NEW ID AND TRICH RULES FOR CATTLE IN TEXAS

The Texas Animal Health Commission has ruled that, starting January 1, 2013, all sexually intact adult cattle must have an approved individual identification device in place upon any change of ownership. Also, TAHC has announced plans to revise trichomoniasis regulation procedures to allow testing pooled samples of up to five bulls. Details on both subjects can be accessed on the commission website, www.tahc.state.tx.us.

Cattle Prices Will Continue To Rise by Chris Hurt, Purdue University

The impacts of the 2012 drought continue to play out in a beef industry discouraged by high feed prices and large cattle feeding losses. In the latest Cattle On Feed report, the USDA confirmed that placements into feed lots dropped sharply in September following substantial declines in July and August. As a result, on-feed numbers are now down nearly three percent as the beef industry is doing its part to reduce corn and other feed usage.

Drought has been particularly cruel to the beef cattle industry.  A multiple year drought in the Southern Plains has been followed by a devastating Midwestern drought in 2012 that is now forecast to continue into 2013. Brood cows remain the last major livestock industry that is land extensive. So, when dryness causes wide stretches of land to be unable to support cow grazing, producers have to buy feed or send the cows to town.

The 2012 drought began in the Eastern Corn Belt in the spring and early summer, but migrated westward in the late summer and fall. Today the drought conditions still cover 62 percent of the lower continental U.S. according to the U.S. Drought Monitor. The central Great Plains has become the epicenter with Nebraska having 95 percent of the state in the worst two drought categories. In addition to Nebraska, six other states have more than 50 percent of their area in the worst two drought categories: Kansas, Oklahoma, Colorado, Wyoming, South Dakota, and Iowa. These states represent 30 percent of the nation’s beef cows.

While some important beef cow areas have gotten relief from the drought, others have a discouraging outlook. Improved moisture conditions began in August and have continued into the fall in the Eastern Corn Belt and the Southeast. However, the forecast is for the drought to continue and possibly intensify into the winter for the area of the country that is west of a line roughly from Chicago Illinois to Lubbock Texas.

Beef cow numbers are likely to be two to three percent lower in the upcoming January inventory report. The mid-year estimates were already reflecting a four percent decrease in the national beef cow herd, and that was before the impacts of the 2012 drought began to be felt. The implications are for continued cow reductions until feed and forage supplies are restored. USDA is currently reporting 55 percent of the nation’s pastures and ranges in “poor” or “very poor” condition, the lowest two categories.

Negative returns for feedlots have continued with losses over $200 per head, according to Kansas State University. High feed prices, a small calf crop, and excess capacity in feedlots have all contributed to these large losses. Placements of calves in September were down 19 percent from a year-ago. Significantly, this was the smallest number of cattle placed in 1,000+ head capacity feedlots since USDA began the current series in 1996. The low September placements follow about a ten percent reduction in placements in both July and August.

As a result of the slowing placements in the past three months, the number of cattle on-feed dropped to three percent below year-ago levels on October 1. Cattle on-feed will play a role in rationing the short corn supply. The current three percent reduction in on-feed numbers contrasts with only a one percent expected reduction in on-feed numbers in USDA’s grain consuming animal unit calculations for the 2012/13 marketing year. Cattle on-feed represent 23 percent of the total USDA grain consuming animal units.

The cattle on-feed numbers were supportive to the overall expected reduction in per capita beef supplies of about three percent through the first-half of 2013. As a result, finished cattle prices are expected to continue to rise this year and into 2013. For the just completed third quarter, steer prices averaged near $120 per hundredweight. Prices are expected to be near $125 for the final quarter of 2012 and $130 in the first quarter of 2013. Spring prices may peak in the higher $130’s with the second quarter average in the mid-$130’s. Record high cattle prices will be in store for 2013 with prices now expected to average in the very low $130’s compared to an expected record this year near $122.

Calf prices, however, will be slower to recover due to high feed prices which will continue to depress calf prices until feed prices begin to moderate. That moderation could begin in a small way with lower soybean meal prices in the spring of 2013, assuming reasonable South American soybean production. Further declines in feed costs could occur with a better grazing season in the spring and summer of 2013 and a return to larger U.S. corn and soybean crops next year. A more abundant feed supply in the second-half of 2013 could result in a robust price recovery for calf and feeder cattle prices. Replenishment of feed supplies would also begin beef cow expansion in late 2013.

Texas Animal Health Commission Announces Details of New Cattle Traceability Rule

AUSTIN - A requirement for adult cattle in Texas to have an approved form of permanent identification in place at change of ownership will go into effect January 1, 2013 according to the Texas Animal Health Commission (TAHC). The Commission amended its rules in June of this year to enhance the effective traceability of beef cattle movements in Texas, which is the cornerstone of disease control activities. Implementation of the changes was delayed by the Commission to ensure cattle producers understand the requirements and can prepare for the changes. The amended rule permanently cancels the brucellosis test requirement for adult cattle at change of ownership, which was unofficially suspended in the summer of 2011. Although testing of adult cattle is no longer required with the rule change, all sexually intact cattle, parturient or post parturient, or 18 months of age and older changing ownership must still be officially identified with Commission approved permanent identification. This change primarily affects beef cattle, as dairy cattle in Texas have had an even more stringent identification requirement in place since 2008. Before August of 2011, official identification devices such as eartags were applied automatically at the time a brucellosis test was performed. The inadvertent loss of the identification devices applied to cattle when brucellosis testing stopped has threatened TAHC's ability to effectively trace cattle as part of any ongoing disease investigation. The TAHC routinely performs cattle health investigations where the identification and location of exposed/infected animals is critical to success. For example, 30 Brucellosis reactors, over 300 Bovine Trichomoniasis affected bulls and 22 bovine tuberculosis cases have been investigated by the TAHC to date in 2012. The new traceability rule will help preserve the TAHC's ability to identify and trace animal movements quickly and effectively, no matter which disease is involved. A complete list of acceptable identification devices/methods may be found at www.tahc.state.tx.us, but the most commonly used devices include USDA metal tags, brucellosis calfhood vaccination tags, US origin 840 series Radio Frequency Identification tags (RFID), and breed registration tattoos or firebrands. Producers are encouraged to contact their veterinarian or TAHC to determine which method of tagging will be best for their operation. Free USDA metal tags, and a limited number of free applicator pliers (dependent on available funding) will be provided by the TAHC to producers wishing to use them. The tags and/or pliers may be obtained by contacting local TAHC field staff and USDA APHIS Veterinary Services representatives. The TAHC is developing tag distribution partnerships with interested veterinary practitioners and Texas A&M AgriLife Extension offices. Partner contact information will be published as it becomes available. Producers may locate the closest tag distributor online at www.tahc.state.tx.us . Frequently asked questions Q: What age/class of beef cattle must have acceptable permanent identification? A: Sexually intact adult beef cattle 18 months and up, and Mexican origin event cattle. Nursing calves, steers, spayed heifers, bulls and heifers under 18 months are exempt (unless heifer has calved). Q: Where can I find the complete listing of all Commission approved permanent identification devices? A: Producers may access the complete list at www.tahc.state.tx.us or by contacting any TAHC office or personnel. Q: Do I have to use the free eartags offered, or can I use other acceptable methods of identification? A: No, the free metal tags are not required to be used, but they are one low cost option. Q: Will ear tag pliers be provided at no cost or will I have to purchase them? A: A limited supply of eartag pliers is available at no cost. Because of the limited supply, producers are also encouraged to consider purchasing tagging pliers from any Ag supply outlets. Q: Is this rule a federal rule? A: No, this is a Texas rule, but it will put the beef industry in compliance with the anticipated USDA Animal Disease Traceability rule for interstate movement expected to be released later this year. Q: When does this Texas rule go into effect? A: To ensure that the cattle industry has ample time to understand the changes and prepare, implementation of this rule will not take effect until January 1, 2013. Q: If my animal already has a silver test tag or orange vaccination tag in its ear, will it need to have a new tag applied if sold at a livestock market? A: No. Animals presented with approved official Id's at a market will not have to be retagged. Q: Can I move my cattle directly to slaughter from my farm or ranch without an ID? A: Yes, ranchers can move an animal directly to slaughter from their premise without an ID. Breeding cattle otherwise changing ownership by private treaty (country sales) must have acceptable identification. Q: What happens if my cattle are too weak to be safely tagged at market? A: The TAHC has proposed an amendment allowing the waiver of the rule by a TAHC inspector in consultation with market ownership or management for weak cattle presented at a sale. Q: Do I need to keep records when I sell my animal(s)? A: Record keeping is not required when animals are sold, but is strongly encouraged. Q: Who is responsible for maintaining the information related to eartag distribution? A: All official identification numbers assigned will be maintained in a TAHC-managed database. The TAHC will not track individual change of ownership transactions. For additional ear tag information, including the nearest distributor of free USDA tags, contact the TAHC Traceability Team at 1-800-550-8242 ext. 733, or visit www.tahc.state.tx.us  . Founded in 1893, the Texas Animal Health Commission works to protect the health of all Texas livestock, including: cattle, swine, poultry, sheep, goats, equine animals, and exotic livestock. ###