2020 Jan/Feb Limousin HeartBeat

OFFICIAL PUBLICATION of the HEARTLAND LIMOUSIN ASSOCIATION • JAN/FEB 2020

NEWS Covering Ground............................ 4 Fullblood Limousin Alliance......... 18 Heartland Calendar......................... 3 Heartland Highlights.................... 22 Junior Beat...................................... 8 On The Road Again.................6 & 7 Recipe of the Month....................... 6 Sale Reports.............................24-30

STATE NEWS Iowa News............................10 & 11 Kansas News................................. 12 Minnesota News..................14 & 15 Missouri News........................ 16, 18 Nebraska News.............................. 18 South Dakota News...................... 20 Wisconsin News............................ 15

ADVERTISERS Bar JZ Ranches............................. 17 Black Hills Stock Show................. 11 Bullis Creek Ranch.......................... 9 DebV............................................ 29 Goss Limousin........................... IBC GV Limousin................................ 13 Hunt Limousin Ranch.................. 25 Iowa Beef Expo............................... 5 Leonard Limousin......................... 12 Linhart Limousin.......................... 23

Economic Outlook Suggests Better Beef Prices

F

armers and ranchers needing heifers to replace old cows—or sold cows—are searching at a good time. Recent declining profits and bad winters forced downsizing of the heifer supply. But growing demand for quality beef lends an optimistic outlook for 2020 cattle prices, Scott Brown, University of Missouri Extension livestock economist, says in an Extension news release. “I see some crazy good price projections out there,” he says. But he’s not going that far in spite of seeing growing demand. So much depends on growing foreign trade, he says. Other countries want high quality.

Watch price spreads for quality beef, USDA Choice to Prime grades, he says. “It’s quality that counts,” Brown says. In a recent week, boxed-beef price for prime beef was $257 per hundredweight while select was $208. That’s $49 more for quality. Those prices work back to sales of feeder calves. But that takes farm records and marketing to capture gains. Raising and selling calves isn’t enough. Feedlot buyers learn farm reputations and bid more for quality calves. It takes management for producers to know their calf quality and market it. It’s more than just “round them

Lura Limousin................................. 7 Nebraska Cattlemen’s Classic......... 27 Red Carpet Limousin Sale............. 19 ROM’N Limousin.......................... 7 Spring Creeks Cattle Co................ 22 Symens Brothers............................ 21 Treftz Limousin...........................IFC Vaughn Farms............................... 15 Venner Family Limousin............... 30 Vorthmann Limousin.................... 29 Heartland Limousin Association • 619 139th Lane NW • Andover, MN 55304

Volume 28 • Issue 1

Wulf Cattle...............................OBC

Time-Dated Material

Wieczorek Limousin....................... 3

up and sell them”. Zac Erwin, MU Extension livestock specialist and Kirksville SMS sale manager, said bred heifers may be hard to find this year. “Most producers bred fewer than last year due to low profits,” he said. Economist Brown says volatility in beef prices results from uncertainty on foreign trade. China and Japan offer big potential for importing more beef. However, trade deals are still in flux. African swine fever losses in China play a part in beef demand. Pork prices have gone up, which has related increases in beef demand. The USDA outlooks show the potential for three million metric tons of beef to China. That approaches almost a quarter of U.S. beef for next year. The U.S. can compete with other countries for that demand. The edge goes to U.S. beef quality. Erwin says farmers selling at the Kirksville, Missouri, “Show-MeSelect” sale picked their theme: “Prepare for the Future”. Beef producers need to think ahead. There is diminishing demand for Select beef, Brown says. There’s always uncertainty. No one knows future weather, diseases, trade deals, or politics. So once again, “it’s quality that counts.”