Congressional Schedule: The House of Representatives reconvened this week on Tuesday, January 15^{th. The Senate is scheduled to reconvene next week on January 22nd.}

Ag Economists Wary of Market Trends: As thousands of cattle producers convene in Reno next month for the 2008 Cattle Industry Annual Convention, discussions won’t just be focused on the Farm Bill and country-of-origin labeling.

Many U.S. cattle producers are feeling the pinch of rising feed prices and falling cattle prices. Economists across the ag sector are attributing this to a variety of factors that are hitting the cattle industry simultaneously.

"Right now the top concern among producers and certainly among our cattle feeders is the price of feed," says NCBA’s Chief Economist Gregg Doud. "We’re seeing new record prices for grains, oilseeds and other feedstuffs. The long-fabled ‘beans in the teens’ is now a reality. When combined with USDA’s surprising corn stocks report last Friday, the result is that corn futures today are above $5 per bushel through December 2010. This has directly contributed to a 17 percent decline in the value of feeder cattle futures since Labor Day."

Doud says the corn price factor combined with record pork production and the fact that we still do not have normalized trade with two of our three largest export markets, is hitting producers’ pocketbook hard. Making matters worse are worries about the nation’s economy.

"Suddenly the media is throwing around the ‘r’ word – recession," says Doud. "Beef producers understand that this is relevant to their industry because less disposable income means folks tend to eat out more and buy fewer cuts of meat. Fifty percent of domestically consumed beef is eaten outside the home."

When producers gather in Reno in February, Doud predicts they’ll be talking about ways to manage today’s extremely volatile markets and preparing for a much different marketplace than what they’ve grown used to in recent years. "Things can change quickly in today’s world," says Doud. "But coming up with solutions by thinking through these challenges, rather than just whining about them, is what makes the cattle industry different."

Although negotiations on a new export protocol have been delayed due to the holidays, and are not yet completed, industry sources indicate that additional sales have been made and the prospect for future sales looks promising.

A bilateral trade agreement signed in November 2006 provides access for U.S. boneless and bone-in beef, and variety meats into Russia. NCBA continues to monitor this situation carefully as Russia will likely remain the second largest beef importing nation in the world in 2008 at 1.1 million metric tons versus 725,000 mt for Japan, according to USDA's latest estimates.

Mexican Trade Update: USDA met with Mexican officials last week to discuss the North American Free Trade Agreement (NAFTA), which was scheduled to be fully implemented on January 1st of this year. To address trade concerns in the livestock sector, the United States and Mexico agreed to establish a working group. The livestock working group will meet by mid-February. NCBA is hopeful this discussion will lead to the movement of older cattle and breeding stock into Mexico as prompted by the final BSE minimal risk region rule implemented November 19, 2007.

"Significant progress on this issue has been made in discussions between the two governments," says NCBA’s Chief Economist Gregg Doud. "Further discussions are necessary, but we expect to get this breeding stock issue resolved and be up and running in a matter of weeks."

Hearing Scheduled on Schafer Nomination: The Senate Ag Committee has scheduled a hearing on Thursday, January 24th to consider the nomination of Edward Schafer to be U.S. Secretary of Agriculture. President Bush announced his nomination on October 31, 2007.

Schafer served as governor of North Dakota from 1992 to 2000. During that time, he gained experience dealing with issues such as disaster assistance, international trade and renewable energy policy – all issues facing today’s cattle producers.

If confirmed, Schafer would replace former Ag Secretary Mike Johanns who resigned in September to pursue a Senate bid. In the interim, Deputy Secretary Chuck Conner has been serving as Acting Secretary.

FDA Risk Assessment Says Food from Cloned Animals is Safe: The U.S. Food and Drug Administration (FDA) released its Final Risk Assessment on Animal Cloning on Tuesday, January 15, 2008. The final report, which determined that food derived from cloned animals as well as their progeny is perfectly safe, piggybacks on the findings of FDA’s draft risk assessment released in December 2006.

"After reviewing additional data and the public comments in the intervening year since the release of our draft documents on cloning, we conclude that meat and milk from cattle, swine, and goat clones are as safe as food we eat every day," said Stephen F. Sundlof, D.V.M., Ph.D., director of FDA's Center for Food Safety and Applied Nutrition. "Our additional review strengthens our conclusions on food safety."

In May 2007, NCBA submitted its final comments to FDA on its risk assessment related to the cloning of food animals. NCBA policy supports the further development of cloning as one of many reproductive technologies that can be used to enhance the beef industry.

"Cloning is simply another assisted reproduction technology like artificial insemination, embryo transfer and in vitro fertilization. Cloning can allow a livestock producer to create a genetic twin of their very best animals, which then can transmit superior characteristics to their offspring and quickly improve a herd," says NCBA’s Chief Veterinarian Elizabeth Parker. "Cloning does not change the DNA of the animal, nor are they ‘genetically-modified.’ And all animals are born naturally."

USDA Assumes Role to Lead Next Steps: Pending the release of their Final Risk Assessment, FDA had a voluntary moratorium on meat and milk products from animal clones and their progeny from the food supply. Following the January 15th release of the final risk assessment, USDA is assuming a key role in guiding industry through this transition while maintaining the temporary ban on clones from the food supply.

"Now that FDA has evaluated the scientific data and public comments and issued its final risk assessment, USDA will join with technology providers, producers, processors, retailers and domestic and international customers to facilitate the marketing of meat and milk from clones. We'll be working closely with stakeholders to ensure a smooth and seamless transition into the marketplace for these products," said Bruce Knight, Under Secretary for Marketing and Regulatory Programs. "Further, USDA has encouraged technology providers to maintain their voluntary moratorium on sending milk and meat from animal clones into the food supply during this transition time."

USDA said it will also implement the report language in the 2008 omnibus appropriations bill calling for a study of domestic agricultural and international trade economic implications of commercialization of milk and meat from animal clones.

In the meantime, industry groups are implementing a livestock cloning supply chain management program that will establish protocols for registering animal clones. USDA has proposed partnering with industry on possible verification of its supply chain management plan to ensure that trading partners are aware of whether or not they receive cloned or non-cloned products.

Check Out Our Offerings for NCBA’s PAC/PEF All-Breed Bull and Horse Auction! Held in conjunction with the 2008 Cattle Industry Convention & Trade Show, our 3rd annual NCBA-PAC/PEF All-Breed Bull and Horse Auction offers convention attendees a chance to purchase some of the best genetics and seed stock in the nation, and support NCBA-PAC at the same time!

The auction is scheduled for 6:30 pm on Wednesday, February 6, 2008, at Booth 101 in the trade show at the Reno Sparks Convention Center.

Thank you to the outstanding operations that have contributed to this exciting event so far, including:

- Bieber Red Angus Ranch of Leola, South Dakota

- Byrd Cattle Company of Red Bluff, CA

- Coldwater Cattle Company of Holly Springs, Mississippi

- Dalebanks Angus Ranch of Eureka, Kansas

- Errer Hill Farms of Friedens, Pennsylvania

- Fink Beef Genetics of Randolph, Kansas

- Gardiner Angus Ranch of Ashland, Kansas

- Genex Cooperative of Shawano, Wisconsin

- Leland Red Angus Ranch of Sidney, Montana

- Marshall Cattle Company of Burlington, Colorado

- Nichols Farms North Carolina Division of Clinton, North Carolina

- Pollard Farms of Enid, Oklahoma

- One Penny Ranch of Foley, Minnesota

- Ridgefield Farm, LLC of Dahlonega, Georgia

- Seven L Ranch of Devers, Texas

- Steele Land and Livestock of Anita, Iowa

- TC Ranch of Franklin, Nebraska

- Thomas Angus Ranch of Baker City, Oregon

- ViaGen, Inc. of Austin, TX

- Wulf Limousin Farms of Morris, Minnesota

- Yon Family Farms of Ridge Spring, South Carolina

Donators receive national marketing for their operation through the National Cattlemen's Magazine, pre- and post-convention exposure to all NCBA members in a sale catalog distributed at convention, their name displayed prominently at convention events, a ribbon badge signifying their donation, and also VIP passes to the NCBA-PAC event featuring Tracy Lawrence on Friday evening!

Countdown to Convention: The 2008 Cattle Industry Annual Convention and Trade Show will be held February 6-9 in Reno, Nevada. The meeting will feature joint and individual meetings by NCBA, Cattlemen's Beef Promotion & Research Board, American National CattleWomen, Inc., Cattle-Fax and the National Cattlemen's Foundation.

This is the time of year when NCBA’s producer-members gather to discuss our industry’s priorities at issue forums and committee meetings. On February 9th, members will vote on policy for the coming year at NCBA’s Board of Directors Meeting.

NCBA to Hold 2nd Annual Career Fair at 2008 Annual Convention & Tradeshow: After last year’s success of the first-ever career fair, NCBA is proud to host the event again at this year’s convention in Reno.

NCBA's Cattlemen to Cattlemen kicks off its second year on the air the week of January 22nd when we’ll learn more about the topics of artificial insemination and bull selection.  Plus, we visit North Dakota cattle producer Julie Ellingson to spend a day in her life.  And we get ready for Superbowl Sunday with some great beef appetizers that will be the highlight of your gameday party!