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Volume 44, Number 32

August 6, 2010

NCBA's Summer Meeting in Denver last week was filled with debate concerning the future of checkoff program management. A TCFA delegation led by Chairman Mike Engler, Chairman-Elect Bo Kizziar and Vice Chairman Jim Peters attended the event. The Federation of State Beef Councils by a near unanimous vote adopted a resolution to maintain its partnership with the National Cattlemen's Beef Association. "We asked our Federation members where they want to be housed. The issue was whether or not the Federation should be separated from NCBA or stay with the national organization," said Federation Division Chair Scott George, a Wyoming dairy and beef producer. "They decided to stay under the NCBA umbrella but act in a more independent manner. As we move forward, we will be working to develop a structure that ensures greater independence, while still maintaining our 14-year successful working relationship with NCBA." George said the driving factor behind the Federation's vote was efficiency of resources. He said during the 14-year history with NCBA, the Federation has been able to rapidly address issues that could potentially impact the beef industry. "As we debate this issue, I cannot help but remember seven years ago when the first case of BSE (bovine spongiform encephalopathy) was discovered in the United States," he said. "It was because of this outstanding partnership that the discovery did not have a devastating impact on U.S. cattle producers." Meanwhile, the Cattlemen's Beef Board, by a vote of 60-32, rejected a resolution supporting separation that was adopted earlier this summer by its Executive Committee. On policy matters, NCBA members adopted a resolution providing that any federal or state animal identification program should allow low-cost tagging devices paid for by federal or state funds, if possible; ensure confidentiality of producers' private information; operate at the speed of commerce; allow for herd movement between states; provide producers protection from liability after cattle have left their control; collect data for the sole purpose of disease surveillance, control, and eradication; allow for flexibility in the use of currently established and evolving official identification methods for cattle moving across state lines only; and not replace or impede existing state brand-inspection activities. In the area of border security, members adopted an 18-point "Restore Our Border" plan developed by the Arizona Cattle Growers' Association. The plan includes securing the border along the international boundary; adding sufficient personnel to secure the border; providing the personnel with all the modern technology and resources necessary to enforce security at the international boundary; and enhancing civil and governmental communications to provide full coverage throughout the border region. USDA, Department of Justice (DOJ) Announce Details For Aug. 27 Competition Workshop: The public workshop at Colorado State University in Fort Collins, Colo. will examine competition in the livestock industry. TCFA leadership and staff will attend the event. This will be the fourth in a series of five workshops that federal officials say are intended to promote dialogue among interested parties and foster learning with respect to competition and regulatory issues in agriculture. The first workshop was held in March in Ankeny, Iowa, with a focus on row crops and hogs. The second workshop focused on issues in the poultry industry and was held in Normal, Ala. The third workshop focused on issues in the dairy industry and was held in Madison, Wis. Attendance at the workshops is free and open to the public. For additional information and to register, go to http://www.tcfa.org/Newsletter/doj_workshop_registration.html. The State Of Texas Tells EPA No Over The Issue Of Greenhouse Gas Regulation: The motto, "Don't Mess With Texas" might not appear in the text of the letter, but the sentiment is clearly there in the sharply-worded rebuke Texas Attorney General Greg Abbott and TCEQ Chairman Bryan Shaw sent to EPA officials this week. In the letter, Abbott and Shaw tell EPA: "On behalf of the State of Texas, we write to inform you that Texas has

neither the authority nor the intention of interpreting, ignoring or amending its laws in order to compel the permitting of greenhouse gas emission." EPA is taken to task in the Abbott/Shaw letter for the agency's attempts to "encourage acquiescence with your unsupported findings" by threatening "to usurp state enforcement authority and to federalize the permitting program on any state that fails to pledge their fealty" to EPA. For the full text of the letter, go to http://www.eenews.net/assets/2010/08/04/document_gw_01.pdf. States were asked to inform EPA by this week whether they would need to change state laws or regulations to comply with federal policies, according to the New York Times. The agency plans to begin regulation of stationary greenhouse gas sources next January. Possible retaliation by the feds, if Texas maintains its stance, could include the loss of federal highway funding or the imposition of "federal implementation plans" to curb emissions. Approval Of The Beef Checkoff Program Remains High, according to survey results released by the Cattlemen's Beef Board. Interviews with a representative random sample of 900 beef and dairy producers nationwide showed 72% approve of the Checkoff. An equal percentage of respondents described themselves as "somewhat" or "very" well informed about the program. The study found that knowledge about the Checkoff continues to be a predictor of favorability toward it. Producers who are "very" or "somewhat" well informed are more likely to approve of the Checkoff, particularly among those who say they are very well informed. Among this very well informed group, 79% approve of the program (47% of them strongly), while only 17% disapprove. However, the surveys showed mixed reaction to the hypothetical idea of raising the Checkoff assessment by $1 per head. While 40% of respondents said they would vote in favor of such an increase, 49% said they would be opposed. The producer attitude research was conducted in June by Aspen Media & Market Research. The findings have a maximum statistical margin of error of plus or minus 3.3 percentage points. To read more about the research findings, go to http://www.beefboard.org:8000/library/files/Beefmemo10_2brev.pdf. A $40.6 Million Budget For The Beef Checkoff For Fiscal Year 2011 Was Approved by the Cattlemen's Beef Board (CBB) July 31 in Denver. The proposed budget is down 7.4% from the FY 2010 budget and represents a decline of about 24% in the last five years. "With the dwindling funds, we're facing some real challenges as we try to fund the programs we need to promote our product and educate consumers about our industry," said CBB Secretary Treasurer Robert Fountain, Jr., a producer from Georgia. He added, "Costs for these programs continue to climb as our Checkoff revenues continue to decline with the herd population. We really have to be extremely creative to leverage every Checkoff dollar to the greatest extent possible." The 2011 budget still must be approved by USDA but includes the following budget components: $17.4 million for promotion, including advertising, foodservice, retail and veal promotion, and newproduct development $7.2 million for research programs, including beef safety, product enhancement, nutrition research, and market research $3.3 million for consumer information programs, which includes consumer public relations and information, and outreach to nutrition influencers $2.8 million for industry information programs, including beef and veal quality assurance and issues management $5.5 million for foreign marketing, including promotion and public relations programs in export markets around the globe $1.7 million for producer communications, including trade advertising, media relations, and direct communications to producers about the results of their checkoff investments $240,000 for evaluation of checkoff programs $160,000 for program development $263,000 for USDA oversight The budget also includes $2 million for administration, which includes costs for CBB meetings, legal fees, travel costs, office rental, supplies, equipment, and administrative staff compensation. The Cattle Feeding Industry's Bright Future was evident as youth from throughout Cattle Feeding Country came to Canyon for the 2010 TCFA Junior Fed Beef Challenge.

In the Senior Division, Dana Schumacher of Gainesville won Overall Champion honors and a $2,000 college scholarship. Levi Trubenbach of Muenster was named Overall Reserve Champion and will receive a $1,500 college scholarship. Trubenbach was also named Top Rookie in the Senior Division. Khaki Scrivner of Turkey took home First Runner-Up honors and will receive a $1,000 college scholarship. In the Junior Division, Clayton Schumacher of Dalhart took top honors as the Overall Champion and was also named Top Rookie of the Junior Division. The Team Challenge Contest was won by Jack Odom and Zachary Odom of Collingsworth County 4-H. The Odoms will split a $1,000 college scholarship. The TCFA Junior Fed Beef Challenge allows FFA and 4-H students to gain practical, real industry knowledge and experience in commercial cattle feeding. Students from throughout Cattle Feeding Country compete in cattle performance, a written exam, record book and presentation before a panel of judges. Students compete for approximately $13,000 in scholarships, cash and prizes. For photos of the top four winners, go to http://www.tcfa.org/Newsletter/2010_jr_fed_winners.pdf. ...Feeders And Feedyards In The News... Walter W. "Wayne" Dammier of Wildorado, 84, a longtime TCFA member, passed away July 31. Dammier spent more than 60 years as an active cattleman and continued to work at his Gray Ranch right up until the time of his death. His activity in the industry included having served as an Honorary Director of the Texas and Southwestern Cattle Raisers Association. Survivors include a daughter and five grandchildren. Clint Formby, 86, A Longtime Hereford Broadcaster And Community Leader, passed away July 31. Formby was a graduate of Texas Tech who went on to serve on the university's board of regents, including time as chairman. He was instrumental in helping persuade the Texas Legislature to establish a medical school and a school of law at Texas Tech. As a broadcaster, he was owner of KPAN in Hereford and was involved in several other radio stations across Texas. As a radio personality, his "Day-by-Day Philosopher" commentaries were featured on KPAN from October 1955 until the day prior to his death ­ believed to be the longest-running radio broadcast by an individual in the United States. Formby's survivors include four children and four grandchildren. TCFA welcomes as new member feedyards: OT Feedyard & Research Center in Hereford, Texas. The manager is Bob Tabb. Double D Feedyard, LLC in Dimmitt, Texas. The manager is Crockett Calk. Cuervo Creek Yard in Newkirk, N.M. The owner and general manager is Mark Whetten. Manager is Donny Estrada. Air Quality Workshops Planned for August 24-26: Three one-day air quality workshops have been set up for the livestock industry in the Texas, New Mexico, Oklahoma and Kansas areas by a consortium of research and industry groups. Texas A&M AgriLife, Kansas State University, West Texas A&M University and the U.S. Department of Agriculture-Agricultural Research Service will present results of several years of research from cattle feedyards and dairies across the region. Industry partners for the work include TCFA, Kansas Livestock Association, Texas Association of Dairymen and Dairy Farmers of America. These workshops are designed for producer-level cattle feeding and dairy industry personnel because of the heavy focus on practical solutions within the context of feedyard/dairy management, according to Dr. Brent Auvermann, AgriLife Research engineer. "The workshops will center on answering a few practical questions," Auvermann said. "How much are livestock facilities emitting, and how confident are we in our numbers? How can we reduce our emissions? And what is next on our research agenda?" The dates and locations the investigators selected are: Aug. 24 at the Texas AgriLife Extension Service office in Hereford; Aug. 25 at the Sherman County Exhibit Barn in Stratford; and Aug. 26 at the Clarion Inn in Garden City, Kansas. The programs will run from 9:30 a.m. to 3 p.m. each day, with a catered lunch at each event sponsored by the livestock groups. So that organizers can plan for lunch at the meetings in Hereford and Stratford, please RSVP with your name, company name and phone number to Cynthia Riojas at [email protected] by Aug. 20. The New Sustainable Beef Resource Center (SBRC) has been launched with a mission to provide useful, science-based information to the entire food chain. The SBRC currently is working with third-party experts to create an environmental-impact model and economic analysis of technologies used to help produce

wholesome, affordable beef. It also maintains the library of data previously assembled by the Growth Enhancement Technology Information Team (GET IT). "SBRC members clearly see our organization's role as that of a go-to resource for associations, coalitions, academia and other industry stakeholders ­ organizations that already are trusted information sources regarding how beef is produced," said Paul Parker, SBRC chairman. "This allows us to zero in on research that can fill information gaps as the industry continuously improves its ability to produce safe, wholesome beef affordably while using fewer natural resources." For more information about SBRC go to http://www.tcfa.org/Newsletter/sbrc.html. Draft Guidance On Regulatory Policy For Salmonella In Animal Feed has been published in the FEDERAL REGISTER by FDA. The draft provides guidance for FDA staff regarding the contamination of animal feed and feed ingredients with Salmonella. The draft proposes criteria that should be considered in recommending enforcement action against manufacturers of animal feed or feed ingredients that are adulterated due to the presence of Salmonella. For more information, including how to submit comments, go to http://edocket.access.gpo.gov/2010/2010-18873.htm. H.R. 6024, "The E. coli Traceability And Eradication Act," has been introduced by U.S. Rep. Rosa DeLauro (D-Conn.). According to a DeLauro news release, the bill will require stricter testing procedures for meat and processing facilities "with the goal of completely eradicating the dangerous Shiga toxin-producing E. coli bacteria." It will also establish a tracking procedure intended to enable USDA to implement faster recalls should any be found to be contaminated. The bill will require meat plants to test ground beef and beef trim multiple times throughout the manufacturing process by an independent, USDA-certified testing facility, including beef trim. Should any facilities be producing products that are unsafe for either three consecutive days or 10 days throughout a year, their company name will be posted to a list of safety offenders with the USDA. Additionally, the legislation will create a tracing protocol that will enable the USDA to track any contaminated meat or meat products, leading to faster recalls and less hazard to consumers. For facilities that are found to be producing contaminated meat, the USDA will test their products for 15 consecutive days following the positive test. DeLauro's bill has been referred to the House Ag Committee. JA Ranch Is A Regional Winner Of The 2010 Regional Environmental Stewardship Award, which was presented during NCBA's Summer Meeting. Located approximately 75 miles northwest of Fort Worth, the ranch is owned by the J.K. "Rooter" Brite Jr. family of Bowie. As the representative for Region IV (Texas, Oklahoma and Arkansas), the JA Ranch's nomination will now compete with six other regional winners for the national award to be presented at cattle industry's winter meeting in February 2011. For more about this year's regional winners and the contest, go to http://www.environmentalstewardship.org/news.aspx?NewsID=166.

Please note: All links are still available at http://www.tcfa.org under This Week's Newsletter links.

Texas Cattle Feeders Association

August 6, 2010

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