LivestockDigest

LivestockJANUARY 15, 2013 • www. aaalivestock . com Volume 55 • No. 1

“The greatest homage we can pay to truth is to use it.”

– JAMES RUSSELL LOWELL

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DigestRiding Herd

by Lee Pitts

When Ken Ivoryaddresses a crowdon his favorite sub-ject, federal landownership in the

West, he asks four simple ques-tions. The “Four Why’s”, he callsthem. 1) Why is it that over 50 per-

cent of the land in the West isowned by the federal govern-ment while typically 4 percent ofland in the East is? 2) Why did some western

states succeed in securing bene-fits to their public lands prom-ised at statehood, while othershave not?3) Why does the imbalance in

land ownership to the West andEast of what Ivory calls the Fed-eral Fault Line, matter to west-ern states and to the nation?4) Why don’t we do some-

thing about the fact that our fed-eral government hasn’t honoredthe same promise it made andkept with states east of Col-orado?Good questions, don’t you

think? To that list we would addone of our own: Why is KenIvory about the only politicianasking such questions?

A One-Man MissionKen Ivory is a Utah native

who has served in the UtahHouse of Representatives since2010. He is an attorney, media-

to Ivory, “Utah is perpetually lastin the nation in per pupil fund-ing. At nearly $3,700 below thenational average, it would take$2.2 Billion a year to bringUtah’s 600,000 K-12 studentsjust up to the national average.”And Ivory knows right where toplace the blame: our federal gov-ernment.“Utah loses hundreds of mil-

lions of dollars because the fed-

eral government denies accessto, or blocks consolidation of,Utah’s School Trust Lands,” saysIvory. Utah, to a large extent,depends on federal funds to edu-cate her kids because almost twothirds of the land in Utah isuntaxable federal land. In lieu ofthe taxes they’d be getting ifUtah could tax her ground, thefederal government sends thestate $5.2 billion. That $5.2 bil-lion represents more than 30percent of Utah’s $13 billionannual budget, making them,basically, a ward of the state. Utah wants desperately to

better educate her children andgrow her economy but the feder-al government is standing direct-ly in her way. There are trillionsof dollars trapped in, and under,western lands but the feds won’tlet those in the West responsiblyaccess it. Jaws drop when Ivorytells a crowd that “there is moreoil and gas trapped under just

tor and a teacher who spentthree years in Japan teachingEnglish. Maybe this explainswhy, for a politician, he is so easyto understand. Utah is a state that does

things right. From the no-GPS-needed way they name and layout their streets to the commonsense of her people, Utah runs atight ship. That’s why it’s so sur-prising to learn that, according

The Cause of Our Lives“If you’re ridin’ ahead of

the herd, take a look backevery now and then to make sure it’s

still there.”

continued on page five

www.LeePittsbooks.com

The Work Of Fools

How did this GrandExperiment we callAmerica end upbeing run by a Con-

gress of jerks and an armyof incompetent bureaucratswith no common sense orreal world experience? Howdid the greatest Democracythe world has ever knownend up being dictated to byspecial interest groups andtheir lobbyists who routine-ly represent less than 5 per-cent of all Americans? Sincewhen did the AmericanWay come to be defined asunemployment benefits,political action committeesand a “conservation” strate-gy that can best be definedas “lock it up and let itburn?”For those of you who

think the solution to ourdilemma is more govern-ment, we take you now to apress conference in Wash-ington, DC twenty yearsfrom now. Amidst a nation-wide food shortage, thework of fools is beingdefended the Secretary ofthe F F and D. No, thosearen’t the grades youryoungest son brought homeon his last report card. Itstands for the Food, Fueland Fish Department, theconsortium of bureaucrats,greenies, animal rightsgroups, unions and govern-ment bureaucrats who, likea circular firing squad, taketurns blaming each otherfor their failed policies. “Mr. Secretary, why are

there no eggs on the shelvesof grocery stores?”“I can explain every-

thing. After we outlawedcages for laying hens andturned them loose on openrange they kept hiding theireggs. We assigned a taskforce to the problem andthey looked high and lowbut they couldn’t find anyeggs. Then an observantstaffer discovered the henswere leaving their sanctuaryby flying over the one foottall fences. It turns out thatchickens are actually birds.Who knew?”“Mr. Secretary, why is

there no milk, no dairyproducts of any kind?”“I sympathize, believe

continued on page two

ROBERT GORDON, The Heritage Foundation

Grizzly bears, sea turtles, and sandhillcranes — these kinds of critters most like-ly come to mind when endangeredspecies are mentioned.

In the endangered species business they areknown as “charismatic megafauna” and are oftenplastered across fundraising appeals. However,as the federal list of regulated species swells,fewer of its denizens are generally awe inspiring.Indeed, today, federally regulated inverte-

brates and plants now outnumber the total num-ber of listed mammals, birds, reptiles, amphib-ians, and fish combined — and, the latter oftenfail to clear the majestic hurdle themselves.For those of us fascinated by creepy crawlies,

perhaps a beetle is just as interesting as a bearor bird. For others, however, this may seemmore like the disingenuous “bait and switch”sales tactic that the Federal Trade Commissionsays is “to switch consumers from buying theadvertised merchandise, in order to sell some-thing else, usually at a higher price or on a basismore advantageous to the advertiser.”Appealing or not, these critters can have such

adverse consequences that the Texas Comptrol-ler maintains a website so that Texans can see

Finally, the Right Mascot for Radical Environmentalists

what the next regulatory plague may be. Justthis year, Texans have — in the name of a dime-sized, underground spider known as the Brack-en Cave meshweaver — jettisoned highwayimprovements. Similarly, in the name of theHouston toad, recovery efforts were slowed inthe wake of horrendousTexas wildfires thatdestroyed 1,700 homes.The green community is readying to add to

these Endangered Species Act injustices, fash-ioning a new weapon — the American buryingbeetle. As one liberal blogger puts it, the beetles“have earned the attention both of TransCanadaand of environmental groups dedicated to pro-tecting endangered species and interested aswell in stopping the [Keystone XL] pipeline’sconstruction.” [emphasis added].The beetle’s scientific name is Nicrophorus

americanus, and in various government reportsit is known as the ABB. As its scientific namehints (nekros: Greek for dead, dying person,corpse), the ABB is one of many species of car-rion beetle which in turn are just a few of thethousands of kinds of North American beetles.American burying beetles depend upon carrion— rotting flesh, burying it, and laying eggs near-

continued on page four

Page 2 Livestock Market Digest January 15, 2013

three of our western states thanin all the rest of the world com-bined!” So why are we makingsheiks filthy rich and buying oilfrom Mideast sponsors of terror-ism?As a Mormon, Ken Ivory

went on a mission early in hislife. Now he is on another. AsPresident of The AmericanLands Council, Ivory is on a one-man mission to liberate the West

from heavy handed federalbureaucrats in the East. HisAmerican Lands Council coordi-nates the concerted efforts ofstate, county, and local govern-ments, businesses, organizations,and individuals to secure anddefend local control througheducation, political persuasion,legislation and litigation.Such a group is desperately

needed because “Washington isprogressively commandeeringlocal control over matters of landaccess, land use, and land owner-ship,” says Ivory. “States, coun-ties, municipalities, businessesand individuals struggle todefend against the metastasizingmaze of federal policies, regula-tions and edicts. The problem isthat federal mandates, regula-tions, and legislation are directlyinterfering with the duty andmoral obligation of local, countyand state governments to secureand protect the health, safety,and welfare of their citizens. TheClean Water Act, sage grouseand other endangered speciesare just tactics. Tactics to cen-tralize command and control inWashington DC.” That may be agoal worthy of China and the oldUSSR, but certainly not theUSA as conceived by our Con-stitution.

The Clown Car is FullAccording to Ivory, “Utah

only gets 46 percent of the min-eral lease royalties where stateseast of Colorado get 100 per-cent. The federal governmentrestricts use of and access topublic lands and delays permitsto develop our abundant naturalresources costing the state bil-lions in royalties and associatedincome taxes and increased eco-nomic activity. Federal regulato-ry burden costs business andindividuals billions of dollars andcriminalizes many aspects ofeveryday personal and businessconduct.”One reason those on the east-

ern side of “The Federal FaultLine” covet our western lands isbecause of the land’s enchantingbeauty. But the feds are destroy-ing even that by “managing”western forests and forest firesfrom their eastern pulpits.According to Ivory, “The fedsfailed policies have more thandoubled the acreage and intensi-ty of wildfires, spewing billions of

pounds of pollutants into the air,releasing 20 times more mercurythan all the coal plants in thenation combined, and killingtens of millions of animals. So-called “preservationist” policiesof the federal government havefailed the test of time.” We cannot afford to continue

to do business like this. Or, inthis case, not do business. AndIvory reminds everyone that the

western states are becomingmore and more dependent on afederal government that isunsustainably broke, with a $16trillion national debt and stilloverspending by more than $1trillion per year.Instead of unleashing our

western state’s economies bygetting the heck out of the way,the solution Washington politi-cos come up with is, “Let’s try totax our way out of this mess.” It’sall a bit too much like a Saturdaymorning cartoon in which the

clowns in Congress, who can’teven decide to agree on whattime it is, are driving a clown carright over a fiscal cliff with thewestern states tied tight onbehind.

Liberating The LandThose of us in the West know

a little what the Indians felt likewhen the U.S. government madetreaties and written promisesand then broke them whenever itwas convenient, or profitable, todo so. Upon being admitted as astate, the federal governmentpromised all new states that itwould “extinguish title” or trans-fer away title to all public lands.For all states east of Colorado(and for Hawaii), it has honoredthis promise. According to Ivory,“The U.S. Supreme Court hascalled these promises “solemncompacts,” “bilateral (two-way)agreements,” and “solemn trusts”that must be performed “in atimely fashion.”Are we in the West therefore

not states? Is Nevada any less astate than New Hampshire? Andhow can anyone in the Eastdefend a situation where theyhave more say about what hap-pens in our western states thanthose of us who live here do?We lived in times like this

once before you know? Whenev-

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The Cause of Our Lives continued from page one

“Utah loses hundreds of millions of dollars because the federal government denies access to, or blocks consolidation of, Utah’s School Trust Lands.”

“Federal regulatory burden costs business

and individuals billions of dollars and criminalizes many aspects of everyday

personal and business conduct.”

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 3

er Ken Ivory speaks to groups ofirate westerners, which he isdoing more often lately, he tellsof a time when the westernstates had simply had enough.“Western states banded togetherand sent petition after petition,resolution after resolution, anddelegation after delegation toCongress. They complained thatthe federal government was notdisposing of the federal lands aspromised; the states could not

tax the federal lands to ade-quately fund education; theycould not grow their economiesbecause the federal governmentwas hoarding their abundantminerals and natural resources.”Sound familiar? Except the

time of which Ivory speaks was1828 and the western states hespeaks of were Illinois, Indiana,Missouri, Arkansas, Louisiana,Alabama, and Florida. “Theyknew their public lands history.They knew their rights,” saysIvory. “They banded together.And, because they refused totake “NO” for an answer, these1828 “western states” securedtheir rights and benefits to thetimely transfer of their publiclands. Presently, those 1828“western states” have 3-4 percent

federally controlled lands, whilemore than 50 percent of thelands in today’s western statesare still controlled by the federalgovernment. And it’s been over100 years since statehood.”In 1828 the U.S. Congress

came to the following conclu-sion: “If these lands are to bewithheld those States will, formany generations, without somechange, be retarded in endeavorsto increase their comfort andwealth, by means of works ofinternal improvements, becausethey have not the power, inci-dent to all sovereign States, oftaxing the soil, to pay for thebenefits conferred upon its own-er by roads and canals. Whenthese States stipulated not to taxthe lands of the United Statesuntil they were sold, they restedupon the implied engagement ofCongress to cause them to besold, within a reasonable time.No just equivalent has been giv-en those States for a surrender ofan attribute of sovereignty soimportant to their welfare, andto an equal standing with theoriginal States.”Remember, that was back in

1828. Today’s western stateshave the same language requir-ing the federal government to“extinguish title” to their publiclands as those “western states”had back in 1828.In 2009, the U.S. Supreme

Court once unanimouslydeclared that Congress cannotchange the “uniquely sovereigncharacter of a State’s admission”into the Union, particularly“where virtually all of a State’s

public lands are at stake.”The western states are still

waiting for the government tokeep its promise.

We’ve Waited Long EnoughKen Ivory and The American

Lands Council are tired of wait-ing for the feds to extinguish titleto western lands. “Our childrenand teachers can’t wait. Ourwage earners can’t wait. Ourpeople can’t wait, for a federalgovernment that has not kept its

promise.” That is why Ivory wasthe chief sponsor of HB 148 inthe Utah state house whichaddresses the transfer of title topublic lands to the state.Last March Utah’s Governor

signed the bill into law which:� Requires the United States

to extinguish title to public landsand transfer title to those publiclands to the state on or beforeDecember 31, 2014, thereby ful-filling its promise and makingthem equal to all states east ofColorado.

� The bill also charged Utah’sConstitutional Defense Councilto prepare legislation for the“uniquely sovereign” actions,including legal action, the statewill take to secure the promisesat statehood should the federalgovernment fail or refuse to workwith the state.

� HB 148 protects the exist-ing National Parks, congression-ally designated wilderness lands,and other Utah heritage sites.

� It establishes the Utah Pub-lic Lands Commission to man-age the multiple use and the sus-tainable yield of Utah’sabundant natural resources.

� The bill stipulates thatrecreation, hunting, fishing,grazing, mining, etc. will be pro-tected and managed by the UtahPublic Lands Commission

� On any of the public landstransferred to the state are soldby the state 5 percent of theprice paid will go to the Perma-nent Fund for public education,95 percent will go to pay downthe public debt. (These were theterms of statehood).

� 100 percent of the mineralrevenues on these lands will becontrolled by the state.This sets up an interesting

dilemma for the U.S. Congressand for the Supreme Court. Inan 1872 court case known asGibson v. Chouteau, TheSupreme Court ruled that “withrespect to the public domain, theConstitution vests in Congressthe power of disposition and ofmaking all needful rules and reg-ulations. That power is subject tono limitations. Congress has theabsolute right to prescribe thetimes, the conditions, and themode of transferring this proper-ty, or any part of it, and to desig-nate the persons to whom thetransfer shall be made.”One wonders, how will the

Supreme Court balance this withwhat an earlier Court called“solemn compacts,” and “solemntrusts” that must be performed“in a timely fashion.” Isn’t over

100 years “timely” enough?The Supreme Court in the

1872 ruling seems to have pre-empted a move like Utah madewhen they said, “No State legis-lation can interfere with thisright or embarrass its exercise.”The Court did acknowledge that“Pursuant to its broad authorityunder the Property Clause, Con-gress may enact legislation tomanage or sell federal land.” Butthey also ruled that any legisla-tion Congress enacts “necessarilyoverrides conflicting state lawsunder the Supremacy Clause.”In other words, the Supreme

Court has been put in a bit of atight spot because Congress isnot about to give Utah its landthey were guaranteed when theyjoined the Union. Ken Ivoryknew when he originated his leg-islation that those in Congresswould do nothing, after all, it’swhat they do best. So why both-er?Because Ken Ivory wants to

make the bureaucrats feel theheat. He wants to initiate a loud-er and more serious public dis-cussion about state’s rights. Hewants to draw laser-like attentionto this injustice and expose thehypocrisy, while at the same timeproviding viable answers on howto jump start our economy,reduce our debt and better edu-cate our children. One senses healso wants to light a spark in hisfellow westerners so they willshare his passion and commit-ment to liberate the West. In addition to the four ques-

tions Ivory asks the crowds hespeaks to, he asks his fellow west-erners a fifth and final one: “Whyisn’t this the cause of our lives?”

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The Cause of Our Lives continued from page two

. . . the western states he speaks of were Illinois,

Indiana, Missouri,Arkansas, Louisiana, Alabama, and Florida.

. . . they rested upon the implied engagement of Congress to cause

them to be sold, within a reasonable time.

Page 4 Livestock Market Digest January 15, 2013

by. When ABB larvae hatch, asnack awaits them in the form ofregurgitated flesh. While of inter-est to beetle enthusiasts, carrionbeetle behavior (Warning: Notcharismatic!) isn’t the stuff offundraising appeals.The ABB is thought to have

once inhabited a good part oftheUnited States from the plainstates to the East and the South.Today, it is known to occur in afew states — predominately theplains states north of Texas.This beetle’s plight is poorly

understood. To wit, from one 50-page government beetle report,“little is known about the demo-graphic status of the ABB in oth-er states and counties where it isbelieved to be present. WhetherABB populations (and range) areexpanding, stable, or contractingin size and vital rates (survival,reproduction, and movement) isvirtually unknown for the ABB inmuch of Arkansas and Kansasand parts of Nebraska and Okla-homa.”Despite a clear informational

void, government experts havereached some interesting conclu-sions. For example, while thebeetles continue to exist in Okla-homa even though they seem tohave vanished from many otherstates, the same governmentdocument alarmingly reportsthat “land in Oklahoma is 97percent privately owned” andthat Oklahoma “is the thirdlargest gas producing state in thenation.”The message is obvious: Pri-

vate property and gas production(wells, pipes, etc.) belong to thevillain. Strangely, after looking atthe Department of Energy’s mapof U.S. gas pipelines and know-ing that we have evidence ofthese beetles in more Oklahomacounties than anywhere else, itmight be more logical to con-

clude that other states don’t haveenough gas pipelines for the crit-ter to survive.While it is likely a silly argu-

ment that this beetle’s preferredhabitat is dotted with pipelines,it’s as reasonable as the idea thatthe greens seek to stop the Key-stone Pipeline for the beetle. It isnot about the beetle or even real-ly about the effect of the pipelineon habitat. It is about whatwould flow through the pipeline— energy. From the radicalgreens’ view, what is worst aboutthis energy isn’t even that itwould be a source of CO2. Whatis worst is that it would beaffordable and reliable.Physicists define energy as the

capacity to do work. The more wehave, the more we can do — themore we can improve the well-being of humans. It has broughtus out of the cave and lifted us up— shielding us from hot and cold,freeing us to travel far and wide,and providing an abundance thatcould not have been dreamed of ahalf century ago. Energy makesprogress itself possible.As energy consumption

increases, so does wealth, and aswealth increases, so does humanlifespan — perhaps the singlemost important environmentalmetric there is. Fortunately,North America has been blessedwith an amazing abundance ofburied energy resources: coal,gas, oil, shale, and uranium —enough to last centuries.The greens, however, wish for

it to stay right where it is —buried. From its inception, manyin the modern environmentalmovement have not been con-cerned about the well-being ofmankind. Sure, they will warn ofsomething causing cancer or ofsome vista our grandchildrenshould see that might disappear,but this is really another bit of

bait and switch. From their per-spective, progress is illusory andmankind is not something to besaved but fettered.As John Muir, founder of the

Sierra Club put it, “Man isalways and everywhere a blighton the landscape.” As PaulEhrlich, a more contemporarygreen, puts it, “We’ve alreadyhad too much economic growthin the US. Economic growth inrich countries like ours is the dis-ease, not the cure.”Quite simply, to stop the envi-

ronmental destruction theybelieve is taking place, they seekto unplug the shining city on thehill. While many extreme environ-mentalists will claim that they arefor energy but that it just needsto be alternative energy, the reali-ty is that without some as of yetunknown discovery in physics —geothermal, solar, wind, and oth-ers would be better described asalternatives to energy.Certainly, there are limited

times and places where alterna-tive energy works just fine, butthere is no way these sources canprovide an affordable and reli-able alternative to our currentfuel supply.Alternative energy is again the

bait offered by the greens aswhat is really for sale, the switch,is economic stagnation. Theymay package it as “sustainabili-ty,” but it is still a pig with lip-stick. And, the pig of economichardship generally comes withincreases in all sorts of humanmisery: unemployment, bank-ruptcy, alcoholism, drug use,dropouts, domestic violence,divorce, and on and on.The reality is that environmen-

tal policy — no matter how goodfor flesh-eating beetles — can’t begood for the environment if notgood for people. The modernenvironmental movement, howev-er, may have finally found its per-fect mascot: the burying Americanbeetle — or something like that.

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Todd’s neighbor hasraised good Herefordcattle as long as he hasknown him. As years

went by Mr. Gerald, theneighbor, let his herd dwindlein numbers. Then last winterhe fell and injured his knee.Todd offered to help and

was called upon. Just a wordabout Todd, he is an east riv-er Dakota cattle farmer withthe heart of a west riverrancher. He’s a good horse-man, wears a big hat and car-ries a 60' rope!Mr. Gerald wanted to ship

some of his long yearlin’s.His whole herd consisted of12 big cows, one old bull andassorted progeny. On the bigday Todd went to the back ofthe pasture and worked hisway through the coulees andbreaks, pushing what hecould gather to the corral.Mr. Gerald had his wife drivehim out to help in their JeepWrangler SUV. Things wentsmoothly till they got close tothe corral. In particular, Mr.Gerald wanted to ship a year-lin’ bull who had somehowmissed his castrationappointment! After turningback at the gate twice, Mr.Gerald gave Todd permissionto rope him.Any fair-to-middlin’ roper

relishes the opportunity torope a big target, especially ifit belongs to somebody else!It didn’t take long for Todd torun him down and and ropehim around his stubby horns.The target refused to be

lead to the gate and Todd

didn’t have enough horse todrag him. Plus the bull ranup the rope a couple timestrying to intimidate Todd.They were both losing theirtemper!Todd yelled at Mr. Gerald

to pull his Jeep up in front ofthe gate. His idea was to tiehis rope over the bumperhitch and let the Jeep dragthe bull into the corral. Now I can imagine you

readers trying to pictureTodd accomplishing this featof cowboy daring-do! But, Itold you Todd was a goodhand and he did it! He man-aged to get a half-hitch overthe ball and still escapeentrapment and injury. In atestosterone milli-minute thebull encircled the Jeep like ayoyo on a string! Not oncebut three times, thenjammed his head into theright front wheel well! TheJeep was rocking dangerouslyand the Geralds weretrapped inside being thrownabout like orangutans in apaint shaker!In an act of sacrifice, Todd

leaped in and cut his goodrope freeing the front seatprisoners. The bulk of therope ran off with the yearlin’bull over the horizon. Mr.Gerald rolled his windowdown, pulled his “HerefordsForever” cap off his eyes andturned to watch the bull dis-appear.“Well,” he said with the

wisdom of an ol’timer, “Hewuddn’t quite ready to shipanyway.”

Shipping Mr. Gerald’s Hereford

The Right Mascot continued from page one

BRETT WESSLER, Staff Writer |Drovers Cattle Network

One of the 750 employeesof Beef Products Inc. wholost his job after the “pinkslime” controversy is hold-

ing Diane Sawyer, Jamie Oliverand others responsible.Bruce Smith claims ABC

News anchor Diane Sawyer, chefJamie Oliver and others who con-tinuously used the phrase “pinkslime” led viewers to believe theproduct made at BPI was dan-gerous to consumers and directlyresulted in him losing his job.Smith says a photo which the

media called “pink slime” is notlean finely textured beef and is nota product found at a BPI factory. The Los Angeles Times reports

Smith is suing Sawyer, Oliver andfood blogger Bettina Siegelamong other defendants. Smith,

a licensed attorney, is seeking$70,000 in damages. KSFY Newsreports Smith hopes other formerBPI employees follow suit.“My former employer was

maliciously and needlesslymaligned and accused of produc-ing a food product that did notexist — a product derisively,repeatedly, and relentlesslycalled ‘pink slime’ by traditionalTV broadcast and print media, inconcert with social internetmedia critics, bloggers, politi-cians, and celebrity entertainers,”Smith said in a statement.Smith worked for BPI for more

than four years before losing hisjob last May. He was the compa-ny’s senior counsel and director ofenvironmental health and safety.In addition to the lawsuit,

Smith is promoting a book abouthis experiences titled, Pink SlimeAte My Job.

Former BPI employee suing for lost job

BaxterBLACKO N T H E E D G E O F C O M M O N S E N S E

www.baxterblack.com

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 5

By MITCH LIES, Capital Press

AUSDA rangeland scientistdisputes the findings of arecently published reportthat grazing on public

lands exacerbates the effects ofclimate change.Tony Svejcar, research leader

of the Eastern Oregon Agricul-tural Research Service Center inBurns, said the report highlightsisolated examples of poorly man-aged allotments and fails to pres-ent an accurate picture of theoverall effect of grazing on feder-al lands.“You can go out and pick

spots like that and compare thatto no grazing and find that thereare impacts,” Svejcar said. “Thequestion is, on what portion ofthe landscape is that occurring?”In the report, published Nov.

15 in the online publication Envi-ronmental Management, the scien-tists wrote that livestock produc-tion on public lands “can altervegetation, soils, hydrology andwildlife species composition andabundance in ways that exacer-bate the effects of climatechange on these resources.”“Removing or reducing live-

stock across large areas of publicland would alleviate a widely rec-ognized and long-term stressorand make these lands less sus-ceptible to the effects of climatechange,” they wrote.In a phone interview, Robert

Beschta, lead author of the studyand a Oregon State Universityforestry professor, disputed Svej-car’s claims that the instances ofpoor grazing management areisolated and minimal.“We would suggest that the

effects have been widespread andthey are far-reaching and theyare not minimal,” Beschta said.Beschta said the eight scien-

tists wrote the report becausethey are concerned over howpublic lands are managed.Svejcar, however, said federal

land managers are doing a goodjob of protecting resources, par-ticularly in recent years.“In general, there has been a

lot of attention focused on (graz-ing management) and managershave responded to that,” Svejcarsaid. “It is nothing like it was 30or 40 years ago.”In reference to photos of

overgrazed areas that accompa-ny the report, Svejcar said: “Ifthat is happening somewhere, itshould be fixed. The (Bureau ofLand Management) probablyneeds to do something about it.“But we don’t see that much

of that anymore,” he said.“These kind of papers are a slap

in the face for those managerswho have put a lot of effort intofixing these things,” Svejcar said.The eight scientists behind

the report include Cindy DeaconWilliams of Medford, who earlierthis year was appointed to theOregon Board of Forestry;Debra L. Donahue, a Universityof Wyoming law professor;Dominick DellaSala, presidentand chief scientist of the Geos

Institute in Ashland, Ore.; Port-land hydrologist Jonathan J.Rhodes; J.R. Karr from Sequim,Wash.; M.H. O’Brien of CastleValley, Utah; and T.L. Fleischnerof Prescott, Ariz.In addition to advocating a

dramatic reduction of grazing onfederal lands, the scientists alsocall for more wolves: “Reestab-lishing apex predators in large,contiguous areas of public landmay help mitigate any adverseecological effects of wild ungu-lates" such as deer, elk, wildhorses and burros, they wrote.“We recognize wolves are con-

troversial,” Beschta said, “but onlarge blocks of public lands, itmay be necessary for wolves toreestablish themselves to restoreecosystems.”Svejcar characterized the

report’s authors as longtime anti-grazing advocates.“They just periodically come

out with stuff like this,” he said.“I can’t see anything new here.“It is the same stuff that has

been around for a while,” Svejcarsaid.“It is something that we have

been through before with thisindividual and his associates,”said Curtis Martin, president ofthe Oregon Cattlemen’s Associa-tion. “It is just kind of more ofthe same.”Beschta acknowledged the

scientists used existing studies toreach their conclusion.“We basically delved through

literature and tried to put togeth-er a coherent study on what theliterature was telling us,” he said.Asked why the scientists con-

centrated on public lands to theexclusion of private lands, Besch-ta said: “We think perhaps thereis more of a chance to influencechange and there are betteropportunities to restore ecosys-tems on public lands.”The report concludes with a

call to action for federal agen-cies.“If effective adaptations to the

adverse effects of climate changeare to be accomplished on west-ern public lands, large-scalereductions or cessations ofecosystem stressors associatedwith ungulate use are crucial,”the report stated.

me, I miss my gouda and goatcheese as much as anyone. It’snot because the cows are beingmistreated, I assure you. Wegive them daily massages, didaway with those sexist artificialinseminators and had all thosehideous bulls slaughtered sothey could no longer rape thepoor cows.”“But didn’t you know that a

cow had to be bred to one ofthose hideous bulls in order togive birth to a calf in order tolactate?”“What? That sounds absurd.”

The Secretary turns to a subor-dinate from PETA and asks,“Did you know anything aboutthis?”“Sir, the people are starving.

Why is there no bacon to bringhome?”“Because after we outlawed

gestation crates the motherhogs kept squishing theirbabies. Or eating them. It wasgross. They acted like pigs.”“There are reports that peo-

ple are burning their IKEA fur-niture for fuel and shootingsome of the vast maraudingherds of old horses and wolves

out West. In light of the foodshortage is it now okay toslaughter horses for food or toshoot endangered species tofeed your family.”“Absolutely not! Let me

make myself clear. Shooting awolf will land you in jail.”“At least they’d get some-

thing to eat in prison,” said ahungry journalist. “Can’t a pointbe made here that the foodshortage is a good example ofwhat happens when we let spe-cial interests do our farming andranching for us, instead of farm-ers and ranchers? With all duerespect, Mr. Secretary, who willsave us from our rescuers?”“Are you implying that we

don’t know what we’re doing, orhave no experience? I’ll haveyou know that I’ve flown overIowa numerous times and havevisited several wineries out inCalifornia. And have you seenour award winning web site? Iwant everyone to know thatwe’re doing the best we can.”“With all due respect Mr.

Secretary, that’s precisely whatthe stakeholders are afraid of.”

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Riding Herd CONTINUED FROM PAGE ONE

Page 6 Livestock Market Digest January 15, 2013

by CALLIE GNATKOWSKI- GIBSON

For decades, Angus cattlehave increased in numbersin the Southwest. Today,the breed dominates the

market because of the provenresults of Angus bloodlines incrossbreeding programs, carcasstraits, maternal instinct, and

more. As cattlemen and womenlook for ways to make their oper-ations more efficient, more andmore are looking to this diversebreed. For these producers, Angus

genetics and technology are agood combination, giving theircattle, and therefore their cus-tomers, a competitive edge.

From Northeastern New MexicoManny and Hayley Encinias,

of La Gloria Cattle Company,have been raising registeredAngus cattle in northeasternNew Mexico since 1999. Theyalso have a herd of commercialAngus cattle and raise somecrossbred calves as show calves.The couple first got interested

in the registered side of theAngus business while attendinggraduate school at North DakotaState University, Manny said,where they got to know JustinSpickler, whose family operatesSpickler Angus, a large, progres-sive, Angus operation in thestate. “We built good relation-ships and were fortunate to trav-el and become part of the Angusfamily while we were in NorthDakota. Jokingly, we always saythat the best people we metthere were Angus people, andthe best cattle we saw wereAngus cattle.”Manny and Hayley purchased

their first registered femalesfrom the Spicklers, but afterreturning to New Mexico real-ized that the environment waschallenging for the larger framedNorth Dakota females. Theyhave incorporated moderate-sized cattle from producersincluding Bill and Lisa Gardnerof Manzano Angus in Estanciainto the operation.The cattle are pasture-raised,

in Union, San Miguel and SantaFe Counties. “The majority ofour pastures are rough and rockypiñon/juniper country,” Mannysaid. “I like it because it’s real,and offers our cows enough

diversity and flexibility to be ableto get out and graze and browseand do their job.”The cattle stay on pasture

year-round. Each cow is bred arti-ficially at least once, then bullsare put out with the herd for 120days. Replacement heifers arebred in mid-May, and the maturecows are bred in mid-June. “Wehave high expectations for ourfemales and bulls alike, they allhave to get out there and work,”he noted. “We don’t feed the cat-tle a lot, but when we do, we useself-feed protein supplements,placed in harder to access parts ofthe pasture.” The family markets both bulls

and replacement females privatetreaty, from the ranch. Theyoriginally sold bulls through dif-ferent sales, but decided to focuson private treaty sales to givecustomers a chance to see theranch environment and how thecattle are raised, he explained.“Those are the kinds of things welook for when we buy a bull, andwe wanted to give our customersthat same opportunity. Plus, weget the chance to get to knowour customers.”Bulls are raised with the con-

sumer in mind, according toManny. “We have a little differ-

ent philosophy when it comes togrowing our bulls. We pushthem, but push them with a highroughage-based diet, and keepthem in the pasture if possible.”“Our cattle are a good fit for

our country,” he explained.“They are moderate sized andeasy fleshing and pass along thateasy-fleshing trait to their calves.They are extremely fertile, andcan convert roughage to keeptheir condition on pasture.”Disposition is an important

trait on the Encinias operation.“We select on disposition, andthere is no room for bad atti-tudes. We handle the cattle quitea bit because of our AI program,but try to make sure every timewe put them in a pen or in thechute, it’s a positive experience.”“It’s all about how you handle

the cattle,” he continued. “Askids, my Granddad and Dadtaught us not to rush the cattle,and we work them the same waytoday.”And, that pays off, he said.

“Some of the best complimentswe get are from people com-menting on how gentle our cattleare, and easy to work and load.”In addition to Manny and

36th Annual Angus Bull & Female SaleJanuary 26, 2013 • 1:00 p.m.

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auer Dependable GeneticsJ

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Our 36th Annual Angus Bull and Female Sale will feature anexcellent set of spring bred and fall bred females along with anoutstanding set of bulls sired from elite cow maker sires like the

outstanding Emblazon son, and the tremendousdouble-bred Emblazon grandson, pictured above.

At Jauer Dependable Genetics, the scope of our programcontinues to be the production of efficient Angus mamma cows.We have over 30 years experience linebreeding low main-tenance, maternal lines of cattle that produce consistent, predict-able, balance traited offspring that can be profitable in anyenvironment. Our stringent breeding program - utilizing the elitecow-maker sires of the Angus breed combined with our rigorousselection process have helped Jauer Dependable Genetics becomeone of the leading, maternally efficient Angus herds in the country.

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PANHANDLE GENETICS1st Annual Bull Sale • March 22, 2013SELLING 60 PUREBRED ANGUS BULLS

Many of the bulls offered are 18-month-olds from our embryo transplant program. They are by leading sires for calving-ease, muscle and carcass merit. Bulls are

on feed south of Dimmit, Texas and can be viewed at any time.

The Sale is at Mimms Sale Facility in Hereford, Texas. The bulls will be videoed in February for broadcast along with being scanned for carcass merit.

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Angus Lead theWay

Angus Ranches Ranked Among the Nation’s Top 25

Cattle herd inventory numbers remainsomber this year; down more than 1.9 mil-lion from 2011 to 2012, according torecent numbers reported by CattleFax.

Breeders are faced with tough decisions andneed reliable solutions to keep their operationsrunning.Despite the downward industry trends, the

American Angus Association® reports a nearly 7percent increase in registrations. A total of315,007 animals were recorded during fiscal year(FY) 2012, which began Oct. 1, 2011, and endedSept. 30, 2012.“No doubt, it’s a challenging time to be

involved in the cattle industry,” says BryceSchumann, Association chief executive officer.“But we are finding that in order to make thebeef cattle business better for the future, weneed to keep our eyes set on raising reliable,high-quality animals that produce beef to meetconsumer demands.”And in many instances, that goal starts with

the Angus breed. In fiscal year 2012, 625 Associ-ation members, representing 41 different states,registered 100 or more head of Angus cattle. Thetop 10 states for registrations were, in order:Montana, South Dakota, Nebraska, Kansas,Oklahoma, Texas, North Dakota, Missouri, Ida-ho and Wyoming.

Top Angus BreedersThe Association also announced its FY 2012

members who registered 100 or more animals.The top 10 breeders for registrations were, inorder:

� Express Angus Ranches, Yukon, Okla.� Sitz Angus Farm, Harrison, Mont.�Gardiner Angus Ranch Inc., Ashland, Kan.� Connealy Angus Ranch, Whitman, Neb.� Vermilion Ranch, Billings, Mont.� Thomas Angus Ranch, Baker City, Ore.� 44 Farms, Cameron, Texas� Riverbend Ranch, Idaho Falls, Idaho� Schaffs Angus Valley, Saint Anthony, N.D.� Stevenson Diamond, Dot Hobson, Mont.

Top National BreedersThe value of Angus genetics is also being

recognized on the national level. In a recentarticle in the National Cattlemen’s Beef Associ-ation publication, Directions, the organizationpublished CattleFax reports on the top produc-ers in each beef industry segment, in additionto other important cow-herd statistics.According to the annual report, approxi-

mately 19 out of the top 25 seedstock opera-tions use Angus genetics. Likewise, 17 out ofthe top 25 cow-calf operations incorporate theAngus breed.CattleFax statistics also show JBS Five

Rivers Cattle Feeding LLC as the largest feed-ing operation with 11 yards and a capacity of940,000 head. Cargill Meat Solutions ranked asthe largest beef packer.

continued on page seven

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 7

Hayley and their daughters Miaand Elia, Manny’s father, Adan,Hayley’s father, John Dunlap,and Manny’s brother-in-lawMichael are a big part of theoperation. Since Manny andHayley both work full time –Manny as the Extension BeefCattle Specialist for New Mexi-co State University and Hayleyas the advanced science andSpanish teacher at Clayton HighSchool — it takes a concertedfamily effort to cover the day-to-day cattle management.The kids are growing up pretty

quickly, he noted, but they are alot of help. “It is wonderful thatwe can raise our kids this way.Our family doesn’t go on vaca-tions, when we get together it’susually to work cows. We are veryfortunate to have family that iswilling to help when we need it.”In addition to the cattle oper-

ation, the Enciniases offer repro-ductive management services,and work with producers todevelop nutrition and health pro-grams, as well as estrous syn-chronization and artificial insem-ination (AI) programs, and theyalso offer pregnancy diagnosiswith their ultrasound – in whichthey accurately age and sex preg-nancies. “I know there is not alot of margin in this business, sowe try to promote and marketmanagement tools that havehelped us make improvements inour herd,” he explained.Manny is a firm believer in

Angus — both in the cattlethemselves and the benefits tothe producer of being affiliatedwith the American Angus Asso-ciation, which has been workingsince the 1970s to develop pro-grams to promote Angus cattleand beef. “When you look at theindustry as a whole, the industryhas gone with the black hidebecause of the influence andwork of the Angus Association,”he pointed out. “You just get somuch added value for Angus-sired calves out of registeredAngus bulls.”Commercial producers can

also benefit from Angus genet-ics, he noted. “When you look atyour profitability equation, hav-ing some percentage of Angus inyour commercial cow herd willdeliver those traits like fertilityand calving ease that are soimportant. Angus may not be thesolution for everyone, but in thebig and rugged country – if acow can’t breed up early, have acalf, and raise it to weaning,she’s not doing her job.”

To the Texas PanhandlePerformance is key for the

Bradley family, of the Bradley 3Ranch near Estelline, Texas. Min-nie Lou and Mary Lou Bradley,and Mary Lou’s husband JamesHenderson raise registered Anguscattle in the southern part of theTexas panhandle, about 100miles southeast of Amarillo.The ranch is made up of

rolling plains, mesquite andcanyon country. All cattle arepasture-raised, and aside fromfirst-calf heifers, calve unassisted

in the pasture. “Our cattle knowhow to get out and graze, crosscreeks and draws, and have thecommon sense that they getfrom being out in the pasture,”Mary Lou said. The family works to raise well-

balanced cattle that are strong inmultiple traits, Minnie Lou not-ed. “With the genetic testing andtechnology that’s available today,we can determine when a calf isone day old whether he has anopportunity to be a good carcassanimal, or is strong in calvingease or maternal traits, so we canselect calves that are fairly goodin all areas.”A gentle disposition is impor-

tant, especially as the ranchingpopulation gets older, MinnieLou said. In fact, calving easehas been replaced by disposition

as the number one trait peoplelook for. “We keep our cattlegentle, and get rid of anythingwith a problem.”The Bradleys strive to raise

functional cattle that do well in a

variety of environments. “Likeeverybody, we have a droughtabout every ten years, but weusually don’t have the heat wehave had the past couple ofyears,” Mary Lou said. “In theheat, the cattle definitely neededshade, but at the end of the daystill calved and performed. We’vehad no real rain for two years,

but our cows have done reallywell and raised heavy calves withminimal input.”Unlike many registered pro-

ducers, the Bradleys try to runtheir operation just like a commer-

cial cattle operation. Using GPSto track cattle movement, theyhave worked to develop a feed andwater situation that allows themto move the cattle around andwell-utilize their pastures.They have a 60-day calving

season, and expect cows to calveand re-breed within that time.First-calf heifers are bred by arti-

ficial insemination, and multiplesires are used in the pasture onthe mature cows. They alsoselect some cows, who meet astrict set of requirements, asembryo donors.The ranch has maintained

Standardized Performance Analy-sis (SPA) data on the entire herdsince the program’s inception,Minnie Lou noted. The SPA pro-gram takes all inputs and outputs,including birth dates, weaningweights, feed costs and more, andcomputes the production cost peranimal. “It lets us know just whatit takes to raise a calf, so we cansee if we’re raising our registeredcattle as cheaply as commercialproducers do.”The Bradleys market both

Angus continued from page six

continued on page eight

Granddad and Dad taught us not to rush the cattle,and we work them the same way today.

Page 8 Livestock Market Digest January 15, 2013

by JOSH VERGES, (Sioux Falls, S.D.) Argus Leader

The Department of Agriculture is responding toparents, politicians and meal planners by soften-ing its push toward healthier school lunches.For the rest of the school year, schools will be

allowed to serve as much meat and grains as theywant, as long as they don’t exceed per-meal limitson total calories. Meal planners welcome the flexi-bility but still have concerns about the HealthHunger-Free Kids Act, which went into effect thisyear.“Part of me is happy and part of me is just frus-

trated,” said Sandi Kramer, child nutrition supervi-sor for the Yankton (S.D.) School District. “I’mglad they’re listening to us; I just wish they’d lis-tened to us sooner.”The meal guidelines have forced schools to dou-

ble the amount of fruits and vegetables they servewhile capping calories and cutting back on sodium.School officials say students now are throwing

away much of their meals, particularly the freshproduce, and the 850-calorie limit on high schoolmeals are leaving many students hungry, especiallyathletes. Kindergarteners to fifth-graders have a650-calorie cap; sixth- to eighth-graders have a700-calorie cap.“They’ll throw away like this cooked squash, the

lentils, the cooked spinach and broccoli,” said astudent at Niagara Falls High School in New York.Other kids at high schools in her area concurred: Ifthey don’t want it, it goes in the trash.Brandon Valley schools in South Dakota have

studied their food waste and found 30 percent offruits and more than 50 percent of vegetablesserved end up in the trash.“The waste is extremely high,” said Gay Ander-

son, Brandon Valley’s food service director. “Weneed to fix that.”The biggest concern for nutritionists is new lim-

its on grains and meats or meat alternatives,according to Agriculture Secretary Tom Vilsack.“This flexibility is being provided to allow more

time for the development of products that fit with-

in the new standards while granting schools addi-tional weekly menu planning options to helpensure that children receive a wholesome, nutri-tious meal every day of the week,” Vilsack wrote ina letter Friday to members of Congress.Brandon Valley used to allow students to take

an extra slice of bread to fill up. Officials stoppeddoing so this year when limits on grains went intoeffect. They might bring the option back now butare leery of making too many changes.Although schools now can hand out extra bread

or increase meat portion sizes, Anderson said theystill have to watch that they don’t exceed caloriemaximums.In Yankton, Kramer plans to incorporate more

meat or bread on occasion. She tries to get as closeas possible to the 850-calorie limit for high schoolmeals, and a couple times a month has used smallservings of pudding or Jell-O to do it. The USDA’srecent decision will allow her to serve a larger bun orserving of meat instead.But Kramer would like to see more changes,

such as a modest increase in the calorie ceiling.She also finds it difficult to find legumes that stu-dents will eat and thinks three-quarters of a cup ofvegetables is too much for elementary school stu-dents.Anderson wants the USDA to relax its limits on

protein for school breakfasts.In addressing the problem of hungry students,

Vilsack gave no indication the USDA would moveon calorie limits. Instead, he suggested families andsports teams bring food to supplement the taxpayer-subsidized meals, and noted that students areallowed to buy additional food at school.“New school meals are designed to meet only a

portion of a child’s nutritional needs over thecourse of the school day,” Vilsack wrote.The Government Accountability Office recently

agreed to study how the meal changes have been putin place across the country.

(Contributing: Mary Friona, WGRZ-TV, Buffalo, N.Y.)

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Angus continued from page seven

weaned heifers and experiencedcows from the ranch, starting inlate May or early June. Interest-ed customers’ names are put ona list, then when the females areready to go, the Bradleys contact

customers starting at the top ofthe list until all available femalesare sold. Bulls are sold at the family’s

annual production sale, set thisyear for February 16, 2013 at theranch. Customers are invited tocome out on Friday before thesale for dinner and a chance to

look at the bulls in a relaxed envi-ronment. “Everyone has theirown methodology — some arefocused on budget; some have aspecific trait, like calving ease,that they are looking for; andothers look at all the numbers.” This year, bulls will be tested

with new technology developedby Pfizer Genetics and adoptedby the American Angus Associa-tion, which identifies 50,000DNA markers. Data from thistest is the equivalent of havingseveral progeny on the ground.“We want to give people moreconfidence in what they are buy-ing and reduce the unknown, sowe have stepped out there, spentthe money, and made the com-mitment,” Mary Lou said. “Thebig question in farming andranching today is, “How can wedo more with less?” and geneticsare a big part of that equation.”Bulls are grown out in large

paddocks on a ration that is pri-marily roughage. “Fertility isnumber one, and we make sureour bulls have good feet and legs,”Minnie Lou said. “If you don’thave a bull that can walk, he’s notgoing to do you much good.” Originally, the family sold

their bulls by private treaty. Theystarted the sale in the early 1990sto better serve their customers.“We had so many people calling,asking us to send our best bulls,and it occurred to us that whatwe thought were our best bulls

might not be what our customersthought were our best ones. Westarted the sale so that customerscould determine what they like,and to give people an equalopportunity to pick what worksfor them,” Mary Lou explained.

“A lot of people raise nice bulls.We are trying to take those nicebulls and stay out in front ofwhere our customers and theindustry is going, and try to meettheir needs. Our commitment isto raising quality seedstock. Weknow our bulls influence a lot ofcattle, and are serious about doingour job well,” she continued.”Minnie Lou grew up raising

Angus cattle in 4-H in Oklaho-ma. After graduating from Okla-homa A&M, now OklahomaState University, she went towork for the Texas Angus Associ-ation. One weekend, she wenthome with a young man she wasdating to help brand calves onhis family’s Hereford operation— the dominant breed in theSouthwest at that time. Sheproved to be good help, and thatevening, the young man’s fatherasked what she thought. “I toldhim I thought dehorning was thecruelest thing I had ever seen.

He asked what I thought heshould do, and I said I thoughthe should try some Angus bulls,”she said. “So, he asked me tofind him some. Four years later,I married that young man.” She and her husband started

out in the commercial Angusbusiness, but soon decided thatthe ranch was not big enough tobe able to make a living and raisetheir family in the commercialbusiness. “We decided to raisepurebred Angus, but said if we’regoing to do this, we are going toraise ranch-raised bulls forranchers. Fifty-seven years later,we’re still raising Angus cattle.”Today, there are more Angus

cattle in United States than thenext nine breeds combined, andAngus genetics influence 70 per-cent of the commercial herd. Abig reason for the breed’s domi-nance is the leadership and staffof the American Angus Associa-tion (AAA), who have done agood job seeing and preparingfor the future by focusing on per-formance, and developing pro-grams like branded beef andDNA testing, said Minnie Lou, apast member of the AAA Boardof Directors.

Calving ease has been replaced by dispositionas the number one trait people look for.

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 9

by JASON BLEVINS, The Denver Post

AU.S. District judge in midDecember overturned acontroversial new waterregulation requiring ski

area permit holders on publicland to turn over water rights tothe U.S. Forest Service (USFS).Judge William Martinez ruledthat the Forest Service’s revisionof 2011 and 2012 permit regula-tions governing water rights vio-lated federal procedural rules,failed to evaluate economicimpact and violated ski arearights.Martinez sided with the

National Ski Areas Association(NSAA), which was suing theForest Service over the newwater rights permit rules, order-ing the agency to not enforce theterms of the new rules. Martinezremanded the issue back to theForest Service.If the agency chooses to

revive the issue, NSAA publicpolicy director Geraldine Linksaid would “definitely be a morepublic process.”“I think a lot of different enti-

ties will weigh in this time. Thishad much broader issues than justthe ski industry. I don’t expect theForest Service will issue the sameclause next time around,” shesaid. “This really threatened theadministration of state water lawand I would be surprised if thestate didn’t weigh in.”The Forest Service argued

that the new clause — whichrequired ski area permit holdersto transfer water rights securedby areas operating on public landto the federal government —kept the natural resource con-nected to the land. In mid-

November oral argumentsbefore Martinez, the ForestService argued it merely returnedpermit water policy to long-heldconditions imposed before a2004 change in the rules.Still, Martinez’s ruling noted

that during the last threedecades, the Forest Service “didnot follow a uniform policy anddid not require federal owner-ship of water rights in all ski areapermits.” The agency said itchanged the permit require-ments to assure that ski areasnever sold water rights connect-ed to federal land.“It’s a monetary calculation,”

Department of Justice attorneyClay Samford argued in theNovember 15, 2012 hearing. “Asthe value of these rights increases,it may make economic sense forski areas to sell some rights off.”The NSAA argued that the

agency violated the FederalAdministrative Procedural Act bynot soliciting public input on thenew rule. The Association’s Janu-ary 2012 lawsuit also argued thenew water regulations violatedthe National Forest ManagementAct and the Regulatory FlexibilityAct. The NSAA said the agencywater rules impacted 121 skiareas in 13 western states. TheForest Service admitted it did notfollow the public review and com-ment guidelines of the Adminis-trative Procedural Act becausethe new water rules were simply aregulatory tweak, not a conse-quential legislative rule change.Martinez, who in October last

year cited improper environmen-tal review in ordering the U.S.Department of Energy to stoppermitting uranium mining andmilling at 31 leased sites in west-

ern Colorado, ruled the ForestService violated all three regula-tory acts when it issued the newwater rule. Martinez’s decisiononly addresses the Forest Ser-vice’s procedural deficiencieswhen it crafted the new waterdirectives. He did not rule on theNSAA’s substantive claims,specifically that the agencyshould not condition ski permitson the transfer of water rightsobtained through a state process.After the ruling the Forest

Service was checking on aresponse so no comment wasavailable.Colorado plays a large role in

the water issue, said MelanieMills, whose Colorado SkiCountry trade group includes 21of 25 of the state's ski areas. Shesaid ski areas were ready to workwith the agency to forge waterrights rules that did not impactwater purchased off federal landsbut used on federal lands.“There is plenty of room for

agreement. Plenty of commonground,” Mills said. “Our beliefis that the focus should be on thewater on the permit area itself.Talking about water that a per-mittee might divert from otherareas off-permit or might pur-chase or lease through otherarrangements, that gets into areathat folks beyond ski areas willbe worried about.”The ruling is not that surpris-

ing. At the November hearing,Martinez grilled Forest Serviceattorneys on the idea that a skiarea would sell essential waterrights. “Why would a ski area selloff water rights and leave itselfwith insufficient water to operatea ski area?” he said. “Then youare not a ski area anymore.”

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Judge sides with ski areas, rejects Forest Service water rights rule

Ringling circus owners win $9.3 million settlement from animal rights groups

by DAPHNE DURET, Palm Beach Post Staff Writer

Owners of the Ringling Bros. and Barnum &Bailey circus, said they will receive $9.3 mil-lion from the American Society for the Pre-vention of Cruelty to Animals to settle part

of a lawsuit the circus owners filed against theASPCA and several other animal-rights groups.Feld Entertainment, which owns Ringling Bros.,

sued the ASPCA and the other groups in 2007under the Racketeer Influenced and CorruptOrganizations (RICO) Act, claiming the groupsand their lawyers paid more than $190,000 to aformer Ringling employee who had joined them insuing the circus company in 2000, alleging animalcruelty under the Endangered Species Act.A federal court at the end of a six-week trial in

2009 ruled in the circus’ favor. In its ruling, thecourt characterized former employee, Tom Rider,as a paid witness whose testimony was not credible.Feld’s racketeering lawsuit against the ASPCA

also includes the Humane Society of the UnitedStates, the Fund for Animals, Animal WelfareInstitute, Animal Protection Institute United withBorn Free USA, Tom Rider and some of the attor-neys involved in the litigation. But Friday’s settle-ment only covers the ASPCA.“These defendants attempted to destroy our

family-owned business with a hired plaintiff whomade statements that the court did not believe,”said Kenneth Feld, chairman and chief executiveofficer of Feld Entertainment. “This settlement is avindication not just for the company, but also forthe dedicated men and women who spend their

lives working and caring for all the animals withRingling Bros. in the face of such targeted, mali-cious rhetoric.”The settlement ends a part of a battle in what

has been a decades-long war between animal-rightsactivists and circus companies such as Ringling.Activist groups have long held that Ringling treatsits performing elephants cruelly. And over theyears, they have released undercover videos show-ing trainers beating the elephants, which activistssay are housed in cramped quarters and are poorlytreated for debilitating diseases.As part of the settlement, ASPCA officials said

that their organization does not admit any liabilityor wrongdoing.ASPCA CEO and President Ed Sayres, in a

prepared statement, said the federal court thatruled on the 2000 lawsuit threw the case out with-out ruling on the merits of the elephant-abuse alle-gations.“In fact, this litigation has stopped being about

the elephants a long time ago,” Sayres said, addingthat the organization ultimately decided to resolvethe case to avoid the further expense of a long, pro-tracted litigation. “We are glad to put this matterbehind us so we can focus most effectively on ourlife-saving work, preventing cruelty and improvingthe welfare of animals.”The Ringling Bros. circus was performing its

show, “Holiday Circus Spectacular,” at the PalmBeach County Convention Center.Feld Entertainment also produces several other

performance shows, including Disney on Ice andMonster Jam.

Page 10 Livestock Market Digest January 15, 2013

by EDWARD TAYLOR, Reuters

Deutsche Bank co-chiefexecutive JuergenFitschen was drawn into awidening tax evasion

probe linked to carbon trading atGermany's biggest lender onWednesday as police and taxinspectors raided its offices.Prosecutors said they were

investigating 25 bank staff onsuspicion of severe tax evasion,money laundering and obstruc-tion of justice, and searched theheadquarters and private resi-dences in Berlin, Duesseldorfand Frankfurt.“Two of Deutsche Bank’s

Management Board membersJuergen Fitschen and StefanKrause are involved in the investi-gations as they signed the value-added tax statement for 2009,”Deutsche Bank (DBKGn.DE)said in a statement.Back in 2009, Fitschen was

Germany chief and Krause waschief financial officer, a post heretains to this day.Deutsche Bank said it volun-

tarily corrected its 2009 taxreturn, but noted that authoritiesdisagreed over whether this hadbeen done in a timely fashion.“Unlike the Public Prosecu-

tor’s Office, Deutsche Bank is ofthe opinion that this correctiontook place in due time,” it said.Around 500 police and tax

inspectors raided DeutscheBank, arresting five staff in aprobe linked to a tax scaminvolving the trading of carbonpermits.Tax inspectors clutching back-

packs and suitcases were seenleaving the bank’s twin-towerheadquarters in Frankfurt.About 20 police mini buses andtwo coaches were parked out-side.The raids mark a setback for

Deutsche’s efforts to polish itsimage. The bank is strugglingwith lawsuits in the UnitedStates and the UK connected toallegations of Libor manipula-tion and the mis-selling of sub-prime assets during the 2007-2009 financial crisis.

Armed PoliceEight policemen wearing dark

blue overalls and armed withhandguns were stationed in thebank’s lobby and appeared to becoordinating a high-profilesearch of the glass towers whichcan house up to 3,000 staff.The officers declined to com-

ment on the exact nature of theraids, which a person working inthe building said started at 0915CET (8:15 a.m. British time).In October, a financial source

familiar with the matter saidDeutsche had suspended ahandful of employees in connec-tion with an investigation into

by MICHAEL MORITZ, Wall Street Journal opinion column

After a seaside area has been designated aswilderness, when is it considered pristineenough by Washington’s standards? Is itafter airplanes have been banned from flying

over it? After electricity pylons and telephonecables have been removed, cars and bikers prohib-ited, the roads torn up? When hikers are forbiddenaccess to trails, and kayakers, sailors and snorkelersbanished from the water? When eucalyptus treesand other foreign species are eradicated? Or onlyafter Miwok Indians’ arrowheads have been exca-vated and placed in a museum?Apparently it is none of the above, at least

according to Secretary of the Interior Ken Salazar.Instead, he seems to think that turning a tiny por-tion of the lovely coastline of California’s MarinCounty (part of the National Seashore) into thefirst marine wilderness in the continental US alsorequires destroying a family-run oyster operationthat has conducted business in the same spot foreight decades.So, Mr. Salazar recently ordered the business to

close within 90 days — a decision that will spellruin for the Lunny family, owners of Drake’s BayOyster Farm, which supplies 40 percent of Califor-nia’s oysters.The Lunny family, which has made major

improvements to the farm operation it took over in2004, has been hounded for years by a NationalPark Service with a vendetta so chilling that anyrancher on federal lands should be alarmed. Goad-ed by a clutch of environmental groups, the ParkService has resorted to tactics that might havecome straight from Nixon’s dirty-tricks department.For instance, the Park Service alleged that thefarm’s oyster boats disturbed the quiet of the area,but the measurements used were revealed to havebeen taken in New Jersey — and involved jet skis.For years, Park Service officials have colluded

with the California Coastal Commission to ham-mer the small oyster company with allegations

about purported abuses and violations of some ofthe many overlapping, confusing and contradictorypermits with which it is supposed to comply.California Sen. Dianne Feinstein has for years

been sounding the alarm about the behavior of thePark Service. In a May letter to the California Fishand Game Commission, she outlined her worries —including a mention of the jet-ski episode — andsaid: “I became concerned about this issue when Ifound that the science regarding the impacts of theoyster farm had been manipulated, and that the oys-ter farm operator had been treated in a biased andunfair manner. The Park Service has repeatedly mis-represented the scientific record since 2006 to por-tray the farm as environmentally harmful, and it ismy belief that the Park Service is doing everything itcan to justify ending the oyster farm’s operations.”Unable to use its doctored studies to close the

farm, the Park Service changed tack and resortedto even more dubious arguments. It claimed that alease signed 40 years ago wasn’t renewable. Thereare only two snags with this argument.First, the lease doesn’t say that it isn’t renew-

able. Second, the congressmen who helped formthe Point Reyes National Seashore have firmlystated that their intention was to ensure the con-tinued operation of the small farms that were occu-pying the land. Yet the Interior Department hasignored the statements of former California Reps.Pete McCloskey (no staunch right-winger, by theway, but a pro-choice advocate and backer of stem-cell research and assisted suicide) and John Burton(a former California Democratic Party chairman).The Park Service ignored another inconvenient

fact: It doesn’t control fishing rights in the disput-ed area. Those are controlled by the State of Cali-fornia. So, the Lunnys sued Mr. Salazar, theDepartment of the Interior, the National ParkService and its director. Now a U.S. judge gets todecide whether the federal government can bullythis small business out of existence.

Mr. Moritz is chairman of Sequoia Capital.

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Before you plan your advertising budget, think hardabout how to stretch your dollars and where they are spentthe most efficiently. Are you paying more to reach fewerqualified potential customers than you would receive in the Digest? The Digest’s circulation is concentrated in themost important livestock producing states: Nebraska,Colorado, Wyoming, Montana, Utah, Idaho, California,Oregon, Washington and Texas.

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Welcome to the Salazar WildernessShame on the Interior Department for trying to drum a family-owned enterprise out of business

Supreme Court rulesgovernment may beliable for flooding

by ADAM RAMIREZ, findlaw.com

The Supreme Courtruled on recently thatthe federal govern-ment may be required

to pay damages when itreleases water from a damthat causes temporaryflooding for a propertyowner downstream.The 8-0 ruling carries

potential significance forfuture cases involving tem-porary seizure (or” taking”)of property.The case looked at the

politically charged issue ofwhen government activitythat affects private proper-ty constitutes a “taking”that requires payment to alandowner.The 5th Amendment

states that the governmentmust pay owners of privateproperty that it takes forpublic purposes.Writing for a unanimous

court, Justice Ruth BaderGinsburg said temporaryflooding of private land bythe government is “not cat-egorically exempt” from lia-bility under the 5th Amend-ment’s Takings Clause.

Deutsche Bank co-CEO drawn into CO2 tax evasion probetax evasion on carbon permits bytraders.The judge in that case sen-

tenced six men to jail. Hestopped short of prosecutingDeutsche Bank staff but notedthat the bank — through its con-duct — had left the door openfor tax evasion.A ring of traders was accused

of participating in a conspiracyto evade around 300 millioneuros (241.2 million pounds) invalue-added tax (VAT) on car-bon permits between August2009 and April 2010.Deutsche Bank said it was

cooperating fully with theauthorities and declined to com-ment on the arrests.“Public prosecutors searched

Deutsche Bank offices today inconnection with investigationsthat have been underway sincethe spring of 2010 against indi-viduals suspected of tax evasionin the trading of CO2 emissioncertificates,” Deutsche Bank saidin a statement.

Riding the CarouselThe European Union’s spot

carbon market was hit by so-called carousel trade in 2009 and2010, in which buyers importedemissions permits in one EUcountry without paying value-added tax (VAT) and then soldthem to each other, adding taxto the price and pocketing the

difference.To stop the problem of VAT

fraud in the EU’s emissions trad-ing scheme, in June the Euro-pean Commission activated anew common carbon registry toreplace some 30 national reg-istries with a single platform.Investigations are continuing

in other EU countries.Three British men were jailed

for a combined 35 years afterbeing found guilty of a 38-mil-lion pound carbon tax fraud,Britain’s revenue and customsagency said in June.Czech police accused two

men of a $20 million CO2 taxfraud in October.The European police agency

Europol estimates VAT fraud hascost EU states an estimated 5billion euros in lost tax revenue.The EU Emissions Trading

System, the bloc’s chief weaponagainst climate change, caps theemissions of factories and powerplants, forcing them to buy car-bon permits for additional emis-sions if needed while also allow-ing them to sell surpluses.Separately, Deutsche Bank is

set to cut staff at its U.S. andEuropean power and gas tradingdesks with up to 50 traders leav-ing the bank, and its global headof commodities, David Silbert, isalso to leave.

(Additional reporting by Alexander Huebner,Andreas Kröner, Vera Eckert and Nina Chest-ney; Writing by Jonathan Gould; Editing byDavid Cowell and Helen Massy-Beresford)

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 11

This producer specifically not-ed two issues that will affect theability of the beef industry torebuild: the loss of forage land tonon-agricultural (developmentand recreational) uses; and theconversion of pasture to cropproduction.While these and other issues

pose significant challenges torebuilding the beef cow herd, Ido believe there is ample capaci-ty to rebuild the cow herdaccording to the demands of themarket. That said, the questionof how and where it will done islikely to be different in the futurethan in the past.In the short run, the drought

is, of course, the major factoraffecting herd liquidation. Untilforage conditions improve, thequestion of herd rebuilding is amoot one. And while there is nocurrent indication of improvingdrought conditions, nor anyguarantee that conditions willimprove, it is likely that someregions, at least, will see improv-ing conditions in the comingmonths.The more regionally specific

drought in 2011 caused a 1.07million head decrease in beefcows in a single year in Texas,Oklahoma and the surroundingstates. Much of this region is stillin severe drought, with someareas, such as Arkansas, in con-siderably worse shape in 2012than in 2011. There has beensome improvement in droughtconditions in parts of east Texasbut little if any herd rebuildinghas taken place yet. Most all ofthis loss in beef cows can berecovered post-drought, thoughsome parts of the region will takeseveral years to fully recover.The impact of the 2012

drought has yet to be document-ed until the next USDA (U.S.Department of Agriculture) cat-tle inventory report is available. Iexpect to see another 400 to 500thousand head decrease in thebeef cow herd, spread across sev-eral states. I suspect this reduc-tion represents extra heavyculling of the cow herd and few-er heifers entering herds ratherthan the deep herd culling orherd dispersals that occurred in2011. Nevertheless, this is addi-tional herd capacity that canreturn rather quickly withimproved forage conditions.Land use issues affecting the

beef industry reflect long termtrends and on-going structuralchanges in U.S. agriculture.Concerns about developmentand recreational use of foragelands are common and under-

standable among many cattleproducers.Certainly in some areas, the

loss of pasture to small acreagedevelopment or for other non-agricultural uses is significant andnoticeable. However, about 30percent (571 million acres) of thetotal U.S. land area of 1.93 billionacres is rangeland, pasture ornon-cultivated cropland (mostlyhay). No doubt this includessome land used for recreationdespite being designated as agri-cultural. Another 810 millionacres (42 percent) is forest landor federal land, a significant por-tion of which is grazed or partiallygrazed by livestock.Thus, a majority of some

1.381 billion acres (72 percent)of the total land in the country isused exclusively or partially forlivestock, mostly cattle, produc-tion. This compares to 305 mil-lion acres (16 percent) used forcrop production; 33 million acres(1.7 percent in the ConservationReserve Program); 111 millionacres (5.7 percent) developed;and another 5.2 percent in watersurface and other rural uses.Land used for developmentincreased nearly 17 million acresfrom 1997-2007.Land diversion away from

agriculture is not a trivial matterbut does not represent a signifi-cant barrier to potential rebuild-ing of the cow herd, at least noton a national basis. The implica-tions of this issue certainly varyin some regions and are part of abroader set of regional changesin agriculture that will affect thebeef industry in the future. Thenext installment of this articlewill discuss how and where beefcow herd rebuilding will takeplace.

It Always Takes Longer Than You Think; We Are “Out of Cattle”

Exactly two years ago I wrotean article about the implica-tions of declining cattle num-

bers (“At What Point Do WeRun Out of Cattle”, Cow CalfCorner, November 15, 2010). Inthat article I suggested that aftermany years of herd liquidation,we had reached a point where itwas not possible to maintainbeef production without herdrebuilding. The article suggestedthat beef production would dropwithout herd rebuilding and thatherd rebuilding would squeezecattle supplies even more in theshort run. The article furthersuggested that the only possiblepostponement to those conse-

quences would be the temporaryone if more herd liquidationoccurred. Little did I know that Novem-

ber of 2010 was the beginning ofthe driest and warmest year inOklahoma and the SouthernPlains. The resulting cow liquida-tion and preempted herdrebuilding that occurred in 2011and 2012 bring us to this pointwhere the impacts I anticipatedmany months ago are now uponus. Feedlot placements havedropped sharply the last fourmonths and feedlot inventoriesare declining and will continue todecline in the coming months. Inmy mind the bigger question isnot why we have such a dramaticdecrease in feeder cattle suppliesnow but why it has taken so longfor the situation to manifestitself. I believe there are severalreasons.The biggest and most obvious

one is two years of droughtwhich provoked additional liqui-dation, and postponed heiferretention thereby moderatingdeclining overall cattle numbers.It seems to me that drought andhigh cattle prices the last twoyears have had the effect ofbringing cattle “out of the bush-es” in a way that we have notseen for many years and may notbe fully reflected in the cattleinventory data. Another factor isveal calf slaughter, which is aminor part of the total, butresponds as you would expect inthese conditions. Veal slaughterdecreased about 11 percent from2008 to 2011 and is on pace todecrease another 11 percent in2012. Compared to 2010, thedecrease in veal slaughter thepast two years has added roughly120,000 head to feeder supplies.Finally, feeder cattle importsfrom Mexico and Canada haveaugmented declining U.S. feedersupplies since 2009. In the lasttwo years, increased feeder cattleimports have boosted feeder sup-plies by roughly an additional300,000 head. In the first half of2012, Mexican imports werecontinuing that trend with arecord pace of drought forcedsales of cattle. As we move into 2013, some

things about cattle supplies aremore clear and some are stilluncertain. What’s clear is thattwo more years of liquidationhave put the industry in an evendeeper hole with respect to feed-er supplies. The 2013 U.S. calfcrop will be the smallest since1942, based on my estimates.What is also clear is that feedercattle imports will drop dramati-cally. Mexican cattle importshave decreased sharply in late2012 and may decrease feedersupplies in 2013 by 600 to 800thousand head year over yearcompared to 2012. What isunclear is the drought question.Continued drought will moder-ate the short run effect by pro-voking more liquidation andpostponing heifer retention. Ifdrought conditions improve,herd inventories will stabilize

and some heifer retention maybegin in 2013. Feedlots have not only placed

fewer cattle but recent place-ments have been heavier weightand will move through feedlotsfaster. It will be increasingly dif-ficult to find placements to fol-low current feedlot inventories.A significant decrease in cattleslaughter and beef production isunavoidable in 2013 and 2014.Continued drought may contin-ue to impact the timing some-what, but any short run modera-tion of tighter supplies due todrought liquidation will be at theexpense of more drastic impactslater; just as the situation now ismore drastic than it was twoyears ago.

Cow herd reduction is geographically uneven:

Adramatic jump in demandfor corn, which began in late2006, has resulted in sharply

higher prices for all crops in theU.S. A simple average across theeight major cultivated cropsshows that 2012 crop year pricesare expected to be 165 percenthigher than in 2005.This has provoked intense

competition among crops forland resources with crop marketprices doing short-term battleeach year for acreage to plant.The epicenter of this crop frenzyis naturally in the Midwest and isreflected in the phenomenaljump in land values and rentalrates in the region.Longer-term impacts on land

use are also expected as a resultof this new agricultural environ-ment. Though data is limited,there are strong indications thatthese long term changes havebegun and they have significantimplications for the beef cattleindustry.The 2007 Natural Resources

Inventory (NRI) showed that inaddition to 305 million acres ofcultivated cropland, an addition-al 119 million acres are used forpasture, along with 52 millionacres of non-cultivated cropland(mostly permanent hay).These 171 million acres of

pasture and “hay” land arearable, meaning they can befarmed. A majority of these acresoccur in and around the majorcropping areas and generally inthe eastern half of the country.

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FEATURING THE . . .

continued on page twelve

Will the cows come home?Commentary by DERRELL S. PEEL,Oklahoma State University Extension Livestock Marketing Specialist

Editor’s note: Peel is a noted expert in the field of international beef tradeand the livestock sector. It is reprinted here with Peel’s permission.

Can we rebuild the beef cow herd?

That was the question posed to me by a producer in response tomy recent article suggesting that two years of drought liquida-tion, on top of previous liquidation, has pushed the beef cattle

inventory so low that we are effectively “out of cattle” in terms of ourability to maintain beef production and rebuild the cow herd.

Page 12 Livestock Market Digest January 15, 2013

These acres do not includeanother 400 million acres ofrangeland (plus forest and feder-al lands) that are not arable.Rangeland is mostly located inthe drier central and westernregions of the U.S.Though converting perennial

pasture and hay crops to cultivat-ed crops is not an easy or quickprocess, high crop prices will logi-cally attract some of these acresfor cultivated crop productionover time. At this point there islittle data to confirm how muchpasture and hay land is being con-verted to crop production. The2012 NRI and Agricultural Cen-sus data (which will be availablein several months) are expected toprovide the first documentationof a process that is likely to con-tinue for many more years.In the absence of land use

data, changes in cattle invento-ries across states already indicatesome of the anticipated regionalimpacts of high crop values.

From Jan. 1, 2007 to 2012, theU.S. beef cow herd decreased by2.76 million head or 8.5 percent.The decrease is much more pro-nounced in the Midwest and sur-rounding regions, including thestates of Illinois, Indiana, Iowa,Minnesota, Missouri, Kentuckyand Tennessee. In these states,the five-year decrease in beefcow inventory ranged from 11.4percent to over 22 percent withan average of a 14.2 percentdecrease.By contrast 12 states in the

Great Plains and Rocky Moun-tain regions experienced beefcow herd changes that rangedfrom an increase more than 5percent to a 7.5 percent decreasewith an average of 2.6 percentdecrease across the region. Texasand Oklahoma experiencedsharp decreases from 2011 to2012 due to drought but had asimilar 3.1 percent decrease inthe 2007-2011 period.This indicates that the beef

cow herd is decreasing more rap-idly in regions where competi-tion with crops is greater. As aresult, an increasing share of thetotal beef cow herd will be locat-ed in drier regions of the countryin the future. Interestingly, thissame phenomenon is occurringin other major beef producingcountries such as Brazil, Argenti-na, Uruguay and Paraguay andfor the same reasons.Depending on their location,

it is not surprising that some cat-tle producers see less potentialfor herd rebuilding than others.Beef cow herds are less likely torebuild in major crop productionregions while predominantly for-age areas have considerablepotential for herd expansion.There is little doubt that some

of the most productive pastureand hay land is being convertedfor crop production which high-lights the challenge of rebuildingthe beef cow herd in more mar-ginal areas.However, high crop prices

increase forage value as well andthat changes the incentives forhow land is used and managed.Forage production, even on range-land that does not compete direct-ly with crop production, is worthmore now. Many years of cheapgrain kept forage values low andthe result is that forage produc-tion and use has not been man-

aged as efficiently as it can be.Increased forage value opens

up a wide variety of possibilities,in many regions, to manage for-age for greater productivity andto manage forage use more effi-ciently.The dramatic increase in use

of corn crop residue the last twoyears is one example of theresponse to these incentives.Two other examples includereducing hay wastage fromround bales and, in Oklahomaand similar areas, more RedCedar control to increase forageproduction. In many regions ofthe country there is considerablepotential for adoption of newforages and new forage systemsto increase cattle productionand/or extend grazing seasons.This continuing discussion of

the challenges and opportunitiesfor rebuilding the U.S. cattleherd will continue in Part 3 witha discussion of who will rebuildthe cow herd.

Aging cattle rancher willimpact cattle herd rebuild

� Older producers: It is peo-ple . . . the cattle producers . . .who make it happen and are thekey to rebuilding the beef cowherd and expanding cattle inven-

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continued on page sixteen

by JILL J. DUNKEL

Information leads to improvement. Take the Iowa Tri-Coun-ty Steer Carcass Futurity (TCSCF) and its cooperators as acase in point.For 30 years the program has helped facilitate dataflow for

producers of every size, and a recent analysis shows cattle aregetting better. That’s because many of the 1,000 cowherdoperators in 23 states and Canada who fed 230,000 calveswith TCSCF over the years used the feedlot and carcass datein selection and management decisions.“With this information, they produce healthier, more

docile cattle that gain better, grade better and are more prof-itable,” says futurity manager Darrell Busby.The share of Angus-sired cattle in the database was strong

in 2002, at 84.4 percent, but that moved up to 89.1 percentlast year. More recently, the black-hided cattle gradingChoice increased from 70.8 percent in 2007 to 78.72 percentin 2011 as Prime grades moved up and Select grades droppedoff considerably.Busby says management changes on the ranch and minor

adjustments in futurity feeding strategies may have helpedthat along. However, the biggest impact comes fromimproved genetics, he says.“That shows up in our sire summary. Some of the top AI

(artificial insemination) sires in the country are in the top ofour sire summary. People are moving to better genetics,” Bus-by says. “And it doesn’t matter what zip code the calves comefrom. The genetics work anywhere from North Dakota tosouthern Georgia.”Gary Fike, beef cattle specialist with Certified Angus Beef

LLC (CAB), and a member of the TCSCF board, notes feed-yard delivery weights over the last 10 years increased from629 pounds (lb.) to 655 lb. as final carcass weights moved upin step.“Emphasis on genetic selection for growth is part of that

shift, and the Angus breed has definitely played a role there,”he says. “Also, with the cost of feed where it is, cattle are stay-ing on grass, wheat pasture or some other lower-cost foragebefore they enter the feedlot. Heavier in, heavier out.”That could be giving cattle more chance to reach their

quality grade potential. Looking at a sub-group in the study— cattle fed at CAB-licensed feedlots — marbling scoresincreased by almost 30 points in the last 10 years.

Better by knowing

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 13

The Red Meat Club of Den-ver’s annual dinner, pro-moting the red meat andlivestock industries, is set

for Thursday, January 17, 2013at the National Western Club.The coveted Friend of the

National Western Stock Showand Red Meat Industry awardwill be presented this year to Dr.Robert Kelly Shideler of Mana-cos, Colo. Dr. Shideler’s contri-bution of time, talent, and lead-ership to the National WesternStock Show and to the North-west Scholarship Trust, has setthe standard for other volunteerleaders and will continue to posi-tively impact the lives of youngpeople for many years to come.Dr. Bob, as he is known by his

many friends, has been aroundthe National Western StockShow since the day he was bornin 1923. “I was raised on ranchesin Western Colorado and havealways been closely associatedwith the ranching world,” saidShideler. He went on to say hisfather, Marvin Shideler, was theranch manager at Crystal RiverRanch in Carbondale, Colorado.

Mr. Shideler attended Col-orado A&M to study AnimalHusbandry, he finished hisdegree in Veterinary Medicine.He practiced 25 years in privateveterinary services, predominant-ly with horses and cattle. Thisincluded feed lot and cattle herdpractice primarily in large regis-tered Hereford and Angus farms,as well as, general equine, andreproductive technology.Mr. Shideler’s community serv-

ices include organizations such asSt. Luke’s Episcopal Church,CSU Alumni, Roundup Riders ofthe Rockies and the NationalWestern Stock Show Associationas a director and chairman of theScholarship Trust. Dr. Schideleralso served our country in the U.S.Navy for over two years in theSouth Pacific, including opera-

tions in Okinawa, Iwo Jima, andthe Philippines.The featured speaker for the

evening is Andrew Gottschalkowner of HedgersEdge.comLLC and Sr. Vice President, RJO’Brien & Associates. Mr.Gottschalk attended Ft. HaysState University and majored inEconomics. He has been a Live-stock Market Analyst and brokerfor the past 40 years, providingboth long-term and short-termfundamental, technical marketanalysis and risk managementservices to clientele ranging fromindividual producers to many ofthe nation’s leading agribusinesscompanies. His clientele com-prise the full spectrum of thebeef and food industry. He is afrequent speaker at various beefindustry “Situation & Outlook”and “Risk Management” forumsthroughout the U.S. He is a fre-quent presenter at FederalReserve Bank Agricultural Out-look Forums. He is also a directparticipant in agriculture, beingthe second generation of hisfamily involved in beef cattle andgrain production.

glut of oil in the region.“No one expected output to

grow by a million barrels per daylast year,” Francisco Blanche,Merrill’s head of commodityresearch, said in a press briefingin New York. “No one.”As a result, CNN Money

reports, oil has been accumulat-ing in Cushing, Okla. – home tothe convergence of severalpipelines and dozens of oil stor-age tankers that act as the deliv-ery point for the most commonlyquoted U.S. oil price, WestTexas Intermediate.Some independent oil price

analysts expect U.S. crude oilprices to fall $10 per barrel dur-ing the first quarter of 2013,leaving prices in the mid-$70s.Crude oil traded recently at

$86.80 per barrel in New York,

up $.01 per barrel from the pre-vious day. Brent crude traded inLondon at $109.67 per barrel, again of $1.66 per barrel.Gasoline and diesel prices

continued moving lower, accord-ing to the Energy InformationAdministration. Recently, theaverage price for unleaded gaso-line in the U.S. was reported at$3.45 per gallon, down 4.5 centsfrom the previous week. AverageU.S. diesel prices were $3.99 pergallon, down 3.6 cents per gallonfrom the previous week.Given the relatively gloomy

outlook for oil prices in the U.S.,Blanche suggested the U.S. gov-ernment may have to approveexports of West Texas Intermedi-ate if it wants the oil boom tocontinue, as $50 a barrel isbelow the cost of production.

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2013 Friend of the National Western HonoreeDr. Bob Shideler will be honored by the Red Meat Club of Denver as the 2013 Friend of the National Western Stock Show beginning at 6:00 p.m. on

January 17, 2013. The annual dinner will be at the National Western Club and the $30 per person tickets may be

purchased by calling 303/299-5556.

U.S. oil glut makes $50 oil a possibilityGREG HENDERSON, Editor, Assoc. Publisher, Drovers CattleNetwork

America’s booming oilindustry could help pushoil prices lower over thenext few years, and some

analysts claim $50 per barrel oilis a possibility.CNN Money reports that

analysts at Bank of America

Merrill Lynch expect U.S. oilprices to average about $90 perbarrel over the next two years,but prices could sink to the $50level at some point during thattime frame. The Merrill analystsalso said global oil prices, whichmore closely dictate the price ofgasoline in the United States, areexpected to remain high asgrowth in global oil supplies lags

population growth and economicoutput.The drop in U.S. oil prices

would likely be temporary, CNNMoney reports, caused by thedifficulty in moving hugeamounts of new oil from placeslike North Dakota’s Bakkenshale or Texas’ Eagle Ford tomarket. New production fromthose areas has already led to a

To place your Real Estate Guide listings, contact RANDY SUMMERS at 505/243-9515 or at randy@aaalivestock.com

Page 14 Livestock Market Digest January 15, 2013

Farms & Ranches

AgrilandsREAL ESTATE

541/473-3100JACK HORTON

www.agrilandsrealestate.com

BOTTARI REALTY • WELLS, NEVADA

Bottari RealtyPAUL D. BOTTARI, BROKER

www.bottarirealty.com • paul@bottarirealty.com775/752-3040 • Cell: 775/752-0952 • Fax: 775/752-3021Bottari Realty & Associates • 1222 6th St., Wells, NV 89835

OUT WEST REALTY NETWORK AFFILIATE

113 RANCH NEAR PANACE, NEV.: Approximately 632 deededacres of which approximately 500 acres are irrigated with center pivots

and 4 shallow irrigation wells. This area of Nevada typically getsaround 7 tons per acre per season. The property has exceptional

improvements including a 4,000-ton hay barn; a 3,000+ sq. ft. home onone level with covered porch full-around. Other improvements include a concrete horse barn with stalls inside and out; a large shop/storagebuilding; a large garage near home—large enough to house a motorhome and approximately 8 cars; a 400-head feedlot with concrete

bunks, scales and chutes and alleys. Price: $2,800,000

For more information and other properties, check out our website at www.bottarirealty.com

MR.COWMAN!Come to Our Country!WORKING COW andHORSE RANCHES

CUT OVER TIMBER LAND, LAKES and STREAMS

Write or call for free publication:

CASCADE REAL ESTATE10886 Hwy. 62 • Eagle Point, OR 97524

1-800/343-4165E-mail: deuprees@yahoo.com

DAVID P. DEANRanch: 432/426-3779 • Mob.: 432/634-0441

Campo Bonito, LLCR A N C H S A L E S

P.O. Box 1077 • Ft. Davis, Texas 79734

NEED RANCH LEASES andPASTURE FOR 2013!

New Mexico/ West Texas Ranches

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SOLD

TEXAS & OKLA. FARMS & RANCHES

Joe Priest Real Estate1205 N. Hwy 175, Seagoville, TX 75159

972/287-4548 • 214/676-69731-800/671-4548 • Fax 972/287-4553

joepriestre.net • joepriestre@earthlink.com

• 735 acres Paris, Texas, excellent pasture,paved road frontage, huge lake, mansionhome. $2,750,000.

• 274 acres in the shadow of Dallas. Secludedlakes, trees, excellent grass. Hunting & fishing,dream home sites. $3,550/ac. Can add 300more acres, only 30 miles out of Dallas.

• 98.2 acres Dallas Co., $375,000. SOLD• 256 Acre Texas Jewel – Deep sandy soil, high-rolling hills, scattered good quality trees, & ex-cellent improved grasses. Water line on 2 sidesrd., frontage on 2 sides, fenced into 5 pastures,5 spring fed tanks and lakes, deer, hogs &ducks. Near Tyler & Athens. Price $1,920,000.Make us an offer!

• 146 horse, hunting cattle ranch N. ofClarksville, TX. Red River Co. nice brick home,2 barns, pipe fences, good deer, hogs, ducks,hunting. PRICE REDUCED to $375,000.

• 535 ac. Limestone, Fallas, & Robertson coun-ties, fronts on Hwy. 14 and has rail frontagewater line, to ranch, fenced into 5 pastures, 2sets, cattle pens, loamy soil, good quality trees,hogs, and deer hunting. Priced reduced to$1,750 per ac.

• 10 Wooded Acres with a 6-bedroom, 3.5 bathand a 2-car garage and shop for $185,000,owner financed with 10% cash down.

• 134 acres Wortham, Texas, $1,750/ac. Hunt-ing and cattle. Fronts FM Hwy.

INTEREST RATES AS LOW AS 3%. PAYMENTS

SCHEDULED ON 25 YEARS

�������������

JOE STUBBLEFIELD & ASSOCIATES13830 Western St., Amarillo, TX • 806/622-3482

Cell 806/674-2062 • joe3@suddenlink.netMichael Perez Assocs

Nara Visa, NM • 575/403-7970

Missouri Land Sales� 675 Ac. Excellent Cattle Ranch, Grass Runway, Land Your OwnPlane: Major Price Reduction. 3-br, 2ba home down 1 mile private land.New 40x42 shop, 40x60 livestock barn, over 450 ac. in grass. (Owner runsover 150 cow/calves, 2 springs, 20 ponds, 2 lakes, consisting of 3.5 and 2ac. Both stocked with fish. Excellent fencing. A must farm to see. MSL#1112191

� NEW LISTING, 327 ACRES: Cattle/horse ranch. Over 225 acres ingrass. 3/4 mile State Hwy. frontage. Live water, 60x80 multi-function barn. 2-bedroom, 1-bath rock home. Priced to sell at $1,620 per acre. MLS #1204641

� 483 Ac., Hunter Mania: Nature at her best. Don’t miss out on this one. Live water (two creeks). 70+ acresopen in bottom hayfields and upland grazing. Lots of timber (marketable and young) for the best hunting andfishing (Table Rock, Taney Como and Bull Shoals Lake) Really cute 3-bd., 1-ba stone home. Secluded yes, buteasy access to Forsyth-Branson, Ozark and Springfield. Property joins National Forest. MLS#1108090

See all my listings at: paulmcgilliard.murney.com

PAUL McGILLIARDCell: 417/839-50961-800/743-0336

MURNEY ASSOC., REALTORSSPRINGFIELD, MO 65804

Selling New

Mexico

RICHARD RANDALSQualifying Broker

TOM SIDWELL Associate Broker

We may not be the biggest, the fanciest or the oldest but we are reliable and

have the tools.

O: 575/461-4426C: 575/403-7138F: 575/461-8422

E: nmpg@plateautel.net

www.newmexicopg.com

615 West Rt. 66Tucumcari, NM 88401

LLC

6221 QR AL Tucumcari, NM. 3 bedroom brickhome with 80± acres is located 5-1/2 miles East ofTucumcari. Of the 80± acres, 50± acres has ArchHurley Conservancy District surface water rights. Barnand guest house. Price $275,000.

Pajarito Farm. There is a total of 73.90± acres. Ofthe 73.90± acres, there is 40.45± of Arch Hurley sur-face water rights. Live water on this property, thePajarito creek. Wildlife, whitetail and mule deer, wildturkey. Tucumcari, NM. Price $120,000.

Western Drive Stables. 24 years established HorseMotel, very nice and well maintained property. Thereis a home, 3,000 square foot barn with stalls and4.20± acres. The stalls are very nice. There are stallswith run/semi-covered and boxed stalls and turnouts.Tucumcari, NM. Price $350,000.

REAL ESTATE COMPANY

PRICEREDUCED!

Scottand co.L

Ben G. Scott – BrokerKrystal M. Nelson – N.M. Qualifying Broker

800-933-9698 day/evewww.scottlandcompany.com • www.texascrp.com

1301 Front Street, Dimmitt, TX 79027

LOW ROLLING PLAINS OF TEXAS: 10,500± ac.,large lake w/permits for dam and right-to-impound inplace to add tremendous esthetic quality to the ranchtogether w/hunting, boating, fishing and commercialand residential development potential. Please call fordetails!

CAPITAN FOOTHILLS RANCH: A 600+ cow ranch on40 sections of choice ranch land w/excellent homes,barns, pens, livestock water and fences. A workingranch with improvements in top-notch condition on anall-weather road nestled in the foothills of the CapitanMountains w/rolling hills, canyons and large valleys.

UNION CO., N.M.: Amistad area, 960 ac. w/612 ac.formerly under pivot irr., currently in CRP for 10 yrs. @$45.60/acre, approx. 130 ft. of water in the hole, 6 irr.wells, pivot pads & underground pipe, all-weather road.

Ranch and Farm Real Estate

Check our websites for info. on this property

and many others.

For more information, visit us on Facebook, or visit our website at:

sites.google.com/site/corralescottonwoodrealty/

CORRALES COTTONWOOD REALTY Cell: 505/507-2915Fax: 575/838-0095

P.O. Box 1903, Socorro, NM 87801

DON BROWN, Qualifying BrokerEmail: dbrown@socorroplazarealty.com

SOCORROPLAZAREALTY

116 PlazaSSOOCCOORRRROO CCOOUUNNTTYY

HHOORRSSEE FFAARRMMIn the Rio Grande Valley.Custom-built home with

100 acres of irrigated land.House has approximately3,700 sq. ft., 4 bedrooms,and 2 baths. One hour from Albuquerque Int’lAirport. Close to 5

racetracks: Sunland,Ruidoso, Albuquerque,

Santa Fe and Farmington.

W-RRANCH

18,560 ACRES20 MILES NORTHEAST

OF ROSWELL, N.M.

CHARLES BENNETTUnited Country / Vista Nueva, Inc.575/356-5616www.vista-nueva.com

� 680 Deeded Acres

� 17,900 State Lease Acres

� 927 BLM Acres

� 300 Animal Units Year Long

� Good fences; 4-strand barbwire

� Newly remodeled Southwestern Home

� Good water; windmill and submergible tanks

� $1,800,000

THE LIVESTOCK MARKET DIGEST

Real Estate GUIDEThe Dunes

Sagebrush Lizardby CHARLIE PAINTER, New Mexico Department of Game and Fish

How can society balanceits needs for non-renew-able natural resources,biodiversity, and ecosys-

tem services? The globaldemand for energy hasincreased by more than 50 per-cent in the last half-century,and a similar increase is pro-jected between 2007 and 2030.Energy production to meet thisdemand has resulted inincreased land fragmentation,with predictable consequencesfor species whose habitats aredegraded. Although how weattempt to strike a balance iscontroversial, almost everyoneagrees that without thoughtfulmanagement that takes intoaccount needs of energy pro-ducers, ranchers, and biodiver-sity, unplanned land fragmenta-tion will continue to erode our

natural landscapes. What les-sons have we learned from therecent two-year case that endedwith a decision not to list theDunes Sagebrush Lizard asendangered?The Dunes Sagebrush

Lizard has a limited range inthe American Southwest,among the smallest of anyNorth American lizard. Itoccurs only in Shinnery Oaksand dunes in the MescaleroSands of southeastern NewMexico and the MonahansSandhills in adjacent Texas atelevations from 2,540 – 4,600feet. In New Mexico, popula-tions of the species are found insmall parts of Chaves, Eddy,Lea, and Roosevelt countiesthat contain shinnery oak sanddunes. In Texas, populationsoccur in parts of Andrews,Crane, Gaines, Ward, and Win-

continued on page fifteen

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 15

kler counties. The shinnery oak sand dune habitatoccurs over approximately 308 sq mi; however, thespecies has a high likelihood of occurring in onlyabout half of this area.Dunes Sagebrush Lizards are most active from

mid-April through October, and usually live 3-4years. Activity peaks during May and June whenthe lizards are courting and defending territories,then declines as summer temperatures rise. Adultsaverage about 2.2 inches body length, with femalessmaller than males. Mating occurs from May toearly July and females produce one or two clutchesof 3-6 eggs each year in June and late July. Nestsand nesting sites have been found by trackingfemales outfitted with tiny radio transmitters.Females move out of their immediate home rangeto nest, and construct nests about 7 inches deep inthe loose sand at the interface between moist anddry sand. Hatchlings first emerge in mid July.Dunes Sagebrush Lizards feed on a variety ofground dwelling invertebrates, including spiders,ants, beetles, grasshoppers, and crickets.Dunes Sagebrush-lizards are extreme habitat

specialists. They only live in sand dune complexesdominated by Shinnery Oak and Sand Sage withnumerous sand dune blowouts. They have a strongaffinity for the open blowouts and do not occur inShinnery Oak flats or other habitat types. Dunes

January 15, 2013 “America’s Favorite Livestock Newspaper” Page 15

Sagebrush lizards are well adapted to living in loosesand. They readily dive into the sand as an escapebehavior, and often sleep buried under sand.Radio-tagged individuals have been observed tomove several feet underneath the sand.In June 2012, the federal listing proposal was

withdrawn, based on the optimism of some thatthreats to the species would be alleviated by theNew Mexico Candidate Conservation Agreementand Candidate Conservation Agreement withAssurances, the Texas Conservation Plan, and theBureau of Land Management’s Resource Manage-ment Plan Amendment. A common goal of theseagreements is to ensure the conservation of theunique ecosystem found in the Mescalero-Mona-hans sandhills while reducing economic impacts ofthe conservation measures. However, these agree-ments are not legally binding and their successdepends on cooperation of ranchers, oil and gascompanies, government agencies, and others. Per-haps the biggest incentive for the plans to work isthat if they don’t, the species could be consideredfor Emergency Listing under the Federal Endan-gered Species Act. Meanwhile, adoption of theplans is fostering habitat avoidance, land manage-ment practices, and important research and moni-toring. Regardless of the path taken to conservethe Dunes Sagebrush Lizard and the Mescalero-Monahans Sandhills, continued and lasting coop-eration will be necessary to achieve conservation ofthe species throughout its range.

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Working to Protect the Rich Tapestry of the West

The lesser prairie chicken isan iconic grassland grousespecies native to parts ofColorado, New Mexico,

Texas, Kansas and Oklahoma.However, long-term populationdeclines have brought state andfederal agencies together in anattempt to better manage lesserprairie chickens and their habi-tats. Through a multi-state collab-orative effort, the first statistical-ly-valid, range-wide pop u lationestimate for the lesser prairiechicken has been produced,according to the Western Associ-ation of Fish and Wildlife Agen-cies’ (WAFWA) Grassland Initia-tive. The rangewide lesser prairiechicken population is estimatedat 37,170 individuals.The WAFWA Grassland Ini-

tiative collaborated with theLesser Prairie Chicken InterstateWorking Group, which is com-posed of biologists from state fishand wildlife departments withinthe range of the species, theBureau of Land Management,and West Ecosystems, Inc. ofLaramie, Wyoming, to conduct alarge-scale, helicopter-based sur-vey of lesser prairie chicken leksacross all five states. Leks aresites that the birds come to everyspring for breeding. These sur-veys occurred from March-Mayand encompassed more than300,000 square miles.Survey results will be the base-

line for a range-wide lesser prairiechicken management plan cur-rently being developed by the five

state wildlife agencies in collabo-ration with the WAFWA Grass-land Initiative. This plan is expect-ed to be completed by March2013, and could influence theU.S. Fish and Wildlife Service’s(Service) decision on whether ornot to designate the lesser prairiechicken as a federally threatenedor endangered species. The lesserprairie chicken has been consid-ered a candidate under theEndangered Species Act (ESA)since 1998, and the Serviceexpects to release a proposed ruleon the status of the bird under theESA in November 2012.While the lesser prairie chick-

en population estimate mayappear low, biologists are encour-aged by what they found. Thesurveys this spring detected sev-eral previously unknown leks,despite severe drought condi-tions across the region last year.They also discovered leks inKansas beyond what was thoughtto be the northern limit of thehistoric range of the species.Lesser prairie chicken numbershave been largely increasing inKansas for the last 15 years,while populations have declinedin parts of the southern portionof the range. Biologists believethis expansion may represent anorthward shift in the populationof the species caused by climaticconditions associated withchanging precipitation patterns.“Historically, we saw habitat

conditions like we are observingnow in the 1930s, and we

thought the species went extinct”,said Bill Van Pelt, WAFWAGrassland Coordinator. “Howev-er, with habitat conservation pro-grams being implementedthrough various Farm Bill pro-grams and Candidate Conserva-tion Agreements under theEndangered Species Act, we areseeing lesser prairie chickensmaintaining themselves and evenexpanding into new areas in someparts of their range. This definite-ly boosts our confidence in com-ing up with a plan to maintainthis species”, concludes Van Pelt.

Source: Western Association of Fish & WildlifeAgencies.The final survey report is available athttp://www.wafwa.org/html/aerial_surveys.shtml.

Lizard continued from page fourteen

First ever statistically valid range-wide population estimate for Lesser Prairie Chicken

MARKET

Don’t Miss a Single Issue!

If you’re moving or changing your mailing address, please send your name, old address, AND new address to: LIVESTOCK MARKET DIGEST, P.O. Box 7458, Albuquerque, NM 87194, or fax to: 505/998-6236

Change of AddressInstructions

To place your ad here, contactRANDY SUMMERS at 505/243-9515, or at

randy@aaalivestock.com

Page 16 Livestock Market Digest January 15, 2013

tories. As with the land use andregional components, there areboth challenges and opportuni-ties with regards to the producerissues in the beef industry.Like farmers of all types, cat-

tle producers have been aging asa group for many years. USDAdata from 2011 indicates thatamong the 654,000 cattle farmsin the country, 37 percent areoperated by producers 65 yearsof age or older and another 29percent are operated by produc-ers aged 55-64. Together thesetwo age groups operate 64 per-cent of land used for cattle pro-duction. This includes 118.4 mil-lion acres by the 65+ producers,66 percent of which are the full

owners of their farms. In manycases there are no family heirsinterested or able to take overthe operation.These demographics suggest

that a significant amount of assetturnover is inevitable in the nextdecade. In the meantime, oldercattle producers, like many farm-ers, often don’t really retire andexit the industry but rather tendto “retire in place” by remainingon the farm and gradually scalingback their operations.Older producers, on average

more financially secure, canafford to cut back by reducingcattle numbers or switching toless labor intensive enterprisesaccording to their health situa-

tion and labor ability. The latestUSDA data confirms that cattleproducers over 65 years of agehave a per farm value of produc-tion that is 43 percent less (25percent less on a per acre equiva-lent basis) compared to the aver-age value of production of allcattle farms.In the most recent data, aver-

age farm size for these older pro-ducers has dropped to roughly75 percent of the average of allcattle farms. Previous data hadindicated that farm size for theolder producers was only 8-10percent less than average. It ispossible that asset turnover inthe cattle industry has accelerat-ed recently.The combination of these pro-

ducer demographics and thedrought creates a unique situa-

tion in the cattle industry. Thedrought has forced many of theseolder producers to partially ortotally liquidate their herds. Someof these older producers are notinclined to or will not be able torebuild their cattle operations.The drought is forcing some pro-ducers to face the inevitable deci-sions about exiting the industrysooner rather than later.

� Young producers: At theother end of the producer spec-trum are young producers tryingto get started.The challenges for beginning

producers have existed for manyyears but have arguably neverbeen greater than now. Asset val-ues are record high and the capi-tal requirements greater thanever.The oversight of agricultural

This sale offers you some of the highest quality Brangus in the Southwest! The “good doing” kind.

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AT ROSWELL LIVESTOCK AUCTIONROSWELL, N.M. • 575/622-5580

Cattle may be viewed Friday, Feb. 22, 2013at Roswell Livestock Auction

Gayland Townsend . . . 580/443-5777, MOB. 580/380-1606 Troy Floyd . . . . . . . . . . . . 575/734-7005, MOB. 575/626-2896Bill Morrison . . . . . . . . . . 575/482-3254, MOB. 575/760-7263Joe Lack . . . . . . . . . . . . . . . 575/267-1016Larry Parker . . . . . . . . . . . 520/845-2315, MOB. 520/845-2411

TO RECEIVE A CATALOG CONTACT: Bill Morrison: 575/482-3254 • C: 575/760-7263

To Consign Top Females Contact: Gayland Townsend: 580/443-5777 • C: 580/380-1606

Saturday, February 23, 2013 at 10 a.m.

Brangus and Angus Plus Bulls• Most with EPDs• Registered and Commercial• Fertility- , TB-, and Brucellosis-tested• These bulls have been bred and raised under Southwest range conditions.• Most bulls rock-footed• Trich-tested to go anywhere

Females. . .• Registered Open Heifers • Registered Bred Heifers and Bred Cows• Bred Cows and Pairs – 3- to 7-yrs.-old• Bred Heifers – Coming 2-yr.-olds• Open Yearling Heifers

FOR INFORMATION CONTACT:

Roswell Brangus Bull

& Female Sale22nd Annual22nd Annual

Saturday, February 23, 2013 at 10 a.m.

Cowherd continued from page twelvelenders under new regulations isconsiderably more stringent thanin years past and adds to the dif-ficulty of qualifying young pro-ducers for loans, even in caseswhere the lender is willing. Cat-tle producers, perhaps to an evengreater extent than farmers ingeneral, view asset ownership aspreferred and one of the marksof success in the cattle business.And yet, for young producers,

asset control is what is importanteven if asset ownership is notpossible. Leasing and other busi-ness arrangements may be morefeasible and necessary for a newgeneration of cattle producersthan asset purchase.One of the impacts of the

drought is that older producerswho have been forced to liqui-date herds may be more interest-ed in leasing land to youngerproducers and that may be a keyto herd rebuilding and revitaliz-ing productivity in the cattleindustry.

� In the middle: In betweenthe older and beginning produc-ers are many producers who aresimply trying to survive thedrought and continue with theirbusiness operations.The majority of producers

who have been forced to liqui-date cattle have received goodprices and did not lose a greatdeal of value on the sales. How-ever, high feed and other inputcosts in 2011 and 2012 meanthat producers have, in manycases, used the proceeds ofdrought sales to cash flow con-tinued operations.These producers will likely

face difficulties financing herdrebuilding when the opportunityarises. Replacement cow andheifer values will be record high.Producers must be careful

during the drought to preserveenough equity with which torebuild herds. Producers whohaven’t yet done so should devel-op a drought management planand a drought recovery plan,which incorporates the businessand resource requirements tosurvive the drought and be ableto rebuild later.The cattle industry today is

smaller than it needs to be. Thelast two years of drought havepreempted the beginning of herdrebuilding and pushed the indus-try to extremely limited cattleinventories. The drought holdsthe key to when, and to someextent how and where, herdrebuilding will take place.At the same time, the eco-

nomic environment of the cattleindustry has changed dramatical-ly in recent years. New demandson agriculture and rising cropvalues puts a stronger foragefocus on the beef industry andhas significant regional implica-tions on where cattle productionwill be located.The how, where and who of

the cattle industry is changing inmany respects but unprecedent-ed cattle and beef prices confirmthat market demand, bothdomestically and internationally,offers opportunities and will sup-port rebuilding the beef cowherd, although to what level is asyet uncertain.