President's Message
Helping Today’s Producers In a Changing Industry

by R. Scott Stuart, NLPA President & CEO

This past year has been full of interesting developments. Now more than ever, livestock producers have to think beyond the fencepost to keep their operations in good form. Outside factors are having heavy impacts on today’s producers, including export markets, rising input costs and the fickle ethanol industry in addition to typical livestock-related issues such as animal identification and a looming farm bill.

Ethanol Industry Impacts

In 2007 livestock producers found themselves preoccupied with energy. Energy in regard to rising fuel costs, impacting many facets of their operations, and in regard to ethanol, the hot topic of the year. With mixed feelings producers watched the ethanol industry reach new heights in 2007, with predictions of corn prices reaching and stabilizing at $4 per bushel.

While it is fortunate to see our country make an effort to increase its ability to provide its own energy, the immediate impact on corn supplies and prices, and the wave of price hikes in other feedstuffs, has many livestock producers scrambling to find cost-efficient feed sources for their livestock.
Export Markets

The repercussions of one “mad cow” back in 2003 are still being felt today. Our country is still working to regain its markets in Japan and South Korea, while protecting itself from any potential threats from Canada.

This fall the United States opened the border to allow Canadian cattle born on or after March 1, 1999 and beef products from cattle of any age. R-CALF continues to file lawsuits against the border opening and several livestock auctions along the northern U.S. border are joining the fight.

The United States continued its struggle to open beef trade with Japan. Even though the World Health Organization has classified the United States as a controlled risk region for bovine spongiform encephalopathy, Japan has maintained its closed status.

Farm Bill Legislation

At the end of 2007, the Senate had passed the Farm Bill, waiting for the President’s signature. This version of the Farm Bill includes a ban on packer ownership of livestock and changes to the country-of-origin-labeling law, which is currently scheduled to become mandatory in September 2008.

Animal Identification

Animal identification was one issue that seemed to hit a stride of greater acceptance this year. The U.S. Department of Agriculture's Animal and Plant Health Inspection Service reported a substantial increase this year in the number of premises registered as a part of the National Animal Identification System (NAIS), with 10 states reaching the 50 percent goal of production ag premises registered in the system.

NLPA continues to represent livestock markets in the development of NAIS to ensure that these vital transaction points are properly addressed as the system is further defined.

NLPA Advantage®

When we ask our board members what they value the most about membership in NLPA, they all agree that it is the forum NLPA provided for them to meet and discuss the challenges facing their businesses. From the past few years of discussion, our members came to realize that they all have certain service offerings that can be beneficial to other members and their patrons. NLPA Advantage® the culmination of creative efforts of the NLPA staff and board.

NLPA Advantage® is a collection of services established to help address the specific needs of livestock producers. Many of these services have been a part of NLPA for many years, such as risk management and our relationship with Mutual of Omaha. Others are new and have been added to help NLPA offer a more complete menu of services for our members and their patrons.

NLPA officially launched the NLPA Advantage® program and its web site in September and continues to look at ways to expand its services.

Our Organization

NLPA continues its efforts to become a more self-sustaining organization. The NLPA Advantage® program is certainly a tangible stride toward that goal.

NLPA will also move its offices in the spring. Our organization is moving from a lease situation to purchasing property in a desirable area north of Colorado Springs.

I am always amazed at the dedication and creativity displayed by the NLPA staff and the leadership and determination of our board. Our small staff not only maintains regular business duties, but also manages to meet the demands of the Beefmobile project, the Sheep & Goat Fund and now the NLPA Advantage® program.

As CEO I could not ask for a more supportive board of directors. They have seen this organization through good and bad and haven’t buckled to a challenge yet. I look forward to seeing what great things develop in the year ahead.