Page 16 - MWC 3-9-2023s

WHAT DOES SMALLER CATTLE INVENTORY The Midwest Cattleman · March 9, 2023 · P16
MEAN FOR NEW PACKERS? BILLS INTRODUCED TO PROTECT
By Dr. Andrew Griffith, Department of Agricultural and Resource Economics, AGAINST SEC RULES
University of Tennessee
What does the smaller cat- and interest on that capital Two bills were recently Both specifically would help
tle inventory mean for the has increased significantly introduced in Congress that cattle producers by blocking
new packers that are expect- the past couple years. These would exempt ranchers and invasive reporting rules.
ed to come on line in the near large commercial packing farmers from the U.S. Secu- NCBA has urged the SEC
future? facilities are going to be rities and Exchange Commis- to limit this proposed rule
sion’s (SEC) push to enact the to publicly traded compa-
It is important to remind competing with established
readers that several large packers for a limited supply Biden administration’s pro- nies because it goes far out-
beef packing facilities are of cattle, and it will be diffi- posed greenhouse gas emis- side the commission’s pri-
being built. Some are new cult to win that price war. sions reporting rules. Sens. mary jurisdiction and places
ventures while others are ex- This does not mean they John Boozman of Arkansas an unreasonable burden on
pansions of well-established will fail, but it will result in and Mike Braun of Indiana, small businesses, farms, and
packers. thin margins to start. along with Rep. Frank Lucas ranches. NCBA will continue
The first thought that from Oklahoma, introduced to follow this issue.
comes to mind is that com- the Protect Farmers from the KLA
ing online when the beef cat- SEC Act in both the House
tle inventory is at its lowest and Senate chambers. Ad-
level in more than 60 years ditionally, Sen. John
Thune of South Dakota
and heifer retention is immi-
nent, it is going to be a tough introduced the Food and
Energy Security Act.
go of it for these operations.
The reason it will be a tough These bills take various
approaches to prohibit
go is because cattle pric-
es are expected to increase, the Biden administra-
tion from forcing its en-
which means these new op-
erations will require more vironmental, social and
governance agenda onto
capital to purchase animals
the American economy.

REPLACEMENT contributes to the limited SELECTING feed and forage costs in check
continued from page 6 number of replacement heif- continued from page 9 requires matching the cow
ers available in 2023. and herd size to available
on January 1. These extra The numbers suggest that tion and profitability goals. feed resources. Selecting re-
heifers are assumed to come beef cow herd expansion is Production goals should in- placement heifers using pro-
out of the inventory of other not possible in 2023. The clude calving windows, wean- duction records, herd goals,
heifers. For example, on Jan- available number of bred ing weights, the number of and available resources al-
uary 1, 2023, the inventory heifers, combined with a de- calves weaned, and herd size. lows producers to manage
of bred beef heifers was 3.17 crease in beef cow slaughter Profitability goals are just as feed costs and improve heifer
million head, made up of re- in excess of 20 percent lower important, and replacement selection.
placement heifer calves from year over year, might make it heifers can make or break
last year (2.14 million head) possible to hold the beef cow those goals. Will the group
and another 1.03 million herd steady this year. A low of heifers stay within your
head of extra heifers bred level of additional herd liqui- budget, or are you select-
out of the inventory of other dation is more likely. More ing heifers that need more SPRING 2023
heifers from last year. This likely in 2023 is increased supplemental feed to reach continued from page 7
calculated total 1.03 million retention of heifer calves and breeding weights? Will they
head of extra heifers bred is breeding of yearling heifers mature into cows that match purchase a bull capable of
the lowest total in the data that will fuel herd expan- available resources? Meeting improving genetic potential
back to 2001. The calculated sion beginning in 2024. If the nutritional requirements for the specific traits that will
number of extra heifers bred that happens, both beef cow of growing heifers with the translate to added value at
decreased 12.1 percent year and heifer slaughter will de- same resources they will be your intended marketing end-
over year in 2021 and de- crease sharply in 2023. fed as mature cows will help point.
creased another 1.8 percent match the heifer’s ability to Keep the following chart in
in 2022. perform on those feedstuffs mind as another way to evalu-
The decreased number when they mature, thusly, ate ownership cost of bulls on
of beef replacement heifer managing feed costs. Select a per cow or annual basis.
calves and extra beef heif- heifers from older cows as
ers bred in 2021 and 2022 these cows are successful in
helps explain increased heif- the current production sys-
er slaughter the past two tem, as replacement heifers
years. Heifers diverted from must grow and develop in
breeding to feeding contrib- similar feeding conditions.
uted to the 4.0 percent year In the upcoming year, in-
over year increase in 2021 creased feed costs to support
and the 4.8 percent year over heifer development will need
year increase in 2022 in heif- to be analyzed to determine
er slaughter. All of which financial feasibility. Keeping