11/14/07 Cattlemen's economist on 30 month and over rule

Washington Ag November 14, 2007 Assuming USDA's minimal risk rule II takes effect November 19th as planned, cattle over 30 months of age will be allowed in to the U.S. from Canada for the first time since BSE was found in Canada in 2003. A lot of cattlemen are concerned about the impact on cull cow prices, but Greg Doud, chief economist for the National Cattlemen's Beef Association, says the biggest impact of the rule will be on feeder cattle movement from Canada to the U.S. Doud: "We've seen in the last few weeks a lot of feeder cattle movement into the U.S. The interesting thing about that movement is these cattle are not changing hands. The are cattle that continue to be owned by Canadians and are being custom fed in Nebraska, Kansas, and even Idaho, Washington state feedlots. And that is simply because of the exchange rate." Which Doud says makes the cost of gain in Canada now approaching about $1 a pound.. He says in Nebraska you can put the same pound on because of distiller's grain, for about 60 cents. Doud: "If you are going to own that steer and you want to retain that ownership and add that value it is pretty simple where you are going to haul him to do it." Doud was at the recent Washington Cattlemen's Association annual convention. Both the WCA and the Cattle Producers of Washington want to at least see implementation of the new rule delayed until early next year to reduce impacts on the cull cow market. I'm Bob Hoff.