|
VOLUME XIX, NO. 1 |
TEXAS DAIRY REVIEW |
JANUARY 2010 |
|
||
 |
||
|
Good Riddance to 2009 and a more promising 2010 The money is gone, so who can you trust with your fortune? Attend and support Erath County Junior Livestock Show AGRILIFE EXTENSION TO HOST "SILAGE PRODUCTION SEMINAR" New Year Means New Regulation for Texas Cattle DFA loses leader and good friend
|
||
|
Good Riddance to 2009 and a more promising 2010 |
||
|
By David P. Anderson Professor and Extension Economist Texas AgriLife Extension Service Finally, it is time to, at least, change the calendar to a new year and leave 2009 behind. While the calendar can change, the aftermath of 2009, the worst year for the dairy industry in many years, will continue for a long time. But, 2010 has some promise to be better. Setting the Stage The U.S. dairy cow inventory declined to under 9.1 million head by November, 2009. That was more than 200,000 head fewer than at the beginning of the year. Much of that decline was due to the three CWT herd buyouts over the course of the year. Milk production per cow continues to outpace 2008’s production per cow. But, by September the decline in cow numbers was enough to pull production below year-ago levels. Cow numbers should continue to decline into the new year and will probably fall below 9 million head as culling continues. But, production per cow should stay above 2009 levels, mitigating the effect of declining cow numbers on milk production. Milk production may decline 1-1.5 percent for the year. Declining milk supplies will set the stage for further increases in milk prices in 2010. Economy Remains the Key While cutting supplies sets the stage for higher prices, the economy and demand will be the key to moving milk prices sharply higher in 2010. Exports in a booming world economy in 2008 pushed prices higher (with some help from tighter world milk supplies). The overall economic and financial collapse did the same to milk prices. Exports are beginning to show some signs of life, increasing late in 2009. Some continued growth--- while that growth is not assured--- should help prices in 2010. Domestic demand will be the real key. Gross Domestic Product (GDP) has begun to increase after a year of quarterly declines. While increasing GDP is a good sign, the economy has a long way to go. Unemployment remains high, although the rate of growth has slowed. Measures of consumer confidence remain weak and measures of restaurant performance also remain weak. As with milk production moving in the right direction to result in higher prices, the economy is probably moving in the right direction. While it may be a slow recovery, economic recovery and with it---milk product demand recovery---is moving in the right direction for higher prices. Some Risks Remain Significant risks remain on the milk production cost side. This year’s corn harvest has been delayed. Over the last three years, corn use and production have grown to record levels. The growth in use has necessitated continued large crops to keep a lid on prices. That has resulted in a situation where the livestock and dairy industry is depending on good growing seasons every year. Great growing conditions, year after year, is hard to count on, leaving significant feed price risk. All of the factors needed for significant price recovery are moving in the right direction, supply is tightening and demand appears to be slowly growing. Those combined should allow milk prices to increase into the upper teens in 2010. Class III milk prices should increase to $16.00 per cwt in 2010. Significantly less production or much greater demand growth hold the potential to increase milk prices to much higher levels. While these prices will move many producers back to profits, it is not enough for producers to really recover from the losses in 2009. A full recovery will take a longer period of sustained profits. |
||
|
|
||
|
The money is gone, so who can you trust with your fortune? |
||
|
By Sherry Webb Jim and Jason Beyer, owners of Erath County Dairy Sales, don’t know the answer nowadays but can certainly attest to the anger felt after learning more than $1 million dollars in eight multiple Beyer family trusts was stolen by two people they have trusted nearly all their lives. The Beyer family is one of the hardest-hit families in the much-like Ponzi scheme carried out by two Stephenville, Texas, certified public accountants, David Thomas Cheatham, 65, and Paul Anthony Lansford, 69. The trusts were left to the Beyer family by Jim’s deceased parents, Jack and Edith. Cheatham and Lansford are accused of stealing and misapplying funds totaling $1.8 million from April 2003 to Jan. 2009 in the alleged Beyer offense. Another victim who lost a substantial amount of money to the alleged thieves is James T. Poston, also of Stephenville. Poston’s family fortune of nearly $2 million dollars dwindled away in a similar misapplication of funds by the accountants over a 20-year period, from May 1989 to 2009. Jim and Jason Beyer, the son and grandson (respectively) of Jack and Edith are widely known in the dairy industry for buying, selling, and handling cattle auctions. Over the years, Jim’s father, Jack, had grown to become an icon in the industry and amassed his affluence from being a successful dairy owner and businessman. Jim was literally dumbstruck when last month he tried to collect money from his account at the CPA firm and was told by Cheatham “Well, we just spent your money----and we’re sorry.” Jim told a reporter in a recent television interview, “It was hard to keep from reaching over the table and grabbing hold of them.” Although Jim immediately shut down all the accounts, he was able to retain only $8,200 of the multiple trusts. When the truth unraveled, the two accountants retained local defense attorney Garry Lewellen and voluntarily told Erath County District Attorney Jason Cashon about other victims. They allegedly stole somewhere between $3 and $4 million dollars from their clients. In addition to Beyer and Poston, the indictment also alleges Cheatham misapplied $1,500 to $20,000 from the First Baptist Church of Stephenville fund in January 2007. Lansford is also accused of misapplying funds belonging to Pecan Valley Facilities, Inc., a local mental health treatment facility and non-profit organization for cumulative properties of “$20,000 or more but less than $100,000,” as stated in the indictment. The two accountants were considered by many as pillars of the community. Many locals had entrusted their money to the well-known accounting firm. The duo had practiced in Stephenville for more than 30 years where both were active in community social and church activities. Cheatham was a deacon at First Baptist Church and both were longtime members of Optimist Club. “No matter what they were then, they are now alleged criminals with 19 felony indictments against them,” said Erath County District Attorney Jason Cashon. Cashon’s office, the Texas Rangers, and the U.S. Secret Service were all part of a 7-month investigation leading to the indictments by an Erath County Grand Jury that took less than 24 hours to decide. The two alleged thieves also made bad business transactions that included client investments. “But, it was for their own benefit and went in their own pockets, not their clients,” Cashon said. “When the investments didn’t pay back, they had to take money from other client accounts.” Cashon said they were allegedly drawing $30 to $50,000 per month from client accounts. “They are nothing but thieves,” said Jason Johnson, the Beyers’ attorney. “It is such a shame to think your money is being handled by someone you trust, only to find that it has been stolen. Edith Beyer, Jim’s mother, was personal friends with David Cheatham and that’s why the trust was set up with that particular CPA firm,” Johnson said. The mystery surrounding the case is what the money was spent on and where. Cashon and Johnson both said the alleged thieves claimed it was spent on “paying bills and making payroll.” The investigation did not reveal any lavish lifestyles, fancy homes or automobiles. “In fact, last summer, Cheatham sold his home and was living in a rented facility,” Johnson said. Cashon said regardless of where the money went, he intends to work hard for the victims involved. “We want our pound of flesh,” he said. “Right now, the future for the two CPAs looks very bleak. They have lived most of their lives and it’s pathetic for them to end up like this. But, they are thieves and deserve whatever they get.” Cashon said jury selection in the case will most likely not begin until March, but it will be tedious and thorough. He said he is currently evaluating a change of venue. The two alleged thieves remain in Erath County Jail with bond set for Cheatham at $410,000 and for Lansford, $425,000. They appeared at a pre-trial hearing on Mon., Jan. 4, but waived arraignment proceedings. In a town with less than 17,000 in population, a crime of this caliber is shocking. It is a tragedy for a community that is based on trust; where people take you for your word and a handshake often seals a deal. This eye-opener, however, makes people a little more aware, a little less trusting, and a lot more skeptical. “It’s hard to believe the man my grandparents trusted betrayed them after they were gone,” Jason Beyer said. “It makes you so mad and frustrated to think they got away with it for all this time. They took advantage of everybody and the money will never be recouped.” |
||
|
|
||
|
Attend and support Erath County Junior Livestock Show |
||
|
Folks are encouraged to attend the Erath County Junior Livestock Show that begins Sat., Jan. 9 through Tues., Jan. 12 at Erath County Livestock Association Arena, Stephenville. Youngsters involved in the show have worked hard all year to prepare their animals and it is highly important for people to attend the event to show their support. Sponsored by the Stephenville Chamber of Commerce, judging begins at 10 a.m. with swine, sheep and goat and concludes at 6:30 p.m. on Tuesday when the market auction is held. The Dairy Auction Sale will be on Sat., Jan. 9 at 7 p.m. All dairy animals must be on show grounds and checked in with their division superintendent at least one hour prior to dairy judging at 10 a.m. The judging will consist of showmanship, breeding dairy, and dairy selling. The executive committee consists of Danny Phillips, show chairman; Joe Altebaumer, treasurer, Doug Shores, building and grounds; Dean Taylor, auction sale; Rusty Rose, accounting; Joe Bob Huddleston, Stephenville Chamber of Commerce; Jerry Singleton, past show chairman; Danny Phillips, livestock, and Eric Hargrove, livestock. |
||
|
|
||
|
AGRILIFE EXTENSION TO HOST "SILAGE PRODUCTION SEMINAR" |
||
|
Texas AgriLife Extension Service in Comanche County will host the "Central Texas Silage Production Seminar" on Feb.3, 2010 at Comanche Community Center. The silage production meeting will address the production of corn and forage sorghums for silage production. Registration is at 9:30 a.m. and the program will follow promptly at 10 a.m., concluding at 3 p.m. Participants will receive one hour of DOPA credit. In addition, one hour of General and one hour of Integrated Pest Management continuing education hours will be offered for producers who have a TDA pesticide applicator license. Speakers for the seminar include Dr. Brent Bean, extension agronomist from Amarillo; Dr. Paul Baumann, extension weed specialist from College Station and Dr. Chris Sansone, extension entomologist from San Angelo. Bean will address silage production and focus on varieties, seed bed preparation, seeding rates, water requirements and other management practices. Bean will also address fertility of corn and forage sorghums and the role manure plays in the fertility program. Baumann will discuss weed management in corn and forage sorghum production, and Sansone will provide information on insect management. There is no charge to attend the seminar. A sponsored meal at noon will be provided. Directions: Comanche Community Center is located at 100 Indian Creek Drive, Comanche. Heading west on US Hwy 377/67 you will go to the west side of Comanche. Travel over the overpass and Indian Creek Drive is immediately on the left and the Center is the building on the left. For more information contact the Comanche County, Texas AgriLife Extension office at 325-356-2539 or w-weems@tamu.edu . Individuals with disabilities who require an auxiliary aid, service or accommodation in order to participate in this program are encouraged to contact Texas AgriLife Extension Service by Jan. 29, to determine how accommodation can be made. |
||
|
|
||
|
New Year Means New Regulation for Texas Cattle |
||
|
Thinking about selling, leasing, bartering or even giving away a breeding bull? On January 1, Texas bulls that undergo a change of ownership (except to slaughter) must be either certified as a virgin bull or be tested first for cattle trichomoniasis, a protozoal disease that can cause cows to abort very early in pregnancy. Infected bulls carry the microscopic “bug” that causes trichomoniasis without any signs and can transmit the single-celled protozoa to cows during breeding. “There is no effective treatment for bulls, and once infected, they can continue to spread trichomoniasis when they breed,” said Dr. Dee Ellis, who took over his position on Jan. 1, 2010 as the new state veterinarian and head of the Texas Animal Health Commission (TAHC). “Infected cows may clear the infection, but only if they are given rest from breeding for 120-150 days—an expensive option, as a calf crop will be missed. A vaccine also is available to help in the management of infected cows, but it will not prevent infection,” Ellis said. The country’s western states have long-standing cattle trichomoniasis regulations. About two years ago, the Texas ranching industry requested similar regulations, to protect against the introduction and the spread of cattle trichomoniasis, or “trich.” For months, representatives from the state’s ranching, marketing and veterinary industries worked with the TAHC to develop effective regulations to control the disease, which affects herd productivity and an operation’s bottom line. In April 2009, the TAHC enacted requirements for bulls entering Texas. In-state regulations were delayed until January 1, 2010. “For months, we have worked with the Texas cattle industry to inform producers and have participated in many meetings about cattle trichomoniasis and the regulations. More than 600 accredited private veterinarians in Texas have been certified to collect samples for trichomoniasis testing, and we are ready to implement the intrastate regulations for bulls undergoing a change of ownership in Texas,” Ellis said. The regulations will apply to bulls being sold, traded, leased or undergoing any change of ownership (except for slaughter). The regulations include three basic steps: 1.) Identify the bull. Identification is essential for matching animals with virgin bull certificates or test documents. One form of identification is needed, and it may be an official USDA ear tag, breed registry brand or tattoo, an 840 flap, bangle or an 840 radio frequency identification device. If the bull originated from another state, it may have that state’s official state of origin trichomoniasis ear tag (Texas does not have an official trich ear tag). An accredited veterinarian can apply an official USDA ear tag. 2.) Certify virgin bulls. A breeder can certify the bull as a virgin, if the animal was raised away from cows after weaning, and the bull is 24 months of age or younger. A Texas-origin bull’s virgin status may be extended to 30 months, if the virgin certificate is signed also by the breeder’s accredited veterinarian. Virgin bulls are not required to have a trichomoniasis test prior to change of ownership. Virgin bull certificates are available at no cost on the TAHC web page at http://www.tahc.state.tx.us . 3.) Test older or non-virgin bulls. Bulls older than 30 months or bulls that were maintained with cows after weaning must have a negative trichomoniasis test within 30 days prior to change of ownership. A certified, accredited veterinarian must collect the sample for testing at the Texas Veterinary Medical Diagnostic Laboratory. While awaiting test results, which usually takes about a week, the bulls must be kept away from cows. Upon receipt of the negative test results, the animal is ready for change of ownership. “Breeding bulls that haven’t been certified as virgins or tested are considered to be slaughter-only bulls,” Ellis said. “In some cases, however, buyers may want an untested bull, although they may be buying trouble. We have provisions under the regulations for untested bulls to be identified and moved under a TAHC-issued hold order and movement permit. The animal must be isolated from female cattle, and cannot be moved until it is tested within 30 days of purchase at the owner’s expense.” “In Texas, two tests are accepted. One is the Real Time Polymerase Chain Reaction test, or PCR, which looks for the DNA of the protozoa. Because only one PCR test is needed to detect infection, this may become the preferred method for producers who want to move cattle more quickly. The second acceptable test is the culture test, and it involves looking for the protozoa under a microscope. A series of three culture tests is needed, each conducted at least seven days apart,” Ellis said. “Because cattle trichomoniasis is a reportable disease, we will be notified regarding test-positive animals,” explained Ellis. “Test-positive bulls may undergo a confirmation test, provided the owner or the accredited, certified veterinarian makes the request within five days of the positive results.” Because there is no effective treatment, infected bulls must go to slaughter within 30 days of confirmation. The remaining bulls in the herd will be held, isolated from female cattle, until they undergo two consecutive negative RT-PCR tests, each conducted at least seven days apart, or three consecutive negative culture tests, with each of the tests conducted at least seven days apart. When they are confirmed negative for trichomoniasis, the bulls remaining in the herd are free to be moved or to be commingled with cows. “The cattle trichomoniasis regulations can save cattle producers a lot of money in the long run, because this disease greatly affects calf production. If you are obtaining a breeding bull, make sure the animal has been certified as a virgin or was tested—for your herd’s sake,” said Ellis. “We will be reviewing the regulations on a yearly basis with an industry working group, to ensure that the rules remain timely and effective.” Texas’ trichomoniasis entry requirements for breeding bulls is similar to the intrastate regulations, but allows out-of-state bulls to be certified as virgins only until 24 months of age. Exhibition or competition bulls may enter Texas without a trichomoniasis test, but must be kept away from female cattle. The TAHC must be contacted in advance of entry for a waiver of the test requirement to be issued on exhibition bulls. The TAHC’s cattle trichomoniasis regulations and additional information are available on the TAHC web site at: http://www.tahc.state.tx.us . |
||
|
|
||
|
DFA loses leader and good friend |
||
|
James P. “Tom” Camerlo, Jr., chairman of the board of Dairy Farmers of America, Inc. (DFA) passed away on Dec., 3, 2009, after losing a courageous battle to cancer. Camerlo had committed a lifetime of service to the global dairy industry and had served as DFA’s chairman since 2003. “Tom’s commitment to the dairy industry ran deep, and was second only to his devotion to his family,” said Rick Smith, DFA president and CEO. “The entire DFA family extends our heartfelt sympathy to the Camerlos. We share in grieving the passing of our colleague, a dear friend and a man whose lifetime commitment and leadership made an everlasting difference in the dairy industry.” A scholarship in his name, the James P. “Tom” Camerlo, Jr., Memorial Scholarship, has been established at Colorado State University to honor Tom’s legacy. Contributions in his name can be sent to the Colorado State University Foundation at P.O. Box 1870, Fort Collins, CO 80522. Checks should mention the James P. “Tom” Camerlo, Jr. Memorial Scholarship in the memo line. The Texas Dairy Review extends their sympathy to the Camerlo family. |
||
|
|
||
|
All internet content of this site
are Copyright © 2005-2010 TDR Publishing Co. All Rights Reserved. |
||
 |
