address, and federal tax identifi-cation number for Dell and mailthem a Form 1099 from SmithFarms.

The requirement is not justfor one single payment over$600, but the accumulated pay-ments throughout the year.Whether you are making month-ly interest payments to the bankor writing a single check at the

end of the year, you will have tosend a Form 1099 to your bankand it will have to supply its Fed-eral tax ID to you. Maybe it ismonthly bills to your diesel fuelsupplier, or to the bottled watercompany. If you want to be ableto deduct all of those expenses atMenards, Farm and Fleet, AceHardware, Lowe’s, or anywhereelse you run for a bag of boltsand a grease gun cartridge, youwill have to send them a Form1099 if your total checks exceed$600 during the year.Extension economist Craig

Althauser at Kansas State Uni-versity describes some of thedetails in his monthly newsletterin which he says corporationsbeing paid are no longer exemptfrom receiving Form 1099 fromtheir customers and clientele. Hesays you may have issued a Form1099 in the past for rent, inter-est, and custom work, but nowthe requirement is spread toeverything that is considered“property.” That includes seed,fertilizer, chemicals, feed, sup-plies, medicine, fuel, and othergoods and services.Another element of the health

care bill expands the informationrequired on the W-2 form sup-

plied to employees, if they areprovided with health insuranceas part of their compensation.The reporting will include thecost of the health insurance pre-miums paid for the employees.They will not pay tax on theamount, but will serve to verifywhether the employer was incompliance with health carerequirements.These new provisions do not

become effective next year, butwill become effective for tax year2012 and will make the first fewweeks of 2013 rather tedious inaccumulating the necessaryinformation. There is legislationalready being considered byCongress to repeal Section 9006,but unless it is approved andsigned into law, it will create sub-stantial changes in the tax prepa-

ration process, and also generatean estimated $17 billion addi-tional dollars in tax revenue forthe US treasury over the comingdecade.

SummaryRecent changes in the tax

code will require ranchers andfarmers to issue Form 1099 toany business which was paidmore than $600 in the prior taxyear. Such payments wouldinclude interest, seed, chemicals,fertilizer, parts and repairs, andother usually deductible items onthe ranch and farm. The require-ment will cause taxpayers to col-lect names, addresses, and feder-al tax identification numbers forthose many companies whichprovided goods or services in theprior tax year.

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Food prices to rise between now and 2019, except for one protein

by DANI FRIEDLAND, meatingplace.com

Food prices are expected to go up betweennow and 2019. Dietary changes and agrowing population will drive the increase,according to a report released by the UN’s

Food and Agriculture Organization and theOrganization for Economic Co-operation andDevelopment. The annual agricultural forecast says growing

swine herds in Brazil and China will likely keeppork prices in check as other food pricesincrease over 1997-2006 levels. On average, prices will remain below the lev-

els they reached during the 2007 and 2008

price spike. Beef and pork prices did not go upduring that period, and the forecast calls forthese costs to increase by 10 percent to 20 per-cent by 2019 as compared to 2007-2008 levels. Lower supplies and higher feed costs are

behind the predicted increase in livestockprices, as well as increasing demand for meatand processed food in developing countrieswith rising income levels. By 2050, the global population is expected

to hit 9.1 billion, up from roughly 6.8 billionright now, and the FAO has said that food pro-duction will have to increase by 70 percent.Agricultural growth is on track to hit that level,according to this year’s report.

. . . if your annual repair bills at thelocal welding shopexceed the $600threshold, you

will have to issue a 1099 to Joe’s Welding Service.

The reporting will include the cost of the health

insurance premiumspaid for the employees.

Page 7: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 7

I hate to pry but I’d love toask dogs when they are watchingtelevision if they have a favoriteshow and if they don’t thinkDancing With The Stars is reallylame? Whenever I see an urbandweller pick up dog poop andplace it in a plastic bag I’d love toask the dog if he or she wasn’tlaughing his or her socks off. Anddid they do it more often just towatch? Whenever I see a poodlewith one of those spiffy hairdosI’d love to ask if they didn’t feelstupid, or, if other dogs made funof them? When I see dogsdressed in clothes I’d love to askif they have a favorite designer?“Just between you and me,” I’dask, “don’t cats really get on yournerves?” I know that dogs reallyare man’s best friend but I’d loveto ask a Border Collie, “Am Ireally the best you can do for afriend?”If given the choice between

interrogating a horse or Hitler I’dpick the equine every time. Thefirst question I’d ask a horse is if,when they see an obese personcoming at them with a bridle intheir hand, don’t they get thesudden urge to run like the wind?I’ve always been curious if horsesprefer women to men because itsure seems that way. I’d ask traildriving horses if they like cowboypoetry, I’d poll Quarter Horses todetermine if they prefer headingor heeling, and I’d ask a herd ofwild mustangs if they didn’t thinkthoroughbreds were snooty andoverbearing?I’d query beef cows in a pas-

ture if they ever had their eye ona certain bull and if another bullmade love to them were they dis-appointed they’d have to waituntil next year? I’d ask bulls ifthey have a favorite auctioneer, ifcows know it’s Christmas, andhow do they feel about Al Goreand meatless Mondays? I‘d askwhat they think of livestockshows, if they preferred FFA or4H owners, and do they knowwhat’s coming at the end of theirlives? The one question I’d love toask all meat animals is, “Wouldyou have rather lived to becomesomeone’s supper, or to neverhave lived at all?”I think I already know the

answer to that one.

should justify the mandatorymodification of facilities, andthis proposed rule would requirethat justification.”

The National Pork ProducersCouncil (NPPC) says it is care-fully reviewing details of the pro-posed changes to the Packersand Stockyards Act contained inthe 2008 Farm Bill.A news release issued by the

NPPC says the change may limitpork producers’ options in sellingpigs to processors.Among numerous changes to

the law, the proposed rule wouldredefine what constitutes an“undue or unreasonable prefer-ence or advantage” in a livestockcontract.“We don’t want to see produc-

this is definitely a positive start,”Thornsberry concluded.Still, other groups differ in

their view of the GIPSA propos-al. The National Cattlemen’sBeef Association (NCBA) iswary of the changes.“In general, we have serious

concerns with any efforts toincrease government intrusion inthe marketplace,” said SteveFoglesong, president of theNCBA, in a news release fromthat organization. “Cattle produc-ers support free-market principlesand we deserve the right to enterinto private negotiations betweenwilling buyers and sellers.”Meanwhile, American Farm

Bureau Federation President(AFBF) Bob Stallman praised therules, citing the sections on capi-tal investment, which he pointedout, would reduce requirementsfor new investments in modifica-tions of farm buildings.“These continuous modifica-

tions keep producers in debt andminimize their ability to negoti-ate reasonable contracts,” saidStallman, quoted in a newsrelease. “Farm Bureau believesthe contracting companies

er marketing options limited byoverly broad government regula-tions that negatively impact porkproducers’ bottom line,” saidNPPC President Sam Carney, apork producer from Adair, Iowa,quoted in the release.The American Meat Institute

(AMI) had the harshest wordsfor USDA and its proposal. Itaccused USDA of “attemptingto turn the clock back on thelivestock and meat marketingpractices that have made theU.S. meat production system the

envy of the world.” AMI says theproposal “could potentially causeharm and enormous disruption.”“This is not guaranteeing suc-

cess,” said Secretary Vilsack, dur-ing the conference call, “this isjust making sure that if you doplay by the rules and you workhard and you’re willing to makeinvestments, that you’ve got ashot at success.”GIPSA is taking comments

on the proposal until August 23.

Source: brownfieldagnews.com

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Riding Herd continued from page one

USDA Livestock Rule continued from page four

Among numerous changes to the law, the proposed rule

would redefine what constitutes an “undue

or unreasonable preference or

advantage” in a livestock contract.

Page 8: LMD July 2010

Page 8 Livestock Market Digest July 15, 2010

Many of us use referencesto help us make deci-sions, confirm ourbeliefs, or for inspira-

tion. Books (or online versions)like the “Statistical Abstract ofthe United States,” the “MerckVeterinary Manual,” the “Bible,”the “Angus Herd Sire Registry”or the “Congressional Directory.”A recent acquisition for my

audio parody library is a CD enti-tled “The Udder Side,” composed,recorded and available by JudyWilliams at judyntom@ ixi.net. Itcontains such titles as the dystociacalf’s lament, “Take These ChainsFrom My Parts and Set MeFree!”, the grafted calf’s favorite“She Can’t Kick Me Now ‘CauseMama’s Tied!” and the spring-dri-ve theme song, “Don’t You EverGet Tired of Herding Me!”Ms. Williams surely must be a

cow psychologist, the way shecan see inside their thinking.

Since we all have global warmingon our minds because the pressand the Algorites keep pointingto cows as a major producer ofgreenhouse gasses, her songabout Vegan F . . . Flatulationswas spot on. It seems to me thatmost of the urban animal rightsactivists, Defenders of Wildlife,Sierra Club zealots and political-ly correct Luddites proclaimthemselves vegetarians. It is atrade-off to maintain credibility.I mean, if you want to remove alltrace of humans in the wilder-ness, release endangered wolvesin downtown Beverly Hills orDetroit, and think eating icecream, cheese, hamburgers,spare ribs and chicken wings istantamount to murder, then it isa sacrifice they should make.However, there is a corner

they have backed themselvesinto, that must give them con-sternation. I would assume thatomnivores (the human race) whorestrict their diet to only plantsmight experience a change intheir visceral bacterial popula-tion. Now, I don’t know that as afact. But if you’ve ever heard afaithful vegetarian claim that hegot sick from eating broth thathad been stirred with a spoonthey’d used to serve the chile concarne, it might be proof thatenteric conversion could happenin people. If we accept thatpremise that vegetarians canactually affect their digestive sys-tem by changing their diet, thenthe gaseous by-products of thisnew abnormal digestive systemwould be more like that of aruminant. Methane, for instance,is a product of the breakdown ofbiological material, i.e., compostheaps, land fills, wetlands, ter-mite mounds, rice fields, burningnatural gas in your home or car,and enteric fermentation.Enteric fermentation is thedigestion of grass and graininside a ruminant’s rumen andvegetarian’s intestines.Assuming this to be true, then

vegetarians would expel a higherlevel of noxious greenhousegasses being released into theatmosphere by going ‘vegan.’Each of their clever commercialsand celebrity endorsementswould have to contain warnings.Produce departments would berequired to label each fruit andvegetable with the amount ofgreenhouse gasses you wouldemit per serving. In the end AlGore would be selling them car-bon credits from RendezvousBarbecue, Memphis, Tenn.Blaming others when your

own house is not in order is aslippery slope.“I refuse to take all the heat,

there are some folks that don’teat meat.”The air is blue or is it green,

they are the real gas machine.”Judy Williams, rancher.

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Page 9: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 9

by RITA JANE GABBETT

Cattle and calves on feed forthe slaughter market in theUnited States for feedlotswith capacity of 1,000 or

more head totaled 10.5 millionhead on June 1, up 1 percentfrom a year ago, according toUSDA’s monthly Cattle on Feedreport. Placements in feedlots during

May totaled 2.02 million, 23 per-cent above 2009. “The recent surge in place-

ments implies an increase in cat-tle availability later in the year,”according to the CME Group’sDaily Livestock Report. “For themoment, however, market-ready

fed cattle supplies remain tight.” Oklahoma State University

Extension Livestock MarketingSpecialist Derrell Peel agreed. Inan analysis of the USDA report,he noted the increase in cattleplacements comes after monthsof feedlots reducing inventories.“After two months of largerplacements, we will likely seeslower placements until summergrazing cattle are available in thefall,” he predicted. Peel forecast continued sea-

sonal pressure on fed cattleprices until Labor Day, withrecovery expected in the fourthquarter, adding that just how lowsummer prices will go willdepend on demand. Boxed beef

demand dropped sharply lastmonth, he noted, but appears tobe stabilizing. “If [beef demand] holds near

current levels, there is not a lotof pressure for fed prices to dropmuch further,” Peel said. USDA reported marketings

of fed cattle during May totaled1.87 million, 4 percent below lastMay and the lowest for themonth of May since the seriesbegan in 1996.The DLR suggested very high

prices likely caused packers to beless aggressive in trying to securecattle, especially with beef salesslowing in May and sparse Junedelivery orders. J.P. Morgan analyst Ken

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The “paralyzing” principle

The Gulf oil spill is having all sorts of nastyconsequences well beyond damage to theregional environment and economy. Notleast, the resulting political panic seems to be

rehabilitating the thoroughly discredited theory ofregulation known as the “precautionary principle,”says the Wall Street Journal. This principle holds that government should

attempt to prevent any risk — regardless of thecosts involved, however minor the benefits and evenwithout understanding what those risks really are.Developed in the late 1960s, this theory served

as the intellectual architecture for the Environmen-tal Protection Agency (EPA), which is still requiredto eliminate certain environmental risks no matterhow expensive or pointless the effort is. This same mentality is now prompting not

merely tighter safety standards, but President Oba-ma’s moratorium on all new deep water drilling,

shutting down dozens of Gulf and Alaskan proj-ects, maybe permanently, says the Journal: Last month, 26 Democrats demanded that the

government fold up BP’s other major Gulf opera-tion, Atlantis, “to ensure that the explosion andmishap of the Horizon platform are not replicated.”Meanwhile, Governor Charlie Crist and other

Florida politicians want a Gulf drilling ban untoeternity, and the California, Washington and Ore-gon Senate delegations want one for the WestCoast, too. “Without a permanent ban on drilling off our

shores,” said Dianne Feinstein, “there is no guaran-tee whatsoever that this will not happen again.” In other words, the precautionary principle is

back with a vengeance, says the Journal.

Source: Editorial, “The ‘Paralyzing’ Principle,” Wall Street Journal, June21, 2010.

More cattle placed on feed, but supplies still tightGoldman called the report “neu-tral” for packers such as TysonFoods. “Though the increase incattle on feed was, all else equal,

good for packers such as Tyson(because more supply equalslower costs) we think it alreadywas priced into the stock,” hewrote in a note to investors.

Source: www.meatingplace.com

Grant to Step Aside at National Western Stock Show

Pat Grant, President / CEOof Western Stock ShowAssociation (aka NationalWestern Stock Show) will

step aside from his currentduties in the near future. The announcement was made

in late June by Jerry McMorris,Chairman of the Board. “Patmight be stepping away from theday to day responsibilities of run-ning NWSS, but he will continuein his role as a key resource forour long range planningprocess,” McMorris explained.Grant joined the NWSS Exec-

utive Committee in 1985 andbecame President/CEO in 1991. During his tenure, he oversaw

the funding and construction ofthe Events Center, the Expo Halland the Hall of Education; theaddition of the Coors Art Exhibi-tion & Sale (with proceeds goingto the NWSS Scholarship Trust);increased ticketed events from 23each year to 43 by bringing innew exciting shows includingMexican Rodeo Extravaganza,Martin Luther King, Jr. African-American Heritage Rodeo, PBRDenver Chute-Out Bull Riding,An Evening of Dancing Horses®, Super Dogs and planned themost successful National West-ern Stock Show in history, the100th Anniversary show in 2006which drew almost 750,000guests.National Western will be con-

ducting a national search to iden-

tify and select a dynamic leaderwho will continue to build uponthe stock show legacy, tradition,charitable mission and history. Grant will continue as Presi-

dent during the entire searchand transition process. Prior to 1991, Grant was a

Colorado State Representative(1985–1992) and a Director andShareholder of Grant-McHen-drie Law Firm (1982–1993).

Page 10: LMD July 2010

Page 10 Livestock Market Digest July 15, 2010

FOXNEWS.COM

Federal environmental regu-lations that prevent borderagents from expandedpatrols of national wildlife

parks appear to have had a handin the government’s decision todeclare an 80-mile stretch of Ari-zona-Mexico border a virtual no-man’s land.The U.S. Fish and Wildlife

Service (FWS) has closed about3,500 acres of Arizona borderlands — including parts of theBuenos Aires National WildlifeRefuge — warning Americansthat it cannot guarantee theirsafety in the face of increasedviolence from drug gangs andillegal immigrants.That warning comes nearly

three months after Rob Krentzwas shot to death near the bor-der. The shooting prompted fourRepublican lawmakers to intro-duce legislation banning theInterior Department from usingenvironmental laws to limit bor-der agents from doing their job.The bill, H.R. 5016, has sincebeen referred to the Subcommit-tee on National Parks, Forestsand Public Lands.U.S. Representatives Doc

Hastings (R-WA), Peter King (R-NY), Rob Bishop (R-Utah) andLamar Smith (R-TX) said theirbill, if passed, will address envi-ronmental degradation of federallands and help close nationalsecurity gaps along the border,which they say has become anuncontrolled highway.“Effectively securing our bor-

ders against illegal entry is a mat-ter of homeland security,” Kingsaid in a statement. “BorderPatrol agents spend every day onthe front line, securing ourhomeland from terrorists. Deny-ing or limiting the Border Patrolaccess to public lands and allow-ing the flow of illegals, includingpotential terrorists, doesn’t pro-tect anything.”The lawmakers said internal

documents showed that the Inte-rior Department and the U.S.Forest Service have consistentlyand actively prevented BorderPatrol agents from securing U.S.borders by requiring Depart-ment of Homeland Security offi-cials to complete lengthy andexpensive environmental analy-ses, and even blocking BorderPatrol agents from enteringsome areas.“As a result, Border Patrol

agents are being forced to wadethrough bureaucratic red tapejust so they can do the job Con-gress has mandated: gain opera-tional control over the U.S. bor-der,” according to a fact sheetreleased by House of Represen-tatives’ Natural Resources Com-mittee Republicans.Kendra Barkoff, a spokes-

woman for the Interior Depart-ment, told FoxNews.com inApril that Secretary Ken Salazarvisited the area in March to meetwith land managers and federal,state and local law enforcement,including U.S. Customs and

Border Protection and Home-land Security officials.She said Salazar placed a high

priority on working with DHSand other agencies to “meet thetwin goals of protecting ournational security and our naturalresources.”But some federal lands are

specifically targeted by criminals,drug traffickers and humansmugglers for easy access intothe United States from Mexicoor Canada, the congressmen say.The Interior Department, the

primary land managementagency for 40 percent of theMexican border and 10 percentof the Canadian border, warnedof potential problems in a fiscalyear 2002-2003 report, ThreatAssessment for Public Lands.

“Virtually all of the lands man-aged by Department of the Inte-rior (DOI) along the Arizona/Mexico border are sparsely pop-ulated with easy access into theUnited States from Mexico,” thereport reads. “Terrorist [sic]wishing to smuggle nuclear —biological — or chemical (NBC)weapons into the United Statesfrom Mexico could use well-established smuggling routesover DOI-managed lands.”Border Patrol agents, park

rangers and private citizens havebeen killed in these federal lands,most recently on March 27, whenArizona rancher Rob Krentz wasmurdered by a person whoentered and exited the U.S. ille-gally via the San BernardinoWildlife Refuge — a fact con-firmed to the House of Represen-tatives’ Natural Resources Com-mittee Republicans by officialsfrom both Customs and BorderProtection and the FWS.In 2007, Krentz’s wife, Sue,

wrote a letter to Congressopposing additional wildernessareas in Arizona she claimedwould worsen criminal activityalong the border.“We have experienced $6.2

million dollars of damages to ourranch and water line because ofillegal foot traffic,” the letterread. “These areas along the bor-der have long been targetedbecause of the high amount ofprivate property with[in] theboundaries.”Krentz wrote that ranchers in

the area, herself included, werefearful for their lives.“It is not right that illegal

immigrants and drug smugglersshould take precedence over hon-est, hardworking Americanswhose recreation and livelihood isdamaged,” the letter continued.“It is the job of the federal gov-ernment to protect the definedU.S. borders from invasion.”

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. . . some federal lands are specifically targeted

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Page 11: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 11

LOUIS BERGERON, Stanford News Service

Advances in high-yield agri-culture over the latter partof the 20th century haveprevented massive

amounts of greenhouse gasesfrom entering the atmosphere —the equivalent of 590 billionmetric tons of carbon dioxide —according to a new study led bytwo Stanford Earth scientists.The yield improvements

reduced the need to convertforests to farmland, a processthat typically involves burning oftrees and other plants, whichgenerates carbon dioxide andother greenhouse gases.The researchers estimate that

if not for increased yields, addi-tional greenhouse gas emissionsfrom clearing land for farmingwould have been equal to asmuch as a third of the world’stotal output of greenhouse gasessince the dawn of the IndustrialRevolution in 1850.The researchers also calculat-

ed that for every dollar spent onagricultural research and devel-opment since 1961, emissions ofthe three principal greenhousegases — methane, nitrous oxideand carbon dioxide — werereduced by the equivalent ofabout a quarter of a ton of car-bon dioxide — a high rate offinancial return compared toother approaches to reducing thegases.“Our results dispel the notion

that modern intensive agricul-ture is inherently worse for theenvironment than a more ‘old-fashioned’ way of doing things,”said Jennifer Burney, lead authorof a paper describing the studythat will be published online bythe Proceedings of the NationalAcademy of Sciences.Adding up the impactThe researchers calculated

emissions of carbon dioxide,methane and nitrous oxide, con-verting the amounts of the lattertwo gases into the quantities ofcarbon dioxide that would havean equivalent impact on theatmosphere, to facilitate compar-ison of total greenhouse gas out-puts.Burney, a postdoctoral

researcher with the Program onFood Security and the Environ-ment at Stanford, said agricul-ture currently accounts for about12 percent of human-causedgreenhouse gas emissions.Although greenhouse gas emis-sions from the production anduse of fertilizer have increasedwith agricultural intensification,those emissions are far out-stripped by the emissions thatwould have been generated inconverting additional forest andgrassland to farmland.“Every time forest or shrub

land is cleared for farming, thecarbon that was tied up in thebiomass is released and rapidlymakes its way into the atmos-phere — usually by beingburned,” she said. “Yield intensi-fication has lessened the pres-

sure to clear land and reducedemissions by up to 13 billiontons of carbon dioxide a year.”“When we look at the costs of

the research and developmentthat went into these improve-ments, we find that funding agri-cultural research ranks amongthe cheapest ways to preventgreenhouse gas emissions,” saidSteven Davis, a co-author of thepaper and a postdoctoralresearcher at the Carnegie Insti-tution at Stanford.To evaluate the impact of

yield intensification on climatechange, the researchers com-pared actual agricultural produc-tion between 1961 and 2005with hypothetical scenarios inwhich the world’s increasingfood needs were met by expand-ing the amount of farmlandrather than by the boost in yieldsproduced by the Green Revolu-tion.“Even without higher yields,

population and food demandwould likely have climbed to lev-els close to what they are today,”said David Lobell, also a coau-thor and assistant professor ofenvironmental Earth system sci-ence at Stanford.“Lower yields per acre would

likely have meant more starva-tion and death, but the popula-tion would still have increasedbecause of much higher birthrates,” he said. “People tend tohave more children when survivalof those children is less certain.”Avoiding the need for more

farmlandThe researchers found that

without the advances in high-yield agriculture, several billionadditional acres of croplandwould have been needed.Comparing emissions in the

theoretical scenarios with real-world emissions from 1961 to2005, the researchers estimatedthat the actual improvements incrop yields probably kept green-house gas emissions equivalentto at least 317 billion tons of car-bon dioxide out of the atmos-phere, and perhaps as much as590 billion tons.Without the emission reduc-

tions from yield improvements,the total amount of greenhousegas pumped into the atmosphereover the preceding 155 yearswould have been between 18and 34 percent greater than ithas been, they said.To calculate how much mon-

ey was spent on research foreach ton of avoided emissions,the researchers calculated thetotal amount of agriculturalresearch funding related to yieldimprovements since 1961through 2005. That produced aprice between approximately $4and $7.50 for each ton of carbondioxide that was not emitted.“The size and cost-effective-

ness of this carbon reduction isstriking when compared with pro-posed mitigation options in othersectors,” said Lobell. “For exam-

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continued on page fourteen

Agriculture slows pace of globalwarming, say Stanford researchers

Page 12: LMD July 2010

Page 12 Livestock Market Digest July 15, 2010

The Animal AgricultureAlliance urges farm man-agers to be watchful for anumber of individuals who

have been found responsible forsome of the latest undercoveractivist videos released to themedia and public in the pastyear. The Alliance recommendsthat all producers ensure highstandards of animal welfare byfollowing approved industryguidelines. Operators should alsoreview their hiring practices, trainemployees on proper animal han-dling according to company poli-cy, and hold all workers account-able for their actions.The activist tactic of obtaining

illicit employment at a farm orprocessing plant in order toacquire video intended to malignthe reputation of farmers andranchers is becoming increasinglycommon. While animal abuse inany shape or form is never con-doned by the agriculture indus-try, activists use highly-editedimages of violence and neglect toprey on the emotions of the pub-lic. It is hard to determine theauthenticity of the images. Toooften, the activists wait for weeksor even months before turningthe video over to the properauthorities. By waiting for themost politically opportune timeto ‘go public,’ they allow anyalleged abuse to continue. The following individuals have

been connected to a number ofrecent undercover video cam-paigns.

“Jason Smith”: It appearsone individual is responsible forundercover videos taken at Qual-ity Egg of New England, Bush-way Packing Inc, Maine Con-tract Farms, Wiles Hog Farm,Hodgins Kennels, C.C. Baird,and at least one other dog breed-ing facility. It is probable thesame individual is responsible forundercover videos taken at Gem-perle Farms, Norco Ranch,DeCoster Egg Farms, and Hy-Line’s Spencer Iowa hatchery. According to credible sources,

the person who worked undercov-er at these facilities was born inHouston, Texas, as ChristopherParrett. Some of the other namesgiven to employers include JasonSmith, John Knoldt, and ChrisPaxton. When employed byMaine Contract Farms, the per-son claimed to be Jason Smithbut used a social security cardbelonging to John Knoldt, origi-nally Christopher Parrett. The social security card of the

individual who worked as JasonSmith identifies his social securi-ty number as ending in these lastfour digits: - 0852. His driver’slicense is from North Carolina.Smith also was found to have

led an undercover investigationof a Minnesota dog breeder in2009.

“Pete Romoland”: TheAlliance suspects that this sameindividual is also known as “PeteRomoland,” whose pictureappeared in a TIME magazinearticle accompanying an inter-view with him on March 6, 2009. In the TIME magazine article,

“Pete” indicated that he hadlegally changed his name twice.“Pete” also indicated that he is avegan and specifically stated, “. . . I do not believe that underany circumstances we shouldraise animals for food.”In the same interview, “Pete”

stated that he operated as anunlicensed investigator and hadcontracted with the anti-modernfarming group Humane FarmingAssociation and the vegan animalrights group Mercy for Animals.He proudly boasted that videofootage he was responsible forprocuring had been featured in atleast two HBO documentaries,including Death on a FactoryFarm. In July 2007, videoobtained by Smith (who went byKnoldt) was used in a trialagainst an Ohio hog farm. Hesaid that he had used his realname and a false address whenhe was hired. Video was obtainedusing a buttonhole camera.

“James/Jimmy Carlson”:Possibly the same, but withoutconfirmation, another individualwas hired by Country View Fam-ily Farms. The name providedwas Jimmy Carlson, supposedlyfrom Sag Harbor, N.Y. The indi-vidual was in his twenties andhad his hair cropped short in abuzz cut. Sources confirmed thatCarlson was also responsible forthe January 2010 video taken atWillet Dairy in New York forMercy for Animals.In a National Public Radio

interview that has since been tak-en offline, an individual tookcredit for conducting the Hy-Line undercover operation. Hestated that he worked for Mercyfor Animals. In the radio inter-view, this individual asked thereporter to call him “James.” Hesaid that since he often had touse his real social security cardwith his picture ID, he couldn’treveal his real name when givinginterviews.In all cases, the undercover

videos were provided weeks ormonths after the individuals hadleft employment, and the videoswere initially provided to eitherthe media or the USDA — notdirectly to the businessesinvolved. In most cases, employers real-

ized — after the fact — who the

former undercover employee hadbeen. They also recognized —after the fact — many behaviorsor actions demonstrated by theundercover employee thatallowed them to have access tothe animals and to producevideos — whether of real orstaged animal mistreatment. Some of the behaviors includ-

ed:� Befriending or mingling

with upper management — ask-ing questions about operationsincluding security matters ortime schedules.

� Volunteering for jobs beforeor after normal business hours.

� Volunteering for jobs thatare less desirable, but would pro-vide them access to the animals,often before or after normal busi-ness hours.

� Seeking employment in jobsbelow their skill or education lev-el; demonstrating previous jobsor experiences out of characterfor the job they were seeking.

� Seeking employment withno pay — so they can “learnmore about the business beforecommitting to that field” eitherwith regard to their education orpossibly before starting their ownbusiness.

� Using an out-of-state driv-er’s license.The Alliance urges producers

to use caution when hiring newemployees. Operators should fol-low the recommendations in theAlliance’s Farm & Facility Secu-rity Recommendations Report,which is available on the mem-bers section of the Alliance'swebsite. Operators must makecertain that they hire people whoare there for the right reasons —to help produce a safe and nutri-tious food supply.The agriculture industry must

be wary — activists have shownthat they will work every angle intheir quest to put all farmers,ranchers, and meat processorsout of business. The first step forevery farm operator is to ensurethat top quality animal care isprovided at all times. It is alsocritical that those in the industrytake extra security precautions toprevent getting targeted by ani-mal rights groups looking forvideo to aid in their fundraisingefforts and political campaigns.

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Feds want full market value for Utah land it bought for $1 in Mantuaby LEE DAVIDSON, Deseret News

The town of Mantua, BoxElder County — popula-tion 756 — once sold thefederal government 31.5

acres of land for $1. Now, thetown would like that unused landback for free. But the Obamaadministration said recently itwants full market value for thatland instead.Harris Sherman, Undersecre-

tary of Agriculture, told a SenateEnergy & Natural Resourcessubcommittee hearing that the

administration opposes a bill bythe Utah delegation that seeks togive Mantua the land for free.“Our concern with the bill is it

does not provide for fair marketvalue to the Forest Service,which runs counter to well-estab-lished, long-standing policies,”he testified.He added, “We are clearly

willing to work with the town ofMantua to effectuate this con-veyance. We want to do so underthe terms of the Townsite Act,which requires us to receive fairmarket value for the con-veyance.”

Page 13: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 13

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D A N D E L A N E YR E A L E S T A T E , L L C318 W. Amador Ave., Las Cruces, N.M. 88005 • (O) 575/647-5041(C) 575/644-0776 • [email protected] • www.zianet.com/nmlandman

WAHOO RANCH – Approx. 41,376 acres: 12,000 deeded, 6,984 BLM, 912 state, 40 uncontrolled and 21,440forest. Beautiful cattle ranch located on the east slope of the Black Range Mountains north of Winston,N.M., on State Road 52 — three hours from either Albuquerque or El Paso.The ranch is bounded onthe east by the Alamosa Creek Valley and on the west by the Wahoo Mountains ranging in elevationfrom 6,000' to 8,796'. There are 3 houses/cabins, 2 sets of working corrals (one with scales) and numer-ous shops and outbuildings. It is very well watered with many wells, springs, dirt tanks and pipelines.The topography and vegetation is a combination of grass covered hills (primarily gramma grasses),with many cedar, piñon and live oak covered canyons as well as the forested Wahoo Mountains. Thereare plentiful elk and deer as well as antelope, turkey, bear, mountain lion and javelina (46 elk tags in2009). Absolutely one of the nicest combination cattle/hunting ranches to be found in the Southwest.Price reduced to $6,000,000.SAN JUAN RANCH – Located 10 miles south of Deming off Hwy. 11 (Columbus Hwy)approximately 26,964 total acres consisting of 3,964± deeded, 3,800± state lease,14,360± BLM and 4,840± Uncontrolled. The allotment is for 216 head (AUYL).There are 278± acres of ground water irrigation rights (not currently beingfarmed) as well as 9 solar powered stock wells and metal storage tanks and approx. 6½ miles pipeline. The ranch begins on the north end at the beautiful Mahoney Park high up in the Florida mountains and runs 5½ miles down the moun-tains to their south end. It continues another 7½ miles south across their foothills and onto the flats. The ranch has a very diverse landscape with plentiful wildlife including quail, dove, rabbits, deerand ibex. Lots of potential and a good buy at $1,200,000.46 ACRE FARM LOCATED IN SAN MIGUEL – Full EBID irrigation and supplemental well. Bounded byHighway 28 on the east, County Road B-041 on the south and County Road B-010 on the west. Pricedat $14,000/acre – $644,000. 212 ACRE FARM BETWEEN LAS CRUCES, NM AND EL PASO, TX – Hwy. 28 frontage with 132 acres irri-gated, 80 acres sandhills, full EBID (surface water) plus a supplemental irrigation well, cement ditchesand large equipment warehouse. Reasonably priced at $2,000,000. 50.47-AC. FARM - Located on Afton Road south of La Mesa, N.M. Paved road frontage, full EBID (sur-face water) plus a supplemental irrigation well with cement ditches. Priced at $14,500/acre – $731,815.BEAUTIFUL 143.81 ACRE NORTH VALLEY FARM located in Las Cruces, N.M. next to the Rio GrandeRiver. Great views of the Organ Mountains. Cement ditches, 2 irrigation wells & EBID. 2 older housesand shed sold “as is”. Priced at $13,212/acre - $1,900,000. Will consider dividing.OTHER FARMS FOR SALE – In Doña Ana County. All located near Las Cruces, N.M. 8, 11, and 27.5 acres.$15,000/acre to $17,000/acre. All have EBID (surface water rights from the Rio Grande River) and severalhave supplemental irrigation wells. If you are interested in farm land in Doña Ana County, give me a call.

Farm PortionUnderAgreement

• Farm • Ranch • CRP Land • Dairy Lo cations

Dean NewberryReal Estate

Cell: 806/346-2081 • Res.: 806/363-6722Email: [email protected]

O: 806/364-4042 • F: 806/364-4350108 East 3rd • P.O. Box 966, Hereford, TX 79045

www.deannewberryrealestate.com

This ad is just a small sample of the properties that we currently have for sale.

Please check our website and give us a call!

Scottand co.Ranch and Farm Real Estate

Ben G. Scott, Krystal M. Nelson–Brokers 800/933-9698 day/night • www.scottlandcompany.com

We need your listings both large and small, all types of ag properties (ESP. CRP).

QUAY CO., N.M.: 880 acres, 3 pivots, alfalfa,home, pavement, PRICED TO SELL.SUNSHINE BELT OF N.M.: approx. 30 sections mostly deeded some BLM and State,employee housing and two sets of steel pens,county maintained, all weather road. Mild climate year round.HEART OF THE PLAINS: 8 section ranch with new set of pens, concrete bunks,truck/cattle scale and commodity barn, mobilehome, watered by subs, mill and pipeline, on pavement, hour from Lubbock.READY TO RANCH and DEVELOP (wind energy, comm., res.) Potter Co., TX. – 4872.8ac. of beautiful ranch country four miles northof loop 335, Amarillo, TX., pvmt. on four sides.Well watered by pumps powered by solar en-ergy (state of the art). Deer, quail and dove.

L1301 Front St.Dimmitt, TX79027

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

Idaho-OregonCall 208/345-3163 for catalog.

KNIPE

LAND CO.

RANCHESFARMSCOM’L.

Established1944

��������������

“Advertising with Livestock Market Digest and New Mexico Stockman for the past couple years has been a very positive experience. We have worked directly with Debbie Cisneros and she goes above and beyond! Both publications offer a great circulation and a great

website presence which helps us market more effectively for our clients. By advertising with them we get the results we desire.”

(800) 772-7284 * (541) 772-0000 * www.orop.com

THE LIVESTOCK MARKET DIGEST

Real EstateG U I D E

TO PLACE YOUR LISTINGS HERE, PLEASE CALL DEBBIE CISNEROS AT 505/332-3675,

OR EMAIL [email protected]

Page 14: LMD July 2010

Page 14 Livestock Market Digest July 15, 2010

ple, strategies proposed to reduceemissions related to constructionwould cut emissions by a littleless than half the amount that weestimate has been achieved byyield improvements and wouldcost close to $20 per ton.”The authors also note that

raising yields alone won’t guaran-tee lower emissions from landuse change.“It has been shown in several

contexts that yield gains alone donot necessarily stop expansion of

cropland,” Lobell said. “Thatsuggests that intensificationmust be coupled with conserva-tion and development efforts.“In certain cases, when yields

go up in an area, it increases theprofitability of farming there andgives people more incentive toexpand their farm. But in gener-al, high yields keep prices low,which reduces the incentive toexpand.”The researchers concluded

that improvement of crop yields

should be prominent among aportfolio of strategies to reduceglobal greenhouse gases emis-sions.“The striking thing is that all

of these climate benefits werenot the explicit intention of his-torical investments in agricul-ture. This was simply a side ben-efit of efforts to feed the world,”Burney noted. “If climate policyintentionally rewarded thesekinds of efforts, that could makean even bigger difference. Thequestion going forward is howclimate policy might be designedto achieve that.”

1,350 -1,400 AU’s YEAR ROUND – WINTER RANGE – 11,750DEEDED PLUS BLM and STATE LEASES - ONE CONTIGUOUSBLOCK - LOW OVERHEAD – GOOD IMPROVEMENTS – 10 MINUTES TO TOWN and SCHOOLS -$6,000,000 – CAN CUT TO 1,000 HD AND REDUCE PRICE! – P BAR

225 – 250 AU’s - 850 DEEDED (650 irrigated) – 1-1/2 MILERIVER - NICE MEADOWS – MODEST IMPROVEMENTS WITHGREAT WORKING FACILITIES – CLOSE TO TOWN and

SCHOOLS - $1,800,000 – WANT OFFER -CAN ADD CUSTOMHOME AND 80 ACRES – GREAT STOCKER OPERATION –

LYMAN – RAE @ 208-761-9553

LIFESTYLE RANCH 55 MILES TO BOISE – 2,213 DEEDEDACRES PLUS STATE AND BLM – DROP DEAD PRIVATE – 2 MILES MAJOR STREAM – BEHIND LOCKED GATE – COMFORTABLE IMPROVEMENTS – ELK, DEER, TURKEY,CHUKAR, HUNS, QUAIL, WATERFOWL - BEAR, LION

AND VARMINT – TROUT and BASS PONDS - $1,400,000 –WANT OFFER – TURKEY CREEK

LIFESTYLE – 320 DEEDED ACRES (105 irrigated) - COMFORTABLE IMPROVEMENTS – SPECTACULAR VIEWS –

BORDERS FEDERAL LANDS – ELK, DEER, TURKEY – ONLY MINUTES TO SOME OF THE FINEST YEAR LONG FISHING IN THE NORTHWEST – STEELHEAD, STURGEN,TROUT, BASS, CRAPPY AND MORE - $690,000 – WANT OFFER – POSY -RAE @ 208-761-9553

LIFESTYLE/INCOME – POSSIBLY THE FINEST WILDLIFE VARIETY/QUANITY AVAILABLE – 1,160 DEEDED ACRES (180 irrigated) – 2-1/2 MILES RIVER – 2 BASS PONDS –PLENTIFUL QUAIL, CHUKAR, DOVE, PHEASANT, WATER-FOWL, DEER and AND VARMINTS - EXCELLENT IMPROVE-MENTS – COW/CALF AND/OR STOCKER OPERATION FORINCOME /TAX ADVANTAGE - $1,900,000 – LANDRETH

AGRILANDS Real Estatewww.agrilandsrealestate.com

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

“EAGER SELLERS”

PREMIER RANCH FOR SALE12,000 acres, Terrell County, Texas.

Southwest of Sheffield, southeast of FortStockton. Excellent hunting ranch, mainly deer(whitetail and mule) and turkey. New hunter’slodge and walk-in freezer. Surface rights only;no minerals. Principals only. $400/acre, cash.

[email protected] • 432/683-0990 • 432/349-8448

IIss YYoouurr RReeaallttoorr QQuuaalliiffiieedd??JJOOHHNN KKNNIIPPEE,, BBrrookkeerr,, AAccccrreeddiitteedd LLaanndd CCoonnssuullttaanntt ((AALLCC))

KNIPE

LAND CO.

RANCHES – FARMS – COMMERCIAL

KKnniippee LLaanndd NNoorrtthh,, LLLLCC •• 220088//[email protected] • www.knipeland.com

Realtors® working in land now musthave education and greater compe-tence specific to land. The NationalAssociation of Realtors® added the

discipline of "land" to the National Associationof Realtors® — Code of Ethics in Dec., 2009.

Article 11, of the Realtor® Code of Ethics,says that land is now recognized as a specialized,professional service. Article 11 describes thatRealtors® are in violation of the code of ethics ifthey participate in a land listing or land deal ifoutside their level of competence and training.

Realtors® with little or no training andexperience in land sales need to hire a profes-sional with sufficient brokerage experience,such as a professional Accredited LandConsultant, to help them if they wish to work ona land related transaction. Otherwise, theRealtor® must disclose in writing that he orshe does not possess expertise, education orcompetence so parties in deal are aware that theRealtor® they are working with does not havethe specific marketing knowledge or training.

Knowledge and experience is one of thekeys to success in real estate sales. A real estatelicense allows an agent to sell any kind of realestate. Most select a certain area to work in, aspecific market and product to sell. For mostRealtors®, it's a type of residential real estate.

The World Organization Land Federation(WOLF), The American Land College, and TheRealtors® Land Institute each offer advancedland education and marketing courses, lec-

tures and events for real estate practitionersrelating to: (1) farm and ranch; (2) undevel-oped tracts of land; (3) transitional and devel-opment land; (4) subdivision and wholesalingof lots; and (5) site selection and assemblageof land parcels (6) land development and landbrokerage; (7) Site Selection. (8) Timber.

Each of these organizations offer valuableclasses real estate agents and brokers can com-plete to fully understand all the options andoperations in the land brokerage business. Andeach offers instruction and mentorship leadingto various land brokerage designations. TheALC (Accredited Land Consultant) designationis one such designation a land broker canattain and is indicative of a broker who hasconscientiously applied themselves, to acquirethe knowledge and practice of a professional.

Agents and brokers should take advantageof the educational opportunities available spe-cific to marketing and selling farms, ranches,

timber, land development that will enhancetheir credibility with clients, streamline learn-ing, and accelerate earnings potential.Realtors® who list and sell anything special-ized need to make sure they are in compliancewith Article 11 of the National Association ofRealtors® – Code of Ethics.

For more information on educational andmarketing opportunities, contact John Knipeat john@ knipeland.com. Knipe served twoterms as Regional Vice President, Region 12, ofthe National Association of Realtors®,Realtors® Land Institute.

JOHN KNIPE is President of Knipe Land Co., Inc.;Accredited Land Consultant with the Realtors®

Land Institute Past President of the Idaho Chapterof the National Association of Realtors®;Realtors® Land Institute Past Regional Vice President of National Association of

Realtors®; Realtors® Land Institute

Idaho Mountain Ranch: 59,896± ac. of deeded, State

and BLM. Run cattle, recreate,hunt and enjoy. In the Owyhee

Mtns. one hour from Boise,Idaho. Irrigated pasture, hay,timber, creeks, Snake River

frontage and 3 homes.$8,000,000.

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Agriculture slows continued from page eleven

In Wyoming, about $4 million worth of range-land cattle and sheep were lost to predators in2005. Using a computerized model, researchershave now simulated an individual ranch’s eco-

nomic impact of livestock losses to predators suchas wolves and coyotes. Both short-term profitabili-ty and long-term viability were found to be affectedby predation.The article appeared in the June 2010 issue of

the Journal Rangelands. The Western WyomingGrazing Model simulates cow–calf operations, tak-ing into account herd size, grazing strategies,annual livestock sales, and fluctuating cattle pricesto determine ranch income and viability.The model uses three scenarios to predict the

consequence of predation on profits: decreasedweaning weight, increased death loss, andincreased variable costs. Of these, reduced wean-ing weight had the greatest impact. This is becauseall calves would become less profitable when thestress of predation resulted in a lower sale weight,whereas death loss would affect only those animalsdirectly lost to predators. Reduced sale weights ofup to five percent were sustainable in this model.However, we have little scientific data describing

the impact of predation on weaning weights and abetter understanding of this relationship is needed.With an annual death loss of four percent, a

ranch would experience negative profits in three often years. Increasing the loss to ten percent wouldbring about an additional year of losses and possi-ble insolvency of the business. However, in thisscenario, the losses due to decrease in herd sizewere offset to an extent by increased sale of hay.Variable costs that might increase due to preda-

tion include herding costs, the need to check onand move animals more frequently, and increasedveterinary services. An overall cost increase of 20to 30 percent, which is unlikely, would be requiredto significantly affect profits.The model shows that predator control activities

that achieved a one percent reduction in death lossor a one percent lessening of the affect on weaningweights would be economically efficient. Thisknowledge can help determine how to best controlrangeland predators — whether individually orwith state and federal funding.

Full text of the article, “Ranch-Level Economic Impacts of Predation in aRange Livestock System,” Rangelands, Vol. 32, Issue 3, June 2010, isavailable at: www2.allenpress.com/pdf/rala-32-03-21-26.pdf.

The price of predators: An economic impact model for livestock ranches

Page 15: LMD July 2010

July 15, 2010 “America’s Favorite Livestock Newspaper” Page 15

Members of the South-west Brangus BreedersAssociation (SWBBA)are offering youngsters

in their region of New Mexico,Arizona, Utah and Colorado aunique opportunity to show aheifer in the months to come.Under a memorandum of

understanding (MOU)approved at the SWBBA annualmeeting in Ruidoso in late June,4-H or FFA members mayreceive a registered Brangusheifer along with feed andexpense funding to prepare aheifer to compete in the ArizonaNational or other appropriateshow. The heifer will be trans-ferred into the youth’s name forthe duration of the project andthe youngster must become amember of the InternationalJunior Brangus Breeders Associ-ation. Additionally, the youthwill be expected to provide dailycare and management of theheifer as directed by their 4-Hleader or FFA advisor as well asmaintaining a record book andfinancial records relating to theanimal. The heifer will bereturned to its breeder at theconclusion of the show season.To ensure a strong network forthe youngsters participating inthe program, the MOU must besigned by the youngster, his orher advisor or leader as well ashis or her parents and the breed-er of the heifer.

“We hope this project willenable youngsters to showheifers that would otherwise beunable to have one,” explainedBill Morrison, Lack-MorrisonBrangus, Clovis, New Mexico,“along with providing publicexposure to the Brangus breedthat fits so well in the region andthe breeders who provide theheifers.”Youngsters who participate in

the program must insure theirheifers for their full value asdetermined by the heifer'sbreeder and 4-H or FFA advi-sor. In addition to funding toassist with feed and travel costs,each youngster will receive $100for their efforts and be eligiblefor a $500 scholarship offered bythe SWBBA. The scholarshipwinner will be selected based ona written project story, a com-pleted record book and a letterof support from the leader oradvisor. The scholarship will bepaid directly to the student’s col-lege or technical school whenthe student provides SWBBAwith a copy of enrollment verifi-cation.Youngsters and Brangus

breeders interested in participat-ing in this program should con-tact SWBBA President Dr. BartCarter, Thatcher, Arizona athome, 928/348-8918 or office,928/348-4030; or Mr. Morrisonat home, 575/482-3254 cell,575/760-7263 in Clovis.

Crane Creek Ranch: Tehama County, 556 acres. Two smallhomes, winter range. West of Red Bluff.Priced at $975,000.Wilson Ranch: Modoc County, 487 acres, house, barn, summer range. Surprise Valley, Calif. Priced at$950,000.Willow Springs Ranch: Shasta County, 1,470 acres, barn, two homes, Cottonwood Creek frontage. Make offer.Pasture Ranch: Modoc County, 427 acres, nice home, 400 acres irrigated.2.5 miles Pit River frontage, priced at$1,600,000.Fisher Ranch: Modoc County, 2,808 acres, 465 irrigated, USFS andBLM permits, older nice home, 200 cowsincluded. Priced at 2,999,000.Hooker Creek Ranch: TehamaCounty, 1,023 acres, winter range, largeponds, recreation, electric, well, septic,telephone. Priced at $1,095,000.

Rubicon Ranch: Tehama County,2,082 acres, Hunting Ranch, pigs, deer,quail dove. Ponds and creek. Priced at$1,350,000.Spring Meadow Ranch: ShastaCounty, 160 acres, water rights, 50 acresirrigated, large home, swimming pool,barn, shop. Priced at $699,000.Trinity River Ranch: TrinityCounty, 117 acres, 5,000 ft. Trinity River frontage, excellent trout fishing.Priced at $665,000.Kelley Ranch: Modoc County, 658 acres, 156 acres irrigated, threehouses, barn, shop. Priced at $900,000Paskenta Ranch: Tehama County,487 acres, house, corrals, barns. Approx.200 acres, class one soil. New well, nursery-orchard. Priced at $1,795,000Horse Ranch: Tehama County. 26+acres, 14 acres irrigated, house, corrals,120x200 covered arena. 140 ft. cuttingarena, 16-stall barn, Cottonwood Creek frontage. Priced at $1,350,000

CALIFORNIA RANCHES FOR SALE R.G. DAVIS, BROKER

Properties and Equities

19855 S. Main St.P.O. Box 1020

Cottonwood, CA 96022Office: 530/347-9455

Fax: 530/[email protected]

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.

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

����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]

• 503 Ac. So. Navarro Co., Texas. It’s got it all. $1,950/ac.

• 532-acre CATTLE and HUNTING, N.E.Texas ranch, elaborate home, one-mile highway frontage. OWNER FINANCE at $2,150/ac.

• 274 ac. in the shadow of Dallas. Secludedlakes, trees, excellent grass. Hunting andfishing, dream home sites. $3,850/ac.

• 535-ac. Limestone, Fallas and RobertsonCo., fronts on Hwy. 14 and has rail frontage,water line, to ranch, fenced into 5 pastures,2 sets, cattle pens, loamy soil, good qualitytrees, hogs and deer, hunting. Priced at$2,300/ac.

• 1,700-acre classic N.E. Texas cattle andhunting ranch. $2,750/ac. Some mineral production.

• 146 ac. – Horse, hunting are cattle ranch N. of Clarksville, TX. Red River Co. Nice brickhouse, 2 barns, pipe fences, good deer, hogs,ducks, hunting. Price at $395,000.

• 256 ac. – E. Texas jewel. Deep, sandy soil,high, rolling hills, scattered good-quality trees.Excellent improved grasses, water line on 2 sides. Road frontage on 2 sides, fenced into 5 pastures. Five spring-fed tanks andlakes, deer, hogs, ducks. Near Tyler andAthens. Price $1,920,000.

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

MURNEY ASSOC., REALTORSSPRINGFIELD, MO 65804

� 5-acre Horse Set-up: Location-location,only 2+ miles north of Mountain Grove on Girl-stown Rd. New fencing, 20x40 new 3-stallhorse barn/shop/1-car garage, 1,300 sq. ft. ,3-br., 2-ba. manufactured home, wrap arounddeck ( 2 sides), nestled down your private drive.MLS #1010102,� 5 Acres – Log home. Price Decrease:3,800 sq. ft. log home, 6 br, 4 BA on 5 acresm/l. 35 x 68 bunkhouse/classroom heated and1 BA. Additional 55 acres m/l available to buywhich could give you access to the GasconadeRiver Asking $170,000. MLS#814022� 483 Acres, Hunter Mania: Nature at herbest. Dont miss out on this one. Live water (twocreeks). 70+ acres open in bottom hayfields andupland grazing. Lots of timber (marketable andyoung) for the best hunting and fishing (TableRock, Taney Como and Bull Shoals Lake) Reallycute 3-bd., 1-ba stone home. Secluded yes, buteasy access to Forsyth-Branson, Ozark and Spring-field. Property joins Nat’l. Forest. MLS#908571See all my listings at: paulmcgilliard.murney.com

~ SOUTHERN OREGON ~Farm/Ranch ~ Rural ~ Timber

Recreational PropertiesView available properties at:

www.orop.com

OREGON OPPORTUNITIESReal Estate

Tom Harrison, CCIM • 800/772-7284 • [email protected]

Spacious home, great views. Fenced in-ground pool. Four-stallbarn with runs, large shop with additional shed, row stalls, roundpen and arena. 15.28 level acres with 6.5 irrigated. $749,000Close in 48+ acres with panoramic views. Homesite situatedamong mature oaks. Lots of level ground for barn or shop.$249,00011.9 acres with 11.1 irrigated. Four-bedroom home. Lodge-styleinterior with stunning fireplace stonework and great floorplan.Shop, lighted arena, indoor and outdoor stalls and tack room.60x12 hay barn. RV hookups at shop. Year-around creek. Greatsoils. $850,000.Beautiful setting, level pastures. Home comes furnished. Landscaped and fenced grounds. Nice barn with stalls and shop area, hay barn and arena. 35+ acres with 23.6 irrigated and year-round creek. $799,000.Livestock ranch on 1,038 acres with irrigation, dryland pasture and feed lots. Four homes, five barns, shop, 2 sets of working corrals. $3,700,000.

THE LIVESTOCK MARKET DIGEST

Real EstateG U I D E

Southwest Brangus BreedersInitiate Youth Heifer Program

Efforts to turn out the lights

On June 10, by a 53-to-47vote, Senate Democratsdefeated a bipartisaneffort to halt the attempt

by the Environmental Protection

Agency (EPA) and the Obamaadministration to mount a regu-latory takeover of the U.S. econ-omy. Sen. Lisa Murkowski, Alaska

Republican, had offered a resolu-tion disapproving of the Environ-mental Protection Agency’s(EPA) ruling that carbon-dioxideemissions pose a threat tohuman health and the environ-ment. Murkowski, the entireSenate Republican caucus andthe six Democrats who voted forthe bill were doing no less thanreasserting Congress’ constitu-tional authority to regulate inter-state commerce, says H. SterlingBurnett, a senior fellow with theNational Center for PolicyAnalysis. Energy production and use

make up a large percentage ofthe economy and people’s well-being.The proposed EPA green-

house-gas regulations wouldhave a bigger impact over thelong term than the financialbailouts and the various stimuluspackages.It would have a larger impact

on our economy than any singlepiece of legislation other than,perhaps, the recently passedhealth care overhaul. Murkowski and her allies sim-

ply thought that elected mem-

continued on page sixteen

Page 16: LMD July 2010

Page 16 Livestock Market Digest July 15, 2010

TRI STATE LIVESTOCK NEWS

In financial terms it means alot, according to Calvin Pietz,Farm Business ManagementInstructor at Mitchell Techni-

cal Institute. The average businesspurchases within local communi-ties based on information provedby farmers enrolled in SouthDakota’s Farm/Business Manage-ment Program was $561,556, anincrease of $9,126 over 2008.Feed purchased topped the

expense list in 2009 at $79,934for the average enrolled farm.Much of this feed is producedand processed in South Dakotacreating a multi-million dollarindustry within the state.Equipment repairs and pur-

chases provide the basis for theag equipment industry in localcommunities. The average farmgenerated $30,855 in repair bills.Gas and lubricant purchasesadded another $21,209 in dollarspaid to local businesses.The livestock health industry

received an average of $17,414per farm in 2009.“The industries save the pro-

ducer millions in livestock losses,creating more spending revenuewithin each community,” saysPietz.Crop input expenses also

make up a large part of the farm

Name: ________________________________________________________________________________________________

Organization: __________________________________________________________________________________________

Address: ____________________________________________ City: __________________________ State: ___________

Zip: _____________________ Phone: _________________________________ Fax: _______________________________

Email: _________________________________________________________________________________________________

Western Legacy Alliance Research SpursCongressional Action on ExposingTaxpayer Funded Lawsuit Racket of Radical Environmentalists

YOU CAN HELP —JOIN TODAY!

THANK YOU FOR YOUR SUPPORT!

I am/our organization is committed to protecting the open spaces, private property, private businesses and ensuring the responsible use of public lands. Please list me/my organization as a member of the Western Legacy Alliance.

I have included my membership dues and my $____________ additional contribution.

Individual Membership $25 � Association Membership $500 � Corporate Membership $1,000 � Other $____________

RECEIPT OF CONTRIBUTION TO THE WLA: The Western Legacy Alliance thanks you for your contribution!

Amount: $

Cash:

Check#:

purchases from local vendors. In2009 the average farm spent$50,389 for fertilizers, $29,221for chemicals, and $66,592 forother crop expenses.There are other farm expenses

which benefit their communities.Hired labor cost were $17,308per farm in 2009, providing jobsand income for employees withinthe community. Interest pay-ments of $36,312 were paid perfarm allowing lending agenciesto raise funds for other commu-nity investments.The average farm also gener-

ated $7,946 in property taxes. Agreat deal of the budget of com-munity schools and local govern-ment is carried by taxes paid byeach farm or ranch.In addition to $561,556 spent

on operating costs, ag operationsspent another $111,928 on capitalimprovements — expenses includ-ed $42,025 on new buildings andland, and $58,199 on newmachinery and livestock equip-ment. An additional $11,704 wasspent on the purchase of breedinglivestock. Family living costs were$46,306 in 2009.The average farm consisted of

1,790 acres, of which 663 acreswere farmer-owned and 1,127acres were rented. Total invest-ment per farm by owner/opera-tor and lenders is $1,707,644.

Society for Range Managementannouncers Summer Tour:Express UU Bar Ranch

The New Mexico section ofthe Society for Range Man-agement (SRM) will beoffering an outstanding

opportunity to join managerMike Hobbs for a personal tourof the Express Ranch UU Barranch (www.expressuubar.com)August 6 near Cimarron, N.M.

From the mountains to theplains and in-between, the his-toric, 160,000 plus acre UU Barcombines stocker, commercialand breeding cattle operationswith high quality hunting, recre-ation and very attentive rangemanagement. The tour will beopen to ranchers and all thoseinterested in furthering the artand science of range manage-ment. Youth in particular will bewelcome.Portions of the proceeds from

the $50 tour ticket ($25 youthand students), which includes ahearty cowboy luncheon at theExpress UU Bar Lodge, will sup-port NM SRM scholarships, theNMSU Range Club, and theNMSU Range Plant ID team.Continuing education credits willbe available for Certified Profes-sionals in Range Management.For tour agenda and other

details see http://nmsrm.nmsu.eduor contact New Mexico SRMPresident-elect, [email protected]. Those seekingovernight accommodations inthe area should not delay as itwill be “high season in the highcountry.”�

Fremont okays immigrant ordinanceby LESLIE REED and CINDYGONZALEZ, World-Herald Staff Writers

City officials warned of highertaxes. Residents were toldthey’d likely see cuts in cityservices to pay for anticipat-

ed legal challenges.Yet voters passed a controver-

sial law aimed at ridding theirtown of illegal immigrants onJune 21, 2010.“You’ve got to take a step,”

said Jerry Hart, a leader of a peti-tion drive to put the ordinance onthe ballot. “You’ve got to dosomething.”Residents in this town of

25,000 just west of Omaha voted57 to 43 percent in favor of theordinance that city officialswarned could bring a legal battlecosting up to $1 million annually.The results were a reflection, sup-porters said, of growing frustra-tion with illegal immigration andthe federal government’s laxenforcement.But as quickly as supporters

raised a glass to celebrate theirvictory at the polls, the legal chal-lenge was on. The ACLU imme-

diately promised a lawsuit thatchallenges the constitutionality ofthe city ordinance that aims tocut off housing and jobs to illegalimmigrants by fining landlordsand employers who house or hirethem.“Our intention is to make sure

the law does not go into effect foreven one day,” said Amy Miller ofthe Nebraska chapter of theAmerican Civil Liberties Union.“It’s un-American. It’s unconsti-tutional.”And, she said, it would unfairly

discriminate against all Hispanics.Already, Brenda Garcia said

she was feeling a colder shoulder.She moved to Fremont 12 yearsago, drawn by its peaceful atmos-phere and family environment.Monday when she arrived at herpolling place, she was the onlyHispanic there.“When I opened the door,

everyone turned and looked atme,” she said.The vote was the latest spark

in the country’s explosive andemotional debate over illegalimmigration.It was the country’s first public

vote on an immigration law sincethe April passage of the Arizonalaw that ignited emotional debateand demonstrations across thecountry and even outside theU.S.Fremont’s special election

came at a time when Capitol Hillis embroiled over how to overhaulthe nation’s immigration system,which most agree is broken.Indeed, national news media

converged upon Fremont in thedays leading up to the vote, seek-ing to gauge small town Ameri-ca’s sentiments on the divisiveissue heating up political races allover the nation.While election results — about

45 percent of registered votersturned out — directly affect only

activity within Fremont’s borders,observers said the outcome couldset a legal precedent and moti-vate more towns across thenation to enact similar laws.Don Blackford of Logan,

Iowa, for example, said he willpush western Iowa towns to fol-low suit.“There will be a ripple effect,”

Blackford said. “Towns arescreaming for help. They’re cryingfor help.”Fremont supporters of the bal-

lot measure said they were moti-vated by jobs lost to illegal immi-grants and by rising costs fromemergency rooms and classroomshandling illegal immigrants.Hispanics today make up

about eight percent of Fremont’spopulation, compared to aboutfour percent in 2000. The growththis decade in Fremont has been85 percent immigrants, drawnlargely by jobs at meatpackingplants that sit just outside the citylimits. The potentially precedent-set-

ting move, however, will comewith a price tag for residents ofFremont.City officials have estimated —

based on two other cities current-ly fighting legal challenges to sim-ilar laws — that Fremont taxpay-ers could see a double-digit cityproperty tax hike and cuts in cityservices or a combination of both.If the measure ultimately

stands up in court, city officialssaid roughly $200,000 morewould be spent each year toenforce the provisions that pun-ish landlords who rent to illegalimmigrants and employers whoknowingly hire undocumentedworkers.John Weigert, another petition

leader, dismissed the city’s costestimates as “scare tactics.” If thecity attorney handles the caseproperly, it won’t be as expensive

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Turn Out Lightscontinued from page fifteen

bers of Congress, account-able to their constituents,rather than unelectedbureaucrats or judges shoulddecide if, when and how theUnited States shouldrespond to the potentialthreat posed by globalwarming, says Burnett. Pres-ident Obama, Senate Major-ity Leader Harry Reid ofNevada and the majority ofthe Democratic caucus dis-agreed, killing the bill.

Source: H. Sterling Burnett, “Murkowskivote isn’t end of the story; Democratspersist in efforts to turn out the lights,”Washington Times, June 15, 2010.

What does the farmer and ranchermean to your community?

as some predict, he said.Fremont City Council Presi-

dent Gary Bolton said Mondaynight that the people of Fremonthave spoken, but he is concerned.“It’s going to be very costly forthe city while this is litigated, and

we need to be prepared for that.”It was a two-year battle to get

the ordinance to a public vote.More than 1,000 people

packed an auditorium for the firstpublic hearing of the measure inJuly 2008.