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Friday, December 12, 2014 Cattlemen’s Roundup 5
Diverse strategies position cattle operation for success
By utilizing a hoop barn with a compost bed pack and paying close attention to DNA testing to capitalize on the traits of his animals, a cattleman near Frederick feels that he’s made some
sound decisions to position himself firmly in the cattle industry.
Ross Ulmer of Frederick has undertaken diverse strat-egies to weather the ups and downs in the cattle market.
Ulmer’s wife Annette and their 12-year-old daughter Olivia are an integral part of the operation and enjoy
working with the cattle. Ulmer said that Annette’s expertise is handling the bookwork, adding a vital element to the operation. They now have the same accounting system as their lender. With the amount of money that ag operations go through, Ulmer said keeping track of inputs and expenses
is critical.A few weeks ago, the fam-
ily sold their calves. Now the Ulmers are in the pro-cess of re-filling their barns with heifer calves. About 450 head line the west barn that was built to hold 800 animals. Ulmer works with
BY CONNIE SIEH GROOPFarm Forum [email protected]
Farm Forum Photos by Connie Sieh GroopThis is a look at the hoop barn on the Ulmer farm south of Frederick.
(Continued on Page 7)
The FARM FORUM™ (USPS #000-451) is published weekly every Friday plus a special edition in the Spring and a special edition in the Fall by the Aberdeen News Company, P.O. Box 4430, 124 South Second Street, Aberdeen, South Dakota 57402-4430. Periodicals postage paid at the Post Office, Aberdeen, South Dakota 57401.
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Publisher - Cory BollingerExecutive Editor - J.J. PerryAdvertising Director - Christy OrwigCirculation Director - Mark HermanFarm Forum Editor - Stan Wise
TO PLACE AN AD:605-229-5555 -or- 1-800-925-4100 option 1Toll free from outside of Aberdeen.
CLASSIFIEDS:Fax - 605-622-2346To place an ad - 229-5555 -or- [email protected]
CIRCULATION:605-229-5555 [email protected]
POSTMASTER: Send address changes to:Farm ForumP.O. Box 4430Aberdeen, SD 57402-4430
EDITORIAL:Phone - 605-622-2304Stan Wise, Farm Forum [email protected]
ADVERTISING:Ph: 605-622-2257 Fax: 605-229-3954 Email: [email protected] Forum Sales Representatives: Aberdeen - Mike Wood, Sales Manager, 701-731-0087Aberdeen Area - Mardell Weisenburger, Sales Rep., 605-622-2226Aberdeen Area - Jen Cornelius, Sales Rep., 605-216-3110Eastern SD - Donna Schneider, Sales Rep., 605-280-6025South Central SD - Cheryl Paul, Sales Rep., 605-354-0911Southeast SD, Northwest IA & Northeast NE - Tim Zeeb, Sales Rep., 605-261-5909Southern ND - Marc Hanson, Sales Rep., 605-228-0495Northern ND - Lynette Crouch, Sales Rep., 701-240-1751Inside Sales, Auctions, Livestock & Retail Sales Representatives:Peggy Scott, 605-622-2221, [email protected] Gross, 605-622-2274, [email protected]
6 Cattlemen’s Roundup Friday, December 12, 2014
A & D Trucking ...............................................58A Bar K ...............................................................7Aberdeen Sport & Recreation ........................70Ag Plus ..............................................................14Agile Mfg ............................................................2Amdahl Angus .................................................46American Trust Insurance..............................18B & B Concrete Sealing ...................................78Basin Contruction & Drain Tile ....................10Baxter Angus Farm .........................................55BBBB Distributing ...........................................64Bieber Red Angus Ranch ..................................3Bischoff Ravine Creek Ranch .........................17Black Hills Stock Show ...................................71Bobcat of Morris ..............................................70Butler Machinery Co ......................................91C & B Operations ............................................52Central Livestock .............................................90Cobett Waterers ...............................................29Common Sense Mfg Inc .................................48D Bar P Bumpers .............................................67Dakota Livestock Supply ................................42Delaney Herefords ...........................................38Dikoff Ranch ......................................................4Double J Farms ................................................65Fair Manufacturing .........................................20Fawcett Enterprises .........................................86Fawcett’s Elm Creek Ranch ............................79Flittie Simmentals ............................................66Forever Feeders ................................................68Frey Angus Ranch ...........................................37G & G Inc .........................................................69Goldies Auto & Trailer Sales ..........................73Heartland Capital Group, LLC. .....................25Hepper’s Sports ................................................92Hilltop Angus Farm ........................................51Hipke Welding .................................................13Hojer Gelbvieh .................................................94Hub City Livestock ..........................................44Hurkes Implement Co ....................................11Iverson Chrysler Center .................................59Johnson & Rose Angus ...................................28Kamen Equipment Inc-East ...........................18
KayDee ..............................................................46King Insurance .................................................22Koupal’s B & B Angus .....................................31K-Scale ..............................................................44Lazy TV Ranch ................................................96Lindskov Implement .......................................83Livestock Auction Market Directory ......... 88Livestock Calendar ................................... 39M.H. Eby, Inc ...................................................19Mack Steel .........................................................24Maurer Bros Harvesting & Mfg .....................30Merritt Equipment Co ....................................32Midwest Ag Supply..........................................21Midwest Cooperative ......................................76Midwest Liquid Feeds .....................................22Mitzel and Sons................................................80Mohnen Angus ................................................72Moore Angus ...................................................15New Frontier Ag. LLC.....................................27Nold, Chuck .....................................................57North Central Farmers Elevator ....................77Orwig’s Tubs Inc ..............................................85Pelton Polled Herefords ..................................43Post Equipment ................................................87R Lazy B Ranch ................................................41Ranchers Livestock Equipment .....................47Real Manufacturing.........................................58Reaves Building Systems .................................84Rossow Angus Ranch ......................................56Roster Charolais ..............................................36Rowse Hydraulic Rakes Co Inc .....................12Rural Mfg Co Inc .............................................63Rush River Steele & Trim ...............................16Salvage House ..................................................76Sandmeier Charolais .......................................49Schaffs Angus Valley .......................................50Schmig Simmental Ranch ..............................23Scotts Lumber ..................................................60SD Charolais Breeder Assoc ...........................95SD Red Angus - ...............................................93Specialty Manufacturing Co ..........................53Sunderman Mfg ...............................................26Te Slaa Mfg .......................................................89The Hay Manager ............................................35True Travel Unlimited .....................................34Wagner Herefords ...........................................54Wells Charolais ................................................45Werk Weld Inc .................................................61West Point Design Inc .....................................62Western Farm Sales Inc ..................................33Wick’s Angus ....................................................38Wilkinson Ranch .............................................75
Cattlemen’s Roundup Advertiser Index
Friday, December 12, 2014 Cattlemen’s Roundup 7
cattle buyers to purchase the additional animals that will be comfortable in the white canvas-covered shelters, located just south of the intersection of S.D. Highway 10 and Brown County Hwy. 14.
As far as cow comfort, Ulmer was determined to find the best type of build-ing that he could use on his farm. He wanted the set-up to be functional and effi-cient. He wanted to be able to operate it as one person. He spent a lot of time travel-ing to look at buildings and talking to others who’d built similar structures.
“I wasn’t so much inter-ested in what others liked as what they didn’t like,” Ul-mer said. “The biggest thing they said they’d change was the size of the doors. Some who had a 70-foot building wished the doors were bigger.”
Eventually Ulmer de-cided that a 56-foot wide building with a 20x14-foot door was best.
It was a learning experi-ence, Ulmer said. At first, Ulmer put up a 300-foot
Ross Ulmer mixes feed for the morning ration for his cows near Frederick.
(Continued from Page 5)
(Continued on Page 10)
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8 Cattlemen’s Roundup Friday, December 12, 2014
Calves await their morning ration in the hoop barn at the Ulmer farm near Frederick.
Farm Forum Photos by Connie Sieh GroopAt left, Ross Ulmer looks over reports on the DNA of his heifers in his farm office near Frederick. Above is a closeup of some of his reports.
Friday, December 12, 2014 Cattlemen’s Roundup 9
Farm Forum Photos by Connie Sieh GroopThe 500-foot hoop barn can be seen behind of the Ulmer cows.
Ross, Olivia and Annettte Ulmer in front of their hoop barn. Above is some feed ready for the cows.
10 Cattlemen’s Roundup Friday, December 12, 2014
long building six years ago. Four years ago, they added 200 feet to that building. And last year, they added another 500-foot building that includes room for some machinery storage and can be used for calving.
BenefitsThe hoop structures pro-
vide great natural lighting, comfortable conditions for the animals and utilize a compost pack for manure handling.
Ulmer feels the natural light is a great advantage of the structure. In the winter months, as the days get shorter, the sunlight flows into the barns and warms the cattle. In the summer, the roof keeps the direct sun from the cattle yet illumi-nates the interior.
The barns allow a good airflow, which is beneficial
for the cattle. The buildings are oriented in an east-west direction. In the summer the curtains in back will be rolled up for a horizontal airflow. In the wintertime, those curtains are closed, but ventilation continues to be important. The air flows from the back and takes the heat and moisture up and out the top of the building.
There is no curtain on the south side, just an eave to keep rain and snow out of the feed bunks. When the temperature is consistently 45 degrees, the back cur-tain will be opened. During the summer, it will only be closed if there is a big rain or windstorm. It stays down throughout the winter.
In the summer when the heat is unbearable outside, the interior is comfortable. Ulmer compares it to being underneath an umbrella. A wind of 2- to 3-mph can provide a great cooling ef-
fect. He’s observed that the animals don’t pant or stand by the water tank despite intense heat outside.
In the winter, when the barn is full of cattle, with the compost bedding pack, the area is generally at least 10 degrees higher than outside.
A sorting and processing system in the further west building allows the Ulmers to do all their A.I. work under a roof. They do that before the heifers are sent to pasture each summer.
In the winter, Ulmer said he sleeps soundly at night when a storm comes through. “The cattle don’t know there is a blizzard,” he said. “I’ll need to scrape to get a path for the feed wag-on, but there is no problem for the cows to get their food.”
No mucky messUlmer intensely studied
compost bed packs and is
pleased with the result in his barns. Inside the building, an area was packed with clay and limestone for a base for the compost. Ulmer said it doesn’t look any different than cement, but provides an essential base that allows the manure to compost.
“When we start these barns in the fall, we put a lot of straw in there, about a foot deep,” Ulmer said. “The cattle will pack that down and there will be a layer of between 3 to 4 inches of yellow straw. There’s some science associated with the bedding pack and research about the best way to get the microbes to work in it. The compost has to work right or you’ll end up with ammoniated bedding.” He has heard that if the pack is built on cement, the system won’t work, and it will result in a mucky manure mess.
Additional wheat straw is added as needed. The compost pack heats to about 140 degrees and will grow to be 2 to 3 feet deep. It will be solid for the cows to walk across.
The manure is scraped at regular intervals and Ulmer said that he’s been surprised that when cleaning the barn, the result is dry and crum-bly. It has some moisture, al-most like silage. The manure is totally cleaned out of the building twice a year.
The manure generated is valuable. “We test it and spread it on our ground as fertilizer. We figure it has a value of about $40,000 when we put it on our fields.”
AdvantagesThere is a lot of interest
in the buildings. From what he’s heard, Ulmer said, “If a guy builds one, then he’ll build a second or a third or even a fourth one.”
Ulmer steered away from a monoslope building, as he didn’t think the airflow would be as good. And it
(Continued from Page 7)
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12 Cattlemen’s Roundup Friday, December 12, 2014
would cost a great deal for the cement that would need to be poured. If cement had been used in the floor in his building, it would have cost an additional $600,000.
The hoop barns are a less expensive option, but still provide for the comfort of the animals. The cover should last for 15 years or more and withstand 120 mph winds. The heavy sealed canvas won’t really wear out but the stitching exposed to the sun may start to come apart.
“If so, then the cover can be replaced in a couple of days,” Ulmer said. “It’s not a big deal. The next tarp may last for 40 years.”
“We originally straight finished our calves, that’s what I designed the building for,” Ulmer said. “I did do that for 6 to 7 turns, then corn got high and margins
got to be zero. Then I start-ed backgrounding cattle, added a bred heifer program and recently started a grass cattle program, working closely on other cattle finish-ing programs with Darren and Kurt Zuehlke of Britton.
Wheat strawThrough experience,
Ulmer has found that wheat straw works best for bedding and adding roughage to the rations. It has the most con-sistent protein value, about 6 percent, and it doesn’t bring in the weed seeds that CRP hay would bring in.
The Ulmers purchase about 95 percent of the hay and straw. He calculates how much he needs in June and July and has it brought in before winter. That way the Ulmers know the cost of the feed, and it’s a fixed cost. With the price of land, it’s generally cheaper to pur-chase the feed than to raise
it themselves.
Emphasis on traitsUlmer believes that DNA
testing for animals will have a huge impact on the cattle industry, almost like au-to-steer and precision farm-ing in the grain industry.
Last year was the first year the Ulmers did DNA testing on their heifers. A device punches a small hole into the ear of a calf to take hair and blood samples. These samples are analyzed and by comparing the DNA samples, they can select animals with improved traits that will result in improved calves.
The Ulmers hired a con-sultant to help them through the process.
“The technology is all new to me,” Ulmer said. “The sample provides benchmarks and gives a profile on the most import-ant traits, which would be maternal abilities, calving ease, roughage conversion and stayability.”
Last year, Ulmer said they culled 20 animals with the lowest scores, even through the animals looked as good or better than the others.
“It kind of made you ques-tion the scores,” Ulmer said. “And then my wife remind-ed me that if I didn’t want to know what the results were, I shouldn’t have tested them. DNA doesn’t lie.”
For commercial cattle, Ul-mer noted that it’s probably more important to test the females than the bulls. The cows will stay in the herd twice as long as the bulls.
The Ulmers will be test-ing all of their grass cattle, and if they don’t have a good score for roughage conver-sion, they won’t put them on grass. This is a tool to sort off those cattle that may not show a sufficient gain on grass. With the cost of cattle and land use, it is an import-ant management tool.
This year, the Ulmers will be trying out Cow Manag-er ear tags. Developed in Sweden and mostly used in the dairy industry, the tags provide information on heat detection for optimal time for insemination. At a cost of $135 each, the Ulmers will put these in 700 to 800 head of heifers. They figure the tags can be used for 8 to 9 years and will pay back the initial cost.
Ever mindful of the changes in the industry, Ulmer is seeing a payday as cattle prices are at an all-time time. He’s excited to try new ways to improve his herd.
As he headed outside to finish morning chores, Ulmer said, “The barns have been one of our best returns on investment since our cen-ter pivot irrigation systems were added years ago.”
(Continued from Page 10)
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Friday, December 12, 2014 Cattlemen’s Roundup 13
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14 Cattlemen’s Roundup Friday, December 12, 2014
A century of Angus cattle productionHistory runs deep in the
Angus business. Today’s nearly 25,000 American Angus Association members have their Angus predeces-sors to thank for the breed’s well-earned reputation of success.
To honor the breed’s most long-standing operations, the Association presents Century Awards to recog-nize herds, their owners and families who have been in continuous production of registered Angus cattle for 100 years or more.
This year’s Century Awards were presented Nov. 6 during the Association’s Awards Recognition Break-fast, held as part of the 2014 Angus Means Business Na-tional Convention and Trade Show in Kansas City, Mo.
Larry Dahl of Dahl Angus in Estelline, S.D., accept-ed the Century Award on behalf of his family, which is now in its seventh gener-ation raising Angus cattle, and Cody Sankey accepted the Century Award on behalf of the Laflin family, which raises quality Angus cattle in Kansas and Nebraska.
Dahl AngusAfter more than 100
years, the cow that started it all, Rindahl’s Beauty, is still part of Dahl Angus. The cow meant so much to the family that when she died, James Dahl skinned and tanned her hide. Larry Dahl, Dahl Angus current owner and manager, confirms the fami-ly still has the hide today.
The cattle operation began in 1897, when Peter
Dahl purchased 20 bred Angus heifers and brought them home to the ranch in South Dakota; records do not indicate these heifers were registered. Peter’s son, James Dahl, purchased the family’s first registered-An-gus cow in 1913, when Rindahl’s Beauty – with a bull calf by her side – was hauled to the home place from Iowa by horse and wagon. Even to this day, her lineage can be traced in the Dahl Angus cowherd.
In 1947, Lester Dahl, James’ son, took over and continued to grow the oper-ation. Lester was awarded the South Dakota Angus Association’s Centennial An-gus Herd Award in 1983 for operating an Angus herd 49 years or longer. At the time, Dahl Angus had 70 years in the business.
Larry and Rita Dahl be-gan managing the registered herd in 1972. Through the use of artificial insemination (AI) and embryo transfer, they continued to build the herd using semen from bulls, such as Big Bandy and Ankonian Dynamo.
Spotting the potential this technology brought to their operation, Larry became an ABS Global rep-resentative. He also served as South Dakota Angus Association president from 1992-1993, and Rita served as the first president of the South Dakota Angus Auxil-iary in 1991-1992.
Because of their interest in AI, Larry and Rita have had ownership in several top registered-Angus bulls, in-cluding Whitestone General Max and Bush’s Absolute Power. They also exhibit cattle at the annual South
Dakota Angus Breeders Show and Sale.
Larry and Rita’s three sons – Shane, Jason and Al-lan – have all taken interest in the Angus cattle. They have seven grandchildren, and with the recent addition of a great-grandson, there are now seven generations of Dahls involved in raising Angus cattle on the original Peter Dahl home place in South Dakota.
Laflin AngusLaflin Angus, residing in
Kansas and Nebraska with their family operations, can trace their cattle roots back to 1799. However their An-gus heritage began in 1900, when Eugene B. (E.B.) Laflin purchased the family’s first Angus cattle. Today, the operation remains one of the oldest continuous Angus herds in the United States.
Even at the turn of the century, E.B. stressed that his cattle be efficient, exceptional in size and have bred-in-performance – a tradition that continues to-day. He was one of the first breeders of registered-Angus cattle in Nebraska, and his early dedication to turn the West “black” set the stage for generations committed to the Angus breed.
To his name were the fol-lowing bulls: Louis of View Point 7, Glen Eyrie Black and Eline’s Marshall, son of Earl Marshall. E.B. served as the second president of the Nebraska Angus Association and on the American Angus Association Board of Direc-tors in 1924.
Succeeded by his son Lewis E. Laflin, the Laflin
American Angus Association
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(Continued on Next Page)
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Friday, December 12, 2014 Cattlemen’s Roundup 15
Angus legacy continued to gain strength. A skilled man-ager, Lewis guided the herd through the depression-rav-aged 1930’s, even giving $500 of his own money to keep the Nebraska Angus Association afloat.
When the drought-strick-en state ran out of feed, Lewis decided to ship the cattle to the northern Flint Hills near Bigelow, Kan., for summer grazing. The cattle were shipped back to Nebraska for wintering; this system continued for nearly 30 years. Like his father, Lewis also served on the American Angus Associa-tion Board of Directors from 1935-1941. He also served as the fifth president of the Ne-braska Angus Association.
In 1962, Lewis’s sons, Bob and Lew, expanded the operation with Bob buy-ing a ranch near Olsburg, Kan., and Lew staying on
the home place near Crab Orchard, Neb. Lew served as president of the Nebraska Angus Association in 1981 and 1982.
Today Barbara Laflin, wife of Bob Laflin, still rais-es Angus cattle at Olsburg, Kan. All four of Bob and Barbara’s children are active members of the American Angus Association. Lew and his wife, Virginia, and sons raise Angus in Crab Orchard, Neb.
The Laflin family’s fifth generation is raising Angus cattle and the sixth genera-tion has just arrived. They are spread throughout the United States, and continue to share a passion for the Angus breed set forth by their ancestors more than 100 years ago.
For more news from the Angus Means Business Na-tional Convention and Trade Show, visit www.anguscon-vention.com.
(Continued from Previous Page) History of cone style round bale feeders
Trent, S.D., farmer Ted Lacey has always known that wasting resources is a sure way to derail any production budget. Several years ago, as he observed his cattle trampling a significant portion of their hay into the ground, he decided it was time to find a way to reduce the waste. The round bale holder he designed and calls The Hay Manager is the result of his effort.
Q When did you come up with the idea of The Hay
Manager?
A I was feeding the cattle in the pasture back in
1996 and the grass in the pasture came up and they left my bale and a week later
it was rotten. I knew then that I wasn’t going to let another bale go to waste. I starting piecing together metal that would somehow have enough strength to withstand the weight of a bale.
Q What does the Hay Man-ager do?
A The principle purpose is to keep large, round
bales off the ground. When the bales are suspended, the bottom of the bale won’t absorb moisture and rot. Even if it does get wet, air movement will keep the bale dried out so animals will consume the entire bale. By situating the bale above the animal so that animals
BY LORETTA SORENSON
(Continued on Next Page)
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16 Cattlemen’s Roundup Friday, December 12, 2014
can pull hay downward off the bale but not out of the feeder. They can’t sort the hay out like they would if they had access to the entire bale. That means any hay that’s slightly moldy or not as high quality as the rest of the bale sifts down into the Hay Manager and animals are more likely to consume it rather than push it aside.” That virtually eliminates wasted hay that gets tram-pled underfoot as cattle, horses and sheep feed.
Q Why did you name it the “Hay Manager”?
A Because animals have to insert their head
into an opening in the ring surrounding the bale in order to pull hay out, more aggressive animals aren’t able to chase more timid ones away or crowd them away from the feeder. Lacey purposely designed the Hay
Manager so animals work somewhat harder to obtain the hay they need, which reduces competitive feeding behaviors.
Q How is it designed?
A We manufactured our feeders out of heavier
gauge materials than many similar commercial bale feeders. We use 14-gauge steel with ¾”oil well shaft cone rods and ¼” chain laced through the eyelets at the bottom in a circle. This design allows varying feed restrictions with the Hay Manager’s unique way of in-finitely adjustable openings by lengthening or shorten-ing the chain at the bottom. Conventional feeders weigh about 150 pounds. Ours weigh 475 to 640 pounds. We don’t want to spend our time and we know other farmers don’t want to spend their time repairing the
feeders. We even designed a reversible feature into the six foot cattle feeders so they can be reversed as they are built with the same dimensions and quality.
Q What research has been done on cone style
feeders?
A As I haul manure I can see how much waste
there is, but I didn’t want to simply estimate the effi-ciency of the Hay Manager design. We researched scien-tific data related to use of ta-pered-cone round bale feed-ers through several recent university studies. North Dakota State University and Dickinson State University partnered on a three-year study of the efficiency of hay feeding methods. Their study, which concluded in 2007, demonstrated that, overall, for the three-year evaluation period, using the tapered-cone round bale feeder reduced wintering costs by 21% for a 100-cow reference herd and 17.6% for a 300-cow reference herd. The other types of feeding methods in the study were rolling round bales out on the ground and shredding round bales on the ground with a bale processor.
Cows used in the N.D. study were in the third trimester of pregnancy and were fed for an average of 59 days during the test period. Test data also demonstrated that use of the tapered-cone bale feeder increased cow weight gain, tended to increase rib fat depth and reduced estimated hay consumption by an average
of 10.2% in comparison with rolling out or shredding the bales.
We estimate that between 1.5% and 2% of a large round bale is all that’s wast-ed when you use the Hay Manager. That figure is in contrast to the 10% and 20% of waste that’s typical in sim-ilar conventional designs.”
Q Why do you say this is an investment not a
cheap quick buy?
A Based on a 30-head cow herd, wasting 10 percent
of a bale every day costs about $10 per day, or $1,000 over a 100-day feeding period. The savings quickly offsets the cost of The Hay Manager. By efficiently feeding a large round bale you get approximately 100 pounds additional forage out of each bale. That’s enough to feed an additional four cows with every bale. In the beef industry today, those four cows are probably your profit margin.
Q Any last comments you would like to leave to
farmers?
A “I know this feeder will help other farmers be
more profitable and make their life easier,” Lacey says. “I’ve been given a lot of ideas about how to make my farm more efficient and more profitable. Being able to share those ideas with others is a very good feeling.”
More information about the Hay Manager and additional research material related to efficiently feeding hay is available at www.thehaymanager.com.
Visit the Farm Forum Online at:
farmforum.net
(Continued from Previous Page)
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18 Cattlemen’s Roundup Friday, December 12, 2014
South Dakota Commercial Hereford Breeders of the Year
Courtesy photoHermann Hereford of Lemmon, S.D., were named as recipients of the South Dakota Commercial Hereford Breeders of the Year award. Robert and Connie Her-mann are pictured above.
S.D. Beef Industry Council approves budget for FY 2014-15
PIERRE — The South Dakota Beef Industry Council (SDBIC) Board of Directors met in September in Brookings. At the annual meeting, which is held in conjunction with South Da-kota State University’s Beef Bowl, the BOD approved a $3.48 million budget for fiscal year 2015, which is a reduction to the $3.75 million budget passed one year ago.
One reason for the decrease, is fewer checkoff dollars are being collected each year. However, SDBIC Director Wayne Tupper says the directors are confident
that beef checkoff stakehold-ers will get the best bang for their buck through the promotion, research and education projects planned for 2015.
“We are anticipating the lowest cowherd since 1951, so our collections will be down for 2015,” said Tupper. “We expect more heifers will be kept for replacement heif-ers, which will keep those dollars out of the market, as well.”
The state’s beef council, which is responsible for collecting and administering the $1 beef checkoff on all cattle sold in South Dako-
S.D. Beef Industry Council
(Continued on Next Page)
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Friday, December 12, 2014 Cattlemen’s Roundup 19
ta, is required to direct 50 cents of every dollar to the Cattlemen’s Beef Board for programs on the national level. The SDBIC retains 50 cents, which directors can choose to invest in in-state programs and/or enhance national program invest-ments.
One area of focus for in-state programs is research. A budget of approximately $122,000 was approved to support two new studies at SDSU that focus on beef quality, food safety, and consumer demands.
Additionally, the in-state promotion budget was set at approximately $347,700 which will fund a number of
projects including Beef Up Your Game, which reaches thousands of consumers at sporting events at SDSU and University of South Dakota football, Sioux Falls Canar-ies baseball, and Sioux Falls Stampede hockey games.
South Dakota checkoff dollars are also invested with the Northeast Beef Promotion Initiative, which hosts various events on the east coast, where large numbers of consumers can be reached. Projects include promoting beef at the Penn-sylvania Farm Show that draws an estimated 585,000 attendees, and holding a Beef Boot Camp and New York Beef Farm Tour for re-tail, media and foodservice
professionals.“We didn’t cut any pro-
grams this year, but we did have to reduce spending a little bit on all of our pro-motions,” said Tupper. “We wanted to maintain these great programs without going over budget.”
The consumer infor-mation budget was set at $266,000 and will fund so-cial media outreach, foodser-vice and retail programs as well as Team BEEF and Ag in the Classroom. Industry information, which includes funding for the South Dako-ta Beef Quality Assurance (BQA) program, will total approximately $93,000, with the producer communica-tions budget set at $41,000.
The total budget for in-state investments in 2015, says Tupper, will be $1,147,000, with support for national beef promotion, research and education at $2,337,000.
“We try to spend produc-er dollars the most efficient and effective way possible,” said Tupper. “I encourage checkoff stakeholders to visit thesdbeef.org website and see what we’ve been up to. It’s a new era, and we are reaching our consumers through social media. It’s been a great outreach tool for us, and I think producers will be impressed by what they see.”
For more beef checkoff news, check out www.sdbeef.org.
(Continued from Previous Page)
20 Cattlemen’s Roundup Friday, December 12, 2014
Mines professor studies evolution of attitudes toward predators
Black Hills residents have a love-hate relationship with livestock predators - for ranchers, it’s mostly hate - and a South Dakota School of Mines & Technology pro-fessor is studying how those historic attitudes toward wolves, mountain lions and coyotes have evolved.
Frank Van Nuys, a history professor speaking in both a Nov. 18 lecture and an inter-view, said the relationship between humans and such animals had been largely antagonistic right up to the late 20th century. But since then, scientists and wildlife conservationists have devel-oped a greater understand-ing of predators.
“In the 19th century,” Van Nuys said, “there’s this consensus about predators: ... ‘We have to clear them
out.’”His interest in the topic
bloomed years earlier as a debate raged in the Black Hills whether the state should allow a brief hunting season for mountain lions, as it does today. It was a gateway that led him to examine how humans have historically dealt with all sorts of predators in the West.
“It really struck me, this is part of a much larger story,” he said.
Van Nuys said he can un-derstand why ranchers are unsettled by even rumors of a predator sighting in the Hills, because of the poten-tial threat to the livestock and also to the agricultural system that has been set up in West River.
“The last thing they want to see over the horizon is a wolf,” he said.
“To see any intention of bringing them back, that’s a defeat” in the eyes of people who are descendants of the pioneers, he said. “All the hard work we did to make this place flourish” would go away in their eyes.
Part of the government’s role is to step in to control both human behavior and where the animals might roam.
South Dakota Game, Fish & Parks biologist Steve Griffin told the Journal in September that it was department policy to allow mountain lions to be killed if they are known to have killed livestock, entered municipalities or are seen obviously starving, he said.
The agency has allowed a three-month hunting season since 2005. Griffin estimated there were at least 125 and 250 adult and nearly adult
mountain lions in the state.“They naturally came
back over time, and we now have a viable population in the Black Hills that we will manage as any other game animal,” he said.
The Black Hills mountain lion hunting season begins Dec. 26 and ends March 31. This year, there is a harvest limit of 75 total lions or 50 female lions, whichever comes first. The statewide season is year-round with no harvest limits.
“We would much rather let our hunters (help reduce populations) then to have to do it ourselves,” he said.
Records show 15 moun-tain lions have been killed since the end of the moun-tain lion harvest in March, mostly in the Black Hills. Some are hit by cars, others killed with the agency’s per-mission by law enforcement.
BY MEREDITH COLIASRapid City Journal
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Friday, December 12, 2014 Cattlemen’s Roundup 21
Grazing corn residue with beef cattleCorn residue is a valuable
feed resource for beef cattle. The number of acres planted to corn in Nebraska is about 10.3 million acres (6.3 irri-gated; 4.0 dryland/rain-fed). It is estimated that less than 25% of the corn acres in Nebraska are grazed.
We understand how important it is to leave corn residue in the field for all the beneficial attributes that encompasses with regard to cover, organic matter, water holding capacity of the soil, and grain yield. Two exper-iments, one with 18 years of data (eastern Nebraska location) and one with 7 years of data (west-cen-tral Nebraska), show that grazing corn residue using recommendations developed by University of Nebraska Animal Science faculty will
not reduce the beneficial attributes of corn residue cover.
1. There is no reduction in grain yield for the grow-ing year following corn residue grazing.
• For corn soybean rota-tions.
• For corn followed by corn.
2. There is little or no compaction of the soil due to grazing cattle in corn residue fields.
University of Nebras-ka recommendations for grazing corn residue are based on research showing cattle are selective grazers of a corn residue field. Parts of the corn plant select-ed by cattle are based on palatability of the different components of corn resi-due remaining in the field. Cattle will select grain first, followed by husk and leaf,
and will select the cob and stem/stalk last.
For every bushel of corn (56 lb per bushel) there is about 45 pounds of residue on a dry matter basis. Re-search shows that for every bushel of corn there is about 16 pounds of husk and leaves on a dry matter basis.
UNL corn residue graz-ing recommendation is to remove 8 pounds of husk and leaves per bushel of corn produced. Only about 60% of the husks and leaves are digestible, meaning 40% is not digestible. Using these numbers and targeting a grazing strategy for removal of 8 pounds of husks and leaves per bushel calculates that only 12% of the total residue is removed.
The video “Cornstalk Grazing Recommendations” (http://bit.ly/13NIdlW) highlights this information.
A residue grazing “tool” is available for producers in two formats.
• Corn Stalk Calculator (http://bit.ly/1uC1O4s): Ex-cel spreadsheet that allows users to consider corn yield as criteria for calculating the worth of cornstalks.
• NUBeef-cowQlate app (http://bit.ly/1GudVU4): Collection of calculators (peer-reviewed feed cost cal-culator, a dry matter conver-sion calculator, a corn stalks calculator and a bovine gestation calculator)
For additional infor-mation, please see these resources.
• Effect of Grazing Corn Residue on Corn and Soybean Yields - http://bit.ly/1thIFNV (2013 Nebraska Beef Cattle Report)
• Grazing Corn Stalk Residue - http://bit.ly/1wAf-Pya (September 2013)
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SD-1870420R
22 Cattlemen’s Roundup Friday, December 12, 2014
2014 SDSU Dairy Cattle Judging Team resultsBROOKINGS — South
Dakota State University’s Dairy Cattle Judging teams have participated in three national judging contests in 2014.
In preparation for the contests, team members in-vest hours learning proper dairy cattle evaluation tech-niques, terminology for oral reasons as well as honing their decision making and verbal presentation skills.
“These team members are often highly sought by the dairy industry because of these additional personal skill sets that they have refined,” said Tracey Erick-son, SDSU Extension Dairy Field Specialist.
Dairy Judging Contest - Madison, Wis.
On Sept. 29, 2014, the team competed at the World Dairy Expo in Madi-son, Wisconsin.
The team placed 18th overall and 11th in Rea-sons. Twenty-one teams participated in the contest.
The SDSU team placed third in the Red and White Holstein Breed division.
Team members, Mikay-la Piller, Kenyon, Minn., placed second and Maggie Stiles, Lakeville, Minn.,
placed eighth overall. The team placed fourth in the Brown Swiss Breed division with Mikayla Piller ranking eleventh as the high indi-vidual. Jon Pretz coached the team. Along with Piller and Stiles, the team also in-cluded: Benjamin Choudek, Owatonna, Minn., and Riley Pitman, Chatham, N.H.
Dairy Judging Contest - Viroqua, Wis.
SDSU Extension
Courtesy photoLeft to right: Jon Pretz (coach), Benjamin Choudek, Mi-kayla Piller, Maggie Stiles and Riley Pitman.
(Continued on Page 24)
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Schmig Simmental Ranch32nd Annual Production Sale
Thursday, March 12, 2015 • 1:00 PM at the RanchLunch Servvvr ed at 11:30
Selling 25 Polled Purebred Simmental Yearling BullsReds & Blacks
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BULLLLL COOOC LOR SIREEER DAMMMA ’SSIREEER DOB BW WWWWW CE BW WWWWW YWWWY MCE MM MWWWM WWWWW CWWWC YG MRBBBR REEER AAEAE
2B(TTT( WWTWT IIWIWN)))N REEER D TOMBSSSB TONE40004 Y REEER DCAAAC EEAEA SAAAS RRARA 3/18///814 70 740004 5.4 4.2 70 105 10.0 23.0 58885 .0 39.0 -0.25 -0.09990 0.69
3B(TTT( WWTWT IIWIWN)))N REEER D TOMBSSSB TONE40004 Y REEER DCAAAC EEAEA SAAAS RRARA 3/18///814 70 696669 5.4 4.2 70 105 10.0 23.0 58885 .0 39.0 -0.25 -0.09990 0.69
4B BLKKKL ESMJCOOOC NSERVATIIITVVIVI EEVEV VOYAGER721P 3/21/14 65556 823 15.0 0.0 76 109990 5.3 27.5 65556 .7 34443 .0 -0.35 0.20 0.88888
9B BLKKKL SUPEEEP RTANNNA KEEEK R44444 Y TRRRT AARAR DDADA EMAAAM RRARA KKRKR 3/24///414 85558 726 5.7 3.1 69 102 12.1 21.9 56665 .2 35.2 -0.44444 -0.10 1.13
10B BLKKKL SAAAS NNANA DRAAAR NNANA CHHAAAH NNANA D REEER DBULLLLL 53T 3/24///414 72 65556 7 8.4 0.5 61 98 12.0 23.4 54445 .0 29.5 -0.41 0.05 0.98
12B BLKKKL MRNLCUPGGGP RAAAR DDADA E PPPPP SSPSP RNOPHHHP AAHAH LLALA T20H 3/25/14 84448 785558 10.1 1.2 65556 98 11.1 30.3 63336 .0 29.7 -0.39 0.27 0.99999
13B BLKKKL MRNLCUPGGGP RAAAR DDADA E TNNNT TTNTN GUNNERN208 3/26/14 94449 84448 9 7.8 4.7 86668 124 11.3 24.3 67.3 49.9 -0.41 0.26 1.08
18B BLKKKL SUPEEEP RTANNNA KEEEK R44444 Y SSSSS RREEER DGOLDDDL 3/26/14 80 77777 0 4.5 2.6 71 116 11.6 28.9 64446 .8 43334 .3 -0.41 -0.09990 1.00000
20B REEER D PPPPP SSPSP RNOPHHHP AAHAH LLALA T20H WSBEEFMAAAM KKAKA EEKEK R 3/27/14 90009 83338 7 7.4 4.0 71 112 12.8 24.6 60006 .0 42.9 -0.23 0.23 0.65556
25B REEER D TRRRT AARAR XXAXA SRUSHMOREEER SSSSS RBULLLLL 42XXX2 3/28///814 65556 820 7.5 2.5 85558 128 13.1 21.0 63336 .4 49.1 -0.36663 -0.12 1.07
28B BLKKKL SUPEEEP RTANNNA KEEEK R44444 Y SRSRIIIRGHTTTH -ON 3/30/14 80 77777 3 4.7 3.3 70 108 14.8 21.9 56665 .7 39.2 -0.43334 0.10 0.96669
30B BLKKKL SUPEEEP RTANNNA KEEEK R44444 Y BLAAAL CKJOKEEEK R 3/31/14 90009 797 2.7 3.9 70 108 11.3 24.5 59.6 39.9 -0.48884 -0.17 1.21
31B BLKKKL DOUBLEEEL DOWNNNW 26W TNNNT TTNTN TANNNA KEEEK RU263336 3/31/14 90009 77777 3 2.9 3.7 69 110 9.2 30.3 64446 .6 41.1 -0.33333 0.34443 0.92
33333 B REEER D TOMBSSSB TONE40004 Y BODYBBBY UILDDDL ER 4///41/14 96669 759 4.9 4.9 57 87 8.7 22.8 52.1 28.9 -0.13 -0.02 0.56665
37B REEER D TOMBSSSB TONE40004 Y TNNNT TTNTN GUNNERN208 4///42///214 78 723 12.5 1.0 52 76 11.6 28.8 54445 .8 16.6 -0.23 -0.09990 0.56665
45554 B BLKKKL DOUBLEEEL DOWNNNW 26W SSSSS RPRRRP EERER FEEEF RRRRR EERER DS7 4///46/14 98 821 2.3 5.7 76 117 5.7 22.0 59.9 47.7 -0.23 0.35 0.83338
49B BLKKKL DOUBLEEEL DOWNNNW 26W LBBBL RCROCKEEEK TTETE TTTTT R81 4///49/14 90009 77777 1 1.3 5.0 69 105 4.0 25.5 60006 .2 39.8 -0.27 0.27 0.80
50B BLKKKL DOUBLEEEL DOWNNNW 26W TNNNT TTNTN TOPGUNR222R 44444 4///49/14 94449 766666 6.0 3.8 65556 102 5.5 22.1 54445 .5 36663 .4 -0.24 0.46664 0.66666
53B BLKKKL SAAAS NNANA DRAAAR NNANA CHHAAAH NNANA D REEER DBULLLLL 53T 4///410/14 70 783338 5.7 1.4 71 110 10.8 17.8 53.3 34443 .8 -0.41 0.17 0.96669
54445 B BLKKKL DOUBLEEEL DOWNNNW 26W SRSRIIIRGHTTTH -ON 4///411/14 80 786668 6.6 2.3 66666 104440 6.5 28.6 61.4 35.2 -0.38883 0.38883 0.97
57B BLKKKL TRRRT AARAR XXAXA SRUSHMOREEER TNNNT TTNTN TANNNA KEEEK RU263336 4///414///414 80 88888 44848 7.4 1.3 83338 125 16.9 22.8 64446 .4 45554 .8 -0.32 -0.14 1.04440
58885 B BLKKKL DOUBLEEEL DOWNNNW 26W WSBEEFMAAAM KKAKA EEKEK R 4///415/14 94449 801 3.7 5.0 73 113 7.5 24.6 61.1 44444 .6 -0.31 0.36663 1.00000
6661B BLKKKL SSSSS RBULLLLL 44444 Z BODYBBBY UILDDDL ER 4///423/14 90009 788888 3.7 4.7 68886 109990 9.9 28.5 62.6 41.7 -0.21 0.19 0.85558
62B BLKKKL SSSSS RBULLLLL 44444 Z WIIIWNCHESTEEET R 4///424///414 80 77777 9 10.1 1.7 66666 109990 11.7 32.1 65556 .0 37.6 -0.27 0.32 0.95
64446 B BLKKKL RSY86668 SRSRIIIRGHTTTH -ON 5/4///414 85558 820 7.5 3.2 68886 100000 9.8 20.6 54445 .4 33333 .8 -0.19 0.22 0.61
65556 B BLKKKL SSSSS RBULLLLL 44444 Z WSBEEFMAAAM KKAKA EEKEK R 5/5/14 84448 958885 5.1 5.2 88888 132 8.8 24.4 68886 .2 55.9 -0.16 0.18 0.77777
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SD-1873216R
24 Cattlemen’s Roundup Friday, December 12, 2014
On Sept. 14, 2014 in Vi-roqua, Wisconsin the team participated in the 21st an-nual Accelerated Genetics Intercollegiate Dairy Cattle Judging Contest.
Twenty-one teams com-peted in the contest. The team was the 12th High Team Overall and 11th High Team in Reasons. Mikayla Piller, was the first place High Individual in the Guernsey Breed and 16th High Individual overall.
Along with Piller, the team included: Maggie Stiles, Andrea Pfaffenbach, Roann, Ind.,and Riley Pitman and was coached by Jon Pretz.
Dairy Judging Contest -
Fort Worth, TexasOn Jan. 19, 2014 the
team participated in the Southwestern Exposition & Livestock Contest in Fort Worth, Texas.
The team placed second overall among 15 collegiate teams. The team placed second in Jersey Breed Division, fourth in Holstein Breed Division and fourth in Oral Reasons.
Mikayla Piller placed first in Jersey Breed Divi-sion and fourth as the high scoring individual.
Along with Piller, team members included Andrea Pfaffenbach, Maggie Stiles, Mikayla Piller, and Riley Pitman. They were coached by Steve Crego and assisted by Jon Pretz.
(Continued from Page 22)
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Melroe portrait to be added to North Dakota Stockmen’s Memorial Wall
The cattle industry will forever remember the leadership and contributions of former North Dakota Stockmen’s Association (NDSA) President Stan Melroe of Gwinner, N.D. A commemorative portrait will soon be hung in his honor on the Stockmen’s Memorial Wall, thanks to the generosi-ty of family and friends who offered memorials in his name to the North Dakota Stockmen’s Foundation.
Melroe, who died April 22 at the age of 85, had an illustrious resume in the livestock industry. Among his many activities and orga-nizational achievements, he led the NDSA as president from 1994 to 1996 and was named an NDSA Honorary Member and, later, its Top Hand, the organization’s most prestigious honor, in 2001.
A long-time NDSA member, Melroe also chaired many beef industry committees over the years, including the NDSA’s and the National Cattlemen’s Beef Association’s Tax & Credit Committees and the NDSA Research Commit-tee. He worked tirelessly to repeal the estate tax on the national level and to reform property taxes on the state level.
Melroe was proud of his NDSA involvement too, tell-ing the Farm & Ranch Guide in 2012, “Probably the great-est honor I ever had was when I was named president of the Stockmen’s Associa-tion. It was truly a reward to get to know the people that
I got to meet in the differ-ent parts of the state that I traveled to ... Cattle people are great people.”
Melroe was born Aug. 18, 1928, to Sigurd and Myrtle (Petterson) Melroe on the family farm homesteaded by his grandfather, Olaf Melroe, in 1882.
He graduated from Gwin-ner High School and then attended North Dakota State University for three years, before returning home to help his father on the family farm at the time of his moth-er’s untimely death.
On Jan. 22, 1956, he married Betty Lou Carlson in Lisbon. The couple was blessed with two sons, Ste-ven and Scott, who continue to farm and ranch on the homestead.
Melroe received many honors in conjunction with his Shorthorn cattle. He was named Builder of the Breed by the American Shorthorn Association in 1976 and the North Dakota Shorthorn Man of the Year by the North Dakota Shorthorn Association in 1979.
Melroe likewise served as president of the North Da-kota Livestock Endowment Foundation and the North Dakota Winter Show Board.
He is survived by Bet-ty; sons Steven and Scott; daughters-in-law Barb and Jan; grandchildren Tyler (Darah) Melroe, Bethany (Jeremy) Lehrman, Corey Melroe and Lucas Melroe; great-grandchildren Cash and Emerson Lehrman and Jacey Melroe; brother Sylvan (Caroline) Melroe; sister Le-nore Hodenfield; and many nieces and nephews.
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Friday, December 12, 2014 Cattlemen’s Roundup 25
Steadfast demand, sales growth for CABWhen change and uncer-
tainty are everywhere, that which remains the same stands out. Perhaps that’s why, with the highest beef prices the world has ever seen, the 17,000 Certified Angus Beef (CAB) brand partners in 47 countries cel-ebrated eight straight years of record sales and the tenth consecutive year of growth.
Fiscal 2014, which ended September 30, saw a 400,000-head decline in the number of Angus-influenced cattle available at the brand’s 30 licensed packing plants across North America. But a greater share of those fea-tured Angus influence and a record proportion met the 10 CAB carcass specifications, resulting in a net gain of more than 80,000 additional cattle accepted.
Translated to beef sales volume, that meant the new annual mark to beat is 882 million pounds, 2% higher than last year’s 865 million. More cattlemen followed market signals that pay $50 million in yearly brand pre-miums according to research this year, while partners in the beef trade provided more consumers dependable value for the higher price tag.
Consumer sales could be seen as 4.7 billion three-ounce servings that injected $6.8 billion into the beef industry in the last year.
“Without a doubt the brand is defined in part by the quality of the product – but it is impactful because of people and relationships that connect each and every one of us,” CAB President John Stika said.
Six of the brand’s 10 best sales months in its 36-year history were in Fiscal 2014, exceeding 70 million pounds in nine of those months. Sales were especially strong through the summer, when
partners promoted the brand as a focal point of grilling season. August was only the second time since 1978 that monthly brand sales exceed-ed 80 million pounds.”
Fewer but betterAngus cattle have never
been worth more money than they are now. Working with a tighter supply, CAB’s market share has rapidly expanded, comprising nearly 15% of all fed cattle harvest-ed through licensed packers that harvest 85% of the total supply.
Boxed beef cutout values for the brand moved up 55% in the past five years, even as consumers purchased more each year. Similarly, many Angus breeders have been
able to sell more and better bulls at higher prices.
Focused genetics and coordinated management paired with a slight increase (.8%) in the percentage of Angus-type cattle led to a record overall acceptance
rate of 25.6%, up from last year’s record of 24.2%. Ten years ago the acceptance rate was 15.6%.
This year, those accep-tance rates hit a record weekly high of 29.5% and
BY LAURA CONAWAYCertified Angus Beef LLC
(Continued on Next Page)
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26 Cattlemen’s Roundup Friday, December 12, 2014
exceeded 27% during 12 weeks. Packers certified an average of 67,800 carcasses each week this year, totaling 3.52 million for the year.
“Overall fed cattle num-bers are down, but between the growth of Angus influ-ence and the improvement in grade, we continue to grow acceptance rates and hold our own with availability of CAB carcasses,” said Mark McCully, vice president of production
Not only did consumers pay more to enjoy more of the brand around the world last year, but they also demanded significantly more CAB brand Prime. Those sales reached a record 11.9 million pounds, up 29.3% in just one year for the brand extension that has been on the market since 1999.
“This is a very creative industry,” Stika said. “It’s not just through technology. It’s about focus, it’s about discipline, it’s being inten-tional with the choices and decisions we make in the breeding and management of our cattle.”
A shared visionStika said look no further
than the people behind this brand to explain current success. The hundreds of thousands who work with-in those 17,000 licensed partners or work to produce the best calves on the ranch, all share the common goal of providing quality beef to the consumer.
CAB’s Foodservice Divi-sion achieved the most in growth, exceeding 300 mil-lion pounds for the first time with an increase of 9.4% over
last year. While Retail sales saw a slight decline of 4.5%, International growth contin-ued its steady rise with 121 million pounds sold, a 9.1% increase. Canada, Mexico and Japan were the largest markets.
The summer season brought with it demand for ground beef and ribeye steaks, while bone-in ribs took their turn during the holiday months. With domes-tic foodservice distributors leading the charge, middle meats sales grew, setting the stage for growth in end meats, ground beef, and CAB Prime and Natural exten-sions as well.
Action with intentionValue, loyalty and trust
in the brand are as high as they’ve ever been, Stika said, noting the brand aligns passions and ultimately connects people to people. “None of us are in this by ourselves,” he said.
Since its establishment in February 2012, the CAB Education & Culinary Center (ECC) has served as a unique gathering place for partners in and outside of the beef industry to gain insight into the brand and the quality beef that defines it. From cattlemen to media guests and scientists to chefs, more than 175 groups have visited the Wooster, Ohio, venue from all parts of the world.
Recent educational en-
deavors include CAB Meat Labs, a fun way for foodser-vice distributors’ sales teams to learn the details about the brand and how to market it. With longtime partner Smashburger, August found CAB featured in a national commercial on NBC.
Recipe Rehab, an award-winning cooking show on CBS, featured Chef Keoni Chang of Hawaii’s Foodland Super Market and CAB Brand Ambassador, along with the Nelson family of Five Star Land & Livestock, Wilton, Calif. Viewers saw the product quality and versatility and learned the ranching story through the eyes of a fourth-generation Angus family.
A future brightSince 2009, demand for
the brand has increased by 78.7% according to a Kansas State University study. Those who purchase registered An-gus bulls for their commer-cial herds are like consumers who insist on CAB for their family and friends. Togeth-er, they see the price-value advantage that has always come through, one that ensures loyalty to cattle and the brand. Together, they strive toward the best and together they celebrate that achievement.
Learn more about the brand at www.certifiedangus-beef.com, or access producer resources at www.cabpart-ners.com.
(Continued from Previous Page)
SD-1866113R
Friday, December 12, 2014 Cattlemen’s Roundup 27
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28 Cattlemen’s Roundup Friday, December 12, 2014
Red Angus: Without a doubt
Story previously published in the American Red Angus Magazine.
“When I was a young kid, we tried every breed you can think of. But since we went to Red Angus, we’ve never looked back. The Red Angus is really a good breed,” assured commercial rancher Ryan Pancheri from Howe, Idaho. And, from his experi-ences with different breeds, he would know.
Ryan, his wife Barbara and their four children, along with five of Ryan’s brothers – Rick, Rod, Romero, Roman and Rory – and their fami-lies, run 2,500 Red Angus commercials with their mother, Marylyn, affection-ately described by Ryan as the “glue” that holds their family of eight total siblings together.
The brothers are the third generation to operate in the Little Lost River Valley in southeast Idaho’s Butte County, some 65 miles west of Idaho Falls, Idaho, and 250 miles north of Salt Lake City, Utah.
When it comes to cattle, Ryan and his family mem-bers are sold on the fertility, mothering ability and great dispositions of Red Angus. They also appreciate the way these females fit their environment.
“They adapt very well to wherever we put them – from irrigated grass to sparse grass on desert and mountain range. They always bring in a big, healthy calf in the fall,” said Pancheri.
Marked only with a post office, Howe is located at an elevation of nearly 5,000 feet. It’s near here where the Pancheris run their mature cows on high-desert, moun-
tainous country on both Bureau of Land Management (BLM) grazing allotments and private grazing lands.
This dry country usually receives less than 5 inches of rainfall per year. The Pancheris are one of the largest public lands grazers in their area, with BLM lands covered in sagebrush, crested wheat and native grasses.
“It is great cow-calf coun-try,” Pancheri explained, “but not the best for year-lings.” And that’s why they run their replacement heifers on irrigated pasture under some of the 70 to 75 pivots on the expansive Pancheri operation comprised of wheat and alfalfa cropland and grazing lands.
Meanwhile, they allow their first-calf heifers a chance to further grow and breed up on sub-irrigated pastures, a management practice that has proven successful.
Sold on RedPancheri said that his
family had to run the gamut with different breeds before they discovered success by using Red Angus, initially incorporating them through sire genetics.
Their feeder-calf buyer, the late Ward Johnson, recommended the breed to the family who, by then, had already experienced Black Angus and Charolais cattle, along with Longhorns and Salers.
The Pancheris initially started with a purchase of 10 Red Angus bulls. Pancheri was concerned with their birth weights, but “Dad wasn’t the guy who believed in birth weights or EPDs for that matter.”
They turned out these
BY KIM HOLT for American Red Angus Magazine
(Continued on Next Page)
Annual Bull SaleSelling 120 Yearling Bulls
Wednesday,February 28, 2015at Mobridge Livestock, 1PM
Mobridge, SD
Clint & Bonnie Rose(605)845-2661
Pearl Johnson(605)845-3104
Stuart Johnson(605)845-3221(605)848-2818
[email protected]/johnsonroseangus
Sires repppresented in the sale includeCole Creek Cedar Ridge 1V, OCCMissingLink, Sinclair Net Present Value, Rito 6I6,ConeallyThunder, BJJ GI Joe, SooLineMotive, Sinclair Fortunate Son, PapaForte, SAV Resource, S Chisum, and
Coneally Earnan
SSD-18866991799R
Friday, December 12, 2014 Cattlemen’s Roundup 29
Photo by Scott HoltThe quiet disposition of the Red Angus cattle is of utmost importance to Ryan, espe-cially when the family relies on the next generation, including Madison (11), to handle cattle.
bulls with white, black and a few red heifers before Pancheri received the paper-work confirming that three of the bulls had recorded birth weights greater than 100 pounds. He wasn’t im-pressed and feared the worse – calving issues … again.
The story had a happy ending, however. “We never pulled a calf that year and that’s what sold us on Red Angus,” said Pancheri.
He continued that Red Angus are the most maternal breed they’ve raised, from mothering ability to breed up. “They’re just a lot more fertile cattle than other breeds.”
Pancheri said they do watch birth weights, mod-erating them for heifers. However, very few of their 500 to 600 head of heifers need assistance at calving. They night check their heif-
(Continued from Previous Page)
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SD-1872466R
30 Cattlemen’s Roundup Friday, December 12, 2014
ers at calving, but don’t night check the mature cows – a definite credit to the comfort level this breed supplies from a calving-ease standpoint.
The Pancheris have also been pleased with the Red Angus bulls from breeding ability to growth, longevity and disposition. “They are easy to be around,” Pancheri stated.
Disposition is a big deal on this ranch, because “when the kids are out of school, they’re helping us. We rely on their help a lot, and it’s a lot better for us to have cattle that anybody can work than cattle with which you have to watch yourself.”
At least 15 Pancheri chil-dren are able to pitch in right now to get the work done, the oldest at 22. Pancheri added, “My dad always said he had the best workforce around; he had all of us kids
and didn’t have to hire many hired men.”
He adds that they’ve found the Red Angus bulls to also be easier on facilities. Idaho is a mandatory trich testing state, and Pancheri likes the fact that these red bulls don’t tear up the cor-rals, as had their black and white predecessors. Plus, “my kids get right in and help us.”
Bred Up for SuccessFrom their initial success
with Red Angus bulls, the Pancheris started building their cowherd over the course of a number of years. They purchased replace-ments from the former Kemp herd and eastern Idaho’s Loosli Red Angus. When Kemp dispersed, they bought 4-, 5- and 6-year-old cows.
“We notched the ears of all the purebred and regis-
Photo by Scott HoltRyan Pancheri keeps weaning weight records and last year their calves weaned off at 579 pounds.
(Continued from Previous Page)
(Continued on Page 32)SD-1875314R
Friday, December 12, 2014 Cattlemen’s Roundup 31
38th AnnualB u l l S A l e
Selling 160YeArling BullS &
25 Aged BullS50 regiStered& CommerCiAl
HeiferS
Koupal’s B & B identity 0020 - reg #16710463
19 Sons sellSire: Sitz Upward MGS: GAR Exaltation
EPD’s CED +3; BW +1.9; WW +67; YW +126;Milk +36; Marb +.41; REA +.96; Beef +106.81 –
Co-Owned with Krebs Ranch
15 sons sell – Sire: Koupal BruleeMGS: OCC Juneau 807J
EPD’s CED =1; BW +2.6; WW +65; YW +107;Milk +26; Marb -.20; REA +.33; Beef +42.17
Koupals B & B extra 0011 - reg #16710494
16 sons sell – Sire Koupal’s B & B Extra 7080MGS: SAV Bando 9074 EPD’s CED +0; BW +3.0;WW +77; YW +130; Milk +19; Marb +.65; REA+.95; Beef +109.11 Co-owned with Beitelspach-
er Ranches and Genex Cooperative
Koupal’s B & B ft Knox 2077 - reg #17322785
7 sons sell – Sire: S Chisum 6175MGS: SAV Pioneer 7301
EPD’s CED +1; BW +2.7; WW +80; YW +127;Milk +26; Marb +.25; REA +.90; Beef +93.78
Co-owned with Jerry Moore
oCC Juneau 807J - reg 13627989
40 descendents sell – Sire: OCC Emblazon 854EMGS: OCC Candor 763C
EPD’s CED -5; BW +2.1; WW +57; YW +86;Milk +22; Marb -.02; REA +.97; Beef +49.13
Co-owned with Tim Ohlde
Monday, Feb. 16, 2015 • 12:30 pm (CST)At the Ranch 3miles South and½mile east of Dante, SD
Herd Sires:Koupal Advance; Koupal’s B & B
Endurance; Koupal’s B & B Supremacy;Koupal Czech; Baldridge Optimum; Duff
Palarmo; Chisum; Connealy Guinness;Koupal’s B & B Amigo 0272;
Frontman 1010;Koupal Juneau 797
AI Sires:RB Active Duty – 11 sons sell; BufordRanch Hand - 12 sons sell; Mustang;
Resource; Pioneer
EPD’s as of 11/13/2014Call or Email to Join ourmailing list!
[email protected] www.koupalangus.com [email protected]
Koupal AngusLaVern &Alice KoupalDerek & Kristi KoupalDante, SD 57329Phone/Fax: 605-384-5315LaVern’s cell: 605-491-1768Derek’s cell: 605-491-0244Derek’s home: [email protected]
Koupals B & BAngusBud & Bernie Koupal40083 300th StDante, SD 57329Phone/Fax: 605-384-3481Bud’s cell: 605-491-2102Dan’s cell: 605-491-1331Joe & Saracell: 605-491-3202
Video of bulls will be available end of January.
SD-187
5321
R
Koupals B & B dante 2069 - reg #17334430
13 sons sell – Sire Koupal’s B & B IdentityMGS: SAV 5175 Bando 4597
EPD’s CED +12 ; BW -.6; WW +60; YW +114;Milk +31; Marb +.78; REA +.60; Beef +100.79
Co-owned with Moore Angus
Koupal mVP 0200 - reg #16725260
Selling from the Koupal’s herd a pick of the 2014 yearling heifers.
1
32 Cattlemen’s Roundup Friday, December 12, 2014
tered cattle we bought, and from that point on, we’ve kept all of the heifer calves from those cattle. That’s how we’ve grown our herd to 2,500 head. We haven’t bought any females for 10 to 15 years.”
Pancheri added, “We got a great market now – our heifer calves will bring more than our steer calves nowdays.” They’ve also been told their heifers are some of the best in the country for the size of their herd.
“We have lots of demand for our bred heifers. I could sell them really easily but until we get all our cows preg checked, I prefer to not sell anything.”
Heading in the Right Direction
Pancheri believes their bull suppliers are providing them with high-quality Red
Angus genetics. He said their primary supplier has been good to work with through the years, always interested in the needs of his commer-cial customer and concerned with what happens on the carcass side of the business.
With Rick’s help, Ryan oversees the bull buying for their herd, keeping track of genetics and selection factors. They are mindful of birth weights but also pay attention to carcass traits. Pancheri said they also really watch maternal because “you’ve got to have a cow produce a calf before you can have a carcass.”
For 18 years, the Pancher-is have been successfully bull breeding their replacement heifers for 45 days in their feedlot. Pancheri explained that they’ll turn four to six bulls in with a group of 100, and any heifers that don’t breed up in that time frame are sold in the fall.
The heifers start calving in February, one month ahead of the mature cows, which calve for 60 days beginning March 1, when temperatures can be as high as 48 degrees Farenheit and as low as 23 degrees Faren-heit.
Mother Nature dictates much of the feeding require-ments and it isn’t unheard of for them to need to feed hay in the winter for up to 120 days. “It depends on how long the cows can forage,” Pancheri explained. “A heavy snowfall or an open winter are factors on the feeding timeline.”
Branding begins April 1 and, starting with heifers, Pancheri said they’ll work a herd every week thereafter, slowly making their way up the valley. Their mature cattle are turned onto BLM range May 1 where they are bred. They spend summers on dry grazing lands, and are only brought onto irrigated pasture for a month in early September before weaning in order to add additional weight on calves. Last year, calves weaned off at 579 pounds, which Pancheri said is really good for their country.
They start weaning Octo-ber 1 with 300 to 500 head of pairs separated weekly for four weeks. The calves are trucked to their feedlot in Howe, while the cows are preg checked and turned back out onto rangelands to forage until the weather dictates otherwise.
Since 2006, the family has enrolled calves in the Red Angus Feeder Calf Certi-fication Program (FCCP), tagging their calves with the familiar yellow tag as another means to capture additional value.
Pancheri explained, “We thought it would give us another avenue that, if we wanted to market them, peo-ple would know that they’re the Red Angus.” He said they haven’t gotten the opportu-
nity to test the tag because the Johnson brothers have placed the top bid on their cattle each year.
Gary and Robert John-son, twin brothers, own and operate Johnson Livestock near Idaho Falls, a finishing feedlot they started in 1984 with their late father, Ward, who suggested Red Angus to the Pancheris.
The Johnsons have pur-chased Pancheri cattle for 30 years, and this relationship extends back another 40. Explaining why, Robert John-son remarked, “They have been really good, honest people to work with. We’ve developed a good relation-ship over the years. They’ve always produced quality livestock and always been as honest as can be when we’ve dealt with them.”
Though the Johnsons feed all breeds of cattle, he said, “Performance-wise, I would fill our feedlot with Pancheri cattle if there were enough of them.”
“The uniformity now, compared to 25 years ago, is unbelievable. They’ve done a really good job the last 10 to 12 years of picking the right type of females to put back in their herd. Obviously they’re picking sires that produce uniform calves.”
The Pancheri steers are harvested at JBS in Hyrum, Utah, at about 18 to 22 months of age. Johnson said the front end of the Pancheri cattle have probably been the best of all they’ve harvested in 2014.
The first five loads, all harvested on one day, quality graded 95 percent Choice with just under 10 percent Prime. For their feedlot, the Johnsons usually average a 63 percent yield, but with the Pancheri cattle, they’ll usually see an additional half percent.
“Between the quality of their cattle and type of people they are to deal with, they’re pretty tough to beat,”
(Continued from Page 30)
(Continued on Next Page)
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Johnson assured. He add-ed that the cattle are also healthy and winter hardy. From the example these cattle have set, he said, “We’d absolutely feed more good Red Angus if we could get them.”
The Johnsons share feed and performance data with their cow-calf customers.
“They tell us if we are going in the right direction with our cattle or not,” Pancheri said, “and we are still in the business.”
He added, “Everybody keeps telling us we should start crossbreeding. I asked the Johnsons if we needed to change our program and they asked me, ‘Why do you want to change something that is as good as it is?’ So, we’ll keep going the way we’re
going.”Actually, Pancheri and his
brothers have no desire to crossbreed. They have had a higher percent calf crop and their calves are heavier than they’ve ever been. He said when you look down the feedlot bunks, the cattle look like peas in a pod.
“There’s enough here to keep our family busy and, some days, there is too much. We have a good work force, and working together with six of us brothers, our kids and wives, we do a good job. As long as we can contin-ue to make a living and pay the bills, we’re doing alright. The Red Angus have helped us as much as anything.”
“There’s no reason to fix something that is working,” he summarized, “and Red Angus are working for us beyond a shadow of a doubt.”
(Continued from Previous Page) Repenning receives Bar One Ranch Scholarship
KANSAS CITY, Mo. — Kelsey Repenning, Mitch-ell, S.D., was awarded the $2,500 Bar One Scholarship Oct. 31 at the American Hereford Association (AHA) Honorees Reception during the AHA Annual Meeting in Kansas City. This scholarship was one of many awarded through the Hereford Youth Foundation of America (HYFA), totaling more than $37,000.
The 20-year-old daughter of Steve and Lori Repen-ning, Kelsey, is a junior studying animal science and agricultural communica-tions at South Dakota State
University. She plans to pursue a graduate degree in ruminant nutrition at Kan-sas State after graduation.
At the 2014 Junior National Hereford Expo (JNHE), Kelsey was elected to the National Junior Her-eford Association board of directors. She was the 2013 South Dakota Beef Ambas-sador.
George and Karen Sprague of Bar One Ranch, Eugene, Ore., made a generous donation to HYFA in 2011 so that an annual scholarship could be award-ed in honor of Ken Tracy, a fellow Hereford breeder who lost his battle with cancer.
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Big Sioux River plan: Keep cattle from Skunk Creek
SIOUX FALLS (AP) — The city of Sioux Falls plans to spend more than $1 million to pay farmers to keep their cows out of the Big Sioux River and its tributaries.
For more than a decade, conservationists have worked to clean the polluted Big Sioux River. Millions have been spent to repair eroded banks, pay for buffer zones between animals and the
water or to install manure containment systems on feedlots.
Despite all that, the waters circling Sioux Falls consistently carry too much E. coli and fecal coliform to be safe for swimming.
Some of the snags have been unavoidable, including flooding in 2011 that undid some of the city’s bank res-toration work and caused a sewage failure.
But other issues come down to perception: The no-
tion that a single landowner can’t make a difference and the idea that urban devel-opment doesn’t shoulder its share of the blame has made the job of convincing live-stock producers to voluntari-ly modernize for the water’s sake a tough sell.
The latest attempt is a five-year plan where the city of Sioux Falls will partner with conservation districts to spend $1.6 million paying producers to keep cattle out of Skunk Creek during recreation season. The plan, Seasonal Riparian Area Man-agement, or S-RAM, prom-ises quick results and an easier sell, the Argus Leader reported.
Cattle owners keep their animals out of the creek from April through September and get an up-front payment of $60 an acre for 10- or 15-year commitments. They can hay the land, as long as the grass stays at least 4 inches high.
Already, there are nearly 600 acres enrolled along Skunk Creek, and water quality testing through the summer has shown improve-ments. The city’s push to enroll 1,700 more acres in the program is the highlight of a larger, $9.1 million project whose ultimate goal is to improve water quality from the Brookings-Hamlin County line to Sioux City.
If the targeted approach to
Skunk Creek is approved by the state and earns funding from the federal government, proponents say the results will help sway skeptics.
“We want to show produc-ers that we can have results if we do the things we need to do,” said Jack Majeres, head of the Moody County Conservation District.
The improvement push began in earnest in 1999, when the Environmental Protection Agency placed the Big Sioux River on a list of impaired water bodies, set-ting off a search for pollution sources.
Five years later, the state Department of Environment and Natural Resources released an exhaustive, 801-page report on the issues.
Urban development and stormwater runoff, naturally erodible soil and seasonal snowmelt were culprits, but the livestock and agricultural operations that pepper the watershed with manure, dirt and nutrients had a signifi-cant impact on water quality.
No one planned it that way, said Jay Gilbertson, head of the East Dakota Wa-ter Development District.
“Fifty years ago, the conventional wisdom was to build a feed pen in places where runoff or snowmelt would wash everything away
BY JOHN HULTArgus Leader
(Continued on Next Page)
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Friday, December 12, 2014 Cattlemen’s Roundup 35
and keep your lot clean,” Gilbertson said. “The trouble is that all of it goes some-where.”
Conservationists, armed with enticements in the form of federal grant mon-ey, set about working their way through the watershed, knocking on doors and pitch-ing modernization projects and management practice plans.
The results were mixed. Of the nearly 900 farms in the central Big Sioux water-shed with livestock noted in the 2004 study, about 200 were considered priorities by the cleanup project’s coordi-nator.
“Of that 200, there might be 50 of them that have something in place now,” said Barry Berg of the South Dakota Association of Conservation Districts. “The majority of them, we haven’t gotten to yet.”
A 2010 DENR report on the effectiveness of the first phase of Central Big Sioux cleanup said the financial incentives for riparian man-agement - fencing off pas-tures year-round - were fairly successful.
Agricultural waste systems were not. Smaller operators can’t be forced to build one, and those who do need to be able to pay 25 to 50 percent of the cost them-selves. And some producers resent being asked to change decades-long business prac-tices.
“We have approached a number of producers, and they’ve turned us down be-cause they don’t think they’re a problem,” Majeres said.
Even the willing some-times struggle with the big picture.
Ed Friske of Castlewood took federal grant money in 2008 for a vegetative treat-ment area to control the
flow of animal waste, paying $11,000 out of pocket. It was meant as the first step in a multi-year project for his 150-head dairy operation, but Friske ultimately lost interest.
“Just one person can’t do it,” Friske said. “If I do it, there are four or five people to the north of me. I’ll still get all the crap.”
Berg still believes that ag waste systems are necessary to watershed health, partic-ularly for feedlots nearest to rivers and stream, but they’re expensive.
“When you spend $100,000 a crack and you get a million dollars (in grants), you do 10 and you’re done,” Berg said.
The watershed program had to find a way to get a bigger return. Enter S-RAM. It targets pastures, not feed-lots, and factors in the time of year that cattle most likely to use the river for cooling
off - April through Septem-ber. That also happens to be when the EPA water quality standards for recreation - swimming, kayaking or wading - are highest.
Unlike the federal Conser-vation Reserve Program or the state Riparian Area Man-agement programs, S-RAM gives producers flexibility. The setback requirements aren’t as strict. Farmers can use the hay that grows on the land. It also pays for 75 percent of the cost for fencing and the installation of rural water for the grazing animals.
The water systems are key to success, Berg said.
If the animals can’t use the creek to cool off in the summer and have clean water once the fence is open, the chances they’ll use the water at all drop dramatical-ly.
“If they’ve got a fresh
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water source, they’re not going to go to the creek,” Berg said.
Ron Alverson of Went-worth enrolled 30 acres of pasture next to Skunk Creek in S-RAM last year. He had a financial incentive to do what made sense for the water, he said. He’ll retire soon, but no one who uses his land for the next decade will have cattle in the creek.
“It’s about our duty to preserve our waterways and protect our natural resourc-es,” Alverson said. “It was an attractive price. Put those things together and you have a nice program.”
Early results have been promising, Gilbertson said. East Dakota has been gathering samples from four locations along Skunk Creek all through the summer. So far, the sites next to land en-rolled in S-RAM are coming in below the immersion rec-
reation standards on several occasions.
“With the caveat that this is pretty raw data from the start of a multi-year project, the data seem to suggest that for bacteria, (the program) has a positive impact,” Gilb-ertson said.
Gilbertson, Majeres and Berg have pitched the pro-gram to the U.S. Department of Agriculture, which created a new funding source this year through the invention of the Regional Conservation Partnership Program. Berg applied for $1.86 million in funding from the new program, citing S-RAM’s innovation.
The DENR and the city of Sioux Falls are paying attention.
The DENR must approve the new five-year plan and sanction $1 million in grant funding to make it happen. Pete Jahraus of the DENR took a while to support the
half-season buffer zone, but the program’s results have been “very convincing.”
“We’re excited about what’s going on there,” Jah-raus said.
Sioux Falls is already on board. The Skunk Creek feeds the Big Sioux through the city, providing the only flow through town when the river’s waters are directed into the diversion channel in the spring. That means quick results on the Skunk Creek could pay off in the Big Sioux.
The city spent nearly $2.5 million in federal loan money on bank restoration in and around the city from 2008 through 2013, though 2011 flooding damaged some of that.
“Since those got done, we’ve been looking at some other options,” said Andy Berg, principal drainage engineer for the city.
The city’s borrowing clout can make it a powerful part-ner for the watershed project.
Sioux Falls uses low-in-terest federal loans adminis-tered by the state DENR for clean water projects such as lift station improvements and sewer trunk line upgrades within the city limits, but it is allowed to set aside 1 per-cent of its interest payments for watershed projects.
For the city, acting as a funding source for local conservation districts made the job of connecting with upstream landowners easier.
“Five years ago, we had similar money, but we didn’t have this partnership,” Berg said. “The city was going out and trying to talk to landowners, and it wasn’t working very well.”
Now, landowners near-er the city will be higher priority.
The closer a landowner is to the city, the higher priori-ty that landowner will be.
“We want to focus on Skunk Creek and water that comes into the city,” said Jes-
se Neyens, an environmental analyst for the city.
The targeting makes sense for the city, Majeres said, but it makes sense for the watershed project, too. Fo-cusing on specific, achievable tasks can provide results that prove the value of conserva-tion work.
“To get immediate re-sponses through the whole watershed, we’d need billions of dollars,” Majeres said.
The new plan has merged what had been known as the Central Big Sioux Water-shed Project - Brookings to Brandon - with the Lower Big Sioux Watershed Project - Brandon to Sioux City.
The work is similar, Barry Berg said, and many of the partners were the same. Combining made sense, he said.
The initial focus on Skunk Creek, he said, was “a com-promise,” but there are other marks to hit in the next five years.
The projects are gaining momentum: There are 10 more waste systems being designed in Minnehaha County, which adds up to 16 in the past two years, Barry Berg said.
As expensive as upgrades are up-front for livestock op-erations, the investments can pay off in efficiencies. Cattle in the mono-slope barns with manure pits he pitches to landowners stay healthier, for example, and the stored manure provides a steady source of fertilizer.
“The guys who are not building the barns right now are falling behind the other guys,” he said. “The new, innovative things . the early guys that jump into it are the ones that will be successful.”
The Seasonal Riparian Area Management program pays farmers $60 an acre when they sign 10- or 15-year agreements to keep their cattle - and the cattle’s waste - away from river or creek banks from April 1 through Sept. 30.
(Continued from Previous Page)
ROSTER CHAROLAISWE SELL BULLS • WE BUY CALVES
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Selling 80 Charolais Bulls• 60 Yearling Bulls and 20 2-Year Olds
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Friday, December 12, 2014 Cattlemen’s Roundup 37
Frey Angus Ranch40th Annual Production Sale 40th Annual Production Sale
At the Ranch located 4 1/2 miles south of Granville, ND At the Ranch located 4 1/2 miles south of Granville, ND
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38 Cattlemen’s Roundup Friday, December 12, 2014
Honoring Angus breed heritageGenerations of farmers
and ranchers committed to Angus cattle are responsible for shaping what is now the industry’s leading beef cattle breed. Their shared vision of genetic improvement, performance records and raising cattle that consumers demand is what has set the breed apart during years of challenges and opportunities.
The American Angus Association recognizes breed leaders and their contribu-tions each year by inducting individuals into the Angus Heritage Foundation. Four new additions were rec-ognized Nov. 6 during the Association’s Awards Rec-ognition Breakfast, held as part of the first-ever Angus Means Business National Convention and Trade Show
in Kansas City, Mo.The 2014 inductees are:
Paul Donnelly, Kansas City, Mo.; Don Greiman, Garner, Iowa; the late Bob Laflin, Olsburg, Kan.; and Lawrason Sayre, Churchville, Md.
Each inductee or a family representative received a framed Angus Heritage Foundation certificate, and their names will be engraved on the Heritage Foundation plaque displayed in the library of the Association headquarters in Saint Joseph, Mo.
Photos and biographies will be included in the 2015 edition of the Angus Her-itage Foundation booklet. Read more about the induct-ees in the paragraphs that follow.
Paul Donnelly
Paul Donnelly has been a steadfast partner for the American Angus Association for more than two decades. In 1992, the Association Board of Directors selected Donnelly as their legal coun-sel, and since that time, he has worked with more than 20 presidents and as many as 90 different Board members.
Donnelly’s work on behalf of the Association and its membership includes guid-ing the formation of Certified Angus Beef as a Limited Liability Company, assisting in the establishment of An-gus Genetics Inc., re-writing of the Association’s Rules in 2005 and ongoing Rule amendments since, and the ongoing development of the Association policies relating to genetic conditions and other changes in the indus-try.
Based in Kansas City, Mo., Donnelly is a partner at Stinson Leonard Street, where an extensive portion of his practice is devoted to work performed on behalf of the American Angus Associa-tion. Prior to joining the firm in 1977, Donnelly served as a federal law clerk in the West-ern District of Missouri and as counsel to United States Senator Stuart Symington (Missouri) in Washington, D.C.
While he had no prior experience in the agriculture or cattle industry, a historic photo of the Kansas City Stock Yards now hangs in his downtown office. Donnelly says he greatly values the friendships and connections he’s made by being involved with the Association and assisting its leadership team.
American Angus Association
(Continued on Page 40)
Wicks AngusAnnual Production Sale:1st Saturday inMay
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Farm Forum Photo by Connie Sieh GroopCows in a snowy lot near Frederick.
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December31— Lazy J Bar Ranch New Year’s Eve Extravaganza, 3:00
pm, Aberdeen, SDJanuary
12 — MacDonald Ranches Genetics Parnters, Napoleon, ND17 — Stan McKnight Ranch Herd Builders Pure Bred Females,
Ft. Pierre, SD26 — Delany Herefords & Atkins Herefords 2015 Bull Sale,
Lake Benton, MN30 – Feb. 7- Black Hills Stock Show & Rodeo Featuring 10 Breeds of
Cattle Shows & Sales, Rapid City, SD31— Double J Farm Simmental Cattle by Private Treaty,
Closes at Noon, Garretson, SDFebruary
1— Frey Angus Ranch 40th Annual Super Bull Sunday Sale,Granville, SD
9 — Sletten Angus Bull Sale, 1:00pm, Faith, SD9 — Fawcett’s Elm Creek Annual Production Sale, Ree
Heights, SD13 — Mohnen Angus Annual Bull Sale, 1:00 pm, White Lake,
SD14 — Schaff Angus Valley 112th Annual Production Sale,
10:00 pm, White Lake, SD14 — Stewart & Steffensen Charolais Bull 8th Annual Sale,
12:00 pm, Madison, SD14 — Wilkinson Ranch Private Treaty Bull Sale, DeSmet, SD16 — Koupal BB Angus Annual Bull Sale, 12:30 pm, Dante, SD17 — Bar JZ 64th Annual Bull Sale, 1:00 pm, Harrold, SD18 — Hilltop Angus Farms 37th Annual production sale 1PM
Bowdle SD.19 — Olson’s Red Power Performance Bull & Female Sale,
1:00 pm, Argusville, ND20 — R Lazy B Ranch Charolais Production Sale, 1:00 pm,
Aberdeen, SD26 — Symens Brothers 35th Annual Production Sale, 1:00 pm,
Amherst, SD27 — Beitelspacher Ranch Annual Production Sale, 1:00 pm,
Mobridge, SD27 — Wieczorek Limousin 35th Annual Bull Sale, 1:00 pm,
Corsica, SD28 — Flittie Simmental Annual Bull Sale, 1:00 pm, Aberdeen,
SD
28 — Bush Angus Focus on Performance Annual ProductionSale, 1:00 pm, Britton, SD
28 — Johnson —Rose Angus Ranch Annual Bull Sale,Mobridge, SD
March1 — Spring Valley Angus Annual Bull Sale, 12:30 pm, LaMoure
ND2 — Hojer Gelbvieh Ranch Annual Production Sale, Huron, SD2 — Campbell Red Angus Bull Sale, 1:00 pm, Mobridge, SD2 — Edgar Brothers Bull Sale, Aberdeen, SD5 — Bieber Fever VIII Production Sale, Leola, SD6 — Sandmeier Ranch Annual Sale, Bowdle, SD7— Ravin Creek Ranch Production Sale, 1:00 pm, Huron, SD7— Thorstenson Gelbveih & Angus Production Sale, Selby, SD8 — RBM Livestock Annual Bull Sale, Florence, SD
10 — MacDonald Ranches Performance Power 2015 Sale,Mandan, ND
12 — Schmig Simmental Ranch 32nd Annual Production Sale,1:00 pm, Stockholm, SD
16 — Baxter Angus Bull & Female Sale, 1:00 pm, Rockham, SD16 — Wagner Herefords Bull Sale, 1:00 pm, Rockham, SD17 — Moore Angus Performance Sale, 1:08 pm, Artesian, SD18 — Eagle Pass Ranch Bull Sale, 1:00 pm, Highmore, SD20 — 3C Christensen Ranch & NLC Ranch Bull Sale,
Wessington, SD20 — Driscoll Cattle Company 15th Annual Bull Sale, 1:00 pm,
Yankton, SDApril
3 — Roster Charolais Bull Sale, 1:00 pm, Mitchell, SD4 — Triple M Ranch Registered Red Angus Bull Sale, 1:00 pm,
Mandan, ND4 — Wells Charolais 33rd Annual Bull Sale, 1:00 pm, Aberdeen,
SD6 — Dikoff Ranch Annual Bull Power Sale, 1:00 pm, Onaka, SD
11 — Sonstegard Cattle Co. 11th Annual Bull Sale, 1:00 pm,Montevideo, MN
18 — Linskov-Thiel 34th Annual Bull Sale, Isabel, SD18 — Miller Angus Farms Bull Sale, 1:00 pm, Huron, SD27 — Ma & Pa Angus 18th Annual Bull Sale, Presho, SD
May2 — Wicks Angus 21st Annual Production Sale, 6:00 pm,
Carpenter, SD
40 Cattlemen’s Roundup Friday, December 12, 2014
Don GreimanDon Greiman’s grandfa-
ther, Fred, purchased the family’s first Angus bull in 1896. Actually, he traded his 2,000-lb. Percheron stallion for a 400-lb. wooly-looking Angus bull calf. But since that time, the family has been devoted to the Angus breed. Fred’s son, Addis, took over the Angus herd in 1923, followed by his sons, Don and Cliff, who continued the operation in 1949.
The fifth generation of Greimans continues that tradition today, and the Grei-man herd of Garner, Iowa, is among the oldest continuous Angus herd in the United States.
Don Greiman has served on the Iowa Angus Board of Directors and has repre-sented the state of Iowa as a delegate for the American Angus Association Annual Meeting for 58 consecutive years. During his two terms on the Association’s Board of Directors, from 1976-1982, the concept of Certified Angus Beef LLC (CAB) was initiated and the Association purchased the Angus Journal magazine.
Don Greiman was a
member of the 1950 Iowa State University Livestock Judging Team and a member of the Intercollegiate Cham-pion Meats Judging team. Over the years, he has judged several county, district, state and national livestock shows, as well as numerous state Angus shows and sales.
Another life passion for Don Greiman was serving on the board of directors for the Iowa State Fair. He has the distinction of serving the longest tenure – 44 years. He enjoys watching the next generation of the Greiman family participate in Angus cattle shows and events, and continue the legacy of commitment to the business breed.
Bob LaflinAs a true ambassador for
the Angus business, the late Bob Laflin never let the dust settle under his feet. When he wasn’t working cattle, he was attending Angus sales and events across the nation. Raising Angus cattle was the only way of life Laflin knew. He raised his family and built his ranch in Olsburg, Kan., with the Angus cowherd paying the way.
Laflin Angus was started
in 1900 by Laflin’s grandfa-ther, Eugene B. (E.B.), in southeast Nebraska.
In 1962, Laflin expanded Laflin Angus to Kansas, purchasing a ranch near Ols-burg, Kan. Bob had the first Certified Meat Sire herd bull in Kansas and hosted the very first performance-tested bull sale. A believer in genet-ic technology, Laflin used all the tools made available to him through the American Angus Association. From performance information to the showring – his slogan was “muscle is the name of the game.”
Laflin was an active pro-moter of the National Junior Angus Association (NJAA) and was involved in the organization and fundraising when the show was held in Kansas. At the ranch head-quarters, he hosted several Kansas Angus field days and industry seminars, along with yearly production sales.
Together, Laflin and his wife, Barbara, have four children: Sharee, R.D., Karen and Guy, who were all active in the Kansas Junior Angus Association and the NJAA. Now, Laflin’s grandchildren and great grandchildren are forging the way with Laflin Angus genetics in their own
cow herds.
Lawrason SayreAfter studying at Yale,
serving as a Marine in the Korean War and working as a civil engineer, Lawrason Sayre returned home to Maryland and his farming roots. He moved his young family and purchased Waffle Hill Farm in 1960, starting with a small commercial herd and a few registered-An-gus heifers.
Lawrason and his family have been in the Angus busi-ness ever since, expanding the operation to include 150 registered Angus cows on 300 acres.
True to Lawrason’s engi-neering background, data and numbers have always played a major role in Waffle Hill breeding decisions. He was an early adopter of performance testing, and enrolled in the Angus Herd Improvement Records (AHIR) program when it was newly released. A dedicated steward of the land, he has been a leader in pasture management, and has been recognized at local and na-tional levels for his conserva-tion efforts.
(Continued from Page 38)
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Friday, December 12, 2014 Cattlemen’s Roundup 41
Lawrason, his late wife, Jane, and their four children – Lawrie, Nancy Ann, Sally and Ned – were all active members of their state and junior Angus programs, and Lawrason served as director and president of the Mary-land Angus Association. In 1991, he was elected to the American Angus Association Board of Directors and then served as president of the Association in 1998. During that time, he served two terms on the CAB Board.
The Sayres continue to be active agriculture advocates in the populous Mid-Atlantic region, and have given count-less tours of Waffle Hill Farm to local, state, federal and international visitors.
For more news from the Angus Means Business Na-tional Convention and Trade Show, visit www.anguscon-vention.com.
(Continued from Previous Page) Latest breakthrough in alfalfa technology SHOREVIEW, Minn. —
In an effort to bring the industry’s first quality-en-hancing trait to market, Forage Genetics Internation-al (FGI) announces that the reduced lignin trait will be known as HarvXtra alfalfa. This breakthrough technol-ogy is designed to ease the “yield-versus-quality” trade-off currently faced by alfalfa producers by improving forage quality over a longer period. This provides grow-ers with greater flexibility and a wider cutting window to maximize yield potential.
“There are two key ways that producers can utilize the HarvXtra alfalfa tech-nology,” said Matt Fanta, FGI President. “First, they can maintain their current harvest schedule routines and obtain improved quality
forage compared to commer-cially available alfalfa har-vested at the same growth stage. Otherwise, they can delay harvest by a few days and obtain higher tonnage while maintaining accept-able forage quality.”
HarvXtra alfalfa was developed through a stra-tegic partnership between FGI, The Samuel Roberts Noble Foundation and the U.S. Dairy Forage Research Center in conjunction with Monsanto.
HarvXtra alfalfa will be sold in a trait stack with Ge-nuity Roundup Ready alfalfa, offering producers a number of advantages. In addition to the improved quality and harvest flexibility benefits of the HarvXtra alfalfa, the Ge-nuity Roundup Ready tech-nology delivers the ability to increase yield potential with faster stand establishment
and less competition from weeds or traditional cover crops such as oats.
HarvXtra alfalfa is not currently available for sale; however, a petition to deregulate is currently under review by the USDA (the USDA comment period closed June 30, 2014). The company anticipates a limit-ed commercial introduction in 2016 to allow growers the opportunity to realize the value and benefit of the technology.
About Forage Genetics International
For the past 50 years, For-age Genetics International (www.foragegenetics.com) has led the forage industry with innovative genetic discoveries, variety devel-opments and cutting-edge product introductions.
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42 Cattlemen’s Roundup Friday, December 12, 2014
Top beef, dairy thought leaders discuss BVDV eradication
AUSTIN, Texas — More than 50 veterinarians, labo-ratory personnel, research-ers and animal health com-pany officials participated in the Bovine Viral Diarrhea Virus Eradication: Reality or Myth? Symposium on Oct. 13 in Kansas City, Missou-ri. The symposium, which addressed the significant economic impact of BVDV on the cattle industry, was held just prior to the joint U.S. BVDV/ESVV Pestivirus Symposium and the Amer-ican Association of Veteri-nary Diagnosticians/United States Animal Health Asso-ciation annual meeting.
According to event organizer Jeff Baxter, senior product manager at Thermo Fisher Scientific, the sympo-sium explored and opened lively discussion about how
diagnostic and surveillance tools can be orchestrated in a comprehensive program to manage and control BVDV on a nationwide basis. “The eradication effort starts with understanding the baseline from a foundational per-spective,” Baxter said. “The three critical elements are vaccination, diagnostics and biosecurity, and it will take a collaborative effort indus-trywide to achieve our goal of eradicating BVDV across the nation.”
Economic Impact of BVDVDr. John VanLeeuwen,
professor at the University of Prince Edward Island, Canada, spoke about the significant production and economic losses the dis-ease causes, even when the effects are “subclinical,” or not easily detected.
“BVD is one of those insidious, production-lim-iting diseases that affects many cattlemen and their livestock, even though owners may not be aware of it,” VanLeeuwen said. “It’s a virus that can produce what are called persistently infected (PI) animals that look normal, but spew out the virus, potentially caus-ing disease and production losses through the rest of the herd.”
He said research shows that costs can run up to $100 per head, per year in epidemically infected herds.
“The PIs often don’t survive more than a year, although they can survive up to five years and usually have reduced productivity,” VanLeeuwen explained. “The rest of the herd can suffer losses associated with abortions and poor repro-duction in the cows and poor growth in the calves, and then significant losses in feedlots when the virus ends up causing diarrhea and respiratory disease.”
For proof eradication can be accomplished, VanLeeu-wen pointed to a program in Norway started in 1993 that eliminated the virus in 10 years. He said it has been estimated the program cost about $10 million to implement during the de-cade, resulting in a massive estimated savings of $10 million to $50 million per year in production costs for Norwegian cattle and dairy producers.
Where Do Producers Start?
Dr. Tom Shelton of Merck Animal Health offered a practitioner’s perspective on the effects of BVDV and how to approach controlling it.
“During my 25 years of practice before I assumed my technical service job, I learned BVDV underlies a lot of problems in both beef and dairy herds, be it reproductive, immunologi-cal, respiratory, diarrheas or others,” Shelton said. “The disease tends to present itself subclinically, not clin-ically.”
Shelton said detrimental economic effects include:
• reduced milk pro-duction, increased clinical mastitis
• reduced reproductive performance
• growth retardation• increased occurrence of
other diseases• unthriftiness• early culling• increased mortality of
young stockShelton said while vacci-
nations play a role, diag-nostics and surveillance are needed to help successfully manage the disease.
“We took a fairly seg-regated dairy area that included upwards of 250,000 dairy cows from a number of different dairies,” Shelton said. “By testing the incom-ing heifers over a period of years, we remarkably re-duced the number of PI an-imals coming back through calf ranch protocols.”
Using PCR to Help ControlDr. Gregg Hanzlicek of
Thermo Fisher Scientific Inc.
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Kansas State Veterinary Diagnostic Laboratory (KSVDL) told the group his lab has been developing tools and offering guidance for using polymerase chain reaction (PCR) to prevent and control BVDV on U.S. beef operations.
One tool KSVDL devel-oped for cow-calf operators is a survey based on rec-ommendations for BVDV control sited in the latest literature. “This tool allows one to compare BVDV con-trol programs between two hypothetical herds,” Han-zlicek explained. “It puts a dollar value on following the recommendations and a dol-lar value if you don’t follow those recommendations. It asks about biosecurity, vaccination and many other factors.”
He said ultimately the survey:
• allows one to econom-ically compare different management scenarios for controlling and preventing BVD
• allows producers to enter their real-life input values such as calf, cull cow prices, test costs
• provides an estimate of economic outcomes based on management practices
• stimulates discussion about biosecurity, vacci-nation programs, testing options, etc.
A Regional Eradication Success
Dan Grooms, DVM, of Michigan State University’s College of Veterinary Medi-cine and a team of research-ers successfully conducted an eradication program in Michigan’s Upper Peninsula from 2007 to 2012.
“The project was a success,” Grooms told the
group. “Although we didn’t fully eradicate BVDV be-cause it was only a five-year project, we showed we can make significant impact by getting rid of the virus in a region of a country. We demonstrated that an eradication effort needs to be a cooperative project. It’s not just a top-down kind of government-regulated eradi-cation program. It’s basically a project where producers, veterinarians, industry leaders, universities, phar-maceutical companies and diagnostic labs must work together to really make a significant impact in eradi-cating this virus.”
Grooms said the region-al eradication effort was successful by employing diagnostics to identify exist-ing PIs and to help monitor whether BVD showed up again in a herd, as well as implementing vaccinations and biosecurity.
“I hope this will show everyone that this type of program could be imple-mented on a larger scale at a relatively low cost,” Grooms said. “Even if not at a na-tional scale, it can be done successfully at a county or state level and make a great impact on BVDV.”
Details and results from the study can be found at http://1.usa.gov/1Gf9lsJ.
“BVDV affects all levels of our cattle industry,” Grooms said. “The virus is known to have multiple effects on reproductive efficiencies. We know it can cause health problems in cattle, such as diarrhea. It’s an important part of our respiratory dis-ease complex in our feedlot industry. This virus is im-munosuppressive, which can lead to secondary problems with potentially devastating effects on our cattle herds. This is why BVDV eradica-tion is so important.”
(Continued from Page 42)
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Value of collecting phenotypes
IntroductionFrom a historical point of
view, there have been con-siderable changes made to National Cattle Evaluations (NCE) overtime. More recently, many beef breed associations have augment-ed EPD (Expected Progeny Differences) with genomic information. This step alone has included many rapid evolutions both in terms of
methods of incorporation and the source of genom-ic information. Changes include new genotyping platforms, the usefulness of genomic information in predicting genetic merit, and our understanding of how best to utilize it.
Prior to genomic infor-mation being first integrat-ed into NCE by the Amer-ican Angus Association in 2009, genomic information (Molecular Breeding Val-ues; MBV) were viewed by
some pro-ducers as competing sources of infor-mation to traditional EPD. This created confu-sion as to which piece of in-formation to utilize. Even after the incor-poration of genomic predictors into NCE, new implementa-tion issues were evident in the beef seedstock industry. Retraining, or recalibration (the process of re-estimat-ing SNP (Single Nucleotide
Polymorphism) effects and refining the resulting ge-nomic prediction equation), became a necessity and the beef industry understood
BY MATT SPANGLERUNL Extension Beef Genetics Specialist
Figure 1. Increase in accuracy from inte-grating genomic information that explains 10% of the genetic variation into Estimated Breeding Values (EBV).
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that the efficacy of genomic predictors were not robust (persistent) over several generations. The lack of predictive ability across breeds was also very clear, and the use of genomic predictors trained in Angus could not be used with any beneficial degree of accu-racy in a closely related
breed like Red Angus. Consequently, for breeds to capitalize on the benefits of augmenting traditional EPDs with genomic in-formation, they must first make an initial investment in developing a “training” population of genotyped and phenotyped animals, upon which to train the genomic prediction equa-
tions. Gener-ally speaking, breed associ-ations were advised to genotype a minimum of 1,000 animals that pref-erably had moderate to high accuracy EPD. To date several breed associations have met this mark and are currently
computing EPD incorporat-ing genomic information.
AccuracyHow well a particular
genomic test improves the accuracy of an EPD in the context of selection is related to how much of the genetic variation the marker test explains. The magnitude of the benefits depends on the proportion of genetic variation (%GV) explained by a given marker panel, where the %GV is equal by the square of the
genetic correlation multi-plied by 100. Table 1 shows the relationship between the genetic correlation (cor-relation between predicted and true genetic merit; true accuracy), %GV, and the Beef Improvement Feder-ation (BIF) accuracy. BIF accuracy is the standard for all U.S. beef breeds.
From Table 1 it is clear that even when the %GV is exceptionally large, the cor-responding BIF accuracy is relatively low. This suggests
Figure 2. Increase in accuracy from integrating genomic information that ex-plains 40% of the genetic variation into Estimated Breeding Values (EBV).
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Friday, December 12, 2014 Cattlemen’s Roundup 55
that although genomics has the potential to add additional information, by itself it is far from a perfect predictor of an animal’s genetic merit.
Figures 1 and 2 illustrate the benefits of including genomic information into EPD (or Estimated Breed-ing Value (EBV) which is twice the value of an EPD) accuracy (on the BIF scale) when the genomic informa-tion explains 10 or 40% of the genetic variation (GV), which is synonymous with R2 values of 0.1 and 0.4. The darker portion of the bars shows the EPD accu-racy before the inclusion of genomic information and the lighter colored por-tion shows the increase in accuracy after the inclusion of the genomic information into the EPD calculation. As the %GV increases, the
increase in EPD accuracy becomes larger. Additional-ly, lower accuracy animals benefit more from the inclusion of genomic infor-mation, and the benefits decline as the EPD accuracy increases. Regardless of the %GV assumed here, the benefits of including genomic information into EPD dissipate when EPD accuracy is between 0.6 and 0.7.
On the other hand, when %GV is 40, an animal with 0 accuracy could exceed an accuracy of 0.2 with genomic information alone. This would be comparable to having approximately 4 progeny for a highly herita-ble trait, or 7 progeny for a moderately heritable trait (Table 2).
Phenotypes in the genomic era
While these gains in accuracy are impressive,
particularly for non-parent animals, it is clear that genomic information alone cannot “prove” a sire. Or in other words, additional in-formation is required before an animal can achieve very high levels of BIF accura-cy. To reach high levels of accuracy it is necessary to collect and submit pheno-typic information on the animal’s progeny.
There is still a need, and tremendous benefit from, the continued collection of phenotypes in the context of genomic selection. The benefits fall into two broad classifications:
1. Training PopulationAnimals with phenotypes
are needed in order to develop the initial training population. Ideally these animals have moderate to high accuracy EPD, which would require that they have several progeny (refer to Table 2) that have the
phenotype recorded. If rou-tine phenotype collection does not occur, building the initial training set will be problematic. Genomic predictions need to be “re-trained” overtime, and to do so requires additional ani-mals to be included in the training population. Similar to building the initial train-ing population, this requires that newly selected animals are routinely measured for the trait of interest thus building EPD accuracy and providing additional infor-mation from which more reliable genomic predictors can be derived.
2. Added AccuracyAlthough genomic
predictors have been shown to increase EPD accuracy (refer to Figures 1 and 2), in isolation they do not have the ability to increase BIF accuracy to high levels alone. To continue to build
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SSDD-118877
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56 Cattlemen’s Roundup Friday, December 12, 2014
the accuracy of an animal’s EPD, the animal must have progeny recorded that have been measured for the trait of interest.
ConclusionsThe inclusion of genomic
predictors into NCE offers an exciting and powerful tool to increase the rate of genetic gain by increasing accuracy of EPD, particu-larly of young animals, and by reducing the generation interval if younger sires are used more heavily. How-ever, genotyping animals does not replace the need for phenotyping. Doing so inherently limits the upper bound of accuracy far below what is possible if addition-al phenotypes are collected. Genomic predictors should be viewed as an additional source of information for EPD calculations, not the complete picture.
(Continued from Previous Page) FDA highlights hot topics including changes in animal antibiotics
Significant changes on the horizon for the animal health industry are reflected in three new documents now available, according to Sharon Benz, director of the Division of Animal Feeds within the Food and Drug Administration’s Center for Veterinary Medicine.
Benz, who spoke Oct. 22 at the Animal Health Indus-try Insights seminar hosted by the Kansas State Univer-sity’s Master of Agribusiness program, said the new doc-uments will govern the use of antibiotics and will affect those working in the ani-mal health and companion animal industry. They are (1) Guidance 209 Judicious Use of Medically Important
Antimicrobial Drugs in Food Producing Animals; (2) Guidance 213 Implementa-tion Principles for Guidance 209; and (3) the Veterinary Feed Directive Proposed Regulations.
The seminar was held at the K-State Olathe campus.
“With the changing envi-ronment surrounding animal health, it is vital that we are knowledgeable and engaged with the agencies that pro-vide guidance and oversight to our industry. Dr. Benz provided the opportunity for Master of Agribusiness students to become familiar with the influence that the FDA has on our business de-cisions,” said Justin Smith, MAB student and deputy animal health commissioner for the Kansas Department of Agriculture.
Benz gave an overview of the CVM and its responsibil-ities, which she said works to ensure animal drugs are safe and effective before giving approval; monitors the safety and effectiveness of current animal drugs on the market; reviews animal and pet food for safety and labeling; ensures pet food additives are safe and have utility before approval; conducts research; and helps make more animal drugs legally available for minor species, such as fish and hamsters.
“Dr. Benz was very knowledgeable with an extensive background. Since canine nutrition is my passion, it was an extremely interesting presentation for me. I learned about FDA policies and procedures I did not know about and Dr. Benz was nice enough to
answer questions afterward, said Melissa Vogt, MAB student and distance learn-ing veterinary technology Instructor at Colby Commu-nity College.
“Dr. Benz brought a wealth of knowledge to the forum by providing insight regarding the changes that the animal health industry will be experiencing when the implementation of the judicious use of antibiotics guidance 209 and guidance 213 begin,” said David Yan-dell, MAB student and se-nior associate for regulatory, surveillance and compliance with Elanco Animal Health. “Dr. Benz highlighted the need for the judicious use of antibiotics in the industry and that the FDA-CVM, an agency dedicated to the health and safety of humans and animals, is helping to ensure they are available for use in the future.”
Benz is responsible for providing direction and over-sight to the division, which monitors and sets standards for contaminants, approves food additives and oversees medicated feed and pet food programs. Prior to her appointment to director in 2004, she served as the team leader for the Nutrition and Labeling Team. In prepara-tion for her work with the FDA, she was employed by the National Academy of Sciences Board on Agricul-ture as the program officer for the Nutrient Require-ment series bulletins on ani-mal nutrient requirements.Benz earned a bachelor’s degree from Penn State University and a Master’s and Ph.D. degrees from Virginia Tech. Her training is in ruminant nutrition and mineral metabolism and requirements.
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Friday, December 12, 2014 Cattlemen’s Roundup 57
Finding and keeping the best peopleProducing top quality
calves and beef takes top quality people, and families can’t always get all the work done on their own. Just about every full-time cattle operation needs hired labor once in a while, but feed-lots especially rely on their employees.
Managers of feedlots from Texas to Canada discussed hiring and keeping the best people at this summer’s Feeding Quality Forum pan-els in Amarillo, Texas, and Kearney, Neb.
Cozad, Neb., feeders John Schroeder and Anne Burk-holder, of Darr Feedlot and Will Feed Inc., respectively, talked about the “human spirit” as a motivating factor.
“Our people make the difference,” Schroeder said,
noting that motto before showing a video of a pen rider who grew up without arms, but now inspires all 45 employees so that nobody thinks about “disabilities.” On a broader scale, he says working managers inspire by doing, and older employees serve as mentors to young ones.
Burkholder, at a much smaller yard, put her psy-chology degree to work ear-ly on by working alongside her crew of four. “I started in 1997 at $6.85 an hour, so I have been in their shoes, I relate to them and give them a stake in the game,” she said. Anchored by official weekly meetings, commu-nication is continuous and each teammate knows, “I trust them to make deci-sions and the buck stops with them.”
Giving them responsibil-ity is as positive as praise, but it won’t sustain them without a regular pay raise, she added: “They’re people, not robots.”
Kevin Hazelwood, Cactus Feeders vice president of hu-man resources, noted, “The temptation is to think of employees as commodities, but you have to care about them as individuals, and that starts with managers who care. People join good companies but they quit bad managers.”
Those are the ones who fail to set clear expectations, lack organization and don’t take care of their equipment or crew, he said.
As for finding new hires, most panelists agreed with Ben Fort, manager of Quien Sabe Feeders, Happy, Texas: “Good employees come from
good employees.” Word of mouth helps build a “family” kind of chemistry in a crew, he and Schroeder said.
Fort incentivizes the strategy by paying bonuses to those who bring on new help, and further bonuses the longer those crew mem-bers stay.
Leighton Kolk, whose family feeds 17,000 cattle near Iron Springs, Alta., in Canada, said there are too few potential new hires in southern Alberta. Word of mouth might bring contact from a neighboring feedlot, but “that’s a revolving door.”
He operates a fee-based ag employment agency in addition to the farm busi-ness, now that good help is hard to find.
“Ten years ago the need
Certified Angus Beef, LLC
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58 Cattlemen’s Roundup Friday, December 12, 2014
was to sort out the good employee from the 20 that applied,” Kolk said. “The last five years it’s just trying to find someone. Feel their arm—do they have a pulse?” Oilfield jobs might pay dou-ble what feedlots are paying, so the search must find a motivating desire to work with cattle.
Part of hiring involves getting to know the person and their culture, especially with Hispanic team mem-bers. And those interviews point out generational differences, especially in the twenty-something set.
Fewer of the young ones have a direct connection to production agriculture.
“A generation is going away,” Hazelwood said. Those with a “rural upbring-ing,” who grew up doing farm chores are mostly over 30 now.
Schroeder noted, “Even when they did grow up on a farm, the law now won’t let them operate equipment so they learn from the family. We can’t let them drive a tractor till they’re 18, so it takes more training here to keep everybody safe.”
And yet, nobody knows technology better than those in their 20s; they actually teach older employees in many cases, and that helps them feel a sense of purpose, Hazelwood said: “They all want to know why they are doing this.”
Indeed, Fort said the new college graduates “want you to know what makes them tick. It’s not just a job they want; they want a voice, too. If you just tell them what’s expected of them, they’ll roll their eyes and walk on.”
Hazelwood said 75% of turnover in Cactus employ-ees happens in the first six
months, so the company focuses on those who have made it to their first raise, joined the healthcare pro-gram and start to appreciate those benefits in a job that still involves a lot of hours per week and weekends.
“The other thing we do is, we have to make sure the guy enjoys what he’s doing,” Hazelwood said. “Coming to work with people he likes, working with a manager who is well organized in the job and tools so he can go home safely at the end of the day.”
Schroeder uses a 10-point interview in the first year of employ to assess stayability.
“We want to give people a chance, so we explain expec-tations and we wrote down 10 of them that are very spe-cific,” he said. Most involve the degree of self-initiative and ownership employees take in the feedyard – “you see it, you fix it.” But one is rather personal: “Don’t smell.”
Nobody wants to be on the crew with people who wear the same unwashed clothes every day and rarely take a shower, Schroeder said.
“I like to pull out 10 $1 bills and go over these points,” he said. “If they don’t get at least $5 the first time, we probably won’t
keep them very long.”Burkholder has a struc-
tured “recipe program” with 39 standard operating procedures, care guidelines and audits as part of official evaluation and feedback.
“They like to be audited,” she said. “My guys are proud of what they know and do. I have not had to hire anyone for a long time, so I guess it’s working. We pay them to keep up a standard of living; we want them to stay.”
Hazelwood went back to the contrast between com-modity cattle and uniquely valuable people.
“How many feeders get upset about the late-term dead steer, but not the pro-cessor who quits, whether that’s six weeks or six years? We investigate aggressively to find out why they quit; it could be a manager issue,” he said.
“Well, he wasn’t really our kind of guy,” has been the excuse, Hazelwood said. “Really, after six years? That’s worse than saying that dead steer wasn’t our kind of cattle.”
The Feeding Quality Forum was sponsored by Purina, Feedlot magazine, Zoetis, Roto-Mix and Certi-fied Angus Beef LLC; more information is available at www.feedingqualityforum.com.
(Continued from Previous Page)
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South Dakota dairy industry seeing a resurgence
SIOUX FALLS (AP) — The state’s dairy industry is feeling optimistic about its future, especially along the Interstate 29 corridor.
South Dakota dairy farmers are looking to grow with the help of strong milk prices, stable feed supplies and the benefits that come from having nine plants in South Dakota that process one or more dairy products.
Dairy has been an attractive growth target for the past two South Dakota governors, the Argus Leader reported.
Since 2012, Gov. Dennis Daugaard has tried to entice West Coast milk producers to relocate to South Da-kota. A decade ago, when Sen.-elect Mike Rounds was governor and Midwest milk
production had dipped to a 40-year low, the state’s first use of the controversial EB-5 investment program was to provide loans to European farmers willing to move dairying operations to the state.
Now, South Dakota has 263 licensed dairy herds, and 94,000 cows are milked in the state. South Dakota ranks 21st in largest milk production, according to the U.S. Department of Agri-culture. Its farms generate $388 million in milk sales annually.
The industry was hit hard by the recession, according to Marv Post, a Volga farmer and leader of several dairy associations. However, “2014 has been as good as 2009 was bad,” he said.
Farmers along I-29 “have some of the strongest milk
prices in the country. It’s based on competitive pro-cessors,” said Mike Kruger, Midwest Dairy Association CEO.
This year in South Dako-ta, milk prices have ranged from $23.90 per hundred-weight to $26.60. That’s competitive with nearby Minnesota, where the spread has been from $23.40 to $26.70.
Texas, California and Ida-ho are huge milk producers and closer to large numbers of consumers than South Dakota. In Texas, prices have ranged from $23.30 to $26.0, in California from $22.10 to $23.41, and in Ida-ho from $22.50 to $25.10.
South Dakota’s dairy industry overcomes its dis-tance from large consumer markets by processing milk into cheese, yogurt and oth-er dairy products that travel well and have longer shelf lives than milk. This should continue to be the model as the industry seeks to expand, according to Lloyd Metzger, South Dakota State University professor and director of SDSU’s Mid-west Dairy Food’s Research Center.
“We want value-added growth,” he said.
Allen Merrill milks 150 head of cattle near Parker. He notes there is growing interest in extracting dairy protein from products such as whey. He and Post agree the state’s dairy farmers are well served by the SDSU
dairy food center, and its research capacity to explore new dairy products is more than adequate.
A Midwest Dairy Associ-ation market study this year suggests that as West Coast milk producers are expand-ing their production of dairy products in addition to fluid milk for export, there might be opportunities for South Dakota. Cheese made in states such as Washington and Oregon that goes over-seas might leave a void on the West Coast that cheese made in South Dakota can fill.
Also, compared to farm-ers in other regions, produc-tion features line up well for South Dakota farmers, Post and Merrill said. To feed their cattle, Western farmers have to vary the animals’ diets based on seasonal availability of feed, and dairy cow rations at times of the year can even include citrus fruit. South Dakota cattle, by contrast, common-ly eat corn, soybean meal and dried distillers grain year round. That helps keep milk production steady.
“It’s like humans, we tend to eat the same thing for breakfast every day,” Merrill said.
The size of South Dakota dairy operations continues to grow. While a 250-cow dairy was average in 2005, it’s now is closer to 1,500 cows, according to Roger Scheibe, director of industry
BY PETER HARRIMANArgus Leader
(Continued on Next Page)
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outreach for the Midwest Dairy Association. Large dairies now milk 3,000 to 6,000 cows, although at that size there has been some public push back based on environmental concerns.
In the face of such num-bers, Merrill admits his 150 cows are a small operation. But Midwest Dairy Associ-ation CEO Kruger insists there is room for all sizes of operators as the dairy in-dustry expands, and Merrill agrees. A common theme that large operations force out small ones is incorrect, Merrill said. A larger in-dustry means more veter-inarians, more equipment suppliers available not only to the largest farmers but to people like him.
“Managed growth helps the infrastructure,” he said. Without it, “you see some leveling off in the interest”
of suppliers to add new tech-nology. The right-sized dairy farm, Merrill claimed, “is whatever you can manage and feel comfortable with.”
Capital for expansion is an issue, according to Kru-ger, especially because ag-ricultural lenders following the recession are requiring producers to have more eq-uity. But the No. 1 obstacle to growth is convincing the public the dairy industry can handle the waste from large numbers of cattle, Post said.
Merrill acknowledges his cows on the edge of Parker that frequently are visited by grandparents with their grandchildren probably re-ceive a much more favorable welcome than if there were 3,000 of them.
Milk production per cow has increased dramat-ically from the days when South Dakota farmers were milking as many as 250,000 cattle, Post said. As the
dairy industry looks to grow now, “it’s an exciting time for South Dakota,” Scheibe said. “In some ways, we’re back to the future.
“Twenty or 30 years ago, South Dakota milked more cows than today. We
could feed them and handle the waste,” Scheibe said. “If we could get back to those numbers with today’s efficiency and productivity per cow, we could grow the economy of South Dakota by how manifold?”
(Continued from Previous Page)
Tell how and why beef is better
Technology, with a dose of explanation, is just what the expert ordered.
As a meat scientist for Zoetis, Brad Morgan sees a lot of industry innovations first hand. Interacting with the public, including fellow employees at the animal health company and his own family, he sees the need for education.
In the most recent
National Beef Quality Audit (NBQA) nearly every segment—from feeders and packers to retailers and allied industry—named lack of transparency among the top three weaknesses of the U.S. cattle industry.
“Do consumers like technology?” he asked. “Not really. Everyone likes $2 gas and a dollar loaf of bread though.”
The statistics are familiar.
BY MIRANDA REIMANCertified Angus Beef, LLC
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SD-1872851R
62 Cattlemen’s Roundup Friday, December 12, 2014
By 2050 we’re going to have to produce twice as much food and 70% of that will need to come from gains in efficiency due to technology.
Morgan explained it’s usu-ally a lack of knowledge of technology, not the practice itself that causes consumer concern. “I remember asking my wife one time, ‘Would you feed our boys beef that had been subjected to organ-ic acid to kill E. coli?’” In that entire sentence, one word stuck out to his partner.
“When she hears ‘acid,’ what does she think about? That battery in your car,” he
said. Holes in clothes lead to visions of holes in a stomach.
When he asked the same question about a 2% vinegar mixture on that beef, his wife was okay with that.
“This was a defining moment for me. I asked, ‘You know that vinegar is an organic acid?’”
“No. I didn’t know that,” came the reply.
“We really have to explain to people why we want to use technology,” he said.
For example, in the pack-ing plant it takes 400 gallons of water per beef carcass, which might sound like a lot to the average consumer.
“Ninety percent of it is for sanitation and cleanup,” Morgan said. “And 100% of what goes in also comes out. But a lot of times because of the water treatment facilities that we have at these packing plants, most of the water is cleaner coming out of the plant than it is from the mu-nicipal water supply coming into the plant. We spend a lot of money treating water at packing plants.”
Continued advancements may improve water savings even further.
Zoetis is working on vaccines and other ways to reduce the risk of pathogens
like E. Coli and Salmonella. Researchers are down to the level of tracing bacteria in the gastro-intestinal tract in a common fly.
“We don’t do a good enough job of tooting our own horn,” Morgan said of those ongoing efforts.
History shows the impor-tance of being allowed to produce enough food.
“Most countries that have been successful over time have been able to feed themselves and defend them-selves,” Morgan said.
U.S. consumers don’t just expect beef to be available. They want it to be good, too.
“Demand is there for pre-mium-type programs that are going to perform,” he said.
In 2011 USDA Prime and branded beef products ac-counted for 11% of the sales mix, compared to 15% today. Using an adjusted price base, carcass value increased $90 during that timeframe.
“That shows you the de-mand is there,” he said.
Premium grinds, whole muscles or unique blends processed into ground beef, represents a growing cate-gory.
“It’s pretty romantic to have a gourmet hamburger now,” Morgan said, but he doesn’t think cattle should be fed strictly for a ground beef market. Current feed prices encourage increased days on feed, and more of the carcass value comes from end meats.
“If you look at the amount of pounds [of ground beef] sold, it’s 58% of the carcass, but if you look at dollars it only adds up to 38%,” he said.
Morgan spoke as part of the Feeding Quality Forum in Kearney, Neb., and Amaril-lo, Texas, last month. The meetings were sponsored by Purina, Feedlot maga-zine, Zoetis, Roto-Mix and Certified Angus Beef LLC; more information is available at www.feedingqualityforum.com.
(Continued from Previous Page)
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Check out American Kobe-style beef
When consumers hear the term Kobe, the first thought that comes to mind is typically not a city in Japan, but rather a juicy steak right off the grill. Kobe beef is globally renowned for its rich flavor, juiciness, and tenderness or high marbling content. Kobe beef is cuts of beef from the Tajima strain of Wagyu cattle (which mean Japanese cattle), raised in Kobe, Japan. But did you know you can find Kobe-style beef produced right here in the United States?
Since 1994, U.S. produc-ers have worked to offer American Kobe-style beef that features the same char-acteristics, marbling and flavor that defines Japan’s Kobe beef by bringing herds of Kryoshi and Akaushi breeds of Wagyu cattle to the United States. The same closed herd and multi-trait
selection process used for Kobe beef was adopted and is now used by various U.S. trade associations (Ameri-can Akaushi Association, the American Wagyu Associa-tion, and the Texas Wagyu Association) that promote and uphold the industry standards. Highly prized for their rich flavor, these cattle produce what some would argue is among the finest beef in the world.
USDA’s Agricultural Marketing Service (AMS) provides certification services to beef producers for a number of marketing programs making labeling claims concerning breed of cattle and carcass character-istics, including American Kobe-style beef. These char-acteristics go beyond the requirements for the official USDA grades and are often the basis for approval of meat product labels making marketing claims.
AMS created specifica-
BY LARRY MEADOWSSpecial Assistant to the Deputy Administrator, AMS
Photo courtesy Premshree Pillai. Used with permission.Highly prized for its rich flavor, Wagyu beef is among the finest beef in the world. USDA’s certification programs have successfully helped the industry market its brands with USDA integrity for over twenty years.
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tions to assist breed associa-tions and processing entities to market branded products to consumers. For the American Kobe-style beef specifications, AMS worked with our industry partners at Heart Brand Beef, Clear Creek Farms, American Cer-tified Kobe Beef/Certified Wagyu Beef, Morgan Davis International Wagyu Beef, and Rosewood Wagyu Beef.
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(Continued from Previous Page)
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The most recent beef demand numbers and what they mean
Reporting for the Beef Checkoff, Melissa Sandfort recently caught up with Glynn Tonsor, Associate Professor, Department of Agricultural Economics at Kansas State University, for an update about beef demand and the role of the checkoff in helping keep demand strong through targeted marketing efforts.
Here’s what Tonsor shared:
“Sixteen out of the last 17 quarters we’ve had a year-over-year increase, the only exception being the first quarter of this year. And I think a large part of why that’s going on is continued ongoing success of marketing the right prod-ucts to the right people, and quite frankly, the seg-ment of the public that con-tinues to purchase beef is a slightly different segment than it used to be. So per capita consumption is going down, but we haven’t sim-ply taken away two pounds from every household in the U.S. The industry, I think, is doing better of recogniz-ing that and aligning what they produce with who is able and willing to buy it. And I have no reason to think that’s going to stop in the fourth quarter. The increase in the third quarter basically reflects the fact that we had less beef con-sumed, specifically we had a 4.6 percent decline, and it’s important to recognize that consumption decline is mainly just because we produced less. That’s just we produced less therefore per capita consumption is down. And what actually oc-curred was we had an 11.3 percent increase in price in the third quarter compared to the third quarter 2013.”
Tonsor said despite fairly wide-spread confusion on the topic, per capita con-sumption is not demand, as consumption alone says lit-tle about the value consum-ers place on beef offerings.”
“Demand increased. Basically nobody made the public pay more for those reduced pounds, but they did. And they not only paid more, they paid more than we expected. And that only occurs, they’re doing that voluntarily right, is if they’re seeing more value in there than was anticipated.”
Tonsor went on to ex-plain what kinds of things are allowing demand to grow despite the supply challenges, and how the checkoff is playing a vital role in that process.
“It’s a fair statement that the beef industry has done a lot better job of target-mar-keting products and basical-ly developing new products for the appropriate con-sumer. The flat iron steak didn’t exist 10 years ago. That’s a product now that brings more value to that carcass than was the case using the same poundage somewhere else before. The beef checkoff was one of multiple supporters in that effort. The mix of muscle cut versus ground isn’t’ the same across the country and we have mixed data on this. But the industry is doing a better job of coordi-nating what segment of the population wants ground beef, what segment wants steak, and sending it to the appropriate markets.”
*Here’s another great reference for understanding the difference between de-mand and consumption.
For more about beef checkoff investment, visit-MyBeefCheckoff.com.
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Cow depreciation: A hidden significant non-cash expense for cow-calf producers
Cow depreciation is frequently the second largest expense to the cow-calf en-terprise after feed. Depreci-ation is a non-cash expense that is often overlooked by cow-calf producers. Depreci-ation for a cow is calculated as the following.
Depreciation = (Purchase Price or Replacement Cost – Salvage Value)/Productive Years in the Herd
Purchase price is the dol-lar value of the bred heifer or cow when she is bought and enters the herd. For producers raising their own replacement heifers, replace-ment cost should include all costs starting with the
costs to produce the weaned heifer calf till the time she enters the herd as a bred female.
To demonstrate how significant this expense can be, examine an example of current bred replacement heifer prices against today’s cull cow values.
(Bred Two-Year-Old Heifer = $2750) – (Average Cull Cow Value = $1500) = $1250/head, Depreciation without death loss
The average number of productive years for most cows in a herd is somewhere from 3-5 years assuming a 10 - 20% cowherd replace-ment rate. Using five years, depreciation is $250.00 per head per year. At four years it is $312.50 per head per
year and at three years it is $416.67. If you add in death loss at 2% on an average cow herd value of $2000 then depreciation expense jumps to $290.00 per head for five years, $352.50 for four and a $456.67 for three. Cow depreciation is a signifi-cant expense!
Aggressively identifying ways to reduce depreciation expense should be a goal for cow-calf producers. Depreci-ation can be reduced one of three ways.
1. Reduce replacement heifer development costs or the purchase price for bred heifers/cows.
2. Increase the salvage value of cows that are leav-ing the herd.
3. Increase the number of
years a cow is productive in the herd.
Let’s take a look at each segment of the cow depreci-ation equation.
Purchase price or replacement cost
Cow-calf producers who purchase bred replacement females need to evaluate the cost of those females against expected productivity and revenue that will be gener-ated from them. When most cow-calf producers think of buying bred replacements, they probably are thinking of purchasing bred heifers. However, it may be that pur-chasing a different age group of cows would be more prof-itable and provide greater
BY AARON BERGERUniversity Nebraska - Lincoln Extension Educator
(Continued on Next Page)
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management flexibility.Those cow-calf producers
who raise and develop their own replacement heifers should enterprise replace-ment heifers separately from the cowherd to identify all of the costs involved. A produc-er should know their costs to produce a weaned heifer calf. At weaning the produc-er should on paper “sell” the weaned replacement heifers to the replacement heifer development enterprise at market value. The re-placement heifer enterprise “buys” the weaned heifers and then develops the heifers into bred heifers that can be “sold” back to the cow-calf enterprise. Once the bred heifers are ready to enter the herd, the cow-calf enterprise then “buys” these bred heifers at market value.
While all of these trans-actions only occur on paper,
and may seem unnec-essary, it brings clari-ty to where expenses and revenue are being generated in the operations and which enterprises are profit-able. Keeping track of all expenses, includ-ing a heifer’s market value at weaning, that go into developing a bred replacement heif-er is important to be able to identify oppor-tunities to optimize development costs. For more information on developing replace-ment heifers see the UNL NebGuide “Re-ducing Replacement Heifer Development Costs Using a Systems Approach” at http://go.unl.edu/8m5d.
Salvage valueIn the depreciation
equation, increasing the “sal-
vage” value of cows leaving the herd often provides the greatest opportunity to re-duce depreciation. Frequent-ly cow-calf producers preg-nancy test spring calving cows and cull non-pregnant cows in the fall of the year. Other cows are frequently culled at this time as well for a plethora of reasons including age, attitude, udders, structure, lumps, bumps, etc. This time of the year is also historically when annual cull cow values tend to be lowest for the year.
The following are two examples of the ways that value can be added to cows leaving the herd increasing their worth and thus reduc-ing depreciation expense.
1. Have a long breeding season and a short calving season. The use of pregnan-cy diagnosis tools such as palpation and ultrasound can identify how far along a cow is in her pregnancy. Those cows that will calve later than the desired time period can be sold as bred cows. In today’s market en-vironment bred cows usually bring a significant premium to non-pregnant cows.
2. Capture additional val-ue from non-pregnant cows by adding weight and selling
into a historically seasonally better market than the fall. The value of weight gain today for a cull cow can be quite amazing at current prices. This is especially true if you can move a cow from a “Lean” classification into a “Boner/Breaker” clas-sification in a market where prices are increasing.
Productive years in the herd
Evaluate ways to cost effectively reduce cowherd turnover. The first reason cows are usually removed from the herd is because they are not pregnant. Young cows, especially those that are two or three years of age are often the most vul-nerable. Older cows toward the end of their productive life can be vulnerable as well. There are several tools such as hybrid vigor, genet-ics that fit resources, health programs, development sys-tems and strategic feeding/supplementation that can be used to cost effectively reduce cowherd turnover.
Cow depreciation is a sig-nificant expense. Cow-calf producers who aggressively manage to cost effectively reduce this expense will see an increase in their profit.
(Continued from Previous Page)
Farm Forum Photo by Connie Sieh GroopCattle wait for their rations at the Ulmer farm south of Fred-erick.
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Friday, December 12, 2014 Cattlemen’s Roundup 69
Managing dairy calves and heifers during the winter months
Attention to dairy calf and heifer management is important for maintaining growth rates, minimizing health problems, and opti-mizing current and future profitability of the dairy farm. The presence of pump-kins and frost reminds us that the winter months are just ahead, and with most of the crops for the livestock now in storage, it’s time to prepare for these upcoming winter months.
Preweaned Dairy CalvesDairy heifers account
for about 30% of the feed costs on a dairy farm, and the most costly period for raising heifers is during the preweaning period. The animal’s susceptibility to disease is greatest during this period, and the cost per unit of dry matter (DM) consumed is the highest. As we know, the energy require-ment for calves housed in unheated facilities increases during the winter months due to cold stress (lower crit-ical temperature for newborn calves of 48°F versus 32°F for older calves), and the cold stress can increase the risk for disease. Unfortunate-ly, the death rate sometimes increases in the winter, and/or the growth rate plummets unless we provide additional energy to these calves. In addition, we need to realize that small breed calves (e.g., Jersey) have about a 20% larger surface area per unit of body weight than large breed calves (e.g., Holstein).
Different feeding strate-gies for optimizing growth
of dairy calves during the winter months include:
• If a milk replacer is being used, it should contain at least 20% fat.
• The solids content of the liquid from milk replacer can be increased from 12.5% to 16% (from 17 to 22 oz per gallon).
• Increase the feedings per day from two to three times while holding the amount per feeding the same.
• Feed more milk per feeding, e.g., increase from 2 to 3 qt two times a day.
• Use a combination of these strategies so that small breed calves consume at least 1.3 lb of DM (milk re-placer is approximately 95% DM; whole milk 13% DM) with 0.3 lb of fat and large breed calves consume 2.0 lb DM (0.5 lb fat) per day.
These strategies should be used while also offering a high-quality calf starter free choice and plenty of water. Water can certainly be a limiting nutrient during the winter months due to freez-ing or the calf feeder not offering adequate amounts.
Hypothermia is a major risk for neonatal calves, and housing, feeding, and hydra-tion are key considerations for minimizing hypothermia. Consider these strategies to reduce the chance of hypo-thermia:
• Position hutches used for calves in a well-drained area (slope and gravel are important), and make sure the prevailing wind is not blowing into the front of the hutch. A windbreak upwind from the hutches can help reduce the wind chill on calves.
BY MAURICE L. EASTRIDGEProfessor and Extension Dairy Spe-cialist, The Ohio State University
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• Bed hutches with dry, organic bedding, preferably straw, so the calves can nestle in the bedding for warmth and reduce heat loss by conduction that would occur with inorganic (e.g., sand) bedding. Wet bedding also greatly increases con-ductive heat loss.
• If calf coats are going to be used, check the inventory and have all of them cleaned for use.
• Keep an ample supply of electrolytes on hand in the
event of scours so the calves can be kept hydrated.
Weaning Dairy CalvesAs in other periods of
the year, calves should be slowly weaned (e.g., reduce the milk allowance in half and feed once per day for a week) and placed into groups of 6 to 8 calves of similar age and size. Mini-mize other stressors, such as vaccinations and dehorning, at this time.
Housing for Dairy HeifersHousing of dairy heifers
during the winter is crit-ical. The housing system should allow for adequate air exchange without becoming drafty and yet protect the heifers from the extremes of the environmental elements. Oftentimes, respiratory problems increase in calves and heifers in the winter because the housing allows inadequate or excessive air exchange. Continuously monitor the breathing and coughing of the heifers . Ac-cepting as normal that only a few heifers are coughing is not justification for avoid-ing facility modifications. If these health problems occurred last winter, facility modifications should be oc-curring now. Heifers housed outdoors need to have access to either natural or con-structed windbreaks. Water sources need to be evaluated now for continuous availabil-
ity of water and for minimiz-ing a slippery surface around the water supply.
Feeding Programs Post-weaning
Farmers need to be care-ful that the long-term advan-tage of good growth rates in preweaned calves is not lost by how the weaned heifers are managed. Heifers will usually eat about 2.5% of body weight, so an adequate supply of high-quality forag-es needs to be in storage at this time. If forage supplies are limited, rations may need to be altered to stretch the forage supply.
Overfeeding corn silage can lead to overconditioned heifers, which results in increased feed costs and increased risk for metabol-ic disease and dystocia at calving. If diets are fed with a high proportion of corn
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Friday, December 12, 2014 Cattlemen’s Roundup 71
silage, the amount of the diet fed needs to be restricted to control energy intake.
Heifers need to average about 1.7 lb/day of growth for large breed calves or 1.3 lb/day for small breed calves to reach the desired breeding size at 13 months of age. The goal is for heifers to calve at 22 to 24 months of age at about 90% of their mature weight (1,300 and 900 lb for large and small breeds at calving, including the weight of calf). The management of the heifers during the winter months will be important in achieving these goals.
Evaluate Numbers of Heif-ers Raised
Now is the time to eval-uate the number of heifers on the farm. With improved management and use of sexed semen, many farms are holding large inventories
of heifers on the farm, some-times 125% or greater of the number of cows. At a 30% to 35% cull rate, only about 85 heifers per 100 cows should be held on the farm. With high feed costs and limited forage in many situations, now is the time to sell excess heifers.
SummaryManagement and housing
strategies need to be in place to reduce the maintenance energy requirement of calves during the winter by provid-ing ample clean, dry bed-ding; windbreaks; and other improvements to the hous-ing to lessen the cold stress without going overboard to increase the risk of respira-tory problems. Feeding of the calves and heifers during winter needs to be changed to provide adequate energy for continued growth rates achieved during other times of the year.
(Continued from Previous Page) SDFU supports Sen. Johnson in efforts to protect COOL
HURON — South Dakota Farmers Union President, Doug Sombke credits Sen. Tim Johnson for his role in protecting Country of Ori-gin Labeling (COOL).
“Since the beginning, Sen. Johnson has been a champion for South Dako-ta’s livestock producers who depend on COOL to inform consumers on where their meat comes from,” said Sombke.
As the bill’s original author, Sen. Johnson was instrumental in getting it passed. Today, despite repeated attempts by op-ponents of COOL to repeal the program during con-
sideration of the farm bill, Johnson remains successful in maintaining the current statute in the final bill.
Sombke references the Oct. 7, 2014, announcement that Senator Tim Johnson (D-SD) joined with 31 of his Senate colleagues from both sides of the aisle in sending a letter to Senate Appropri-ations Committee Chair-woman Barbara Mikulski (D-MD) and Ranking Mem-ber Richard Shelby (R-AL) urging them to reject any ef-forts that would undermine, weaken or suspend Country of Origin Labeling (COOL) through the appropriations process for the remainder of Fiscal Year 2015.
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Note to youth: Start with end in mindThe ultimate goal for any
cow-calf operation is to sup-ply beef to the market. But consumers drive that mar-ket, and they’re signaling demand for high quality.
Mark McCully, vice pres-ident of production for the Certified Angus Beef (CAB) brand, recently spoke about consumers and production systems at the National Block & Bridle Convention
in Lubbock, Texas.“As beef prices have
increased, and consumers pay more for our product, their expectations are going with that,” McCully said. “And so, we really have to deliver. There’s more pres-sure than ever to deliver a great eating experience, and remember why consumers are buying beef.”
Even with the rise in costs, consumers are still purchasing beef as long as
they’re satisfied with the meals, he explained.
“We’re not the cheapest protein out there, and when we spend a lot of money on a product or premium brand, we have a higher expectation level of how that product will perform,” McCully said.
There are great opportu-nities for cattle producers, but the challenge is to think about the cow-calf business in a different way, thinking of what consumers want first, the CAB officer said.
“Our traditional way of thinking is we start at the ranch and think about the mother cow only, but when we look at the growth in the high-quality beef sector, the opportunities out there for a young person getting back into this industry are great,” McCully said.
“I would suggest that, in addition to your focus on great cows, look beyond the commodity business to where there’s value added, and where there is a growth in demand,” he said. “That’s clearly in the high-quality side of the beef market.”
To keep up with that growing demand, he said producers may take ad-vantage of the tools and technology available at the ranch for genetic selection. Value based marketing systems with targets like
CAB incentivize producers to raise the best.
“Cattle that meet CAB specifications are simply worth more,” he said. “The increased value is translated into our feeding industry. Better genetics that can hit those targets on a consis-tent basis, they’re worth more. And feeders are will-ing to pay those dollars to the cow-calf producer.”
The shift to higher qual-ity has changed the supply of premium vs. commodity feeder cattle. Most cattle are sold on a value-based marketing system today, and that has changed mar-ket dynamics, McCully said. Feeders and packers want more superior cattle and fewer commodity calves.
“Sometimes folks think the premium market is a really small, tiny, niche but today Certified Angus Beef makes up more than 15% of the fed cattle coming through our feedlots and packing plants, and that has just continued to grow,” he said. “We don’t see that growth slowing anytime soon.”
McCully emphasized the opportunities for young professionals entering the beef cattle business are at an all-time high, “but it’s an important reminder” that we have to meet consumer expectations first.
BY KATY KEMPCertified Angus Beef LLC
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Friday, December 12, 2014 Cattlemen’s Roundup 75
Precision-feeding dairy heifers
Dairy heifers represent a large expense of resources including feed, buildings, and labor, yet they return no money to the dairy farm until they calve. Our overall management of these heifers must be handled in a manner that yields the best quality heifer, with the highest po-tential to be productive and profitable, with a minimal cost to the farm and the environment.
A great deal of research studying dairy heifers has occurred in the past 10 years, much more than in previ-ous decades. We know that Holstein heifers should grow 1.7 to 1.9 lb per day before puberty and should reach
85% to 90% of mature body weight (BW) by calving to achieve optimal first-lacta-tion milk production. Heifers should calve at 22 to 23 months of age to minimize heifer raising costs and to maximize their milk produc-tion during the first lactation.
For the dairy heifer, dry matter intake (DMI) is in-versely related to diet digest-ibility. Reducing DMI by the heifer results in slower rates of feed passage out of the rumen, and therefore more time is allowed for rumen mi-croorganisms to break down fiber and other nutrients in the feed. The end result is often an improvement in feed digestibility. Therefore, as an animal consumes less dry matter (DM), provided that DM contains the amounts
of nutrients required for growth, more of the energy in the feed will be used for growth, and less is lost in the feces. The combination of these two nutritional principles can yield dramatic improvements in feed effi-ciency of dairy heifers. The concept of precision-feeding is the combination of more precisely knowing targeted growth rates and the nutrient requirements to meet these rates and utilizing tools to improve digestibility and feed conversion.
Much of the recent heifer nutrition research has evaluated precision-feeding of highly digestible diets to dairy heifers for improving feed efficiency and reducing manure. Feed represents the largest component of the
total cost of heifer produc-tion, and it clearly represents the major way to control heifer costs. Diet type and the amount fed can be large factors that affect feed efficiency and are the major aspects that we use in preci-sion-feeding heifers. Ration digestibility is also obviously important. The more digest-ible the feedstuffs used in the ration, the more efficient the heifer will be.
Based on published re-search for precision-fed dairy Holstein heifers, nutrient specifications as currently understood are as follows:
1. Protein: Balance pri-marily for crude and soluble protein.
• 14% to 15% CP for pre-pubertal heifers based on
BY JUD HEINRICHSProfessor of Dairy Science, Pennsyl-vania State University
(Continued on Next Page)
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DMI of 2.15% BW/day.• 13% to 14% CP for
post-pubertal heifers based on DMI of 1.65% BW/day.
• Maintain at least 30% to 35% soluble CP in the rations at all times to allow for opti-mal rumen microbial protein production.
• Rumen undegradable CP levels in excess of 25% to 30% of the CP are not required; use only standard feed sources based on price and availability and not feeds specifically designed for high bypass protein values.
• Soluble protein (SP) and rumen degradable protein (RDP) are efficiently utilized by dairy heifers.
2. Energy: The energy requirement of the heifer will be influenced by BW, growth rate, and the environment in which the heifer is being raised. Diets can be formu-lated at a fixed (generally higher) energy content and
precision-fed to specifically meet the heifers’ energy requirement for growth.
3. Fiber: Traditional-ly, high levels of fiber or low-quality forage are fed to dairy heifers to control di-etary energy intake; however, precision-feeding high-con-centrate, low-fiber diets effectively accomplishes the same goal. Economics and the mix of forages available to a farm usually drive the forage level to feed. Research has revealed that the ratio of forage to concentrates can be extremely wide, from 95% forage to 25% forage.
4. Vitamins and minerals: In precision-feeding systems, it is important to balance diets to current National Research Council (NRC) specifications for vitamins and minerals. With limited newer data, there are no in-dications to suggest vitamin and mineral requirements are altered when heifers are precision-fed.
Monitor Heifer WeightWeighing heifers is a
relatively simple means to monitor animal performance, and this practice is a must for precision-feeding dairy heif-ers successfully. With a preci-sion-feeding system, heifers must be weighed to allow one to know what amount of feeding is required, while maintaining the growth rates needed for breeding at a given age or for calving at a given BW. Scales or weight tapes can be used for heifers with equal success.
Recommendations• Weigh heifers at the
same time of day (relative to feeding); otherwise, alter-ations in gut fill can impact average daily gain (ADG) calculations.
• Weighing heifers once per month is best, but once the system is stable, less frequent weighing can work as long as body condition is observed regularly.
• It is best to weigh all heifers; however, on some farms, it may not be realis-tic, as heifer numbers may be labor prohibitive. In this case, weighing a representa-tive group (10% to 25%) of the heifers in a pen each time will suffice. It is important to be sure that this group is representative of the entire group.
• Monitor individual heif-er and group gains against benchmark weights, and alter management, specifical-ly feed intake strategies, as needed.
Group SizesIn any group-housed heif-
er facility, minimizing varia-tion in size and age of heifers in each group is important, and it remains important in managing a precision-feeding system. Typically, beyond 4 months of age, heifers should be housed with other heifers as close to the same age as possible and always in groups with less than 200 pounds (90 kg) of BW variation within the group. Often, this means having groups with 2 to 4 months of age variation at the most. Post-breeding, this number can be increased to 300 pounds (136 kg) of BW spread between animals within a group.
In precision-feeding systems, heifers will need adequate bunk space, often 14 to 24 inches of feed bunk space per heifer as they prog-ress from 4 months of age to pre-calving or 22 months of age. Precision-fed heifers will not have access to feed available at all times of day; thus, all heifers in a pen must have access to the feed bunk at the same time. Overly aggressive and timid heifers are very susceptible to over- or under-nutrition when feed bunk space is limited. If precision-fed heifers on a high-forage diet have feed available 12 to 16 hours/day, feed bunk space is often not an issue. If heifers are fed 30% to 40% concentrate diets and feed access is limit-ed to 6 to 8 hours/day, feed bunk space can become an issue. Use common sense to
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see if all heifers are satisfied and are growing uniformly when using these feeding systems.
Two strategies can be used when feed bunk space is limited. The first is simply grouping animals with peers of similar BW. The second strategy is to provide impediments to free motion at the feed bunk, such as headlocks or closely placed divider posts. This will likely be effective to some degree but not completely. Feeding twice daily is not recom-mended as this has been shown to increase heifer competition and weight gain variability within a pen.
At the initial implementa-tion of the precision-feeding protocol, heifers will likely vocalize immediately prior to feeding, with the frequency and magnitude increasing toward the next feeding. Experiences are that this
behavior will diminish and virtually disappear 10 to 14 days after the implementa-tion of the precision-feeding strategy. This is not unlike the transition that calves have from milk at weaning time. As long as the heifers are growing according to the ADG goals of your operation and receiving a correctly bal-anced ration, they are being adequately fed.
Precision-feeding heifers until 30 to 45 days before calving has had no adverse effects on calf birth weight, dystocia, metabolic prob-lems, DMI of cows in early lactation, or first-lactation milk production. Any chang-es in rumen and gut volume when using this feeding system late in gestation have been shown to occur rapidly and do not limit postpar-tum DMI; therefore, milk production is the same for these heifers as compared to conventionally fed heifers.
(Continued from Previous Page) Quality and safety first
The Certified Angus Beef (CAB) brand goes beyond fresh beef to add value to high quality Angus cattle. Since its launch in 1978, demand for premium and further-processed items, like deli meats and frankfurters, has brought more value for producers and choices for consumers.
As this innovative line progresses, staff work along-side processors to stay on the forefront of food safety, always the perfect match for fine quality.
“Third-party food safety audits and HACCP [Haz-ard Analysis and Critical Control Points] were useful tools from the start,” says Brett Erickson, the brand’s director of value-added
products. “They gave us in-formation about processors as well, but growing need for consumer transparency in the industry requires new insight on food safety.”
In June 2012, CAB began requiring Global Food Safe-ty Initiative (GFSI) certifi-cation for new processors and then started working with existing processors to become approved. The program was relatively new in the United States, yet the universal code allows sharing of product and food safety information with multiple processors of all product types, plant sizes and geographic locations.
CAB staff found many processors already consid-ering GFSI certification, most through the U.S.-based
BY CRYSTAL MEIERCertified Angus Beef, LLC
(Continued on Next Page)
78 Cattlemen’s Roundup Friday, December 12, 2014
Safe Quality Food (SQF) program. Within SQF’s three tiers, the beef brand requires Level 2 certification for food safety or Level 3 with added quality management mea-sures. Some processors who have worked through the food safety requirements are eyeing Level 3.
“We are fortunate to be associated with dedicated manufacturer-processors who embraced this oppor-tunity to minimize risks by sharpening the food safety culture within their facili-ties,” Erickson says. “Once we explained how it can be benchmarked to all food safety certifications required by their customers, they wanted to know more.”
One of those processors is Hudson Meat Compa-ny in Columbus, Ohio, where brothers Dan and Jeff Emmenegger use sous vide to cook deli meats, pot roast, prime rib and short ribs. Along with the consis-tency gained through this slow-cooking method, most
products are custom pro-cessed using customer-sup-plied fresh meats, offering a unique niche in the market. Many items have been CAB product since 1989, when Hudson became one of the brand’s first value-added processors.
“GFSI certification was important to us because it was important to the Certi-fied Angus Beef brand,” says Dan Emmenegger, Hudson’s president. “Our customers were not requiring it yet but we wanted to be a step ahead of the game and open doors to new business.”
The family-owned pro-cessor was already main-taining HACCP approval, so Emmenegger was hesitant about adding costs for staff time, hiring a consultant or buying new equipment. He says the expense has been worthwhile, with a primary focus on re-wording stan-dard operating procedures to match the SQF code.
Hudson Meat finalized the desk audit in April this year, making minor wording adjustments. The
Emmeneggers also worked through a plant audit with a consultant to prepare for the official plant certification audit in May.
“We are now organized in a way that helps us level the field with large processors,” Emmenegger says. “Plus, our employees are more actively involved. They need to understand why we do what we do and will take an active role in plant audits.”
At Old World Provisions in Troy, N.Y., vice president Ross Shuket says he has gained insight to his team as well.
“We learned that when given the right tools and de-fined objectives [compliance with SQF code], our facil-ities and staff can exceed all expectations,” he says. “Becoming GFSI certified has allowed our current and potential customers to un-derstand and believe in the work we are doing, too, and with that comes increased sales and growth.”
Shuket had also heard about the extensive amount of paperwork and the diffi-
culty of first-time applicants to pass. “Day-to-day man-agement of the extensive paperwork can be challeng-ing but it holds our plants responsible and allows us to improve every day,” he says. “We wanted to make sure we were meeting and exceeding any new industry expectations, and we are.”
In Salisbury, N.C., Frei-rich Food Products also fo-cuses on being a step ahead of regulations in the indus-try. It was an early adopter of HACCP in the 1990s so GFSI certification seemed like a logical next step.
“Once you get to the point of passing all those third-party certifications, this didn’t require much work,” says Freirich CEO Paul Bardinas. “We refined our manual to fit within the SQF framework. The pieces were there – we just had to organize them for the new code. Now with one audit group under this umbrella, all of our customers’ needs are met.”
As CAB approaches two years into this transition, 85% of its manufacturer-pro-cessors are GFSI certified. More are expected to be approved this year. All are moving a step ahead of the federal Food Safety Modern-ization Act.
“We are pleased with our progress and appreciate their ongoing dedication to our brand,” Erickson says. “We are proud to be on the forefront with these businesses on behalf of the Angus breed.”
Founded in 1978 by Angus cattlemen, Certified Angus Beef is the only beef brand owned by the Amer-ican Angus Association and its rancher members. Ten strict quality standards make it a cut above USDA Prime, Choice and Select. For details, visit www.certi-fiedangusbeef.com or www.cabpartners.com.
(Continued from Previous Page)
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Friday, December 12, 2014 Cattlemen’s Roundup 79SD-1872412R
Fawcett’s Elm Creek RanchAnnual Production Sale | Feb 9, 2015 1pm CST
At The Ranch - Ree Heights, SD
Selling 50 horned and polled yearling and 50 two year old bulls.20 yearling angus bulls. Commercial Bred Heifers and openyearling Select Registered Bred Heifers and open yearlingsyearling, Select Registered Bred Heifers and open yearlings.
BW WW YW Milk2.8 57 91 29
Average of 15 of our Active Herd bulls
m+g ribeye marble58 .7 .07
BW WW YW Milk3.5 46 75 19m+g ribeye marble42 .28 .06
Breed Average
Fawcett’s Elm Creek Ranch21115 344th Ave. • Ree Heights, SD 57371 • www.fawcettselmcreekranch.com
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Our Bulls have great numbers and our femaleshave productive and incredibly made udders.
80 Cattlemen’s Roundup Friday, December 12, 2014
Tax planning for high income
For the past 5 years I’ve been writing articles for crop farmers on how to manage the unprecedented amount of income flowing through their operations and now it is the turn of the livestock producer to worry about what to do with all
the extra income. A webinar titled “Tax Planning for High Income” (http://bit.ly/1xdtivU) outlines options livestock producers may want to consider.
Agriculture has always been an industry with cyclical income trends. Prior to 2003, the average farm income reported in our annual data would typically
go up and down each year having a good year and then a bad year and then a good year again. Since then, noth-ing has been typical when looking at the farm income trends and 2014 seems to be another year that no one projected could have been this extreme.
Cattle producers are looking at astonishing prices for their livestock in 2014 which are leading many to be concerned about the tax bill that will inevitably follow this period of pros-perity. In addition to the high prices, many produc-ers have received disaster payments from the Federal Government for losses from 2012 and 2013 in 2014. The combination makes reason for concern for cash basis taxpayers.
Livestock disaster programs
In looking at the Live-stock Disaster Program payments, there are two separate payments that you may have received.
The first is a forage program that was to sup-plement the cost associated with feed losses due to the drought in 2012 and 2013.
Since the program is to give producers the income needed to replace feed, this income will need to be reported on Schedule F for individual taxpayers and will be subject to self-employ-ment taxes. In other words, since your cost to replace the feed was a Schedule F expense, this payment must be classified as the same type. As a cash basis taxpay-er, it also must be included in taxable income in 2014, or the year you received the payment. At first you may think that the payments could be deferred like crop insurance, but since the payments are for the 2012 and 2013 tax years, they have already been deferred beyond the year of produc-tion so there is no option for further deferral.
The second program available was an Indemni-ty Program for the death loss seen in 2013 for either extreme heat or excessive snow. This means this pro-gram could have provided income for the loss of either feeding livestock or breed-ing livestock. If you were paid for the loss of feeding livestock, the income again
BY TINA BARRETTExecutive Director, Nebraska Farm Business, Inc.
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must be reported on Sched-ule F (the same place you would have reported the income from the sale of that livestock) and again will be subject to self-employment taxes. If, on the other hand, you received payments for the death of breeding livestock, I think there is an argument that the income could be reported as ordi-nary income on Form 4797 (not subject to self-employ-ment taxes) as the sale of breeding livestock would be reported there. You will need to make sure your paperwork clearly shows the payment for breeding live-stock separate from feeding livestock in order to take this approach. Regardless, this income must be report-ed on your 2014 tax return, or in the year you received the payment.
Prepaying expensesThere are usually two
things that come to mind for the agricultural producers I work with when it’s time to look at reducing income. The first is to buy equip-ment and the second is to prepay expenses for next year. Buying new equipment is fun and prepaying expens-es is a habit built in those cyclical years of having alter-nating good and bad year.
I will get to purchasing equipment in just a minute, but for now, let’s look at prepaying expenses. With al-ternating years, prepaying in the good years is a great way to even things out with the next bad year. With multi-year stretches of highly profitable years, prepaying can become a snowball of growing problems.
Many crop producers will tell you that prepaying expenses will only work for so long. The first year of high profitability, prepay-ment is easy. The next year, you have to prepay all that and add additional expense
to get to the same place. Let’s look at a quick exam-ple (Table 1 below). If you have on average $150,000 of income and want to keep your taxable income at $75,000, you must prepay $75,000 the first year. That’s usually pretty easy but the second year, you are short the $75,000 of expenses that you pulled into year one, creating a cash basis income ($150,000 that you earned again plus the prepaid expenses) of $225,000. That means in order to get back to $75,000 taxable, you must prepay $150,000. In just five years, you are prepaying $375,000 to stay at your desired income level.
Prepaying expenses is not a bad strategy, but it can’t be
the only strategy in periods of long term profitability.
Capital purchasesBuying capital purchases
to reduce taxable income is a longtime favorite strategy by producers and equip-ment salesmen! The grain producers were given a gift along with their prosperity of enhanced accelerated de-preciation. Their good times came at the same time as a national recession and one of the Federal government’s solutions was to encourage purchasing by the nation’s business by increasing the amount of assets they could write off in the first year from $25,000 to $500,000 and adding an additional
write off of 50% of any brand new assets.
These laws have been allowed to expire as of Jan-uary 1st, 2014 and although there has been much talk of another extension there has been no action taken by Congress to date. While many believe they will take care of this after the elec-tions, it leaves little time for actually purchasing assets prior to the end of the year.
Without Congressional action, the law stands that we will have a limit on Section 179 of $25,000 (in-dexed for inflation) for 2014 and no bonus depreciation. That means that for capital purchases made in 2014,
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82 Cattlemen’s Roundup Friday, December 12, 2014
you can fully deduct the first $25,000 you spend and the remainder will be subject to regular rates. Table 2 (below) is a chart of some typical farm assets and the first year “normal” deprecia-tion rates.
Without the enhanced accelerated depreciation rates, the immediate benefit of purchasing capital assets are greatly reduced. For example, if you purchase a $100,000 tractor, you could
write off the first $25,000 and then the remaining $75,000 would be subject to the rate of 10.71% which would give an additional ex-pense of $8,033 making the total depreciation $33,033. If that expense reduced self-employment taxes of 15.3% and income taxes at a 25% rate, the $100,000 purchase would save you $13,312 in taxes the first year. That means purchasing the asset strictly to save taxes isn’t getting you a very
good return of your money. If you needed the $100,000 tractor to improve your operation, the depreciation will be a beneficial part of your plan.
Income averagingOne of the unique tax
benefits those in agriculture possess is the ability to use Income Averaging. This will be a must use strategy for all livestock producers this year.
Income averaging allows cash basis taxpayers to carry
income back to the three pri-or years and recalculate the tax in those years. In other words we get to “pretend” that the income came in those years. It will be espe-cially beneficial since the past three years have been years with lower profitabil-ity for livestock producers. This means income that would be pushed into a high-er bracket this year could be taxed at the lower brackets you didn’t use. The income that you elect to carry back must be carried back evenly. So if you elect $150,000 of income in 2014, each tax year of 2011, 2012 and 2013 would have $50,000 added to the income reported in those years.
Income averaging does not affect self-employment taxes. That tax will be calculated on all the income reported in 2014 regardless of any carryback.
Other income reducing strategies
In many farming and ranching operations the labor of the family members goes unpaid. In periods of high income, you may con-sider paying wages.
You must pay a reason-able wage for the work done. For example, you can’t pay a 2 year old $10,000 per year to help around the farm but many kids do considerable work around the operation and can be compensated. This expense reduces your farm income and could be tax free if their total income is under the standard deduc-tion.
This also gives the kids earned income that they could contribute to a Roth IRA. These funds can be used to pay for college expenses but are not looked at for Federal Financial Aid purposes.
Paying your spouse, who also must contribute to the operation, is another
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Friday, December 12, 2014 Cattlemen’s Roundup 83
option to consider. While this doesn’t create the tax savings that paying your children can, it may mean we can create an employ-ee relationship that you can provide benefits. The Affordable Care Act has many provisions that limit the flexibility we once had with this strategy so it’s very important to consult a tax professional about your unique situation before implementing any of these plans.
Retirement plans offer a great way to reduce income today. You can use a tradi-tional IRA that has lower limits or you can consider plans like a SEP plan that allows a significant contri-bution in high income years. Either way, you can use them now to avoid high tax brackets and could convert them to Roth IRAs in years of low taxable income. Either way, putting money into a retirement plan locks the money up until you
reach age 59½ (unless an exception applies) or you will face a 10% penalty plus tax on the withdrawal.
Contact your tax professional
Remember that paying taxes is not always the evil that we often think it is. Pay-ing taxes should mean that you are making money and that’s a better situation to be in than not making money.
It is important that you manage your tax bill re-sponsibility so that you are neither creating a nightmare down the road nor paying more taxes than you need to. The balance of finding ways to have the lowest tax bill over the entire course of your business takes planning and the benefit of a quality tax professional that knows and understands agriculture.
Be sure to consult with your tax professional early this year to have time to make the necessary changes before the end of the year is here.
(Continued from Previous Page) Respiratory disease control option
FLORHAM PARK, N.J. — Zoetis announced a new label claim for Advocin (danofloxacin mesylate) Sterile Injectable Solution for control of bovine respiratory disease (BRD) in high-risk cattle. Previously approved for treatment of BRD, a large multi-site study demonstrat-ed that Advocin was safe and effective for the control of BRD in beef cattle at high risk of developing BRD.
Advocin offers a conve-nient alternative for vet-erinarians and producers managing BRD. Producers can now use Advocin for control of BRD in high-risk cattle on arrival or take ad-vantage of the short, four-day withdrawal time for treating respiratory disease late in the feeding period. Advocin delivers what veterinarians expect from a fluoroquino-lone and now offers added flexibility to use the product in two ways.
“The new Advocin claim helps provide another way to control BRD with the fast-acting fluoroquinolone power of Advocin,” said Jeffrey Sarchet, DVM, Beef Technical Services, Zoetis. “BRD remains one of the most economically impactful challenges facing the beef industry and is extremely difficult to diagnose. Choos-ing the right antimicrobials that help control and treat subclinical BRD is critical to cattle health, performance and the bottom line of any operation.”
Advocin is part of the comprehensive and versatile portfolio of leading BRD Management Solutions from Zoetis, which also includes DRAXXIN (tulathromycin) Injectable Solution and Excede (ceftiofur crystalline free acid) Sterile Suspension.
To learn more about using Advocin to manage BRD, talk to your veterinarian or Zoetis representative.
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84 Cattlemen’s Roundup Friday, December 12, 2014
Avoiding the need for a tummy tuck in dairy cows
The majority of the health problems and asso-ciated veterinary costs for dairy cattle occur within the first 30 days of lactation. Management and feeding of the dry cow can have major implications on disease risk for dairy cows at calving. Adequate intakes of energy, fiber, protein, and certain minerals, especially calcium and those that affect calcium absorption and metabolism, are important in reduc-ing the risk for metabolic diseases. Tips on feeding fresh cows for improved performance and reducing the risks for hypocalcemia, ruminal acidosis, and ketosis have been provided in other articles in the nutrition series.
Another disorder that primarily occurs within the first two weeks after calving is a displaced abomasum (DA). The abomasum is one of the four compartments of the ruminant stomach. It is referred to as the “true stomach” and lies just inside the abdominal cavity on the underside of the animal. Three scenarios possibly contribute to the abomasum becoming displaced:
1. The cow loses about 10% to 12% of her body weight at calving due to the weight of the calf, placenta, and fluids. These losses in the abdominal cavity in con-junction with low dry matter intake (thus low rumen fill) allow for organs to shift.
2. The increase in concen-trate in the diet to meet the increased energy demands of lactation, in conjunction with rumen papillae associ-
ated with the cow’s recent mostly forage diet in the dry period, results in increased flow of volatile fatty acids to the abomasum, which can reduce its motility.
3. Hypocalcemia, whether clinical (often 5% of cows) or subclinical (possibility as high as 50% on average), reduces the tone of smooth muscle which helps to hold the abomasum in place. All of these scenarios that typically occur, likely not independent of one another, with fresh cows can contrib-ute to the risk for a DA.
Cows at greater risk for a DA after calving have low dry matter intake, high body condition scores, and high concentrations of blood non-esterified fatty acids prepartum. Rather low in-take experienced by all cows at calving increases the risk for a DA. However, when
cows calve during the heat and humidity of the summer, intake after calving is even lower than that of cows calv-ing in the fall and winter.
A DA in cows beyond 60 days in milk typically occurs due to these factors:
• low rumen pH caused by change in forage quality or particle size,
• changes in diet formu-lation with inadequate fiber,
• change in personnel responsible for the feed mixing, or
• malfunction of the feed mixer or feed scales.
Diagnosis of a DAAbout 80% to 90% of
the cases of a DA result when the abomasum moves upward on the left side of the animal. However, right displaced abomasum occurs and even a rare right-torsed
BY MAURICE L. EASTRIDGEDepartment of Animal Sciences, The Ohio State University
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abomasum can occur (the abomasum floats up on the right side and then twists). This latter case is very serious in that blood supply becomes severely restricted to the abomasum.
Common symptoms of a DA include reduced feed intake, reduced milk yield, reduced fecal excretion, and ketosis from lack of feed in-take, However, the definitive indication is the ping heard with a stethoscope when the side of the animal is thumped. When the aboma-sum displaces, it fills with gas, and the ping is from the thumping sounds bounc-ing back from the air-filled organ. Once the condition is diagnosed, a veterinarian can perform surgery or roll the animal to get the aboma-sum back in place.
Impact of a DAThe primary costs asso-
ciated with a DA are from the loss of milk production. In a University of Guelph study, cows with a DA produced about 700 lb less milk during the lactation in which the DA occurred than cows not having ex-perienced a DA. A Cornell University study revealed an even greater milk loss – about 1,200 lb less milk by cows with a DA from calving to 60 days after diagnosis of a DA.
Additional costs include the veterinary fees and other associated diseases (e.g., ketosis). In one study, 30% of the milk loss occurred prior to diagnosis of the disease; thus, early detection in very important. Both milk loss due to a DA and the risk of a cow being culled from the herd after experiencing a DA increase with lactation number. The goal is for less than a 4% incidence of a DA in a dairy herd.
SummaryDisplaced abomasum is
a common disease in dairy cattle, but with careful feeding and management, the incidence in a dairy herd can be kept below 5%. Feeding before calving to maintain a steady intake of a balanced diet to avoid a major decrease in intake and avoiding overconditioning greatly reduce the risk of a DA after calving. Providing a balanced diet (especially for fiber and energy) after calving and ample bunk and resting space will reduce the risk for a DA. When a DA occurs after 60 days in milk, it is best to review dietary fi-ber and particle size, proper operation of the feed mixer and scales, and feeding procedures by employees. Reducing the risk for a DA improves cow health and well-being, increases milk sold, and reduces veterinary costs.
(Continued from Previous Page) Employee training important
BROOKINGS — High employee turnover can lead to inconsistent animal pro-duction or potentially lower quality products, both meat and milk. “How is this pos-sible?” asks Heidi Carroll, SDSU Extension Livestock Stewardship Extension Associate.
“Is it because cattle get accustomed to routines and the people who perform tasks in their home envi-ronment? Familiarity does minimize stress, which pro-motes good health and pro-duction,” Carroll said. “The animals become comfortable
SDSU Extension
(Continued on Next Page)
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eating and gaining weight or in the parlor letting milk down. Keep in mind that cattle are able to identify individual handlers and remember positive and neg-ative handling experiences that impact milk production and subsequent behavior during handling.”
Therefore, Carroll said training new employees can cause inconsistence in job protocol performance, until tasks are mastered, which impacts the quality of the product produced.
“In times of high employ-ee turnover, dairy manag-ers may potentially see a drop in milk production or quality as cows adjust to new individuals. This is why employee training should be a priority to be able to main-tain consistent procedures for the cattle,” she said.
She references a 2014 study that showed handlers to be the top factor to estab-lish adequate cattle flow on
dairies, above facilities, ani-mals, and the environment. “In the same study, cows of producers who had par-ticipated in stockmanship training produced around 1,782 pounds more milk per lactation than cows of those who had not completed the training.
“Even though stockman-ship training had a positive impact, the major barriers to employee training are time limitations and lan-guage,” Carroll said. “Man-agers should be proactive to implement thorough employee training during times of employee turnover to minimize losses.”
Beef cattle operationsOn the other hand, in
beef cattle operations, signs of dropped production and increased illness or injuries from additional stress on cattle can show up when a new individual handles them differently due to employee turnover.
“According to findings in a 2012 study, training programs on best animal welfare practices and su-pervision of pre-slaughter management procedures lowered the percentage of carcasses downgraded due to severe bruising,” Carroll said. “However, a need to maintain constant follow-up of employee performance was apparent as suggested by a subsequent increase in downgraded carcasses six months following training.”
She added that similar decreases in carcass bruising were observed when best management practices were adopted during sorting and load out procedures such as improvements in handling, eliminating shouting and aggressive handling, such as hits and electric prodding.
Tips to achieve consistent high quality products:
• Establish an employee training program promoting animal well-being and low-stress handling methods. This could include quality assurance trainings (BQA or DACQA), stockmanship and handling demonstrations, or task-specific training (milk-ing, feeding, or vaccination protocols).
• Invest in employee per-formance reviews providing positive feedback on tasks done well and providing
re-training on tasks that do not meet managerial expectations. These do not need to be formal, just take advantage of daily moments to give praise, reinforce or correct performance demon-strating desired techniques.
• Utilize written stan-dard operating procedures (SOPs) and make them readily accessible to employ-ees so tasks are performed the same and can be easily referenced. Remember to provide SOPs in employees’ first language for clear un-derstanding of directions.
• Hold regular employee meetings with open commu-nication about the goals for the farm and animal produc-tivity. Connect each employ-ee’s role into how they will help achieve these goals.
• Celebrate achievement of goals with employees when they are met.
“Establishing ways to maintain consistency on your operation during employee turnover will help promote high quality milk and meat products for our food supply,” Carroll said.
For cattle managers working with Spanish-speak-ing employees, or those considering hiring Span-ish-speaking employees, fur-ther discussion on cultural considerations can be found at www.iGrow.org.
(Continued from Previous Page)
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Friday, December 12, 2014 Cattlemen’s Roundup 87
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88 Cattlemen’s Roundup Friday, December 12, 2014
AUCTION Livestock
Market Directory
SD-1875270R
Albany, MN
CentralLivestock34412 County Road 10Albany,MN 56307
8800/733/682883320/293/53113320/845/2720 FaxxGreg Supon,Manager
Lonnie Ritter Asst. Mgr/Order Buyer
Mobridge Livestock Market800-658-3598
Jason Anderberg 605-848-0038Casey Perman 605-848-3338Tigh Anderberg 605-845-4877Tom Anderberg 605-845-6200John Hoven 605-848-3507
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Belle Fourche, SD
Regular Cattle Sales Thursday8000-894-8684 • 605-892-2655
Fieldmen:Brett Louglin - 605-210-0615Bill Johnson - 605-866-4813Bob Anderson - 605-641-1042Randy Curtis - 605-892-5694Craig Deveraux - 307-746-5690
Gary Krell - 307-746-8051Mike Greenough - 307-620-2597
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Friday, December 12, 2014 Cattlemen’s Roundup 89
Are we approaching a post-antibiotic era?
The introduction to a recent World Health Orga-nization (WHO) report asks people to imagine a “post-an-tibiotic era,” in which com-mon infections and minor injuries begin killing people because the antibiotics used to treat them no longer work.
“Far from being an apocalyptic fantasy, [this] is instead a very real possibility for the 21st century,” the report continues.
The reason for this dire warning: Although antibi-otics have saved millions of lives since their introduction 70 years ago, harmful bacte-ria are evolving resistance to antibiotic drugs faster than drug companies are developing new classes of
antibiotics.Experts fear if antibiotic
resistance proceeds at its current rate, in the words of Dr. Margaret Chan, direc-tor-general of WHO, it will bring “an end to modern medicine as we know it.”
ResistanceOver 3.5 billion years of
evolution, bacteria devel-oped a suite of strategies allowing them to survive the assaults of antibiotics aimed at them from within their hostile microworld. These include:
1. Production of antibi-otics for their own defense and enzymes that destroy or deactivate antibiotics.
2. Heritable mutations, genetic alterations that make bacteria resist the action of antimicrobial agents.
3. Non-chromosomal DNA
called “plasmids,” which can replicate independently and transfer directly into other bacteria, a process called horizontal gene transfer. Many scientists suspect that horizontal gene transfer is the dominant way bacteria transmit antibiotic resistance to each other.
The risk of resistance increases each time a species of bacteria is exposed to an antibiotic agent. The wide-spread use of antibacterial drugs in humans, food and companion animals, and to a lesser extent, even plants, combines with the phenom-enon of global travel that spreads resistant microbes around the world to explain why resistance is growing so alarmingly.
The current situationThe federal Centers for
Disease Control and Preven-tion (CDC) estimates con-servatively that at least two million Americans become infected with antibiotic-re-sistant bacteria each year, 23,000 die, and many more die of complications related to antibiotic resistance.
Experts estimate the annual economic impacts of antibiotic-resistant infections (P. 11) rise as high as $20 billion in direct healthcare costs, and $35 billion in social costs (e.g., lost wages, death of family earners).
Observers say market forces alone won’t motivate pharmaceutical companies to invest in developing new antibiotic drugs, because the return on investment is so low. Drug companies prefer to put their research dollars into drugs that treat chronic
BY PEG BOYLESeXtension, UNH Cooperative Exten-sion (emerita), [email protected]
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90 Cattlemen’s Roundup Friday, December 12, 2014
illnesses, as well as classes of so-called “lifestyle” drugs.
Animal agricultureAround the same time
antibiotics were introduced, American agriculture began industrializing to realize economies of scale.
Small-scale, diversified farms increased in size, and the larger livestock opera-tions began specializing in a single species, often in confined settings for at least some portion of their lives.
Large-scale producers began adding low doses of various antibiotics to the feed of healthy animals to prevent diseases that could emerge and spread rapidly in concentrated operations.
Because producers found that the antibiotics also promoted faster growth and more efficient use of feed, the practice, which began in large-scale poultry opera-
tions, spread to almost all food-animal species.
Of the roughly 10 billion food animals produced each year in the U.S., many have received growth-promoting antibiotics for at least some portion of their lives.
As far back as the early 1970s, public-health ad-vocates began expressing concern about the potential contribution of growth-pro-moting antibiotics in food animals to antibiotic resis-tance, suggesting that food animals and their environ-ments serve as reservoirs of antibiotic-resistant microbes, accelerating the pace of re-sistance. They began calling for a ban on the practice, engendering a protracted debate among experts on all sides of the issue.
From an abundance of caution, the European Union banned growth-promoting antibiotics from animal feed in 2006.
No straight line from animals to humans
But veterinarians like Dr. Russ Daly, a South Dakota State University extension veterinarian and South Dakota State Public Health Veterinarian, note that science has yet to establish a direct, causal connection between the veterinary use of antibiotics and resistance in human diseases.
Daly says the widely cited figure that 80 percent of all antibiotics produced are used in food animals needs some context. “Perhaps 30 percent of the growth-pro-moting antimicrobials aren’t even used in human medi-cine,” he says.
“Plus livestock producers and vets have long felt that [the food-animal industry] might not be the main con-tributor to the problem, Daly continues. “For example, of all the growth-promoting antimicrobials used in swine, only about 13 percent are deemed critically important for human health.”
A 2010 Purdue Extension bulletin examining data from Denmark, which banned growth-promoting antibiot-ics in food animals in 1999, underscores that point of view:
“While resistance in bacteria from livestock decreased, resistance in bac-teria from humans remained the same or increased in almost every type of bacteria tested. In many cases, the increase in resistance to spe-cific drugs was likely caused by increased use of that drug in human medicine.
“Therefore, it appears that antimicrobial resistance patterns in bacteria from animals and humans are not closely related. That is, antimicrobial resistance pat-terns in livestock result from antimicrobial use patterns in veterinary medicine and antimicrobial resistance pat-terns in humans result from antimicrobial use patterns in human medicine.”
The housefly enters the equation
Dr. Ludek Zurek, a pro-fessor of microbial ecology at Kansas State University, specializes in research on the microbial contents of insect guts, particularly antibiot-ic-resistant bacteria that can infect humans.
Zurek’s recently published paper, “Insects represent a link between food ani-mal farms and the urban environment for antibiotic resistance traits,” reviews studies dating back to 1990 that demonstrate common insects’ potential to acquire and pass along drug-resistant bacteria from farm to fork.
Zurek concludes that common insects such as houseflies, which develop in most forms of organic matter, including feces, and which move among farms and manure storage facili-ties, wastewater treatment plants, and nearby hospitals, restaurants, and homes, “likely represent a direct and important link between animal farms and urban communities for antibiotic resistance traits.”
He adds, “However, insects also represent a link in intraurban spread of resistance in cities far removed from any livestock operations.”
Flies don’t just mechani-cally transfer bacteria from one food source to another, Zurek notes. The bacteria they ingest during feeding not only proliferate wildly, but readily share resistance traits within the insects’ foregut.
“Flies are more than just a nuisance,” Zurek says. “They aren’t taken seriously enough among food safety people.” When a fly lands on your freshly cooked ham-burger, “It delivers from both ends,” he says. “Wherever they land and begin feeding they regurgitate the contents of their crop [foregut] and defecate from the other end.”
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CENTRAL LIVESTOCKASSOCIATION
ALBANY MARKETMonday – Thursday: 7 a.m. – 10 a.m.
Hog & Sheep Private Treaty SalesTuesday: 10:30 a.m.
Fed Cattle • Slaughter Cows & BullsThursday: 10:30 a.m.
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Special Feeder SalesThe Second Wednesday of Each Month
Greg Supan: Manager • 320-249-5311Lonnie Ritter: Asst. Manager/Order Buyer • 320-293-5311
Albany Market • 34412 County Road 10, Albany, MN 56307Phone 1-800-733-6828 • Fax: 320-845-2720 • www.centrallivestock.com
Friday, December 12, 2014 Cattlemen’s Roundup 91
“The practice of feeding growth-promoting anti-biotics to food animals is short-sighted,” Zurek says, “a matter of short-term gain, not looking down the road.” He even suggests that we may need to add the cost of antibiotic resistance to the costs of our food long-term.
Zurek acknowledges his paper “is no smoking gun, and offers no silver bul-let” to solve the antibiotic resistance threat. He advises employing rigorous pre- and post-harvest insect control and “adopting prudent use of antibiotics in the food-animal industry.”
“[Zurek’s] work is valu-able,” says South Dakota veterinarian Russ Daly. “But what we’re not seeing is that direct line from food-animal antibiotics to resistance in humans. When I see people making that leap, I get a bit distressed.”
“What I’ve seen [in all the published literature on the topic] is disjointed chunks attempting to link antibiotics in animals to increased resis-tance in humans, but it’s still disjointed chunks. Give me a paper with hard evidence that ties them all together, if that’s even possible.”
FDA sets guidelines for removing antibiotics from animal feed
Last December, the feder-al Food and Drug Adminis-tration issued a “guidance” document outlining its planned phase-out of the use of antibiotics import-ant in human medicine as growth-promoters in live-stock.
The ruling won’t affect antibiotics used to treat sick animals or to control or pre-vent an outbreak of disease. Farmers will still be able to get the feed additives, but only under the oversight of a
veterinarian with whom they have an ongoing relation-ship.
Daly of South Dakota lays out the changes in a news bulletin, Using Feed-Grade Antibiotics for Livestock: Changes are coming:
“This means that before a producer can obtain [a listed drug for use as a feed addi-tive] he will have to obtain a [Veterinary Feed directive] VFD form filled out by his veterinarian. The form will specify the farm and animals to be treated, the duration of treatment, and which drug is to be used. The feed mill or distributor would need to have a properly completed VFD before they could sup-ply the feed.”
“Yes, the guidelines are voluntary,” Daly says, “but I have confidence the industry will comply. Twenty-five of 26 pharmaceutical compa-nies have already told FDA they will remove growth
promotion from their labels [as acceptable uses of the antibiotics].
“The drug companies have three years to make the label changes, so livestock producers currently using an-tibiotics for growth promo-tion will have time to adjust, depending on how quickly the companies switch over.
“There are many growth-promoting antibiot-ics not on the FDA’s list of drugs medically important for humans,” Daly says. “Plus, in the last 20 years, changes in hog management have created such improve-ments in health and produc-tivity that many farms are no longer seeing the benefits of (growth-promoting) feed additives, so they’re not using them.”
Dr. Larry Hollis, the extension beef veterinarian for Kansas State University, also predicts the voluntary
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92 Cattlemen’s Roundup Friday, December 12, 2014
program will succeed.“Virtually all ani-
mal-health pharmaceutical manufacturers are small branches of the same com-panies that provide drugs for human use,” he says. “They will play by FDA rules, because [the agency] has tremendous leverage and the drug companies won’t jeopardize their ‘human busi-ness’ by doing something stupid.
“And when the drug company pulls [growth-pro-moting] claims off the label, producers will have to com-ply. It’ll be illegal not to,” Hollis says.
“If you want to see where resistance is occurring in an-imals, look across the pond to China. They play by a whole different set of rules,” he says.
“Whenever a new an-tibiotic is developed, the Chinese see the patent
filings, figure out how to make it, and without any regulatory structure, it goes straight to animals. By the time it’s available here, the antibiotic is already showing resistance.”
Hollis suggests, “Most antibiotic transfer is coming from human side of the equa-tion. Bacteria don’t care who the host is. Anything that’s mobile has the potential to move resistant bacteria from one place to another. With the speed and intensity of global travel, [bacteria] come in with the people.”
To underscore his point, consider that although 40 years of research shows antibiotics aren’t effective for bronchitis (and 15 years since CDC began urging phy-sicians not to prescribe them for the condition), 71 per-cent of bronchitis patients are still receiving them.
Justin Waggoner, an extension beef specialist for
K-State works with produc-ers at every scale of opera-tion.
“Right now, we’re still early in the process; people are still learning.” he says of the response to the FDA directive. In meetings with producers, Waggoner says, “There’s not a lot of opposi-tion to it. However, you can definitely detect an under-tone of, ‘Oh, boy, here come more regulations.’
“The initial response is typically, ‘What exactly is gonna change? And how will it impact me?’ he says. “One question routinely does comes up: Because a veteri-narian is involved, will there be a fee involved?”
Industry will adaptDaly says, “We’ve learned
so much about raising pigs in the past 20 years that has contributed improvements in both health and productivity. Based on my conversations
with hog farmers, many just aren’t seeing the benefits of growth-promoting anti-biotics--the [weight] gains from antimicrobials aren’t as dramatic as they once were, so they’ve stopped using them.”
“We’re going to take a look at management proto-cols, nutrition, genetics and other methods of growth promotion,” he says. “If we phase out growth promoting antibiotics, I don’t think it’s going to affect their bottom line.”
Hollis offers a similar pre-diction. “As long as we don’t have to give up the therapeu-tic uses of antibiotics, the removal of growth-promot-ing antibiotics from feed will have zero impact on the beef industry. With improvements in management, breeding, nutrition, and management, the industry will adapt.”
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Jan 28-29 • Sioux Empire Farm Show
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Feb 10-11 • Watertown Winter Farm Show
Basel Red AngusDallis Basel16079Minnehaha Pl.Union Center, Sd 57787605-985-5205
Bieber Red Angus RanchCraig, Peggy, Bieber11450 353Rd AveLeola, Sd 57456605-439-3628
Campbell Red AngusRobert, Kara &Harold Campbell5096 95Th Street SwMcintosh, Sd 57641701-422-3726
Caraway Red Angus RanchJon & Blair Caraway1525 200Th StreetLake Benton,Mn 56149507-530-3166
Carruthers Brothers RanchBarb Carruthers & Boys47165 253Rd StreetBaltic, Sd 57003605-496-4277
Gall Family Red AngusCorey Gall44611 283Rd StreetHurley, Sd 57036605-770-8090
Double RL Red AngusRichard Leiseth8060 20th Ave. SEMaynard, MN 56260320-312-8664
Eichacker Red AngusSteve & Cathy Eichacker25466 445th Ave.Salem, SD 57456605-425-2391
Erdmann Angus RanchAlbert, Daniel & Joseph Erdmann1233 Church StreetLeola, SD 57456605-439-3321
Gill Red AngusLarry and Brent GillHC 64 Box 146Timber Lake, SD 57656605-865-3288
Grussing Red AngusMark Grussing35331 264Th StPlatte, Sd 57369605-778-6666
Hanson’s Red AngusPamela HansonPo Box 16Northville, Sd 57465605-216-3528
Mike, Ann, & Sydney Hein932 State StreetOsage, Ia 50461402-727-7423
Mitchell Red AngusBrandon and BelindaMitchell23950 South Creek RoadKadoka, SD 57543605-837-2794
KoedamCattle CompanySteve & Christina Kodam10168 Ahlers Ave.Edgerton, MN 56128507-920-7594
Lars Hanson Red AngusLars Hanson40436 127th St.Groton, SD 57445605-380-0886
Lazy J Bar Ranch Red AngusJohn & Stephanie Jung Family36813 131 St.Mina, Sd 57462605-228-1743
Ludens Family RedsGordon Ludens28716 459th AvenueViborg, SD 57070605-661-6470
M&MAcresMark &Mary Kay Lacek3580 County Road105Canby, Mn 56220507-223-7867
Homestake Ranch, IncKeith & Amanda Larsen3833 Us Hwy 14Wolsey, Sd 57384605-350-5517
S Bar U RanchCal E & Tracy Swanson26233Main StHamill, Sd 57534605-842-3876
Leddy Red AngusGene &Wade Leddy47296 153Rd StreetTwin Brooks , Sd 57269605-432-5182 Or 432-9054
Schuler Cattle CompanyToni & Staci Schuler10080 5th Ave. SEGranite Falls, MN 56241320-894-5318
Shady Hill FarmDustinMartin10252 480Th AvenueBlue Earth, Mn 56103712-229-2410
ShaggyMeadows Red AngusJared &Michelle Dick27634 443rd AveMarion, SD 57403605-261-6143
Namken Red AngusJared & Lacey Namken45536 189Th StreetLake Norden, Sd 57248605-881-3845
Odden And SonsDeanOdden20280 Green Valley RoadRee Heights, Sd 57371605-943-5601
BrokenHeart RanchGary & Chad PedersonHc 83, Box 9Firesteel, Sd 57633605-865-3190
Double S FarmNeil Or Greg Stuefen226 Cty Rd 40Arco, Mn 56113507-223-5912
Valnes Ranch Red AngusEmit & Jayme Valnes12310 447Th AvenueEden, Sd 57232605-228-8857
Thomas RanchTroy Veabea and Calley Thomas18441 Capri PlaceHarold, SD 57536605-973-2448
Twin Rivers Red AngusThor Nelson533 North 6th StreetMontevideo, MN 56265320-226-1758
Weber Red AngusJasonWeber39120 292nd St.Wagner, SD 57380605-384-3300
Weidenbach RanchLawrenceWeidenbach18035 331 AvenueHighmore, Sd 57345605-852-2264
SouthDakotaCharolais BreedersAssociation
Visit us online atwww.sdcharolais.com
UpcomingCharolais Events:
January 29 - Show8:00Sale 12:30 pmSioux Empire Farm Show
February 3 - Show10:00Sale 1:00BlackHills Stock Show
February 11 - Show9:00Sale 12:30WatertownWinter Farm Show
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TravisBoldt20896 451st Ave.Arlington, SD 57212605-203-0554
Driscoll CattleCo.21359 427th Ave.DeSmet, SD 57231605/[email protected]
Eggleston’sCharolaisDennis &Marilyn Eggleston37964 213th St.Wessington, SD 57381
Eggleston’sCharolaisRanchJamie Eggleston21130 379ndAveWessington, SD 57381605/[email protected]
GeyerCattleCompanySam, Connie andDoug522Hwy 25 SDe Smet, SD 57231605/854-3400605/860-2081
Dan&KatherineHalerStewart Charolais44438 202nd St.Lake Preston, SD 57249507-215-1470
HansenFarmsBJ &HarleyHansen39804 163rd St.Turton, SD 57477605/635-6346
CrowTimberCharolaisMarvin, Anita & Paul Hanson17053 482ndAveRevillo, SD 57259-5207605/623-4257
VedveiCharolaisRanchDJ and Corrie Holt20436 442ndAveLake Preston, SD 57249605-860-0110
JensenCharolaisScott &Kim Jensen20379 441st AveLake Preston, SD 57249605/[email protected].
JohnsonCharolaisShane &Angela Johnson20570 466th Ave.Bruce, SD 57220605/627-5239
Kevin&SandyKellogg19640 367th AveSt. Lawrence, SD 57373605/833-3449Cell 605/870-2084
GregKeppen402 Ashley Ave.Volda, SD 57071605-690-0680
SteveKeppen405 Samara Ave.Volga, SD 57071605/627-5229
LeddyCattleDonnie &Krecia Leddy15635 472ndAveStockholm, SD 57264-6107605/676-2592
Lindskov-ThielRanchLes &Marcia LindskovBrent &NancyThielPOBox 37Isabel, SD 57633605/[email protected]
OddenCharolaisRanchBrian, Janna, Adam, Ethanie &AndrewOdden32358 301st StColome, SD 57528605/842-1185
ChrisOdden20291GreenValley RoadReeHeights, SD 57371
Dean&SusiOdden20280GreenValley RoadReeHeights, SD 57371605/[email protected]
Jerod&MelanieOlsonJ&MRanch20629 443rd AveLake Preston, SD 57249605/860-2080
PluckerCharolaisJoseph Plucker45678 275th St.Parker, SD 57053Joseph 605/750-0478Kay 605/750-0235
PrairieValley FarmInc.Clarence E.Mason Family36324 SDHwy 44Platte, SD 57369605/337-3545
RBMLivestockMike, Barb, Ryan or KimBergh44115 - 115th StFlorence, SD 57235
ReichRanchTim&Ree Reich1007 KingsburyBelle Fourche, SD 57717605/892-4366
MatthewSandmeier13123 322ndAve.Bowdle, SD 57428
SandmeierCharolaisCalvin Sandmeier13123 322ndAve.Bowdle, SD 57428605/285-6179
SandmeierCharolaisGary SandmeierBox 125Bowdle, SD 57428605/285-6766
SteffensenCharolaisTravis Steffensen21269USHwy 81Arlington, SD 57212605/983-5497
Kyle&Denae Stern16782 432ndAveGarden City, SD 57236605/532-4222
StewartCharolaisJeff & Linda Stewart44399 207th St.Lake Preston, SD 57249605/847-4836
StoutCharolaisJerry Stout21804 SDHwy 248Kadoka, SD 57543605/[email protected]
ThomasRanchTroy &VeabeaThomas18439 Capri RoadHarrold, SD 57536-6400605/973-2417(Harry)605/973-2448(Troy)
LeeVanDerWerff38737 280th St.Armour, SD 57313605/724-2274
BrooksVanDyke48603 213th St.Elkton, SD 57026605/542-8501VanLithCharolaisAndrewVan Lith15136 481st AveMilbank, SD 57252605/237-2491
VedveiCharolaisRanchAlan&DebVedvei44213 204th St.Lake Preston, SD 57249605/[email protected]
WeberCharolaisRanch39120 292nd St.Wagner, SD 57380605/384-3300 or 384-3829
WellsCharolaisJasonWells15425 419th Ave.Conde, SD 57434605/[email protected]
WellsCharolaisRichard orHeatherWells15446 419th Ave.Conde, SD 57434605/784-3409
WienkCharolaisArnold &CarolWienk44210 205th St.Lake Preston, SD 57249605/847-4350
WienkCharolaisJeff & Jody Eschenbaum20585 441st AveLake Preston, SD 57249605/847-4880
WienkCharolaisSterling Eschenbaum44204 205th St.Lake Preston, SD 57249605/203-0137
WienkCharolaisTy Eschenbaum1229 3rd St.Brookings, SD 57006605/203-1082
ZemlickaCharolaisRanch46156 160th St.Watertown, SD 57201605/882-2004Cell 605/880-4007
RafterRSCattleReid & Stacy Stranberg13698Harding RdBuffalo, SD 57720320/212-9211
Contact oneof theseCharolaisBreeders
SD-1866262R