dennis sun

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, guest columnist

For those involved in agriculture, we always get suspicious when someone from Washington, D.C. says they want to do something to save America’s family farms and ranches. 

Sen. Cory Booker (D-NJ) and Rep. Ro Khanna (D-CA) are saying just this as they have brought similar bills before the U.S. House and Senate. Sen. Booker said this legislation would “transform a broken system and create a level playing field” for independent family farms. 

The Farm System Reform Act does have both good parts and bad parts. There are some national farm organizations that like the idea, but cattle organizations around the country are appalled by what’s in the bill.

Like any other bill submitted to Congress, the important parts are always in the details and where the funding is to be spent, as well as the amount of funding in the bill.

Sen. Booker has resubmitted this bill he introduced in 2019. I don’t know what happened in 2019, but it evidently was defeated or killed. The Senator must figure his chances are better this time.

The Farm System Reform Act of 2019 would strengthen the Packers and Stockyards Act to protect family farmers and ranchers by restoring mandatory country-of-origin labeling requirements for beef and pork and expand to dairy products. It would also prohibit the U.S. Department of Agriculture (USDA) from labeling foreign imported meat products as “Product of USA.” 

This bill would create market transparency and protect farmers and ranchers from predatory purchasing practices and protect livestock and poultry farmers from retaliation. It would prohibit the use of unfair tournament or ranking systems for paying contract growers.

Most family farmers and ranchers would welcome the above parts of the bill. In reality, I think if USDA would just enforce the current Packers and Stockyards Act, this would go a long ways in helping family farmers and ranchers.

Then, we come to some parts of the act I think we need to take a long look at. Sen. Booker is a vegan and while that’s his choice and right, he also has the backing of some radical animal rights groups who want livestock producers to disappear and will go to any lengths to make it happen.

The parts of the bill that could or will harm livestock producers are to place an immediate moratorium on new and expanding large Confined Animal Feeding Operations (CAFOs) over 1,000 head and phase out the largest CAFOs as defined by the Environmental Protection Agency by 2040. The act would also provide a voluntary buyout for farmers who want to transition out of operating a CAFO. 

We’re all for breaking up the concentration of the meatpackers, but will eliminating the large cattle feeders hurt all in the cattle business? I think it will. 

We have to consider if there will be an adequate number of new, smaller feeders to replace large feeders as well as their efficiency in feeding cattle. Sen. Booker seems to want no cattle feeding and to only utilize grass-fed cattle. This is not going to fly, especially in the export business. Some say it is a direct attack on cattle production. Consumers want beef from grain-fed cattle and so do others in countries that import American beef.

The most terrible part of the bill is it will have beef producers pitted against other beef producers over supporting the act, and it has already started. Beef producers divided are just what the sponsors of the act want to get rid of meat products.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

Those raising or feeding cattle or sheep in the High Plains or Rocky Mountain regions have to understand what happens in a corn field in Iowa or Brazil will affect their business.

Staying current on the news and prices should be a weekly concern.

Currently, worldwide corn prices are high due to China buying all the soybeans and corn lately. In the last year, corn prices have gone from $4.50 or $5 to a high of around $7.50 a bushel, recently dropping to around $6.94 a bushel this past week. During the last year, corn prices have dropped lower, but have recovered quickly.

Realizing we are dealing in commodities, we know supply and demand runs the show, but is this always the case? There are currently a large number of cattle on feed, and due to drought conditions, those numbers are going to grow. With high corn prices, some want heavier cattle to feed and finish out quickly, and there are some who still like the light calves to grow on grass or winter wheat for a cheaper gain.

Although, even with high corn prices, the price of feeder lambs is going up. Some feeders are buying all the lambs they can find. We realize there is a shortage of lamb products in the meat case and the foodservice industry doesn’t seem to be affected by the price of corn. At the moment, corn affects beef, but not so much lamb. I know there is someone out there who has an answer for this, but to this bunkhouse economist, it doesn’t make sense.

This past planting season was good for most farmers in the Corn Belt, thanks to good weather for planting and good soil moisture for growing. The U.S. Department of Agriculture 2021 estimate assumes planted acreage of 91.1 million acres. This is near an all-time record if those figures hold.

The ending stocks of corn are around 1,300 million bushels, which is around the average over the last 12 years. Brazil is coming out of a drought, and Argentina has placed restrictions on corn exports in fear of raising the price of fattening their own cattle – helping U.S. corn prices. Some smaller countries around the world, such as Ukraine, have really ramped up their corn production this spring.

Historically, feeder cattle prices have been determined by several factors, with corn price and fed cattle price having the greatest impact. Corn prices typically have a downward relationship to both fed and feeder cattle prices. This most likely holds true today, but there are so many other factors to include, making a decision is just more sophisticated these days.

I recently learned there are six different varieties of corn – sweet corn, popcorn, flour corn, dent corn, flint corn and pod corn. Sweet corn is a naturally sweet variety, which is harvested in the early stages, while popcorn is characterized by a hard outer shell and minimal soft starch content, but dent corn accounts for the majority of U.S. production. Flint corn is primarily found in America, Argentina and Canada, while pod corn is mainly ornamental. Genetically modified varieties are found in America, Argentina and Canada.

There we have it – more than anyone ever wanted to know about corn. What we all know is corn is very important to everyone’s food supply worldwide.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

For some time, the Department of Justice (DOJ) has been investigating the large meatpackers for a number of reasons. One of the main reasons for the investigation was unfair practices by the meatpackers.

I always figured the meatpackers used these unfair practices because they could – knowing they could get away with it – and this has harmed all on the lower chain of the meat supply.

As we have heard from Sen. Cynthia Lummis and Rep. Liz Cheney during interviews at the Roundup, the DOJ announced the reasons behind the investigation at the beginning, but has been silent until the investigation is finished to provide results. This is just the way this process works, and it takes time.

Before the DOJ investigation was announced, national livestock organizations kept asking for information and more investigations, especially the National Cattleman’s Beef Association. But, not hearing anything, we all hoped something was happening.

Then this spring, consumers realized beef prices were on the rise and some were hearing about a meat shortage again. This got the attention of members of Congress and they started to get vocal about it. Between the organizations, consumers and Congress, there was a lot of talk going on and finally some action.

Everyone realized the high price of beef only helped the meatpackers. We also realized there was an abundance of live cattle waiting to be processed and wondered why more cattle were not processed every week.

The packers were making a profit of $900 to $1,200 per head, but ranchers and feeders were getting low prices. Was this something more than supply and demand, and did this action place our food supply at risk?

As we know, the national livestock organizations got together and wrote some common goals. This united front pleased Congress and everyone involved. The Senate and House Agriculture Committees, along with the White House, started doing something.

About 100 years ago, Congress passed the Packers and Stockyards Act to protect the poultry raisers, hog farmers and cattle ranchers from unfair, deceptive and anti-competitive practices in the meat markets. Now, the U.S. Department of Agriculture (USDA) will begin work on three proposed rules to support enforcement of the Packers and Stockyards Act.

First, USDA wants to clarify and strengthen enforcement of unfair and deceptive practices, undue preferences and unjust prejudices.

Second, USDA will propose a new poultry grower tournament system rule, with the current inactive proposal to be withdrawn.

Remember, some poultry processors have assessed large fines. And third, USDA will re-propose a rule to clarify that parties do not need to demonstrate harm to competition in order to bring an action under section 202(a) and 202(b) of the Packers and Stockyards Act.

These rules hopefully will strengthen the sustainability of ranchers, farmers and growers. USDA will spend $4 billion to support the new proposed rules and guarantee the need for greater transparency and competition in the livestock markets and the meat processing sector, including unfair treatment of some farmers, ranchers and small processors.

Some in Congress have introduced bills to help the process such as Sen. Tester (D-MT). This bill would create a team of investigators within the packers and stockyard division of the USDA that will have the power of subpoena, allowing them to obtain information to keep meatpackers accountable.

We will know hell has frozen over when we see the meatpackers accountable, but we have faith it will happen.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

We live in a capitalist’s country, so generating dollars is what our lives are all about. We promote and sell our products with pride and honesty. We hope our products will be of value to our customers, and in turn, they will help promote our story and livelihood.

As we know, those in agriculture are known for their hard work, honesty and their distaste of dishonesty. Such is the case of alternative meat products.

These alternative meat products have many names, such as plant-based meat and other names which include “meat” on the label. These plant-based products not only have meat on the label, but are also labeled as eggs, milk, shrimp, veggie burgers and tuna.

Some of the wealthiest people in America are investors in these products – even some of the biggest meatpackers – so they must feel there is a future for these products. The concerning issue is, along with telling the positive story of their alternative products, they tell an inaccurate story of the products they want to substitute.

I think they have really pulled the wool over the consumers’ eyes and wrongly hurt the meat industry. I have never heard of anyone who has tried to sell an alternative Ford pickup or any other product like that.

I can see why they are picking on milk and meat – the demand for both is huge. Milk has really been hurt by all of the alternative products out there. I don’t know why they call it the milk case anymore with all of the fake milk products. These fake products shouldn’t be in the milk case.

I don’t have a problem with these companies promoting their products, but they are spreading misinformation on meat and milk to get the consumer to buy their alternative products. These companies claim their products are healthier and rather than saying they taste better, they say they taste just like the real meat product.

I can’t imagine all of the additives they mix into their products to achieve the desired sensory characteristics of meat. Their labels may list over 20 ingredients for flavoring, coloring and binding. They also have insect imitations of meat products.

The part that really disturbs me is when the alternative meat companies say their products are more environmentally safe, don’t harm our planet and help with climate change. Nothing could be further from the truth. These claims put a guilt trip on consumers not to use real meat and milk, and it is working. Some consumers have really bought into what they are saying and it is just wrong.

I really don’t think those who own these alternative meat companies are all too concerned about the environment, but rather are concerned about making money for themselves. Some have done quite well. We have to give them credit, though, as this is working with some consumers.

This is one of the big reasons livestock producers and agricultural organizations need to get the word out on the truths of raising livestock and the positive aspects of eating real meat for both the environment and our bodies. It is again the reason we need a strong Beef Checkoff to set the record straight.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

Everyone says we live in an information age these days.

We at the Roundup take the information we provide our readers very seriously in terms of content and accuracy of the articles – it is the quality of the product readers have paid for and expect every week.

I use this space mostly to inform and throw in my opinion to get the readership to thinking and, of course, readers may agree or disagree with me and this is their right. It makes me feel better when they agree, though.

For us in agriculture, in my opinion, the best source for information is meeting at conventions – either statewide or national. The reason I’m saying this is the information one gets at these conventions is tailored towards specific needs in agriculture.

By attending conventions, one can receive information from someone who knows the issue and more important, they can question them about that issue.          Besides speakers, trade shows are a great way to gain information one may want. While most booths will have something to sell, there is great information at every booth.

The third way to get information at these conventions is visiting with everyone in the business to get a sense on how they have handled a situation or issue.

A great place to gain information and learn what’s new on ag issues is at the upcoming Wyoming Stock Growers Association (WSGA) summer convention, June 2-4 at the Holiday Inn in Sheridan. The theme for the 2021 Wyoming Cattle Industry Convention & Trade Show is “Positioning Wyoming’s Beef Industry for Success.”

Wednesday’s schedule is meetings of Wyoming CattleWomen, WSGA Young Producers Assembly and Wyoming Stock Growers Land Trust, with tours of King’s Saddlery and the University of Wyoming (UW) Research Station, all followed by an evening reception.

Thursday starts off with annual reports of various organizations, followed by a panel of the Young Producers Assembly. Next is a panel from UW Extension Service, followed by Kristie Mazko of UW with a talk titled “Sustainable Ranch Management Assessment Tool.”

The rest of the day is WSGA committee meetings, which are a great place to give input on the various issues. At noon, they will honor the Wyoming Beef Council’s 50^th birthday. That evening at the banquet will feature Gov. Mark Gordon and First Lady Jennie Gordon.

Friday will start with the prayer breakfast, followed by Sen. Cynthia Lummis speaking from Washington, D.C. The general session continues with Kevin Ochsner providing a talk titled “Ride the Horse in the Direction He is Moving.” Next are speakers from the National Cattlemen’s Beef Association titled “The Story We Must Tell” and “D.C. – Challenge and Opportunity,” followed by a panel on identifying where energy and agriculture coincide.

Rep. Liz Cheney will speak in person, followed by the UW College of Ag and Natural Resources Dean Barbara Rasco and Pepper Jo Six sharing about the new UW Ranch Management & Ag Leadership Program. Galen Chase of Chase Brothers will give a talk called “Land & Ranch Brokerage,” followed by Justin Hossfeld of Bayer Animal Health on the value of forage. The speaker at the awards luncheon will be retired Sen. Mike Enzi with award presentations to follow.

It’s time to let the grass grow and come to Sheridan for fun, good conversations and great information. You don’t have to be a member of WSGA to attend.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

Being in the business of commodities is not for the weak at heart. Even growing up in the livestock business does not prepare one for all the good and not so good times.

Those in the beef and lamb business are hanging on and hoping for a time of stability, if there is such a thing. Despite the pandemic and all of the uncertainty, consumer demand has never wavered and this is the best positive we’ve got. The consumer demand, both in America and through exports, is really saving us.

We realize there are some strong negatives out there, but we’ll also take advantage of the good out there.

With the strong demand, it is almost like beef and lamb have been rediscovered. Maybe the meat shortages during the pandemic and the farm or ranch-to-plate businesses that have started up around the country makes it seem so. Regardless, it’s working.

One of the better results caused by the pandemic is consumers have learned about the different cuts of meat and how to cook them properly. It is interesting to watch people at the meat counter these days – they know what cut of meat they want. The meat counter is not so confusing these days.

These same people learned what to cook with their meat and found new spices and additives to use. Paying more for Prime cuts was okay, and consumers grew comfortable with their home cooking, whereas they used to just cook hamburger at home.

The pandemic brought on other changes. City landfills have never been busier, with people cleaning out their homes and garages.

The real estate business is booming with low interest rates and people wanting to move out of cities or move to other states more favorable to their values.

People have been improving their lawns with landscaping and outdoor living improvements. Small tractor sales – the equipment under 40 horsepower – have really spiked.

States with open spaces, recreation, national parks and dude ranches will be busy this summer as people just want to get away to a safe place. These same people needed to buy new clothes that fit after sitting around the house for a year, as the only clothes they bought during the pandemic were pajamas and sweats.

Recreational vehicles and camp trailers have never been in higher demand, both to lease and purchase. The bad part is this means more traffic during summer construction season.

Somehow, we have to get past all of the shortages, from packinghouse capacity to loss of car manufacturing because we need to increase the demand for leather products for things like car seats.

There is a labor shortage as people can sit home and make more money on unemployment than a working wage. The lumber shortage and sky-high prices are a result of a shortage of truck drivers. This lack of truck drivers, along with the shortage of dock workers to unload ships, affects all household products.

Commodities are like the weather – they always seem to balance out over time. Having said this, I guess our time is coming.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

The endangered species issue has always been an important topic, especially for the western states. What compounds the issue is when it’s made political and the politics take the place of science – it comes down to science by votes.

Recently, around 80 environmental organizations asked Congress to stop approving budget riders which they say hinders adding protections for sage grouse in the 11 western states they live in.

Most of the western states that have sage grouse feel there are enough protections for the species with the individual states’ management plans – which have been approved by the U.S. Fish and Wildlife Service. But, with the Biden administration and the Democratic Congress, environmental organizations feel they have a chance to get these budget riders stopped, so they can get more protection added to the birds.

These organizations would really like to see the sage grouse listed and protected, but the truth is, at this time it just isn’t warranted and the science doesn’t show it is warranted. It is just a way to gain control of public lands and some control of private lands. Sage grouse numbers cycle up and down, and there are a lot of indicators out there to keep them from falling off the cliff.

Reading through news articles in the Oil City News, I see having a hunting season for sage grouse has come up as an issue again. While the Wyoming Game and Fish Department (WGFD) supports hunting, there are a number of people out there who don’t.

I think there are some good arguments for both sides, but the science is behind the WGFD and the emotional side is behind no hunting. Sage grouse numbers are lower in some areas now, so people are raising concerns.

We’ve all heard arguments from the pro-hunting side saying, “We’ll never get the hunters back if we stop hunting and the numbers killed don’t affect the total number of sage grouse.”

From a landowner’s point of view, I’m not for hunting sage grouse and don’t allow it on my private lands – this is my right. The reason behind this decision is I woke up one morning and realized my land was in a sage grouse core area, and the decision was made without much input from me.

I realize I could have been more involved, but that’s behind us now. While it did stop some energy development, I choose not to fight it and looked for opportunities from the decision, as the decision was made and there wasn’t much I could do about it. I also realized Wyoming has done a great job with their sage grouse management plan and have been looked on as the leader in the western states for management of the bird. 

I became involved in a Sage Grouse Initiative Program and later enrolled in a Candidate Conservation Agreement with Assurances. This program protects me if the sage grouse is listed.  

I see this past week, the Department of the Interior said they are moving to reopen, and potentially revise, sweeping Greater sage grouse conservation plans covering millions of acres across the West.

If the bird is listed or more regulations forced on us, I’m the guy who is going to take the hit as a landowner. To me, the loss of any sage grouse is bad, whether it is caused by hunting, weather or predators. I don’t like to roll the dice on the future of my ranch.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

I always figured the first of May was a good time to plan for summer months and keep in mind the positives out there. As I write this column, it’s raining out, so I guess our rain dances – weather permitting – are paying off. Most of us are still dealing with the drought, but we know each day passed is one day closer to a good rain.  

Most of the state is trying to get their livestock turned out and hoping the grass will grow. We all get a little anxious this time of the year, and then we realize we don’t usually have grass until a certain time in May anyway, but we’re always hoping.

On the state level, it looks like the books are showing more dollars from tax revenue coming in than they expected, which we’ll gladly take. In a press release, the Consensus Revenue Estimating Group had the state General Fund around $45.5 million over what they predicted around the first of the year. 

The group also showed the state Budget Reserve Account had grown by $25.7 million over what they had predicted. I believe the state is projected to receive around $1.2 billion from federal stimulus dollars in October. 

We’re gaining, but we’re going to need some energy dollars to get into the black in the future. But, the state is going in the right direction.

With the number of fat cattle in the system, the packers are not having a problem filling their needs. The cattle feeders are having a tough time keeping current, while the consumer and retail groups are currently paying top prices for beef, as the demand is strong. 

We just need to get the glut out of the feedlots. Last week’s slaughter was estimated at 649,000 head, compared to 438,614 head last year, making the total year-to-date slaughter 3.5 percent higher than this time last year. 

Here at home, the cull bull market has hit $1.25 a pound and cull cows hit around 90 cents last week. We certainly hope these positives will last through the video calf and yearling sales this summer. 

I saw an article in BEEF Daily which talked about new research at the Sioux Falls’ SAB Biotherapeutics labs where a herd of genetically modified cattle are producing human antibodies that can neutralize COVID-19. 

This trial research is being tested as a potential treatment sponsored by the Natural Health Institute. Who knows, these treatments may some day work with other diseases.

This past winter’s meat shortage was an opportunity for some livestock producers to sell their beef and lamb directly to the local consumers. Those consumers had good experiences, not only with the meat product, but with those who raised the animals. 

They ended up with good feelings for the producers and in turn, listened to them as they shared about raising the animals. Those good feelings opened the door when producers explained how they care for the livestock and how important animal welfare is to them. 

Consumers also learned of the producers’ care of the land and what sustainability really was.

This is good, positive marketing.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***

By Dennis Sun, Wyoming Livestock Roundup

We are hearing more and more news from Washington D.C. about higher taxes coming our way. For those in agriculture, this is bad news as taxes are always bad for agriculture.

The taxes we are talking about are capital gains taxes, estate taxes and corporate taxes, to name a few. The dollars we pay go straight to Washington D.C. and most do nothing to help our lives.

If one is in manufacturing, and the corporate tax rate goes up, they just pass the costs on to the consumer. In other words, they raise the cost of the product to compensate for the tax.

However, in agriculture, where our products are commodities, the price is dictated by supply and demand. This means when I sell cattle I can’t say, “I want 20 cents per pound more to pay the higher taxes.”

When one sells grain or other crops, adding on extra costs will leave producers with a product no one wants – if products are overpriced, they will not sell.

Higher taxes will just make the farmer or rancher manage for tax write-offs to lower taxes instead of other management decisions to help the farm or ranch grow or, as some say to their accountant, “I want to pay the lowest taxes you can get me and still keep me out of jail.”

To some politicians, taxes are a game. This was explained to me by an article in the Washington Examiner titled, “The real reason Biden and the swamp want higher corporate tax rates.”

The article starts by saying, “Economists will say hiking corporate tax rates doesn’t help the working class or middle class. Budget wonks will say hiking the corporate rate won’t raise very much revenue.”

It continues, “People who understand business and taxation will explain higher corporate tax rates mostly increase economic distortions by pushing corporations to structure their spending more around tax avoidance, effectively letting the tax code and politicians dictate business decisions. Politicians will say this is the point.”

They say, always remember why half of Washington wants higher tax rates and why nearly all of Washington wants a complex tax code full of loopholes, exemptions and exceptions to exemptions – they want to force businesses and earners to seek Washington’s favor. They want people to play the game, and we have to.

High taxes cause everyone to hire someone to look for loopholes and exemptions and this will give special interest lobbyists more work, which will make the politics in Washington, D.C. larger.

Big government needs big politics to survive. Higher taxes cause businesses to focus their management on finding loopholes to pay fewer taxes instead of growing the companies and hiring more people. So we play the games.

Today, we are in a global market and this is especially true for agriculture. As higher taxes cause higher prices for the inputs ranchers and farmers need, American products will not sell well on global markets. Overseas markets will look away.

Big companies in America will look to move their headquarters and manufacturing plants to countries with lower corporate taxes. We have seen them do it before.

The American economy is trying to recover from the pandemic, and higher taxes will only put this recovery at risk.

***For All Things Wyoming, Sign-Up For Our Daily Newsletter***