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The Midwest Cattleman · September 15, 2022 · P3

September 15, 2022 Volume 28 No. 8

CATTLE MARKET REFORM CANNOT WAIT TENSIONS SURROUNDING U.S. BEEF
By Brett Crosby- USCA EXPORTS TO CHINA
A blog post published by the By Elliott Dennis, Assistant Professor & Extension Livestock Economist,
U.S. Chamber of Commerce Department of Agricultural Economics, University of Nebraska – Lincoln
on July 12, 2022, claimed that Over the last several weeks Chinese purchases. Only a few
Congress is “rushing” to con- there have been ongoing years ago, President Trump
sider “aggressive legislation heightened tensions between signed a trade deal with China
to regulate beef markets.” the US and China over the in which the Chinese commit-
Boy, if only that were true. Taiwan situation. This has ted to purchasing additional
In February 2020, the caused some concern among U.S. exports in two phases.
U.S. Cattlemen’s Associa- producers about the sensitivi- This has significantly raised
tion (USCA) hosted its annu- ty of the U.S. beef industry to the total quantity and value of
al Cattle Producer’s Forum Photo by Shelby Chesnut beef leaving the U.S. to main-
at the Public Auction Yards advanced by Senator Chuck land China and strengthened
in Billings, Montana. It was Grassley of Iowa to improve the U.S. wholesale beef price.
there that a group of produc- the cash cattle market. Even with the emergence of
ers discussed the idea of re- That concept was intro- the COVID-19 pandemic, the
igniting a concept previously continued on page 10 Chinese have continued to
purchase U.S. beef.
FEEDER CATTLE PRICES GAINING STRENGTH continued on page 12
By Dr. Kenny Burdine, Extension Professor,
Livestock Marketing, University of Kentucky WALMART INVESTS IN PROPOSED NEBRASKA
The feeder cattle market tract has increased by more
has really flexed its muscles than $10 per cwt since May PACKING PLANT
as we have moved through and this can be seen in the By Greg Henderson
summer. The October CME market for heavy feeder cat- Walmart an-
©
feeder cattle futures con- tle. Heavy feeders typical- nounced recently
ly make their that it will invest
highs around in Sustainable
this time of Beef LLC, the
year, but calf proposed $325
markets are in- million beef pro-
creasing count- cessing facility in
er-seasonally. North Platte, Neb.
A strong calf In a statement,
market going Walmart said it has signed Walmart announced a part-
into fall is a an agreement to acquire a nership with 44 Farms to
good sign for minority stake in the ranch- source high-quality Angus
er-owned start up. beef for about 500 of its stores
continued on Walmart said its invest- in the Southeast.
page 12 ment is part of a “broad- At the time, Walmart’s se-
er strategic partnership to nior vice president of meat
USDA FORECASTS FARM SECTOR PROFITS TO source top-quality Angus wrote in a blog post that the
REMAIN ABOVE AVERAGE IN 2022 beef from Sustainable Beef.” company is on a mission to
By Jim Wiesemeyer Indeed, this is not Walmart’s make “the beef America eats
USDA recently released first venture with produc- better.” Neal said customers
its latest farm sector profit ers to provide beef for its re-
forecast. According to its esti- tail stores. Three years ago, continued on page 14
mates, farmers may fare better
than previous years in many
2022 balance sheet boxes. Coming Sales-38
Net Farm Income Life is Simple-5
Net income, a broad mea- Market Report-8
sure of profits, is forecast by The 2021 value is an in- Agribusiness
USDA at $147.7 billion in cal- crease of $45.9 billion (48.5%) Directory-36
endar year 2022, an increase relative to 2020. When prior
of $7.3 billion (5.2%) in 2022 years are adjusted for infla-
relative to 2021. continued on page 10