Ag Alert May 26, 2021

Speakers outline drought alternatives for ranchers

environmental review. One program the USDA officials said to consider for 2022 is the Noninsured Crop AssistanceProgram,whichallowsranchers to buy insurance for crops, such as forage, not customarily coveredby federal crop in- suranceprograms. It istoolatetoobtainthis coverage for 2021; the deadline to apply to purchasecoverage fornext year isSept. 1. The extremely low seasonal precip- itation in the foothills, following a hot- ter-than-normal summer, has advanced the day when forage will run out by at least 30 days, andhas dried creeks usually counted on to provide stockwater.

But asbadas thisdrought is,Maconsaid ranchers have seen and survivedworse in the not-too-distant past. Although mid-May rainfall in Auburn stood at just 19 inches, compared to an av- erageof30inches,hesaidhehasseenworse. “In my experience, 2014 was one of the worst droughts I’ve ever seen; much of California was in D4,” Macon said. “If you look at the recent map, it’s not quite as bad—but things are very dry and have been very dry all spring.” ( Bo b J o hn s o n i s a r e p o r t e r i n Sacramento. He may be contacted at bjohn11135@gmail.com.) pectedtorespondtofavorable2021returns andanticipatedcontinued-strongporkde- mandfromeconomicexpansionnextyear.” Production of lamb and mutton could drop 3% next year, the report estimated, calling that “in linewith recent trends.” In the poultry sector, USDA forecast strong consumer demand for bothbroilers andturkeys,butsaidhigherfeedcostswould likely constrainproduction growth inboth sectors to about 1%. Similarly, forecasters said, feed costswill likely limit egg produc- tion toan increaseof a littlemore than1%. The USDA report also forecast a 1% increase in the nation’smilk production, as higher expected yield per cow “more than offsets” an expected reduction in milk cow numbers.

ByBob Johnson The U.S. Department of Agriculture of- fers numerous programs to help ranch- ers faced with tough choices because the drought leaves themwith less feed than they need to support their animals. There are federal programs adminis- tered through local USDA Farm Services Agencyoffices that reimburse ranchers for part of the cost for losing animals or hav- ing to sell themat a loss; for improving or digging irrigationditches orwells; hauling drinking water to stock; or, for next year, crop insurance on forage. But the most important tactic could be adjustmentsof theranchingoperationtoac- count fordrought-related forage shortages. “If we’re doing this to save feed pro- actively, it is critical to think about what your forage system looks like for the next 12months,” saidDanMacon, University of CaliforniaCooperativeExtension livestock andnatural resourcesfarmadvisor inPlacer and Sutter-Yuba counties. “Is there a prob- lemwiththequantityorqualityof forage,or withstockwater?What isyourcriticaldate? Whendoyouneed tomake adecision?” Macon, who operates a foothills sheep operation in addition to serving as a farm advisor, made his remarks during a mid- May webcast for ranchers on drought management and drought programs. District conservationist ChrisRobbins of theUSDANatural ResourcesConservation Service office in Auburn, along with Ryan Jones andCaleb Jacksonof theFSAoffice in ElkGrove,discusseddisaster-reliefprograms availabletoranchers.Maconofferedinsight learned fromhisownsheepoperation. “Partial budgeting lets you look at what youcando to increaserevenueordecrease expenses,” Macon advised. “In our 100- eweoperation, ifwehave enough feedbut needmore protein for 30 days, it will cost around $337.” Although the operation might be able to absorb that cost andmove on, he said, a two-month feed shortagewould require more dramatic action. “If we’re going to run out of feed and need 60 days’ worth, we’ve got to sell live- stock, wean early or do something to get out of that hole,” he said, calculating that loss as well more than $3,000.

79720 Under the Emergency Conservation Program, farmers and ranchers can re- ceive cost share help for rehabilitating, conservingor constructing structures that supplyadditionalwater. Thisprogramcan provide between 50% and 90% of the cost needed for digging or deepening wells or ditches, although a well may involve an What you see: The Emergency Livestock Assistance Programr imburses ranchers for avariety of drought-relatedexpenses, including the cost of haulingdrinkingwater to locations where the animals feed. What we see: Theprogramis open to individualswho had adjusted gross income of less than $900,000 in recent years, or who derive at least 75% of their adjusted gross income from farming or ranching. TheUSDAalsooffers aLivestockForage Program to reimburse ranchers who have both livestock and non-irrigated forage acreage that suffered losses due to disas- ters such as the current drought. What you see: Additional help can come through the Coronavirus Food Assistance Program, which is also available through the FSA; it reimburses farmers and ranchers of com- modities that sufferedmarket disruptions due to the pandemic. “This is Coronavirus Food Assistance Prog ram 2 ; i f you app l i ed unde r Coronavirus Food Assistance Program1, you can get this too,” Jackson said. Thisprogramcoversawiderangeof ani- mals, frombeef todairycows, pigs tochick- ens, sheepandgoats, andalpacas tollamas. Reimbursement for the loss fromselling ananimal injuredor at below-market pric- es is also available through the FSA. Ranchers can be reimbursed for part of the cost of losses that come as a result of drought-related difficulties. There are enough different programs tailored to specific situations that the best advice is to contact the local FSA office as soon as possible, tell them how the drought is affecting the ranching business and ask which programs are available to help. Under the USDA Livestock Indemnity Program, if animals die because of weath- er-related events, including drought, a ranchermaybe reimbursed75%of thena- tional average fairmarket value, according to Jones fromthe FSA.

USDA forecasts meat supplies Expect modest movement in supplies of redmeat andpoultry next year, accord- ing toa forecast fromtheU.S. Department of Agriculture.

What we see: The report forecast beef production to decline about 2% next year, citing drought conditions that could quicken the pace of cattle slaughter in the second half of this year, thereby reducing cattle supplies in 2022. Porkproductionmay rise about 1%next year, USDA said, “as hog producers are ex- In a “Livestock, Dairy, and Poultry Outlook” report issued last week, the USDA Economic Research Service esti- mated overall red meat and poultry pro- ductionwould increase by less than 1% in 2022, compared to 2021.

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May 26, 2021 Ag Alert 15

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