GIPSA Rule Causes Concern For Pork Producers

Cindy Zimmerman

When Iowa hog farmer Sam Carney got his first look at the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule released on June 22, he was shocked. “I thought it would be something to get rid of vertical integration,” Sam says. “And to me, this is just something that looks like they’re encouraging vertical integration.”

Sam is president of the National Pork Producers Council (NPPC) and a wean-to-finish operator in Adair, Iowa. He is also a small cow-calf operator, so he can look at the proposed rule from the viewpoint of both the pork and the beef industries. “Overall, I think that cattle and pork will be affected a lot more similar than poultry, but they’re trying to throw all three groups together, and I think that’s very risky because all species are different in the way their operations go,” he said.

Sam’s biggest concern with the rule is the potential loss of risk management and how that might impact a producer’s borrowing power. “If you’re not able to have some kind of marketing agreement, how’s your banker going to give you money?” He says that NPPC is “very much against” the proposed rule because they believe it goes way beyond the scope of what the Farm Bill intended.

Listen to or download my interview with Sam here: Sam Carney Interview

NPPC is working together with the National Cattlemen’s Beef Association to make sure that producers are informed about the proposed rule and encouraged to make comments. The two groups will be holding a joint event for members the day before the USDA/DOJ public workshop on competition in the livestock industry in Ft. Collins, Colorado on August 27.

USDA has just released the agenda for the workshop, which includes several panels as well as three hours dedicated to public testimony. This will be split into two sessions, one at mid-day and the other after the final panel.

Audio, Beef, GIPSA, Livestock, NCBA, Pork, Poultry, USDA

Who’s Your Butcher?

Chuck Zimmerman

Who is your butcher? That’s the question and you can vote on the entries in the contest here. This contest is being conducted by Protein University and was brought to my attention via email today by Kari Underly, Range, Inc. So watch her video entry and go vote!

Food, Video

Meet Pioneer Hi-Bred Senior Leadership

Chuck Zimmerman

During the 2010 Pioneer Hi-Bred Crop Technology Field day held in Carrollton, MO, farmers could choose between nine different field work stations or presentations. Topics ranged from refuge strategies to soil types. Also on the agenda was “Meet Pioneer Senior Leadership.” That’s what this post is about. The “seniors” included (left) Alexandro Munoz, VP/Regional Director, North America and John Soper, VP, Crop Genetics Research & Development.

I recorded their presentation to a group of ag media representatives which also included some farmers who wandered in. The pair gave an overview of Pioneer’s strategy and what it means to farmers. Alejandro says you can summarize it all up in “Right Product, Right Acre.” This means they want to bring the company to the farm along with all their services and resources so the best products are used since no two farms are identical.

You can listen to their presentation here or watch it below: Pioneer Senior Leadership Presentation

2010 Pioneer Hi-Bred Crop Technology Field Day Photo Album

Audio, Corn, Pioneer, Soybean, Video

Pioneer Hi-Bred Crop Technology Field Day

Chuck Zimmerman

Pioneer Hi-Bred held a crop technology field day in Carrollton, MO yesterday. It was a picture perfect day so I took a lot of them. They were expecting up to a thousand attendees and I think that was a very possible number. I’ve got several things to post for you including some presentations and interviews.

Let’s start with a link to the photo album from the event: 2010 Pioneer Hi-Bred Crop Technology Field Day Photo Album

Corn, Pioneer, Soybean

GIPSA Rule Could Set Beef Industry Back 25 Years

Cindy Zimmerman

At least one pure bred Angus breeder is concerned that the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule could set the beef industry back 25 years.

Bill Rishel of North Platte, Nebraska is president of the Nebraska Cattlemen’s Association and owner of Rishel Angus. He’s among the nation’s top Angus breeders and was one of the first to emphasize carcass merit through genetic selection. “Through most of the decade of the ’80s, we were losing substantial market share in the industry,” Bill says. “We needed to compete at a level in terms of quality and palatability.”

He says it was the producers who took the initiative to come up with value-added products for consumers. “We as producers felt like we had the ability to create a product through genetic improvement to create a product that was better than the average,” Bill said. The very first of those value-added programs was Certified Angus Beef, which is a proven alternative marketing success story. “It has increased sales exponentially, not just domestically but around the world, and continues to grow to this very day.”

Bill is concerned that the GIPSA rule could jeopardize the alternative marketing programs that have benefited both producers and consumers if it pressures the processors to validate every price difference they would give for any greater quality of cattle. “Somewhere along the way they’re going to say “I’m not going to take all this risk, it’s just as easy for me to offer one price fits all” and it will become a commodity type business again and it will revert back 25 years to what we’ve worked so hard to get away from,” Bill said.

Bill encourages every person in the cattle industry to read the proposed rule and formulate their own opinion about it. “Instead of taking what they hear in the press or in the news from some other source or individual as to what their feeling is,” he said. He will be at the USDA/DOJ public workshop on competition in the livestock industry in Ft. Collins, Colorado on August 27 to make comments about how he thinks the rule will impact his operation and the industry. Producers who are unable to attend can provide comments via e-mail to comments.gipsa@usda.gov until November 22.

Listen to or download my complete interview with Bill here: Bill Rishel Interview

Audio, Beef, GIPSA, Livestock, NCBA, USDA

Zimfo Bytes

Melissa Sandfort

    Zimfo Bytes

  • Bion Environmental Technologies, Inc. announced that Ed Schafer, former Governor of North Dakota and former Secretary of the USDA, has agreed to join Bion’s management team through the end of 2013.
  • Bayer CropScience is cooperating with the EPA following an announcement to cancel uses of aldicarb, sold as Temik brand insecticide/nematicide, on potatoes and citrus. Uses on all other crops will remain, but will be phased out over the next few years.
  • S&W Seed Company announced that veteran agriculture sales executive Gary Leach has joined S&W as Regional Sales Manager.
  • Aquamer Medical Corp. announced the acquisition of Urban Agricultural Corp.
    Zimfo Bytes

    Bethany Shively Moves To NACD

    Chuck Zimmerman

    Bethany Shively is on the move from her position with the National Cattlemen’s Beef Association.

    Beginning this coming Monday you can find her at the National Association of Conservation Districts as their new Communications Director.

    Congratulations Bethany!

    Ag Groups

    Cattle Producer Wants Long Term Analysis of GIPSA Rule

    Cindy Zimmerman

    Will cattle producers be helped or hurt by the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) regulation that is intended to provide protection for producers against unfair, fraudulent or retaliatory practices in the livestock business?

    That is the question that many in the cattle business are asking now, less than two months after the rule was proposed. Many of the smaller cow-calf producers that the rule is supposed to benefit are expressing serious reservations about the profound impact it could have on their livelihoods.

    Meet Robbie LeValley, a lifelong cow-calf producer who operates a ranch with her husband Mark and two sons in Hotchkiss, Colorado. Her family operation is one of six that together own Homestead Meats, which offers natural beef for sale direct to consumers, retailers and restaurants. The six families also own a USDA inspected packing plant where they market their own animals and provide custom processing. Robbie is also a Colorado State University Area livestock and range extension specialist and was recently elected president of the Colorado Cattlemen’s Association.

    Robbie is worried that the proposed rule could have a negative impact on her family business. “Our innovation and our willingness to do direct marketing has basically now labeled us a packer and under the proposed rule, as I read it, now limits our marketing options – meaning not being able to sell to other packers,” she said. While some say that is not the intent of the rule, she argues that the vagueness of the language makes it very possible.

    One concern for Robbie is the long term impact of the proposed rule on the next generation of livestock producers, like her two sons who represent the fourth generation in her family business. “We operate on a very thin margin already, so the potential for additional government intervention or increased litigation just reduces that margin even more,” she says. “Is there enough of a margin to bring in that fourth generation?”

    Robbie would like to see an in-depth, cost-benefit analysis done on the proposal before it is rushed into implementation. “Where is the research that shows there is problems in the marketplace and that these proposed rules will do anything to address those problems?” she asks.

    Robbie will be on one of the producer panels at next week’s USDA/DOJ public workshop on competition in the livestock industry in Ft. Collins, CO, where she will provide her perspective on the impact of the proposed rule. She strongly encourages other producers to carefully read the GIPSA proposal and take advantage of the public comment period between now and November 22 to make their voices heard.

    Listen to or download my complete interview with Robbie here: Robbie LeValley Interview

    Here’s a little YouTube video featuring LeValley Ranch:

    Audio, GIPSA, Livestock, NCBA, USDA, Video

    Iowa Corn Farmers Still Optimistic Despite Flooding

    Joanna Schroeder

    Last week, the USDA announced its estimated harvest numbers for corn this fall and the report was full of good news. They are expecting another record harvest this year as well as an increase in bushels per acre. Should their predictions come true, this will be the third record harvest in a row. In addition, corn growers will achieve this feat using less acres than the year before.

    While this is promising news, the report did not account for the flooding conditions in Iowa. More than 32 counties in the state are now eligible for federal disaster funding and many of the residents who have been most negatively affected are corn growers. One of the worst areas is near Ames, Iowa. (You can see the devastation is the aerial photo.)

    To learn more about how the floods might affect Iowa corn farmers, I reached out to the Iowa Corn Growers Association. In an email to me, they noted that the impact of the floods on harvest has not been a major topic of discussion but many farmers are worried that the hot weather may stunt ear growth and cause denting before its time. The result would be lower test weights.

    Dean Taylor, a corn and soybean farmer from Prairie City, Iowa and president-elect of the Iowa Corn Growers Association has been affected by the floods. “Three weeks ago, our crops looked great. We were looking at 200 bushels per acre corn and above, but now even non-flooded fields that received 10-15 inches of rain in one week might top out at 120 to 130 bushels per acre. I think we’ve learned from 1993, that rain does not always make grain,” explained Taylor.

    Another area of concern is with the demand on growers to grow enough corn to meet the country’s diverse needs, will there be enough corn to go around? “We have more than enough corn for all markets, of which ethanol and livestock are the drivers in Iowa,” commented Iowa Corn.

    The organization remains confident in Iowa’s corn growers and noted that the growers who have not been affected will step up to the plate and make up for those farmers whose harvest numbers will be lower than expected. I ran into an Iowa farmer earlier this week who is very proud of what he does, so much so that he wears his pride on his shirt. I loved his shirt so much that I thought it was appropriate to share it with you on this site (and BTW – I want one of these shirts!).

    In closing, I asked Iowa Corn if they had a message they wanted to deliver to our readers. They responded, “We are sad to see so many weather issues affecting farmers across the state, but we know that farmers battle weather of some kind or another each year and continue to do what they do best- produce food, fuel, feed, and fiber for the world.”

    Corn, Ethanol

    Meat Meets Colbert

    Cindy Zimmerman

    A word of advice to agricultural lobbyists – throw your media training out the window if you agree to do an interview with Stephen Colbert.

    American Meat Institute President J. Patrick Boyle was the main dish Tuesday night on the Colbert Nation “Know Your Lobby” segment, which profiles lobbying organizations.

    “Although I’ve had a lot of tough interviews in my day, that was definitely the toughest and most unique interview experience of my career,” Boyle said. “I was honored to play straight man to the hilarious Stephen Colbert and to demonstrate that while meat processing is serious business, we can be good sports.” AMI reports that Boyle’s interview with the comedian was two hours long, edited down to a four minute segment for the show.

    The piece generated some conversation among meat industry PR types who questioned whether the comedy segment was good or bad for the industry, since the issue of E. coli was brought up by Colbert and some people might consider the program “serious news” as opposed to entertainment. If so, those people have an IQ equal to a bacteria, because this was hysterically funny, especially the intro by Colbert that featured his “pledge of allegiance” to a bacon flag: “I pledge allegiance to the meat of the United Steaks of America. And to the ribeye for which it broils, one bacon under God, with liver and onions for all!”

    Colbert starts his interview segment with Boyle by chomping down on a huge turkey leg, and ends it by asking if AMI would endorse the eating of people if there were no more animals on the planet. “The American Meat Institute would not support a policy of cannibalism,” says Boyle with a straight face.

    Watch it here on line.

    Food, Media