December 5, 2016

 
 
 
 

Monday Memo

 
 
 
 






Dr. Brian Williams
For the Week Ending
December 2, 2016

Cash Cattle:
Cash traded fed cattle were higher this week. The five-area fed steer price for the week of November 24 – December 1 averaged $114.14 for live sales, and $174.95 for dressed; respectively, up $3.08 and $2.04. Total volume sold was up 65,000 head from a week ago and up 56,000 head from last year.
Feeder steer cattle and calves were higher across the U.S. this week. Oklahoma City 500-550 pound steers were up $6.00, averaging $156.57 while 750-800 pound steers were up $2.00 averaging $136.28. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were averaging $137.50, up $9.50 from two weeks ago, while heavy steers were averaging $105.00, up $2.50 from two weeks ago. 

Futures:
Live cattle futures and feeder futures were lower this week. December live cattle were down $2.55 on the week and $15.75 lower than a year ago at $108.20, while April live cattle were down $2.69 from last week and down $20.68 from a year ago at $108.88. Feeder cattle were lower this week with January futures down $2.52 from last Friday and down $34.10 from a year ago at $124.70 while March futures are down $1.70 on the week at $121.65. March corn futures are down $0.08 from a week ago at $3.47 while July futures are also down $0.09.

Beef:                                                                                           
Wholesale boxed beef prices are lower compared to a week ago. Choice boxes averaged $189.55, up $3.25 from a week ago. Select boxes ended the week with an average of $172.81, up $2.98 from last week. The choice-select spread widened from $16.47 a week ago to $16.74 this week.
 
 
 
 
 






December
5 - Amite CCA
6 - Scott CCA
8 - Yazoo CCA
8 - Lafayette CCA
20 - Scholarships Applications Due
 
 
 
 
 

CHILLY DAY BEEF CHILI

  
Total Recipe Time: HIGH 6-1/2 hours or LOW 9-1/2 hours
Makes 6 to 8 servings
 
 
 
 
 
 
Mark Your Calendar
Mississippi Cattlemen's Association Convention and Trade Show will be February 10 & 11, 2017 at the Trade Mart in Jackson. The convention will highlight the accomplishments of the association and its members as well as educational programs for producers. 
 
 
 
 
 
Give Dad Something He Will Love
Need A Christmas Gift? 
What about something from our MCA Store? We have a selection of caps, shirts, jackets, and car tags. To order yours call the MCA office or drop by and visit the store. 
 
 
 
 
 

Merck will reward MCA for each Ralgro wheel we collect before the February convention.
Bring your wheels to any MCA event and give them to an MCA officer.
 
 
 
 
YCLS Visits Washington
 
 
 
Seven members of MCA's Young Cattlemen's Leadership Series (YCLS) were in Washington last week visiting with legislative representatives. While there they met with NCBA staff to discuss policy.
Applications are being accepted for the 2017 YCLS class. Contact the MCA office for information and nomination forms.
 
 
 
 
 
Cattlemen Call For Proposed IRS Regulation To Be Withdrawn
The Internal Revenue Service hosted a public hearing on a Department of Treasury proposed rule that would eliminate or greatly reduce available valuation discounts for family-related entities. Kevin Kester, National Cattlemen’s Beef Association vice president, said the regulation would effectively discourage families from continuing to operate or grow their businesses and passing them on to future generations.
Many cattle operations are family-owned small businesses, facing the same concerns as other small-businesses - making payroll, complying with numerous federal and state regulations, and paying bills, loans, and taxes. However, cattle producers face a number of unique challenges specific to agriculture.
“Ranching is a debt-intensive business, making the U.S. livestock industry especially vulnerable to the estate tax,” said Kester. “Beef producers largely operate an asset-rich, cash-poor business model: a cattleman’s biggest asset is his land. In the event of the death of a principal family member, illiquid assets are often sold in order to meet the costs associated with the estate tax.  As a result, many families are unable to keep their estates intact.”
For more than two decades, livestock producers have utilized legitimate valuation discounts as a means of maintaining family ownership. These discounts, which accurately reflect the actual market value of minority ownerships in closely-held businesses, reduce the tax burden at death allowing agricultural operations to maintain family ownership from one generation of producers to the next.
“Should the discounts be eliminated, a significant number of farmers and ranchers will face an even greater tax burden during the difficult task of transferring minority interests to the next generation,” said Kester. “Having dealt with the death tax on multiple occasions, I can assure you that it’s not easy to settle the estate of a loved one while coping with the loss of that loved one. To add insult to injury, the proposed rule will upend succession plans, halt planned expansion and growth, and require a majority of livestock operations to liquidate assets in order to simply survive from one generation to the next.”
The proposed regulations under Section 2704 will have a profoundly negative impact on the business climate for farmers and ranchers, ultimately dis-incentivizing a new generation of cattle producers from carrying on the family business. For that reason, NCBA calls for the IRS to formally withdraw the proposed rule.
 
 
 
 
 
Mississippi's Best Burger Contest Is Back!
We need your help to find the best burger in Mississippi. 
Go online by January 9, 2017 to nominate the best BEEF burger in the state. One $50 gift certificate will be awarded to a voter at each of the top 10 restaurants.
The contest is sponsored by the Mississippi Beef Council and the winning restaurant will receive an advertising package and be recognized at BEEF night during the Dixie National Rodeo.
If you haven't voted for your favorite burger restaurant, DO IT NOW
 
 
 
 
 
MS Hay Directory
The Mississippi Hay Directory is designed to assist Mississippi livestock producers in locating hay supplies. The list (PDF) provided includes information from individuals and businesses who have submitted a Mississippi Hay Directory Listing Submission Form indicating that they have hay for sale. Listings expire after 60 days.
To look at the available hay click here.
For more information on how cattlemen can deal with drought, Mississippi State Extension has a publication online: Mississippi Beef Cattle - Producer Guide to Coping with Drought Conditions.
For additional hay listings in Mississippi, please visit the Mississippi Market Bulletin online at http://www.msmarketbulletin.org/ 
 
 
 
 
 
Star Junior Applications  Available
Star Junior Cattlemen Applications are now online at the MCA website www.mscattlemen.org.
 Deadline to enter is January 4, 2017.
 
 
 
 
 
Applications Now Online
Applications for the Mississippi CattleWomen's Association and Mississippi Cattlemen's Foundation scholarships are posted online at the MCA website www.mscattlemen.org.
Scholarships will be presented at the annual convention in February. Deadline to enter is December 20, 2016.
 
 
 
 
 
MCA Online!
You can pay your MCA dues online. MCA is looking out for cattle producers in Mississippi. MCA monitors the legislative and regulatory activity in Jackson and Washington, D.C. We're working every day to influence producer legislation in a manner that benefits cattle producers. Click Here to learn more.
 
 
 
 
Allied Industry Members
 
 
 
 
 

680 Monroe St. Suite A • Jackson, MS 39202 |  601·354·8951

www.mscattlemen.org

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