President's Message

I hope all of you are having a great and productive summer putting up hay and watching the calves grow. Things have sure been busy in my neck of the woods. Haying has gone well, once we finally got going. Our swather made it almost three-quarters of the way around the first field when it had what I considered to be its first major breakdown of the season. It ended up being not too bad, but to a cowboy who really doesn’t care much for wrenches or grease, it looked pretty bad at the time. I would still like to engage the swather engineer in a little discussion about the design of the machine and his or her reasons for positioning that sprocket in the deepest, darkest part of the header with no easy way to replace it. Finally, after enough blood, sweat, busted knuckles and cuss words, it all came together and has been running great since.

Recently, I was a speaker on a nationwide beef industry panel and was asked to give my perspective about why the nation’s ranchers have not started to rebuild their herds. Nationally, the cattle herd is the smallest it has been in fifty years.

It kind of surprised me that people in the beef industry are even wondering why. The first obvious answer is Mother Nature. Until lately, dry conditions have plagued many parts of the United States, not just the Northern Plains. Not many people are willing to increase their numbers when they are worried about how they are going to feed the cattle they already own. As conditions improve, more cattlemen will be willing to grow their herds.

The biggest obstacle facing ranchers today is simply the uncertainty of what the future holds. In the last few years we have seen a dramatic increase in the cost of inputs across the nation.

Anything that a producer needs to buy – fuel, feed, insurance, machinery parts, vet supplies, etc. – is more expensive.

At the same time, the market for what we produce has been very volatile. The cattle market is showing strength, but some people and lenders seem to have the nagging sense that it may not stay at a high level.

Fluctuations in taxes and interest rates on borrowed money are even more uncertainties contributing to the liquidation. Ranchers who are starting to get a little age on them still remember the 18 percent interest rates of the 1980s and have been sure to tell their children what it was like in those trying times.

I don’t want to sound pessimistic, because I’m not, but it isn’t hard to understand why folks are hesitant to take on a lot more debt at the present time.

In some ways, it makes me more optimistic for the future. The nation’s cow herd will start to expand, but it will be a slow process that will take some time.

The short-term looks to be very good for the cow-calf sector.

In the long-term, it is important for the entire beef industry to be strong. Each segment depends on the others to remain viable. Building and protecting beef demand is the key for this to be possible. All parties involved with raising cattle or selling beef need to work very hard to make sure that demand for our product continues to get stronger.

You can take an active role in that process.

It is time to start making plans for the 81st Annual Convention & Trade Show. As members, this is your opportunity to suggest and debate policies that will help shape the beef industry in North Dakota for generations to come. Set for Sept. 23-25 in Minot, the Annual Convention & Trade Show is sure to be a very informative and enjoyable few days.

While comments and feedback are welcome at any time of the year, the convention is truly your platform to shape the direction of your association and industry.

Come, enjoy yourself and help to make a difference in the future of the cattle industry.