CBB members reject ’separation’ recommendation

At the Cattle Industry Summer Conference in Denver, members of the Cattlemen’s Beef Board have voted 62-30 to disapprove of the recommendation from the Cattlemen’s Beef Board Executive Committee that the Federation of State Beef Councils be separated from the National Cattlemen’s Beef Association.

That decision followed earlier action by directors of the Federation of State Beef Councils, who overwhelmingly passed (59-3) a “straw poll” resolution that reads as follows:

“…the Federation should operate in a more independent structure while maintaining the synergies and efficiencies of the current relationship with the National Cattlemen’s Beef Association—and strongly opposes the recent actions of the Cattlemen’s Beef Board Executive Committee, including the separation recommendation.”

The directors then passed a separate resolution calling on the chairman and vice-chairman of the Federation to form a committee to develop recommendations on how to build “a more independent structure” for the Federation. Both resolutions will be officially considered by Federation directors at their Saturday business meeting.

EPA stop-sell orders on tainted herbicide

Several companies have been ordered to stop selling and distributing herbicide because of a batch the EPA believes is responsible for damaging eight-thousand acres of soybeans in northeast Kansas. Samples indicated the herbicide – Warthog 2 EC – was tainted with another herbicide, Dicamba, which is used to combat broadleaf weeds and can be harmful to legumes, including soybeans.

According to an EPA news release, EPA Region Seven issued the stop sale-use-or-removal-orders to HPI Products of St. Joseph, Missouri ; Pony Express Warehouse in St. Joseph, which received the product from HPI; and to the pesticide’s registrant, J. Oliver Products of Hernando, Mississippi.

During the week of July 12th, the Kansas Department of Agriculture responded to “multiple complaints” from farmers near Beattie, Kansas who said their soybean crops had been damaged after an application of Warthog 2 EC that was purchased from Frontier Chemical, a dealership in Beattie.

On July 20th, the Missouri Department of Agriculture launched an investigation of HPI Products in Missouri which showed stocks of Warthog 2 EC tainted with the other herbicide, Dicamba.

Kansas and Mississippi Agriculture Departments have placed state stop-sale-distribution orders on Frontier Chemical and J. Oliver products.

Further, the EPA says it has “encouraged J. Oliver Products to consider issuing a broad recall of any quantities of the product that may have already been distributed.”

Farming a little more profitable in July

The Preliminary Index of Prices Received by Farmers in July was 3.6 percent higher than June. The National Ag Statistics Service says the Crop Index increased 4.1 percent and the Livestock Index was 1.6 percent higher than a month ago. Producers were paid more for corn, wheat, milk and lettuce, less for onions, strawberries, grapes and cantaloupes.

In the Crop Index: the all wheat price averaged $4.74 per bushel up 57 cents from June; corn averaged $3.55 up 14 cents from last month; soybeans increased 34 cents to $9.79 per bushel; sorghum grain 53 cents higher at $5.90 per cwt while the all hay price slipped $2.00 to $112 per ton.

In the Livestock Index: the July hog price averaged $57.80 per cwt, down 50 cents from June; beef increased 30 cents to average $90.60 per cwt; all milk price up 50 cents to $16.00 per cwt; broilers were unchanged at 51 cents per pound while turkeys increased 2.7 cents to 64.4 per pound.

The Index of Prices Paid in July was unchanged from June. Higher prices for feeder cattle, concentrates, feed grains and other services were offset by lower prices for diesel, LP gas, fertilizer, milk cows and feeder pigs.

Compared to a year ago, the prices received by farmers are 10 percent higher while the prices paid are 2.2 percent above July of 2009.

Read the full NASS report here

Cattlemen concerned about cow numbers

At the Cattle Industry Summer Conference in Denver, cattlemen are discussing how to rebuild the nation’s cow herd.

Beef cow numbers in the U.S. have fallen to their lowest level in more than 50 years. Montana rancher Bill Donald, president elect of NCBA, says a combination of factors has led to the decline.

“Every time we have gotten a signal, a market signal, to rebuild we have had a major drought in some portion of the country and so our cow herds just got shifted around from one region to another rather than expanding like we would have liked and what would have been good for the industry,” said Donald.

Donald says rising land values are also a factor.

“The value of land has gotten high and a lot of people have sold their ranches to people that aren’t necessarily ranchers,” said Donald. “While they might lease out a portion of it or somewhat, their numbers are down from that because there are less resources to utilize.”

NCBA responds to CBB allegations

The National Cattlemen’s Beef Association has responded to allegations by the Cattlemen’s Beef Board that NCBA may have breached the financial firewall between its policy and checkoff divisions.

During a Thursday morning news conference, NCBA’s CEO Forrest Roberts said his organization goes to great lengths to comply with the firewall.

“NCBA, whether it is a member of our leadership or a member of our staff, would never, never intentionally breach the financial firewall,” said Roberts.

Roberts says just because the beef board’s accountant was unable to determine compliance on select items does not mean that NCBA was not compliant. He says NCBA will work with the beef board and the ag marketing service to understand the written guidelines that are currently being developed.

NCBA President Steve Foglesong says where mistakes were made, corrections will be made. “We will resolve every one of these questions. Where we need to do something, where we need to balance the books we will do that. That’s exactly the way we have always done it before, for the last 20 years, even before the NCBA, back in the NCA days,” he says.” “Everybody just got together, sat down, and wrote the books and made it right.”

Foglesong says audits are nothing new, although this is the first time one’s been made public.

“They are tools to make the check-off and firewall stronger. And every time you do one, you have some lessons that you learn how you can make it better. We made changes from the last one that helped to make it and we will continue to do that. It’s a work in progress and it always will be,” says Foglesong.

NCBA’s CEO Forrest Roberts was asked by a reporter if NCBA is suspicious of the release of the audit details and timing.

“That is a question you should be asking the Cattlemen’s Beef Board,” says Roberts.  “The questions that I want us to focus on are ‘How are we going to make sure that we address any issues within this compliance review?’”

Julie Harker contributed to this report

AUDIO: Steve Foglesong, Forrest Roberts, Scott George (47 min. MP3)

Illinois FB names Farm Policy Task Force

Illinois Farm Bureau President Phil Nelson has appointed a 36-member Farm Policy Task Force that he says will have the daunting task of looking at the current Farm Bill and then giving Illinois Farm Bureau direction when it comes to writing the 2012 Farm Bill.

“And I think one is going to be even more challenging from the standpoint of the economic environment we’re going to write this Farm Bill in,” said Nelson. “It’s very important agriculture gets its act together, make priorities, as to what they feel is important, because we’re probably not going to have the dollars to do everything we did in the last Farm Bill.”

Nelson says the Task Force members, appointed from across Illinois, will be meeting over the next year putting their recommendations together.

AUDIO: Phil Nelson, Pres. Illinois Farm Bureau (1:55 MP3)

Federal judge halts some parts of Arizona immigration law

A federal judge has issued an injunction blocking some elements of the Arizona Immigration Law set to take effect Thursday. U.S. District Court Judge Susan Bolton put a “hold” on the section which allows police officers to ask for immigration or citizenship papers from anyone suspected of being in the country illegally. That provision drew charges of racial profiling. The Judge also delayed a requirement that immigrants must carry their papers at all times and delayed a provision making it illegal for undocumented workers to apply for work in Arizona. Judge Bolton says those provisions are pre-empted by federal law.

The State of Arizona is expected to appeal the ruling, most expect the case to end up in the U.S. Supreme Court.

Many in agriculture are keeping a close eye on this situation as immigrant labor plays a large role in everything from vegetable production to meat packing and dairy.

Ethanol criticizes Reid’s energy bill

U.S. Senate leader Harry Reid reportedly has introduced a pared down energy bill that takes no action on climate change. And, the ethanol industry is let down for the measure’s lack of support of ethanol.

In a statement from the coalition of ethanol groups, Growth Energy, CEO Tom Buis says they’ll work with Congress to try and get elements of their “Fueling Freedom Plan” into the bill – encouraging investment in ethanol infrastructure. Buis says ethanol is here now and is “America’s fuel.”

In a statement – the nation’s largest ethanol producer, POET, said by leaving out Growth Energy’s proposal, “Senate leadership missed an opportunity to significantly lessen America’s dependence on foreign oil.”

USA Today reports, that among other things, Reid’s energy bill includes provisions to encourage a retrofit of the nation’s heavy vehicle fleet to use natural gas.

It does not include a renewable electricity standard.

And, it would hold financially responsible those involved in oil spills.

USDA’s OIG clears Soybean Checkoff

The USDA Office of the Inspector General (OIG) has cleared the United Soybean Board (USB) of allegations of mismanagement by the American Soybean Association (ASA).  USB Chairman Phil Bradshaw tells Brownfield they were expecting to be cleared.

“We thought we were doing it right, we’ve been vindicated. We were doing it right, but you can always do better, any business, any organization always has evaluations going on. We have other evaluations, so, this was just another one that says – you know – ‘you’re movin’ in the right direction.’”

ASA President Rob Joslin says his organization is pleased the OIG found the Soybean Check-off is operating as it should.

He says the ASA Board asked for the investigation in good faith based on the allegations and concerns it received.

Joslin says, “We acted in the best interest of soybean farmers everywhere. We are pleased that we can put this issue behind us.”

Joslin says substantial management and board changes were made at the US Soybean Export Council after ASA asked for the OIC investigation last year. Further, Joslin says “as a result of these significant leadership and management changes we believe soybean farmer investments are being better served.”

AUDIO: Philip Bradshaw (7 min. MP3)

Beef Board finds “improper charges” by NCBA

Calling the findings “extremely troubling”, the Cattlemen’s Beef Board (CBB) says it has found many expenses that were either improperly charged to the checkoff or insufficiently documented by the National Cattlemen’s Beef Association (NCBA). 

Beef Board CEO Tom Ramey says one of the discrepancies involved travel expenses for the spouses of staff and volunteer leadership of NCBA.

”There are a couple things in there that really stand out,” Ramey says, “One is charging the checkoff for spousal travel to domestic and international locations—some of those kinds of things that producers know they don’t—or, at least, I know that producers don’t want us to spend their checkoff dollars on those kinds of things.”

Other discrepancies include travel performed for the purpose of initiating an NCBA-member insurance program and time spent by employees in meetings related to non-checkoff revenue development. The findings come from a routine compliance review of NCBA by an independent CPA firm.  CBB says all checkoff contractors and subcontractors are subject to compliance reviews and audits.

Relations between the CBB and NCBA were already strained, as the two organizations have been at odds over NCBA’s proposed governance structure.  Ramey admits this new report will probably not help that relationship.

“This could put further strain on that,” he says, “but what I hope we can do is get through this, decide what’s best for the industry, decide what’s best for the checkoff, understand what’s happening here with these expenditures, get things remedied—and find a way to make it work better and strengthen our relationship in the future.”

NCBA has issued a statement saying it is reviewing the CBB report and will issue a response later today. 

AUDIO: Tom Ramey (5 min MP3)

Next Page »