Dear Sir,
Wade Choate's letter criticizing the futures market
awakened old memories of a similar trap in which I was
caught about 20 years ago. I was taken for nice hunk of
change and I haven't played the futures game since. Most
of this time since, I haven't made a big profit and I'm
sure we producers lose plenty indirectly by way of
Chicago, but I haven't visited with any of the young
financial sharks since that time. It sure is tempting,
though, with the multitude of good-intended advice coming
daily from our college brethren.
Wade, I don't believe you and I nor any of our
children will ever again see the day of good, honest,
open, active competition for our fat cattle by the
packers, or of vigorous, open price competition among the
retailers to sell beef.
Supermarkets want to keep a meat glut because it
allows them to buy cheaply. They sell at the highest
prices and volume so as to keep their costs low and
profits high. The old grocery competition is gone and one
needs to question the giving of checkoff dollars to an
industry that has a vested interest in holding sales down
and keeping profits per sale high.
The packers, so concentrated as they are and so
protected by our "for sale" government, are
ignoring any price-fixing laws which should help protect
us. Packer control of captive cattle is one of the real
problems, and this gets worse every month with increased
packer feedyard ownership and marketing agreements.
Feedyard managers are intimidated and scared of the
packers, and there are rumors of lesson-teaching
boycotts. Some managers are said to use a good pen of
cattle to sell other inferior cattle. This may be unfair,
but I wonder if there are not also a few questionable
manager-packer relationships.
If we producers owned and controlled our own feedyards
and we were united in purpose, we could say to the
packer, "when a pen of our cattle reach 1100 pounds
they will be placed on a maintenance ration. You will buy
them before we will offer you any other cattle."
After the fuss, the weights would be down about five
percent.
If you could get paid for more Choice cattle, you
could leave out the implants. It is a proven fact that
the percentage of Choice cattle will rise form 50 to 70.
Of course, the cost of gain will rise, but the point is
that this is a quick way to improve quality. For 30
years, any increase in cattle tonnage has meant less
total dollars to the producer.
As for the beef checkoff program, I wish someone could
explain to me how anyone not paying the assessment should
be on the board, directing how the money is spent. It
also seems strange that the payers cannot even vote on
keeping or not keeping the program, and I resent the
spending of my money to re-educate and re-indoctrinate me
so that I will accept the political garbage of the
management. My feedyard, which I believe is a good one,
regularly sells the sick cattle for 10 to 50 dollars
each. Want to guess on whether or not the one dollar is
collected on these big losers? I would still vote for the
program if all the money were spent for advertising and
beneficial political action. Thanks, Wade Choate.
Norman Hahn
Jayton, Texas
Dear Sir,
I was really pleased to see two articles in your
paper last week that have been high on my list of gripes.
One was my old friend Wade Choate's letter on the
commodities market and the disastrous affect it has on
the live cattle market. Prior to the Chicago Mercantile's
intervention, a person could sometimes predict cattle
prices by virtue of cattle numbers, weather conditions,
etc. Now it all depends on the big money people,
corporations, and banks dealing in the commodities.
Instead of getting less CME, we get more. Now you can
trade (gamble) on the feeder cattle also.
Where is the NCBA that is supposed to help us with our
checkoff dollars? The problem is, NCBA supports the CME,
world trade and many other issues I don't support, and I
feel lots of other cow-calf people agree with me.
The other was your editorial on changing beef grading
because of the change in cattle breeds plus the scare of
fat meat put on us wrongly by the medical profession and
others. How can we blame people for eating chicken when
it is so consistently tender and beef at cafes is so
inconsistent? Recently my wife and I were in Clayton,
N.M., where cattle are king and they have three feedlots.
We saw a sign advertising a steak special and went in to
participate in a good meal. That has to be one of the
worst steaks I ever tried to eat, even after sending the
first one back. Road kill would have been a step up in
quality.
The grading system needs to return to the old Prime,
Choice and Good system we had before the packers changed
it to their monetary advantage. Meat is not consistent
without marbling in spite of all the university and other
studies trying to find genetic and other reasons to the
contrary. Again, where is NCBA with all the money I
contribute annually?
William C. Haverlah
Santa Rosa, NM
Dear Sir,
It was interesting to see in your February 25, 1999
issue that the beef industry's team is hard at work
developing convenient products to increase beef and veal
sales.
I sincerely feel these scientific types have seen the
light. The only real problem is this should have been
happening in February 1949, not 1999.
The chicken and fish folks have left us so far behind,
it will be another 50 years before we catch up.
I'm a faithful subscriber to your newspaper. Keep up
the good work.
D.M. Martin
Willcox, Arizona
Dear Sir,
Right at this time, the United States Senate is under
extreme pressure to ratify the United Nations'
International Criminal Court treaty. This treaty will
subject every private U.S. citizen and military member to
a United Nations Criminal Court, and it is without
question the most dangerous threat to our freedom and
liberty you and I have ever faced.
It is imperative that the senators hear from us, the
grassroots, and to know that we do not want nor need this
treaty! Senators Gramm and Hutchison have been very
responsive in the direction of protecting the citizens of
this country, but Sen. Trent Lott is being pressured to
bring it up for ratification, and without OUR opposition
on HIS desk, he just might decide to do so. It is he
alone who will decide if the ICC treaty will be brought
to the Senate floor for a vote. He can decide to ignore
it, refuse the vote and kill the treaty. With enough
opposition to this treaty from you and me, this is just
what he might do. It is of utmost importance that we
leave him no other choice, by calling his office, or by
sending faxes or e-mail letters to his office and
creating the pressure that is needed. Senator Trent
Lott's address is simply: Senate Office Building,
Washington, D.C. 20510. His fax number is (202) 224-2262.
His e-mail address is senatorlott@lott.senate.gov.
If you and I don't stop this UN treaty, I sincerely
believe there will be no stopping the UN's drive for
global power. This treaty will give the UN the power to
try private American citizens for "crimes against UN
treaties."
Think about what this means:
American soldiers, pilots and commanders can be
arrested, jailed and even executed for war crimes when
the U.S. military launches attacks on terrorists!
American ranchers and loggers could be tried for
violating UN environmental treaties.
Parents who spank their children can be arrested and
jailed for violating the UN's "Rights of the Child
Treaty."
The judges who will decide the fate of these Americans
can be from countries like Iran, Iraq, Libya, Communist
China and Cuba.
And the U.S. government will be powerless to stop it!
What type of defense would a private American citizen
be able to mount against such a powerful international
court? If the Senate ratifies this treaty, it will shred
our Constitutional guarantees to fair and impartial
justice. Under this treaty, American citizens and
military members:
Will not have the right to a speedy trial by jury.
Will not have the right to reasonable bail.
Will not have the right to confront their accusers.
Will not have the right to cross-examine witnesses.
You will have no rights whatsoever in the U.N. Criminal
Court!
If you have never written or called your senators,
this is the time to do so. It doesn't take much! All you
have to do is tell them, "Kill the United Nations'
treaty establishing a United Nations International
Criminal Court. Period!" A phone call or fax costs
only about 10 cents, so money should not persuade you not
to do something. Never underestimate what your voice can
do to influence Washington and the way they vote!
Again, please let Senator Phil Gramm, Senator Kay
Bailey Hutchison and, especially, Senator Trent Lott hear
from you immediately!
Mrs. Rae Lehmberg
Mason, Texas
Dear Sir,
Jose Peña, Extension economist, provided a solid
analysis of the domestic lamb industry section 201 trade
case regarding lamb imports from Australia and New
Zealand in the March 11 issue of Livestock Weekly. In
particular, he detailed the industry's request for a
strong tariff-rate quota that would bring price equity
between American lamb and cheap foreign lamb, which has
been flooding the U.S. market. In addition, I would like
to point out that the U.S. International Trade Commission
voted unanimously in February that imports posed a
serious threat to the U.S. lamb industry. This is a
strong signal to the administration and the Congress that
relief needs to be implemented.
Also, by law, importers cannot "retaliate"
against trade action for at least three years. The
political environment is right now to make headway on
trade action. In fact, more attention is being paid to
agriculture and the devastation uncontrolled imports have
had on various industries now than ever before. The U.S.
lamb industry and its supporting members of Congress can
secure effective trade relief through the administration.
The Commission will recommend trade remedy to the White
house by the first week of April, which gives the
administration 60 days to decide on implementation. I
would caution Mr. Peña's comparison of lamb to the
cotton industry, since sheep producers have no price
support, no marketing loans, and no processor programs,
all of which the cotton industry does have.
The industry greatly appreciates your continued
coverage of the critical lamb import situation and
resulting trade case, which, by the way, is closely
followed by many in the agriculture community.
Peter Orwick
Executive Director
American Sheep Industry Association
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