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March/April 2017 - Illinois Beef

IN THIS ISSUE:

BOARD OF DIRECTORS President: Scott Anderson Vice President: Greg McClure Secretary: Aaron Schafer Business Manager: Doug Turner Past President: Richard Hurst Bureau County: John DeRycke Central Illinois: Ryan Schlipf Illinois Valley: Annie Ruyle Lamoine Valley: Gary Simpson Logan County : Carla Jurgenson Northern Illinois: Jim Marsh South Central: Richard Hurst Wabash Valley: Keith Kramer Directors At Large: Scott Anderson Greg McClure Tyler Schleich Garrett Lampe Bret Parr Alan Miller Tyler Rhode Trevor Kuipers Kevin Cassady David Jenkins Jeff Dameron Brent Henkel

Illinois Angus Auxiliary Silent Auction

Madison, Wisconsin, to Host 50th NJAS

Anderson & Schafer Earn Junior Bronze & Silver Awards

Show Results

IAA Banquet Awards

Commodity Price Stabilization Expected

Stage is Set for Expansion

Building Premiums, Cut By Cut

ADVERTISERS INDEX

UPCOMING EVENTS

American Angus Assn. 1 Black Gold Genetics 2 Callan Farms 13 Cross Creek Farms 3 Curtin Land & Cattle 13 Eathington Angus 13 Evers Livestock Farm 13 Hobbs Angus 13 Kiesewetter Angus 3, 13 Kramer Angus 13 Lamoine Valley Angus 8 Lemenager Cattle 13 Miller Angus Farms 13 Neubauer Farms 13 Panther Creek Ranch BC, 13 Prairie View Farms 9 Rhodes Angus 13 Sunnyhill Angus Farm 13 Walnut Grove Angus 13 Werner Angus 13 York Farms 13

Visit the Events page at www.illinoisangus.com for a list of upcoming events and Angus sales this fall and winter.

CONTACT To place advertisements or your latest Angus news contact: Jill Johnson Illinois Beef Association Director of Communications 2060 West Iles Ave., Suite B Springfield, IL 62704 217-787-4280 jill@illinoisbeef.com www.illinoisbeef.com

Illinois Angus Auxiliary Silent Auction A special thank you to the donors and buyers for their generous support of the 2017 Illinois Angus Auxiliary Silent Auction. Earlybird Feed, Drew Stollard Rhode Brothers The Show Circuit, Roland Schumaker Hobbs Angus Ova-Time Genetics, Scott Wall Lemenager Cattle ABS, Brian Brace Vickey Kramer Sullivan Supply, Brad Schumacher Casey Jentz Rachel Frost Schafer Stock Farm Rocklin Farms Stacy Stremstefer Annie Ruyle-Chaffin Angela Kelly Chenoa Locker Windy Hill Meadows Chelsea Duis Dameron Angus Eastside Veterinary Clinic, Dr. Phil Bane Lance Moritz Pro-Fit, Brent Langman Grant Bedel Ewing Angus Brooke Schiffbauer Tori & Chuck Lemenager Kristen Parr Double DJ Muir Farm Trever Kuipers Prairie View Farms Linda Pfalzgrat Alicia & Marcus Miller The Feed Bunk, Sue Kline Diamond D’s Western Wear & Décor Rosebud’s Designs & Apparel, Kari Jo Kelso

Madison, Wisconsin, to Host 50th NJAS

An annual highlight, the National Junior Angus Show will be hosted July 7-13, 2018. The National Junior Angus Show (NJAS) will celebrate a major milestone in 2018, as it hosts the 50th NJAS in Madison, Wis. The annual event is a summer highlight for many Angus juniors and their families, and the American Angus Association is proud of the young leaders it has encouraged over the past five decades. The 50th NJAS will take place July 7-13, 2018, at the Alliant Energy Center. “We are thrilled that the National Junior Angus Show will celebrate its 50th anniversary in Madison, Wisconsin,” said Deb Archer, Greater Madison Convention & Visitors Bureau president and CEO. “This is the nation’s largest beef breed association with a large membership throughout North America. Our sales team worked hard to bring this group to Dane County and the Alliant Energy Center, and we plan to roll out the red carpet to this group in the summer of 2018.”

ANGUS MEANS BUSINESS. Casey Jentz, Regional Manager Illinois Indiana Michigan Wisconsin

NJAS participants will notice a change in the schedule, which begins on Saturday and ends on Friday. While the cattle shows are the main attraction, the week also includes the showmanship competition, junior activities and a variety of life-skills contests. “Wisconsin will be a fantastic location as we bring together Angus juniors and their families to showcase the best the Angus breed has to offer — fantastic cattle and young leaders,” says Jaclyn Clark, events and education director for the American Angus Association. Sponsored by both the Illinois and Wisconsin Junior Angus associations, the NJAS is themed “Livin’ the Dream in 2018!” NJAS Cattle Shows More than 1,200 head of cattle are expected to compete in the showring at the 2018 NJAS in Wisconsin. The classes offered will provide opportunities for juniors to exhibit their owned heifers, bred-and-owned heifers, cow-calf pairs, steers, and bred-and-owned bulls.

www.illinoisbeef.com

6908 Paoli Road Belleville, WI 53508 608.234.1998 cjentz@angus.org

A reliable business partner is difficult to come by. Contact Casey Jentz to locate Angus genetics, select marketing options tailored to your needs, and to access Association programs and services. Put the business breed to work for you. To subscribe to the Angus Journal, call 816.383.5200. Watch The Angus Report on RFD-TV Monday mornings at 7:30 CST.

March/April 2017 - Illinois Beef

RM_Jentz_1-4_BW_IllinoisBeef_2017.indd 1

1 8/30/16 9:53 AM

Black Gold Genetics n o i s i v i D y k c Kentu Female Production Sale

plus 22 Angus Bulls - 10 Spring & 12 Fall!

April 29, 2017 • 12:30 p.m.

7980 Hanna Road • Crestwood, KY GAR New Day 1920

BBG Henrietta Pride R096

Sire: B/R New Day 454 • Dam: GAR Bextor 558

Sire: VAR Generation 2100 • Dam: Deer Valley Henrietta 2912

New Day 1920 is a powerful feature of the 2nd Black Gold Genetics Sale.The dam of New Day 1920 is a full sister to the MB leader, Prophet. Sells due 9-1-2017 to WR Journey-1X74.

Selling half interest with the option to double and own full interest in Henrietta Pride R096, the daughter of the $45,000 Black Gold Genetics, Banner Elite Genetics and Cannon Ridge Ranch donor, Henrietta 2912 by the $250,000 Generation 2100.

Black Gold Lady Jaye 616

Black Gold Rita R426

DOB: 2-6-2016

DOB: 2-16-2016

Sire: EXAR Resistol 3710B • Dam: BoBo Lady Jaye 1010

Sire: GAR 100X • Dam: GAR Bextor 268

BLACK GOLD GENETICS

SALE MANAGED BY:

Donald E Jones Jr., Owner 12251 E 625th Avenue PO Box 8638 • Robinson, IL 62454 Farm 618-544-7777 Travis Stewart, Managing Partner • 618-973-3310 Danny Lynn, General Manager • 573-721-6660 Kris Lynn Kentucky Division • 573-721-6663 Office 502-222-7403

517-546-6374 www.cotton-associates.com

Illinois Beef - March/April 2017

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March/April 2017 - Illinois Beef

Reese Anderson and Lizzie Schafer Earn Junior Bronze and Silver Awards Reese Anderson, Chrisman, Ill., has earned the National Junior Angus Association’s (NJAA) Bronze and Silver awards, according to Jaclyn Clark, education and events director of the American Angus Association® in Saint Joseph, Mo. The 11-year-old daughter of Scott and Cindy Anderson attends Chrisman Junior High School and is a member of the NJAA and the Illinois Junior Angus Association. She has participated in local, state, regional and national shows and showmanship contests. At the National Junior Angus Show (NJAS), Reese participated in livestock judging and essay contests and the All-American Certified Angus Beef® CookOff. In 2015-2016 she was a participant in the mentoring program. She has submitted weight data to the American Angus Herd Improvement Records (AHIR®) and consigned cattle at the Diamonds in the Rough sale. She is also involved in her local 4-H club. Lizzie Schafer, Owaneco, Ill., has earned the National Junior Angus Association’s (NJAA) Bronze and Silver awards, according to Jaclyn Clark, education and events director of the American Angus Association® in Saint Joseph, Mo. The 13-year-old daughter of Aaron and Sue Schafer attends Pana Junior High School and is a member of the NJAA, the Illinois Junior Angus Association, where she served as director and royalty, and the LaMoine Valley Angus Association. She has participated in state, regional and national shows and showmanship contests. At the National Junior Angus Show (NJAS), Lizzie participated in the poster, public speaking, photography, team sales, livestock judging, quiz bowl and essay contests and the All-American Certified Angus Beef® Cook-Off. She has submitted weight data to the American Angus Herd Improvement Records (AHIR®) and consigned cattle at the National Western Stock Show (NWSS) sale and LaMoine Valley Angus sale. The Bronze and Silver awards are the first two levels of the NJAA Recognition Program that began in 1972. Junior Angus breeders must apply for the awards, then meet point requirements in many areas of participation before receiving the honors. Applicants are evaluated in areas of junior Angus association activities and leadership, participation in showmanship, contests and shows, using performance testing to improve their herd and their progress in producing and merchandising Angus cattle. The NJAA promotes the involvement of young people in raising Angus cattle, while also providing leadership and selfdevelopment opportunities for the nearly 6,000 active members nationwide.

Illinois Beef - March/April 2017

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Show Results 2017 Illinois Beef Expo Junior Show

Grand Champion Angus Heifer

Grand Champion Angus Steer

Division 4 Champion Shown by Kiley Carroll

3rd Overall Steer Shown by Adam Miller

Reserve Champion Angus Heifer Division 1 Champion Shown by Nalaney Guyer

Reserve Champion Angus Steer Shown by Adam Musgrave

Division 1 Reserve Champion Shown by Anne Dameron

Division 2 Champion Shown by Brecken Craig

Division 2 Reserve Champion Shown by Macie Carroll

Division 3 Champion Shown by Sheridan Hank

Division 3 Reserve Champion Shown by Lauryn Mool

Division 4 Reserve Champion Shown by Max Dameron

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March/April 2017 - Illinois Beef

Show Results

Grand Champion Bull

Grand Champion Female

Reserve Champion Bull

Reserve Champion Female

Shown by Olivia Wilson

Shown by Prairie View Farms

Shown by Lemenager Cattle Illinois Angus Futurity Sale Manager: Angus Live

First Place Get-of-Sire Shown by Pasture View Angus

Lots

Gross

Average

18 Total Registered Bulls

$114,700

$6,372

41 Open Heifers

$181,650

$4,430

17 Bred Heifers

$85,700

$5,041

58 Total Registered Females

$267,350

$4,609

76 Reported Sale Total

$382,050

$5,026

Top Selling Lots: Lot 64 (Bull) - PVF Inauguration 6174, consigned by Prairie View Farms - $47,000 to multiple buyers Lot 27 (Open Heifer) - PVF Proven Queen 6151, consigned by Prairie View Farms - $13,000 to Brecken Craig, Illinois Lot 57 (Bred Hefier) - Kramers Nellie 560, consigned by Kramer Angus - $14,500 to Rita Woodworth - Indiana

Produce of Dam Shown by Henderson Angus Farm 6

Illinois Beef - March/April 2017

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IAA Banquet

Sweepstakes Award Winners

Auxiliary Scholarship Recipients

Illinois Junior Angus Royalty

Keegan Cassady, Lindsey Decker, and Lizzie Schafer

Sierra Day and Keegan Cassady. Not pictured: Benjamin Marsh

(Not in order) Princesses: Amelia Miller, Lizzie Schafer, Emily Broadus; Ebonettes: Morgan Hutchins, Holly Marsh, Amber Schiffbauer; Queen: Lindsey Decker

Junior of the Year

Bronze & Silver Awards

Champion Futurity Heifer

Sierra Day of Cerro Gordo

Katelyn Eathington, Lizzie Schafer, Morgan Hutchins, and Reese Anderson

Prairie View Farms - Alan Miller

Champion Get-of-Sire

Stan Prox Memorial Award

Pasture View Angus - Grant Bedel & Dave Cox

Doug Turner of Mahomet

Congratulations

AWARD WINNERS! www.illinoisbeef.com

March/April 2017 - Illinois Beef

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Illinois Beef - March/April 2017

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PVF Missie 6270 a September, Priority daughter

PRAIRIE VIEW FARMS

FRIDAY,

PVF Blindside 6123 a February, Insight son

7th Annual Production Sale

6:30 pm • at the farm, Gridley, Illinois Selling 35 late Summer and Fall born heifer calves, 15 elite herd sire prospects as well as young donor cows and two-year-old Spring pairs.

PVF Proven Queen 6257 a July, Visionary daughter

PVF Blackbird 6286 a September, Insight daughter

PVF Blackbird 6313 a November, Insight daughter

PVF Blackbird 6281 a September, Surveillance daughter

PVF A-List 6005 a January, Priority son

ALAN & THERESA MILLER

217.840.6935 • pvfangus@gmail.com ORLAN & CAROL BRANDON & CATHY JONES: 309.370.1081

Will Coor: 919.723.6399 Clay Chipman: 812.653.0340 Garrett Kietzman: 608.931.8159

Watch for photos & videos on-line at www.pvfangus.com

Commodity Price Stabilization Expected After a volatile year, stability is returning to global commodity markets, at least for the time being, said CattleFax CEO Randy Blach this morning during the popular CattleFax Outlook Session at the 2017 Cattle Industry Convention and NCBA Trade Show. “After the ag market shocks of the past year and an approximate correction of 50 percent in all commodity markets, prices are beginning to stabilize,” said Blach. “That doesn’t mean that we’re past this, or that prices have bottomed, but on a global basis, we’re not likely to see as much volatility during the year ahead.” He said the industry is continuing to become more current in its marketings and cattle feeders are seeing a return to profitability, the first step in helping to stabilize prices for cow-calf and stocker operations. Blach said that in the near-term, capacity is going to continue to be a significant issue for packing companies in both the beef and pork sectors. A shortage of available labor and an increase in protein production in beef, pork and poultry will continue to keep the packing sector in the driver’s seat during the year ahead. “With limited processing capacity, the leverage shift in the marketplace will continue toward the packing, retail and foodservice segments for the time being,” said Blach. During 2017 and beyond, margins are likely to tighten for cow-calf producers with more stability but also an expectation for lower highs and lower lows. CattleFax analysts noted that the cow-calf sector will shift focus to finding efficiencies, reducing cow costs and improving productivity to remain profitable. Analysts estimated 2017 price expectations for 550 pound steers at $150 per hundredweight (cwt.) with a range of $130-170/cwt. while 750 pound steers will average $130/cwt. with a range from $120-140 during the year ahead. Blach reported that the historical cattle cycle remains intact, although the price break experienced in 2016 was the fastest and deepest of any in recent history. “Even with the rapid growth in the U.S. cow herd, numbers are expected to continue higher for the next twoto-three years,” said CattleFax Senior Analyst Kevin Good. “Absolute price lows likely will not be realized until that period of increasing cow herd numbers is behind us.”

Illinois Beef - March/April 2017

Good echoed the expectation for prices to stabilize during 2017, making price and production risk management an easier task for producers. He said fed steer prices will average $110/cwt. with a range of $98-$124/cwt. and the composite Choice cutout will trade from $168 to $204/cwt. with a 2017 average price of $185/cwt. for the year. Grain prices have also stabilized and corn is projected to trade from $2.90-$3.95 per bushel with an average of $3.45 per bushel. Meteorologist Art Douglas, professor emeritus at Creighton University, said the signs of a return to El Nino conditions are already becoming apparent in the Pacific Ocean, which bodes well for portions of the country. “The upcoming spring forecast calls for improved moisture from Texas to Minnesota and this will be an ideal setup for spring wheat. The drought in the Southeast will be retracting in the spring while a drier spring weather pattern is forecast for the northern Rockies. Persistent high pressure ridging will keep the western third of the country warmer than normal in the spring and the dry areas of the far Southeast will also be warmer than normal,” said Douglas. “Temperatures will be cooler than normal through the Corn Belt in the spring and with wet weather forecast for the western Corn Belt, there could be problems with field work and spring planting.” He said the upcoming summer is expected to follow the typical pattern observed with developing El Nino events. “Midwest summer temperatures will be near to slightly below normal. A persistent trough of low pressure is forecast to persist through the Mississippi Valley through the summer and this will favor cooler than normal temperatures in the plains and above normal precipitation from the Gulf Coast to the mid-Mississippi Valley and Ohio Valley as well as the Southeast,” said Douglas. “The summer monsoon in the Southwest is likely to be weak as the monsoon high pressure struggles to become established in the plains. The Northwest is expected to have a warmer- and drier-than-normal summer due to persistent high pressure ridging.”

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Stage is Set for Expansion Livestock production is returning to its Midwest roots and it’s up to Illinois beef producers to take advantage of the opportunities. There is a trend happening in the marketplace where livestock is moving back to areas like the Midwest due to input costs, transportation costs and the availability of diverse feed resources. According to Nic Anderson, Illinois Livestock Development Group (ILDG) director, it’s evident that Illinois farmers are expanding their livestock enterprises – particularly with investments in infrastructure. “We’ve seen a real uptick in new or expanded construction in the last couple of years,” Anderson said. “With what we’re seeing from cow inventory numbers, it makes sense that the cow herd is growing even in our own state.” Along with the livestock market developing in Illinois, the U.S. saw an uptick in cow inventory according to the January 1, 2016 Cattle Inventory report released by USDA’s National Agricultural Statistics Service. The report showed the inventory of all cattle and calves to be just shy of 92 million head, which is the largest inventory since 2011. The total inventory was 2.85 million head (3.2%) more than one year earlier. The increase from 2015 to 2016 is the largest increase in cattle inventory since 1981 when inventory increased 3.11 million head. The 2016 calf crop in the United States was estimated at 35.1 million head, up 3 percent from last year’s calf crop. Calves born during the first half of 2016 were estimated at 25.6 million head. This is up 4 percent from the first half of 2015. Calves born during the second half of 2016 were estimated at 9.53 million head, 27 percent of the total 2016 calf crop. Cattle and calves on feed for the slaughter market in the United States for all feedlots totaled 13.1 million head onJanuary 1, 2017. The inventory is down 1 percent from the January 1, 2016 total of 13.2 million head. Cattle on feed, in feedlots with capacity of 1,000 or more head, accounted for 81.2 percent of the total cattle on feed on January 1, 2017.

This is up 1 percent from the previous year. The combined total of calves under 500 pounds and other heifers and steers over 500 pounds (outside of feedlots) is 26.6 million head. This is 2 percent above one year ago. For Illinois, part of the reason for the bump in cattle inventory can be attributed to the trend of confined cow housing. Anderson said many Illinois farmers see the addition of livestock facilities as ways to add a cash flow stream to operations, attract young farmers to the industry, utilize local feed supplies and take advantage of the manure as a natural fertilizer source, along with combatting the high price of pasture and land. “The concept of managing cows in a more concentrated feeding system has gained a lot of traction for a number of reasons,” he said. “There’s a real benefit when it comes to reducing feed costs and from an animal health standpoint, particularly when dealing with inclement weather.” Growing the cow herd is a long-term investment and it’s about farmers reacting to market signals. “I look for the expansion trend to continue in Illinois in 2017,” he said. “Making improvements and investing the in the future of the livestock industry can positively impact a producers bottom line in the long term if the capture the incentives for added efficiency and the value for assets like manure.”

USDA, National Agricultural Statistics Service

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March/April 2017 - Illinois Beef

Building premiums, cut by cut

By Miranda Reiman | Certified Angus Beef LLC Something doesn’t add up. In 2016, U.S. packers saw Choice beef production increase by 8.1% while that of the Select grade held steady. Yet the value of Choice over Select (the Choice-Select spread) went up by $3.47 per hundredweight (/cwt.). “If you’re just looking at supplies, you’d assume the premiums for hitting those higher quality endpoints would go down,” says Mark McCully, vice president of production for the Certified Angus Beef ® (CAB®) brand. “But that’s where the story of demand really shines.” The Choice-Select example pales compared to the growing CAB premium. After 10 years of record volume sales leading to more than a billion pounds last year, the CAB-Choice spread was up $5.77/cwt. to average a record-wide $14.44/cwt. advantage last calendar year. “Many think most of the brand’s value comes from steaks and the high-end, five-star steakhouses,” McCully says. “They’re an important part of our business, but we see end-meat users starting to add even more dollars back to the carcass.” In 2010, Urner Barry market data showed a 7% CAB premium over Choice ribs and a 6% CAB value advantage over Choice loins. That’s compared to a 2% CAB premium over both the Choice chuck and round. By 2016, the CAB brand premiums for those middle-meat primals were 6% and 11% above Choice, respectively—but the end meats’ contribution nearly tripled. The CAB value advantage over Choice had grown to 6% for the chuck and 5% for the round. Simply put, it’s not all about the steaks. Overall, high beef prices led to more end-meat features at retail, and might have inspired consumers to change up their menus, says Gary Morrison, market reporter with Urner Barry. “You go to the food store and you see a package of chicken sitting there and it’s $10. You can feed your family with that and the package of two steaks might be $40 or $50. What are you going to do?” the analyst asks. “People seemed to find these alternate cuts and the industry has done a good job promoting them. That’s driving the demand of end meats.” It’s not simply a matter of trading down to less-expensive cuts, however. End meats grew in popularity largely because an increasing share of them were of premium quality and carried less risk of disappointment. Mark Polzer, CAB vice president of business development, says the chicken industry may have figured it out first, but beef is taking full advantage now: adding value cut-by-cut improves profitability on the entire carcass. “They took an item like chicken wings, which was a ‘giveaway’ item—and now it commands huge money because it’s featured on so many menus,” he explains. Many beef marketers are finding similar opportunities with formerly “underutilized” cuts. “They’re pulling the teres major and flat iron out of the chuck and they’ve created real value,” Polzer says, noting those can fetch double the price of a bone-in chuck roll. “So you’re pulling $4 to $5 items out of a $2.50 item. That helps the value of the chuck significantly.” Higher beef quality grades nationwide have opened doors. “The average inside round or chuck roll is going to be more highly marbled than it was 20 years ago,” Polzer says. “That doesn’t mean you’d cut a slab of inside round and put it on the grill and have it be the eating experience of a steak, but it is significantly better and lends itself to more uses.” Morrison says when beef buyers are experimenting with new cuts, they will choose a brand or quality-level they trust. “I think they know, ‘Hey, buy the quality, and you’re going to taste the difference,’” he says. Maybe that helps explain that the tripling of the CAB value premium over Choice chucks since 2010. “The good news is that this is additive,” McCully says. “It’s not that traditional cuts like a filet mignon or ribeye are bringing less—even they are commanding a higher premium—but the quality bonus on things like short ribs and briskets is increasing even faster.” Dining trends, such as an increase in Tex-Mex fare and premium burgers, are supportive, Polzer says. “Fifteen years ago, everybody thought of ground beef as a commodity item, but it’s been our fastest growing segment the last five years,” he says. Export trade to countries like Japan adds up, too. “One of their favorite items to merchandize is the chuck that they slice very thinly, and they also do a good job on the short plates and thin meats as well,” Polzer says. Value-added processors, who often use end meats to create pre-cooked beef options for both retail and foodservice customers, find that starting with high-quality beef is one less variable they have to worry about, he says. Sales of CAB value-added products increased 8.9% last year. “This continues to drive the message back to the producer: quality pays,” Polzer says. Turns out the numbers add up, and the dollars do, too. 12

Illinois Beef - March/April 2017

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ADVERTISE HERE mkramerangus@gmail.com

2016

Online Sale Columbus Day Weekend

Kyle Kemp

ADVERTISE HERE

Carl & Janet Evers Annual Bull & Female Sale - 1st Saturday in March

22198 Little Indian Rd. Virginia, IL 62691

Email: budhobbs@outlook.com

217-415-3033 evers52@yahoo.com

WALNUT GROVE ANGUS ANGUS BREEDERS SINCE 1980

Jim, Julie, Benjamin & Holly Marsh 10018 Fair Lane, Union, IL 60180 Cell: 847-652-0931 jimjulmarsh@yahoo.com

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March/April 2017 - Illinois Beef