Livestock Mandatory Reporting - Bringing Transparency to the Marketplace

From USDA:

Posted by Craig A. Morris, Deputy Administrator of the AMS Livestock, Poultry and Seed Program, on January 20, 2015 at 9:30 AM

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. USDA Photo Courtesy of the National Organic Program.

The Livestock Mandatory Price Reporting (LMR) Program was established to expand pricing information available in the livestock industry. Part of USDA Market News data, the information is distributed by the Agricultural Marketing Service (AMS) and allows analysts to dive in head first and fulfill all of their number crunching ambitions.

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. Livestock Mandatory Reporting encourages competition in the marketplace by vastly improving price and supply data, bringing transparency, breadth and depth to market reporting. The program gets its authority through the Livestock Mandatory Reporting Act of 1999, which must be reauthorized by Congress every five years. The program is up for reauthorization in September 2015.

Thousands of business transactions every day rest on the outcome of Livestock Mandatory Reporting data. From the small farmer looking to market a few head of cattle to the giant packer looking to increase their profits, USDA Market News is an invaluable resource.

Here is a real life example of how it works. Last year was one for the record books. Beef cutout levels climbed at an alarming rate, and it was clear that something unusual was happening.  Cattle were in tight supply, which means trimmings were also in tight supply. In the winter months, ground product and end meats – such as chuck or round roasts – are in demand as consumers prepare hot chili and stews.  In order to meet this demand, packers found themselves grinding primal cuts and selling them as ground beef causing ground beef prices to reach record highs.

Suddenly, it seemed that ground beef was something everyone should have been paying close attention to all along.  You asked, we answered. We now publish a section on the Weekly Cattle and Beef Summary that includes information about the effect of ground beef and trimmings on the National Boxed Beef Comprehensive Cutout. We also expanded the National Weekly Comprehensive Item Summaryto include additional ground beef and trimming pricing information.

In a voluntary reporting situation like we utilized in the past in, which meatpackers voluntarily provided pricing information to AMS, finding the cause of price fluctuations would be much more difficult. The difference with Livestock Mandatory Price Reporting, however, is that by collecting and disseminating such a detailed amount of data, we are able to quickly reveal exact reasons for why changes in the marketplace are taking place.

This year marks the 100^th anniversary of USDA Market News.  Over the years, our reports have evolved but our service and dedication to the agricultural industry remains our focus.  Over the course of 2015, we will continue to provide information about Market News.  The USDA Market News Portal is available at www.marketnews.usda.gov where you can explore all of our Livestock Mandatory Reporting reports.

Livestock Mandatory Reporting vastly improves livestock price and supply data to encourage competition in the marketplace by increasing the amount of information available. The program helps bring transparency, breadth and depth to market reporting.

Partnerships Make "Gouda" on USDA's Commitment to Rural America

From USDA:

Posted by Anne Alonzo, Agricultural Marketing Service Administrator, on December 19, 2014 at 10:00 AM

With over 11,000 dairy farms, more than a million cows, and over 200 dairy plants, Wisconsin produces more than 25 percent of all cheese in the United States. Photo courtesy of Yelp Inc.

’Tis the season for good cheer, holiday festivities and cheese plates.   There are seemingly endless varieties to enjoy – Gouda, Blue, Cheddar, Asiago, Feta, Muenster and many more.  Hardworking American dairy farmers and cheese artisans make these delicious products. A strong dairy sector not only provides us with delicious food for the holiday table, it also has a great impact on rural America and local economies.

My agency, USDA’s Agricultural Marketing Service (AMS), has a long history of working with the dairy industry, state governments and stakeholders to help farmers and producers.  I’ve actually been able to see first-hand how AMS programs services benefit dairy operations.  In August, I toured two Wisconsin dairy farms – Rosendale Dairy, a large farm with over 8,500 cows, and R&G Miller & Sons, an organic dairy farm with about 260 milking cows.

I left with a deeper appreciation for the extensive care and effort that farmers invest in providing consumers with safe milk and dairy products.  They even named a calf after me at Rosendale Dairy!  I also learned how AMS partnerships have helped reinvigorate and restore opportunities for dairy producers in Wisconsin.

In August, AMS Administrator Anne L. Alonzo toured two Wisconsin dairy farms and saw first-hand how AMS programs services benefit dairy operations. At Rosendale Dairy they even named a calf (pictured here) after her. Photo courtesy Rosendale Dairy.

In 2001, AMS’s Federal-State Marketing Improvement Program (FSMIP) – which supports research projects that improve the marketing, transportation, and distribution of U.S. agricultural products, including dairy products – awarded a 2-year grant to the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) to help develop the state’s emerging farmstead dairy sector.  The project focused on practical ways to help dairy farmers, producers, marketers, distributors, and beginning farmers respond to the growing consumer demand for specialty, locally-produced, and value-added products.

It was a big success! The FSMIP project set the stage for the Wisconsin Value Added Dairy Initiative (VADI), which launched the Dairy Business Innovation Center (DBIC) as a non-profit corporation to support specialty and artisan cheese and dairy businesses.  The DBIC provided large and small emerging and existing dairy farmers and businesses with targeted, one-on-one technical assistance. Another important VADI component, the Grow Wisconsin Dairy Team, acted as a catalyst for reinvestment and innovation by focusing on producer modernization, enhanced value in the supply chain, and value-added production.

In all, the VADI helped 1,716 farmers with modernization services.  Milk production rose from 22 billion pounds at the start of the project to a new state record of 27.6 billion pounds, and specialty dairy volume increased by more than 66 percent to 504,099 pounds. By the end of 2013, specialty dairy volume had increased to 611,162 pounds, a 102 percent increase since 2004. During this same time period, 93 processing plants were created or expanded, and Wisconsin dairies produced 73 new products and for consumers to enjoy. DBIC clients also won more than 1,000 awards at various national cheese competitions.

With over 11,000 dairy farms, more than a million cows, and over 200 dairy plants, Wisconsin’s dairy industry is a mainstay of the state’s economic backbone. Today, Wisconsin produces more than 25 percent of all cheese in the United States. This success shows the value of leveraging Federal, state, and stakeholder partnerships to move the dairy industry forward and help revitalize rural America.  It also demonstrates USDA’s commitment to revitalizing the rural economy, creating jobs and supporting American farmers and ranchers.

Cheese makers involved with the Wisconsin Value Added Dairy Initiative (VADI) have won more than 1,000 awards at various national cheese competitions since the project began in 2004. Photo courtesy of Ulterior Epicure.

Five Cs of Arizona

From USDA:

Posted by Dave DeWalt, Arizona State Statistician, National Agricultural Statistics Service, on December 4, 2014 at 9:30 AM

American Indian operators run more than half of all farms in AZ, according to the 2012 Census of Agriculture. Check back next week for another close-up of another state’s agriculture scene from the 2012 Census.

The Census of Agriculture is the most complete account of U.S. farms and ranches and the people who operate them. Every Thursday USDA’s National Agricultural Statistics Service will highlight new Census data and the power of the information to shape the future of American agriculture.

For decades, school children in Arizona have been taught the five Cs: Copper, Cattle, Cotton, Citrus, and Climate. These five C’s have been the driving force behind Arizona’s economy, and gave economic security to past generations and hope to many generations. However, all that is changing. Arizona, like the rest of the country, is undergoing an economic transformation. Arizona is moving from a mining and agriculturally oriented economy, to a high-technology and service-based economy. This is changing the patterns of where Arizonans live and work.

Three of Arizona’s Cs – cattle, cotton, and citrus – were counted in the most recent Census of Agriculture and the results showed that they are still economically significant. The value of cattle, cotton and citrus production that was sold in 2012 totaled nearly $940 million, excluding the more than $760 million in milk sales. Total market value of all agricultural products sold topped $3.7 billion.

The Ag Census also stayed true to USDA’s focus on new farms. These include minority-operated farms, young farmers new to agriculture, small producers of specialty commodities and organic operations. Historically these types of farms have been undercounted or have been very difficult to count. Arizona has an especially strong connection to these farms as we have the highest number of American Indian farmers in the United States. The total number of American Indian farms in Arizona rose to more than 11,000, which means that as of 2012, American Indian operators run more than half of all farms in our state. These farms cover almost 21 million acres of land, which is nearly 80 percent of all farmland in Arizona.

In our state, as well as in the rest of the United States, the average farmer is getting older.  The average age of farmers and ranchers in Arizona is 61 years old.  The number of young farmers (under 25 years old) rose but still made up less than one percent of all farms.

What else can be said about Arizona agriculture? The agriculture base in the Grand Canyon State is truly unique and ever-changing. However, one thing seems certain to remain the same. Arizona farmers and ranchers will continue to face challenges with water, weather and the economics of farming and ranching and NASS will continue its role in providing quality data to help producers make sound decisions.