Stocker

Study Shows Cattle Are Increasingly Resistant to BRD Antibiotics

Fri, 20 Nov 2020 05:37:32 GMT

—Kansas State University news release

A survey of records of bovine respiratory disease cases at the Kansas State Veterinary Diagnostic Laboratory showed that drug resistance in one of the primary pathogens that cause BRD, Mannheimia haemolytica, increased over a three-year period.
“We have been seeing an increase in the number of antibiotic resistant bacteria that cause pneumonia (also called BRD) in cattle,” said Brian Lubbers, assistant professor in the diagnostic lab, based at Kansas State University. “Many of these bacteria are resistant to, not one, but almost all of the antibiotics that we use to treat pneumonia in cattle.”
BRD is one of the most important diseases of feedlot cattle, particularly, said Lubbers, adding that the economic toll from the disease has been estimated to approach $1 billion annually in the United States alone, if one takes into account drug and labor costs, decreased production, and animal death losses.
Until now, one of the aspects that has not been studied very well is the cost linked to antimicrobial resistance in BRD cases, he said. To take a closer look, he and colleague Gregg Hanzlicek, also an assistant professor in the diagnostic lab, examined records of cases in which specimens of bovine lung tissue were submitted to the diagnostic lab over the three years, 2009 to 2011. Most of the cattle were from Kansas and Nebraska.
They found that over that period, a high percentage of M. haemolytica bacteria recovered from cattle lungs were resistant to several of the drugs typically used to treat that pathogen. The researchers also found, however, that no specimens were resistant to all six antimicrobial drugs.
The study was funded internally by the diagnostic lab.
Using resistance to three or more antimicrobials as the definition of multi-drug resistance, 63 percent of the bacteria would be classified as multidrug resistant in 2011, compared with 46 percent in 2010 and 42 percent in 2009.
The results of the study were published by the Journal of Veterinary Diagnostic Investigation. The abstract is available.
“Antimicrobial resistance in veterinary medicine has received a considerable amount of recognition as a potential factor leading to antimicrobial resistance in human medicine,” Lubbers said. “However, the contribution of multidrug resistance to limited or failed therapy in veterinary patients has received much less attention.”
Because there are a limited number of antimicrobial drugs that can be used for treatment of BRD pathogens, Lubbers said, multidrug resistance in those pathogens poses a severe threat to the livestock industry.
“We (KSVDL) consider this type of information to be part of our active ongoing disease surveillance and will continue this work,” Lubbers said. “The questions of how these bacteria develop or where they come from, how widespread they are, and what is the impact on cattle production are still unanswered. We are actively seeking industry partners to investigate these questions.”

Cattle producers Look to Double Crop Plantings to Increase Forage Harvest

Fri, 20 Nov 2020 05:36:55 GMT

—Frank Wardynski, Michigan State University Extension

Many beef producers across the Midwest have had difficulties harvesting high quality hay due to inclement weather. High quality forages are in short supply and difficult to purchase.

Beef producers who are short of high quality forage have an opportunity to double crop behind wheat grain harvest. There are opportunities to double crop forage plantings behind winter wheat grain harvest this summer. According to Michigan State University Extension, several options are available to plant after wheat. Oats, peas, and forage soybeans are some of the options available for late season planting.

Oats can be planted to be harvested as hay or silage. Oats can also be planted in combination with peas to produce high quality feed. Other small grains such as spring wheat, triticale and barley have also been successfully planted with peas for high quality forage production. Like many of the annual feeds, drying to make dry hay can be difficult. These crops are best suited for silage or balage production.

Another option is to plant a forage type soybean. Research utilizing soybeans as forage is very limited. Forage soybean feed analysis indicate protein and fiber values to be nearly comparable to alfalfa: protein 18-20 percent, NDF 38-46 percent, and ADF 28-34 percent. Soybean forage with these feed values was planted with an objective to harvest as high quality forage. Soybeans that are weather damaged or frozen before reaching maturity can be useful feed for beef cows but will not produce forage similar in quality to alfalfa. Soybeans should be harvested just before the R7 stage which occurs when one pod of the main stem contains mature seeds. Another concern is the limited list of pesticides approved for use on soybeans destined to be harvested for livestock feed. As with all cropping options, pesticide application must be approved to be used on crops destined for livestock feed.

Given the conditions seen across much of the Midwest, demand for high quality alfalfa is greater than current available supply. Finding methods to harvest more forage that fit into the feeding regime of a dairy farm could be the most important economic decision that producers will face this year. For more information regarding harvesting forages to increase feed supply, visit www.msue.msu.edu .

Limit Risk On Stockers

Fri, 20 Nov 2020 05:31:37 GMT

Calculators & Spreadsheets

Feeder Cattle Bid Calculator (Online Excel spreadsheet) Iowa State University

Click here to read “Managing Cattle Price Risk with Futures and Options Contracts” from John Lawrence, Iowa State University

Livestock Enterprise Budgets for Iowa — 2010 (Breakeven worksheet)

Source Web sites:

From 2002 to 2006, cow–calf producers were the one profitable segment in the cattle industry, according to data from CattleFax. That trend, however, is taking a turn. Cow–calf producers no longer have an automatic advantage when marketing calves.

There are, however, ways to limit risk when it comes time to market calves, says Brett Stuart, CattleFax analyst. His suggestions:

Consider two pricing windows for calves. This allows you to market calves in two time periods to avoid taking a hit should prices fall. Half could be priced in July or August and the rest priced later in the fall, when they are delivered.
Watch market seasonality. Typically, 550-lb. steer prices peak in March and April and bottom in November. If you can’t adjust production cycles to accommodate, forward contract in the summer before seasonal lows.
Have a plan B. There has been a collapse in fall calf and feeder prices in the past two years. Have a backup plan if you retain ownership.
Backgrounding and preconditioning are management protocols that pay if you retain ownership on calves. That’s because you get the additional health benefits and improved gains from the calves. If you sell the calves, advertise the added value to buyers.
Run summer yearlings if you have available forage. This works eight out of 10 years, Stuart says. (See the chart below.) The key is to know your break-even cost of production and use seasonal futures to forward contract. Manage for return over investment, not necessarily profit.

Forward contracts. “Producers have many options to take advantage of seasonal volatility in the feeder cattle market,” adds Justin Gleghorn, market analyst for Brock Thompson Trading in Amarillo, Texas.

Normally the Chicago Mercantile Exchange feeder cattle contract reaches a high in the summer and trades lower through the end of the year.

“If a producer will be selling feeder cattle in a declining market, then a short hedge strategy can be implemented, whereby a short position is taken in one of the fall contracts:

August, September, October or November,” he explains. “The decline in cash price can be partially offset by gains made from the short hedge, basis adjustments accounted for.”

Producers can also use options, where they can buy a put—which is the right, but not the obligation, to take a short position in the market at a given price in a given month—for a premium.

“The premium paid for the option is the producer’s maximum risk,” Gleghorn explains. “If the futures market is trading above the strike price of the option when the option expires, the put will expire worthless and the producer’s loss will be the premium paid for the put.

“However, if the futures market is trading below the strike price, the producer can elect to establish a short position at the strike price of the put and then take advantage of the declining market.” When using this strategy, you need to account for the premium paid for the put and include it in break-even calculation. BT

To contact Kim Watson-Potts, e-mail kwatson@farmjournal.com .

Trusteed IRAs: why they are popular, who should consider them, what benefits they offer

Fri, 23 Sep 2022 20:01:45 GMT

Q: I’ve heard a lot about trusteed IRAs. How do they differ from traditional IRAs?

A: Simply put, trusteed IRAs offer potential tax benefits of traditional or Roth IRAs with the protection and control of a trust. They provide tax advantages that stretch into the future and offer the ability to control how, when and in what amounts assets are distributed. Trusteed IRAs have become more popular given some of the inherent limits of traditional IRAs and the growing prevalence of self-directed retirement accounts combined with the decline of pension plans. They also are more cost-effective than setting up a trust and are generally more compliant with tax laws.

Q: Who should consider a trusteed IRA?

A: There are several reasons why someone should consider a trusteed IRA, the most consequential of which is if an owner has an interest in controlling assets and realizing tax benefits beyond their lifetime. This can mean an owner is concerned with the financial discipline or sophistication of heirs.

Other reasons include if an owner remarries and wants to provide for a current spouse as well as children from a previous relationship and/or is concerned about IRA management in the event of incapacitation.

Q: I’m in the middle of estate planning. How can a trusteed IRA help with the process?

A: They can help process if only to preserve the potential tax-advantaged accumulation of IRA benefits to pass on to heirs. Under traditional or custodial IRAs, a beneficiary is required to withdraw at least the Required Minimum Distribution (RMD) each year. However, a beneficiary may withdraw additional amounts, for any reason, at any time—and incur possible fees or tax penalties.

Additionally, owners can restrict payouts to a beneficiary to the RMD, enabling it to operate as a spendthrift trust. At the owner’s death, the trusteed IRA would be automatically split into separate accounts for individual beneficiaries, with distribution terms defined for each account.

Another benefit is that estate plans don’t need to be rewritten or updated; trusteed IRAs can be added independent of an estate plan to protect IRA assets which legally pass outside of wills.

Q: Is a trusteed IRA better suited to farmers or owners of farm assets?

A: Not expressly, but a trusteed IRA can play an important role in legacy planning and preservation of farm assets over multiple generations. Given the growing generation gap among farming families, trusteed IRAs could be a way help preserve farm family values over generations from beyond the grave. Moreover, as farm economics continues to change, farmers may find value in the highly customizable nature of trusteed IRAs. In the event of a divorce in the family, for example, assets can be made to not leave the family’s bloodlines.

Q: Are there any downsides to trusteed IRAs?

A: Given that a trusteed IRA requires a corporate trustee, it’s harder to change ownership and family members cannot be named as trustees. Not all financial institutions offer trusteed IRAs so they may not be widely available to interested clients. Additionally, while they offer greater customization and more control, trusteed IRAs carry some limits. To have the highest level of customization and control, a trust would need to be created.

Please send questions, comments or requests to address a topic or issue to Rees Mason at rees.mason@ml.com.