2024 Outlook • President's Profile • Sustainability Non-Profit Org U.S. Postage PAID Lincoln, NE Permit No. 445 December 2023 • Volume 79 • Issue 10 Nebraska Cattleman The ONLY publication dedicated to the Nebraska cattle industry.
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4 Nebraska Cattleman December 2023 Nebraska Cattleman The ONLY publication dedicated to the Nebraska cattle industry. Volume 79 • Issue 10 • December 2023 Every Issue 34 Consider This 46 NC Partners 48, 50 NC in Action 49 Ad Index 49 Calendar Features 10 Step Up and Serve Jerry Kuenning prepares to lead Nebraska Cattlemen. 16 Winter Weather Outlook Agricultural Meteorologist Eric Hunt shares his winter weather outlook. 22 Are Higher Interest Rates Holding Back Herd Rebuilding? Factoring interest rate cost and risk into business decisions. 28 Navigating Tech and Tradition in Agriculture Nebraska's farmers and ranchers are active participants in the sustainable agriculture movement. Columns 6 EVP Perspective Giving thanks and preparing for the NC's Annual Convention. 8 Leader's Letter Steve Hanson reflects on his year as NC president. 32 BQA A look at the record year for Nebraska BQA. 36 Legislative Update Gearing up for the Nebraska legislative session. 38 NCIG Strategies for maximizing employee benefits while minimizing costs. 42 NC Foundation An update from the NC Foundations endowment award recipients. On The Cover A herd of AngusSimmental heifers developed at the Kuenning and Son operation near Imperial. Photo courtesy of Boni Edwards. 16 48 22 10 28
December 2023 Nebraska Cattleman 5 www.MorganRanchInc.com BURWELL, NEB. (308) 346-4394 Premium Angus Beef 44STEAKS.COM | 254.605.6444 FARM-22-999 Miscellaneous_3x1_5 Card_01mg.indd 1 11/10/22 2:31 PM From Our Family Farm to Your Family’s Table Fresh Meat Vending Machine Open 24/7 YORK, NEB. www.mcleanbeef.com | (402) 362-0055 (308) 352-4049 Grant, Neb. From Our Pasture to Your Plate www.tjadenranch.com tjadenranch@gmail.com BORN HERE. RAISED HERE. BEEF FOR THE HOLIDAYS Give Their Favorite Christmas Gift This Year! PIEDMONTESE.COM LINCOLN, NE ∙ (800) 414–3487 FRESH, DELICIOUS BEEF IS ALWAYS A DELIGHTFUL HOLIDAY GIFT FOR FAMILY, FRIENDS, TEACHERS OR EVEN THAT HARD TO BUY FOR PERSON.
6 Nebraska Cattleman December 2023 The Nebraska Cattleman magazine is published for and by the Nebraska Cattlemen association. PRODUCTION BluePrint Media LLC (970) 222-7422 PO Box 427 | Timnath, CO 80547 Editor | Lisa Bard Managing Editor | Jessie Topp-Becker Copy Editor | Larisa Willrett Designer | Megan Sajbel Field Materials Coordinator | Megan Sajbel Field Administration | Leslie McKibben CONTRIBUTING PHOTOGRAPHERS Bill Coe | Kristian Rennert Meghan Anderson | Bob Rooney STATE REGIONAL ADVERTISING Amber Coleman Mobile (402) 340-1588 acoleman@necattlemen.org NATIONAL ADVERTISING McFarland AdVantage | Wendy McFarland (334) 652-9080 McFarlandAdVantage@gmail.com LINCOLN 4611 Cattle Drive | Lincoln, NE 68521 (402) 475-2333 | NCmag@necattlemen.org LAKESIDE 1179 296th Trail | Lakeside, NE 69351 (308) 760-6464 Nebraska Cattleman is published monthly, except for May and July, by the Nebraska Cattlemen, 4611 Cattle Drive, Lincoln, NE 68521 – (402) 475-2333. Manuscripts and advertisements are welcome. Nebraska Cattlemen reserves the right to edit and refuse advertisements. Readers are welcome to submit letters to the editor. Full name and address of writer must accompany all letters. Letters are accepted with the understanding that they may be condensed to fit the magazine format and edited for accuracy and clarity. Letters contain the opinion of the writer and not that of the Nebraska Cattlemen. Nebraska Cattleman You can get Nebraska Cattleman via email. Receive each issue even before the Post O ice ships the printed edition. Just send an email to us at NCmag@necattlemen.org and put “Email NC Magazine” in the subject line. We assure you we will not share your email address with anyone! Please visit our website www.nebraskacattlemen.org EVP Perspective By Laura Field NC Executive Vice President Giving Thanks My sister recently sent me a very funny photo message on Instagram showing text messages between family members asking, “Are you coming home for Thanksgiving?” and “What are your plans for Christmas?” These texts usually start in our family about September, and as much as my sister and I giggled about this, I don’t think our mom will appreciate our finding humor in this post. The seasons of Thanksgiving and Christmas are such an important time to reflect on gifts and blessings in our lives. A few years ago, we created a “gratitude board” in our house. For a month, each of us took colored paper and shared one thing we were grateful for daily. I remind myself every year not to wait until Thanksgiving to find a reason to celebrate that for which I am thankful. The time between Thanksgiving and Christmas seems to get shorter every year. At Nebraska Cattlemen (NC), this period of time is a very important one for our membership as we hold the association’s annual convention. The three days are packed with information, policy setting, membership, education and great times with great people. From breakout sessions to celebrating top membership recruiters to the market update breakfast and the trade show reception showcasing exceptional vendors and sponsors, there is something for everyone. I hope you plan to join us in Kearney. One of the most important functions of the NC Convention is discussing and adopting policy. Each of the six NC policy committees meets to discuss matters in the purview of the committee. This is very important work as the decisions made in each committee put the policy in place that the association will stand on in supporting or opposing legislative efforts during 2024. Each voice and perspective is important to the success and effectiveness of Nebraska Cattlemen. Make sure you plan to attend the closing business session to cast your vote for new leadership and the policy recommendations. Fellowship with friends and fellow cattle producers happens the entire time at convention, but the closing banquet highlights the great work and successes of the year as we recognize leadership and award winners for the Hall of Fame and Industry Service awards. As I reflect on 2023 and the nine months I’ve been on staff at Nebraska Cattlemen, I continue to be grateful for the opportunity to serve. The support, guidance and partnership with so many of you is tremendous, and I look forward to being out in Nebraska to meet and converse with you in 2024. I especially want to thank the hard-working, talented NC staff who have certainly weathered much change in 2023. They put their all into the greatness of the association. The support of the leadership and board of directors has been unmatched. Thank you for your patience, wisdom and words of encouragement. I would be remiss for not specifically thanking Steve and Susan Hanson. From calls at all hours of the day to laughs and frustrations making decisions, I could always count on Steve to end a call with kind words, and the smiles and hugs from both Susan and Steve are second to none! I wish you all a very Merry Christmas and holiday season and continued prosperity in 2024! NC
December 2023 Nebraska Cattleman 7 Scott & Raberta Starr 212 Starr Drive • Stapleton, NE 69163 308-530-3900 (Scott) • 308-530-2720 (Austin) cedartopranch@yahoo.com • Facebook: Cedar Top Ranch DO ONE THING... DO IT WELL... WE RAISE BEEF CATTLE CEDAR TOP RANCH 225 HEAD SELL 175 RANGE-DEVELOPED 2-YEAR-OLD BULLS BALANCER, ANGUS & RED ANGUS FEATURING 50 ET BULLS 50 BWF BRED HEIFERS ALL A.I. BRED TUESDAY, FEBRUARY 20 12:30 PM | BURWELL, NE
8 Nebraska Cattleman December 2023 BOARD OF DIRECTORS PRESIDENT: Steve Hanson*, Elsie, (308) 289-0225 PRESIDENT ELECT: Jerry Kuenning*, Lemoyne, (308) 883-8382 VICE PRESIDENT: Dick Pierce*, Miller, (308) 440-2489 TREASURER: Laura Field, Lincoln, (402) 475-2333 SECRETARY: Lee Weide, Lincoln, (402) 475-2333 PAST PRESIDENT: Brenda Masek, Purdum, (308) 539-5533 MEMBER SERVICES VICE CHAIR BY REGION 1 – Terryn Drieling, Ashby, (308) 262-5051 2 – Kat Kennedy, Purdum, (308) 645-7036 3 – Allan Louthan, Stanton, (402) 841-6601 4 – John Ecklund, Atkinson, (408) 602-5905 5 – Jim Edwards, Ord, (308) 750-0881 6 – Chuck Gra , Ogallala, (308) 289-5841 7 – Rod Keil, Plattsmouth, (402) 297-9321 8 – Allen Bruntz, Friend, (402) 525-2651 9 – Quentin Dailey*, Lexington, (308) 293-1144 COW-CALF COUNCIL Chair | Al Atkins, North Platte, (308) 645-9046 Vice Chair | Travis Chrisman, Wauneta, (308) 883-6781 FARMER-STOCKMAN COUNCIL Chair | Marc Hanson, Morrowville, Kan., (402) 729-7174 Vice Chair | Dwight Dam, Hooper, (402) 720-4250 FEEDLOT COUNCIL Chair | Mike Briggs, Seward, (402) 641-0117 Vice Chair | Ryan Danehy, Manhattan, Kan., (308) 440-8267 SEEDSTOCK COUNCIL Chair | Reiss Bruning, Bruning, (402) 768-3332 Vice Chair | Krista Dybdal, Newcastle, (402) 841-8091 ANIMAL HEALTH AND NUTRITION COMMITTEE Chair | Jared Walahoski, Overton, (308) 746-1965 Chair-Elect | Je Heldt, Scottsblu , (308) 641-5781 BRAND AND PROPERTY RIGHTS COMMITTEE Chair | Brock Terrell, Hay Springs, (308) 430-1213 Chair-Elect | Matt Blackford, Brownlee, (402) 322-1377 EDUCATION AND RESEARCH COMMITTEE Chair | Marcus Urban, Leigh, (402) 276-3830 Chair-Elect | Suzanne Jagels, Davenport, (402) 469-3374 MARKETING AND COMMERCE COMMITTEE Chair | Joe Eisenmenger, Humphrey, (402) 920-0665 Chair-Elect | Chance McLean, Stromsburg, (402) 366-2254 NATURAL RESOURCES AND ENVIRONMENT COMMITTEE Chair | Eric Hansen*, North Platte, (308) 530-3899 Chair-Elect | Sam Drinnin, Grand Island, (402) 910-0233 TAXATION COMMITTEE Chair | Fred Meyer, St. Paul, (308) 750-0031 Chair-Elect | Scott Peterson, Valentine, (402) 322-0225 MEMBER SERVICES Chair | Quentin Dailey*, Lexington, (308) 293-1144 ALLIED INDUSTRIES COUNCIL Andrew Dorn, Minden, (308) 830-0356 NEBRASKA LIVESTOCK MARKETING ASSOCIATION Bryce Dibbern, Interior, S.D., (308) 293-7766 UNL EXTENSION Erin Laborie, Beaver City, (419) 494-3872 UNL REPRESENTATIVE Deb VanOverbeke, Lincoln, (402) 472-3571 * member of the Executive & Finance Committee NEBRASKA CATTLEMEN STAFF LINCOLN OFFICE 4611 Cattle Drive, Lincoln, NE 68521 Phone (402) 475-2333 | Fax (402) 475-0822 Email nc@necattlemen.org | www.nebraskacattlemen.org Executive Vice President | Laura Field lfield@necattlemen.org Vice President of Operations | Lee Weide Vice President of Marketing | Je Stolle Director of Communications | Libby Schroeder Director of Marketing | John Roberts Director of Producer Education | Bonita Lederer Director of Membership-Retention | Jessica Rudolph Director of Membership-Recruitment | Steven Stettner Executive Assistant | Patty Goes Vice President of Policy Engagement | Melody Benjamin 1179 296th Trail, Lakeside, NE 69351 (308) 760-6464 | mbenjamin@necattlemen.org Leader’s Letter By Steve Hanson, Elsie NC President A Tremendous Year It’s hard to believe nearly a year has passed since I took the reins of the Nebraska Cattlemen (NC)! I have truly enjoyed my term as president and couldn’t have imagined the rewarding experiences I have been a part of. We were all sad to see Pete McClymont tender his resignation last year, and the search for a new executive vice president (EVP) started as I took office. We interviewed some topquality candidates and were successful in hiring Laura Field to take over as EVP. Her leadership has been above expectation. The Nebraska legislative session was very busy. We were successful in getting all five of our priority bills through as well as testifying on several other bills important to our members. After very productive winter affiliate meetings, we were ready to get on with spring calving and planting. The NC Midyear Meeting was held in North Platte, and it proved to be a resounding success. The area tours, golf and steak dinner were all very well attended. The second day of committee meetings showed the value of the Mid-Plains Community College venue – having all meetings at one site kept members engaged. We were fortunate to hear from Gov. Pillen that morning and had great attendance for our NC Foundation Luncheon to award scholarships. Ten days later, Nebraska Cattlemen had a very successful PAC event thanks to Sen. Pete Ricketts (R-Neb.). He very generously donated his Chicago Cubs owner’s suite, tickets and a fantastic buffet at a Cubs game. We then put together an unforgettable trip to benefit the NC PAC, which sold out in about 24 hours and turned out to be a highly successful PAC fundraiser. As the year continued, we have had some staff changes, which will allow Laura to put her stamp on the staff structure as we move forward. Once again, the Beef Pit at the Nebraska State Fair was a resounding success thanks to all the volunteers from affiliates around the state and Lee Weide’s leadership. I encourage all current and prospective members to attend the annual NC Convention in Kearney, Dec. 6-8. This is the meeting where we review and adopt policies that will guide the various NC committees for the coming year. The opportunity to express your feelings about our position is vital to making NC the true voice of its members. This is achieved by attending the meetings. Since I am on my soapbox, I would encourage all of you to support the Nebraska Cattlemen and National Cattlemen’s Beef Association by joining both organizations so they can take positions benefitting animal agriculture at both the state and national levels. I also urge you to speak out in support of our checkoff organizations and against the OFF Act. PETA and their friends in Congress are not trying to reform but end checkoffs – their real goal. The people and groups supporting the OFF Act are not your friends but are intent on ending meat consumption and stopping animal agriculture as we know it. Thank you for allowing me to be Nebraska Cattlemen president and also thanks to a great staff for all the support they have given me. I hope for generous rainfall on the pastures and crops next summer and continuing high prices! NC
December 2023 Nebraska Cattleman 9 PRODUCTION SALE 6th Annual O monday march 11 2024 HEARTLAND REGIONAL STOCKYARDS • PLAINVILLE, KS •100 Yearling Bulls •10 Elite Registered Heifers •50 Commercial Heifers 1:00 PM CST Cody Dix 2595 C Road • Stockton, Ks 67669 • (785) 476-5168 • www.dixangus.com • dixangus@gmailcom D A R Propel T085 D A R Stockton 0101 “PROFITABLE PERFORMANCE IN A MATERNAL PACKAGE” “Best logo in the land” 1st Progeny Sell! Owned by Cedar Top Ranch, NE Other AI Sires Represented: U-2 Coaliton S Wrangler Deer Valley Wall Street Pyramid Black Hills S Thrive D A R Wheeler 0921 D A R Gunslinger R177 Molitor Swiftbrook 901 DAR Propel T085 LT Advantage Baldridge Flagstone D A R Stockton 0101 Koupals B&B Pathfinder 8106 Selling DAR Logo 1287 Sitz Barricade 632F Millars Duke 816
10 Nebraska Cattleman December 2023 S U S By Lisa Bard, Nebraska Cattleman Editor Jerry Kuenning has always had an interest in agriculture, cattle and service. Like many in the cattle industry, it’s simply how he was raised. As a thirdgeneration Nebraska agriculturist, he is proudly working alongside the fourth and fifth generations in the family operation in and around Imperial. The Kuenning family’s diversified operation includes a commercial feedlot, a cow-calf herd and an irrigated/dryland farming enterprise, all of which keep more than a few folks busy. As Kuenning looks ahead to 2024 and the year he will serve as Nebraska Cattlemen (NC) president, he knows it would not be possible without his family at home filling in during his absence, nor would it be possible without the legacy of community and service that was instilled in him by his parents. Full circle, it seems. Kuenning, born in 1955, is the third of four children born to Wilber and Doris Kuenning. Kuenning’s older brother, Ernie, lives in Imperial; his older sister, Donna, and her husband, Don Hutchens, live in Lincoln; and his younger sister, Connie, lives in Lincoln. Kuenning describes himself as simply “a boy who grew up in rural Nebraska who has had a number of good things happen. I’ve been very fortunate.” Wilber and Doris lived through the Depression, persevered in the years after, growing their operation through years of hard work and a constant commitment to productivity. Kuenning describes his parents as “survivors” who were molded by the Depression and the 1980 farm crisis, and emerged strong and intact. In 2022, Kuenning and Son LLC was honored to receive the Aksarben Pioneer Farm Family Award for ownership of at least 40 acres of farmland held by the same family for 100 years. “My grandfather on my mother’s side was a German immigrant and we still farm that half section that he homesteaded on. He plowed that half section – a three-mile lap – with horse and plow,” Kuenning says. “The other day, while farming that plot, my 13-year-old grandson, Luke, took over for me in the grain cart. It’s very rewarding to have my grandson on the same land my great-grandfather homesteaded.” Wilber and Doris instilled in all their kids that education was vitally important, in part likely due to the fact that Wilber ended his formal education during his eighth-grade year. Kuenning and his siblings all attended college, with Kuenning earning a degree in agriculture from the University of Nebraska-Lincoln. However, the path to a degree was not without challenges. “The year between my senior year in high school and freshman year in college my dad broke his leg quite severely. I figured I would sit out a year and help out, but my parents would not allow it,” Kuenning says. “The day I drove away to college, I saw my dad in the rearview mirror carrying a feed bag on his head while walking with crutches. His commitment made me double down in my commitment to go to college and make it worthwhile.” The plan was for Kuenning to work off-farm for a few years after graduation, but while considering a job offer from Farm Credit, he realized that his heart was back at home – and so home he went and never looked back. Wilber retired from farming in 1987, paving the way for Kuenning and his wife, Kathy, to take the reins as the third generation on the operation. The fourth and fifth generations of Kuenning and Son LLC include son Brandon and daughter-in-law Kelly and their children, Luke, Lily and June; daughter Kory Fowler and son-in-law Nick Fowler and their children, Hayden, Grady and Landry; and nephew C.J. Kuenning. Daughter Kelly, a nurse, lives in Lincoln with her husband, Patrick, and their daughter, Penelope. Their operation is designed to achieve maximum productivity, and they are and will remain "diverse in their diversity." Brandon and Kelly manage the cow-calf herd where they raise Angus and Simmental cattle, market a few crossbred bulls, develop heifers and produce cattle that are fed and marketed in branded programs. Brandon and Kelly also manage the farming operation. Nick and Kory manage the feedlot where they feed mostly their own cattle as well a few commercial cattle. Nephew CJ helps mostly with the farming enterprise. Jerry is active in all facets but knows that the coming year will require quite a bit of time away. Without the family at home, he would not be able to serve as NC president. Jerry Kuenning will serve as the 2024 Nebraska Cattlemen president. CONTINUED ON PAGE 12
December 2023 Nebraska Cattleman 11 20th ANNUAL PRODUCTION SALE Thursday, March 7, 2024 Leoti, KS - Noon MST, 1 PM CST WWW.LARSONANGUSRANCH.COM DAN LARSON 785.821.1098 Dan@larsonangusranch.com BRADY LARSON 785.821.1580 Brady@larsonangusranch.com 2022 CAB Seedstock Producer of the Year Selling registered Angus bulls and Charolais bulls DVAR Huckleberry 871 Basin Safe Deposit 9324 LAR Man In Black Selling sons of LAR Man in Black Selling sons of DVAR Huckleberry Selling sons of Basin Safe Deposit
12 Nebraska Cattleman December 2023 Step Up and Serve “My dad always said a community is what you make of it and, to have a good community, sometimes you have to step up and help out,” Kuenning says. “Our parents instilled in us a strong work ethic and always said don’t be afraid to donate time, whether it’s serving on a board or committee or Sunday morning at church.” Kuenning’s time of service began with seeds planted through involvement in 4-H and FFA programs as a youth. He was fortunate to participate in a 4-H trip to Europe after graduating from high school, as well as serving as a state FFA officer while in college, both of which shaped his broad outlook on agriculture and the cattle industry. The early 1980s began a 28-year involvement on the Upper Republican Natural Resources District (NRD) Board. During his time on the NRD Board, they were the first to put a moratorium on wells and irrigated acres and flow meters to address the decline in the Ogallala Aquifer. At the time, this was a very aggressive and progressive conservation move to save and manage water resources. Neither action was very easy for those who had not yet developed their ground, but it was necessary to draw boundaries, and that board made some difficult decisions. “I don’t think I realized or appreciated the caliber of people that I was serving with on the NRD Board,” Kuenning says. “Looking back, I realize what a futuristic group of people they were. Committed, deep thinkers who were way ahead of their time with incredible ideas.” He followed that with involvement with Nebraska Cattlemen, serving as Feedlot Council vice chair and chair and then CattleFax, where he served as director of the North Central Region, vice president and then eventually president of that organization. He also served on the Nebraska Brand Committee in various capacities and as presiKuenning and Son LLC is a multi-generational family operation, with everyone contributing in integral ways. Top row, from left, are grandchildren Grady Fowler, Hayden Fowler, Landry Fowler, Lily Kuenning, June Kuenning and Luke Kuenning. Bottom row, from left to right are son Brandon and his wife, Kelly, Jerry and daughter Kory Fowler. Not pictured is son-in-law Nick Fowler who was not able to be present during the photo shoot due to other family commitments. Kuenning cattle are mostly Angus and Simmental genetics and are fed and backgrounded in and around Imperial. Kuenning maintains that, without his family managing the operation as they do, serving as NC president would not be possible. The farming side of the operation is key to providing additional diversification as well as a food source for the cattle enterprise. CONTINUED ON PAGE 14 STEP UP AND SERVE • CONTINUED FROM PAGE 10
December 2023 Nebraska Cattleman 13 SPRING SALE SCHEDULE WWW.LEACHMAN.COM | (970) 568-3983 JERROD WATSON, BULL CUSTOMER SERVICE: (303) 827-1156 COW HERD ADVISORS; AARON RASMUSSEN, (NE) (308) 763-1361 KURT SCHENKEL, (OH) (740) 503-6270 SCAN TO VIEW CATALOGS Build a Better Cowherd - Buy a Leachman Bull! 100+ Age-Advantaged Bulls JANUARY 11 EARLY BIRD SALE Online Only at SmartAuctions.co 550 Stabilizer Bulls & 200+ Females MARCH 24-25 SPRING BULL & FEMALE SALE Leachman Bull Barn - Fort Collins, CO Females sell Sunday at 1:00 PM Bulls sell Monday at 10:00 AM APRIL 11 Offering 300 Stabilizer, Angus, Red Angus & Charolais Bulls GRASSTIME PRIVATE TREATY SALE Online Only at SmartAuctions.co Sale starts on April 11
14 Nebraska Cattleman December 2023 dent in 2016. Time on the Nebraska Cattlemen Foundation Board and the Nebraska Cattlemen Board were interspersed throughout the years and, in 2022, he was asked to come back to Nebraska Cattlemen Board to serve as an officer and eventually president in 2024. A very important factor in an organization, according to Kuenning, is the staff leadership or manager. Kuenning maintains that if you have a good leader/manager, the best thing you can do is to step aside and let them do their job. Kuenning appreciates that if they are a good manager, they will come to elected leaders when needed and the leader’s job is to answer the questions – and again, get out of the way. As board members or elected leaders of any organization, there is a huge time commitment needed by all and, with very diverse backgrounds, different personalities and varying perspectives, it’s not always an easy task. It is made easier when all are open to learning and working together. “The NC Board is a large board, but you can learn something from everybody,” Kuenning says. “Just ask people what they do and how they do it and it’s amazing how much you will have in common. It’s the people who make it happen, so the more you learn about them and how they work, the more effective you will be.” The Year Ahead When asked about his vison on serving as Nebraska Cattlemen president, Kuenning says “the last thing I want to be accused of is coming in with an agenda.” He understands that many issues are yet to be resolved such as brand, packer concentration, price discovery and more, but there are still unknown issues ahead. “We still have many of the same issues to deal with that we have been struggling with in the past,” Kuenning says. “New issues will be dealt with as they come up. Our job is to find the best people possible to work on these issues and find a good resolution.” While Kuenning grew up belonging to organizations and being involved, he stresses that grassroots issues and discussions that lead to seed ideas that then take root and grow are the basis of resolving issues that affect all in the industry. Without the grassroots involvement, there would be no solutions. He also stresses that we need to tell our story so that consumers understand how different agriculture is from non-agriculture industries. Kuenning stands by face-to-face communication and feels it’s vital that Nebraska Cattlemen is active in the state and federal legislatures and is willing to engage with press and consumers. Respect and credibility are vital, and getting in front of consumers to gain and keep that is very important. Kuenning also appreciates the differences within agriculture, particularly when it comes to production factors in different environments. “Water is a big issue. In the West, we are always cognizant in our cropping and grazing systems that it may not rain for a while. So protection of our resources – land and water – is huge,” Kuenning says. “Technology helps with that protection, and we don’t need the government to provide that protection. We do it on our own because we are – at our core – environmentalists.” Kuenning is very much looking forward to serving and working with members and NC board members to make a difference in his year as NC president. It will take time away from his operation and his other passions that include a newly acquired team of Percheron mares that are a drive team, but he has no doubt it will be worth it. “I could absolutely not serve in this capacity without the help and support of my children and their spouses, other family members and our employees,” Kuenning says. “Having them choose to come back and join the operation is key and a blessing.” NC Diversification on the Kuenning operation includes a feedlot where most of the cattle are fed and marketed in branded programs such as Certified Angus Beef. STEP UP AND SERVE • CONTINUED FROM PAGE 12
December 2023 Nebraska Cattleman 15 1For commercial use only. See your participating New Holland dealer for details and eligibility requirements. Cash back applied at time of sale. Offer is nontransferable. Offer ends December 31, 2023. Offer subject to change or cancellation without notice. ©2023 CNH Industrial America LLC. All rights reserved. New Holland is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. Harvest the best deals of the year! Loader work. Haymaking. Row cropping. Roadside mowing. A heavy-duty T6 Series tractor is designed to tackle it all. Thanks to Value Bonanza year-end savings, all five models of the 95 to 126 PTO hp lineup are priced to move! Hurry, offer ends December 31, 2023. Stop in today for complete details or visit nhoffers.com. WHILE SUPPLIES LAST! on T6 Series tractors 1 UP TO CASH BACK $15,000 Dealership Name Main Street Address, City, ST Zip www.dealer.url.com 000.000.0000 1For commercial use only. See your participating New Holland dealer for details and eligibility requirements. Cash back applied at time of sale. Offer is nontransferable. Offer ends December 31, 2023. Offer subject to change or cancellation without notice. ©2023 CNH Industrial America LLC. All rights reserved. New Holland is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. Harvest the best deals of the year! Loader work. Haymaking. Row cropping. Roadside mowing. A heavy-duty T6 Series tractor is designed to tackle it all. Thanks to Value Bonanza year-end savings, all five models of the 95 to 126 PTO hp lineup are priced to move! Hurry, offer ends December 31, 2023. Stop in today for complete details or visit nhoffers.com. WHILE SUPPLIES LAST! on T6 Series tractors 1 UP TO CASH BACK $15,000 Dealership Name Main Street Address, City, ST Zip www.dealer.url.com 000.000.0000 330 17th Street, Syracuse NE (402) 269-2310 nelottery.com Must be 19. Free problem gambling help for Nebraskans at problemgambling.nebraska.gov. Farmers and ranchers, the world relies on you. And you deserve a bank that’s rooted in the details and dedicated to helping you do more. Overlooking nothing. Ready for everything. /agribusiness
16 Nebraska Cattleman December 2023 W W O By Eric Hunt, Ph.D., Assistant Extension Educator of Agricultural Meteorology and Climate Resilience University of Nebraska-Lincoln Bottom Line Up Front Temperatures this winter are generally expected to be above average statewide, and total precipitation, including snowfall, is expected to be above average in southern Nebraska and around average elsewhere. The Official CPC Outlook The Climate Prediction Center (CPC) released its first winter outlook on Oct. 19 with a projection of warmer than average temperatures in the northern section of the United States, including northeast Nebraska, and wetter than average conditions across southern Nebraska with “equal chances” for above average, average and below average precipitation across the northern two-thirds of Nebraska. This outlook is strongly weighted to the expectation of a moderate to strong El Niño and its associated stronger subtropical jet persisting through the climatological winter (December-February) into next spring. Past Precedent Past precedent would suggest that the winter outlook has a reasonable chance of verifying the CPC’s outlook, particularly on temperature. Of the past six strong El Niños, five were warm to very warm across the entire north central United States. A composite of the last four strong El Niño events (1982-1983, 1991-1992, 1997-1998 and 2015-2016) reveals temperatures 2° F to 4° F above average in Nebraska’s western and southern climate divisions and 4° F to 6° F above average in the state’s northern and eastern climate divisions. Thus, higher than usual confidence can be placed on our winter temperatures being statistically above average. While there is a strong signal toward warmer than average temperatures this winter, the outlook is less clear for precipitation. The most recent strong El Niño (2015-2016) was wetter than average in the state’s eastern third thanks to a very wet December. But a composite of the previous four strong CONTINUED ON PAGE 18
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18 Nebraska Cattleman December 2023 El Niños shows that precipitation was about average across the state. It is worth noting that none of the most recent strong El Niños produced a significantly drier than average winter for any climate division in the state. Drought Outlook The outlook gives me cautious optimism that we won’t go backward on drought in western and north central sections of the state where there has been significant drought improvement this year. This would bode well for pastures next spring. In the eastern section of the state where drought is most severe, total eradication of the drought between now and next spring is not likely. But one anomalous rainfall event on unfrozen soil, as was the case in December 2015, would significantly improve root-zone soil moisture and lead to better pasture conditions in eastern Nebraska next spring. Not that they could be much worse than this past spring. All in all, it seems reasonable to say that we may chip away at drought a bit this winter in central and eastern Nebraska but not see radical changes. Context and Caveats With Seasonal Outlooks However, there is often more to the story than just the headline and first paragraph. While the winter is expected to be statistically warmer than average and around average for precipitation, this does not mean that we couldn’t have a brutal 10- to 14-day stretch following a polar vortex disruption (remember February 2021?). It could also mean that being mild is more a reflection of having a lot of days with highs of 37° F and a low of 27° F because of persistent overcast (particularly in the eastern one-sixth of the state). In other words, maybe we trade more bitter cold for more raw cold. It is worth noting that in most of the previous strong El Niños, January tended to be a bit closer to average, and either December or February was unusually mild. This would be a bit of a break with recent trends as Januarys have generally been mild and often warmer than either February or December. Then there is the tendency for a seasonal outlook to be overly bullish on the El Niño Southern Oscillation (ENSO; warm for El Niño and cold for La Niña) state. Using an ENSO state for a seasonal outlook is kind of like predicting wins for a football team based on its quarterback. No serious football analyst would ignore the skill of a starting quarterback in making preseason projections of win totals, and no serious forecaster ignores the ENSO state for a winter outlook. But just as there is more to having a good football WINTER WEATHER OUTLOOK • CONTINUED FROM PAGE 16 CONTINUED ON PAGE 20
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20 Nebraska Cattleman December 2023 December 2023 Nebr. Cattlemen 1/2 Page 7.25” x 4.875” www.dodgemfg.com Call Today! 402-693-2221 Brute Bud Tub team than just a great quarterback (see the Los Angeles Chargers for evidence), there is also more to an outlook than just the phase of ENSO. While the CPC’s outlook of a warm northern United States makes sense to me based on past stronger El Niño events and may well verify this outlook (especially on temperature), El Niño is not the only game in town. Other factors besides ENSO can be equally or sometimes even more important for our winter weather. Those factors are, but not limited to, the dominant phase(s) of the Madden Julian Oscillation (MJO), sea ice anomalies, Siberian snow cover in October and November, and sea surface temperature anomalies in the North Atlantic and North Pacific. For example, Phase 1 of the MJO in the winter tends to be wetter and colder in our area (meteorologyto-English translation: more snow) and Phase 4 tends to be warmer and drier. The extent of Siberian snow cover in the fall has been linked to polar vortex disruptions in the winter, which in turn can favor extreme cold outbreaks into the central and eastern U.S. Unfortunately, predictability of the MJO is currently only good out to about two weeks. There is some skill at projection of polar vortex disruptions in the sub-seasonal to seasonal timeframe but only so far as to say that conditions are more/less favorable for such an event. For what it’s worth, Judah Cohen, Ph.D., of Verisk Atmospheric and Environmental Research (AER), stated in his AO Blog on Oct. 23 that a large disruption could occur around the end of the year. If that happens, our mild winter may be taking a vacation in January, especially in eastern Nebraska. Be Prepared Even though an overall mild winter is expected, my best advice for the upcoming winter is to be prepared for the blizzards and rapid swings in temperature by staying on top of outlooks and not to expect a significant improvement in drought conditions in the hardest hit areas in eastern Nebraska between December and early March. NC Even though an overall mild winter is expected, my best advice for the upcoming winter is to be prepared for the blizzards and rapid swings in temperature by staying on top of outlooks. WINTER WEATHER OUTLOOK • CONTINUED FROM PAGE 18
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22 Nebraska Cattleman December 2023 Are Higher Interest Rates Holding Back Herd Rebuilding? By Dave Weaber, Senior Animal Protein Analyst, Terrain Cow herd rebuilding in the current cycle has yet to begin, and it appears that 2023 will be another year of net beef-cow herd liquidation. Any producer plans of heifer retention seem to be a far-off proposition facing a number of headwinds. Not the least of these is the added interest cost in the beef supply chain due to the higher interest rate environment of the past 20 months or so. While it is easy to calculate the shortterm impacts on the various producing segments (cow-calf, stocker, feedlots) from these added costs, it is harder to recognize the way these costs shift through the supply chain and get covered in the long term. Cattle producers throughout the supply chain should be factoring interest rate cost and risk into the majority of their business decisions. Rising Rates and Risk Recent Federal Reserve data on national non-real estate agriculture loan activity shows that the average effective interest rate had risen to 9 percent for new loans for stocker and feedlot cattle during Q3 2023 and was up to 7.5 percent for new loans in the “other” category, which includes breeding stock on cow-calf operations. For stocker and feedlot cattle, this was a 4 percent increase compared with a year earlier and a 5.5 percent jump vs. Q1 2022. The same comparisons for cow-calf operation interest rates reveal increases of 2.4 percent and 3.6 percent, respectively. For comparison, the quarterly average federal funds rate increased 5.14 percent from Q1 2022 through Q3 2023. On top of the rise in interest rates, an increasing percentage of new loans CONTINUED ON PAGE 24
December 2023 Nebraska Cattleman 23 USDA figures suggest towards 80,000 new-born beef calves perish annually from hypothermia. Woolover® Ltd then set about designing and making a beef calf cover that was totally biodegradable, made from wool, is designed to fit an 85 lb new-born beef calf, and would simply “fall off” after 3- 4 weeks having ensured the new-born beef calf survived, was accepted by the mother, and captured some additional growth rates along the way. The Result: The Woolover® Fit N Forget (FnF™) Beef Calf Cover. • New-born calves fitted with the FnF™ Beef Calf Cover are simply not at risk of dying from hypothermia, and they will grow faster. • The cover is totally biodegradable with wool providing the warmth and absorbency to wick moisture away from the hide and the Hessian Substrate providing some strength. Be it rain, snow, windchill or, simply from the birth process, covering a new-born beef calf with the FnF™ Beef Calf Cover makes sound financial sense. The cover will last for up to 3 – 4 weeks and then falls off. • Designed for an 85 lb. live weight beef calf at birth, which is the optimum weight, but will also fit smaller calves. • Wool is providing the warmth, is absorbent, breathable, comfortable to wear, is totally biodegradable and will ensure the Thermo – Neutral Zone, being the heart/ lung area, is kept at a constant temperature, both day and night despite the worst possible conditions = survival. Dr. Clint Hilt, leading Veterinarian with MWI Animal Health, based in Power, Montana, who assisted with a trial of 50 FnF™ Beef Calf Covers on his clients’ newborn calves said, “THESE COVERS ARE LIVESAVERS.” The trial was conducted on a day when it was -23 degrees Fahrenheit and, by simply fitting a FnF™ Beef Calf Cover to a new-born, the actual hide temperature of the calf increased by 32 degrees Fahrenheit in four minutes! The Woolover® Limited FnF™ Beef Calf Covers: ORDER ONLINE at www.wooloverdirect.com or phone: Busse Barron Acres [ BBA ] 715 296 7596. FnF™ Beef Calf Covers are sold in units of 100 or packages of 10. www.wooloverdirect.com For more information, contact: David Brown, Managing Director of Woolover® Limited | 214 Rutland Street | Papanui, Christchurch 8052 | david@woolover.co.nz Woolover® Limited Fit N Forget (FnF™) Beef Calf Cover Fitting the FnF™ Beef Calf Cover to a new-born increased the actual hide temperature of the calf by 32 degrees Fahrenheit in just four minutes! All beef ranchers are seeking to maximize their returns from their operation. A main income generator is the number of live calves that make weaning. The weather during late winter and spring can, and does, influence the number of newborn beef calves that survive some very brutal weather that can literally devastate the very survival of these new-borns. Woolover® Ltd, based in New Zealand, is no stranger to devastating stock losses. In fact, Woolover® Ltd was “born of necessity” back in 1993 after two snowstorms, 10 days apart, claimed the lives of 2 million lambs and 40,000 calves. The answer is WOOL - Working 24/7.
24 Nebraska Cattleman December 2023 have a floating, or variable, rate. During Q3 2023, a record 93.6 percent of new loans for feeder livestock had a variable rate, and at 84.5 percent, cow-calf loans had the fifth-highest percentage of variable-rate new loans since the survey began in 1977 (see chart on page 20). Fed officials’ projections for the federal funds rate, often referred to as the dot plot, suggest that rates will remain steady through the end of 2023 before declining by about 1 percent on average throughout 2024. Responses to Added Costs In the short term, cow-calf producers are seeing higher rates and interest charges on their variable-rate notes. In the current environment of higher calf prices and general industry profitability, producers pay those higher costs out of cattle sales receipts, which cuts into their potential profits. Since the cowcalf producer is a “fixed-cost operator,” he has no other choice. The margin operating segments, including stocker operations and feedlots, can have a different initial approach. They can treat the higher rates like they do other variable costs in their budgets and breakeven price calculations. They add higher rates to the total cost of growing cattle from one weight class to another. Since they can’t change the expected selling price, they work on the other end of the equation: their purchase decision. This reaction effectively reduces what they can reasonably pay for replacement cattle and still expect to break even or meet their profit objective. Cow-calf operations that may plan to retain heifer calves to begin herd rebuilding face other cost impacts that can further increase exposure to high interest rates. For instance, the decision to retain a heifer calf will reduce the revenue from selling calves. With fewer funds now available to cover costs on running the rest of the cow herd, the operating loan balance will likely increase. Add to this the two years of additional carrying cost (without offsetting revenue) to get the retained heifers bred and calved and their first calves marketed, and this will likely lead to operating loan balance growth. Retained heifers will have a lower conception and calving rate and wean fewer and lighter calves than the mature cows in the herd. This is a function of biology, genetics and a whole host of management-derived factors that can be mitigated. Ultimately, these factors should be evaluated and accounted for in the operational plan, budget and cash flow projections. To fully establish enterprise cost, producers should extend the projections through another year to capture the full impact of the second year and second crop of retained heifer calves. Rate Resilience In the case of stocker and feedlot operations, the added cost of interest has become a drag on prices that, all things equal, should have been more pronounced. But all has not been equal: Prices for all classes of cattle have rallied over the past two years, all sectors have been profitable, and spreads between the various weight classes have widened. The rally has effectively allowed the added interest costs to be swept under the rug. For context, here are a few examples of how much interest costs have risen for stocker and feedlot operations: • Average interest costs for financing a $2,750 bred heifer with a 25 percent down payment for the first year of ownership have increased $49/head since this time last year and have increased $74/head since Q1 2022. • Financing costs for a 500-pound steer calf costing $3/pound going into a stocker operation for five months with a 25 percent down payment have increased $19/head vs. Q3 2022 and $26/head vs. Q1 2022. • Feedlots are facing similar increases, with interest costs for an 800-pound steer with a purchase price of $2.45/ pound increasing $30/head vs. a year ago and increasing $41/head since the beginning of 2022. Higher Rates and the Herd Expansion My analysis shows that the net impact of rising rates on stocker and feedlot replacement cattle has limited the rally in calf prices by $50/head since this time last year and $67/head since we entered a higher federal funds rate environment. I believe this impact on prices has contributed to the smaller and delayed signal for cow-calf producers to expand cow numbers. Many operations have been impacted by drought, higher costs, lower revenue and reduced profitability, resulting in a signal to expand that has been mostly ignored, or deemed too costly, by many producers. For large-scale herd expansion to truly start, moisture conditions must continue to improve and costs for pasture, forage and interest rates need to decline relative to calf price increases. When cow-calf producers are ready to expand and are deciding their expansion route, they must factor in the impact of interest rates on both the cost of capital and the opportunity cost of lost revenue from delaying a calf crop. Feedlot and stocker operations will likely respond to the tightening calf crop numbers and smaller calf and feeder cattle numbers outside feedlots by extending ownership to younger and lighter cattle in an attempt to maintain pen or pasture occupancy rates. This will likely require larger operating lines of credit and more exposure to higher rates for most operations. Rallying cattle prices can potentially increase an operation’s available borrowing base, adding a degree of financial flexibility. NC ARE HIGHER INTEREST RATES HOLDING BACK HERD REBUILDING? • CONTINUED FROM PAGE 22
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