Volume XXVIV, #4 Published monthly for its membership ... · tle Beef Association (NCBA) ... the pre-press production and design of printed communications ... of applications to plan

Sage SignalsVoice of the Nevada Livestock Industry

Volume XXVIV, #4 March 2007 Published monthly for its membership

In Elko for the Lincoln’s Day Dinner on Febru-ary 23, Congressman Dean Heller stopped at the Nevada Cattlemen’s Association Office to meet with board members and staff.

Recently appointed to the Natural Resources Committee, Heller discussed problems with graz-ing lands including the protection of “what hasn’t burned” and the elimination of cheat grass. Heller agreed with the immensity of the situation stat-ing that Nevada had lost to wild fires this summer an area bigger than some states represented by his associates in Congress.

President Spratling said there is need for funds to gather horses, an item eliminated from the President’s budget. Otherwise, the horses will take over the grazing lands. Heller said he would look into that issues. (His staff called the following Monday to ask for talking points for the budget discussion the following day. President Spratling was in Washington on other matters and responded.)

Spratling continued, “There seems to be an intolerance for the cattle industry and what we do. Heller discussed how this prob-lem surfaced during the last Democratic administration. He said crucial to this point was the appointment of judges to make af-firming decisions.

The ethanol subsidy which is causing the increase in corn pric-es, because of its use for ethanol and cattle feed, was examined. Heller said that this is a Presidential issue since Iowa, a heavy corn producing state was a barometer for the upcoming election.

Congressman Heller Visits NCA Office

Congressman Dean Heller (front left) meets with NCA Board members, from left: John Griggs, Suzy Barnes, Audrey Spratling, Boyd Spratling, Ron Torell and Harvey Barnes.

Heller emphasized that it is very important that the NCA keeps him informed on important issues going before Congress in order to protect Nevada’s livestock industry.

Attending the meeting were President and Mrs. Boyd Spratling, Mr. And Mrs. Harvey Barnes, Ron Torell and John Griggs, as well as Executive Director Jo-an Barnett.

Heller was accompanied by his Press Secretary Stewart Bybee who committed to putting photos of our meeting on the Con-gressman’s web site.

� March 2007Sage Signals

April 2-5

NatioNal iNstitute of aNimal agriculture aNNual meetiNg

SacramentoContact: (270) 782-9798

NatioNal raNge maNagemeNt school

April 11-12 - FallonApril 25-26 - Winnemucca

May 2-3 ElyMay 8-9 Elko

Contact: (775) 738-1251

Vested Water rights iN NeVada semiNar

May 3 • Battle Mt. Civic CenterMay 9• Elko Convention CenterMay 10 • Eureka Opera House

Contact: (775) 626-6389

May 14

NeVada cattlemeN’s associatioN

Board of directors meetiNg &legislatiVe Breakfast state capitol

Carson CityContact: (775) 738-9214

November 7-9

NeVada-califorNia cattlemeN’s associatioN aNNual coNfereNce

RenoContact: (775) 738-9214

Official Publication of the

Nevada Cattlemen’s Association

Boyd Spratling - PresidentDan Gralian - President-Elect

[email protected]

P.O. Box 310, Elko, NV 89803-310

Membership UpdateWe would like to thank the following people for joining or renewing their

membership with Nevada Cattlemen’s Association between January 24, and February 23 2007

Wilde & Sherry Brough, Brough Ranch

Herbert & Dolores Capurro, ZZ and 30 Ranch

Jay B. & Rebecca Dalton; F. Scott & Laurel S. Egbert, Egbert Livestock, LLC

John and Billie Filippini, C Ranches Inc

Kenneth & Becky Flippin, Broken F Ranch

Greg Foster, Battle Creek Ranch

Chris Gansberg Jr.Mickey LacaSuzie MonteroMike & Brigett Morrison

John & Kathleen Neff, John E Neff Co

Bob Parlasca, Black Elk RanchMike Peirano, Peirano RanchPatrick Schumacher, Fort

Dodge Animal HealthLee Smith MAI ARA, Lee B

Smith & AssociatesKelton Spain,

Schering‑Plough Animal Health

Blake SpratlingBoyd Spratling DVM, Spratling

RanchWilson & Barrows Ltd.David Zornes CEO, Red Lion

Hotel & Casino.

(New members are in bold.)

Mike Montero, the NCA’s Lobbyist, and Boyd Spratling, NCA Presi-dent, as well as a number of other board and committee members, monitor Legislation on behalf of Nevada’s cattle industry on a daily basis.

In addition, the NCA will hold their Board Meeting and Legislative Breakfast at the Capitol on May 14.

You, too, can help fortify our interests at the State Capitol:

Find out who your representatives are on the State Legislature website http://leg.state.nv.us

Encourage your friends and associates to join the NCA to help make our corporate voice stronger.

Contact other policy generators: Nevada Taxpayers Association www.nevadataxpayers.org or the Nevada Policy Research Institute www.npri.org.

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Your Voice Can Be Heard As The Legislature

Session Opens

Ron Cerri - 1st Vice PresidentRon Torell - 2nd Vice President

Nevada Cattlemen’s Association is grateful to announce that we

have recently received a donated computer system from a donor who

chooses to remain anonymous.

We are very appreciative.

March 2007 �Sage Signals

Executive Director’s Report

Barely finishing Convention wrap up, the Fallon Bull Sale process started with a Bull Sale Committee meeting by compressed video (where members can meet at their respective sites through the In-ternet). We started sponsor coordination, receiving of consignment papers and information, health paper and ear tag distribution, adver-tising placements, catalog advertising orders and trade show entries.

Memberships are collected at this time as well as renewal notices sent.

The Legislature opens, too, in February as well as the National Cat-tle Beef Association (NCBA) Convention takes place. Therefore, staff and leadership of the Cattlemen’s Association are involved, a number traveling to Nashville for the meetings. We have daily communica-tions in regard to pending legislation and judicial proceedings that af-fect the industry. Important activities in this regard are sent by email to the NCA Board of Directors. The National Beef Cattle Association sends extensive communications to their affiliates, of which we are one, to alert us on Federal concerns.

This month I traveled to an extended weekend in Denver attend-ing the National Western Stock Show. Although I missed the cattle shows and sales I did see the cow dog trials and met a number of sup-plier representatives with companies that serve Nevada. The Finals Rodeo is always a treat; the announcer started the rodeo with an an-nouncement from the NCBA Foundation regarding contributions to assist cattlemen hard hit by recent eastern state storms. Monday was spent in the NCBA office where I met with their public relations staff and learned “talking points” for interview requests from the press. We ‘play acted’ interview questions. The NCBA is more than willing to send their staff to Nevada to assist in leadership training. I also learned about the ‘infrastructure” of the NCBA, or how the associa-tion is organized. The NCBA will be hiring a representative for the western states soon to better serve us. I also met with their technol-ogy specialist who will be assisting our office in perfecting our record keeping and email systems.

It was a challenge to know that Nevada has a relatively low mem-bership in the NCBA with just over 100 members of our 700 NCA members. I encourage your support of the National Cattle Beef As-sociation. They are the backbone of our industry following important legislation on our behalf, an activity that neither our staff, leaders or members can adequately and effectively manage. The NCBA monitors such important legislation as horse slaughter, animal ID, eminent do-main and death tax. Further they are assisting with the amicus brief (friend of the court) for the pending Supreme Court Case regarding an eminent domain issue in Wyoming.

The NCA also supports the Sustainable Grazing Coalition, which will assist any permitee in government actions.

Another effort that has come forth this month is the efforts of the Western Counties Alliance based in Salt Lake City. This group held a Public Lands Summit in Winnemucca, unavoidably at the same time we were holding a board of directors meeting at before the Fallon Bull Sale. This group invited Nevada’s Congressional Delegation, the Gov-ernor’s Office, Federal Agencies, the State Legislature and local gov-ernments to discuss a wide range of topics of concern to cattlemen. (They have pledged to meet in times not conflicting with ours for their next meeting.)

Also, we have developed a relationship with Custom Ag Solutions who was a prime sponsor at our Conference. They are providing risk management information to assist ranchers in improving their finan-cial resources as well as hedging against loss. You will hear more infor-mation on their educational tools in this newsletter.

Two newsletters, the Sage Signals, have been published in the midst of these other activities. You may have noticed our new look designed by Julie Eardley, dba JE Productions, of Elko. Eardley specializes in the pre-press production and design of printed communications which included the recent Fallon Bull Sale Catalog. We have gained considerable positive comments about the newsletter as well as the catalog. This seems to be attracting more advertising and therefore greater support for the information we send you through the publica-tions.

Soon we will be producing and disseminating the NCA 2007 Policy Book that will be a convenient reference for our resolutions evolved from the Fall Conference. We also will be enhancing our web site by

including this information.Please call or stop by the office if you have

questions or wish to visit in regard to our ser-vices.

Jo-an Barnett, (775)[email protected]

February is one of the Cattlemen’s Association’s Busiest

4 March 2007Sage Signals

USDA Briefs

“WATERING THE WEST”Water Line Installation

Dispensing, Welding, & Plowing Available

See Us For All Your Fencing Needs

• Barbed Wire

• T Posts

• Drill Steel

7861 E. Idaho StreetP.O. Box 5689Elko, Nevada 89802

Joe & Kristi CummingMatt Anderson775-738-2677www.bosstanks.com

NCBA

USDA Proposes Expanding Trade of Canadian Cattle

The USDA is amending its minimal risk region importation policy which will expand the importation of live cattle from Canada. More information is posted on aphis.usda.gov. The proposal was presented at the recent NCBA Convention.

b b

USDA Allows Producers to De‑Register Premises

The USDA has agreed to allow livestock producers to remove their premises from the national database, since animal identification will remain a voluntary program. As a result the USDA is currently devel-oping a system for producers to un-register their premises. Anyone wishing to remove their premises from the database can contact the State Department or the USDA.

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USDA Ordered to Review Biotech Usage More Closely

A federal court has ordered USDA to conduct more detailed reviews of applications to plan experimental plots of genetically engineered crops.

NCBA Lauches National TV Show on RFD‑TV

NCBA has produced a weekly television show entitled NCBA’s Cattlemen to Cattlemen. The show brings the latest cattle industry news, markets and features. It is shown on Tuesday at 8:30 Eastern and rebroadcast on Wednesday at 4:30 a.m. and 12:30 p.m. and Saturday at 10 a.m. Eastern.

Important issues on NCBA’s ‘radar’:2007 Farm Bill

Funding dedicated to enhancing exports and reducing trade barriers

Programs to assist beginning farmers and ranchers

Increase conservation funding with programs such as Enviromental Quality Incentives (EQIP)

Animal ID

Horse Slaughter

Ethanol subsidy

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Nevada Land Action Asso-ciation (NLAA) has joined with the Public Lands Council (PLC), NCBA, and several other western states cattlemen’s associations in filing a “friend in the court” brief on the side of Wyoming rancher Frank Robbins in the Supreme Court case of Wilkie v. Robbins.

Mr. Robbins and his legal team will attempt to defend his lower court victories holding that cer-tain BLM employees had individ-ually resorted to criminal rack-eteering and extortion in their efforts to force Robbins to meet their demands for an easement across his private property. The Justice Department will argue that “regulators do not become racketeers through aggressive regulation”, that the methods of the BLM agents were protected by the agency’s governmental immunity.

While Mr. Robbins’ legal team focuses upon arguing the valid-ity of bringing the RICO viola-tion charges against government

agents, supplemental briefs filed by various “friends in the court” will provide addition informa-tion crucial to the Justices’ un-derstanding of the circumstances surrounding the case.

The PLC brief will endeavor to provide the Justices with addi-tional arguments supporting the fundamental private property right to exclude access to any entity, upon which Mr. Robbins based his decisions to deny BLM agents passage across his land, thus prompting the retaliatory behavior of BLM personnel.

NLAA decided that this case was important enough to war-rant financial support and in-volvement because of its po-tential for sending a warning to government agents. This to effect overzealous methods for achieving regulatory ends that might not be protected by the “sovereign immunity” of the agency, and might result in per-sonal criminal liability.

NLAA Joins In Supreme Court Property Rights Case

March 2007 �Sage Signals

Nevada was sparsely but widely represent-ed at the annual NCBA convention in Nash-ville, Tennessee, at the end of January. NCA past presidents John Falen, Joe Guild, and Preston Wright were in attendance, along with Steve Lucas, representing Nevada on the Cattlemen’s Beef Board (CBB), Lucy Re-chel, representing the Nevada Beef Council, Bob Butler, Executive Director of the Nevada Beef Council, and Susan Casey, President of the Nevada CattleWomen.

The effect of ethanol production, and the resulting high corn prices, on cattle markets was the primary topic of discussion in the meetings and in the hallways. In the end NCBA resisted calls from some areas for a subsidy program to cheapen the price of corn for cattle feeders, choosing instead to lobby for the end of tax incentives for etha-nol production which inflate the price etha-nol plants can pay for corn.

Otherwise, the mood seemed to be one of cautious optimism regarding the politi-

cal changes in Congress, with no extreme changes to national agricultural policies ex-pected. Presentations on the upcoming Farm Bill indicated further emphasis on NRC’s conservation programs providing money for the implementation of environmen-tally-friendly practices. Long term weather forecasts called for a hot, dry summer in the west. Cattle markets were predicted to be steady, 550 pound calves ranging from 100 to 120/cwt, with expansion of the national cow-herd expected to be slowed, partly due to extreme weather impacts. Animal ID seemed to be on a “back burner”, everyone hoping for a voluntary solution, though the majority of the trade show booths appeared to be marketing individual ID products. The possibility of mandatory country of origin labeling has arisen in the new Congress, along with the ID processes which would be inherent to such a mandate.

In committees one heard talk of “death tax” repeal being and of Endangered Species

Act reform being effectively dead, but horse slaughter prohibition will be difficult to stop. Disturbing regulatory trends, brought about by the impacts of large “factory farm” operations upon their surroundings, contin-ue to gain momentum, threatening in their extremes to apply to range and pasture op-erations.

John Falen ended his term as NCBA Re-gion VI Vice President, which included his serving on the NCBA Executive Commit-tee, where he kept watch on the interests of western cattlemen. Steve Lucas ended his long service on the CBB, receiving recogni-tion as part of the first father and son team to serve on CBB; Steve’s father had served as a dairy industry representative from Cali-fornia on the beginning of the beef check-off program. Preston Wright was sworn in as Nevada’s new representative on the CBB. Susan Casey was given an important role on the American National CattleWomen’s Beef Cook-off Committee.

NCBA

Annual NCBA Convention held in Nashville

� March 2007Sage Signals

March 2007 �Sage Signals

The NCA Board of Directors affirmed the nomination of Lucy Rechel for the 2007 Young Cattlemen’s Conference.

Rechel is Chairman of the Nevada Beef Council and a Director for the Nevada Cat-tlemen’s Association. She is owner/operator of Snyder Livestock in Fallon where she has developed breeding stock and works with seedstock producers and commercial cow-calf operators.

According to Rechel, “The exposure to oth-er aspects of the cattle industry on the YCC tour would benefit me as well as in my posi-tion on the two boards. It is easy to believe that my own operation is self sufficient, but every year at the NCBA conferences, I am re-impressed with how vast our industry is, how well we are represented by the NCBA and how I am just one cog in a gigantic wheel.”

Snyder Livestock has a bull test and sale where they have developed a broad evalua-tion that looks at everything from dam fertil-ity, to feedlot gain to fee efficiency (new this year). Rechel continues, “It would help me keep in perspective what is important to the individual producer, but also the entire meat producing industry. Snyder Livestock has re-ceived national recognition for their BVD bi-osecurity program. I would hope to see, first

hand, steps that other aspects of our industry are taking to combat this disease.”

She continued, “It is important that young people (the tour is limited for participants from 25 to 50 years of age) learn, not only to

manage their own operation, but to give their time and talent to our industry. I believe that the way in which I most effectively give back to my industry is through the educational programs which we host in conjunction with our bull sale. On the YCC tour, I would gain a broader perspective which would help me in selecting our programs, sharing what I have learned through our educational outreach.”

The objective of the conference is to build leadership skills and expose livestock produc-ers to all aspects of the beef industry from the industry structure to issues management to production research and marketing.

The YCC tour will begin in Denver with an overview of the beef industry. Participants will travel to Kansas to visit various cattle producing operations, then to Sioux City, Nebraska for a tour of Tyson Fresh Meats, on of the largest beef packing and processing plants in the world. From there participants will travel to Chicago and visit the Chicago Mercantile Exchange and the Bruss Company, a large meat purveyor. Next the group travels to the nation’s Capitol to meet with their re-spective congressmen and senators as well as visits with regulatory agencies that make de-cisions affecting the livestock industry.

• President and Mrs. Boyd Spratling have not only visited with the Governor this month but also visited the Chairs of the Nat-ural Resources Committee in both the Sen-ate and the House of Representatives. Also, President Spratling and several Board Mem-bers met with Congressman Dean Heller. All was to advocate for cattlemen’s interests in Nevada.

• Representatives of the NCA attended the National Cattlemen’s Beef Association in Nashville to assist in promoting Federal legislation to promote the interests of the in-dustry. The Executive Director visited the Na-tional Western Stock Show and the National Cattlemen’s Beef Association Denver Office to help improve the operations of the NCA and gather ideas for expanding their activi-ties.

• NCA members attended the Western Alliance Summit in Winnemucca to build a

coalition of various associations and govern-ments to improve public lands issues .

• The NCA produced the Fallon Bull Sale which is a service to its smaller members who do not have the volume to hold their own auc-tion sales. It also makes available quality bulls that have been sifted and graded to upgrade the quality of cattle in Nevada. This year, con-signors came from a wide region including a group from Louisiana.

• The NCA is sending one of its most pro-gressive ranchers and leaders, Lucy Rechel, to the young Cattlemen’s Conference so she can be even more effective in improving her op-eration and educate others.

• The leadership continues to monitor state issues such as rangeland fuel buildup, interstate movement of cattle, stockwater rights, inter-basin transfer of water and pri-vate property boundary marking.

• The NCA has upgraded its member com-

munication, Sage Signals, with a professional graphic artist to enhance the image of the association and better communicate to its members.

• The NCA has built a partnership with Custom Ag Solutions to present seminars on Cattle Risk Management to assist cattlemen in protecting against cattle price declines and explain options for livestock risk protection insurance and other tools.

• President Spratling has pledged assis-tance to the Governor and the BLM to replace the best people possible for important vacan-cies at the State Department of Agriculture and the BLM.

• NCA has partnered with the University Extension Office to travel and publicize a dis-play on Quality Assurance.

All of which helps your ranching operation improve its long-term ‘bottom line’.

Lucy Rechel to Cattlemen’s Conference

Current NCA Activity

� March 2007Sage Signals

The Fallon Bull Sale, held February 17, 2007 at the Fallon Livestock Exchange, sold 109 bulls with an average of $2,120.28. The high selling bull was an Angus consigned by C R Cattle Co. of Franklinton, Louisiana, sold for $3,400 to Wilfred Bailey of Eu-reka, Nevada.

Eight breeds were represented with the Best Range Bull honors going to a Hereford bred by Rex Daniels & Sons of Malad, Idaho. The Best Gelbvieh and Best Balancer were both owned by A C Ranch of Smith, Nevada. The Best Angus was from the Hone Ranch of Minden and the Best Simmental was con-signed by Butte Country Ranch of Sutter, Califor-nia. Price Angus of Nyssa, Oregon had the Best Red Angus Bull, and the Best Charolais was from Bianchi Ranches of Gilroy, California. Schwoerer Beefmas-ters had the Best Beefmaster Bull.

The heifers averaged $647 each with the Top Pen of Heifers won by Cooper Cattle of Oakdale, California.

Fallon 41st Annual All BreedsBull and Heifer Sale Results

Bul

l Pho

tos

cour

tesy

of L

eana

Stit

zel

Simmental

red angus

charolais

gelbvieh

beefmaster

range bull hereford

angus

Balancer

pen of heifers

(Jill Thacker, The Nevada Rancher)

Kathy Lofthouse of the Churchill County Cowbelles presents the 2006 Cowbelle of the Year Award to Vella Torvik. Lofthouse arranges for the Awards Banquet and Saturday morning breakfast during the Bull Sale week-end. This is a fundraising event for the Cowbelles.

(Jo-an Barnett)

The Churchill County High School FFA perform an in-valuable job feeding and handling the cattle during the sale. Their FFA Advisors Cortney Dahl and Michele Wisnefski also organized the fund-raising raffle of a heifer donated by Dave Stix of Western Nevada Cattle Feeders and panels donated by Wyatt Gates and Cor-rals, both of Fallon.

(Jo-an Barnett)

Ring men Mark Holt of the Hereford Association, Eric Duarte (Auc-tioneer) from Beatty, Oregon, and John Dickinson from the Angus Journal, as well as Monte Bruck (not shown) from Fallon Livestock Exchange were congratulated by the Bull Sale Committee for an out-standing job at their wrap up session after the Sale.

(Leana Stitzel, The Progressive Rancher)

Kelly and Rex Daniels receive the Best Range Bull Award from Bull Sale Chairman Chris Gansburg, who has chaired the Sale Committee as a volunteer for many years. The awards were donated by John and Renee Keithley of Pinenut Livestock of Gardnerville.

Note: We extend our apologies to Steve Biddinger for the omission of his name in the catalog. He has been a long-standing member and consignor.

The sale, produced by the Nevada Cat-tlemen’s Association, is a fund-raising event, not only for that association but for the FFA from Churchill County High School, whose members and leaders assist at the sale. Calves were donated by Ellison Ranch and Salmon River Cattlemen’s As-sociation, were supported by Demar Dahl, Damonte Ranch, Stockman’s Insurance, Gary Capurro, and Dave Stix. The heifer for the FFA raffle was donated by Dave Stix and the panels by Wyatt Gates & Cor-rals, both of Fallon. Awards were donated by Pfiser and Pinenut Supplies.

March 2007 �Sage Signals

Market ReportsFallon Livestock Exchange, Inc. (775)867-2020

February 20, 2007 Sale Every Tuesday 11:00 am

Weight/Type Steer/Bull Price Heifer/Cow Price300-400 lb. 104.00-118.00 95.00-108.00400-500 lb. 90.50-115.00 90.00-105.00500-600 lb. 85.00-109.00 80.00-93.50600-700 lb. 85.00-100.25 81.00-89.00700-800 lb. 78.00-93.00 63.00-75.50800 & over 73.00-84.00 61.00-75.50Breaker Cows - Fat 42.50-45.00Boner Cows - Medium 44.00-48.00Cutter Cows - Lean 32.50-41.00Feeder Cows 47.00-52.00Butcher Bulls 54.00-61.25Cutting Bulls 80.00-92.00

Shasta Livestock (530)347-3793 February 27, 2007 Kevin Devine [email protected] Website-www.wvmcattle.com

Weight/Type Steer/Bull Price Heifer/Cow Price300-400 lb. 100.00-133.00 xxxx-xxxx400-450 lb. 100.00-127.00 100.00-123.00450-500 lb. 100.00-127.50 100.00-117.00500-550 lb. 100.00-118.50 100.00-117.50550-600 lb. 96.00-110.00 93.00-102.00600-650 lb. 94.00-107.00 90.00-96.00650-700 lb. 93.00-105.00 87.00-94.50700-750 lb. 90.00-95.00 86.00-91.75750-800 lb. 90.00-92.50 xxxx-xxxx800-900 lb. 90.00-92.00 xxxx-xxxxBreaker Cows 42.00-49.00Boner Cows 36.00-43.00Cutter Cows 28.00-35.00Bulls 1 & 2 45.00-55.00

Pairs: Several bunches of big pairs with 400 lb. calves $1375-$1425. .

Older pairs $700-$825Calvy cows: Too few for proper market test.

Superior Livestock Auction Region 1-ID, OR, CA, NV February 23, 2007

Website-www.superiorlivestock.comCattle Type Weight Range PriceSteers 495-495 116.00-116.00

590-590 105.25-105.25635-635 100.00-100.00735-735 72.50-72.50750-775 87.50-95.00800-800 93.10-93.10850-850 93.25-93.50

Heifers 460-460 119.00-119.00650-650 94.00-94.00715-735 89.10-90.00780-780 88.00-88.00

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NCA Board Meets During Bull Sale Weekend

The Nevada Cattlemen’s Association met on February 16 at the Churchill County Extension Office.

Presentations:

Risk Management Presentation by Custom Ag Solutions

Beef Packing Plant Proposal by the Churchill County Economic Development Authority referred to committee

Resignation announcement by Don Henderson, Director, State Department of Agriculture was acknowledged in support of the new Governor

Board Action and Discussion:

2007 Budget Approved ‘in the black’

Contract for services with Nevada Beef Council defined

Sustainable Grazing Coalition Report

Report from Board Members who had attended the National Cattlemen’s Beef Association Convention

Request to support or not payment of $2500 for Amicus Brief for Supreme Court Eminent Domain Case - approved to recommend support to NLLA

Web site design proposal by JE Productions of Elko-accepted

Sage Signal article request by Progressive Rancher-accepted

CattleWomen’s Report - approved to donate $150 towards regional conference

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NCA SCHOLARSHIP OFFERED

The Nevada Cattlemen’s Association (NCA) is again accept-ing applications for NCA’s annual $1,000 scholarship. Appli-cants are required to:

Be a high school senior, planning to study in an ag related field at a two or four-year college

Have a 2.5 or higher GPA (official transcripts required)

Submit three letters of reference from teachers

Submit an essay between 1,000-1,500 words on any current issue affecting the beef industry

Applications are due April 30, 2007. Please send the required material, along with the application available by contacting the NCA Office at 775-738-9214 or email [email protected]

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10 March 2007Sage Signals

Purebred Black Angus Bulls

80 Bulls for Private Treaty Sale2-Year-OldsFall-YearlingsYearlings

These bulls are run on the tri-state border(Idaho-Utah-Nevada) on rocky, highdesert terrain. No irrigated pasture. Theyare non-grain fed and ready to go to work.Free Delivery within 300 miles.

Trich and Semen TestedC.L and Rhoda Simper Lynn, UtahHome 435-747-7647Work 208-312-0462

The dreaded “death tax” doesn’t seem to be going away. And with the present situation in Congress it looks like it might be staying for a long time. I know many ranchers, farmers, and land owners have some plan in place; trusts, charitable giving, gift-ing, Generation Skipping (GST). (Remember that’s one generation; and what

about the grandchildren?)All of these strategies today, either lack adequate funding,

or haven’t been updated and reviewed in a long time. As it stands now the estate tax exemption is going back down to 1 million in 2011. That’s the same rate as in 2001. Some prop-erties have more than tripled in appreciation in the last 10 years!

Life insurance has always been and will continue to be a

useful way to protect an estate tax liability, but has usually been cost prohibitive; so none or not enough was purchased. Not enough life insurance combined with increasing appre-ciations equals an estate tax nightmare.

Most estate planners, CPA’s, attorneys, and insurance agents are not aware of the advanced markets for life in-surance planning that can effectively secure maximum face values with little or no expense. Simply put, get a lot of life insurance for minimum out-of-pocket costs.

In addition, life insurance purchased more than 5 years ago is likely to be underperforming, overpriced and ineffective. Policies today have multiple uses, including disability and long term care protection, not simply a death benefit.

Now is the time to have your life insurance, whether held individually or in a trust, evaluated to ensure the utmost val-ue and protection. I am available to consult with you and your planner about some of the programs available and hopefully provide you with an estate tax solution.

Frank Welsh is a member of the NCA and BBB of North-ern Nevada, and is a native Nevadan serving the ranching community for over 10 years. He can be reached at 775-677-7050.

Estate Tax Solution

March 2007 11Sage Signals

Bulls Raised Right and Priced Right

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Corn Changes the Cattle Market – Time to Take Another Look at Price Risk Management?

by Kole Swanser, Custom Ag Solutions

Last fall cattle pro-ducers got a sharp reminder of just how the market for feeder and stocker cattle can be affected by corn price shocks. Demand for ethanol produc-tion has driven corn prices up sharply and dramatical-ly increased cattle feeding costs. Industry experts suggest that we have moved into a different market environment than we have seen for the last decade. As a re-sult, this may be a good time to re-consider the price risk management strategy that you have (or haven’t) been using.

Corn’s FutureIn his published cattle market update, Dr.

James Mintert of Kansas State University’s Department of Agricultural Economics re-cently had this to say about what’s ahead for corn prices, “…projected carryover supplies of less than 1 billion bushels mean the corn market will be sensitive to weather prob-lems this spring and summer.” He points to the following three risk factors that have potential to drive corn prices even higher in 2007:

1) A smaller than expected acre-age increase on the March planting intention report,

2) Any planting delays associated with weather problems in the Corn Belt, and

3) Summer weather in the Corn Belt.

According to Mintert, “any difficulties related to any of those would generate the possibility of another leg up in corn prices, and, I think, create significant additional downside risk in feeder cattle prices.”

Unfortunately, added market risk result-ing from corn price movements is likely to be more than a short-term phenomenon for cattle producers. “Longer term, U.S. live-

stock producers can expect to see more

corn price variabil-ity than

in the past,” says Mintert.

Risk Management

OptionsWhat can you do as a cattle

producer to navigate a future that may hold more price uncertainty?

You might start by making sure that you understand your own break-even

production costs. Then you will be in a position to consider various available price

risk management strategies and tools and decide if any of them make sense for your operation.

The USDA’s Risk Management Agency (USDA-RMA) has partnered with Custom Ag Solutions (CAS) and Kansas State Uni-versity (K-State) to educate producers about risk man-agement and available tools. Cattle Risk Management Workshops, delivered across the state, are designed to help producers understand hedging with futures and op-tions, forward contracting, and the federally subsidized Livestock Risk Protection insurance program. Work-shops for cattle producers have been held in Elko, Ely, and Fallon. Other events included a Crop Insurance Update in Lovelock, and a Farm Risk Management Workshop in Yerington.

Cattle producers can find many free resources on the web to help them better un-derstand and implement risk management. A USDA-RMA funded tool for forecasting and analyzing feeder cattle basis and price slides can be

found at www.beefbasis.com. K-State also provides a great variety of useful tools and informational material for cattle produc-ers at www.agmanager.info/livestock. And a dedicated website for Nevada producers with information about available risk man-agement tools, upcoming events, and other resources is maintained by Custom Ag Solu-tions at www.NevadaAgRisk.com.

Finally, cattlemen should be aware of a whole-farm revenue insurance program – Adjusted Gross Revenue Lite – that will be available to producers in Nevada for the first time this year, with a March 15, 2007 closing date.

Take ActionSo rather than simply worry about the

changing market environment, why not seize the opportunity to evaluate your op-tions? You might start by obtaining some information from the web. For more infor-mation on any of these, call CAS at 877-227-8094.

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CHECK OFF NEWSMarch 2007

NEVADA BEEF COUNCIL201 S. Roop Street Suite 101 • Carson City, NV 89701

Phone: 775-841-6224 • Fax: 775-883-7398 • e-mail: [email protected]

NASHVILLE and THE BEEF COUNCILIt was a working convention for all Nevadan’s that attended.

Beef Council Chairperson Lucy Rechel and board member Steve Lucas, along with me, attended just about every meeting that affected the Beef Council. One would be attending one meeting while the other person attended another.

One meeting that I attended was a panel with a supermarket meat buyer, a foodservice supplier (SYSCO) along with a representative from Certified Angus Beef and Monford Beef Packers. Between the four of them, they were all in accord; “we don’t need any more golf ranges, we need more ranches and ranchers.”

The retailer and food service supplier along with the Certified Angus representative all agreed that beef is coming to them too big and it’s getting bigger. For the retailer, it makes the unit cost too expensive per cut (because who wants a thin cut steak) and to the foodservice industry it’s very hard to have a consistent size and weight portion of meat on the plate. They both acknowledged the fact that production costs are less with the larger cattle, but to serve a steak that is too big for one person and not large enough for two is just not right. Producers then stood up and questioned the fact that they get penalized for bringing in smaller cattle. The retailer and foodservice industry feel that the producer should be paid a bonus for smaller beef. They need to TALK, TALK and TALK some more in bringing all sides together.

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Another meeting that I attended was about the niche market of natural/organic beef and the claims that they make. It may be a small segment to the big picture, but is one of the fastest growing markets for beef along with other proteins and vegetables. It is believed that the standards for organically raised products are strong enough for public trust, but the “natural” claims have a long ways to go. Is it “natural” because of no growth hormones ever? Or because of withdrawal periods long enough for the residue to pass through the animal? Either way, the producers of such products are receiving a premium for their cattle while knowing that a standard policy is needed for uniformity.

“The increasing number of branded beef programs, which require specific quality parameters, are having a positive effect on beef tenderness,” said Dr. Dolezal.

“The science, much of which has been provided by the check-off, has allowed branded beef programs to deliver consistently tender and palatable beef-despite variation in marbling and quality grade,” he continued.

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

New and Innovated Beef Products was another meeting attended. It is a fact that 50% of all beef sold is to foodservice.

Consequently, much research is being done for the restaurant trade, be it fast food, casual or white table cloth restaurants. Finger food, much like chicken nuggets, is a needed product line and, of course, tasty and tender entrées from the chuck and round for more profitability to the carcass, while taking the pressure off the steak meat. There are a lot of new products and ideas out there to keep your taste buds away from chicken.

SURVEY SAYSAn on line survey of young and adult consumers found that

the majority enjoyed eating ground beef, saying they “loved it” or “liked it a lot.” This response is not particularly surprising, since ground beef is the dominant beef product nationally both at retail and foodservice. Ground beef accounts for 46% of retail beef volume and 63% of all beef volume used in restaurants.

Between 47 and 52 percent of teen and adult study respondents, however, expressed concerns about the health benefits and fat content in ground beef.

A taste test took place at Food Perspectives, a nationally recognized sensory site in Minneapolis, Minnesota, and was partially funded by BPI Technology Inc., a South Dakota company that produces 7 million pounds of lean, boneless beef a week. BPI put their new 95% lean patty up against a standard quick-serve restaurant patty and one from Agricultural Marketing Service (school lunch program).

In short, the new 95% lean patty out-performed its competitors across all sensory measures, including overall appeal, aroma, color, flavor, grilled flavor, texture and juiciness. Overall, 83% of respondents said the idea of a “95% lean burger that’s healthy for you and tastes great” and is “extremely motivating and appealing.”

BY PROCLAMATIONGovernor Jim Gibbons issued a proclamation on February

6th that February is officially, “BEEF MONTH.” Nevada State CattleWomen President Susan Casey and I shared a photo and signature signing with the Governor, representing the Beef and Cattle Industries.

HELP WANTEDThe Nevada Beef Council has an opening on its council

board. Elko County is the open seat, but member producers from other counties are welcome to apply. Please send your request to the Nevada Beef Council, 201 S. Roop St. Suite 101, Carson City, NV 89701. We would like the position filled before our May meeting.

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