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At look At tomorrow’s vets • BvD virus weArs mAny Disguises • Pellets cAn contAin ergot www.canadiancattlemen.ca September 2012 $3.00 Don’t ignore DRUG-RESISTANT PARASITES Dr. John Gilleard University of Calgary Publications Mail Agreement Number 40069240 Look for your copy of the CUSTOM FEEDLOT GUIDE inside this issue. Sponsored by: September 2012 Volume 75, No. 9 Established 1938 ISSN 1196-8923 CATTLEMEN Editorial: Editor: Gren Winslow 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 (204) 944-5753 FAX (204) 944-5416 Email: [email protected] Field Editor: Debbie Furber Box 1168, Tisdale, SK S0E 1T0 (306) 873-4360 FAX (306) 873-4360 Email: [email protected] Advertising Sales: FEATURES Deborah Wilson Box 19, Site 3, RR 1, High River, AB T1V 1N1 (403) 325-1695 FAX (204) 944-5562 HOW MUC H GAIN IS LEFT ? .....................................................7 Email: [email protected] Head Office: BVD VIRUS WEARS MANY DISGUISES ...................................... 10 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 (204) 944-5765 FAX (204) 944-5562 WH AT DOES T H E FUTURE H OLD FOR VETERINARIANS ? ........... 14 Advertising Services Co-ordinator: Arlene Bomback TH E EVIDENCE FOR VACCINATION AT WEANING (204) 944-5765 FAX (204) 944-5562 AND T H E FEEDLOT ......................................................... 18 Email: [email protected] Publisher: Bob Willcox PELLETS CAN H AVE ERGOT TOO ........................................... 20 Email: [email protected] Associate Publisher/Editorial Director: John Morriss MANAGING WDGS TO MINIMIZE E. 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For more information regarding our Customer Information Privacy Policy, Communications, cannot and do not guarantee the accuracy of the write to: Information Protection Officer, Farm Business Communications, 1666 Dublin Avenue, Winnipeg, MB R3H 0H1. information contained in this publication and the editors as well as CANADIAN CATTLEMEN and Farm Business Communications assume no Occasionally we make our list of subscribers available to other reputable firms whose products and services might be of interest to you. If you would responsibility for any actions or decisions taken by any reader for this prefer not to receive such offers, please contact us at the address in the preceding paragraph, or call 1-800-665-1362. publication based on any and all information provided. www.canadiancattlemen.ca CATTLEMEN / SEPTEMBER 2012 3 COMMENT by Gren Winslow Fuel versus food or people who notice this type of thing let 89 cents in 2010 and $1.09 in 2011. Agricul- me save you the trouble. Our 2012 custom ture Secretary Thomas Vilsack has used the same Drought has feedlot list in this issue is smaller than last numbers in numerous speeches in support of the Fyear’s — quite a bit smaller. biofuels industry. brought We have a net 11 fewer lots on the list this year. The numbers come from the work of two farm Twelve were either sold, couldn’t be reached, or state economists, Dermot Hayes and Xiaodong the ethanol/ got out of custom feeding, and one new one was Du, who use monthly regional data to estimate livestock added. Together a combined capacity of 46,500 the relationship between ethanol production and head is off the list. the profit margin for oil refiners, the so-called squabble into Some were sold to larger units, so there will crack spread. the open be cattle in those pens again this fall. But in the The fun began in July when MIT economist case of one feedlot, one of the larger ones, there Christopher Knittel and University of Califor- won’t be any custom cattle there again, certainly nia Davis ag economist Aaron Smith published not this year. a paper that shows the Hayes/Du estimates are The times, as the song says, they are a chang- driven by “implausible assumptions and spurious ing. And I suspect our little survey is just the statistical correlations.” canary in the coal mine. These are tough times for “Because ethanol production increased the feedlot sector, so it’s not surprising that even smoothly during the sample period (because of the some of the old-timers are throwing in the towel. mandate) statistical analysis with this variable is Short supplies, stiff competition for calves and fraught with danger. It is strongly correlated with feed costs pushed up by a scorched U.S. Corn Belt any trending variable.” make it difficult to see where it’s all going to turn Using the same silly estimates Knittel and Smith around for this group. “proved” that had the U.S. eliminated ethanol At least one operator knows whom we should production in 2010 natural gas prices would have blame for the current hole in his accounts. He risen by 65 per cent and unemployment would believes we should be putting up signboards have dropped by 60 per cent. along the highways to tell the driving public, As you can imagine, the reply from the RFA “you can thank ethanol for the loss of your live- was rapid and brittle. stock industry.” In mid-August the Environmental Protection There can be little doubt that ethanol has Agency (EPA) received official waiver requests from changed the old feed grain/livestock paradigm, the governors of Arkansas, North Carolina, Geor- especially in a drought year such as the U.S. (and gia and New Mexico and more were expected. It parts of Ontario) are experiencing. now has 90 days to reply, so we can expect more Perhaps that explains why I could not help but warring words in the months to come. take a small measure of glee from a WALL STREET The problem, of course, is that this is the same JOURNAL editorial last month entitled “How Etha- old fight that has taken place in every small town nol Causes Joblessness.” It takes a poke at the for generations. It’s livestock producers on one ethanol industry lobbyist, the Renewable Fuels side, crop producers on the other. Association (RFA) for its much trumpeted claim, The George Morris Centre outlined the struggle