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Thursday, July 3, 2008, Vol. 9, Issue 28
Top Stories:
Oil boom benefits North Dakota landowners
The recent oil boom is creating a millionaire a day in North Dakota. The Bakken shale formation in the western part of the state is experiencing a drilling frenzy, and state and industry officials say North Dakota is on pace to set a state oil-production record this year, surpassing the 52.6 million barrels produced in 1984. North Dakota has nearly 4,000 active wells. State officials say that the number of taxpayers reporting adjusted gross income of more than $1 million in North Dakota rose from 266 in 2005 to 388 in 2006. But an informal survey by the University of North Dakota estimates the number of new millionaires in Mountrail County, one of the biggest drilling areas of the Bakken, may reach as many as 2,000 in the next three to five years — nearly one-third of the county's population.
The folks living above the Bakken shale formation will be delighted to know that crude oil prices closed at a new record high Wednesday at $144 per barrel. Analysts said a government report of a bigger-than-expected drop in U.S. crude stockpiles and the threat of conflict with Iran drove prices higher. The Energy Information Administration said crude oil supplies fell by 2 million barrels last week — 800,000 more than traders expected. At the same time, gasoline supplies grew while demand continued to decline. Prices at the pump for unleaded gasoline hit a new record national average price of $4.092 per gallon. — Greg Henderson, editor
"Queen of Mean" leaves it all to the dogs
The late hotelier and real estate magnate Leona Helmsley left between $5 billion and $8 billion for the care and welfare of dogs, according to a report in Wednesday's New York Times. Helmsley, dubbed the "Queen of Mean" by the New York media, died last August at age 87. In her final "mission statement," she specified that the money be used for canine welfare, although a lawyer told the Times those instructions are "not necessarily legally binding." Helmsley's reputation was sealed in 1989 when a former housekeeper testified that she had heard Helmsley say, "We don't pay taxes. Only the little people pay taxes." Helmsley was convicted of federal income tax evasion and served 19 months in prison after receiving an initial sentence of 16 years.
Soon after Helmsley's death last year, it was revealed that she left $12 million for the care of her dog, Trouble, a 9-year-old Maltese. But last month a Manhattan judge reduced the trust fund for Trouble to a mere $2 million, with the remainder going to Helmsley's charitable foundation. That might seem like a lot for the care of a dog until you consider that Trouble started receiving death threats last year, according to The New York Times, and now requires "security costing $100,000 a year." All of which raises many more questions than are answered. For instance, can you really put out a contract hit on a dog in New York? And, if so, why isn't the Humane Society of the United States doing something to stop the practice, like producing an undercover video? — G.H.
News and Notes:
LMA president addresses humane livestock handling
The Livestock Marketing Association elected Bobby Smith, owner-operator of Fairview Sale Barn, Fairview, Okla., as the organization's president for 2008-2010. In his inaugural address, Smith acknowledged that humane livestock handling was an important issue for auction markets. The "heavy lifting on this issue must be done by you and me, in our daily operations. We must be vigilant and know who is on our property (and) we must make sure our employees know and follow humane handling practices at all times."
LMA will continue to speak out, "making it clear that, while there are some exceptions, the overwhelming majority of America's 1,000 or so markets use humane handling practices." By "working individually," Smith said, "we can give (animal rightists) little or no reason to visit our businesses. And by working together, we can give them little or no reason to visit our corner of the industry." For more information, go to www.drovers.com. U.S. beef passes Korean quarantine inspection
In spite of the violent rallies staged by thousands of South Koreans protesting the importation of U.S. beef, the Korean National Veterinary Research and Quarantine Service has passed quarantine inspection on 80 tons of U.S. beef shipments held in storage since last October. Beef shipments to Korea were suspended last fall when bone chips were found in a shipment of U.S. imported beef. When the beef will hit the market is unknown since members of the Korean Confederation of Trade Unions are guarding the storage houses in order to block distribution.
CEOs of three U.S. beef and meat trade associations, including the National Cattlemen’s Beef Association, American Meat Institute and the National Meat Association, met with the ambassador to South Korea last week to help assuage fears about consumer reaction regarding a return of U.S. beef to Korea. According to a report from the National Meat Association, Ambassador Lee expressed concerns about the consumer protests that have occurred since the beef trade agreement was negotiated in April. Concerns were also voiced about shipments of noncomplying products. All three U.S. groups expressed assurances about industry efforts to abide by the trade agreement, but also expressed their own concerns that the Korean government needs to abide by the protocols established in the agreement and not overreact if a noncompliance is found. OIE calls for farm-to-fork animal traceability
As the U.S. government continues to struggle with the implementation of a national animal identification system, Bernard Vallat, the director general for the World Organization for Animal Health (OIE) recently released an editorial calling for more comprehensive animal traceability strategies throughout the world. "There must be a means of linking the identification and traceability of live animals and the traceability of products of animal origin so as to achieve traceability throughout the animal production and food chain — from farm to fork," Vallat said. For more, click here.
The OIE, in collaboration with Codex, is planning to organize an international conference on animal identification and traceability in Buenos Aires in March 2009. According to Vallat, the conference will be designed to emphasize the importance and benefits of identification and traceability, to raise awareness of existing OIE and Codex standards, to determine future requirements for standards and to provide advice and assistance on implementing standards, especially on behalf of developing countries. Harvested acres likely to decline
Extensive rains and flooding during June caused producers in several Midwest states to change their harvesting intentions for crops already planted, modify planting decisions for the small percentage of acres not yet planted and consider replanting options, according to an updated harvest report from USDA’s National Agricultural Statistics Service. Since NASS collected most of the data for the annual acreage report before the majority of the flooding occurred, the agency re-interviewed approximately 1,200 farmers June 23-25 in the flood-affected areas. As a result, they determined that U.S. farmers intend to harvest 90.4 percent of their planted acres of corn for grain, a reduction from 92.4 percent as measured during the first two weeks of June. U.S. farmers intend to harvest 96.8 percent of their planted acres of soybeans, compared with historical averages indicating 98.7 percent of soybean acres to be harvested. NASS will conduct a more extensive acreage update survey during July and incorporate the findings in the August Crop Production report. For more, click here. Unintended consequences of horse slaughter ban
Animal-handling expert Temple Grandin of Colorado State University was featured in a recent Time magazine article highlighting the unintended consequences of the horse slaughter ban established in 2007. The downturn in the economy and skyrocketing hay and fuel prices have meant that many horse owners are finding it impossible to feed their animals. Horses are being sent to volunteer rescue groups, which have become overwhelmed, but many horses are simply being turned loose by owners.
Grandin said that the ban on horse slaughter in the United States has created a situation where there is no viable disposal method for unwanted horses. "… these are 800- to 1,200-pound pets," Grandin was quoted as saying in the article. "When they shut down those plants, I said we've got to avoid alternatives worse than slaughter. But we have not, and all my worse nightmares have come true." For the full article, click here. Wild horses may be euthanized
Federal officials said this week they may be forced to euthanize wild horses presently in holding facilities. The U.S. Bureau of Land Management Deputy Director Henri Bisson said there are about 30,000 horses in holding facilities, which has strained the bureau’s budget. Last year about $22 million of the agency's $39 million budget for horses was spent on holding horses in agency pens. Next year the costs are projected to grow to $26 million. Officials say that wild horses have overpopulated public lands, and they estimate there are 33,000 wild horses on the range in 10 western states. About half of those are in Nevada. The agency has set a target “appropriate management level” of horses at 27,000.
Retail food prices rise slightly in second quarter
Retail food prices at the supermarket increased in the second quarter of 2008, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items in the second quarter of 2008 was $46.67, up about 3.5 percent or $1.64 from the first quarter of 2008. Of the 16 items surveyed, 14 increased and two decreased in average price compared to the 2008 first-quarter survey. Compared to one year ago, the overall cost for the marketbasket items showed an increase of about 8.5 percent. For more, go to www.drovers.com.
Kansas State to hold annual beef conference
"Managing annual cow costs" is the theme of the K-State Beef Conference to be held in Manhattan at Frick Auditorium at the KSU College of Veterinary Medicine, August 7-8. The conference is designed to provide take-home knowledge that will enhance the ability of cow-calf producers to improve profitability. For more information, click here.
Veal cooking competition held in Chicago
As part of its "Go to Market" strategy, the Beef Checkoff-funded veal program held a cooking competition last week in Chicago for top U.S. chefs, challenging them to develop original veal dishes using several new veal cuts. This was the third year for the Veal Celebrity Chef Showdown. The new cuts are the result of a veal muscle profiling study. During this Veal Optimization Study, researchers looked at nine muscles from USDA Choice or higher carcasses. The study team included meat scientists from the University of Florida and the University of Nebraska and was funded by the Beef Checkoff Program. For more information, go to www.drovers.com.
Ag economist summarizes themes of new farm bill
With more than 600 pages and 15 titles, grasping a firm understanding of the 2008 Farm Bill can be a daunting task. But Carl Zulauf, a professor with the Department of Agricultural, Environmental, and Development Economics at Ohio State University, has summarized the titles and accompanying provisions of the farm bill through a series of Web-based documents. The papers cover four major areas: farm income and risk management programs (principally Titles I and XII, but also some of Title XV), provisions of the other titles, the Supplemental Agricultural Disaster Assistance program and the Average Crop Revenue Election program. To view the documents, click here.
House members call for reduction in ethanol production
Fifty-one House Republicans sent a letter to the Environmental Protection Agency this week asking for a reduction in the required ethanol production this year. The group says renewable fuel standards enacted by Congress will boost already record-high corn prices in the wake of Midwest floods. "The Renewable Fuel Standard is a significant factor in the increased cost of commodities, which is causing severe economic harm for low-income Americans and livestock producers," they noted. About one-third of the U.S. corn crop will be converted to ethanol this year to meet the demands of RFS, according to the letter, with corn supplies likely to fall short of last year. For the full letter, click here (PDF format).
Feed efficiency now part of Igenity profile
From a single DNA sample, cattle producers can now more accurately gauge feed efficiency of their animals — offering key inside information that can directly affect profitability. Multiple-marker analyses of traits related to feed efficiency are now part of the comprehensive Igenity profile. The Igenity profile now analyzes genetic potential for residual feed intake and dry matter intake, and reports each trait individually. These analyses are in addition to more than a dozen economically important traits beef producers can use to evaluate cattle early in every stage of production. For more information, go to www.drovers.com.
Bowman named Angus COO
Bill Bowman has been named the American Angus Association chief operating officer, effective immediately. Bowman has been with the association for 16 years and also serves in other leadership roles such as vice president of information and data programs, director of performance programs and president of Angus Genetics Inc., a subsidiary of the association. As COO, Bowman will oversee the daily operations of the association. Bowman is a Stet, Mo., native and a graduate of the University of Missouri-Columbia. For more information, www.drovers.com.
Cattlemen's Boot Camp set for August 22-23 at Texas A&M
Cattle producers who want to learn more about various segments of production, marketing and carcass value will want to attend the Cattlemen's Boot Camp, Aug. 22-23 at the Texas A&M University Beef Center, College Station, Texas. The Cattlemen's Boot Camp is a cooperative effort between Texas A&M, the American Angus Association and the Angus Foundation. The camp is open to all cattle producers but enrollment is limited, so producers should sign up in advance. For more information about Boot Camp or to register, contact Monica Jordan or Shelia Stannard at 816-383-5100.
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