2006 Releases

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) is enthusiastic about Senator Thune’s (R-SD) recent appointment to the Senate Agricultural Committee.

According to SDSGA Past President Ken Knuppe, Buffalo Gap, S.D., the SDSGA enjoys a good working relationship with Senator Thune and his staff. “The Stockgrowers appreciate Senator Thune’s understanding of the wide variety of cattle industry issues that we bring to the table. We are fortunate to be able to sit down with Senator Thune and visit about property rights, animal health, country of origin labeling, captive supply reform and international trade – and he recognizes the importance of each of those issues, plus many more.”

According to Knuppe, Thune has shown outstanding leadership on the prairie dog issue – maintaining communication between the Stockgrowers and federal land agencies in a continued effort to control the prairie dog infestation.

But Thune realizes that cattle market issues are equally important, says Knuppe, and he has been an outspoken advocate for mandatory country of origin labeling and other competition issues needed to improve profitability for cattle ranchers.

Knuppe says that Senator Thune, along with Senator Johnson (D-SD) and Congresswoman Herseth, (D-SD) who serves on the House Ag Committee make a powerful team representing South Dakota’s cattle industry. This unity will be especially important, Knuppe says, as the Stockgrowers work to implement improved ag policy through the 2007 Farm Bill.

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) reminds ranchers to carefully consider USDA’s updated animal id plan, which may be just as unfriendly to independent producers as the previous plan documents.

According to SDSGA Animal ID Committee Chairman Kenny Fox , Belvidere , S.D. , many producers have recently read or heard USDA’s latest public relations message – a guarantee that that animal id will be voluntary at the federal level. “What USDA isn’t telling producers is this: the states are being asked to carry out the original wishes of USDA by implementing statewide mandatory animal id programs.” Fox says that USDA sent the “cooperative agreements” to the state animal health departments in late November and asked that they be signed and returned by December 18, 2006.

So in essence, Fox says, very little has changed. “USDA still hopes to obtain premise registration from 100% of producers. They still hope to trace the movement of every head of livestock. But now they want the states to mandate the program.”

SDSGA member Rick Vanderway , Valentine, Neb. , is also concerned about the feds’ push for animal id. “It looks to me like they are telling the states to make it mandatory in their state.” But just how can USDA enforce it? “I don’t know for sure but they’re probably saying ‘if you come up with a plan by December 18^th, we’ve got more funding for you.’” says Vanderway.

According to Vanderway, USDA is focused on registering premises. “The question nobody seems to be able to answer is this: what’s the significance of registering your ranch with a premise registration number? I think when you’re doing that you’re giving them authority over your property. If they already had that authority, this would be a done deal.”

Producers who have registered for premise id numbers can un-register, if they so choose, said Fox. “I’ve talked to several ranchers who registered for premise numbers before they really knew what USDA had planned. Now some of those folks have decided that they don’t want to be registered – they need to contact the S.D. Animal Industry Board to un-register their premise.”

Fox said that the SDSGA is not opposed to animal id. “We support animal id – our organization oversees the state brand inspection program and we strongly encourage everyone to brand their cattle. Brand inspection has been proven throughout history to be a practical and efficient method of tracking cattle. It works and it’s very inexpensive – that’s the kind of animal id program we favor.” He adds that the Stockgrowers do not support a mandatory program of any kind – it is not currently mandatory to brand livestock, even in the brand area. “Brand inspection is mandatory, which provides a paper trail of the whereabouts of cattle, horses and mules. But ranchers are not required to brand their cattle.” However, most ranchers in western S.D. brand their cattle to prove ownership which helps prevent theft, says Fox.

“The Stockgrowers plan to stay involved in this issue until it is resolved,” says Fox. “Our members have approved policy that requests that all imported live cattle shall be permanently marked with a hot iron brand to determine the country of origin. For the health of the U.S. cattle herd, tracking foreign cattle should be a high priority with USDA.”

Fox urges producers to read the USDA plan documents online or to contact the Stockgrowers for a copy.

The South Dakota Stockgrowers Association (SDSGA) encourages state legislators as well as local cattle producers to join them for industry discussions in preparation for the 2007 legislative session. According to SDSGA Past President and Lobbyist Ken Knuppe , Buffalo Gap, S.D., the Stockgrowers enjoy meeting with legislators prior to session, to get acquainted and update them regarding cattle industry issues.

The Stockgrowers ask ranchers and legislators to take note of a new date for the meeting at Buffalo Lake Resort – December 11, 2006, instead of December 13, 2006. All other meetings will be as previously reported.

· NOTE DATE CHANGE: December 11 – 6:00 pm, Buffalo Lake Resort (near Sisseton)

· December 12 – Noon, First National Bank, Mitchell ( 500 E.

Norway

Ave. - N. of Interstate, W. of McDonalds- please park on street instead of parking lot.)

Several members of the South Dakota Stockgrowers Association (SDSGA) Board of Directors visited with newly appointed Undersecretary for Ag Marketing and Regulatory Services, Bruce Knight, a South Dakota native on Thursday, November 30, 2006 in Pierre , S.D.

According to SDSGA President Rick Fox , Hermosa , S.D. , the group discussed the Canadian border, BSE, the checkoff, cattle prices, country of origin labeling, government acquisition of land and animal id.

“We enjoyed the chance to get together with a fellow S.D. cattle producer to discuss industry issues. We told Undersecretary Knight that the most important issue in cattle country is the drop in the market,” Fox said. “We reminded him that beef and cattle imports are nearly back to pre-BSE levels, and that the cattle market reflects that steady increase. Statistics show that U.S. cattle numbers are down – this should correlate to higher cattle prices, but packers are meeting beef demand by sourcing lower priced cattle and beef from other countries in order to avoid paying higher cattle prices in the U.S. ”

Fox said they also talked about the importance of fair trade. “We reminded Undersecretary Knight that U.S. cattle producers enjoyed the highest cattle prices in history while the beef export market was virtually non-existent, mainly because we weren’t competing with as much imported product. While access into foreign countries is certainly worth striving for, creating a fair trade policy that controls imports will do more to improve cattle prices than rebuilding our export markets.”

SDSGA District 8 Director, Bill Kluck, Mud Butte, S.D., mentioned that trust in the USDA has been lost. “USDA’s continued efforts to lower import requirements and allow the importation of beef and cattle that do not meet our standards for health and safety has caused a lot of distrust in cattle country. We don’t feel like USDA is working for the ag production sector anymore. Sometimes it seems like USDA is more focused on helping the large agribusiness companies than the individual producer.”

According to Fox, one way USDA can regain some trust with producers is to implement country of origin labeling in a workable manner. “We were pleased to hear that Undersecretary Knight intends to implement country of origin labeling on schedule. We also appreciated his concern with ensuring that our borders are safeguarded to prevent the entrance of animal disease,” said Fox. “The Stockgrowers agree – and we will continue to advocate for USDA’s policy of disease prevention at the borders.”

The Stockgrowers also explained to Undersecretary Knight that they had been denied any appointees to the Cattlemen’s Beef Board, even though the Stockgrowers were one of five organizations who had jointly submitted several qualified names.

Mr. Knight told the Stockgrowers that he hopes for an animal id program that will track group lots of cattle using brand inspection as one method.

The South Dakota Stockgrowers Association (SDSGA) encourages state legislators as well as local cattle producers to join them for industry discussions in preparation for the 2007 legislative session. According to SDSGA Past President and Lobbyist Ken Knuppe, Buffalo Gap, S.D., the Stockgrowers enjoy meeting with legislators prior to session, to get acquainted and update them regarding cattle industry issues.

“We certainly encourage all legislators to mark their calendars and plan to attend one of our open house events – they will provide a relaxed atmosphere where we can get to know one another and we’ll do our best to answer any questions they may have about the state’s largest industry – the cattle industry,” said Knuppe. “We hope local ranchers, feeders and farmers will join us as well. These meetings are always a good chance to hear what cattle producers around the state are thinking and to let them know what the Stockgrowers have been up to.”

Knuppe said they will plan to discuss water rights, property rights, property taxes, country of origin labeling, the brand inspection program, prairie dog management and other issues affecting profitability in the cattle business.

· December 12 – Noon, First National Bank, Mitchell ( 500 E.

Norway

Ave. - N. of Interstate, W. of McDonalds- please park on street instead of parking lot.)

The South Dakota Stockgrowers Association (SDSGA) and local ranchers discussed a number of key issues during their Quarterly Meeting at the Wrangler Inn, in Mobridge , S.D. on November 16, 2006.

According to District 6 Director, Lester Longwood, Lemmon , S.D. , the meeting was well attended by local ranchers as well as members from across the state.

The Federal Lands Committee talked about a proposed government land acquisition that would add about 10,000 acres currently in private ownership to the Badlands National Park in south of Wall, S.D. Longwood, who chaired the meeting, says that the committee will accept input from members before submitting comments reflecting a Stockgrowers’ long-held policy. “The Stockgowers’ position is that no net gain of government owned or managed property should occur. If the proposed land purchase goes through, we strongly urge that an equal amount of government land be sold to ensure that privately held land is not being reduced.” Longwood encouraged all members to contact the SDSGA office or Federal Lands Committee Chairman Mark Tubbs, Edgemont , S.D. , or himself if they wish to contribute to the Stockgrowers’ comments.

Members of the Marketing Committee were pleased that Allen Walth, Glenham , S.D. , a new member of the Cattlemen’s Beef Board (CBB) took the time to visit with the committee about the national beef checkoff. “It’s been at least five years since any of South Dakota’s CBB members has attended a Stockgrowers’ meeting,” said SDSGA Vice President, Larry Nelson, Buffalo, S.D. “It was great to see Allen there, and to have the chance to share our thoughts with him in hopes that he will carry our message to the national level. All cattle producers pay the checkoff so it’s important that all cattle producers have a voice in the checkoff. The only way to ensure that is for our four South Dakota CBB representatives to communicate regularly with as many ranchers as they can – Stockgrowers’ meetings are the ideal place to visit.”

R-CALF CEO Bill Bullard, Billings , S.D. , addressed the dinner crowd, urging folks to communicate with their congressmen and senators as well as USDA to urge for implementation of mandatory country of origin labeling in 2007.

According to Nelson, the Stockgrowers will hold their next Quarterly Meeting along with a Legislative Mixer in Pierre , S.D. , on February 13-14, 2007.

The South Dakota Stockgrowers Association (SDSGA) is pleased to see that, after meeting with the Organization for Competitive Markets, (OCM) the U.S. Department of Justice has issued a “second request” for information to Smithfield Foods, Inc., and Premium Standard Farms, Inc. (PSF) regarding the proposed merger of the two companies. The merger will now be delayed at least until 30 days after both companies “substantially comply” with the request for more information, according to an OCM news release.

SDSGA Marketing Committee Chairman, Bob Fortune , Belvidere , S.D. , says the Stockgrowers are optimistic that the Dept. of Justice will thoroughly review all of the facts of the merger to determine whether or not it would give too much market control to one entity. “Even though this would primarily affect the hog market in the short term, the Stockgrowers believe business monopolies create downward pressure on the open market. Whether we are talking hogs or cattle, the model is the same. We are concerned that if this merger is allowed, it will pave the road for additional concentration in the beef packing industry too.”

Fortune said SDSGA commends OCM for their work on this issue. “We appreciate OCM for stepping in to educate the Dept. of Justice. Clearly OCM is working to improve competition for independent hog producers. The SDSGA hopes to do the same for our members – independent cattle producers.”

The South Dakota Stockgrowers Association (SDSGA) encourages local cattle producers to make plans to attend the one-day SDSGA November Quarterly Meeting in Mobridge , S.D. , on November 16, 2006, at the Wrangler Inn.

According to SDSGA District 15 Director Dennis Fisher , Sisseton, S.D., committee meetings during the day will address animal id, animal health, property rights, brand and theft, trade and marketing issues. Registration begins at 8:00 am with the Ag and Natural Resources Committee meeting immediately after.

There are more committee meetings folks should plan to attend earlier in the day, says Fisher. “The Wildlife and Federal Lands Committees are scheduled to meet at 9:00 am, then the Brand and Theft Committee will meet at 10:00 am to discuss holds that need to be addressed.” According to Fisher, the Education/Taxation/Legislation Committee will discuss their business at 11:00 am.

Lunch will be served at noon, followed by Polly Vandervorst’s western poetry, then the Trade and Marketing committees meet afterward.

S.D. Animal Industry Board Veterinarian Dr. Holland and SDSU Vet Sciences Department Head Dr. Zeman will address the Animal Health and Animal ID committees at 3:30 pm.

Featured speaker, R-CALF CEO Bill Bullard, Billings , Mont. , will speak after a 6:00 pm dinner. Bullard will update the crowd on the latest issues R-CALF

USA

has dealt with, including litigation and legislation.

Fisher points out that all meetings are open to the public and that both members and non-members of the Stockgrowers are urged to attend. He asks that folks call Carrie Stadheim at 605-342-0429 if they plan to attend, to help with meal preparation.

The Stockgrowers appreciate the following local businesses for their sponsorship of the meeting: Dacotah Bank, Farm Credit Services of America, Herreid Livestock Auction Inc., McLaughlin Livestock Auction, Inc., Mobridge Livestock Market Inc., Premier Equipment, Real-Tuff Manufacturing, Schering-Plough Animal Health, Wells Fargo Bank and Western Rancher.

The South Dakota Stockgrowers Association (SDSGA) hopes local cattle producers will join them to discuss the latest cattle industry issues during an Area Meeting in Highmore , S.D. on November 15, 2006.

According to SDSGA District 16 Director Marvin Jessen, Holabird, S.D., the meeting will be held at the Highmore auditorium at 6:30 pm central time. Refreshments will be served by the Harrold Steakettes. Jessen said that everyone is invited to attend – ranchers, farmers, lenders, agency representatives – the meeting is not limited to SDSGA members.

Jessen says R-CALF USA ’s Checkoff Committee Chairman Jim Hanna , Brownlee Neb. , will speak about the recent “Beef Checkoff Task Force” meetings he attended representing R-CALF.

Kenny Fox, Belvidere , S.D. , SDSGA Animal ID Committee Chairman will discuss the Stockgrowers’ animal identification policy and their efforts to maintain simple, inexpensive animal identification options for producers.

“We hold area meetings around the state to give both members and non-members the chance to catch up on the latest happenings in the industry,” said Jessen. “It’s always fun to catch up with friends, and even better to make a new acquaintance.”

“As ranchers, we all seem to speak the same language. We are all affected by the swings in the market, the drought and other issues that seem to be out of our control. But they are not all out of our control; we’ve learned that if we work together, we have the ability to make a difference in our industry.”

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) has given $500 scholarships to two deserving South Dakota students wishing to pursue agricultural careers.

The SDSGA scholarship committee chose Etta Balo, Whitewood, S.D., and Matt Hansen, Vale, S.D., from a large selection of well-qualified applicants to receive the scholarship. Hansen, a sophomore majoring in Agronomy hopes to return to the family farm someday. Balo, also a sophomore, carries a double major in Ag Business and Ag Education and wishes to teach agriculture and pursue ag business interests with her degree. Both students attend South Dakota State University .

Students were judged on an essay entitled “Why I want to pursue a career in Agriculture.”

According to the scholarship committee, selection was difficult because of the number of well written essays. They encouraged all applicants to apply again next year.

SDSGA President Rick Fox, Hermosa , S.D. , said that supporting youth in agriculture is high on the Stockgrowers’ priority list. “There is probably nothing more important than encouraging and educating young people about agriculture. One great way we can do that is by supporting those college students with a passion for agriculture. As we work through the Stockgrowers to build a strong cattle market and a viable trade policy, we all hope the next generation will have the opportunity to be in the cattle business.”

The SDSGA Scholarship is awarded every year to students who have completed at least one year of post high school education and who intend to work in an agricultural field. A silent auction held every year during the convention is the main source of funding for the scholarships. The South Dakota Stockgrowers Association appreciates everyone who has purchased silent auction items throughout the past several years.

Rapid City ~ Members of the South Dakota Stockgrowers Association (SDSGA) will be forever grateful to the late Helen Chenoweth Hage for her wisdom and tenacity in educating landowners of their rights.

“She will forever be our friend and hero,” said SDSGA Executive Director Carrie Stadheim, Rapid City, S.D. “She had such unusually wonderful qualities all wrapped into one great package – intelligence, drive, graciousness, a thick skin and a kind heart. Words cannot describe the greatness of the woman, or what she did to teach and inspire property owners.”

SDSGA Vice President Larry Nelson, Buffalo , S.D. , said the Stockgrowers will be forever grateful that they had the opportunity to hear Helen speak at their convention. “She was truly amazing – she had the total attention of every single person in the room as she told of the battles she and her late husband Wayne had fought with government land managers who tried numerous times to take their forage, access and water rights and their cattle. I enjoyed hearing her tell the Stockgrowers of the battles that are being won across the country for property rights owners – she reminded us that we are not alone in this war.”

Nelson said the Stockgrowers will fondly remember both Wayne and Helen Hage for their lifelong dedication to the preservation of the constitutional rights established by the nation’s forefathers.

The memorial service for Helen Chenoweth Hage will be held at 2:00 p.m. MDT, Monday, October 9, 2006, at Capital Christian Center , 2760 East Fairview, Meridian , Idaho 83642 , at the corner of Meridian Street and Fairview Avenue , Meridian , Idaho . Pastor Ken Wilde 208-888-1060 will officiate. Flowers should be sent to: Capital Christian Center , 2760 East Fairview, Meridian , Idaho 83642 .

The S.D. Brand Board voted 3-2 to approve the proposed ten cent per head brand inspection fee increase after more than 50 ranchers attended the public hearing last week, says South Dakota Stockgrowers Association (SDSGA) Finance Committee Chairman Ken Knuppe.

“It was a very unusual sight – ranchers supporting a fee increase that will directly affect their pocketbooks. It cleared up any doubt that any of the board members might have had about the opinions of the grassroots producers,” Knuppe said. “It was obvious that ranchers across the brand inspection area believe that while ten cents per head is a pretty insignificant expense, it is an important investment in the future of the brand inspection program. Several of the ranchers who testified said they would have supported an even larger increase if needed, just to ensure that the Stockgrowers were able to maintain the quality program they have managed for decades.”

Knuppe says that of the large crowd in attendance, only two spoke in opposition to the increase which was proposed by the Stockgrowers to stave off predicted losses to the brand inspection program. “Ranchers understand that cattle numbers in Western South Dakota have been dropping for several years, which means that the brand program inspects less cattle and, in turn, brings in less revenue. It’s a cut and dried issue – cattle numbers are down, expenses are up – this makes it impossible to balance the brand program’s budget on the current $.70 brand inspection fee. Ranchers understand this and they made the drive to Pierre to be sure that the Brand Board understands it too.”

According to Knuppe, neighboring states are facing the same predicament. “ Wyoming has raised their inspection fee to $1.50 and still can’t make the budget balance; Nebraska has talked of raising their fee and N.D. just raised theirs. This isn’t just a South Dakota issue – all of the states suffering from drought are finding that their cattle numbers are down.”

Knuppe said that Brand Board member Tom Conger, Buffalo Gap, S.D., made the motion to approve the fee increase, and Lyndell Peterson, Hermosa , S.D. , and Bart Blum, Reliance, S.D., voted in favor of the motion. Curt Mortensen, Ft. Pierre , S.D. , and Mark Kimball, Platte , S.D. , voted no.

“We appreciate the support from the Brand Board members who acknowledge the immediate need for the fee increase,” said Knuppe. “Their actions to help keep brand inspection viable affect the entire cattle industry – now and in the future. The Stockgrowers appreciate those Brand Board members for listening to the S.D. ranchers who have a stake in the issue - those that pay the brand inspection fee and reap the benefits of the inspection program.”

Knuppe says the increase will not be implemented until the end of the year, at the earliest. “The S.D. Legislative Rules Review Committee will have the final up or down vote on the issue in their November meeting. If they approve it, there is a standard thirty-day period before implementation can occur.” The Stockgrowers proposed raising the fee to $.80/head, the legal limit, in June of 2006.

According to Knuppe, the S.D. Brand Board has given the SDSGA notice of intent to renegotiate the contract. “As always, we intend to stand firm on our principles and only sign a contract that will allow for a quality brand inspection program for the benefit of South Dakota ’s cattle producers.”

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) encourages everyone to join them, the Independent Cattlemen of Nebraska (ICON) and R-CALF USA for a fundraising calf sale followed by a joint Area Meeting in Valentine, Neb., this Thursday, October 5, 2006.

According to calf donor and SDSGA Region 3 Vice President Kenny Fox, Belvidere, S.D., the fundraiser will be held at approximately 3:00 pm Central Time at Valentine Livestock. Fox says that minimum bids of $100 will be accepted, with $50 going to the contributor’s choice of SDSGA or ICON, and the remainder of the donation going to R-CALF

USA

“SDSGA and ICON are key organizations in this region – they help R-CALF with trade and marketing issues, animal id and important litigation. They also work on state issues that affect the cattle industry. This calf sale will be a great way to help out those organizations along with R-CALF,” said Fox.

Fox hopes everyone stays for a joint Area Meeting at the Peppermill at 7:00 pm Central Time. “A ‘dutch treat’ dinner will be available, followed by speakers Jim Hanna, R-CALF Checkoff Committee Chairman and Bill Kluck, SDSGA Animal ID Committee member.”

Independent Beef Association of North Dakota , Patrick Becker, President (701) 422-3396

Colorado Independent CattleGrowers Association, Doug Zalesky, President (970) 259-7118

Cattlemen’s associations in five states announced today their joint opposition to recent findings by the National Cattlemen’s Beef Association’s (NCBA) "Industry Wide Beef Checkoff Task Force".

The groups are the Independent Beef Association of North Dakota (I-BAND); South Dakota Stockgrowers Association (SDSGA); Colorado Independent Cattlegrower’s Association (CICA); Cattle Producers of Washington (CPOW); and Oregon Livestock Producers Association (OLPA).

The NCBA Task Force publicly reported its findings on September 8, 2006 in the form of four recommendations that included adopting a beef checkoff referendum model similar to that of soybean producers; possibly re-naming the Federation Division of NCBA to the Beef Checkoff Federation; making the checkoff program more inclusive by eliminating reference to the charter date of established national non-profit industry governed organizations; and increasing the mandatory beef checkoff to $2 per head.

The following comments can be attributed to the presidents of the five state cattlemen’s groups:

• While we agree that a complete review and overhaul of the current mandatory beef checkoff program is long overdue, a task force structured by the NCBA was not a credible method to accomplish this. NCBA is the majority contractor for beef checkoff funds and as such, should never have assumed the role of hosting and structuring a beef checkoff task force. Voting representation on the NCBA task force was structured to accomplish a predetermined outcome. None of the organizations we represent were invited to be part of the task force. The majority of the task force was comprised of affiliates and committees of NCBA and other groups closely tied to NCBA. Thus, there was no chance to seriously consider the issues so crucial to

U.S.

cattlemen.

• Opening the Beef Act and Order to the amendment process presents the cattle and beef industries with the opportunity to update a decades-old program with substantive changes that better fit the needs and desires of the industries today. This should be a thoughtful and deliberate process that is inclusive, with all cattle and beef organizations equally represented in order to present Congress with amendments that are constructed carefully and with vision. Only through a fair and transparent process will the industry arrive at the methods by which to reach these and other goals.

• Long before we ask independent cattle producers to support a 100% increase in the beef checkoff assessment fee, there are administrative issues that must be addressed. U.S. cattle producers want their checkoff program to promote

U.S.

beef, not a generic product that includes foreign imported product. It is no secret that independent cattle producers object to the relationship between the Federation of Beef Councils and NCBA. Cattle producers are seeking a distinct separation between the beef checkoff and NCBA. Ignoring this issue will not resolve a core problem with the program. Cattle producers want the CBB to function as an agent that contracts directly with vendors. Our organizations support removing the Federation of Beef Councils from under the auspices of NCBA.

• We vigorously oppose any increase in the beef checkoff assessment at this time. While we support the checkoff program and appreciate the program’s successes in building beef demand, we also recognize that while beef demand has grown, live cattle producers’ share of the retail beef dollar has contracted. This is a problematic signal about the true successes of the overall program. A thorough, unbiased analysis of the checkoff program’s economic effectiveness should be conducted before asking producers to double their input.

• We feel it would be premature to make any approach to Congress about amending the Beef Act until a true, honest and inclusive review of the beef checkoff program is conducted.

SD Stockgrowers Appreciate Ag Secretaries’ Support for Marking Imported Cattle

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) thanks the National Association of State Departments of Agriculture (NASDA) for their recent vote to remove cattle from the “J List.”

“For years the SDSGA has supported permanent marking on imported cattle, but because of paragraph ‘J’ in the 1930 Tariff Act, cattle and a few other items are exempt from the law which requires that imported products be marked with their country of origin,” said SDSGA President Rick Fox , Hermosa, S.D. Fox adds that although live cattle are exempt from the rule, beef is not exempt, and therefore is marked with its country of origin before it enters the U.S.

Fox said the SDSGA especially appreciates S.D. Secretary of Agriculture Larry Gabriel for taking a lead role in the issue. “I understand that Secretary Gabriel lobbied the other ag secretaries for support of this policy change. We appreciate him standing up for South Dakota ’s grassroots agriculture,” said Fox. “If Congress follows suit and makes the appropriate change,

U.S.

producers can feel more secure about our capabilities of traceback on foreign animals. Regarding animal health, the SDSGA believes that identifying and tracking imported animals should be top priority.”

Secretary Gabriel told the Stockgrowers that he was pleased to support removal of beef cattle from the J List. “To me, it’s a disease issue - making sure that these animals are permanently identified so that if they do come down with a disease, we have that traceback ability. If we’d had this done a few years ago, our industry would have been in a better position when the Canadian BSE cow was discovered in Washington state.”

Fox said the SDSGA looks forward to working with Secretary Gabriel to enact this law change on the national level. “Secretary Gabriel has made a big step toward our goal, now we must continue working as a team to protect the health of the

U.S.

cattle industry by ensuring that cattle are removed from the ‘J’ list.”

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) was ecstatic to learn in early September that the U.S. Forest seeks to amend their forest management plan to allow for prairie dog management on the interior of prairie dog towns in the Buffalo Gap, Oglala, and Fort Pierre National Grasslands.

The SDSGA has worked vigorously for five years, since the U.S. Fish and Wildlife Service added the prairie dog to the “warranted but precluded” list, to convince federal agencies to manage prairie dogs with grass and soil quality in mind, not just the maximum amount of prairie dogs possible. Senator John Thune (R-S.D.) has worked alongside the Stockgrowers in this endeavor, according to SDSGA Federal Lands Committee Chairman Mark Tubbs, Edgemont , S.D.

According to a recent Rapid City Journal article, the Forest Service said new effort is needed to further manage prairie dog populations to protect soil, water and vegetation resources, which it said have been overused by prairie dogs, especially during recent drought.

“We are thrilled to see some forward movement on this much-talked about issue,” said Tubbs. “It seems like we’ve gone to meetings and discussed this forever, and it is encouraging to feel as though we’ve accomplished some positive changes. We appreciate Senator Thune for sticking with us from square one, and working with his fellow senators to apply political pressure in the right places to achieve needed prairie dog control on the devastated federal lands across Western South Dakota . Managing prairie dogs in a responsible manner will provide for healthier habitat for all species, including the prairie dog. Clearly the government land management agencies, the environmental groups and the ag organizations can all agree that allowing prairie dogs to overpopulate and destroy soil and forage as they have in the Conata Basin eliminates the hope of a long term sustainable habitat for wildlife and livestock.”

According to Tubbs, the SDSGA will keep vigilant watch over the rewrite of the plan to ensure the implementation of the promised prairie dog control on the interior of prairie dog towns on the above mentioned grasslands.

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) encourages everyone to attend the S.D. Brand Board meeting and testify in regard to the proposed 10 cent brand inspection fee increase on September 27, 2006 at the Joe Foss Building in Pierre, S.D.

The meeting will begin at 10:00 am Central Time, with public testimony beginning at 1:00 pm Central time.

According to SDSGA Brand Committee Chairman and Past President Bill Hutchinson, White River , S.D. , it is vital that ranchers make an appearance at the meeting and voice their thoughts and opinions regarding the fee increase.

“Everyone can see that cattle numbers are down in Western South Dakota, and expenses are up – this equates to budgeted loss of over $80,000 for the brand inspection program,” Hutchinson said. “If ranchers in the brand inspection area hope to see the South Dakota Stockgrowers Association maintain a quality brand inspection program, it is their duty to attend the meeting to support the fee increase.”

Hutchinson says that folks can submit written comments via e-mail to Julie.Kongslien@state.sd.us prior to September 27^th.

The Joe Foss Building , the site of the upcoming meeting, is across the street from the state capitol, to the Southeast.

Spearfish ~ The South Dakota Stockgrowers Association (SDSGA) again hosted one of the best cattle industry events in the region – the SDSGA Annual Convention, September 14 and 15, 2006, in Spearfish, S.D.

Meeting-goers had the chance to hear William Perry Pendley, property rights attorney with the Mountain States Legal Foundation; former Idaho Congresswoman Helen Chenoweth-Hage; USDA APHIS Veterinarian Dr. John Clifford; S.D. state veterinarian Dr. Sam Holland ; Ray Cunio, a producer from Missouri who spoke about his opposition to the mandatory national animal id program; Jim Hanna , R-CALF USA’s Check off Committee Chairman; Don Hausle , Wealth Management Strategies; Doug Zalesky , Chairman of the R-CALF USA International Trade Committee; Steve Cutler, S.D. Farm Service Agency Director, governor’s candidate Jack Billion and House of Representatives Candidate Bruce Whalen.

Speakers representing the pros and cons of Amendment D and Amendment E could also be heard.

Representatives from all three of South Dakota ’s congressional offices attended the meeting and visited one-on-one with members throughout the 2 days.

The final evening of the convention, September 15, 2006, was dedicated to SDSGA Past President, the late Vince Crago, Spearfish, S.D. Margaret Crago, Spearfish, S.D., introduced herself and her family in attendance. Ray Pepin, Belle Fourche , S.D. , longtime friend of the Crago family, recited a poem he had composed in Vince’s memory. SDSGA President Rick Fox , Hermosa , S.D. , recalled Vince’s lifelong devotion to the cattle industry.

Brand inspectors Bob Crow, Bison; Lee Addison, Belvidere ; Dave Cuny, Buffalo Gap; Dr. John Ismay, Sturgis, were recognized the evening of September 15, 2006, for their service and devotion to the brand inspection program and the S.D. cattle industry. Chief Brand Inspector Jim Reed, Belle Fourche , S.D. , presented each of the honorees with a belt buckle inscribed with their respective brands.

SDSGA Administrative Assistant Mary Smith, Rapid City , S.D. , was recognized by the Executive Committee for five years of service to the organization. SDSGA Past President Ken Knuppe, Buffalo Gap; President Rick Fox , Vice President Larry Nelson, Buffalo , S.D. , and Executive Director Carrie Stadheim , Rapid City , S.D. , thanked Smith for her dedication and passion for the betterment of the cattle industry. According to Knuppe, Smith “works hard to make our jobs easier and she does it all with a smile.”

Stadheim noted that Smith is unusually dedicated to the ranchers she works for, and makes a point of getting to know each one personally and offering assistance to each one of them. “You can tell that she truly cares about each member of the Stockgrowers – this isn’t just a job to her, but a career that she puts her heart into.”

A live auction held after the recognition ceremony brought in about $4,300, according to Stadheim the Stockgrowers donated half of the proceeds to the Nuisance Abatement Group and will use the remainder to help defray convention expenses.

According to Fox, the convention was jam-packed with useful information from speakers and fun conversations with members of the Stockgrowers.

Fox said the membership discussed and approved several key policy measures. A sampling of new Stockgrower policy is below:

According to Fox, several outdated policies were deleted, and a few were amended to reflect changes in the industry.

Nelson said he enjoyed the diversity of the speakers, with topics ranging from pasture insurance to international trade, from property rights to ag economics. “While each speaker was informative and entertaining, my favorite part of the entire convention was the last evening, just before we finished up, when our keynote speaker Helen Chenoweth-Hage addressed the crowd. She was phenomenal,” said Nelson. “It’s easy to get stuck in a rut where it seems like the future of agriculture is quite dim, but I think we all left the meeting room, after listening to Ms. Hage, with a renewed sense of direction and purpose. She thanked SDSGA for addressing tough issues and standing up for what is right, even in the face of adversity. She encouraged us to continue down that road and to maintain our commitment to grassroots producers. She pledged to do the same, and promised that, as a team, we will make a positive difference.”

The membership unanimously re-elected Fox and Nelson to serve as President and Vice President, respectively, for a second and final one year term.

Bob Fortune , Belvidere , S.D. , and Jim Murphy , Reliance, S.D., will each carry out another five year term as directors for Districts 12 and 14, respectively.

Regional Vice Presidents Shane Kolb , Meadow, S.D.; Wayne Nelson, Langford , S.D. , and Kenny Fox, Belvidere , S.D. , will serve Regions 1, 2 and 3, respectively, for another one year term.

The South Dakota Stockgrowers Association (SDSGA) hosted an Area Meeting immediately following the S.D. Brand Board meeting in Faith, S.D. at Faith Livestock Commission Company on August 30, 2006.

About 25 ranchers from the Northwest part of the state stayed after the Brand Board meeting to discuss with the Stockgrowers the future of the brand inspection program, said SDSGA Vice President Larry Nelson , Buffalo, S.D.

Nelson said the ranchers in the crowd favored the continuation of a brand inspection program managed by the Stockgrowers. “Everyone in the meeting agreed that a ten cent per head increase is warranted with the documented drop in cattle numbers combined with rising expenses like fuel and insurance,” Nelson said. “I hope the Brand Board heeds the comments of those ranchers and implements the fee increase to help offset some of the predicted losses for this fiscal year.”

Nelson says that even if the fee increase is implemented this fall, the Stockgrowers don’t expect that the brand inspection program will take in enough in inspection fees to cover their fixed expenses, but without the increase, they expect the brand inspection program to lose over $80,000. “Hopefully the Brand Board agrees that the Stockgrowers shouldn’t be expected to subsidize the brand inspection program to that extent,” he said.

Many of the approximately 35-40 ranchers who attended the state Brand Board meeting earlier in the day spoke during the public comment period. “A strong majority of those folks support a fee increase,” said SDSGA District 1 Director, Linda Gilbert, Buffalo , S.D. “Legislators Eric Bogue , Ted Klaudt and Betty Olson were all in attendance and none of them mentioned any opposition to the increase. They seemed to acknowledge that it’s just a sign of the times, with the rising fuel prices and lower numbers of cattle. Jack Billion , candidate for governor, who also attended, said he was there to listen and learn about brand inspection and the brand board.”

Linda Gilbert says that ranchers north of Interstate 90 and west of the Missouri River are under-represented on the Brand Board. “Given the fact that the Northwestern part of South Dakota does not have a seat on the Brand Board, I hope the Brand Board members take special note of the comments they received in Faith from some of the area’s most prominent cattle men and women.”

Gilbert said she hopes ranchers from across the brand inspection area will travel to Pierre , S.D. , for the upcoming September 27, 2006 meeting of the S.D. Brand Board where an official public hearing regarding the fee increase will be held. Written comments may also be submitted to the Brand Board prior to September 27, via e-mail or regular mail.

Nelson and Gilbert both thanked Scott and Gary Vance, owners of Faith Livestock Commission Company for hosting the meetings.

William Perry Pendley , Helen Hage and USDA veterinarian Dr. John Clifford will speak

The South Dakota Stockgrowers Association (SDSGA) encourages everyone to attend the 2006 Annual Convention September 14 and 15, 2006, at the Holiday Inn Convention Center in Spearfish, S.D.

According to SDSGA President Rick Fox , Hermosa , S.D. , the convention promises to educate and entertain anyone with an interest in the rural economy.

“We have a superb lineup of speakers, focused committee meetings and as always, verified

USA

raised beef will be served,” he said. “Beefman” Tom Connelly, Belle Fourche , will provide the beef. “Whether you are a member of the Stockgrowers or not, you are welcome to stop by the convention and check things out. We’re sure you won’t leave disappointed or hungry.”

According to Fox, the first day of the convention will focus on trade and marketing issues like country of origin labeling and the international trade deficit. R-CALF USA Checkoff Committee Chairman Jim Hanna, Valentine, Neb., will meet with the Marketing committee to update folks on the discussions R-CALF has held with other ag organizations in regard to changing the checkoff program. Dr. Van Sickle, an ag economist from the University of Florida will speak to the lunch crowd. Immediately after lunch, the Education/Taxation/Legislation Committee will discuss Amendment D – the proposal to amend property assessment methods for determining property tax levels. Senator Bill Napoli , Rapid City , S.D. , and David Owen, S.D. Chamber of Commerce, Sioux Falls , S.D. , will speak on opposing sides of the issue. Questions from the audience will be answered by both speakers.

Then, Fox says, the Trade Committee will hear from Dr. Doug Zalesky, Hesperus, Colo. , Chairman of R-CALF USA’s International Trade Committee. Zalesky will discuss trade disparities between the

U.S.

and its trading partners, and also upcoming free trade agreements.

“We have a fun evening planned in Deadwood, so even if you miss the day’s committee meetings, plan to meet us at Cadillac Jack’s for prime rib followed by the evening speaker, Ray Cunio. Ray is a producer from Missouri who has researched the National Animal Identification System (NAIS) extensively, and has found numerous holes in the plan. He’ll answer questions from the crowd about any of the NAIS documents the USDA has published.” The evening festivities begin with a social hour at 5:30 pm. Fox says there will be a bus for convention-goers to ride to and from the Spearfish Holiday Inn if they choose.

SDSGA Animal ID Committee Chairman Kenny Fox hopes everyone plans to stay for the second day of the convention to hear USDA Animal and Plant Health Inspection Service (APHIS) veterinarian Dr. John Clifford speak about the NAIS.

“Animal ID is an issue that people are really concerned about and the convention will be a great chance to hear ‘straight from the horse’s mouth’ just what USDA has planned, and to let them know what we think too,” said Kenny Fox. “We can’t expect USDA to know what’s on our minds; it’s important that we keep the communication lines open and continue to educate them about our ranching heritage, lifestyle and the cattle industry in Western South Dakota .”

Kenny Fox said that S.D. State Veterinarian Dr. Sam Holland will also speak about the NAIS during the Animal ID Committee meeting, which will give folks the chance to ask questions of both government veterinarians.

Rick Fox says William Perry Pendley , a property rights attorney with the Mountain States Legal Foundation will speak to the group after lunch, followed by an ice cream social and the membership meeting.

“The members will discuss the practice of sending brand inspection information to the S.D. Beef Industry Council to aid in collecting checkoff fees. Recently, the SDSGA Board of Directors stopped sending inspection details, but it is up to the membership to decide whether or not to end it permanently,” said Fox. “There will be several other issues to discuss too, including BSE testing, checkoff reform and any other subjects the committees discuss during the convention. We always have a good, open conversation during our membership meetings – it’s important to get everything out ‘on the table’ before making a policy decision.”

According to Fox, the Stockgrowers will recognize four long time brand inspectors Friday evening, followed by a fundraiser auction of items donated by members and other supporters. Fox says one of the convention highlights will be the final evening of the convention when former Congresswoman Helen Hage will speak to the crowd. “Helen and her late husband Wayne have been allies and friends to property owners for years and we look forward to hosting Helen here in S.D. again.” Hage will also address the Ag and Natural Resources Committee earlier that day, in regard to water rights issues.

Fox urges folks to contact the Stockgrowers office at 605-342-0429 with any questions about the convention, or if they have an item to donate to the live auction.

Both governor candidates have been invited to the convention, says Fox. “We plan to give both Jack Billion and Governor Rounds a chance to answer questions from the crowd. We hope to see House candidates Representative Herseth and Bruce Whalen there too.”

Fox urges everyone to make the time to attend the convention – he says it’s an investment in the future of the cattle industry.

The South Dakota Stockgrowers Association will recognize four of their long-time brand inspectors the evening of September 15, 2006 for the dedication and service they’ve shown to the S.D. Brand Inspection Program.

During the South Dakota Stockgrowers Association Annual Convention Awards Banquet to be held in Spearfish, S.D., at the Holiday Inn Convention Center , Chief Brand Inspector Jim Reed , Belle Fourche , S.D. , will present the honorees with belt buckle inscribed with their respective brands.

Reed thanks Bob Crow, Bison, S.D., Dave Cuny, Buffalo Gap, S.D., Lee Addison, Belvidere, S.D., and John Ismay, Sturgis, S.D., for helping to make South Dakota’s brand inspection program one of the nation’s best. He will likely share a personal story or memory of each inspector.

“These inspectors work hard year in and year out, and we sure appreciate their commitment to this program,” said Reed. “If you compare the S.D. Brand Inspection program to any state, it stands tall; I credit the inspectors for the long-lived success of the program. We couldn’t do it without them, and we want them to know how grateful we are to them.”

The Brand Inspection Program benefits all brand owners, said Reed. “We held 33,021 head for proof of ownership and returned 456 head of strays just this last year. Our inspectors drive hundreds of miles each year to identify strays out in the country, with the expenses being covered by the Stockgrowers’ brand inspection program. This is a tangible benefit to brand owners whose strays are recovered.”

Reed said it takes full time, part time and local inspectors to make the program work. “We are fortunate to have ranchers, sheriffs, veterinarians and other local businessmen who take the time to work as brand inspectors. That’s what makes this program work. They know the cattle, they know the brands and they are available when their neighbors or the auction market need them.”

For tickets to the evening’s events or any other convention events, contact the South Dakota Stockgrowers Association at 605-342-0429 or carrie.sdsga@midconetwork.com.

The South Dakota Stockgrowers Association (SDSGA) asks that folks continue gathering signatures, then return the petitions opposing a mandatory national animal identification program by September 8, 2006.

SDSGA Animal ID Committee Chairman Kenny Fox, Belvidere , S.D. , says that the Stockgrowers appreciate the many individuals across the country who have been helping to collect signatures in opposition to a mandatory national animal identification program. “We never imagined that people from so many states and different industries would want to be involved, but it’s been a great way to make contact with others who believe like we do – that we don’t need the additional government intrusion of a mandated animal id program,” Fox said.

“When we first announced that we were circulating petitions, the calls literally poured in from all across the country, and they never really slowed down. It’s time, now, to collect the petitions and count signatures – we want to show USDA and Congress that the concern is large both in numbers and in geography.”

Fox urges people to send their petitions, full or partially full of signatures, to the SDSGA office at 426 St. Joseph Street , Rapid City , SD 57701 , by September 15, 2006. He says to call the office at 605-342-0429 with any questions.

The South Dakota Stockgrowers Association (SDSGA) District 7 Director Mike Maher donated a yearling for the fourth consecutive year, with proceeds of the rollover auction going for new and renewing memberships to the SDSGA and R-CALF

USA

Maher thanks Scott and Gary Vance, Faith Livestock Commission Company for their continued support of SDSGA and R-CALF, and for taking the time out of a busy sale day to host a fundraising sale and a brief speech by past R-CALF USA president, Leo McDonnell , Columbus, Mont. “Faith Livestock has always gone the extra mile to help raise awareness for cattle industry issues. Yesterday’s sale was no exception.”

McDonnell mentioned several key points to the salebarn crowd in regard to animal id, international trade and the “new” direction of the

U.S.

cattle industry.

“Remember the direction our industry was headed in the 1990s?” McDonnell asked the crowd. “Before producers like Mike Maher and many of you got together to form R-CALF, cattle producers were only hearing one side of the story. You were hearing that the export market is your key to prosperity, that free trade is way of the future, that you needed to standardize your product and become more like the poultry and hog producers. They told you that consolidation of the industry is good because it allows for economies of size and gives you more market power in the international market.

“Those principles are indicative of a social capitalistic society,” McDonnell noted. “They undermine the values that this country was founded on and the very liberties that differentiate us from other societies around the world.”

After the sale, McDonnell mentioned that today, mandatory country of origin labeling is now law, special rules protecting the US cattle industry have been included in free trade agreements, and the US International Trade Commission and Department have begun to recognize the need for more trade enhancing policy for the

cattle industry.

“Things are changing in a positive way and, although it’s been a painful process, because some of the old ‘guard’ has fought positive change, it’s been rewarding for grassroots producers to come together and effectively change the course of history.”

In regard to animal id, McDonnell said that the proposed National Animal Identification System (NAIS) would effect a fundamental loss in our country’s free enterprise values, by allowing the government to use the massive project to manage individual, privately owned businesses.

“Our industry has used our existing systems to eradicate many diseases including foot and mouth and brucellosis – other than wildlife. There is no reason to reinvent the wheel - our brand inspection programs, backtags and other state animal health traceback programs are working. The expense of this proposal is mind-boggling. We were told that COOL could cost $50/head, with no requirement of premise-to-premise tracking. Imagine the amount of data needed for the NAIS in comparison to COOL and ask yourselves how much that is going to cost the producer.”

McDonnell compared the program to a HAACP – type system where smaller producers, buyers and auction markets could easily get regulated out of business as they wouldn’t be able to afford the necessary equipment and bookkeeping mandated by USDA.

“We need to get back to what started this discussion – animal health traceback that adopts systems like brand inspection and health documents, and design a program that is flexible enough that states in the East can update their programs without creating undue expense and regulation. There needs to be a renewed sense of trust, and offering the database to a private consortium that has repeatedly lobbied against US cattle producers is not the way to gain that trust,” McDonnell said.

McDonnell flew to Kansas City , Missouri , after the sale in Faith, to represent R-CALF

USA

’s views on an “animal id” panel at the National Institute for Animal Agriculture gathering there. SDSGA District 8 Director Bill Kluck , Mud Butte, S.D., is attending the convention as well.

Over 80 ranchers and farmers heard R-CALF CEO Bill Bullard speak in Fort Sisseton, S.D., on June 13, 2006 at 6:30 p.m., after a barbecue sponsored by the South Dakota Stockgrowers Association (SDSGA) and other local businesses, says SDSGA District 15 Director Dennis Fisher , Sisseton, S.D. Fisher adds that, as the area SDSGA director, he felt privileged to host the meeting, attended by producers from all across the state.

Fisher says the barbecue and evening speaker was just one highlight of the SDSGA Quarterly Meeting held June 13-14 in historic Fort Sisseton . “All of the committee meetings were well attended because we addressed issues important to local producers. Jack Hieb addressed the issue of non-meandered waters and Danny Smiens talked about the federal inheritance tax. I visited with the Ag and Natural Resources Committee about conservation easements and strongly encouraged folks to educate themselves fully before signing one,” said Fisher.

Fisher says that local rancher Herb Allen organized a tour of his property that adjoins the Ft. Sisseton State Park . On the tour, Allen pointed out several “lakes” that have formed as the result of above average moisture since the early 1990s. Allen explained that, even though the excess water sits on private property, the state Game, Fish and Parks lobbied the legislature this year to provide public access to the private land covered with water. Producers like Allen believe that fishermen and others wishing to use the water should not be allowed access without permission from the landowner.

SDSGA Region 2 Vice President, Wayne Nelson , Langford , S.D. , who lined up speakers and accommodations for the meeting, was pleased with the attendance. “It was exciting to see so many friends and neighbors show up to learn more about the Stockgrowers. I’ve talked to many of them about the Stockgrowers in the past, but some had never had the chance to see first-hand the passion and interest that our organization has for the cattle industry. Clearly lots of them were impressed because at least nine people signed up for membership in the organization.”

According to Nelson, local SDSGA member Donna Allen prepared two meals for the crowd, and Dennis Fisher cooked for the barbecue, where verified USA Raised Beef was served.

FOR IMMEDIATE RELEASE

August 18, 2006

For More Information Contact:

Carrie Stadheim at 605-342-0429 or carrie.sdsga@midconetwork.com

www.southdakotastockgrowers.org

SD Stockgrowers a Large Part of COOL Task Force

Upon recommendation by the South Dakota Stockgrowers Association (SDSGA), a statewide country of origin labeling (COOL) task force met today in Pierre , S.D. , to study the current S.D. COOL law and determine how to implement the law.

SDSGA COOL Task Force representative Mike Maher , Isabel, S.D., said that state assistant Attorney General Diane Best presented information on the constitutional interpretation as well as enforcement issues with the current language in the law.

State veterinarian Dr. Sam Holland also spoke to the group about enforcement from the Animal Industry Board perspective, and explained that enforcement on a national level might be simpler than on the state level.

According to Maher a state mandatory country of origin labeling law has been “on the books” for decades but has never been implemented. “The law, approved by the legislature in 1964, requires that retailers label foreign beef, but for some reason, it’s just never been enforced,” says Maher. “We’re hoping to work out the kinks in the law so it can go into effect soon. The SDSGA and several other groups who attended the meeting have worked for country of origin labeling on the national level, only to see the law get passed but never implemented. If we can start labeling beef here in S.D., we can show the feds how it’s done and hopefully they’ll follow our lead.”

Maher said that a state country of origin labeling law in Florida has been in place for several years, and a recently-approved Montana law has not been enacted yet.

The meeting included representatives from all aspects of the cattle and beef industries. “South Dakota’s major ag groups were involved, plus representatives from the feeding industry, the packing and processing industry and the retail industry, just to name a few,” said Maher.

While he appreciated input from each participant, Maher said he was especially encouraged to hear Lynn ’s Dakotamart manager Marlin Martin tell the group that he believes country of origin labeling would be a plus for grocery stores, as he expects many consumers will choose USA beef over generic beef.

Other SDSGA members who took part in the meeting included Danni Beer , Keldron, S.D., representing S.D. Farmers Union; Scott Vance, Faith, S.D., representing the S.D. Livestock Auction Markets Association; Rick Fox , Hermosa , S.D. , and Todd Trask, Wasta , S.D.

- # # # -

The South Dakota Stockgrowers Association (SDSGA) invites local producers and businessmen to attend an area meeting in Faith, S.D. at Faith Livestock Commission Company immediately following the S.D. Brand Board meeting on August 30, 2006.

SDSGA Region 1 Vice President, Shane Kolb , Meadow, S.D., encourages folks to join the Stockgrowers for an in depth discussion of the brand inspection program and the brand inspection contract with the state.

“We’re hoping to get a good crowd there to see just how the ranchers would like the Stockgrowers to proceed with the brand inspection contract. We’ve asked for a $.10/head fee increase to help compensate for an estimated $73,000 loss this year. But if we aren’t approved for an increase, we’re not sure what direction to take. We don’t want to jeopardize the quality of brand inspection by running the program into the hole.”

Kolb says even if the increase is approved by the S.D. Brand Board and then the Legislative Rules Review Committee, a good share of the “fall run” will be past by the time the increase is implemented. “The earliest we can get the increase is mid-October, that’s assuming everything runs smoothly. Lots of calves are being sold now and early sell-off looks like it’s going to continue. A lot of the calves we’d usually inspect in October and November will be selling in August and September this year.”

According to Kolb, the S.D. Brand Board will meet at Faith Livestock Commission Company at 10:00 am, and will conclude their meeting at approximately 3:00 pm. The meeting is open to the public and according to the published agenda, a public comment period will be held from 10:30 am until noon. The SDSGA Area Meeting will be held immediately after the S.D. Brand Board meeting, says Kolb.

Past R-CALF USA President Leo McDonnell, Columbus , Mont. , will speak during Faith Livestock Commission Company’s Anniversary Sale Monday August 21, 2006 in conjunction with an R-CALF USA fundraiser auction of a calf donated by Mike Maher , Isabel , S.D.

McDonnell looks forward to joining Maher, the Vance family and others in Faith for the big sale. “ Faith Livestock Commission Company, the Faith community and Mike Maher have been great supporters of R-CALF through the years and I look forward to the chance to see everyone again and personally thank them for all their support.”

McDonnell has agreed to speak after the sale about current cattle issues including animal id and the trade deficit in the cattle and beef industry, and perhaps a recap of some of the changes brought about by R-CALF supporters. “Isn’t it amazing what we’ve accomplished these past few years – when one looks at the direction the industry was heading in the mid 1990s, and then consider some of the changes that R-CALF has been able to effect – we realize what we as an industry can do when we get organized.”

Maher, South Dakota Stockgrowers Association (SDSGA) District 7 Director first decided to donate the proceeds from a yearling to R-CALF in 2002, but the animal was bought, donated back, and bought back several times at Faith Livestock , raising over $4,000 for R-CALF and kicking off a successful string of fundraiser sales that continue today.

For the past two years, Maher has requested minimum bids of $100, with $50 going to SDSGA and the remainder of the bidder’s contribution going to R-CALF. Maher says it’s important to keep both SDSGA and R-CALF going strong.

“Both organizations are important – they strengthen one another and neither organization would be as successful without the other. We’ve had great support from the community each year I’ve donated an animal and I certainly don’t expect it to slow down this year. We are in the heart of cattle country and the businesses in this neighborhood rely on SDSGA and

R-CALF to help keep ranchers profitable so they can continue to do business in Faith, Isabel, Dupree and other small towns across the region.”

Bidders are able to either join SDSGA and R-CALF with their donations, or renew their memberships if they are already a member.

Rapid City – South Dakota Stockgrowers Association (SDSGA) President Rick Fox , Hermosa , S.D. , testified before members of the House Agriculture Committee, to encourage them to use the 2007 Farm Bill as a means of building competitive market opportunities, not increasing dependence on ag subsidies.

“The SDSGA believes strongly in the need for a healthy and competitive cattle market, one that allows

America

’s good cattle producers to be profitable. We do not believe that government subsidies are a long-term solution to low markets, drought, disease or any other difficulty that cattle producers face. We acknowledge that there are a number of hardships in the cattle business, but a strong, vibrant cattle market allows cattle producers to take advantage of market highs and make preparations for the inevitable downturns in the market,” said Fox.

He added that the SDSGA supports the addition of a competition chapter to the Farm Bill, which should include the captive supply reform act. Stricter enforcement of the Packers and Stockyards Act and immediate implementation of mandatory country of origin labeling were also priorities.

“

South Korea

for example has their border closed to US beef because of co-mingling of Canadian beef, with no label to differentiate. The customer is always right. As an industry, it is our job to provide the product that the consumer wants to buy,” Fox said.

Fox went on to say the SDSGA urges immediate abandonment of the National Animal Identification System (NAIS). “There are numerous tracking systems already in place across the country, including brand inspection programs in Western states. To force a mandatory animal identification program onto producers would be a severe infringement of constitutional rights, private property rights, and would burden the U.S. cattle industry with unjustified expense, creating a more severe imbalance in cost of production as we attempt to compete in the global marketplace with other beef producing nations.” He added, “Costly and burdensome tagging requirements will not stop foreign disease. Stricter border patrols and inspections will stop the importation of foreign disease. Implementation of the NAIS is, in effect, a weakening of our trade laws. Rather than adhering to our time-tested and proven policy of preventing disease by disallowing importation of beef from countries with certain diseases, USDA would rather try to manage disease after it is introduced. This is unfair to America ’s food producers and even more unfair to

America

’s consumers.”

Fox encouraged the Congressmen and Congresswoman to amend the Endangered Species Act, which has been used in the past decade to force ranchers off federal grazing land and even off their own private deeded land in some cases.

Fox testified that domestic food production is a matter of national security. “The continued trend toward a more severe trade imbalance makes the

U.S.

more and more dependent on other countries, many of them undeveloped countries, for our food supply. While we believe that dependence on foreign oil has caused serious problems, depending on other countries to provide our most basic need – food – is absolutely hazardous to the American public. At any moment, political matters could create negative relations and a foreign country could deny shipments of food, taint food or dramatically raise food prices. We’re living with this problem due to our foreign energy dependence. Let’s prevent a similar but worse case involving food.”

According to Fox’s testimony, the SDSGA believes imported food should meet or exceed all standards met by US producers and processors. “Do not allow global food companies to jeopardize the health of the American public by importing cheap, un-inspected food that was grown under standards that would be illegal in this country.”

Fox said that the SDSGA supports interstate shipment of beef with state inspections. “State beef inspections that meet or exceed USDA standards should be sufficient to allow beef to be shipped nationwide.”

According to Fox, the SDSGA appreciates Congressmen Moran (R-Kans.), Congressman Goodlatte (R-Va.), Congressman Etheridge (D-N.C.), Congressman Collin Peterson (D-Minn.) and Congresswoman Herseth (D-S.D.) for taking part in the July 30, 2006 hearing held at Wall High School in Wall, S.D. The Stockgrowers are particularly grateful to Congresswoman Herseth for helping to line up the meeting, and the Rapid City Chamber of Commerce Ag and Natural Resources Committee for requesting a hearing in Western South Dakota .

FOR IMMEDIATE RELEASE

August 1, 2006

For more information contact Carrie Stadheim at:

605-342-0429 or carrie.sdsga@midconetwork.com

www.southdakotastockgrowers.org

SD Stockgrowers Show Brand Inspection Program to Goodlatte and Herseth

Philip – The South Dakota Stockgrowers Association took advantage of a rare opportunity to accompany a congressman and congresswoman to a local livestock auction market for a first-hand look at active brand inspection.

South Dakota Stockgrowers Association (SDSGA) District 1 Director Linda Gilbert, Buffalo , S.D. , was among the six members of the Board of Directors who visited with House Ag Committee Chairman Congressman Goodlatte (R-Va.) and House Ag Committee member Congresswoman Herseth (D-S.D.) yesterday at Philip Livestock Auction about the marketing and brand inspecting of cattle at salebarns across Western South Dakota . “We visited with Congressman Goodlatte and Congresswoman Herseth inside the salebarn for a few minutes, and answered their questions about cattle sales and movement throughout the region. Congressman Goodlatte was surprised to learn that Internet bidders have become a formidable buyer in the marketplace. He also asked about the speed of commerce and the use of the brand inspection program as a traceback tool,” said Gilbert.

According to Gilbert, Goodlatte told the Stockgrowers that creating an entire new bureaucracy to track livestock would not be fiscally responsible. “He said he wants to see existing systems work, as long as they can share information back and forth in an efficient and predictable way,” says Gilbert.

When Goodlatte asked the Stockgrowers if buyers are demanding electronic identification, Gilbert shared a real-life experience in which the hot brand, coupled with an affidavit provided age, ownership and traceback verification. “We recently heard that a certain processor, who has purchased our cattle in the past, was able to locate our steer calves that we had sold to an independent feedlot - using word of mouth and brand inspection papers. We had signed an affidavit verifying age, plus our legal brand provided proof of the origin of the calves, and that processor told us that those two items provided sufficient information to satisfy his questions and his customer’s questions. Please remember that just because the technology companies are

telling you that our industry is in dire need of a traceback system, don’t believe for a minute that traceback isn’t already being done.”

SDSGA Chief Brand Inspector Jim Reed , Belle Fourche, S.D., explained that the receiver of the purchased cattle (such as a feedlot) might choose to keep a file with their brand inspection papers, even if they are outside of the brand area, because the brand inspection papers provide useful information about the date of the sale, number of head and the visible brands on the cattle. Although the buyer of the cattle may choose to use eartags, tattoos or other forms of identification for their own records, it might be helpful for them to dovetail that information with their brand inspection records received at the point of sale.

After the group visited inside the salebarn, they headed out to the yards to watch full time brand inspector Sid Fairbanks, Philip , S.D. , and Reed inspect a load of cattle that had been hauled in earlier that day.

Reed told Herseth and Goodlatte that the brand inspectors keep an updated brand book with them at all times to be sure they are prepared to identify any stray or stolen cattle that show up in a shipment. Reed also explained that the SDSGA maintains a file with records of all cattle sold or transported out of the brand inspection area in the past 10 years, which provides a useful tool when looking back to trace individual or group cattle movements. The tallies on file provide details about the cattle owner, the number of cattle sold or transported as well as the brand or brands on the cattle. The strays are also marked on the brand inspection tally, along with updates regarding the owner of the stray cattle.

“We inspect, on average, 1.3 million head of cattle per year,” Reed explained. “Philip Livestock Auction will run 6,000 to 10,000 head per week during the fall and the inspectors can usually inspect all of those cattle in one working day. Our inspectors are trained to keep the flow of commerce running smoothly, which is vital to a rancher whose ‘payday’ generally comes just one day out of the year and depends on efficient inspectors to ensure that his cattle don’t lose too much weight or ‘shrink’ before they are weighed for sale. Although we work as quickly as possible, our inspectors don’t sacrifice quality just to hurry things along. Accuracy is our first priority.”

Reed and Fairbanks showed how a group of cows is traditionally inspected, with one inspector “calling” the brands on the cattle to a second inspector who keeps notes about the number of cattle bearing each brand. They then transferred their notes into a tally book with three carbon copies – one copy being maintained in the salebarn office, one copy being retained by the brand inspector and one copy being sent to the state office in Rapid City . The inspector then makes out market clearances for the buyer of the cattle, which includes the headcount and brands on the cattle purchased.

Philip Livestock Auction owner and manager Jerry Roseth, Philip , S.D. explained that the auction market is required to make the check to the owner as determined by the brand inspector. This system provides third party verification of ownership, which helps deter theft.

According to Reed, about 28,000 head of cattle are held by brand inspectors for proof of ownership each year. When the rightful owner is verified, payment is made. Reed said several hundred strays are returned or paid to the rightful owner every year. These “stray” cattle usually belong to a neighbor and were shipped unknowingly by the consignor.

Herseth and Goodlatte looked through a brand book to gain an understanding of the variety of brands registered, and the importance of using a registered brand instead of a non-registered brand. Reed explained that a non-registered brand is not considered legal proof of ownership and does not give the shipper “title” to the cattle or the right to obtain a check when the cattle are sold.

Rep. Herseth said, “The visit to the Philip Livestock Auction gave Chairman Goodlatte and me a chance to see first-hand the state’s brand inspection process. It was the first time either of us had ever seen the process and I appreciated the efforts of Stockgrowers President Rick Fox to provide me with the demonstration, as well as an explanation of how it would fit into a national animal identification system. I also appreciated Chief Brand Inspector Jim Reed and Jerry Roseth with Philip Livestock for arranging and hosting the visit.”

Chairman Bob Goodlatte said, “I appreciated the opportunity to learn more about the South Dakota brand inspection system and look forward to working with Congresswoman Herseth, Senator Thune and Senator Johnson to ensure that any animal identification system is voluntary and workable for all livestock producers.”

According to Gilbert and Reed, the SDSGA is grateful to both Herseth and Goodlatte for joining them to see South Dakota ’s brand inspection program first hand.

- # # # -

FOR IMMEDIATE RELEASE

July 19, 2006

For more information contact Carrie Stadheim at:

605-342-0429 or carrie.sdsga@midconetwork.com

www.southdakotastockgrowers.org

SD Stockgrowers: Canadian Cattle Pose a Risk to America ’s Cattle Industry

The South Dakota Stockgrowers Association (SDSGA) is concerned by the U.S. Department of Agriculture’s (USDA) recent attempt to authorize older Canadian cattle for importation into the United States .

SDSGA President Rick Fox , Hermosa , S.D. , says “Members of the SDSGA have commented numerous times to USDA that we are not comfortable with the ongoing importation of cattle and beef from Canada in record amounts, as Canada continues to find more cases of BSE in their cattle herd – totaling nine BSE cases currently. Now USDA wants to allow importation of cattle over 30 months of age and importation of beef derived from cattle over 30 months of age, as scientists around the world continue to study BSE, finding more and more questions and fewer answers about the disease.”

“South Korea refuses to accept U.S. beef, knowing that record amounts of Canadian cattle and beef are flowing across the border and without implementation of Country of Origin Labeling, there is no way for consumers, here or abroad, to differentiate U.S. beef. It is ludicrous that USDA now proposes to allow importation of even more Canadian cattle and beef – older cattle which are much more likely to carry BSE – knowing that our export customers are already concerned.”

SDSGA is concerned with USDA’s continued efforts to lower U.S. import rules in order to allow for importation of beef from countries seriously affected by disease. Fox says, “The U.S. has always been known for our high standards, but recently, as USDA has continued to lower our standards, we are becoming a dumping ground for beef that no other developed country wants. In turn, our potential export customers are not interested in our beef, knowing that we import beef that they have refused from BSE infected countries.”

Rick says SDSGA calls on South Dakota ’s congressional delegation to unite Congress in an effort to rein in USDA. “USDA has become an out-of-control agency, answering to big business and ignoring independent ag producers and the welfare of American consumers. As American citizens, and voters, we have no recourse when a renegade bureaucracy joins hands with global corporate giants to allow for extreme profit margins for a few huge companies, ignoring health and safety standards. USDA does not answer to the American public; it answers to giant food companies. That practice has got to stop, and our congressional delegates need to help ensure that USDA once again becomes an agency that protects American agriculture and American consumers. South Dakota ’s congressional delegates are sincerely dedicated to a vibrant ag production industry, and SDSGA is confident they will team up with elected officials from across the country to put a stop to USDA’s irresponsible actions.”

Fox says SDSGA calls on Congress to:

Suspend indefinitely the USDA’s proposal to begin accepting Canadian imports of cattle over 30 months of age and beef derived from cattle over 30 months of age.
Rescind the USDA’s Final Rule and close US Borders to Canadian beef and cattle imports until the U.S. implements BSE import standards that reflect the consensus among BSE – affected nations and beef importing countries.
Require that USDA cease its policy of granting access to the U.S. market before we regain access to foreign export markets.
Implement Country of Origin Labeling to ensure that consumers can differentiate between beef derived from cattle born, raised and processed in the United States and beef derived from foreign cattle.

- # # # -

FOR IMMEDIATE RELEASE

July 19, 2006

For more information contact Carrie Stadheim at:

605-342-0429 or carrie.sdsga@midconetwork.com

www.southdakotastockgrowers.org

SD Stockgrowers Urge Producers to Attend Farm Bill Hearing in Wall

The South Dakota Stockgrowers Association (SDSGA) encourages farmers and ranchers to sit in on the Farm Bill Hearing to be held on July 31, 2006 at 9:30 am Mountain Time at the High School Gymnasium in Wall, S.D. One of only a few hearings scheduled around the country, the event will be hosted by Chairman of the House Ag Committee's Subcommittee on General Farm Commodities and Risk Management, Jerry Moran (R-KS). Congresswoman Stephanie Herseth, (D-SD) and House Ag Committee Chairman Bob Goodlatte (R-VA) plan to attend, and possibly more House Ag Committee members.

According to SDSGA District 3 Director Marvin Jobgen, Scenic, S.D., the public will not be given the opportunity to testify before an open microphone but may submit written testimony. “Two panels of South Dakota producers will provide the official verbal testimony on July 31, but the Stockgrowers still encourage all producers to attend the meeting not only to hear the testimony provided, but also to catch the Congressmen and Congresswomen after the hearing for some one-on-one discussion.”

Jobgen says that SDSGA President Rick Fox, Hermosa , S.D. , has accepted an invitation to speak on behalf of SDSGA. Nine other individuals from around the region will also testify. “The Stockgrowers are pleased that Rick will have the chance to speak about animal id, prairie dogs, COOL, drought, captive supply and other cattle industry issues. We hope to see a lot of our members in attendance to show support for Rick’s comments and to visit with the congressional delegates before and after the official meeting.”

“It’s imperative that South Dakota cattle producers’ voices be heard as the Farm Bill is being written. We need to ensure that a competition chapter is included in the Farm Bill, to create an equitable and open marketplace for us to sell cattle in – a market that is not controlled by packer-owned cattle.” Jobgen adds, “We should also use this opportunity to stress the importance of South Dakota ’s brand inspection program as a viable and working animal id and animal traceback system. We don’t need more animal id requirements – the added cost and a bigger bureaucracy will benefit nobody but the global corporations selling technology.”

Jobgen says the SDSGA appreciates Congresswoman Stephanie Herseth for reaching across party lines to invite Congressman Goodlatte and the rest of the House Ag Committee to South Dakota for the hearing.

Jogben suggests that producers contact Congresswoman Stephanie Herseth or the SDSGA with any questions about the event.

- # # # -

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) Board of Directors recommends that the South Dakota brand inspection fee be raised to compensate for a nearly 200,000 head shortage of cattle inspected last fiscal year, says SDSGA Finance Committee Chairman Ken Knuppe , Buffalo Gap, S.D.

“At the end of our fiscal year, which wrapped up on April 30, we looked at our annual audit and totaled the brand inspection tallies and determined that our fears had been realized. Cattle numbers had been declining since 2002, when the drought caused a major selloff,” says Knuppe. “This year, we inspected 199,047 less cattle than one year ago, causing the South Dakota Stockgrowers Association to subsidize the brand inspection program with over $24,000 because we didn’t take in enough in brand inspection fees to cover our inspector’s wages and other brand inspection costs.”

“We met with the Brand Board on June 28, 2006 to articulate the SDSGA Board of Director’s recommendation of a 10¢ per head fee increase.” Knuppe says the raise would result in a brand inspection fee of 80¢ per head. The Brand Board will review the audit and final brand inspection tallies and revisit the issue at their July 26, 2006 meeting.

Knuppe said that members of the Brand Board agree with the Stockgrowers that the organization deserves a fair profit for managing the brand inspection program. The SDSGA has averaged a modest 5% profit per year for the past five years. “The Brand Board realizes that the Stockgrowers are bound by the contract to perform quality brand inspection and cannot reduce services in an effort to cut costs. We appreciate their promise to take action quickly. The Brand Board is committed to maintaining efficient and effective producer-funded brand inspection.”

Knuppe reminded the Brand Board that SDSGA directors and members pay for the brand inspection service and would not support an unwarranted increase. “We’re all in this together, and although nobody likes a raise, a good working brand inspection program is vital to the success of West River ranches. The last thing most S.D. ranchers want is a taxpayer-subsidized bureaucratic monster. A ten dollar bill will cover the fee increase on a 100 head load of calves. Any rancher that has had a stray returned to them will tell you this is a worthwhile investment.”

According to SDSGA Animal ID Committee Chairman, Kenny Fox , Belvidere , S.D. , South Dakota ’s ranchers are more aware than ever of the benefits of brand inspection. “Not only does the brand inspection department return thousands of dollars worth of livestock every year, the brand is also recognized by USDA as a viable form of animal id.” Kenny Fox says the animal id discussion has included ideas from many bureaucrats outside of the brand inspection area who have suggested a mandatory electronic eartag, but SDSGA maintains that a hot brand is the only permanent form of animal id, and is useful for tracking livestock. “A lot of ranchers across the brand area have told me that they want to continue using their brand – that it is the best form of id for their cattle. Without a viable brand inspection program, a hot brand would not be a tool for traceback.”

SDSGA President Rick Fox , Hermosa , S.D. , explains that, although expenses always rise at a steady pace, the problem really lies with a four year exodus in cattle due to the drought. “It’s not really a matter of expenses skyrocketing, it’s the fact that cattle numbers in Western South Dakota have drastically declined and won’t probably rebuild in just a year or two. Our expenses have increased only slightly in the past four years, and we do our best to keep it that way, but with fewer cattle in the country, we didn’t take in enough last year to pay our fixed costs like wages, benefits and payroll taxes.” Fox adds that the SDSGA has given regular raises to their brand inspectors, to help ensure competitive wages. Insurance and fuel costs continue to rise regularly, too, he says.

And hopefully, Fox says, South Dakota ’s herds will rebuild and provide an opportunity for a fee decrease. “We can always drop the brand inspection fee back again if we can afford to. It’s been done before and we’d sure do it again if it was feasible.”

The five members of the Brand Board appointed by the Governor, by law, must ensure that brand inspection is carried out in Western South Dakota . The Brand Board contracts with the South Dakota Stockgrowers Association to perform these services. The Stockgrowers employ all brand inspectors, while the criminal investigators and brand recorders are employees of the Brand Board.

Rapid City ~ The South Dakota Stockgrowers Association (SDSGA) commends the Lawrence County Commissioners for their 3-1 vote on June 27, 2006, to keep the Homestake restoration fund intact to be used for the cleanup of Whitewood Creek and its watersheds. The commission’s motion was to encourage the S.D. Game, Fish and Parks to find other funding sources to complete the acquisition of three parcels of property through Spearfish Canyon , and to only use the Homestake restoration fund as a last resort for funding.

According to SDSGA District 8 Director Bill Kluck, Mud Butte, who spoke on behalf of the Stockgrowers during the commission meeting, the commissioners are cognizant of the desires of Spearfish Canyon residents to maintain a pristine and undeveloped public resource. But the commissioners also realize that spending the Homestake restoration fund to purchase the Spearfish Canyon parcels, as proposed by the S.D. Game, Fish and Parks, would be an irresponsible use of those funds intended to cleanup downstream waterways. “The SDSGA and the Lawrence County Commission agree that development in Spearfish Canyon would be a shame, but we have little doubt that the S.D. Game, Fish and Parks will have no problem finding other funds to carry out the land purchase, leaving the Homestake Restoration Fund to be used for it’s intended purpose – monitoring and cleanup of waterways affected by Homestake’s decades of mining.”

According to Kluck, the SDSGA and Lawrence County Commission also agree that a net increase in state-owned property should not occur. “We agree with the commissioners that a land trade would be the most prudent method of obtaining Roughlock Falls and the other pieces of Spearfish Canyon , currently owned by Barrick, formerly Homestake Mining Company. The S.D. Game, Fish and Parks should initiate a land trade so they simultaneously turn an equal portion of state land back into private hands, so as not to allow for an increase in state-owned property.”

SDSGA Vice President Larry Nelson , Buffalo , S.D. , who attended the meeting, said the SDSGA appreciates the Meade County Commission and Butte County Commissioners for their assistance on the issue. “ Meade County took proactive steps over a year ago to enact policy supporting the use of the Homestake Restoration Fund for its intended use – water and streambed cleanup. And although Butte County hasn’t taken a formal position, their commissioners are seriously educating themselves in preparation for their next meeting.”

According to Nelson, local SDSGA member Donna Allen prepared two meals for the crowd, and Dennis Fisher cooked for the barbecue, where verified USA Raised Beef was served.

Members of the South Dakota Stockgrowers Association (SDSGA) are saddened by the loss of a true patriot and property rights defender, Wayne Hage of Tonopah , Nev. Mr. Hage “Storm Over the Rangelands” author, passed away June 5, 2006.

The SDSGA was honored to host Hage and his wife Helen Chenoweth Hage as keynote speakers during their 2002 Convention. According to SDSGA president Rick Fox, Hermosa , S.D. , Hage will forever be thought of by Stockgrowers as an ally and a true friend.

“ Wayne devoted his life to a cause that our forefathers would have found to be invaluable: preservation of property rights – the very foundation of this great nation,” Fox said. “As ranchers and property owners, we have wholeheartedly supported Wayne ’s efforts to prove that private individuals can and do own water, forage and access rights on federal lands and we have proudly celebrated with him in his legal triumphs through the years. The victories of Hage v. US will benefit

U.S.

ranchers for decades.”

Fox says that, in addition to many legal victories, further evidence of Hage’s dedication to property rights is the tireless work of his wife Helen Chenoweth Hage and previous wife, Jean Nichols Hage, who preceded him in death in 1996, and his children, to protect private property rights. “A man’s true heart can often be seen in by the actions of his family and this is especially true with Wayne Hage. He motivated people around him to cherish and fight for our God-given rights and clearly none were more moved than his own immediate family, who continue to stand up for property owners across the country.”

Fox says that although members of SDSGA mourn the loss of an American hero, they will remember with great fondness the accomplishments of their friend Wayne Hage.

Cattlemen’s Competitive Market Project and Korkow Rodeo Co. Renew USA Raised Beef Sponsorship

Cattlemen’s organizations focused on improving live cattle prices will continue their sponsorship arrangement with Korkow Rodeo Company to promote USA Raised Beef for the second year through the Cattlemen’s Competitive Market Project (CCMP).

Korkow Rodeos will continue to display six large signs bearing the exclusive USA Raised Beef logo on the company’s stock trucks as they travel across the nation to rodeo events. In addition, fans at each rodeo will watch a flag with the USA Raised Beef logo as it is carried during "victory laps" during each performance, while the rodeo announcer explains that a USDA stamp does not guarantee USA Raised Beef.

The USA Raised Beef campaign was developed through CCMP, a voluntary effort by independent cattle producers to promote domestically born, raised and processed beef.

"R-CALF USA, the Cattle Producers of Washington (CPOW), Colorado Independent CattleGrowers Association (CICA), Independent Cattlemen of Nebraska ( ICON ), and the South Dakota Stockgrowers Association (SDSGA) came together as a coalition of groups working to improve competition in the U.S. live cattle market to make U.S. cattle producers more profitable," says Mike Maher , Isabel, SD, who represents SDSGA on the CCMP Council.

Maher said the coalition’s goal is to raise money through voluntary donations that can be used at the will of stakeholder groups to enhance competition in the marketplace through implementation of country of origin labeling (COOL), enforcement of the Packers and Stockyards Act and enactment of captive supply reform legislation, along with other issues.

"CCMP accepts contributions through voluntary fifty-cent per head donations from producers who sign up with their local auction markets," explained Maher. "Markets deduct the per head fee and the funds are forwarded to the coalition of stakeholders for use on issues so crucial to our livelihoods. This program is strictly voluntary, which means we can take on any project that benefits the industry - whether it’s a political issue, litigation or a promotional campaign like this one."

Jim Korkow, Korkow Rodeo Company, Pierre, SD , said he has enjoyed participating in the USA Raised Beef promotion. "Korkow Rodeos is proud to promote

USA

beef everywhere we travel. As a rancher and a rodeo contractor, I want to do my part to promote

U.S.

cattlemen and their product while helping educate consumers. We’ve had a great deal of positive feedback from folks as we’ve traveled hauling our bucking stock from our South Dakota ranch to rodeo events in North Carolina to the Pacific Northwest, and from New York to California and all points in between."

Directors and officers of the South Dakota Stockgrowers Association (SDSGA) invite everyone with an interest in the cattle industry and rural America to join them for their Quarterly Meeting to be held in Fort Sisseton , S.D. , on June 13-14, 2006.

Committee meetings will be held all day on the 13^th and the morning of the 14^th, then the Board of Directors will meet after lunch on the 14^th, according to Fox. Non-meandered waters, inheritance tax and conservation easements will be addressed, along with several other issues. R-CALF CEO Bill Bullard will speak Tuesday evening following a 6:30 pm barbecue.

“It’s important to get together with folks from all across the state to see what their concerns are and let them know what we’ve been up to,” said SDSGA President Rick Fox , Hermosa S.D.

Fox said that the South Dakota Stockgrowers Association are looking forward to meeting producers from the Northeastern part of the state – and warmly welcomes everyone to the meeting – he reminds folks that membership is not required to attend a meeting. “We hope both members and non-members will join us in Fort Sisseton –there are a lot of good operators in the area and I’m interested in meeting them and visiting with them about the cattle business,” Fox said.

SDSGA Region 2 Vice President Wayne Nelson , Langford , S.D. , also hopes to see some new faces at the two-day event. “I’ve been talking to quite a few people, inviting them to join us, and I hope they invite their neighbors too. It will be a great opportunity for the producers in this part of the state to learn about the South Dakota Stockgrowers Association and R-CALF

USA

.”

Fox also encourages folks to call the South Dakota Stockgrowers Association office at 605-342-0429 with questions and to RSVP for meals at the meeting.

For college students who are worried that their calf check won't be big enough to pay for books, room and board next semester, or who have you been trying to convince Mom and Dad to sell the ranch to pay the tuition bill, a South Dakota Stockgrowers Association Scholarship (SDSGA) may be just the ticket. SDSGA hopes to help college students achieve their educational goals without having to haul good old #497 to town to finance those hopes and dreams.

The South Dakota Stockgrowers Association Scholarships will be awarded to students attending an accredited higher education institution in South Dakota . Students must have completed one year of post-High School education and be working toward an agricultural degree.

A printable application form is available on the South Dakota Stockgrowers Association website: www.southdakotastockgrowers.org. Students may also contact the South Dakota Stockgrowers Association office at 605-342-0429 for an official scholarship application.

The South Dakota Stockgrowers Association supports agricultural education and hopes to retain South Dakota 's educated, motivated hard-working youth. Because South Dakota 's economy relies so heavily on the agricultural industry, the South Dakota Stockgrowers Association believes that an investment in educating ag students is an investment in the future of our state.

The South Dakota Stockgrowers Association (SDSGA) hosted a “brand” station and displayed a horse and calf at the children’s Ag and Natural Resources Day held on April 21, 2006 at the Central States Fairgrounds in Rapid City , S.D.

The SDSGA showed third graders from Knollwood, Grandview and Wilson Elementary Schools what a branding iron looks like, how it is used and why it is a necessary tool on a ranch operation. Bob Heidgerken, SDSGA member from Rapid City , S.D. , also showed the students how eartags work and why, although they can be useful, they are not a permanent form of identification like a hot iron brand.

“Ranchers might use an eartag for some things, but not for identifying ownership because they can easily be lost, and then the rancher could lose those cattle,” he explained. Children had the chance to ask questions, and then to build their own “branding irons” with pipe cleaners, then dip them in paint and “brand” a poster board.

While most of the children were unfamiliar with brands, they all understood the need to mark their assignments with their name in order to receive credit for their schoolwork, and to identify their pet dogs with tags so that a lost dog can be returned.

SDSGA President Rick Fox , Hermosa , S.D. , and District 8 Director, Bill Kluck, Mud Butte, S.D., also helped with the event. Fox displayed a horse and calf in a pen, and answered questions while the students petted the livestock. In addition, Fox brought a saddle and calf bottle to display. Kluck led a group of students from station to station, where they viewed the horse and calf, and learned about honey production, milk production, range conservation, wheat products and beef products in addition to branding and brand inspection.

Fox said the beautiful weather rounded out a great day of education for about 240 of Rapid City ’s kids. “Those of us in agriculture have learned that there’s no need to ‘preach to the choir,’ instead, its important that we educate those who are unfamiliar with agriculture, and I can’t think of a better group of people then third-graders, who are at their most impressionable age. It was a good day – the weather just added to the kids’ enjoyment of seeing and touching the livestock, painting their own brands, and learning about the other aspects of production agriculture, like where hamburgers, milk and bread come from.”

Fox said that SDSGA member Tammy Basel, Union Center , S.D. , helped organize the event.

Members of the South Dakota Stockgrowers Association appreciate Herman Schumacher , Herreid , S.D. , Mike Callicrate, St. Francis , Kansas , and Roger Koch, Omaha , Neb. , for their pursuit of justice for

America

’s cattle producers.

Yesterday a jury in Aberdeen agreed with the plaintiffs that three of the nation’s four big packers had purchased cattle for less than the fair market value, taking advantage of a glitch in USDA’s market calculating system. Experts estimate sellers lost over $40 million during the period of the misreporting of prices.

South Dakota Stockgrowers Association President Rick Fox , Hermosa , S.D. , who attended part of the trial is pleased about the jury’s “guilty” verdict. “The jury found Excel, Swift and Tyson all guilty of using USDA’s wrong figures, which in fact are numbers that USDA received from the meat packing industry. The jury obviously agreed that the packers knowingly bought cattle for less than true market value, without disclosing that to the sellers. Clearly that’s unethical and unacceptable business behavior.”

According to Fox, the Class action lawsuit alleged that Excel, Tyson Fresh Meats (formerly IBP), Swift (formerly ConAgra Beef) and National Beef (formerly Farmland National) purchased cattle for less than actual market value, while USDA was misreporting current market value for choice, select, and no roll boxed beef. The fact that USDA miscalculated prices was not the issue, but rather the fact that the packers knowingly used that wrong data to price and subsequently buy cattle during that time period. The end result was an artificial lowering of the market, with the packers being able to buy cattle for less than the actual worth.

"I appreciate the jury's understanding of the situation and their actions to remedy the unfairness. An attorney for the defendants told the jury that they have a partnership with cattle producers. the ranchers I know do not tolerate dealings that are knowingly unfair like this case proved."

Rapid City ~ Agencies of the federal government cannot rightfully assume the authority to prohibit U.S. processing plants from providing meat testing above and beyond the status quo.

In light of yesterday’s lawsuit filed by Creekstone Farms the South Dakota Stockgrowers Association (SDSGA) urges USDA to move forward in a positive manner, allowing processors the right to voluntarily BSE test any beef carcasses, using USDA approved tests.

In agreement with the lawsuit, SDSGA believes that USDA should not interfere with regular commerce by denying processors the right to test beef carcasses for BSE. To comply with requests from customers and obtain niche markets, processing plants should be encouraged to ‘go the extra mile’ in all aspects of safety and cleanliness, said SDSGA President Rick Fox , Hermosa , S.D.

“It is illogical for USDA to block Creekstone Farms from entering into a good business agreement that meets the requests of our foreign beef customers. It would be different if Creekstone were disobeying rules, or ‘slacking’ in their safety procedures, but just the opposite - they want to provide an added level of security for their customers by exceeding government safety standards. I personally applaud Creekstone Farms for their industrious negotiating and their willingness to make the customer the ‘king.’”

As a rancher, Fox makes every effort to meet the demands of his customer – the feeder. “If I can improve my returns by preconditioning my calves or using certain genetics, you bet I’m going to do it,” he said. “I sure don’t think it would be right for a government bureaucracy to tell me that I’m setting a poor precedent by taking the time to find out what the calf-buyers are looking for and working to produce that particular end product. What if USDA had told ranchers 20 years ago that crossbreeding was unscientific, so they wouldn’t allow it? Where would our industry be?”

“Just as Creekstone has explained, it’s not about ‘our science’ or ‘their science’ it’s much simpler than that – it’s about providing the customer with what they want. That’s Marketing 101.”

Another benefit, according to Fox, would be additional surveillance of U.S. cattle, with no added cost to the

U.S.

taxpayer. Asian countries, who have detected BSE in cattle as young as 20 months, are willing to compensate

U.S.

processing plants for the extra costs of testing, Fox says.

Fox says USDA would be wise to withdraw their opposition to voluntary independent BSE testing.

Members of the South Dakota Stockgrowers Association (SDSGA) are asking friends and neighbors across the state to sign a petition opposing the implementation of a mandatory national animal identification program.

The Stockgrowers gained over 300 signatures during the Black Hills Stock Show but don’t plan to stop until they’ve gathered far more. “Almost without exception, every producer that I’ve talked to is literally frightened of the cost and the burden of a federally mandated animal id program,” said Kenny Fox, Belvidere , S.D. , who serves as the Chairman of the SDSGA Animal ID Committee. “The biggest concern among our members is the fact that it’s completely unnecessary. We’ve got the capability to track our livestock right now – why in the world would our government want to impose the most burdensome and expensive mandate upon the most independent and low profit segment of the beef supply chain, the cattle producer? It makes no sense. It seems as though the only proponents of the idea are those who have financial investments in the technology.”

According to Fox, members and directors of SDSGA are taking petitions to bull sales and other events to obtain signatures. Several South Dakota auction markets are also helping to gather signatures.

“We’re trying to contact all cattle producers who are opposed to the excessive cost and regulation that a mandatory program would include, and asking them to sign our petition. Then we plan to share our petitions with USDA and our elected officials to help them understand the level of opposition in the heart of cattle country,” said Fox.

Fox added that if any producers have not had the chance to sign a petition or would like to circulate one, they may contact Carrie Stadheim at the South Dakota Stockgrowers Association office at 605-342-0429 or carrie.sdsga@midconetwork.com.

Following a speech to 300+ cattle producers on January 30, 2006, during the Black Hills Stock Show, Leo and Sam McDonnell were each presented with a handmade saddle on behalf of the cattle industry in South Dakota .

The McDonnells were surprised and honored by the show of gratitude from their South Dakota friends.

“Sam and I would like to thank the Badure family, the South Dakota Stockgrowers Association and everyone else involved in this wonderful gift. It will be without a doubt one of the most special memories in both our lives.” Leo McDonnell said.

South Dakota Stockgrowers Association President Rick Fox, Hermosa , S.D. , said the cattle industry will never adequately thank the McDonnells for their personal sacrifice the past 8+ years that has led to the formation of the largest national organization dedicated strictly to the U.S. cattle industry – R-CALF

USA

“Not only did Leo and Sam help found R-CALF, their untiring support and leadership has lifted the U.S. cattle industry to a new level in politics – we are now a force to be reckoned with. Who would have guessed that soft-spoken, kind hearted Leo McDonnell would enlist the support of cattle producers and feeders across the country to create the most powerful producer lobbying group that Washington has seen in a long time? South Dakotans and especially the Stockgrowers are grateful beyond words for Leo and Sam’s gifts of time, sincerity, knowledge and persistence.”

While Fox knows that the McDonnells will remain active in R-CALF and the cattle industry for years to come, he thought the Black Hills Stock Show was just the place to thank them for the helping hand they’ve offered to U.S. cattle producers. “One of the first major fundraising efforts was led by a handful of South Dakotans with a booth at the Stock Show and a raffle for saddle made and donated by Baxter Badure. I know the Badure saddles have always held a special place in Leo’s heart and it just seemed fitting that he and Sam each have one to ride.”

At least ten members of the South Dakota Stockgrowers Association (SDSGA) plan to fly to Washington , D.C. on February 14, 2006 for the R-CALF USA Stampede scheduled to begin that day and conclude February 16, 2006.

According to SDSGA Executive Director Carrie Stadheim, Rapid City , S.D. , the South Dakota delegation will conference with R-CALF members from across the country on the evening of the 14^th. The following day, they will meet with each of South Dakota ’s congressional delegation in separate meetings. “We’re fortunate to have positive working relationships with our congressional delegation – each of them was quick to schedule a meeting with us upon our request.”

Although the South Dakota delegation tends to strongly favor issues that benefit the U.S. cattle industry, Stadheim said it never hurts to remind them, and offer logical reasoning. “ South Dakota ’s senators and congresswoman have shown unmatched support for the continued economic viability of the U.S. cattle industry, but that is certainly no reason for us citizens to get lazy. It’s always our responsibility to educate them and offer real world examples of why we hold a particular position.”

The schedule allows time on the final day for all of the participants to meet with the administration.

According to Stadheim, the Stockgrower members will talk to their congressional delegation and the administration about mandatory country of origin labeling, animal id, captive supply reform act and international trade.

Stadheim said clearly South Dakotans are sincerely concerned about national issues affecting the cattle industry. “The passion of South Dakota ’s cattle producers to maintain a viable industry simply cannot be beat. It’s obvious that we not only rely on the economic success of the cattle industry, but that we take it personally. I’m excited to see that we will be represented so strongly in Washington , D.C. ”

Donna Allen, Lake City; Danni Beer, Keldron; Garrett Clarkson, Ludlow; Kenny Fox, Belvidere; Linda Gilbert, Buffalo; Bob Henley, Britton; Margaret Nachtigall, Owanka; Herman Schumacher, Herreid; Carrie Stadheim, Rapid City, Al Trask, Elm Springs all plan to participate in the fly in.

Over 80 area cattle producers in the Mobridge community gathered on February 1, 2006, for an update from the South Dakota Stockgrowers Association (SDSGA), the Independent Beef Association of North Dakota (I-BAND) and R-CALF

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R-CALF’s new president, Chuck Kiker, Beaumont , Texas , talked to producers about issues that R-CALF deals with to improve competition and maintain fair trade relations with foreign nations.

The dinner meeting, compliments of SDSGA and I-BAND was held in the Moose Lodge in Mobridge, S.D. Kiker also spoke the following day at the Dakota Radio Group Farm Show.

A full house of more than 50 ranchers ate lunch and heard speakers in Morristown , S.D. , on January 17, 2006, during one of the South Dakota Stockgrowers Association (SDSGA) Winter Area Membership meetings. Another large crowd gathered in Timber Lake , S.D. , later that evening to talk about the U.S. cattle industry. Jess Peterson, a Montana rancher and the current R-CALF

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lobbyist spoke to both groups about R-CALF’s latest issues. Peterson answered questions about CAFTA, mandatory country of origin labeling and several other national issues.

SDSGA District 8 Director Bill Kluck, Mud Butte, S.D., addressed the groups about animal id. Kluck talked about the meetings he’s attended recently – in Chicago , Ill. , and Kansas City , Mo. – where he testified on behalf of SDSGA and reinforced their opposition to a mandatory national animal identification program.

The year’s first SDSGA Area meeting was in Kadoka on January 9, 2006 where 50+ people ate dinner compliments of the South Dakota Stockgrowers Association at Club 27. Kluck spoke to Kadoka ranchers about animal identification. Additionally, SDSGA District 11 Director and state lobbyist, Mark DeVries, Belvidere , S.D. , talked about the upcoming legislative session. SDSGA President Rick Fox, Hermosa, S.D., also talked about several issues and encouraged people to take the initiative to join SDSGA, and become involved in the future of the cattle industry.

Rapid City ~ The South Dakota Stockgrowers Association adamantly opposes the rumored nomination of meat industry lobbyist Chandler Keys to the USDA Undersecretary position vacated last year by Bill Hawks.

“It may or may not be in the works, but some press reports have indicated that former NCBA lobbyist Chandler Keys might be nominated by the administration to serve as Undersecretary of the USDA, handling the Ag Marketing and Regulatory program,” said South Dakota Stockgrowers Association President Rick Fox, Hermosa, S.D. “This would be utterly unfair to America’s cattle producers; Keys has made it obvious in the past several years that he harbors no loyalties to the cattle production sector of the industry, but instead has lobbied against our interests time and again.”

An unbiased individual who does not have strong political ties to a particular segment of the industry would be a much more viable choice, said Fox. “When Keys left NCBA after 20 years of service, he was hired by Swift and Company, one of the ‘big three’ packers in the United States . He obviously has strong ties to the international meat corporations, who have competing interests with independent cattle producers. The U.S. live cattle industry is sorely in need of a USDA Undersecretary who supports the U.S. live cattle producer, to balance the many staffers who are clearly uncaring about the health and viability of our industry.”

It appears that in their hiring process, USDA selects new management-level employees from a small pool of ex-NCBA staff and/or officers. This is totally unfair to the thousands of livestock producers who disagree with NCBA’s political positions.”

News Releases 2006