Outlook positive for Success in the show ring comes to three generations of Ratliffs By Beth Gaines-Riffel, Editor 2009, but careful Gathered around the table of the comfortable home of planning needed David and Michelle Ratliff, the stories, tips and tech- By Tracy Taylor Grondine niques of years spent in the In the year ahead farmers will probably continue to show ring come easy, with realize fairly strong cash receipts, but by the same token the youngest adding their they will see significant increases in input costs. thoughts with the oldest. Overall, the farm sector may very well see a down- And while the type and style turn in profits in 2009 compared to 2008, according to of animals that get the the American Farm Bureau Federation. judges’ nod today may have AFBF held national outlook conference earlier this changed drastically in the month in Boston. More than 50 Farm Bureau economists past 50-plus years since that and commodity specialists were on hand to gain an un- first big win for the family derstanding of the crop, livestock and inputs situation — not to mention the ad- and outlook so they can better provide the farmers they vances in the equipment and serve with the market intelligence they need. techniques used to prepare By many measures, American agriculture may be in animals for showing. But the best financial shape it’s ever been, but there are one thing hasn’t changed in potential storm clouds building on the horizon, speakers the family — they love to generally concluded. show. And it shows, pun in- “The bottom line is that farmers need to exercise tended. caution as they plan for the new year,” said Terry Francl, But it’s no joke that the AFBF senior economist. Ratliffs are serious about the The memories of three grand champion titles from the Kansas Junior Livestock Most farmers should not have trouble getting credit, craft of raising, training and Show are a source of pride for the Ratliff family of Westphalia in Anderson County. preparing animals for show but they will have to work closely with their lenders and Holding the picture of their winners, David owned the champion steer in 1979, Gail carefully prepare crop budgets, Francl said. In the up- and to their credit, each gen- eration of the family has to with the champion lamb in 1955 and Chase with the top heifer in 2008. The rest of coming growing season will face a traditional challenge: the family includes Michelle, Maycee, Morgan, Cheyanne and Madison. input costs continuing to rise, while the weaker economy their name a grand champion could well push commodity prices lower. at the Kansas Junior Live- “We are very fortunate in production agriculture in stock Show, the largest and belonged to his sister Madi- calves start out in a small them, they’d look really that our debt to asset ratio looks pretty good,” Francl possibly most prestigious son, as she showed the pen and are given the oppor- small,” the lanky, athletically said. “Agriculture still has the capacity to take on a lot youth livestock show in the champion commercial entry tunity to gain confidence in built teen explained. The more debt, but just because we can doesn’t mean we state, held each year in the in the show. It is the first the kids. “You start with a family works together, and fall. should run out and bump up borrowing.” time that three generations show stick and rub them,” he they know that some years Gail, the family patriarch, of a family have captured the said. “You get to where you are going to be better than Still, farmers will have to keep a particularly close showed the champion mar- feat. can touch them with your others. This year was un- watch on their costs in 2009. ket lamb, a Southdown, to Showing livestock for the hands all over before you put doubtedly Chase’s as his “Fertilizer costs are expected to be higher in 2009 the top honor at the show in Ratliffs is definitely a family the halter on.” heifer was only beaten in than they were in 2008. Pesticide prices may also rise, 1955. Back then it was held affair. Michelle and David There is no shortage of class once – and then it was but due to the increased role of biotechnology it is not in the stockyards near down- have five children — Mor- challenges when you’ve got by a friendly. Kansas rival at clear how much actual spending on pesticide will rise,” town Wichita. David took a gan, 17; Cheyanne, 13; Mad- five kids with competitive the regional show that pre- Francl said. Maine-Anjou cross steer ison and Chase, 10, and spirits pursuing 4-H proj- ceded the national event this The saving grace for American agriculture is the rise sired by Cunia to the win- Maycee, 9. ects, including finding the summer. in land values. ner’s circle in 1979. This The family works dili- time to get everything done Michelle and David re- “Land values serve as the shock absorber for farmers. was the second year the gently to select animals they in the barn when the kids counted that none of the kids Land values are very high right now, but just because show was held in the Kansas are interested in showing and have a full schedule of have been pressured to take they went up this year, doesn’t mean they will continue Coliseum facility north of then the kids go to work. school activities and sports. part in livestock shows. to go up,” Francl explained. Wichita. They work together to begin David lamented that finding “They’ve always been U.S. land values reached a peak in 1981 in inflation- 2008 marks the year the training process each fall and raising enough projects around it, because when they adjusted (real dollar) terms, but it took until 2006 to when the next generation of with a new crop of steers and for the kids to show and to were little David was taking reach that peak again. “It took 25 years for land values to the family broke into the heifers. The halter-breaking be successful with isn’t al- cattle to the open shows,” get back to that level, so rising land values is not always purple. This fall, Chase process is much gentler ways easy. Michelle said. “It was some- a given for American agriculture,” Francl said. Ratliff’s Limousin heifer today than it was back when “We typically try to thing that they want to do.” For 2008, farmers are expected to realize a record net bested the 300-plus head of David was an active youth match up the right calf with Morgan added that when cash income of more than $100 billion with strong corn, breeding heifers shown at participant. “They lead be- the kid,” he explained. Mor- she was little her tricycle soybean and wheat prices pumping in more cash receipts the Kansas Coliseum to earn fore they are ever tied up,” gan chimed in that the small- stood in for her calf, being to agriculture. For 2009, farm income will likely back the title of Supreme Champi- he explained. er and hopefully gentler “led” around with a rope on. One of the other heifers Chase detailed the calves go to the smaller, Continued on page 3 in the championship lineup process, noting that the younger girls. “If I’d show Continued on page 14 DOJ aims to block JBS-Swift’s purchase of National Beef The U.S. Department of prices paid to cattle suppli- cattle that has been critical pressed disappointment tional plants in the High Justice (DOJ) filed a civil ers and higher beef prices to ensuring competitive following the DOJ an- Plains and the proximity of antitrust lawsuit Monday, for consumers. In court prices to the nation’s thou- nouncement Monday that it National and Smithfield Oct. 20 in U.S. District documents, the department sands of producers, ranch- is suing to block the compa- Beef Group plants in the Court in Chicago to block deal also would eliminate a ers and feedlots.” JBS an- ny’s $550 million merger Southwest is understand- JBS-Swift & Co.’s proposed “competitively significant” nounced in early March it with buyer JBS-Swift & Co. able. However, Peel ques- acquisition of National packer and place more had reached agreements to “We are disappointed tioned the DOJ’s concerns Beef Packing Co., contend- than 80% of domestic cattle purchase Kansas City, Mo.- that the DOJ does not rec- regarding the overall re- ing the deal would cause fi- slaughter capacity in the based National Beef ($465 ognize that this transaction duction in the number of nancial hardship on con- hands of three companies: million), Smithfield Beef is pro-competitive and we firms bidding for fed cattle sumers and producers and JBS, Tyson Foods Inc.. and Group ($565 million) and plan to vigorously contest that would result from the harm industry competition. Cargill Inc., the department Australia’s Tasman Group the DOJ’s attempt to block deal, saying he’s not so sure The Attorneys General said. ($150 million). it,” USPB CEO Steve Hunt that competition in the of Colorado, Iowa, Kansas, “The combination of JBS A DOJ spokesman said said in a statement. beef processing industry Minnesota, Missouri, Mon- and National will likely the department is not chal- JBS-Swift officials did should be defined by the tana, North Dakota, Ohio, lead to grocers, foodservice lenging JBS’s proposed pur- not respond to requests for quantity of companies Oklahoma, Oregon, South companies and ultimately chase of Smithfield Beef comment before press time.