v      While futures contracts have posted solid gains these last two weeks, cash cattle prices continue to be driven more by news from Wall St. than by supply fundamentals.  Choice beef has been selling slow and steady this week keeping packers nervous about demand, and slow to open their wallets.

v      This month’s Cattle on Feed Report shows placements at 94%.  It estimates that big lots are ten percent below the four year average—with no more than 1.69 million head.  It remains to be seen whether the weaker demand will off-set the tighter supply.*

v      After months of speculation, President-Elect Barak Obama  announced Tom Vilsack, Former Iowa governor, as the new Ag Secretary on Wednesday.  The two men are advocates for combating global warming, and reducing our dependency on foreign oil by developing renewable sources of energy, and supporting bio-fuels.  President of the National Farmers Union, Tom Buis, was among those on the list of candidates for Ag Secretary.  His response to Obama’s choice:  “…With the severe economic conditions in rural America, it’s good to have someone who understands the challenges we face.”**

v      In response to the current economic crisis, NFO president Paul Olson proposed using earmarked funds to purchase grain, meat and dairy products for those in need --rather than provide farm payments for millionaires—to stimulate the Ag economy, and help those less fortunate.***

v      Methane that escapes into the atmosphere is 20-21 times more damaging than carbon dioxide; but, when methane produced by anaerobic digestion is collected by a generator or engine, the resulting energy can supply a facility with all its energy and heating needs.  One kW(1000 watts) of electricity is produced by 7-10 cows.  Anaerobic digestion processes can reduce waste volume and odor – all while saving the producer money, and adhering to strict drainage and storage regulations. ****

v      Get the chance to tour the Tyson-IBP plant in Joslin, IL, January 14^th, while visiting us at our National Convention.  Contact Katie Bailey if you are interested in attending the tour, as space is limited.  Later that evening join us for entertainment and dancing, with music by the Las Vegas based group, Passion.  For more information on attending, visit: www.nfo.org, or contact Katie Bailey to secure a spot on the tour: kbailey@nexusag.org.

*USDA Cattle on Feed Report. 19 December 2008.  <http://online.dtn.com/onlin/common/link.do?contentId=260&parentId=54901>

**Zeleny, Jeff, and David M. Herszenhorn. “Iowa Ex-Governor Picked for Agriculture Secretary”. 17 December 2008. The New York Times.

*** Garner, Perry.“Ag group proposes helping hungry, additional moves to stimulate farm economy”. 17 December 2008. National Farmers Org.

****Renewable Energy-Biomass "Farm Energy from Manure" Focus on Energy.2002

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