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10 CapitalPress.com June 8, 2018 Analysts expect some liquidation of U.S. beef cow herd By CAROL RYAN DUMAS Capital Press Dry weather in parts of the U.S. since last fall is like- ly to send more beef cattle to slaughter this summer, RaboResearch analysts say in their latest quarterly re- port. Cow slaughter numbers are already tracking 10 percent higher compared to 2017, and the likelihood of some level of forced liquidation during the coming grazing season is very high, they said. In the latest U.S. Drought Monitor, a total of 20 states — where 70 percent of the U.S. beef cow herd resides — were reporting some de- gree of drought stress. The eight states reporting ei- ther extreme or exceptional drought conditions across the Southwest include 34 percent of the cow herd. “Spring is the best chance of getting seasonal rains. If those rains fail to develop over the next 60 days, the risk of some degree of drought liquidation is going to occur rapidly,” the analysts said in late May. In the feeder and fed cat- tle arena, drought conditions Associated Press File Cattle lounge in pens at a feedlot near Lubbock, Texas. Dry weather is forcing cattle producers to reduce their herds in 20 states. across major wheat-grazing regions beginning last sum- mer forced the early place- ment of calves into grow yards and feedlots. The forced placements drove cattle on feed numbers substantially higher and are creating the risk of bunched marketings of fed cattle this summer. “We’re going to see a slug of fed cattle now through Au- gust,” Don Close, a RaboRe- search senior analyst, told Capital Press. Fed cattle could trade below $100 per hundred- weight in July and August, but markets could have an impressive rally after that. Fed cattle prices of $120 per hundredweight by the fourth quarter would not be out of line, he said. The aggressive place- ments from September through January pulled down the available supply of feed- er cattle outside feedlots, and placements should be at or below year-ago levels in the months ahead, he said. That will “substantially reduce fed cattle availabil- ity in late third quarter and fourth quarter,” he said. In the marketplace, live cattle futures have been un- der consistent pressure since peaking in late October and early November. “Futures have not only been under pressure due to concerns of increased beef production but also amid concerns of increasing sup- plies of competitive proteins, especially pork,” the analysts said. Futures have been trading at a discount to cash markets, from $8 to $20 per hundred- weight, Close said. “The markets have been screaming at these guys to sell cash cattle as aggressive- ly as possible,” he said. But that price difference is going to narrow and tran- sition to a point where it will encourage them to defer sales, he said. While feeder cattle pric- es have been pressured by the early placements, there’s a bright light ahead. The re- duced supplies outside feed yards should be price-sup- portive for summer and the second half of the year, the analysts said. Feed costs, however, are going to be an issue for the different industry sectors as fodder and grain prices are starting to rise. “The increased usage of hay for feeding — following dry conditions and a mod- erate to severe winter — is driving hay prices higher, making forced feeding more expensive,” the analysts said. A reduction in corn acres and a late spring that delayed planting have also caused feed grain prices to move higher, they said. Idaho Power irrigation rates drop in Idaho, rise in Oregon By BRAD CARLSON Capital Press Idaho Power Co. on June 1 decreased rates by about 4.25 percent for irrigation customers in Idaho, but the Boise-based company slight- ly increased rates its irrigation customers in Oregon pay. Tax reforms eased irriga- tion rates in both states. Ore- gon customers, however, will pay higher rates because of added costs that include ceas- ing two coal-fired generating operations. In Idaho, irrigation rates are dropping by 2.33 percent because of recent tax reforms and by 1.91 percent based on the annual power-cost adjust- ment, Idaho Power said in a statement. The Idaho Public Utilities Commission approved the company’s request, commis- sion spokesman Matt Evans said. Idaho Power each year applies to the commission for a power-cost adjustment reflecting cost increases or savings the company realized in providing power to cus- tomers. Company spokesman Jordan Rodriguez said the adjustment takes into account factors such as coal and natu- ral gas prices, and the amount of water available for gener- ating hydroelectric power — the company’s most cost-ef- fective source. If the company has more water available for hydroelectric power genera- tion, it can spend less on other sources. Federal and state tax re- forms that generated cost savings for Idaho Power prompted the company and commission to settle on a method by which the com- pany shares those savings with customers. The meth- od, reflected in the new rate package the commission ap- proved, includes a reduction in base rates and a cost offset, the commission said in a re- lease. Idaho Power is decreasing rates by 7.04 percent overall in Idaho for residential cus- tomers and by 6.63 percent for small, general-service customers. Other decreas- es are 4.48 percent for large general service customers and 5.52 percent for large power users. The annual fixed-cost ad- justment accounted for over half the reduction for residen- tial customers and just over half for small general-service customers — 3.6 and 3.73 per- centage points, respectively. Evans said irrigation, large power and large general-ser- vice users are not subject to the fixed-cost adjustment be- cause the commission hasn’t applied it to them to date. And these users have access to other programs that can help Idaho Power manage its costs, such as an incentive for irrigators to have pumps shut off during periods of peak de- mand, he said. Idaho Power said its irri- gation customers in Oregon would see a combined 2.49 percent increase in rates. For its Oregon irrigation customers, a 2.69 percent rate decrease due to tax reform was offset by a 3.51 percent increase associated with early cessation of coal-fired opera- tions at the Boardman, Ore., and North Valmy, Nev., power plants — lower than for other customer classes — and a 1.68 percent increase for the annual power-cost update and pow- er-cost adjustment combined, Idaho Power said. John Deere Dealers See one of these dealers for a demonstration 23-1/102 Long-time ag pilot dies in Oklahoma accident By CRAIG REED For the Capital Press Andy Deterding, a crop duster pilot who flew for sever- al decades over many acres of southwestern Oregon, died in a plane accident on May 30. Deterding, 57, was flying and spraying a herbicide over a field just north of El Reno, Okla., when he made a turn, hit a guy wire on a cell tower and crashed to the ground. He was the only person in the plane and was pro- nounced dead at the scene. His busi- Andy ness, Andy De- Deterding terding Ag Avi- ation, is based in Pond Creek, Okla. However, for over 30 years, he had flown seed and fertilizer onto hillside pastures in Douglas and Coos counties, seed onto Bureau of Land Management ground that had been burned and lime onto some Oregon Christmas tree plantations. Deterding worked in Oregon in August, Septem- ber, October and early Novem- ber. Ranchers who worked with him remembered him as both a friend and a professional pilot. “The thing I want people to know about Andy is that he was more than just a pilot who flew fertilizer on your fields, he became a friend,” said George Sandberg, a Roseburg, Ore., area rancher and president of the Douglas County Farmers Cooperative’s board of direc- tors. “This is a tragedy, a great loss.” The co-op coordinated the delivery of seed and fertilizer with Deterding’s flying sched- ule on the different ranches when he came to Douglas County. “Everybody wanted Andy when the first rains would come late in the summer,” said Mel- vin Burke, the co-op’s general manager. “It was a tradition for him to come here. His arrival helped kick off the fall season. When you heard Andy flying, you knew the grass was begin- ning to grow.” Burke said Deterding un- derstood the importance of get- ting the product on the ground because growing grass for the livestock meant not having to buy hay to feed. “For Andy, it was not just about putting fertilizer down by aerial application on the hillsides,” Burke said. “It was about timing for optimal grass growth before the fall rains. He did his best to have the fertil- izer and seed down in time for optimal growth before the fall weather turned too cold. “Secondly, the fertilizer was there and in place when the spring weather returned the next year,” Burke explained. “He could cover areas with that plane that people couldn’t get with ground equipment.” Burke estimated Deterding flew several tons of fertilizer and seed onto hillside pastures in Douglas County each year. Dan Dawson, another Douglas County rancher, was a small boy when he first met Deterding about 30 years ago. “You couldn’t meet a better guy,” Dawson said. “He was a good-hearted, nice guy. “He flew seed and fertilizer for all of us around here,” Daw- son added. “We couldn’t have had anyone better. He knew every ranch in this area. There are so many valleys here and he knew the air currents in every one of them. You didn’t have to tell him twice what you wanted done.” David and Jill Kennedy, who ranch in the Oakland, Ore., area, had Deterding over to their house for many dinners when he was in Douglas Coun- ty. On two occasions, he had Thanksgiving dinner with the Kennedys because rainy weath- er in mid-November prevented him from flying home. “We’re all just very fond of Andy,” said Jill Kennedy. “He was always just a happy guy. When he laughed, his whole body laughed.”
