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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
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