Ultimate magazine theme for WordPress.

Top News 2021 – Progressive Cattle

Change in the beef industry is always around us, and 2021 had its share of bends, dips and climbs. Change in the country’s capital, heat in the west, increasing demand for beef worldwide and more dollars out of consumer pockets – these were just some of the most important news of the past year.

New Biden administration

A new resident came to the White House in January 2021, and President Joe Biden’s administration did not hesitate to shape federal executive policy.

Biden officials pushed large spending packages, from pandemic aid to Americans through more incentives, mask mandates for federal employees to prevent COVID-19, and the resumption of a new chapter in the fight against U.S. waters

Colin Woodall, chief executive of the National Cattlemen’s Beef Association (NCBA), tells Progressive Cattle that it was a different tone than past democratic governments.

“If you look at the President’s first year in office, we have to say that we were pleasantly surprised at the access we had. There’s someone on our NCBA team who speaks to an administrative officer almost every day. The administration recognizes the role of the cattle industry in terms of sustainability and responsibility, and goes so far as to recognize our role in containing forest fires. Although there are many suggestions that we do not like, to this day we have managed to save them all from completion.

“Overall, we are happy with our ability to work with them. We have many challenges, but we are in the game to protect our interests. “

Transparency of the beef marketTransparency of the beef market

After the Tyson fire incident and the long backlog shutdown of COVID-19, manufacturers got louder about the market disclosure in 2021. Complaints from cow calf producers about packer margins and alternative marketing agreements as well as the decline of the cash markets found benevolent ears with the legislators.

In parliamentary hearings in Congress, concerns were met with sympathy with lawmakers. But some producers warned against throwing the baby out with the bathwater.

“Please do not create regulations and laws that have the unintended consequence of harming value-based marketing,” said Mark Gardiner in a testimony to the Senate Ag committee in June. “This would destroy many years of progress for manufacturers like my family and those of our customers. Onerous legislation can lead to a quality reversal that is simply unacceptable for consumers. “

New packaging systemsNew packaging systems

Prolonged delays and closings of some of the country’s largest packaging facilities, largely due to COVID-19 outbreaks, seemed to temporarily cripple the country’s meat production ability to keep pace with consumer demand in 2020 and 2021.

The aftermath of the pandemic and other Black Swan events, such as the Tyson fire in Holcomb, Kansas, sparked interest in action as plans take shape for several new slaughterhouses of different sizes in several locations across the U.S. Plant are the Sustainable Beef Plant near North Platte, Nebraska; and the True West Beef plant in Jerome, Idaho.

The ongoing drought is depleting the US cattle herdThe ongoing drought is depleting the US cattle herd

The U.S. started the 2021 growing season with the worst average grazing and grazing conditions ever and ended the year under the same conditions. Most of the western half of the country suffered from extreme drought for most of that year. Severe drought conditions resulted in some livestock liquidations. According to data from the US Drought Monitor, around 34% of cattle are in regions where there is some degree of drought. The shortage of feed during an exceptionally dry year, along with depleted hay and other fodder supplies in the winter months, forces producers to take a harder line when it comes to slaughtering cattle. Beef production is forecast to be around £ 27 billion in 2021, up slightly from last year thanks to the liquidation of both the dairy and beef sectors.

Exports keep beef demand strongExports keep beef demand strong

U.S. beef exports hit a new record in August at £ 325 million, up £ 57 million, or 21%, year over year. The increase in beef exports in August was mainly driven by China’s strong demand for US beef. Access to the Chinese market in March 2020 coupled with China’s low domestic pork deliveries and Australia’s limited exportable beef deliveries favored the US. Since July 2020, monthly exports to China have hit a record in 10 months. China is now the US’s third largest beef destination.

It is also noteworthy that South Korea is approaching and could overtake Japan as the largest US beef export market in the next few months. In four of the eight months of this year (January, February, April and May), monthly beef exports to South Korea exceeded exports to Japan, whose export share has been 24.5% since the beginning of the year. South Korea’s share of total beef exports rose from 20.6% in 2018 to 23.4% in 2021 in the months of January to August.

Taxes and Expenses in CongressTaxes and Expenses in Congress

In mid-2021, the biggest controversy to surface in the new administration was how to pay for a multi-trillion dollar American family plan and how much to be felt by those facing the death tax.

An important measure was whether Biden would abolish the increase in the basic policy in the tax law, which exempts agriculture from high capital gains. Step-up-in basis is the readjustment of assets if they are inherited after the death of the owner.

On October 28, Woodall said the fight had proven successful after the White House said that “raising the base is no longer considered” for the removal.

“It is too early to take the win because the final deal has not yet been finalized,” he added. “We are at risk until the final vote, so we continue to advocate maintaining the elevated base as it means keeping farm and ranch families on their land. We got to this point by working with Democrats and Republicans in Congress to educate them about how the abolition of the increased tax base will create tax burdens that most farming families cannot pay.

“We also made it clear to the Biden administration that the elimination of the elevated base would run counter to their climate goals. If President Biden is to tackle climate change, he needs open spaces where grass can grow, cattle graze on. Our progress in this regard shows that agriculture still has a major voice and impact in development cooperation. “

Inflation continuesInflation continues

Higher commodity prices and higher government payments to farmers should add billions of dollars in new income to farm income estimates for the coming year. However, concerns about possible tax policy changes coupled with higher feed and fuel costs cast a long shadow over optimism. Despite relatively high commodity prices across the board, farmers and ranchers are very concerned that intermediate agricultural prices are likely to outperform profit increases in the months ahead. For example, beef producers can expect higher costs associated with higher corn and hay prices, which will weaken any gains from higher beef and beef prices.

Geed pricesFeed prices

Rising feed costs everywhere forced producers to analyze every phase of their operation, from culling to weaning to work management.

In a year in which an ongoing global pandemic continued to unsettle the beef industry at every turn, forage prices did little to alleviate concerns among farmers and ranchers. Hay prices rose steadily every month in 2021, with alfalfa, widely regarded as the guiding star for hay markets, reaching levels near the $ 300 per tonne mark.

The markets for nutritional supplements, including corn and soybeans and all associated feed by-products, were also strong in 2021, adding even more concern to cow calf producers. However, strong prices for fodder cattle and beef cattle at the end of the year give the industry cause for optimism.

Climate protection policyClimate protection policy

The Biden-Harris administration has not withheld or subtly treated its focus on climate change. Aside from investing obscene amounts of government funds in climate change research and stepping up infrastructure building efforts, the new government is beginning to take more direct steps on conservation. Biden’s “Phase I” plan involves repealing as many of the Trump-era regulations as possible and returning to the Obama-era approach to environmental policy, including repealing the 2020 National Environmental Policy Act (NEPA) rule changes and restoring it of the national monument protection.

At the UN Framework Convention on Climate Change (COP26) in November, Biden also unveiled a nationwide initiative to combat climate change that is priced at $ 555 billion. End mark

David Cooper, Paul Marchant and Carrie Veselka contributed to this report.

Comments are closed.