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SPEC WLJ V89 N09.Pdf (12.42Mb) The National Livestock Weekly December 7, 2009 • Vol. 89, No. 09 “The Industry’s Largest Weekly Circulation” Web site: www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication INSIDE WLJ House plan would extend death tax for 2010 Congress was set to vote last said exempting estates as large government borrowing. Committee which is responsible week to block the expiration of the as $3.5 million from the tax “will House Republicans continue to for writing tax laws. Camp said so-called “Death Tax.” Prior to the protect all but the wealthiest battle the change, opposing any he is concerned that the $3.5 vote, the tax on estates was to end Americans.” The current law was tax at all on estates passed from million exemption would not be in 2010 before coming back in 2011 the result of a compromise reached one generation to the next. indexed for inflation, meaning at an even higher rate. However, in 2001 as Republicans worked to “I don’t think death in and of more and more estates would be congressional action on H.R. 4154, eliminate the tax entirely, how- itself should be a taxable event,” subject to the tax in the future. which was introduced by Rep. Earl ever, they were forced to settle for said Rep. Dave Camp, R-MI, who Currently, the tax affects few Pomeroy, D-ND, will extend the 45 a gradual reduction and a one- is also the ranking member of estates. In 2009, about 5,500 SECTIONSECTION TTWO—ThisWO—This week’sweek’s edi-edi- tion of WLJ includes the quarterly percent tax on estates valued in year repeal. Prior to the vote, the the House Ways and Means See Death tax on page 14 PROPERTIES Ranch and Farm excess of $3.5 million without in- law was set to return in 2011 with magazine insert. Subscribers who dexing for inflation, which means a $1 million exemption and a top did not receive the magazine the tax would envelop an increas- tax rate of 55 percent. The Con- should contact the WLJ circulation ing number of estates as time gressional Budget Office esti- department at 303/722-7600. passes. Estates valued at less than mates that permanently extend- EEXPORTS—TheXPORTS opportunity pre- $3.5 million would be exempt from ing the tax with a top rate of 45 sented by the expansion of export taxation, leaving 1 percent of all percent on estates larger than markets is key to improving the beef estates subject to the tax. $3.5 million would raise about $14 market. That was the message pre- House Majority Leader Steny billion a year. However, it would sented to producers at the recent Hoyer, D-MD, said it is important raise less than current law over Feeding Quality Forums. If U.S. beef could get that export share up to set a permanent estate tax so the next 10 years—an estimated to 14 percent, it could add $9 to rich families and small business $234 billion less. The lost revenue $13 per hundredweight. PPageage 5 owners can plan accordingly. He would be covered with increased IIDAHODAHO HHUNT—HuntersUNT in Idaho will be allowed an additional three months to harvest the remaining wolf quota. Idaho officials searching for Idaho’s wolf hunt season originally was set to end on Dec. 31, but only source of brucellosis case about 115 out of 220 wolves have been taken. PPageage 7 Idaho State Department of Agriculture (ISDA) officials are working to determine if brucellosis HHORSEORSE GGATHER—AATHER major wild found in a beef cow in Rigby has spread to other horse gather in the Calico Mountain herds or remained isolated. and Black Rock Desert area in northern Nevada, originally sched- Discovery of the infectious disease has sent uled for Dec. 1, has been postposed shudders through the state’s livestock industry until Dec. 28. PPageage 1155 because of the negative impact it could have on cattle prices and meat sales. IINDEXNDEX Bill Barton, ISDA state veterinarian, issued a memo to state Beef Bits . Page - 3 animal health officials on Monday, Nov. 30, alerting them to the Sale Reports . Page - 9 fact the cow from a new 600-head eastern Idaho herd tested Markets . Page - 10 Classifieds . Page - 12 positive for brucellosis, which can cause pregnant cows to spon- Sale Calendar . Page - 15 taneously abort their calves. It also can cause infertility, decreased milk production and weight Weekly Steeryg Dressed Weights loss in cattle, elk and bison, but is rarely transmitted to humans. 870 FFeedereeder ccattleattle ppricesrices rremainedemained sstrongtrong 860 Barton said the animal and other cattle in the herd had been 850 vaccinated for brucellosis, but the shots are not always 100 llastast wweekeek wwithith mmostost mmarketsarkets rreportingeporting 840 percent effective. No bred females or calves have been sold from 830 the herd, but some cows had been sold directly to slaughter. ppricesrices wwereere $$1-31-3 hhigherigher tthanhan ppreviousrevious 820 810 Epidemiologists have been trying to pinpoint the infection’s source. wweeks.eeks. SScarcecarce yyearlingearling oofferingsfferings wwereere The herd has been quarantined and tested, with its owner fully 800 iinn vveryery hhighigh ddemandemand aatt mmostost mmarkets.arkets. 790 See Brucellosis on page 9 780 J F M A M J J A S O N D Fed trade reported at prices steady to $1 lower Weeklyyp Ch/Se Spread $20 Early fed cattle trade last week agree with that assessment last clear signs of improvement, sus- plex with bone-in/boneless ribeyes $16 was steady to $1 lower than the week, with most of the week’s trade tained advances in the cutout will and short/strip loins all experienc- previous week as the boxed beef pointing lower. At the close last be difficult to achieve, analysts ing sharp losses in trading yester- $12 cutout and live cattle contract Thursday, the front-month Decem- continue to note. day (Dec. 2),” he reported. $8 trade faltered at midweek. The ber contract was 125 points lower The boxed beef trade was also Vetterkind said that although northern tier traded cattle on at $80.85 while February was on the defensive last Thursday, demand has softened slightly in $4 Wednesday in a range of $129-131 down 140 points, closing at $82.87, with midday prices falling $1.55 recent days in the ground beef dressed, with the bulk of the vol- and April closed 137 points lower on the Choice product which was markets, the cow beef cutout and $0 J F M A M J J A S O N D ume at $130-131. In the south, at $85.90. At the close last Thurs- trading at $138.04 while Select trim markets are being supported feedlots sold fed cattle at $82 live day, only the April 2011 contract was down 96 cents at $132.42 on by falling availability and the fall- in Kansas last Thursday and at was trading above the $80-level. light to moderate trade volume. ing U.S. dollar which continues to $83 live in Texas. While trade The April 2011 live cattle contract Vetterkind noted that the end make it less expensive for cow volume was reportedly light at closed at $90. Analysts have noted meats, particularly the round com- packers to bid up prices for domes- midday last Thursday, analysts for months that consumer discre- plex, is posing a problem for pack- tic cows than it is for them to buy said the early trade was likely tionary spending continues to fall ers and it’s taking significant dis- imports of foreign product. How- LIVE STEERS DRESSED STEERS CME FEEDER $81.88 $129.44 $93.52 enough to set the price for the re- and beef demand has been ham- counts to move product. ever, that was the exception to the WEEK ENDING: 12-3-09 mainder of the week’s trade. mered as a result. Until at least “However, probably the biggest soft market picture in the beef The pre-holiday demand for beef one facet of the industry, either hindrance to cutout values was the markets, Vetterkind said. had been filled by last week, ac- export or domestic markets, shows lower tone to the middle meat com- See Market on page 11 cording to Vetterkind Cattle Bro- kerage analyst Troy Vetterkind, who said that he expects the com- ing weeks to show a softening in EPA delays ethanol blend decision the boxed beef trade as buyers The Environmental Protection Agency (EPA) an- the increased amount of ethanol causes problems move to the sidelines. nounced last Tuesday that it will delay a decision with autos. The agency noted that it expects to “The beef market is going to be on whether or not it will allow an increase in etha- increase the approved level of ethanol blend to 15 an issue for sellers going forward nol blending rates to a maximum of 15 percent. The percent for cars manufactured in 2001 and later. as it sounds like the buy side is agency said it will wait for the U.S. Department of The agency did say in its letter that it was review- getting their December needs cov- Energy (DOE) to complete vehicle testing, a project ing labeling criteria for distributors for higher ered. This, along with an expected that is expected to be complete in the middle of 2010. ethanol blends, however, how distributors would increase in fed cattle marketings Until then, EPA said it will keep the cap on ethanol handle an array of blends given the limited amount by mid-December and holiday pro- blending rates at the current level of 10 percent.
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