I was out of town, and didn't get to post last Friday, when Mexico pols drove beef futures at the Chicago Mercantile Exchange into the ground with a transparently political, phony banning of U.S. beef imports due to alleged failures in Country-of-Origin labeling regs.
Anyone with even the vaguest, most shallow, rudimentary knowledge of Mexico trade machinations, could see through this one a mile away. Everyone, that is, except the traders at the Merc, who were salivating at the opportunity to harvest some quick trading commissions at the expense of U.S. cattlemen.
Mexico has already caved, three days later, allowing imports back in from 21 of the 30 U.S. beef plants it banned imports from. The others will be approved shortly. What a farce!
It happens with Mexico all the time, and was definitely of the "ho hum, so what?" category. As the events a mere 72 hours later have proven, this was just one more dalliance by the tinhorn pols in Mexico, taking great delight in kicking sand in the face of the big United States of America.
We could all have a good laugh at Mexico's expense, if it hadn't been so costly for U.S. producers. The Merc peeled a chunk off futures contracts, which naturally spilled over into the cash cattle market. Some of the loss has been restored, as traders sought to earn even more commissions by driving prices back up to where they belong--once the ruse was uncovered.
The stench of the rot and decay at the Merc, and its stranglehold over U.S. cattle prices, is overpowering and cries out for reform. Don't hold your breath, though, with a Democratic president from Illinois who took big campaign contributions from the Merc, voted their way in the Senate, and will most likely leave everything just the way it is.
Tuesday, December 30, 2008
Foolish consistency to resurface
Disgraced, corrupted Democratic Gov. Rod Blagojevich of Illinois, caught on wiretaps brokering President-elect Obama's Senate seat for campaign contributions, has just put his party in a vice--and particularly U.S. Senate Majority Leader Harry Reid, who said the party will never seat a Senator appointed by Blago.
He named former Illinois Attorney General Roland Burris, 71, to the seat. A revered figure in Illinois Democratic politics and trailblazing black officeholder, the Democrats will look terrible if they disallow the appointment of their body's only black member. They will also look terrible if they go back on their word, and seat a Blago nominee.
The problem is that the wheels of justice grind slowly, if at all, in Illinois and at the rate the legislature is moving to impeach and try Blago for his many crimes, it could be March or April before he's out of office. Then the Lt. Governor would take over and appoint a Senator. With the theft of a Minnesota Senate seat for comedian Al Franken likely to come up for a vote, the Democrats need the seat from Illinois filled as soon as possible.
Many members of the legislature in Illinois are bound up in Blago's transgressions, and as beholden as Blago is, to the Chicago Daily machine. They clearly see the truth of the scripture: "There, but for the grace of God, goeth I." Many would look like total hypocrites to impeach and convict Blago, but carry on their own transgressions.
The face-saving way out is to pass a bill setting up a special election, which Blago has said he will sign. Democrats in Washington hate this alternative, because in a single-shot election, given their total screwing up of the Senate seat, a Republican could well be elected to it.
Thoreau said "Foolish consistency is the hobglobin of little minds." This probably rings true to U.S. Senate Democrat ears, who are looking for a fig leaf to cover the acceptance of Roland Burris as the junior U.S. Senator from Illinois.
He named former Illinois Attorney General Roland Burris, 71, to the seat. A revered figure in Illinois Democratic politics and trailblazing black officeholder, the Democrats will look terrible if they disallow the appointment of their body's only black member. They will also look terrible if they go back on their word, and seat a Blago nominee.
The problem is that the wheels of justice grind slowly, if at all, in Illinois and at the rate the legislature is moving to impeach and try Blago for his many crimes, it could be March or April before he's out of office. Then the Lt. Governor would take over and appoint a Senator. With the theft of a Minnesota Senate seat for comedian Al Franken likely to come up for a vote, the Democrats need the seat from Illinois filled as soon as possible.
Many members of the legislature in Illinois are bound up in Blago's transgressions, and as beholden as Blago is, to the Chicago Daily machine. They clearly see the truth of the scripture: "There, but for the grace of God, goeth I." Many would look like total hypocrites to impeach and convict Blago, but carry on their own transgressions.
The face-saving way out is to pass a bill setting up a special election, which Blago has said he will sign. Democrats in Washington hate this alternative, because in a single-shot election, given their total screwing up of the Senate seat, a Republican could well be elected to it.
Thoreau said "Foolish consistency is the hobglobin of little minds." This probably rings true to U.S. Senate Democrat ears, who are looking for a fig leaf to cover the acceptance of Roland Burris as the junior U.S. Senator from Illinois.
Monday, December 22, 2008
Some late, great Bush regs to fall
In the waning days of the George W. Bush administration, federal agencies are shelling out new regulations that are very favorable to ranchers and farmers, oil drillers and miners, as well as outdoor recreation buffs using motorized vehicles.
The real question would be, where have they been the last 8 years? Why is the pro-business Bush administration taking all these good actions at the last minute?
You can bet that the ones that Obama can overturn by executive order, will be quickly. It may take a little longer if they have to go through the same federal rule making process that Bush did, but you can bet that sharp-eyed environmentalists already have their strategy underway.
For instance, the CAFO air pollution regulations largely exempt cattle and hog feedlots, as well as grazing cattle on ranches, from federal air pollution regulations. This is only sensible and fair--so much so, that's ludicrous that federal bureaucrats even had to issue a rule. What is really driving enviros nuts is that motorized recreational vehicles such as ATVs are going to be allowed in national parks.
Other regs make it easier to drill for oil or mine shale on federal lands. This is badly needed, to ever have any hope of bringing America to energy independence. But that doesn't mean the enviros aren't apoplectic. They don't care that over 60% of Americans favor expanded drilling and mining for energy development. They've never supported the democratic principle of majority rule, so why start now?
It's fun to watch them squirm, but it's only for a season. The Obama administration will be coming on like gangbusters, and these rulings won't stand. You can count on it.
The real question would be, where have they been the last 8 years? Why is the pro-business Bush administration taking all these good actions at the last minute?
You can bet that the ones that Obama can overturn by executive order, will be quickly. It may take a little longer if they have to go through the same federal rule making process that Bush did, but you can bet that sharp-eyed environmentalists already have their strategy underway.
For instance, the CAFO air pollution regulations largely exempt cattle and hog feedlots, as well as grazing cattle on ranches, from federal air pollution regulations. This is only sensible and fair--so much so, that's ludicrous that federal bureaucrats even had to issue a rule. What is really driving enviros nuts is that motorized recreational vehicles such as ATVs are going to be allowed in national parks.
Other regs make it easier to drill for oil or mine shale on federal lands. This is badly needed, to ever have any hope of bringing America to energy independence. But that doesn't mean the enviros aren't apoplectic. They don't care that over 60% of Americans favor expanded drilling and mining for energy development. They've never supported the democratic principle of majority rule, so why start now?
It's fun to watch them squirm, but it's only for a season. The Obama administration will be coming on like gangbusters, and these rulings won't stand. You can count on it.
Thursday, December 18, 2008
Obama ag appointments not too bad
If I were a member of the Democratic Party's left wing fringe, I would be livid. Only a handful of President-elect Obama's appointments to his cabinet and senior executive positions so far could be considered friendly. The gauzy leftist intellectual named as Energy Secretary, Michael Chu, is the only certifiable radical in the bunch.
Extremely mainstream Democrats, and moderate to liberal Republicans, comprise the cast. It would hard to pick out an appointment that wouldn't have fit in well with a Hillary Clinton administraton. In fact, all but a handful come straight out of husband Bill's team.
The two appointments most closely affecting agriculture certainly fit that description. Agriculture Secretary nominee, former Iowa Gov. Tom Vilsack, is an old Clinton hand who backed Hillary all the way, after he dropped out of the presidential race himself in the early going. He was the first guess made about a possible Ag Secretary, and as Iowa Governor, was right down the middle. Coming from a row crop farming state, with livestock on the side, Vilsack at least has knowledge of the business and was considered quite friendly to farmers and agribusiness.
Compared to former President Jimmy Carter's appointment of Carol Tucker Foreman to USDA, a radical consumer activist with no knowledge of production agriculture, Vilsack should be very little different his immediate predecessors on the Bush team. With a slumping economy, terrorist attacks and many other controversies on his plate, Vilsack and USDA will probably be fairly anonymous and quiet in the early days of the Obama term.
Colorado Sen. Ken Salazar as the Interior Secretary nominee greatly disappoints radical environmentalists. Coming from a farming and ranching family, even though a career government lawyer and bureaucrat himself, Salazar has fairly practical views on the use of public lands and environmental regulations. I'd have preferred his brother John, the Colorado congressman rumored to have become Ag Secretary, who is an actual hands-on farmer and rancher and more conservative than brother Ken.
Still, Ken Salazar, despite his goofy, ill-fitting cowboy hat, western suits and boots (He should go to a good western wear store, and let them dress him), is a westerner who understands the multiple-use concept on public lands. Not as moderate and non-partisan as he styles himself, Salazar is still a far cry from the environmentalist radical Obama might well have appointed.
Compared to what could have happened, production agriculture has thus far dodged a bullet.
Extremely mainstream Democrats, and moderate to liberal Republicans, comprise the cast. It would hard to pick out an appointment that wouldn't have fit in well with a Hillary Clinton administraton. In fact, all but a handful come straight out of husband Bill's team.
The two appointments most closely affecting agriculture certainly fit that description. Agriculture Secretary nominee, former Iowa Gov. Tom Vilsack, is an old Clinton hand who backed Hillary all the way, after he dropped out of the presidential race himself in the early going. He was the first guess made about a possible Ag Secretary, and as Iowa Governor, was right down the middle. Coming from a row crop farming state, with livestock on the side, Vilsack at least has knowledge of the business and was considered quite friendly to farmers and agribusiness.
Compared to former President Jimmy Carter's appointment of Carol Tucker Foreman to USDA, a radical consumer activist with no knowledge of production agriculture, Vilsack should be very little different his immediate predecessors on the Bush team. With a slumping economy, terrorist attacks and many other controversies on his plate, Vilsack and USDA will probably be fairly anonymous and quiet in the early days of the Obama term.
Colorado Sen. Ken Salazar as the Interior Secretary nominee greatly disappoints radical environmentalists. Coming from a farming and ranching family, even though a career government lawyer and bureaucrat himself, Salazar has fairly practical views on the use of public lands and environmental regulations. I'd have preferred his brother John, the Colorado congressman rumored to have become Ag Secretary, who is an actual hands-on farmer and rancher and more conservative than brother Ken.
Still, Ken Salazar, despite his goofy, ill-fitting cowboy hat, western suits and boots (He should go to a good western wear store, and let them dress him), is a westerner who understands the multiple-use concept on public lands. Not as moderate and non-partisan as he styles himself, Salazar is still a far cry from the environmentalist radical Obama might well have appointed.
Compared to what could have happened, production agriculture has thus far dodged a bullet.
Thursday, December 11, 2008
It's Denver time again!
Once again, as Christmas approaches, that means the traditional beginning of the new Cattle Industry Year is about to begin: Denver's National Western Stock Show and Rodeo is right around the corner.
Beginning the second week of January, 2009, the National Western traditionally ushers in the new year in the cattle business. Always followed directly by first, the National Cattlemen's Beef Association annual convention--and the stock shows in Ft. Worth and then Houston--the die is usually cast for the rest of the year.
Denver is where the major players in the business gather first in the new year, each year. They'll see each other at the subsequent events, but the fresh, new wine comes out in Denver. The latest cattle styles are on display for the first time in the livestock shows, the latest industry chatter is still new at Denver time, and the prices that will carry over in the spring sales are first set in Denver.
They used to call the now defunct Mile High Kennel Club in Denver "the Big Store." The voter approval of casino gambling in the Colorado mountains drove the nails in the coffin of para-mutual dog and horse racing in the city, but the National Western has always been much more deserving of the Big Store designation anyway.
Not only the livestock on display and for sale, but the international power brokers who attend from 67 or more countries, come to Denver because that's where the first action is each year, where it all begins.
Read all about it in the Record Stockman's National Western Program Issue, enclosed as section two in this week's paper.
More importantly, in these challenging economic times, you don't want to miss being on the scene yourself, at the 2009 National Western, this year--of all years--to see the beef industry pull through one more time.
It will, and you certainly want to be a part, and not miss out on the fun.
Beginning the second week of January, 2009, the National Western traditionally ushers in the new year in the cattle business. Always followed directly by first, the National Cattlemen's Beef Association annual convention--and the stock shows in Ft. Worth and then Houston--the die is usually cast for the rest of the year.
Denver is where the major players in the business gather first in the new year, each year. They'll see each other at the subsequent events, but the fresh, new wine comes out in Denver. The latest cattle styles are on display for the first time in the livestock shows, the latest industry chatter is still new at Denver time, and the prices that will carry over in the spring sales are first set in Denver.
They used to call the now defunct Mile High Kennel Club in Denver "the Big Store." The voter approval of casino gambling in the Colorado mountains drove the nails in the coffin of para-mutual dog and horse racing in the city, but the National Western has always been much more deserving of the Big Store designation anyway.
Not only the livestock on display and for sale, but the international power brokers who attend from 67 or more countries, come to Denver because that's where the first action is each year, where it all begins.
Read all about it in the Record Stockman's National Western Program Issue, enclosed as section two in this week's paper.
More importantly, in these challenging economic times, you don't want to miss being on the scene yourself, at the 2009 National Western, this year--of all years--to see the beef industry pull through one more time.
It will, and you certainly want to be a part, and not miss out on the fun.
Thursday, December 4, 2008
Cattle profits will come
The Stock Market has overshadowed all else in the U.S. economy, so basic supply-and-demand fundamentals at work in industries like the cattle business are not currently reigning.
This is about to begin, in the next few weeks, because cattle supplies are very tight, and falling. Whether you're talking feeder cattle, calves or the shrinking U.S. cowherd--the numbers are all down, and falling.
U.S. and world beef demand may have leveled off some, but is still more than strong enough to support available beef supplies. Without the U.S. economic debacle, the beef industry was poised for a very good year, indeed. The ducks were in a row, and they still are.
As the U.S. adjusts and gets comfortable with the new economic math, and with the new Obama administration, the cattle business will return to basics.
And the basics are in line for several very good years in the cattle business.
I can hardly wait.
This is about to begin, in the next few weeks, because cattle supplies are very tight, and falling. Whether you're talking feeder cattle, calves or the shrinking U.S. cowherd--the numbers are all down, and falling.
U.S. and world beef demand may have leveled off some, but is still more than strong enough to support available beef supplies. Without the U.S. economic debacle, the beef industry was poised for a very good year, indeed. The ducks were in a row, and they still are.
As the U.S. adjusts and gets comfortable with the new economic math, and with the new Obama administration, the cattle business will return to basics.
And the basics are in line for several very good years in the cattle business.
I can hardly wait.
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