PREMISE ID:

Mandatory Country of Origin Labeling went into effect on March 16, 2009. Premise ID will most assuredly become mandatory in short order. Dr. Scott DeJean, Veterinarian with USDA, will be on hand to discuss COOL regulations and how they will affect cattle producers and will register your premise if not already done.

RYEGRASS AND CLOVER ORDERS:

It is time to take orders for ryegrass seed. This is the 33^rd year we have booked bulk ryegrass seed. The program continues to allow for price advantages to participants. Last year those who booked seed with us paid 40¢/lb. for Gulf and 47¢/lb. for Prine.

In addition, due to high nitrogen fertilizer costs and the benefits of clover, the Cattlemen’s board voted to offer Durana White Clover Seed to producers. Durana is more productive than LAS-1 and more persistent than ladino type clovers like Osceola. White Clover comes in 25 lb. bags so you must order in 25 lb. increments. Seeding rates are 3 lbs./acre in a mixture with ryegrass or 5 lbs./acre if planted alone. For a deposit of $10.00 per 25 lbs. of clover seed you will be guaranteed that amount and for a deposit of $5 per 100 pounds of ryegrass seed, you will be guaranteed that amount. All seed not booked will be available on a first come first served basis; however, this will be a very limited amount. If you want seed through the program, then you should put a deposit on the amount you desire.

Please indicate which variety of ryegrass you prefer on the order blank. Be aware that Prine is generally 10¢/lb. more than Gulf. Prices are not final at this time. Another change in the program is due to limited participation by in parish dealers. We will be soliciting bids on all three seed types from dealers in a four parish area - Vermilion, Acadia, Lafayette and Iberia, so you might have to travel some to obtain your seed.

If you wish to be guaranteed ryegrass seed and/or clover in this year’s program, then fill out the form below and send it to Andrew Granger, 1105 W. Port St., Abbeville, LA 70510 along with a check made payable to the Vermilion Cattlemen's Association and in the amount needed to guaran­tee your seed. Deposits are due by June 5. Deposits will be non-refundable after June 30^th.

CHANGES IN QUALITY GRADING: Ross Pruitt and Jim Robb

Changes in production agriculture have been coming thick and fast the past few years with rising input costs, regulatory changes, and tighter margins to name a few things livestock producers are facing. Lack of demand has put a temporary ceiling on cattle prices as consumers adjust their spending habits during the current economic challenges this country is facing. As a result, the Choice-Select spread has been very narrow the past few weeks to the point of being inverted. Select cuts of meat have retained their value more readily than Choice due to consumers eating out less frequently. Supplies of Choice beef have also been increasing, due in part to favorable winter feeding conditions in the High Plains (Texas Panhandle to Nebraska Panhandle) and feeding cattle to heavier slaughter weights.

Starting last year, the percentage of carcasses that were graded Choice started to increase. The objective quality grading system has not been fully implemented in plants yet, but this new technology has already resulted in an increase in the percentage of carcasses graded Choice. Improvements made to grading system as a result of education, research, and evaluation has equipped graders to more effectively identify Choice carcasses. A similar result was observed when objective yield grading was being developed a few years ago. The Livestock Marketing Information Center feels that the change in percentage of carcasses grading Choice is permanent, just like what happened for yield grades.

Consumers have repeatedly expressed their desire for a consistent dining experience with regards to beef. Choice beef is typically served at restaurants and the improvement of the quality grading system will hopefully be one step to a more consistent dining experience for consumers. Consumer concerns about nutrition and their budget will affect consumption patterns, but the improved quality grading system may increase the value for beef. Any additional value that may result from these changes will be passed up the supply chain to those entities that add the value to the animal.

Although the ruling is subject to additional appeals, any premise records obtained by USDA for producers who voluntarily enroll in the National Animal Identification System are not subject to disclosure from a request through the Freedom of Information Act. These collected records are protected by the U.S. Privacy Act.

There has been brief mention of the dairy herd buyout through the Cooperatives Working Together (CWT) program in the past few weeks in this newsletter. Those producers who have their bid accepted will learn shortly after May 1^st if their bid is accepted. CWT believes the liquidation may take 6 to 8 weeks. Producers who are planning on culling beef cows during May through July should be aware of this program and the potential to lower cull prices.

The U.S. Meat Export Federation is reporting total beef exports grew 4 percent in volume over February last year (slightly less than 1 percent in value). Beef muscle cut exports rose 9 percent while variety meats declined slightly (the opposite was true for the pork sector).

Earlier today, the April Cattle on Feed report was released:

Cattle on Feed report summary:

Pre-Report Estimates

1,000 head % of 2008 Avg. Range

Placed in March 1,802 103.8 103.8 95.6 – 112.3

Marketed in March 1,828 99.2 99.2 97.0 – 100.4

On Feed April 1 11,152 95.4 95.6 95.0 – 97.5

Cash trade in Nebraska on Wednesday and Thursday of this week was in the $88 to $90 range for fed cattle with dressed prices in the $142-143 range. Cash trade in Texas, Oklahoma, and Kansas on Friday was in the $88 range for live cattle and $138 to $140 for dressed carcasses. Packers looking to fill orders have helped support fed cattle prices in the past few weeks and the futures market prices have taken their cues from the cash trade. There are a few positive signs here and there that this rally may be able to be sustained. The Cattle on Feed report is likely to have little impact on futures trading early next week.

However, cattle feeders are still in the red with first quarter 2009 losses on steers projected to be $160/head. The Livestock Marketing Information Center is estimating breakevens for a 750-pound steer placed into a Southern Plains feedlot to be sold in April are about $90.00 per cwt. However, estimated breakeven sale prices began to increase again in early April along with the run-up in feeder cattle prices. Many feeder cattle currently being placed into feedlots will only make money if corn prices decline significantly from current levels. Packer margins are also caught in the squeeze with drops values in the $6/cwt range. Strength in the cutout values moving back into the mid $140 range will help them and allow for stronger fed prices.

Compared to last week’s sales in Louisiana, slaughter cows sold steady to firm. Slaughter bulls sold $2-$4 lower. Feeder steers and heifers sold $2-$5 higher.

PLEASE RETURN TO ANDREW GRANGER, 1105 W. PORT ST., ABBEVILLE, LA 70510 BY MAY 12

NAME _____________________________________________

ADDRESS __________________________________________

PHONE ____________________________________________

E-MAIL ____________________________________________

__________ # of cattle that may need to be evacuated

__________ # of acres that could be used as evacuation pasture

__________ amount per acre charge, if any

__________ I can assist with hauling cattle in case of emergency

__________ I am interested in donating hay to hay bank

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RETURN TO ANDREW GRANGER, 1105 W. PORT ST., ABBEVILLE, LA 70510 BY MONDAY, JUNE 5, 2009.

Name ________________________________________________

Address _____________________________________________

City ________________________________________________

Phone # _____________________________________________

Amount of Ryegrass Seed _______________ x $5/cwt.

Amount of Clover Seed _________________ x $10/25 lbs. (order only in 25 lb. increments)

Amount of Deposit = _______________

Type of ryegrass you prefer:

 Prine

 Gulf

Sincerely,

Andrew Granger

County Agent

Vermilion Parish

It is the policy of the Louisiana Cooperative Extension Service that no person shall be subjected to discrimination on the grounds of race, color, national origin, gender, religion, age, or disability.