Top Stories:

Farm bill extended once again

The farm bill continues to drag on, as both the House and Senate have voted to extend current farm bill legislation until May 16. The agriculture committee conferees will continue to try to agree on new legislation that must pass Bush Administration objections to become law. Last week, farm bill negotiators reported they reached agreement on certain issues. Among them, conferees dropped the Senate provision to limit packers' livestock ownership to 14 days before slaughter, and acted on crop-subsidy rules, land-stewardship programs, language to prevent abuse of price supports and whether fruit and vegetables will continue to be barred on land eligible for crop subsidies.

President Bush still seems likely to veto the farm bill as it has ballooned to a $300 billion package, the costliest in history. The 2002 version of the bill was under $200 billion. Politically, increasing farm programs by 50 percent is unpopular at a time when the farm economy "has never been stronger," as described by a report from the Office of Management and Budget. Georgia Senator Saxby Chambliss, a Republican, told reporters he would work to override the bill if Bush vetoes it. Other Senators claim overriding a veto would be difficult. Much of the media's focus on the farm bill centers on subsidies paid to "wealthy" farmers. But two-thirds of the bill would pay for food stamps. The bill would also boost conservation programs that are designed to protect the land and environment. — Greg Henderson, editor

Backlash against biofuels continues

As gasoline and diesel prices soar to new levels, and crude oil trades above $120 per barrel, the bloom comes off of ethanol and other biofuels. Almost as rapidly as people jumped on the ethanol bandwagon, it seems, people are jumping off. Last week USDA chief economist Joseph Glauber blamed biofuels for increasing prices on corn and soybeans. He also predicted that corn prices will continue to rise because of demand from "expanding use for ethanol."

Lester Brown, an environmental analyst who has written over twenty books on global environmental issues, wrote in the Washington Post that "it is impossible to avoid the conclusion that food-to-fuel mandates have failed." An editorial in yesterday's Wall Street Journal claims, "Corn ethanol can now join the scare over silicone breast implants and the pesticide Alar as among the greatest scams of the age." The WSJ also noted that Senator John McCain and 24 other senators are now urging EPA administrator Stephen Johnson to consider using his broad waiver authority to eliminate looming biofuel mandates. "Congress' ethanol subsidies are merely force-feeding an industry that is doing far more harm than good," according to the WSJ opinion. — G.H.

News and Notes:

PETA stumbles in post-Derby debate

With Michael Vick securely in Leavenworth serving two years on a conviction for dog-fighting, the good folks at PETA have been anxiously seeking the next big public relations event to hawk their animal rights agenda. They thought it happened last Saturday afternoon on horse racing's biggest stage, the Kentucky Derby, when the runner-up, a filly named Eight Belles, broke down a quarter-mile after the race was over and had to be euthanized on the track. The body of the horse was barely cold when PETA's PR machine went to work, issuing a statement that called Eight Belles the "latest victim of the dirty business of thoroughbred racing." PETA claimed Eight Belles' jockey "whipped her mercilessly as she came down the final stretch." PETA called on the racing industry to suspend the jockey and trainer, to bar the owner from racing at the track, and to "stop using young horses who are so susceptible to these types of horrific injuries."

PETA campaigns for memorial in South St. Paul

The historic stockyards in South St. Paul were closed last month, as developers readied their bulldozers to build what The New York Times called "people pens." For the full story, click here. After the last calf was sold in a location that had held auctions for 122 years, PETA has asked the new owners to erect a "memorial" on the site to provide visitors an opportunity to "reflect upon the many animals who suffered there — and on how our food choices affect animals who continue to be raised and killed for their flesh."

No Better Bull focuses on marketing decisions

This week's No Better Bull, the weekly Internet-based seminar sponsored by Drovers and Leachman Cattle of Colorado, begins a five-part series designed to help you make the right marketing decisions with your current calves — despite potential market volatility. Dallas Horton and Lee Leachman will start off the series by discussing market fundamentals and how you need to be ready for this fall’s market. Horton and Leachman will discuss ideal times and weights to sell calves and considerations for retaining ownership beyond weaning. In the weeks to come we’ll have four more programs focused on marketing:

• Export markets for beef by John Hinners, vice president of industry relations at USMEF.
• How to hedge your calves.
• Strategies for fall marketing by Harlan Hughes.
• Reading a volatile market by Dr. Jim Mintert.

Don’t miss this chance to prepare for a volatile market and ask questions during the live, interactive show. Tune in tonight, May 8, at 8 p.m. Mountain time. For more information and a link for connecting to the program, go to www.leachman.com.

HSUS releases another video

The Humane Society of the United States released another undercover video this week, with footage of several neglected "downer" cows at livestock auctions in four states. According to HSUS, the videos were taken during April and May at auctions in Maryland, New Mexico, Pennsylvania and Texas. "This has to stop immediately," said Wayne Pacelle, president and CEO of The HSUS. "Our earlier investigation into the callous and abusive treatment of live animals at a slaughter plant in California appalled the nation and led to the largest meat recall in U.S. history. These new video images show that the rot in the factory farming system of raising animals goes much deeper. The problems are systemic, the laws and regulations are inadequate, and the industry's resolve insufficient." To read NCBA's statement about the video, click here. To read the Livestock Marketing Association's statement, click here.

Groups, Senators call for changes in biofuel mandates

The American Meat Institute, joined by a cross section of 19 environmental and hunger groups, food industry organizations, tax and budget groups and Hispanic community advocates, this week issued an open letter calling on Congress to revisit food-to-fuel mandates, which they say contribute to a growing global food crisis. The letter, addressed to Sen. Charles Schumer (D-N.Y.) and Rep. Carolyn Maloney (D-N.Y.), argues that while many factors impact food prices, the one factor that Congress has the power to control is "Congressional mandates and subsidies to turn food crops into fuel." The issue is gaining attention in the Senate, where 24 senators last week sent a letter to the Environmental Protection Agency suggesting it waive or restructure rules that require a five-fold increase in ethanol production over the next 15 years. For more on AMI's letter, click here. For the full news report on the senators’ proposal to EPA, click here.

AVMA calls for more support for public-sector veterinarians

The American Veterinary Medical Association this week stressed ongoing support for veterinarians working in the public sector and urged Congress to take action to bolster resources and fund their important work. These veterinarians, according to an AVMA release, fill essential positions at agencies, including the Centers for Disease Control and Prevention, U.S. Department of Agriculture, the U.S. Food and Drug Administration and the National Institutes of Health. But while veterinarians play critical public service roles in food safety, bioterrorism prevention and public health protection, there is a significant void in the funding for the profession's growth, says AVMA's president, Gregory S. Hammer, DVM. Research shows that the number of veterinarians working in key areas has seen a sharp decline. For instance, only 17 percent of veterinarians work in food supply, which includes private and public practice veterinarians involved in the entire food chain. For more, click here.

Cattle Buyers Summits set for Montana, Tennessee and Nebraska

A series of special cattle industry events are designed for anyone in the cattle industry who markets cattle — as well as ranchers, cattle feeders and agricultural lenders. Cattle Buyers Summits will be held May 15 in Billings, Mont.; May 22 in Chattanooga, Tenn.; and July 11 in Kearney, Neb. The events are designed to introduce the new initiatives of Beef Quality Assurance programming to an audience across the region. BQA is a producer-led concept to address pre-harvest production practices that increase beef demand and improve consumer confidence in the beef industry. There's no registration fee for the Cattle Buyers Summit, but seating is limited so anyone wanting to attend is asked to RSVP to Mo Harbac, Montana Beef Network, P.O. Box 17922, Bozeman, Mont. 59717, call 406-994-4323 or e-mail mharbac@montana.edu. For more information, go to www.drovers.com.

Tax implications of drought-induced cattle sales

With dry weather already limiting forage production in parts of the Northern Plains and elsewhere, North Dakota State University Extension economist Tom Petry notes that some might be forced to liquidate some breeding cattle or sell calves earlier than planned. He reminds producers who are forced to sell livestock due to drought conditions that they can receive special consideration for federal income tax reporting purposes. The IRS offers two options in these cases, Petry says. One allows postponement for reporting income from forced sales of breeding cattle or calves sold earlier than usual. If, for example, producers who normally would background their calves through the winter are forced to sell them at weaning, they could postpone reporting the income until next year. The other option is to treat the sale as an involuntary conversion. Producers can choose to postpone reporting the capital gain from forced sales as long as similar animals are repurchased in the future. For more information, click here.

Camp Cooley Ranch announces dispersal

Due to the "possible exposure" of a relatively small number of females to an exotic wildlife disease (malignant catarrhal fever, commonly called MCF), Klaus Birkel, owner of Camp Cooley Ranch, has announced the complete dispersal of Camp Cooley Ranch's entire registered female herd. The possible exposure to CCR's females came from a herd of wildebeest in the ranch's game preserve. MCF is not contagious among cattle but can be spread from a cow to her calf. The disease is highly fatal to cattle, but poses no threat to humans. For more information about Camp Cooley Ranch’s sale, visit www.campcooley.com.