LMD June 21

Riding Herd Saying things that need to be said.

June 15, 2021 • www.aaalivestock.com

Volume 63 • No. 6

Monopoly Is No Game LEE PITTS

D

oes anyone else find it amusing that the maker of the board game Monopoly®, has a monopoly on Monopoly®.

That may be the only amusing thing I can say about monopoly. And I’m not talking about the game, I’m talking about the grip the Big Four beef packers currently have on the cattle business. There is nothing funny about beef packers making $800 gross dollars per head according to DTN. THAT IS GROSS. The packer who owns a carcass for two weeks is making more gross dollars than a drouthed out cow/calf operator got for his calves that ultimately yield the carcasses packers are getting rich off. And keep in mind the packer’s $800 is gross profit while the cow calf operator’s is total income. There is no profit for the cow man who owns the calf through nine months of gestation and another eight or nine months after it’s born.

That’s seventeen months versus two weeks and $800 gross profit versus zero profit.

If you still don’t think there’s something seriously wrong with the cattle market you’re either a beef packer or you don’t have the brains God gave a bovine.

Always drink upstream from the herd.

controls, trusts, combinations, conspiracies or restraints of trade” underpinning the “huge profits” of the Big Five. In September 1921 the Packers and Stockyards Act was passed and the Big Five broken up. So it is almost 100 years to the day that the The Big Five were torn asunder. It seems like there should be some sort of centennial anniversary celebration!

But before you break out the party hats consider this: 100 years ago The Big Five beef packers controlled 80 percent of the beef trade. Today the “Big Five” mega-meatpacking companies has been reduced to The Big Four: JBS (a Brazilian company that in 2007 purchased Swift with money borrowed from the Brazilian government that the Batista brothers paid huge bribes to get), Tyson Foods (which bought IBP for $3.2 billion), Cargill and National Beef/Marfrig which are

Once Every Century

NEWSPAPER PRIORITY HANDLING

One hundred and one years ago the Federal Trade Commission (FTC) presented President Woodrow Wilson hard evidence on anti-competitive behavior in the meat packing industry, at that time dominated by the “Big Five” companies Armour, Swift, Morris, Wilson and Cudahy. The FTC’s investigation was seven volumes thick and revealed “an intricate fabric of monopolies,

controlling over 80 percent of the beef processing trade in this country. And once again there are calls for the government to break the beef packers up. Only now it’s not so easy because two of The Big Four aren’t even American companies, they’re Brazilian.

It seems like breaking up the packers is a once-every-century idea.

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Last year Tyson Foods agreed to pay $221.5 million to settle several private lawsuits brought by poultry buyers who accused the corporation of colluding with competitors to raise chicken prices.

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Tyson joined other big poultry and pork corporations in settling private price-fixing suits. These settlements climaxed the end of a four-year legal battle in which grocery shoppers, restaurant chains, and supermarkets accused major meat corporations of conspiring to raise pork and poultry prices.

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Tyson requested and was granted leniency in exchange for aiding with the Justice Department probe. In some circles such an entity would be called a tattle-tale, a squealer, stool pigeon, informant, rat or snitch.

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Tyson denied the price-fixing allegations but ac-

Plenty of Practice Admittedly, there is technically no monopoly of the beef trade which exists when a single company is the only supplier of a commodity. What we do have is an oligopoly which consists of a few sellers dominating a market by acting as one. Such a market is characterized by a lack of competition, the possibility of a high monopoly price well above the seller’s marginal cost that leads to a high monopoly profit, and price fixing of some sort. If that doesn’t

JBS Says Most Plants Operational; FBI Investigating Ransomware Attack

BY SUSAN KELLY / MEATINGPLACE.COM

J

describe today’s cattle market I don’t know what does.

And if you don’t think that meatpackers “act as one” consider the following:

BS USA said the “vast majority” of its processing plants would be up and running on June 2, 2021 after the company made significant progress in resolving the Memorial Day weekend cyberattack on its operations in North America and Australia.

The White House said JBS notified the administration on May 30, 2021 that it was the victim of a ransomware attack, and that the ransom demand came from a criminal organization likely based in Russia. The FBI is investigating the incident, U.S. Deputy Press Secretary Karine Jean-Pierre said in a press briefing.

“The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals,” Jean-Pierre said.

JBS said it was not aware of any evidence that any customer, supplier or employee data had been compromised.

“Our systems are coming back online and we are not sparing any resources to fight this threat.

We have cybersecurity plans in place to address these types of issues and we are successfully

continued on page two

executing those plans. Given the progress our IT professionals and plant teams have made in the last 24 hours, the vast majority of our beef, pork, poultry and prepared foods plants will be operational tomorrow,” Andre Nogueira, JBS USA chief executive, said in a statement.

JBS USA and its Pilgrim’s unit were able to ship product from nearly all of their facilities on June 1, 2021 company said. Operations in Mexico and the UK were not affected and are conducting business as normal.

The company did not identify which of its facilities were affected by the cyberattack.

News reports suggested as many as nine beef plants experienced shutdowns. ABC News reported that plants in Arizona, Colorado, Michigan, Nebraska, Pennsylvania, Texas, Utah and Wisconsin were shut down.

In Canada, livestock slaughter was stopped at the JBS beef processing plant near Brooks, Alberta, according to CBC News. In Australia, the attack shut down operations across several Australian states, CNBC reported.

JBS USA has received strong support from the U.S., Australian and Canadian governments, conducting daily calls with officials in an effort to safeguard the food supply, the company said.

The U.S. Cybersecurity and Infrastructure Security Agency is providing technical support to help the company recover from the attack, according to the White House.

USDA has contacted several major U.S. meat processors to make sure they are aware of the situation and is assessing any impact on the food supply, the White House said.

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by LEE PITTS

Hot Pants

T

he thing I miss most from my childhood is raising steers for the fair. I’ve never found any activity since that provided the same competitiveness, camaraderie, financial reward, fun or friendship. And when I say friendship I’m talking about the relationship I had with those steers. They were some of the best friends I’ve ever had.

Abe, Able, Cherokee George and others helped get this socially awkward kid get through the difficult period most kids go through in high school. When you’re spending 300 hours with your steer every year you don’t have any time left to get into trouble.

To this day I can remember every steer’s little idiosyncrasies and quirks. I told those steers all my troubles, celebrated all our victories together and was proud of our accomplishments. Plus, they got me out of the house where a mean alcoholic father was destroying the fiber of our family.

I’d never been to a fair before I showed my first steer as a sophomore in high school. I was immediately smitten with the five day celebration of rodeo, horse shows, old rock and roll bands without any original members, demolition derbies, the midway, exhibitions, and every kind of unhealthy food a person could eat. I never ate a healthy meal the entire fair and my diet consisted largely of deep fried Twinkies® and Oreos®, cinnamon rolls, hot dogs on a stick, snow cones, cotton candy, corn on the cob, churros and triple cheeseburger donuts. I was much more impressed with the fair than I was with Disneyland which I didn’t get to see until after I graduated high school despite living only two hours away.

There was only one thing I didn’t like about showing steers and that was the white pants I had to wear to show my animals. I can get dirty taking a shower so keeping my white pants clean while getting my steer ready to show was a major challenge.

In the 1960’s adults couldn’t be seen grooming a kid’s show animal and if they were you were immediately disqualified.

If fair officials saw an army of professional fitters like you see standing behind today’s champions when the pictures are taken they’d have escorted you off the fairgrounds. That meant you had to blacken the

continued on page four

Page 2

Livestock Market Digest

June 15, 2021

MONOPOLY IS NO GAME cording to former federal antitrust attorney, Peter Carstensen, “When you see a settlement like this what it tells you is that the defendants have made the assessment that there’s a substantial likelihood that they will lose and they will lose big. That is, the jury will not only find that they colluded but that the collusion resulted in significant damages. When you tell me you are paying $200 million to avoid trial, but you were going to win at trial, there is a down home farm expression — bullshit — that comes to mind.”

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Walmart and Chick-fil-A are among the major grocery stores, food companies and restaurants that joined the complaint that said they had spent billions on overpriced chicken.

The plaintiffs alleged that Tyson and other chicken producers cooperated on output and pricing.

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With the settlement Tyson also settled other lawsuits brought against it for price fixing by Kraft Heinz, Kroger, Walmart, Sysco, U.S. Foods and others.

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The Department of Justice probe accused 13 other poultry corporations of conspiring together to rig a poultry price index and coordinate production cuts in order to raise the price of chicken for wholesalers. Poultry processors allegedly used a data-sharing service, AgriStats, to monitor one another and the allegations extended beyond chicken. Numerous private suits have also accused pork and turkey processors of conspiring to raise prices with the help of AgriStats.

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Pilgrim’s Pride (now owned by JBS) reached a $75 million settlement to settle charges of price fixing.

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The chicken giants were accused of fixing prices from at least 2012 to early 2019. As a part of their antitrust probe, the Department of Justice indicted 10 poultry executives.

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While $221 million seems like a steep penalty, it dwarfs what Tyson made in illicit profits.

Up To Their Old Ways Please note that we’re talking about the same companies in the poultry price fixing cases that are suspected of price fixing beef. If it worked so well in one market why wouldn’t they try it in another, after all, they allegedly had plenty of practice?

R-CALF has believed for years the poultry pluckers are using the same tricks they learned to fix poultry prices to fix beef prices. In April 2019 R-CALF filed a lawsuit against what they called “The Fed Market Cartel.” Patrick McGahan, an Attorney with Scott and Scott Attorneys at Law, LLP, represents R-CALF as prosecuting attorney in the fed cattle cartel litigation. McGahan says that the beef packers have worked together to depress fed

continued from page one

cattle prices from 2015. He said their collusion encompassed five key elements: Periodic slaughter reductions; Reduction in cash cattle purchases during periods of slaughter restraint; Coordination of Defendant’s cash cattle procurement; Importation of foreign cattle at a loss; Shuttering slaughter capacity. Depression of fed cattle prices impacted cattle futures/ options.”

McGahan says that as part of Tyson’s agreement to be an “immunity applicant” in the chicken price fixing cases, essentially admitting to involvement in anti-competitive conduct in exchange for immunity and relief of related criminal fines, they must be forthcoming with information that may be pertinent to other relevant cases, such as the Department of Justice’s investigation into the marketing of cattle and beef.

The Point Of No Return After the pork industry lost 90 percent of its producers by transitioning from a free market to a contractual captive supply situation the giant meatpackers next went after the beef industry where they have used captive supply to control the market.

Today, “formula pricing” is used to come up with a price for the vast majority of fed cattle. For example, in the Texas-Oklahoma-New Mexico area, according to Food and Power, a whopping 91 percent of cattle are sold this way.

As if captive supplies weren’t already enough to give the packers a firm grip on cattle prices the packers added a new wrinkle. In R-CALF’s lawsuit against the Big Four they alleged that the beef packers used live cattle imports to drive down domestic fed cattle prices. For example, “At over one billion pounds, the volume of beef imports in the third quarter of 2020 was higher than any third-quarter volume in at least the past two decades,” said Bill Bullard, R-CALF’s CEO. “This third-quarter 2020 spike in beef imports coincides with the lowest reported monthly price of fed cattle in over a decade, with the national monthly fed steer price at only $95.33 in July 2020. The lowest fed cattle price during each of four troughs occurred during the third quarters in each of the years 2017, 2018, 2019, and 2020. And, those four successive troughs were associated with distinct increases in monthly beef import volumes.”

To put this is proper perspective, R-CALF says the beef packers and other importers controlled far more live cattle through imports than the beef packers purchased in the industry’s price discovery market – the domestic negotiated cash market.

Bullard says, “These data suggest that at least since 2017, there has been an inverse relationship between monthly import volumes and cattle prices, meaning low monthly cattle prices were associated with high monthly import levels and the record-high monthly import level in 2020 was associated with the lowest monthly fed cattle price in over a decade.”

Bullard expressed concern that “Yet another consecutive import spike at or near the third quarter of 2021 could again continued on page three

June 15, 2021

Livestock Market Digest

MONOPOLY IS NO GAME blow the bottom out of the fed cattle market, which today remains inexplicably unresponsive to incredibly strong beef demand signals, in particular skyrocketing wholesale beef prices.”

“The U.S. cattle industry is at a critical crossroad and if decisive action is not taken immediately, we’ll soon reach the point of no return – the point when our industry becomes unrecognizable to those who are in it now,” Bullard concluded.

Who’s Getting Your Fair Share?

R-CALF USA director Brett Kenzy, a central South Dakota cow/calf producer, backgrounder and feeder, says, “Beef packers are satisfying consumer beef demand using two inputs – cattle they slaughter and beef they import. But the millions of head of cattle imported in the form of beef are not included in the calculation of our shrinking domestic negotiated cash market, even though those imports are being used to satisfy demand that should be driving our domestic cattle prices.”

The U.S. Meat Export Federation announced that beef exports “shattered” previous records in 2018, hitting all-time highs in both quantity and value. And, in late 2018 the Beef Checkoff Program’s Cattlemen’s Beef Board and the National Cattlemen’s Beef Association jointly announced that “beef demand is indeed strong,” with the 2018 retail demand index rising 15 percent above the level in January 2012.

“These indisputably favorable factors should have caused U.S. cattle producers to share in the packers’ increased revenues,” Bullard said adding, “But the opposite occurred: the 2018 price that U.S. cattle producers received for their fed cattle was over $4 per cwt LOWER than they were in 2017, and they fell even lower in 2019.”

Cattle and beef trade data for December provide the whole

continued from page two

cattle and beef trade picture for the 2020 calendar year. According to R-CALF, the volume of imported beef, cattle, beef variety meat and processed beef hit an all-time high of nearly 2 million metric tons, or about 4.4 billion pounds in 2020.

Calculating the volume of both cattle and beef is difficult as imported beef and beef products are recorded by weight while imported cattle are recorded by the number of head.

To account for these differing

“

Despite all the bragging you

hear from the MEF and

the NCBA about exports, the U.S. has consistently

imported more beef and cattle than it exports for

the past several decades, making the U.S. a net importer of beef and cattle and causing a 30-year cumulative trade deficit of over 20 million metric tons, or about 44 billion pounds of beef and cattle. measures, R-CALF converts imported cattle numbers to pounds by multiplying the number of imported cattle by each years’ average cattle carcass weight. This enables R-CALF to express both imports and exports of beef and cattle in terms of weight.

The USDA’s recently updated data also show the aver-

age price of fed cattle in 2020 was just under $1.09 per pound, while all-fresh retail beef prices averaged about $6.39 per pound, the highest yearly average all-fresh beef price in history.

R-CALF CEO Bullard said the 2020 average fed cattle price was lower than in any year during the past decade. He said in 2011 the average fed cattle price was $1.15 per pound, and back then consumers only paid on average $4.44 per pound for all-fresh beef.

Bullard explained that these data inform both cattle producers and consumers that importing record volumes of cheaper, undifferentiated beef and cattle does not correlate with lower consumer beef prices, but it does correlate with severely depressed domestic cattle prices.

Despite all the bragging you hear from the MEF and the NCBA about exports, the U.S. has consistently imported more beef and cattle than it exports for the past several decades, making the U.S. a net importer of beef and cattle and causing a 30-year cumulative trade deficit of over 20 million metric tons, or about 44 billion pounds of beef and cattle.

“To put this in perspective, in 2020 we exported 2.9 billion pounds of beef and cattle - the fourth-largest export volume in history - but we imported 4.4 billion pounds. That means for each 1-pound of beef and cattle exported in 2020, we imported over 1.5 pounds of beef and cattle.” And we’ve done this for 30 years! Says Bullard, “Imagine how much stronger our domestic food supply chain would be, and how many more opportunities U.S. cattle farmers and ranchers would have if America stopped displacing the production of our American family farmers and ranchers with billions of pounds of foreign beef and cattle.”

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Page 3

Much Ado About Nothing

BY LEE PITTS

A

t the time I’m writing this the cattle industry was making a big deal out of an article written

by Helena Bottemiller Evich in Politico titled, Beef Lobby Rift: JBS Leaves NCBA. In the article Evich wrote, “JBS, the world’s largest meat packer, has left the National Cattlemen’s Beef Association in a surprise move that comes as the group began taking a harder line on concerns about market consolidation.”

Evich speculated that JBS might have left the group because, “NCBA, the beef industry’s main lobbying operation in Washington, D.C., recently

“

JBS, the world’s largest meat

packer, has left the

National Cattlemen’s Beef Association in a

surprise move that comes as the group began taking a harder line on concerns about market consolidation.”

joined with an unusually broad range of farm and cattle producer groups to call for more transparency in the market and ask the Department of Justice to publicly report on its ongoing antitrust investigation.”

But later in the article Evich admits that according to Cameron Bruett, a spokesperson for

JBS, the meatpacker “suspended” its membership in NCBA A YEAR AGO!” So much for JBS being mad at the NCBA because the NCBA is supposedly now in the cowman’s corner instead of continuing to be bought and paid for by the checkoff and meatpackers.

Bruett says JBS left the NCBA after “an internal review about the “benefit and effectiveness of our trade association investments.” According to Evich, the Brazilian company said it plans to stay involved with the group.

“We continue to support U.S. producers through our daily participation in cash cattle markets and through state producer associations.” Bruett said in an email.

We sure could use a little more of that JBS participation continued on page four

Page 4

Livestock Market Digest

HERD

MUCH ADO ABOUT NOTHING

continued from page one

hoofs, fluff the tail, groom the animal all the while avoiding any close encounter of the manure kind.

My mother hated the white pants even worse than I did because she had to clean them every night and attempt to get the stains out. Wednesday was show day so they had to be clean for that, ditto Friday for showmanship, Saturday for the Junior Livestock Auction and Sunday, if you were fortunate to win Grand Champion as I was for two years in a row, you had to attend a breakfast where they gave you your big check and then in the afternoon you had to parade your animal before thousands of rodeo fans. One year on the front page of our county newspaper I appeared to have a stain on the knee of my white pants and my mother was so mortified she tried to buy up every newspaper so no one would see it.

I know what you’re thinking... why didn’t I just buy more than one pair of white pants? Because I didn’t want to invest that kind of money in pants I’d never be caught dead wearing under normal circumstances. It’s been over 50 years since my show days and I haven’t worn a pair of white pants since. By the time I was a senior that one pair of white pants was showing some wear and I’d experienced a small growth spurt so the pants ended at the top of my socks.

When I left for college I left those white pants behind and later in life I asked my mom what she did with them. She tried to donate them to the church rummage sale but they were rejected. At this point the pants were like canvas and could stand up in the corner by themselves, so my mom burned them in the burn barrel. There was so much organic material embedded in the pants they literally exploded. The flame shot so high the fire department came and Apollo astronauts reported seeing the blast from outer space.

Talk about hot pants!

June 15, 2021

in cash cattle markets right about now.

Evich probably stumbled close to the real reason why JBS quit the NCBA. According to Evich, “NCBA has long been criticized by independent cattle producers who see the group as bending to the will of the meat packers. Tyson Foods, Cargill and National Beef are still listed as members of NCBA’s product

“

wwwLeePittsbooks.com

continued from page three

tance itself from the appearance of any collusion.

What is also not mentioned in the article is that National Beef, another member of the Big Four, like JBS is also a Brazilian company. Marfrig beef owns 82 percent of National and Marfrig is the second largest Brazilian food processing company, after JBS. The company is headquartered in Sao

And yes, the Batista brothers are now back fully in charge of JBS after serving stints in prison.”

council.”

JBS quit the NCBA right about the time it was announced that Tyson and Pilgrim’s Pride (now owned by JBS) were being accused by the Justice Department of price fixing and using monopolistic practices by acting as one. According to the consent decree of 100 years ago no two giant meat packers are even supposed to be in the same room together, let alone being on the same NCBA Product Council. This reporter thinks that JBS was just trying to dis-

Paulo Brazil and has an operational base in 22 countries, exporting to over 100, and is the second-largest beef producer in the world.

We suspect the Batista brothers are very weary these days of having anything to do with collusion, like sitting on an NCBA Product Council with folks who are supposed to be your competition.

And yes, the Batista brothers are now back fully in charge of JBS after serving stints in prison.

Wesley Batista, the former chief continued on page twelve

UK Secures Historic G7 Commitments to Tackle Climate Change & Halt Biodiversity Loss by 2030 FROM: DEPARTMENT FOR ENVIRONMENT, FOOD & RURAL AFFAIRS, CABINET OFFICE, DEPARTMENT FOR BUSINESS, ENERGY & INDUSTRIAL STRATEGY, THE RT HON ALOK SHARMA MP, AND THE RT HON GEORGE EUSTICE MP

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G7 Environment and Climate ministers commit to protect land and ocean to bend the curve of biodiversity loss by 2030.

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They also commit to phase out new direct government support for international fossil fuels.

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Securing meaningful action from leading economies to tackle climate change is a priority for the UK’s G7 presidency, ahead of COP26 in November.

The Climate and Environment Ministers of the G7, un-

der UK leadership, on May 21, 2021 secured historic commitments which will put climate, biodiversity and the environment at the heart of worldwide COVID-19 recovery.

COP26 President-Designate, Alok Sharma and Defra Secretary of State George Eustice, convened the Ministers ahead of the G7 leaders’ summit in June, including the guest countries of India, Australia, South Africa and South Korea.

All G7 members signed up to the global ‘30x30’ initiative to conserve or protect at least 30 per cent of the world’s land and at least 30 per cent of the world’s ocean by 2030, and committed to ‘30x30’ nationally.

Who is the G7 (Group of Seven)?

The Group of Seven is an intergovernmental organization consisting of Canada, France, Germany, Italy, Japan, the Unit-

ed Kingdom and the United States. The heads of government of the member states, as well as the representatives of the European Union, meet at the annual G7 Summit This year is already the first ever ‘net zero G7’, with all countries committed to reaching net zero carbon emissions by 2050 at the latest, with deep emissions reduction targets in the 2020s.

Taking this further by supporting the transition to green energy overseas, the group also agreed to phase out government funding for fossil fuel projects internationally – following a leading commitment made by the UK in December.

As a first step the G7 countries will end all new finance for coal power by the end of 2021, matched by increased support for clean energy alternatives like solar and wind. It was also agreed to accelerate the transition away from unabated coal capacity and to an overwhelmingly de-carbonized power system in the 2030s.

The G7 has agreed to increase the quantity of finance for climate action, including for nature, in order to meet the $100bn per annum target to support developing countries.

In addition to this, the G7 have committed to champion a range of ambitious and effective global biodiversity targets, including the agreement of an ambitious and effective global biodiversity framework at CBD COP15 later this year.

Measures to tackle global deforestation were also secured, with the G7 committing to increase support for sustainable supply chains that decouple agricultural production from deforestation and forest degradation, including production stemming from illegal land conversion.

In this crucial year for global action on the environment and climate, the UK has placed tackling climate change and biodiversity loss at the center of its G7 agenda.

Speaking after the event the

Environment Secretary George Eustice said: “For the first time, the G7 has committed to halting and reversing the loss of biodiversity by 2030.

“This is a major step forward before we host the G7 in Cornwall next month and is a sign of the dedication to accelerate action within the G7 - and beyond - to tackle the twin challenges of climate change and biodiversity loss.

“We have seen tremendous progress this week and it has been great to see countries working together to raise our ambition and lead by example, each playing our part.”

COP26 President-Designate said: “We are the first net zero G7. Under the UK’s Presidency, the G7 is showing great leadership in tackling climate change and making sure those who are worst affected by it are better protected.

“As we recover from the pandemic we are focused on building back greener - creating jobs and prosperity, without harming the planet.

“We know we need to consign coal to history and the G7 has taken a major step towards a de-carbonized power system.

We are acting abroad as we’re doing at home by agreeing to phase out international fossil fuel finance, starting with coal - another key milestone in this crucial year for climate action.

“I look forward to continuing this work as we make progress ahead of COP26 in Glasgow later this year and keep 1.5 degrees within reach.”

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The Border Crisis is Real for Ranchers

BY ARTHUR G. UHL III, FIRST VICE PRESIDENT, TEXAS & SOUTHWESTERN CATTLE RAISERS ASSOCIATION

I

f you’ve stayed up to date on national news in recent months you’ve likely seen and heard about the border crisis. Stories on the politics of border security and immigration, and even debate on whether a crisis exists are commonplace. Unfortunately, what you probably haven’t seen are the day-to-day challenges faced by ranchers and property owners in South Texas amid the surge in illegal border crossings.

Whatever your thoughts on the politics of border security and immigration, it is undeniable that a crisis exists for those men, women and families who must live and work amid the chaos.

Among those directly impacted are many members of the Texas & Southwestern Cattle Raisers Association who have devoted their lives to raising the beef our world needs. In recent years, these ranchers have faced hurricanes, floods, droughts, a catastrophic winter storm and an unprecedented pandemic.

They have persevered, but now face a new level of threats from a flood of illegal border crossings.

As the number of illegal crossings continue to grow, so do personal safety concerns and property crimes.

Those entering the country illegally are regularly guided by human traffickers who work for violent cartels. These professional smugglers are often armed and have little regard for the immigrants they guide or the innocent property owners they may stumble upon as they move North from the border with Mexico.

With growing frequency, our members find themselves threatened by these traffickers.

In fact, many will no longer venture onto their own property unarmed because of the threat posed by the increasingly brazen traffickers who trespass across their ranches.

There is also little refuge at home. Ranchers frequently return to homes, barns and storage buildings that have been burglarized. Vehicles are often stolen as well and used by smugglers to transport immigrants and illegal narcotics.

The roads are also increasingly dangerous. High-speed pursuits on rural roads are common as traffickers attempt to evade law enforcement. Too often the chases lead to accidents and injuries for immigrants, law enforcement officers and innocent drivers who are simply in the wrong place at the wrong time.

Many of those pursuits also end in what law enforcement refer to as “bailouts.” Traffickers intentionally crash their vehicles through roadside fences before fleeing into the brush on foot. The downed fences allow livestock to escape, which then pose a deadly hazard to other drivers.

Ranchers in South Texas are spending untold hours and thousands of dollars to repair continued on page five

June 15, 2021

Global & Local Factors Driving Record Prices in Beef Market Many regions across the globe are experiencing either high cattle prices or high beef prices. While there are some common factors, such as strong demand from China, local drivers are arguably more important in creating these record cattle and beef prices.

SOURCE: RABOBANK

“We believe many of these local factors will correct and cause an adjustment in prices.

However, with China’s demand expected to remain firm, we also think the market has seen a fundamental step up,” says Angus Gidley-Baird, Senior Analyst – Animal Protein at Rabobank.

These record prices – whether cattle or beef – also highlight the pressures of a very tight market. “Given the growth in demand and global trade, pressures created in the current system mean that seasonal conditions that may have once been considered slightly abnormal are now causing major shifts in markets,” explains Gidley-Baird.

US: Strong Demand-Driven Beef Prices Renewed competition between foodservice and retail, and strong exports have put the US beef sector squarely in a demand-driven market. In April, beef prices were 18.5 percent higher at wholesale and 11. 5 percent higher at retail compared to levels seen in 2019.

Fed cattle supplies have averaged 120 percent of operational packing capacity since April 2020, so despite record strong beef demand, cattle prices have been depressed throughout the pandemic.

According to Rabobank, US retail beef prices could see increases through much of May and even June, and wholesale prices should begin to moderate in the near future. However, cutout prices could remain five percent to 10percent higher than pre-pandemic levels for much of 2021.

BORDER CRISIS fences mowed down by fleeing traffickers. These same groups regularly cut fences — instead of climbing over them — which also allow livestock to escape and force regular repairs.

Litter is ever-present and must constantly be cleaned up by ranchers, otherwise it could be ingested by livestock and cause injury or death. Cattle producers also have the sad and unfortunate task of finding and reporting those immigrants who died crossing their property.

The unimaginable burdens placed on ranchers and property owners in South Texas are very real. Not only are these individuals robbed of their possessions, but also their security and peace of mind.

Lives are at stake every day, and as the crisis continues to worsen, so will the peril for these residents.

Texas & Southwestern Cattle Raisers Association has asked Texas’ Congressional

Livestock Market Digest

Brazil: Seasonally Delayed Slaughter in a Charged Export Market The main driver of higher Brazilian cattle prices has been the delay in seasonal rainfall in a Chinese-charged export market, despite softer domestic demand.

Producers chose to delay the sale of cattle until they reached the desired weight, and with approximately 50percent to 60 percent of Brazilian cattle fattened exclusively on pasture this has caused supply to drop below demand. High cattle prices have also encouraged breeders to hold females, further limiting the supply of cattle.

Cattle prices started to soften at the end of April, but reduced supply will limit any further price reductions.

Australia: Low SupplyDriven Prices Successive years of drought and large livestock liquidation have resulted in the Australian beef cattle herd being at its lowest point in over 30 years. The improved seasonal conditions in 2020 and 2021 created intense competition among producers looking to restock properties and generate value. Young cattle prices jumped almost 30 percent YOY in February 2020 and rose another 20percent in February 2021.

Rabobank believes that current cattle prices will ease as cattle numbers increase and producer demand dissipates.

However, as the supply chain overcomes the disruption, and consumers adjust their price expectations, the market will adapt and a new, higher baseline will be established.

China: Strong Demand Supports Beef Prices China’s beef cattle prices increased steadily entering 2021, and were up nine percent YOY in April. This represents over a 30 percent increase compared with the same period in 2018 (pre-ASF era). The key driving force behind this price escalation is the slow growth of domestic production, which has not been able to keep up with the strong growth in consumption. This has led to rising beef imports by China in past years.

Although a portion of beef consumption is expected to continued from page four

delegation and state leaders to act swiftly and provide all necessary resources for law enforcement to stem the tide of illegal border crossings.

The association’s officers have also instructed our government relations staff to work with policy makers at the state and federal level to secure whatever assistance can be made available to cattle producers and have asked the Texas & Southwestern Cattle Raisers Association Special Rangers — the association’s licensed peace officers — to respond to these property crimes and aid cattle producers in security planning.

I hope you will join us in urging the border states and U.S. officials to provide the resources necessary to protect the cattle producers facing this crisis. There is a crisis occurring on Texas’ Southern border, and our ranchers and landowners need help.

▫

shift back to pork – when pork production recovers – Rabobank believes beef demand will remain strong, continuing to drive imports from the global market.

Europe: Reduced Supply Lifts Prices EU beef carcass prices have been firming since Q4 2020, with the average EU beef carcass price currently up seven percent on the same period last year. Cow prices are even higher, up 15 percent YOY, indicating a shortage of slaughter cows.

Prices have moved against the normal declining seasonal trend in the first couple of months of this year, driven by reduced cattle supplies across the EU. Even though an increase in supply is expected in 2H 2021, prices will likely be held up by increased demand as foodservice reopens.

▫

New Plants Plans Pop Up Across the Country

Page 5

Court Dismisses Challenge to USDA Cattle-Tracking Proposal

BY CHRIS SCOTT / MEATINGPLACE.COM

A

federal district court in Wyoming dismissed a lawsuit seeking to roll back USDA plans to require the use of radio frequency identification (RFID) tags on the ears of all adult cattle moved across state lines.

The Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA) was among several entities challenging USDA’s proposed farm-to-processing plant traceability system for beef cattle in a lawsuit that was originally filed two years ago.

The suit alleged that the agency’s Animal and Plant Health Inspection Service (APHIS) violated the Federal Advisory Committee Act (FACA) by trying to impose mandatory use of an RFID system to track cattle after Jan. 1, 2023. Two months ago, APHIS withdrew a 2020 notice on the issue and announced it would not move forward to mandate RFID technology to the exclusion of other animal identification systems.

An attorney for R-CALF USA and several individual ranchers said the plaintiffs are considering options to continue efforts to block APHIS from forcing livestock producers to use RFID eartags, according to a statement released by the organization.

▫

BY LISA M. KEEFE MEATINGPLACE.COM

R

esponding to the supply chain disruptions wreaked in 2020 by the spread of the pandemic, plans have emerged in several states to build new smaller meat processing facilities, especially to expand capacity serving small producers.

In North Dakota, the agriculture commissioner awarded $61,500 to Butchers Edge to start a meat processing facility in Edgeley. It was one of five grants, totaling $194,875, awarded by the state’s Agricultural Products Utilization Commission. The owners plan to retrofit an existing building and hope to be operating by January or February 2022, according to a report on NewsDakota.com, however, other planning hurdles remain before construction can begin.

Meanwhile, in Kingsbury, N.Y., Kilcoyne Farms, a supplier of “all-natural” beef to foodservice and consumers, has applied to the Warren-Washington Industrial Development Agency to build a 25,000 to 30,000 square foot greenfield plant.

The Hudson Falls-based company expects the project would cost about $8 million. In addition to bringing its own harvesting and processing needs closer — it currently harvests its livestock at a facility several hours away, according to a report in the Glens Falls, N.Y. PostStar — Kilcoyne promises to use the facility as an education and training facility for skilled butchers to serve the local culinary, hospitality and regional meat industries.

And in Mississippi, the state’s Department of Agriculture and Commerce has approved $3.1 million in funding to double the meat processing capacity across Mississippi. Seven companies have been approved for the funds, including Attala Frozen Foods, Homestead Farm and Packing, Pitcock Processing Inc., Cutting Edge Meat Co., A Cut Above Meat Processing and Market LLC, Blue Sky RE LLC and Juniper Creek Farms LLC

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Page 6

Court Analyzes Texas Farm Animal Liability Act When Horse Injures Bridesmaid at Wedding Venue

BY TIFFANY DOWELL, TEXAS AGRICULTURE LAW BLOG

L

obue v. Hanson, a case involving a wedding venue, a bridesmaid, a horse, and the Farm Animal Liability Act recently caught my attention.

Background Todd Hanson owns a fifty-six acre property in Crosby, Texas, which he rents as a wedding venue called The Barn at Four Pines Ranch. The weddings are held in a barn on the property.

Cattle and horses are on the property, but there is a fence separating the livestock from the barn.

When the bride and groom arrived on their wedding day, they noticed that the horses were in the area that should have been enclosed for the attendees. About an hour before the wedding began, Melissa Lobue, a bridesmaid, walked over to the horses and began to pet one named Shiloh. When she moved to pet a second horse, “Shiloh disagreed, and grabbed her by the arm, shook her, and tossed her to the ground.”

Lobue filed suit against Hanson for damages. She filed a premises liability claim, alleging that Hanson failed to warn her about the horse, failed to warn of his viscous tendencies, and that by leaving the horse loose, unattended, and in an unsafe place, he breached the duty to keep the property in a reasonably safe condition. She also alleged negligence, based on Hanson’s failure to warn, failure to properly handle the horse, and having the horse in an unsafe place.

Hanson responded seeking to dismiss the case on two grounds: (1) the Farm Animal Liability act precludes her claims; and (2) the uncontroverted evidence that Hanson was not aware of Shiloh displaying any dangerous tendencies, thereby defeating a required el-

Livestock Market Digest ement of her negligence claims.

The trial court granted summary judgment in Hanson’s favor, dismissing her claims.

Appellate Court Opinion The appellate court affirmed the dismissal.

Farm Animal Liability Act The Texas Farm Animal Liability Act precludes liability against “any person…” for “property damages or damages arising from the personal injury or death of a participant in a farm animal activity or livestock show if the property damage, injury, or death results from the dangers or conditions that are an inherent risk of a farm animal activity…”

An inherent risk is broadly defined by statute, including “the propensity of a farm animal to behave in ways that may result in personal injury or death to a person on or around it…”

The court noted that in order to successfully qualify for the immunity offered by the Farm Animal Liability Act, Hanson had to prove the following: (1) Hanson qualified to seek protection under the Act; (2) Lobue was a “participant”; (3) in a farm animal activity; and (4) the injury was a result of an inherent risk.

The parties agreed that the first and fourth elements were met. Hanson qualified as “any person” and an unfamiliar person approaching and petting horses involves an inherent risk.

The parties disagreed, however, as to whether the second and third elements were met.

The Act defines participant as “a person who engages in a farm animal activity, without regard to whether the person is an amateur or professional, or whether the person pays for the activity or participates in the activity for free.” Last year, the Texas Supreme Court held that the Act applies to participants at shows, exhibitions, rodeos, and trail rides generally, but does not apply to ranch employees injured in the course of their employment. The Act includes a number of actions in the definition of “farm animal activity” including an “event…that involves farm animals” and handling farm animals.” Neither the term “handling” nor “event” are defined in the Act. Lobue claims she was not a participant because she was not engaged in a farm animal activity. Hanson, on the other hand, claims her injuries occurred while “handling” Shiloh, and as part of an “event” involving a farm animal, fitting squarely within the statue. The court looked at the dictionary and

USDA regulatory definitions of handling and ruled that the trial court did not err in holding that by petting him, Lobue “handled” Shiloh. By petting the horse, “she was ‘handling’ him in this literal sense of the term” making her a participant in a farm animal activity.

Lobue mentioned in passing that the Act does not apply when a “spectator” is injured (rather than a participant) but the court noted that she did not adequately brief that issue or offer evidence or explanation why she should be considered a spectator.

Further, the appellate court held that the trial court would not have erred to find the wedding qualified as an “event… that involves farm animals” also falling within the definition of a farm animal activity. The venue’s website mentions livestock on the property as an attraction and offers pictures with the horses as part of the wedding package options. Hanson testified that as part of the contract with the bride and groom, he advised them to warn guests not to approach the animals, indicating that the parties at least contemplated possible interaction with the cattle and horses.

Exceptions to the Farm Animal Liabili´ty Act Lobue also claimed that the trial court failed to find that an exception to the Texas Farm Animal Liability Act applied, meaning that the Act’s protections were inapplicable to Hanson.

First, she claims that Hanson failed to post warning signs as required for a farm animal professional under the statute.

The court agreed that the signage was not present, but held that the requirement of signs “is not in fact a statutory exception to the liability shield.” The court indicated that the signage requirement was not listed in the same statutory section as the other exceptions to the applicability of the Act. “While the provision mandates signage, it is without any defined penalty for non-compliance.” Thus, despite the lack of signs, the court held this did not preclude the Act’s protections from applying to Hanson.

Second, Lobue raised the exception stating that the limitation of liability does not apply if “a person provided the farm animal or livestock animal and the person did not make a reasonable and prudent effort to determine the ability of the participant to engage safely in the farm animal activity or livestock show and determine the ability of the participant to safely manage the farm animal or livestock animal, taking into account the participant’s representations of ability.” The court held this exception inapplicable because she did not allege it was this lack of effort that caused her damages.

Thus, the court sided affirmed the trial court’s dismissal of the case.

Concurring Opinion Judge Spain wrote a one-sentence concurrence, saying that he agrees with the outcome, but wants to note that the court does not and need not address how the “spectator” status relates to the summary judgement motion. continued on page eight

June 15, 2021

The View FROM THE BACK SIDE

Horse Racing to the Finish BARRY DENTON

T

his is not the oil field article that I had planned to write for this month. As this situation unfolded, I felt it became more important to discuss this in a timely manner. While I am writing this, I am waiting for The Preakness Stakes to take place in Baltimore, Maryland.

Many of us out there are going to watch the race, some will even bet on it, and others of us are right there watching it happen. However, the most important aspect of this drama is how America is handling it. What does this have to do with southwest agriculture? Everything.

On the first Saturday of May our tradition for the last 147 years is to turn all our attention to Louisville, Kentucky and the Kentucky Derby. This is truly America’s race. This is the standard by which all other horse races are measured.

Certainly, we have other horse races around the world with larger purses, yet the Kentucky Derby remains the pinnacle and carries the most prestige. This is the race that every horse, horse trainer, and horse owner wants to win.

The winner of the 147th running of the Kentucky Derby was Medina’s Spirit which was trained by Hall of Fame trainer Bob Baffert for the owner businessman Amr Zedan. The other interesting part of the story is that Medina’s Spirit was originally purchased for $1000 as a yearling.

Seven days after the Run For The Roses, a bad drug test emerged showing minute traces of betamethasone in the blood, 21 picograms to be exact. If you had 21 picograms in your hand you would have to get a magnifying glass to see it.

However, there are extenuating circumstances.

First off, according to veterinarians betamesazone is not a performance enhancing drug. As a matter of fact, it was a legal topical steroid known as Otovax, prescribed by a licensed veterinarian, to help the horse with a skin problem or itch. It certainly would not help the horse run faster.

Consider this, if you apply Cortizone-10 to quell an insect bite, can you run faster? In a western state it would not even be considered an infraction. This was not intentional and according to veterinarians it would not effect the outcome of the race.

It is merely a technicality that could happen to any horse trainer. Therefore, Bob Baffert and Medina’s Spirit should be completely exonerated. I do think that ultimately, they will prevail.

I believe Churchill Downs has lost their mind by suspending horse racing’s greatest trainer of all time over nothing. If you stop and think about it, professional jealousy runs deep. I think it frustrates the people running Churchill Downs that the guy from California comes in there and wins all their big races.

Afterall Kentucky is where American horse racing was born, all the great racehorses are bred, and they think they are the ones that ought to be dictating horse racing, not some guy from California. Furthermore, in order to enter his horse in the Preakness Stakes Mr. Baffert’s horses, including horses running in other races on the same weekend, were subjected to a series of blood tests before they were entered.

Why just the Baffert horses? Why not test all the horses that were entered? There comes that eastern blueblood mentality once again.

I am certain that you have noticed that if you remain at the top of your game then there is always someone out to get you.

The worst part of it all is the media, especially NBC Sports with their “holier than thou” attitudes during their broadcasts.

They want us to believe with all the misinformation they use and the left leaning commentary that they know what is best for horse racing.

The way NBC Sports, and the rest of the media are handling this incident is a great example of the left’s “cancel culture.” The NBC Sports commentators were promoting the idea of a federal czar to oversee horse racing. Why would the horsemen ever want that?

Everything the federal government touches they make worse. Keep that in mind. Then we would probably get a rodeo czar, a 4-H czar, a roping czar, etc. You know how those government people like to create jobs for themselves and feel important.

In other words, if they do not deem you worthy of their attention they will try and malign you until you no longer exist.

Since this left movement can scare the horse racing world with all its millionaires into behaving the way they want, then who is to say that coming after horse shows and rodeos is not next.

This sickness prevails all over the world. I just saw where the Labour Party in England wants to enact laws that state the owner of a dog can be arrested if it chases a squirrel and kills it. As ridiculous as it sounds it seems these left-wing fanatics tend to keep gaining ground on those of us with common sense and virtues.

By no means do I think this fight is over, but if you are in the fight make sure that you win. Thankfully I watch very little television. See what watching one sporting event got me?

▫

June 15, 2021

Livestock Market Digest

REAL ESTATE GUIDE

www.scottlandcompany.com

Ben G. Scott – Broker Krystal M. Nelson – NM QB 800-933-9698 5:00 a.m./10:00 p.m.

RANCH & FARM REAL ESTATE

We need listings on all types of ag properties large or small!

■ 6,000 hd. permitted feedyard in the Texas Panhandle.

■ SARGENT CANYON RANCH (Chaves/Otero Co.) – 18,460 +/- ac. - 200 +/- deeded, 2,580 +/- State, 11,200Livestock +/- BLM, 4,480 +/Forest - permitted for 380 Market Digest AUs year-round, well watered, good headquarters, very nice updated home, excellent pens & out buildings.

Scenic ranch!

■ FOUR MILE ROAD RANCH – Borden Co., TX. – 939.37 ac. +/- in two tracts. A good combination ranch for cattle, hunting & recreation.

■ PRICE REDUCED! QUAIL HAVEN along w/deer, turkey, antelope & other wildlife – Borden Co., TX., 1,672.8 +/- ac., well located near Gail/Snyder, Texas on pvmt. & all-weather road, well improved.

■ RIMROCK RANCH – BUEYEROS, NM – 14,993.49 total acres +/- (12,157.49 deeded acres +/-, 2,836 +/- New Mexico State Lease). Live water with five miles of scenic Ute Creek. Elk, deer and antelope to go along with a good cattle ranch!

■ SUPER OPPORTUNITY! One of the best steak houses in the nation just out of Amarillo & Canyon at Umbarger, TX., state-of-the- art bldg., turn-key w/ complete facilities in full operation at this time.

■ ALAMOSA CREEK RANCH – Roosevelt Co., NM 14,982 +/- acres (10,982 ac. +/- deeded, 4,000 ac. +/- State Lease). Good cow ranch in Eastern NM excellent access via US 60 frontage between Clovis and Fort Sumner. Alamosa creek crosses through the heart of the gently rolling grassland.

■ DRY CIMARRON – Union Co., NM – 1,571 521 West Second St. • Portales, NM 88130 ac.+/- of grassland on the dry Cimarron River, located 575-226-0671 fax on pvmt. near Kenton, OKor just575-226-0672 under the Black Mesa.

■ COWEN ROAD FARM – Sedan, NM – two circles Buena Vistasown Realty in CRP until 2023, one circle back to native grasses, all weatherQualifying road.

Broker: ■ STRONGA.H. WATER! Co., CO – 640 ac. +/- w/ (Jack)Baca Merrick 575-760-7521 three pivot sprinklers & three irrigation well all tied www.buenavista-nm.com together w/underground pipe, fourth quarter in native grass permitted for irrigation according to owner.

■ EAST EDGE OF FT. SUMNER, NM – a 900 hd. grow yard w/immaculate 7.32 ac. +/-, a beautiful home, & other improvements w/a long line of equipment included, on pvmt.

■ PRICE REDUCED! PECOS RIVER RANCH – a scenic, 968 +/- ac., will sell in tracts of 418 ac. & 550 ac., live water ranch that lies along both sides of the Pecos River between Santa Rosa & Ft. Sumner, NM. Wildlife, water & cattle make an excellent pairing for the buyer who is looking for top tier assets in a rugged New Mexico Ranch.

■ SWEETWATER CREEK – Wheeler Co., TX – 640 acres of scenic ranch land traversed by seasonal Sweetwater Creek just a few miles west of New Mobeetie, TX. 200 feet of elevation change. MINERALS INCLUDED! ■ NE TEXAS IRRIGATED FARM – Red River Co., TX. – 1,326 ac. with 6 pivots, unlimited water from 6 lakes with 100+ ac. of surface area. Excellent farm or cattle operation.

TATE GUIDE

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mitt, TX 79027 Scott - Broker lifying Broker am/10:00pm company.com

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uadalupe Co., eded & 519 anch on both g flow daily) mner; wildlife, buyer looking New Mexico

980 ac. +/past, land lays e of Hwy. 54. on Co., NM – and w/statey remodeled in very good n pvmt. . +/- heavily listing r livestockagent w/ 75-825-1291. ences etc., on ta-nm.com e front gate. ic ac. +/- on d by Lincoln in Pines & ed meadow Penasco. This uild a legacy

4 ac. irr., on exico, adjoins l.

POTENTIAL xline Special,

+/- w/water & a beautiful 3 bathrooms, etal shop.

TEXAS & OKLA. FARMS & RANCHES • 83 acre wood home with barns, meadows and woods. Fronts State Rd. $545,000 • 160 acre Ranger Eastland Co, $560,000

Page 7

TEXAS & OKLA. FARMS & RANCHES

Selling residential, farm, ranch, commercial and relocating properties.

Selling residential, farm, COLETTA RAY ranch, commercial and Pioneer Realty relocating properties.

1304 Pile Street, Clovis, NM 88101

COLETTA RAY 575-799-9600 Direct Pioneer Realty 575.935.9680 Office 1304 Pile Street, Clovis, NM 88101 575.935.9680 Fax 575-799-9600 Direct coletta@plateautel.net 575.935.9680 Office www.clovisrealestatesales.com 575.935.9680 Fax coletta@plateautel.net www.clovisrealestatesales.com

230 SOCORRO ACRE GAME & RETREAT PLAZA REALTY that is a dream.

Lakes, woods,

SOLD

the Plaza meadows,Ongame galore, 35 miles Donald Brown out ofQualifying Dallas, Kaufman Broker County.

505-507-2915 cell @10,000 PA 505-838-0095 fax 116–Plaza 133 ACRES 24 Miles out of PO Box 1903 Socorro, NM 87801 $13,000 Dallas, ready to develop. www.socorroplazarealty.com dbrown@socorroplazarealty.com per acre 313 ACRES NORTH OF DALLAS AG LAND LOANS AGMAJOR LAND LOANS ON HIGHWAYS 121 & AsLow LowAsAs 3% As 4.5% 2.9% 69 – OPWKCAP Nice horse barn with living OPWKCAP 2.9% INTEREST RATESAS AS LOW AS 3% INTEREST RATES LOW 4.5% quarters. Scheduled $11,500 onon25AS Payments Scheduled 25 Years Payments Years 234 SHOW RANCH – 8,000.

Imaculate home, cattle show barn, Joe Stubblefield & Associates 2313830 milesWestern from Dallas $2.8MTX St., Amarillo,

SOLD

806/622-3482 • cell 806/674-2062 joes3@suddenlink.net Michael Perez Associates Nara Visa, NM • 575/403-7970

Paul Bottari, Broker

775/752-3040

SCOTT MCNALLY

Nevada Farms & raNch PrOPerTY

www.ranchesnm.com 575/622-5867 575/420-1237 Ranch Sales & Appraisals

www.bottarirealty.com

AG LAND LOANS INTEREST RATES AS LOW AS 3.5% Payments Scheduled on 25 Years

Joe Stubblefield & Associates 13830 Western St., Amarillo, TX 806/622-3482 • cell 806/674-2062 joes3@suddenlink.net Michael Perez Associates Nara Visa, NM • 575-403-7970

B

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Call

505-243-9515

for more information

14298 N

521 West Second St. • Portales, NM 88130

575-226-0671 or 575-226-0672 fax

Buena Vista Realty

575-226-0671 www.buenavista-nm.com

See these and other properties at www.buenavista-nm.com

575-226-0

AS PRO R

joepriestre.net • joepriestre@earthlink.com

Rural Properties around Portales, NM 1242 NM 480 - Nice home on 59.7 acres, grass 427 S Rrd P 1/2 - Large nice home, lots of barns 24+ ac 1694 S Rrd 4, Great home, barns, cattle pens, location 2344 S Rrd K east of Dora, NM, great - Near wind farms All properties excellent homes & can have horses, etc.

521 West Se

Advertise to Cattlemen and Ranchers!

As Low As 3.5% OPWKCAP 3.5%

521 West Second St., Portales, NM 88130

Qualifying Broker: A.H. (Jack) Merrick 575-760-7521 www.buenavista-nm.com Call Buena Vista Realty at 575-226-0671 or the listing agent

Lori Bohm 575-760-9847, or Melody Sandberg 575-825-1291.

Many good pictures on MLS or www.buenavista-nm.com

521 West Second St. • Portales, NM 88130

575-226-0671 or 575-226-0672 fax

Buena Vista Realty

Qualifying Broker: A.H. (Jack) Merrick 575-760-7521 www.buenavista-nm.com

CALDWELL RANCH • 840 Immaculate, Hunt Co, TX. PRICE REDUCED First time offering of the Caldwell Ranch comprised of a

twoRanch. noncontiguous of native grass rangeland separated by lands belonging to other ownership. Located Pastures, 40tracts tanks, and approximately 20 miles northwest of the small community of Elida, New Mexico in northeast Chaves County. lakes. Beautiful home, barns, CALIFORNIA RANCH Theandtwoother tracts are approximately apart as the crow flies. Access to both tracts isPROPERTY good by maintained improvements.

Some 2.5 milesNORTHERN 31 years in the ranch business - see www.ranch-lands.com for videos & brochures minerals, game Roadways. galore. All for $1.35 Chaves County The north tract, referred to as the Cothern Place, is comprised of approximately DUANE & DIXIE McGARVA RANCH: approx. 985 acres Likely, CA. with about 600+ acre gravity flood million.± deeded acres that is partially fenced 2,500 with PLUS one private well.542The south referred theareRippee Place, is irrigated pastures AU BLM permit.tract, About 425 acres so ofto the as irrigated level to flood excellent pastures with balance good flood irrigated pastures. NO PUMPING COST! Dryland is perfect for comprised of approximately 4,700 deeded acres and 640 State Lease fenced into three pastures, watered by expansion to pivot irrigated alfalfa if desired. Plus BLM permit for 540 AU is fenced into 4 fields on about 18,000 acres only 7 miles away.2.5 REDUCED PRICE - $3,125,000 year around cow country. two wells and pipelines. The two tracts are approximately milesASKING apart.

Excellent Joe Priest Real Estate RANCH: 82,000$345 acres - with deeded acres plus $2,484,000. contiguous USFS & BLM Grazing capacity is estimated to be 130BEAVER AUYL.CREEK Priced at about $370 per2,700deeded acre; permits for 450 pair; 580+- acres irrigated alfalfa, pasture, and meadow from Beaver Creek water rights and one irrigation well. 3 homes, 2 hay barns, 4 feedlots each w/ 250 ton barns, 2 large reservoirs, can run up to 500-600 cows YEAR ROUND. REDUCED ASKING PRICE - $5,400,000.

LITTLE RANCH Excellent cattle ranch located in southeastern NM approximately 50 joepriestre.netCOWBOY • joepriestre@earthlink.com

BEAR CREEK RANCH: Approx. 1,278 acres winter range ground and recreational property. Located on Bear miles northwest of Roswell on the Chaves/Lincoln County line.

7,455 acresbe with 2,600 deeded.

Creek and accessed from South Cow Creek Valleytotal Road. Should great hunting for deer, wild turkey, 150 wild AU pigs, quail & owner states good trout fishing in Bear Creek. Deeded access easement thru neighbor ranches. capacity. Livestock water is provided twoNowells; one electric submersible, one solar well with considerable water improvements & very private inside the ranch.

Now only $700 per acre pipeline scattered throughout the ranch. Fenced into two- $894,600 larger pastures and two smaller holding traps. Several large, open draws run through the ranch providing excellent areas.

Terrain is open andINC. rolling. Good BILL WRIGHT,overflow SHASTA LAND SERVICES, 530-941-8100 • DRE# 00963490 • www.ranch-lands.com turf cover. Had a good rain recently, all draws ran big. Come take a look. Not many like this on today’s market.

y limits of Roswell, NM. Six total acres ved with a 2, 200 square foot residence,

Bottari Realty

1-800/671-4548

• 270 acre Mitchell County, Texas ranch. Investors dream; excellent cash flow. Rock formation being crushed and sold; wind turbans, some minerals. Irrigation water developed, crop & cattle, modest improvements. Just off I-20. Price reduced to $1.25 million.

1-800/671-4548

Bar M Real Estate

Joe Priest Real Estate

Scott McNally, Qualifying Broker ch that has been owned and operated s southeast of Corona, NM in Lincoln Bar M Real Estate, LLC M Lease Acres and 2,240 NM State Box 145, Cimarron, NM 8771488202 • 575/376-2341 • Fax: 575/376-2347 P.O. Box 428,P.O.Roswell, NM land@swranches.com • www.swranches.com UYL. Water provided by five wells and corrals. The ranch had a good summerOffice: 575-622-5867 CHICO CREEK RANCH, Colfax Cell: County, NM. 575-420-1237 NEW LISTING. CIMARRON ON THE RIVER, Colfax County, NM. 7.338 +/6,404.26 +/- Total Acres, Located approximately 10 miles east of deeded acres with 4.040 acre-feet per annum out of the for a brochure or view on my website. Website: www.ranchesnm.com Springer New Mexico. 3,692.60 +/- deeded acres with balance Maxwell-Clutton Ditch. Custom country-chic 2,094 +/- sq ft

R CT

Page 7

O’NEILL LAND, llc

in state lease. Excellent grass and water. Two plus miles of the Chico Creek meandering through the center of the property.

Additional wells and dirt tanks. Nice historic head quarters privately located with shade trees and excellent views of the property. Shipping pens in central portion of property. $2,837,318

home. Owns both sides of river in places. Horse/cow/chicken/ vegetable garden/greenhouse/orchard set up. Country living at it’s finest, in town, but in a world of your own. Very special on river. Appointment only. $650,000.

RATON MILLION DOLLAR VIEW, Colfax County, NM. 97.68

TABLE ROCK GEM! Elegant, quality, meticulously maintained, attention to detail - words do not do justice to this home. The finish work in this home down to the marble floors in each bathroom and hardwoods is spectacular. Walk into the living room with soaring ceilings (check the crown molding) and a wall of windows to view the beautiful lake. The gas fireplace (one of three) warms, warms a chilly morning. The chefs kitchen features custom cabinets, granite countertops, center island, pantry, wine fridge and lots of built in features. The formal dining and casual dining areas offer a serene view of the lake. The main floor large master also has a lakeview (and fireplace) with ensuite bath and walk-in shower, and separate jetted tub. Upstairs are two full bedrooms with beautiful lakeview. Also upstairs a non-conforming third dorm bedroom which accommodates multiple beds or serves as a separate living area. Downstairs features another living area, gas fireplace with a built in bar (second wine fridge), another bedroom with lakeview, and a large storage room with a safe/tornado shelter.

There is also a separate pool table/workout room, 3 car garage, central vacuum, three HVAC systems, on a corner lot with beautiful landscaping. Both covered decks with large outdoor fans face the lake.

You won’t find a better home on Table Rock Lake. MLS#60189891 10 ACRES OF COMMERCIAL PROPERTY. Incredible highway visibility & access from either East or West directions on Hwy. 60, 3 miles East of El Rancho Truck Plaza & 4 miles West of Willow Springs. Natural gas may be available on site. LOCATION PLUS! This property is well suited for many types of businesses. (Restaurant, Retail, Motel, Business of any kind)! A Must See Property.

MLS#11402703

O’NEILL LAND, llc P.O. Box 145, Cimarron, NM 87714 • 575/376-2341 • Fax: 575/376-2347 land@swranches.com • www.swranches.com

WAGON MOUND PLACE, Mora County, NM 8.202 +/- deeded acres on western edge of I25/Wagon Mound has two homes, abundant water with one well, two springs and pond. Other outbuildings and many trees would suit many purposes. $190,000.

SOLD

RATON MILLION DOLLAR VIEW, Colfax County, NM. 97.68 +/- deeded acres in 2 parcels with excellent home, big shop, wildlife, a true million dollar view at the end of a private road. $489,000.

SOLD

MIAMI 20 ACRES, Colfax County, NM quality 2,715 sqft adobe home, barn, grounds, fruit trees and mature trees. Extremely private setting. REDUCED $320,000. This is a must see.

CIMARRON HIDDEN PLACE, Colfax County, NM. 1.66± deeded acres with a 2,304 sq ft home updated with recent remodels including large open kitchen vaulted tin ceiling, three bedrooms and two bathrooms, edge of town amazing views. $290,000

E

E

COLMOR-OCATE CREEK, Colfax and Mora County, NM 853 +/- deeded acres split by I25 and Ocate Creek.

Suit cattle operation, with some wildlife drawn to water holes in creek. $617,000 EAGLE NEST ESCAPE, Colfax County, NM. 78.42± deeded acres in off HWY 64 overlooking Eagle Nest Lake, private pond, two elk tags, 3 bedroom home with and large shop garage able to store your RV and big toys.

Improvements almost half a mile off highway. Truly an escape. $795,000

CON W

C

L Page 8

Livestock Market Digest

continued from page seven

Key Takeaways This case is a good reminder for all farm animal owners that unexpected injuries can occur at any time. Here are a few of my key takeaways.

First, as I say with every case against a rural landowner, it is critical to have liability insurance.

Remember that liability not only covers a landowner up to the policy limits if a covered claim is made, but it also provides a defense in the event a lawsuit is filed.

Even in a situation like this one, where the landowner was able to prevail and get the case dismissed, he would have likely encountered substantial legal fees to do so, and having the defense provided by insurance would alleviate that expense.

Second, I find the court’s analysis of the lack of the sign interesting. The statute certainly does require a farm animal professional to have the signage posted. However, as the court pointed out, the statute does not spell out the consequences of failing to do so, and the lack of signage is not listed as an exception to the Act’s protection. I’ve not seen a court address this issue previously, so that was interesting to consider. That said, I would still recommend that all farm animal professionals have the sign posted as required by the Act to ensure protection.

Finally, keep in mind that there are amendments to the Farm Animal Liability Act currently pending in the Texas Legislature.

▫

Ishmael Named Hereford World Executive Editor KANSAS CITY, MO.

W

es Ishmael, long-time cattle business journalist and communicator recently joined the American Hereford Association as Executive Editor of Hereford World magazine (HW). He will oversee HW editorial planning and production, with emphasized focus on the commercial cattle industry.

“As a breed, we strive to serve commercial cattle producers with genetic solutions and genetic selection tools, along with programs and information meaningful to their businesses,” says Jack Ward, Executive Vice-president of the American Hereford Association. “Putting Wes in this new position strengthens our commitment to the commercial sector and our ability to communicate more effectively with them. His decades of work in the cattle industry also provide our breeders a different lens through which to analyze evolving issues that impact them and their commercial customers.”

“Whether it’s genomic technology, market segregation or nutritional management, the more we learn, the more we figure out what we don’t know,” Ishmael says. “I look forward to continue serving commercial cattle producers and Hereford breeders by working to share information that’s helpful to them. I’m excited to be part of the Hereford team.”

Ishmael’s articles and columns appear in a variety of cattle business publications over time, including BEEF magazine, where he was a contributing editor for more than 20 years. He also publishes the daily Cattle Current markets newsletter and podcast.

▫

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Expanding feds and kissin’ chickens 30 by 30 Last month I wrote of President Biden’s 30 by 30 proposal, where the goal is to protect 30 percent of the land and 30 percent of the water by 2030.

In response to the President’s order, the federal agencies have now submitted their preliminary report Conserving and Restoring America the Beautiful.

Not surprisingly, the agencies support the proposed acquisition program. They expound upon the many benefits that would result from this expansion of the federal domain.

The report states: “The investments in restoration, reforestation, reclamation, and other activities that improve the function and form of our natural systems—from the Everglades and the Great Lakes to the Chesapeake Bay—will not only bolster our nation’s resilience to extreme wildfires, sea level rise, droughts, storms, and other climate impacts, but they will also create a new pathway to good-paying union jobs and provide economic benefits to communities across the nation.”

Each time an acre of land passes from the private sector to federal ownership or control, our resilience to wildfire is greatly improved, droughts will lessen, sea levels will not rise, storms and other climate impacts will be less severe.

Not only that, in addition each time an acre is transferred from the private sector to the oink sector, “good paying union jobs” will be created and the economic benefits to communities will occur across the entire nation!

Why didn’t someone think of this before? Actually someone has, and Russia is way ahead of us on this progressive path to prosperity.

There is the issue of nature-deprived communities.

The report described these as “communities of color and low-income communities” and states they “have disproportionately less access to nature’s benefits.” In addition, they found that an “estimated 100 million Americans do not have a park within a ten-minute walk of their home.” That is shocking!

Let’s take a look at what is really being attempted here.

These same communities deserve decent nutrition so we have a food stamps. They must have shelter, so we have low-income housing programs. They have economic issues so we have welfare programs. All Americans deserve access to healthcare so we have Medicaid. Now we find out they are nature-deprived.

You see where this is heading?

This whole thing is a setup to create a PEP program, a Park

June 15, 2021

in Every Precinct. FDR had his Chicken in Every Pot and now Biden will have his Park in Every Precinct. Some may believe this is a wonderful, kind-hearted attempt to invoke nature for the benefit of these groups and planet earth.

Others of us recognize it for what it is: the establishing of another entitlement program and a way to funnel part of these climate funds to urban districts.

Throughout the press release and the report, you will continually find “locally led” when describing these new programs. One chapter of the report is titled, “Support Locally Led and Locally Designed Conservation Efforts.”

Finally, we have an administration that recognizes local decisions are the best decisions. That is what you would think, unless you actually read the report. Therein, you will find the following passage: To better support and encourage locally led conservation and restoration efforts across the country, however, it will be important for Federal agencies to identify areas of priority and focus for investment and collaboration.

Submit all the locally led and locally designed plans you want, but the feds will determine which are high priority and which one of those will be funded. They want local input, as long as they meet the criteria ordained by the feds.

If the feds control the rating and funding, they control the whole program.

The enviros know they are politically vulnerable because of a lack of minorities in their organizations and because minority visits to federal lands are way below their percentage of the population. Government studies show the typical visitor to a wilderness area is an upper-income white male with an advanced degree. The enviros have started several different well-funded programs in an attempt to involve more minorities in these issues, with little to show for their efforts.

So the answer is simple: If they won’t visit the parks then bring the parks to them! A PEP program does more than bring federal jobs and dollars to urban districts. It will also benefit the enviros, who will now have a captured audience to sell their wares to and a guaranteed increase in minority participation.

The debates on this issue will inevitably take place before the appropriation committees. By using existing programs, the proponents already have the legislative authority to accomplish their goal. What they don’t have is enough funding to reach their desired outcome. However, with Dems controlling both Houses of Congress and the White House, the likely success of increased funding seems imminent.

Dr. Jerry Schickedanz of the Linebery Policy Center at NMSU and former Dean of the College of Agriculture, has recently written about the 30 by 30 program. He raises the question of where is the science that justifies the program. Schickedanz notes that even the enviros aren’t in agreement on this and quotes the Nature Conservancy,

“There is no science that defines a universal threshold for the proportion of the planet that needs to be protected, no magical threshold, in other words, at which the Earth enters a safe zone.”

Schickedanz also raises the issue of how much land will it take to fulfill this mandate.

“How much land are we talking about? There are approximately 2.3 billion acres in the United States, including Alaska. It will require that the United States set aside 681 million acres to meet the 30 x 30 goal. That is equivalent to protecting the states of Arizona, Colorado, Idaho, Montana, New Mexico, Utah, Texas, Washington, and Wyoming, New Hampshire, and New Jersey, or an area four times the size of Texas.”

However you cut it, that is a huge chunk of property.

Kisssin’ Chickens The Center for Disease Control is investigating an outbreak of Salmonella across 43 states which has resulted in 34 persons being hospitalized, and they are laying the blame on backyard poultry. They say chicken or ducks can carry the germs, even if they look clean and healthy. They also say salmonella is easy to spread.

Infection can cause fever, diarrhea, stomach pain and vomiting. Most people recover without treatment, but more severe cases can cause death.

According to the CDC, onethird of the people reported ill in the recent outbreaks have been under the age of five.

“Don’t kiss or snuggle the birds, as this can spread germs to your mouth and make you sick,” said the CDC in a statement.

The official advice from government scientists is DON’T KISS YOUR CHICKENS! i.e., don’t be a dumb cluck.

I don’t know what we would do without these officials.

I’m surprised that I see no mention of chicken masks.

Personally, I have always believed in social distancing when it comes to me and chickens.

Finally, May has not been a happy time at the DuBois place. We lost Giles Lee, the last surviving member of the original NMSU rodeo team (1942). Giles was a large man with a big personality, and was in on the ground floor of establishing the National Intercollegiate Rodeo Association Alumni and a founding member of the Senior Steer Ropers Association. It was an honor and a pleasure to have known this man.

And May 24 would have been Sharon and mine’s 49th wedding anniversary.

Until next time, be a nuisance to the devil and don’t forget to check that cinch.

Frank DuBois was the NM Secretary of Agriculture from 1988 to 2003, is the author of a blog: The Westerner (www. thewesterner.blogspot.com) and is the founder of The DuBois Rodeo Scholarship and The DuBois Western Heritage Foundation

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June 15, 2021

Lots To Do In Lincoln ’21 National High School Finals Rodeo site offers variety of activities, eats, and fun for rodeo athletes and their families

N

ebraska is more than corn.

When National High School Rodeo qualifiers and their families have to head to Lincoln this summer, they’re not heading just to the land of corn.

There’s a lot more to Lincoln, and to the state, than corn and cows.

For the first time ever, Lincoln will play host to the National High School Finals (NHSFR) July 18 through 24 and there’s plenty to do in Nebraska’s capital city.

Rodeo fans will find a variety of attractions to suit every member of the family.

If shopping and great food are part of your plans, the Haymarket District and the Railyard in downtown Lincoln are just the ticket. Over 75 shops and restaurants are within walking distance in this historic part of town. For star-gazers, the Mueller Planetarium brings the wonders of the universe in an immersive-style theater setting.

For those fond of museums, the International Quilt Museum is the home of the world’s largest quilt collection. The Nebraska State Capital, a national historic landmark, is an architectural wonder, its spire rising nearly 400 feet above the plains; it’s filled with frescos, checkered marble floors, hand stenciling, and more. The Speedway Motors Museum of American Speed is for the gearheads, and for those who love tractors, the Larsen Tractor Test and Power Museum is the only tractor test

Livestock Market Digest lab in the nation.

If the outdoors, golf, water parks, and gardens beckon you, Lincoln’s Sunken Garden boasts thousands of flowers, with water lily-filled ponds. Pioneers Park Nature Center is a great fit for kids ten and under, as is the Lincoln Children’s Museum and the Lincoln Children’s Zoo, where attendees can feed the giraffes! Is golfing more your style? Hit some balls on a variety of courses, from beginners to championship level. And the whole family can cool off at the Star City Shores Water Park, with water slides, a zero entry pool, and even a sand area in which to build sand castles!

And there are plenty of food and lodging choices as well. Lincoln has over 900 restaurants, with everything from ethnic to comfort food, from pizza to what Nebraska is known for: beef. And the capital city has over 5,000 hotel rooms, too, for relaxing and putting up your feet after a hard day’s rodeo.

And for those with campers, there are several great lakes in the area at which to “pitch your tent.”

As high school rodeo athletes and their families make their way to Lincoln, there are fun things to do to break up the tedium of travel. Canoe or tube down the beautiful Niobrara River, along Nebraska’s north border. Thousands of pioneers traveled under the shadow of Scotts Bluff National Monument, in western Nebraska, and it’s still a beacon to travelers.

On the eastern end of the state, Omaha offers the world’s number one zoo, Henry Doorly Zoo and Aquarium is a chance to see exotic animals.

For those who love rockets and space, the Strategic Air Command and Aerospace Museum in Omaha is a great place to “visit” outer space, and the Joslyn Art Museum, also in

Page 9

Omaha, is home to great pieces of art, from the Greeks to the Renaissance, from the Baroque period to the artists of the American West.

And visitors to Nationals and Lincoln should be sure to add the Rodeo and Horse Expo Show to their itinerary. Featuring over 100 vendors, one-of-akind items will be for sale, with a western lifestyle appeal. It will be held at the Lancaster Event Center Fairgrounds during the days of the rodeo.

Fans are also invited to attend the Welcome to Lincoln Day Celebration on July 17.

This day-long celebration offers special opportunities, attractions and discounts culminating in a celebratory event at the Railyard, located in the Haymarket District in downtown Lincoln.

Evening events will include dummy roping contests, live entertainment, and introductions to the top rodeo contestants from each state. All Welcome to Lincoln Day activities are free.

Over 1,700 high school student athletes will be in Lincoln July 18 through 24 to compete in the world’s largest rodeo, and while they’re in town, there is plenty to see and experience.

JULY 29-30, 2021

To plan your itinerary and find more information, visit Lincoln’s NHSFR website at NHSFRLincoln.org or the association’s website at NHSRA.com. The staff at the Lancaster Event Center Fairgrounds, where the rodeo will be held, has made a list of their favorites, which can be found at NHSFRLincoln.org.

UNITED WIRELESS ARENA | DODGE CITY, KS

FEATURED KEYNOTES

▫

Troy & Stacy Hadrick

5th Generation Ranchers

Lane Nordlund Ag Broadcaster – Emcee

USDA Budget Would Boost Conservation, Nutrition Funding

Forrie J. Smith

Actor, Stuntman, and Real-Life Cowboy Cast member of the Paramount Network show, Yellowstone

BY JULIE LARSON BRICHER / MEATINGPLACE.COM

I

n the Biden administration’s $6 trillion fiscal 2022 budget request submitted to Congress last week, USDA would receive $29.9 billion in discretionary funds for operating expenses, nutrition programs and conservation efforts.

The nine percent increase in discretionary budget authority, or $2.6 billion above the FY 2021 budget, also includes funding for rural development, the Forest Service, food safety and research programs.

Among the initiatives targeted to receive increased funding are:

■■

■■

Expand broadband access. $700 million is being requested for Reconnect to provide access to quality broadband to rural residents and address challenges for tribal communities.

Support for a strong nutrition safety net. The 2022 budget requests $6.7 billion for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) to help vulnerable families, address racial disparities and address rising food insecurity.

■■

■■

Combat the climate crisis and conserve land. The budget increases funding for “climate-smart” agriculture, climate resilience and clean energy by nearly $1.5 billion. The funding will support work to address the underlying conditions of drought that are leading to longer, hotter fire seasons.

Invest in research and development capacity for farmers. The 2022 budget request provides $4 billion for USDA’s research, education and outreach programs focused on making investments in agricultural research to put science and data-driven tools and American technologies in the hands of farmers.

Funding for mandatory programs is estimated to be $168.1 billion, a $20 billion decrease from 2021 budget levels, due to reduced need for coronavirus-related direct aid programs to farmers, ranchers and nutrition programs in 2021. Mandatory outlays, according to the agency, include crop insurance, most nutrition assistance programs, farm commodity and trade programs, and a number of conservation programs.

USDA has requested a total of $198.1 billion in 2022, a decrease of nearly $17.4 billion over fiscal 2021.

In a press statement, Secretary of Agriculture Tom Vilsack said the administration’s proposed budget request will spur new job creation and opportunities in rural America and help restore America’s advantage in agriculture.

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Page 10

Livestock Market Digest

CLASSIFIEDS

Competitive Bidding Pushes Land Prices Higher SOURCE: FARMERS NATIONAL COMPANY

KADDATZ

I

nterest in purchasing agricultural land has grown since a coronavirus pandemic-induced slowdown blanketed the land market last spring.

Farmers are feeling more financially secure as very strong commodity prices arrived on top of large government payments in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years.

“Farmland sales prices are up five to 15 percent in the past six months with most of the increase coming since the first of the year,” said Randy Dickhut, senior vice president of real estate operations at Farmers National Company. “Competitive bidding among interested buyers is really pushing land prices right now.”

Individual investors, both first-time, and experienced buyers, are stepping into the land market as they search for a safe, long-term real estate investment in a low interest rate environment. Investor buyers seldom outbid farmer-buyers for a good farm unless they have 1031 tax-deferred exchange funds to spend in a short time period.

The increase in ag land prices is happening in most

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areas of the Grain Belt and with most types of land.

“At Farmers National Company auctions, we are seeing competitive bidding push prices for good cropland to levels approaching 2014 values,” Dickhut said. “Average to lower quality farms are experiencing stronger sales prices, too, while pastureland increases are more modest.”

Currently, the demand for good farmland is outstripping the supply of farms for sale. During the previous few years, the number of farms for sale has been lower but there remained enough demand in the farmland market to balance the lower supply resulting in steady land prices. At this time, the strong demand to own farmland is one of the main factors pushing prices higher.

Higher land values will bring more sellers into the market as estates, trusts, recent inheritors and family groups will decide to sell the farm or ranch and capture the higher prices. Also, uncertainty surrounding future tax policies will trigger a sale sooner than later for some.

Landowners who are thinking of selling their farm are now factoring in both the higher proceeds they would get from the sale and what po-

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tential tax obligations might be due.

The land market will be balancing increased demand for good cropland against what might be an increasing supply of farms for sale.

“Our agents are fielding an increased number of calls from landowners who want to sell because of the aforementioned reasons. Our pipeline of sales activity for summer and fall is filling up.” Dickhut said.

Farmers National Company’s land sales activity has already been very brisk and above the market the past seven months with dollar volume of land sold up 60 percent over last year and up 67 percent over the average of the past three years. The number of acres sold in this time period is up 64 percent from last year.

In a rising land market, it becomes more difficult to predict what a farm will actually sell for on any given day especially when there is demand from both farmers and investors, Dickhut said.

“The best way to sell cropland in the current market is to take it to auction or some form of competitive bidding that brings together the potential buyers and lets them push the price,” he said.

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Talking Taxes: Gift Tax

not actually pay that amount due to the annual exclusion and the lifetime exclusion.

BY TIFFANY DOWELL / TEXAS AGRICULTURE LAW BLOG, TEXAS A & M AGRILIFE EXTENSION

The annual exclusion is an amount below which, the gift tax does not apply. Each year, the IRS sets an annual exclusion amount, and any gifts from one person to another falling below that exclusion are not subject to the gift tax. For 2021, the annual exclusion is $15,000. Importantly, the annual exclusion applies to each donee (gift recipient). This means that a person may give any other individual up to $15,000 in 2021 without gift tax implications. For example, a mother could give each of her four sons and each of their wives $15,000 this year without being subject to the gift tax even though the total amount gifted was $120,000.

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118 W. BANDERA ROAD BOERNE, TX 78006

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June 15, 2021

ere is the continuation of our three-part Talking Taxes series with a discussion of the federal gift tax/ I want to offer two disclaimers. The first is that I am not a CPA or an accountant. I’m here to offer just basic information, but highly recommend that you consult with your attorney and tax professional for further advice or clarification. Second, there has been a lot of talk from Washington, DC, about potential changes to some of these rules. The posts in this Talking Taxes series will explain the law as it currently is written and applied, but everyone needs to be sure to pay attention to any changes that could be forthcoming.

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What is it?

The gift tax is a federal tax on asset transfers for less than fair market value. In other words, if you give an asset to someone, or if you sell an asset and less than full consideration is paid, it is considered a gift subject to the gift tax.

Who pays it?

Generally, the donor (person giving the gift) is responsible for the gift tax if it is owed.

How is the gift tax calculated? The gift tax rates range between 18 to 40 percent depending on the value of the taxable gift. However, most people will

What is the annual exclusion?

What is the lifetime exclusion?

The lifetime exclusion is a concept we talked about in the estate tax blog post at https://agrilife.org/texasaglaw/2021/05/17/talking-taxes-estate-tax/ . For 2021, every person has an $11.7 million lifetime exemption. If a person makes a gift this year to another person worth more than $15,000, they are required to file a gift tax return. The gift giver will not, however, automatically owe the gift tax. Instead, the amount over the annual exclusion will be deducted from your lifetime exemption.

For example, in 2021, if you give your child a gift of $25,000, this is considered a taxable gift because it exceeds the annual exclusion. Because of that, you continued on page eleven

June 15, 2021

Baxter BLACK ON THE EDGE OF COMMON SENSE

www.baxterblack.com

Animal Bonding

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oday there is an increased recognition of the bonding process between man and animals.

Pets are now referred to in politically correct circles as companion animals. Companion.

By definition; an associate, a comrade. It’s not a bad choice of words in a world where families get fractionated, children leave home, neighbors don’t know each other and people get lonely. A pet can be a good companion.

continued from page ten

will have to file a gift tax return, and the $10,000 that exceeds the annual exclusion will be deducted from your lifetime exclusion. No gift tax will actually be paid until the lifetime exclusion has been exhausted.

When is the gift tax return due?

Anyone who makes a taxable gift (one exceeding the $15,000 annual exclusion) must file a gift tax return (Form 709) by the normal tax filing deadline the year after the gift is made.

Note, this gift tax return is required for any taxable gift, even if the lifetime exclusion has not been exhausted and even if no taxes are actually owed.

What exemptions exist?

There are certain gifts excluded from the gift tax.

First, as discussed above, any gift worth less than the annual exclusion is not subject to the gift tax.

Livestock Market Digest

Of course, when the word ‘bonding’ is used, they are almost always speaking of the bonding between humans and dogs or cats. Wait . . . maybe not cats. I’m not sure one can bond with a cat. But, be that as it may, they are never referring to livestock people and the animals in their care.

Livestock bonding does occur infrequently in fiction. Babe, the sheepherding pig, bonded with Farmer Hoggett. Mary had her little lamb. Colonel Sanders . . . well, that might be a bad example.

I contend that in real life, there is a bonding between stockmen and their creatures. I have got a lot of miles out of pickin’ on cowmen who keep an old cow “one more year”.

As a vet I have stood at the squeeze chute every fall as the cows are worked. My job is to give

Second, there are educational and medical exclusions that may be available for a person paying school tuition or medical expenses for another person.

There are particular requirements here, including that the person giving the gift must pay the school or medical facility directly. If this may be applicable to you, contact your accountant to ensure all requirements are met.

Third, any gifts made to one’s spouse are excluded from gift tax liability.

Fourth, gifts to political organizations are excluded.

Finally, gifts given to qualifying charities are deductible from the value of the gift made.

What can a person do to avoid gift tax liability?

There can be options to consider in order to avoid gift tax liability. Before making gifts continued on page twelve

the cow a quick ‘going over’ for physical fitness and do a pregnancy examination. Typical deal; this ol’ mama comes stumbling in the chute at the speed of a sloth on Valium.

The head gate clangs shut, never touches the cow. Run a stick down her side, sounds like a prod pole across a picket fence. Her tail head is stickin’ up like a shark’s fin, she’s draggin’ one tit on the ground. I’m thinkin’ to myself, ‘is there any point in putting on a plastic sleeve and torturing this poor beast anymore?’

Then I look up to the head-

Page 11

gate and there is that good cowman, rubbing his chin and lookin’ at that old cow like he’s in a jewelry store. ‘Am I missing something here?’ I ask myself, dumbfounded. I finally realized I was missing something. That good cowman and me were not looking at the same cow! See, I was looking at an economic unit. Will she have a calf, breed back and bring another one home next fall?

He on the other hand was looking at an animal that had taken him to the pay window for ten years. He might know

her even better than that. She might have put him over a fence, or he might have helped her throughout a bad calving.

But he knows her and owes her. He wants to make sure she gets the benefit of the doubt.

And that’s a bond. As genuine as a cat or dog. Granted he doesn’t think of her as an associate or a comrade, as in “git along little comrade” or “let’s go to the pasture and gather our associates”. But it is a bond just the same, built on respect. www.baxterblack.com

PROTECT AMERICANS NOW • Do YOU want state meat inspection so ranchers can create better markets for their hard work?

• Are YOU worried about the situation at the Mexican border?

• Do YOU think ranch families in western New Mexico and eastern Arizona should be carrying the burden for the federally introduced predator?

• If YOUR answers are yes, yes and no ...

• Please JOIN Protect Americans Now in addressing these issues NOW!!!

You may donate NOW at www.protectamericansnow.org via PayPal or via check to:

PROTECT AMERICANS NOW P.O. Box 1204 Elephant Butte, NM 87935 John Richardson, President Caren Cowan, Executive Director (505) 480-4659 • www.protectamericansnow.org • protectamericansnowcc@gmail.com

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Livestock Market Digest

Wendell Berry Farming Program Graduates the Next Generation of Farmers

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he Wendell Berry Farming Program, a tuition-free college degree program that started in 2019, graduated its inaugural cohort of 12 students at the Henry County Fairgrounds in Eminence, Kentucky, on May 15.

The farmer and author Wendell Berry delivered the commencement address, a stirring assessment of the consequences to our country when millions of people have moved from farms to urban areas in a single lifetime. Sharing his belief in the fundamental laws of nature and human nature, Mr. Berry reminded graduates “if the land is to be used by people, then it must be used by people who love it. Who are culturally prepared and in-

structed to use it lovingly. And whose cultures, therefore, are sustained economically.” He went on to add, “I believe that you, along with all the rest of us, are called to take good care of our country. Which in the foreseeable future will mean both using it well and, so far as we can, healing the wounds we have given it.”

The graduates plan to follow Berry’s advice: Some will return to family farms to revitalize the land, manage forests, grow crops and raise livestock using sustainable methods.

Others will apply their education to establish new enterprises that focus on connecting people with food and farms.

The Wendell Berry Farming Program is a partnership between The Berry Center of

New Castle, Kentucky, and Vermont’s Sterling College, a small liberal arts college committed to using education as a force to advance ecological thinking and action whose faculty teach the program’s courses in Kentucky. Graduates earn a Bachelor of Arts degree in Sustainable Agriculture and Food Systems from Sterling College.

“The Berry Center’s generational, local understanding of this place and its people has been critical to the success of this program,” said Sterling President, Matthew Derr. “It’s so clear that we share a sense of trust, friendship, and commitment to community with all of those here in Kentucky.”

The first graduates of this unique degree program are also proof that innovating the way education is funded can set a new standard for the future.

Students do not pay tuition for the Wendell Berry Farming Program thanks to grant support from the NoVo Foundation and numerous gifts from

June 15, 2021 other mission-aligned foundations and individuals. Students are responsible for the cost of room, board and fees.

The revolutionary no-tuition model helps graduates to live and farm in rural communities without the burden of college debt.

“Without this program, I would never have felt empowered enough to pursue farming as a career,” said Lizzie Camfield of Campbellsburg, KY, whose graduation plans include starting her own family farm and continuing the smallbatch fermented hot sauce business she established as her capstone senior project. “I love Kentucky, but I didn’t consider it a place where I could make a life and a living, especially farming. Now I have a whole different perspective and I treasure it more than ever.”

The second cohort of students in the Wendell Berry Farming Program will arrive in Henry County to begin their education in late August.

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continued from page four

executive of JBS S.A. and his brother Jose, who was formerly JBS S.A. chairman, are back in charge of J&F Investments SA, which is the Batista family holding company that owns JBS S.A., the world’s largest meatpacking company. The Batista brothers were put in prison for allegedly bribing nearly 2,000 political and government officials including former Brazilian President Michel Temer and many of the country’s meat safety inspectors.

Wesley and Jose Batista did several months of jail time in 2018 and were banned from J&F management. J&F Investments agreed to pay $3.2 billion in fines and was said to be the largest “leniency” deal in Brazilian history. All totaled, the brothers paid fines roughly equal to what they paid for all the current beef, pork, and poultry assets of JBS USA. We suspect that in quitting the NCBA JBS was merely trying to clean up its act. Climb out of the mud, if you will. Or at least appearing to do so. Sitting on a board with your competition and going out for drinks and dinner together after a meeting might not look so good for the former convicts who allegedly know a lot about collusion.

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continued from page eleven

over the annual exclusion, a person should visit with his or her attorney, accountant, and/or tax professional to discuss other strategies.

How can a person’s gift tax impact their estate tax liability?

This is a key point for people to understand. If a person gives taxable gifts during his or her lifetime, that directly impacts the amount of his or her lifetime exclusion. Keep in mind, it is the value of that lifetime exclusion that dictates whether a person owed the estate tax or not. This is a connection that may not seem obvious, but could have major unintended consequences. For example, say that Pat has an estate worth $10 million. He does not worry about the estate tax, because he is below the $11.7 million lifetime exemption.

However, if Pat gifted land worth $2,015,000, he could have an estate tax problem. This is because Pat made a taxable gift that was $2 million over the annual exclusion. Thus, his lifetime exemption will be reduced by that $2 million, leaving him with $9.7 million. Because his estate is worth more than the lifetime exemption, he will owe estate tax.

Where can I find additional information?

For additional information on the estate tax, check out this podcast episode at https://aglaw.libsyn.com/episode-25-kristine-tidgren-new-tax-reform-law I did with Kitt Tovar from the Iowa State Center for Agriculture Law and Taxation. Additionally, the Internal Revenue Service actually has some useful explanations on their website at https://www.irs.gov/businesses/small-businesses-self-employed/frequently-askedquestions-on-gift-taxes including overviews and Frequently Asked Questions.

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