NC Midyear Highlights
Attendees gave this year’s NC Midyear Meeting high marks – on all aspects: speakers, topics, facilities, food, weather
and generous sponsors. Activities were held June 10 in Friend and June 11 at the Holthus Convention Center in York.
Wednesday’s activities were based at the historic and renovated Pour House in Friend. The schedule included a NC
Board meeting, a golf tournament, an area tour and a steak dinner welcome reception. The business portion of Midyear
occurred Thursday at the Holthus Center in York. NC policy committee meetings were held in the morning and
afternoon. The NC Foundation Luncheon provided an opportunity to recognize recipients of Foundation scholarships and
winners of the Retail Value Steer Challenge.
Regarding scholarships, in addition to recognizing the 35 scholarship winners, the NC Foundation introduced
Curtis Wetovick of Fullerton as the first recipient of its Nebraska Cattlemen Beef State Scholarship. The $10,000
scholarship has been established to support outstanding junior, senior or graduate level students. Recipients must be a
resident of Nebraska and be enrolled in a Nebraska college or university pursuing a beef industry related degree. The
scholarship is awarded based on student need, Nebraska beef industry involvement (past achievements and future
plans) and academic performance.
Wetovick was one of three finalists interviewed by the selection committee. He is a senior at the University of
Nebraska pursuing an Animal Science degree, with a Business and Engler Agribisiness Entrepreneurship minor. His
parents are Richard and Marne Wetovick. He has been involved in every aspect of production and management within
his family’s cattle ranch. Also, he is an auctioneer and started his own business, CW Auction, during his junior year of
high school.
The Retail Value Steer Challenge is the primary fundraiser for NC Foundation with money raised supporting
youth and adult educational programs, scholarships, research and infrastructure projects, history preservation and
judging teams at colleges in Nebraska. This year, 171 steers were donated for the fundraiser.
Three winners of each of the three steer challenge categories were awarded for their steer’s performance in the
16th annual Retail Value Steer Challenge. First place in the Average Daily Gain category was awarded to the steer owned
by Briggs Feedyard of Seward. Second place went to Miles Cattle Company, Inc., McCool Junction and third place was
awarded to Berger’s Herdmaster, Stapleton. Farm Credit Services of America – Bob Campbell and Matt Sommers owned
the steer that won the Carcass Value category with the Northeast Cattlemen affiliate receiving second with its steer. Jim
Jenkins, Callaway received the third place honors. First place in the Total Value Category was a steer owned by Todd
and Holly Schroeder and John Reeson of Wisner. Second place went to the steer owned by Maddux Cattle Company and
Bentz Valley, Inc, Wauneta and third place went to Eisenmenger Farms, Inc of Humphrey.
The NC Foundation recognized the support of Darr Feedlot, Cozad, for administration and feeding the steers that
were entered into this year’s challenge. In addition, the Foundation appreciates sponsors for their support of the RVSC:
ADM Alliance Nutrition, Bill’s Volume Sales, Inc., Darling International, First National Bank – North Platte, Gallagher
Grace/Mayer, and Zinpro Performance Minerals.
Committee Meeting Highlights:
Animal Health and Nutrition - Dave Boxler, West Central Research and Education Center, presented information
on control of biting flies on pasture cattle. He discussed his research that determines the most effective methods and
controls. Also, Nebraska State Veterinarian, Dennis Hughes, presented information on the on-going activities
surrounding avian influenza and related that to biosecurity for all livestock. Jim Macy, new Director of Nebraska Depart
of Environmental Quality, gave a short presentation introducing himself and emphasizing his plans for transparency and
cooperation.
Brand and Property Rights – Chairman Jay Martindale introduced Nebraska Brand Committee Executive
Director, Shawn Harvey, who answered questions regarding brand law in Nebraska both inside and outside the
inspection area.
Education - Brooke Talbott, University of Nebraska Ag Leadership Education and Communication Department
recruitment coordinator, and Rusty Bartlett, Pender FFA advisor, presented “Becoming an Agricultural Education
Teacher.” Currently there are 157 schools with FFA programs and 25 programs have been added in the last five years.
There are 15 schools that would like to add an agricultural program. It was discussed how to target future teachers and
encourage students to become teachers. Nebraska FFA has a mentoring program for new teachers. The shortage of
teachers is a national problem. The goal of the Nebraska Ag Education program is to keep taking care of existing
programs and help start new ones. The committee would like to see the Nebraska Cattlemen share with its affiliates
how they can help with ag teacher recruitment. Committee leaders and staff will visit with the NC Foundation about the
idea of establishing a scholarship that would be available for individuals returning to the classroom to teach Ag
Education.
NC Marketing and Commerce - Vice Chairman Steve Sunderman and Jeff Stolle updated the Committee on the
process of renewing USDA’s Mandatory Price Reporting (MPR) platform for fed cattle and boxed beef. Stolle indicated
that, due to a requirement that all industry participants/segments reach a consensus before action on the federal level;
the most likely path is a “clean” renewal of the MPR platform as it currently exists for both fed cattle and boxed beef.
Chairman John Schroeder addressed the need for improving transportation infrastructure in Nebraska –
especially relative to NC’s existing policy regarding transportation of cattle and commodities. A motion was moved to
adopt the following as policy statement: NC supports the prudent expenditure of state and federal funds to improve
transportation infrastructure and allow for more efficient movement of commodities for producers throughout
Nebraska. After considerable discussion, the proposal was tabled until NC’s annual meeting in December.
Addressing CME Futures Issues, Chairman Schroeder and Jeff Stolle updated the Committee on ongoing industry
conversations relative to the specifications and cash settlement index for the CME Feeder Cattle futures contract as well
as a recent CME proposal to implement variable price limits for all CME livestock futures contracts. Following some
discussion, an amendment to NC’s CME Feeder Cattle Index resolution was proposed and approved (new language in
bold).
WHEREAS, the Chicago Mercantile Exchange Feeder Cattle contract’s primary purpose is to serve as a viable risk
management mechanism for producers; and
WHEREAS, a narrower range of weights included in the index results in a more clearly defined and more
representative cash index; and
WHEREAS, the contract is meant to represent steer cattle that are destined to be placed directly into feedyards
to be finished to harvest weight; and
WHEREAS, the current cash index parameters for the CME Feeder Cattle contract tend to include many cattle
that are destined to go back to grass or into backgrounding facilities while excluding many cattle that are being placed
directly into feedyards.
THEREFORE BE IT RESOLVED Nebraska Cattlemen supports the removal of 650-699# steer cattle from the
calculation of the CME Feeder Cattle Index.
BE IT FURTHER RESOLVED Nebraska Cattlemen supports the inclusion of 850-899# steer cattle in the calculation
of the CME Feeder Cattle index.
Also, an amendment to NC’s resolution on Chicago Mercantile Exchange (CME) Feeder Cattle Index was
proposed and approved. New language is in bold:
WHEREAS, the CME feeder cattle contract is often used as vehicle to aid in price discovery of the cash feeder
cattle market, and;
WHEREAS, the CME feeder cattle contract is a cash settled contract, and;
WHEREAS, the cash feeder cattle market index acts as an objective target for the CME feeder cattle contract to
settle to, and;
WHEREAS, the current index composition lists a number of exclusions based upon body and/or flesh condition in
addition to breed type, and;
WHEREAS, Nebraska Cattlemen feels the index may not be fully representative of the cash market.
THEREFORE BE IT RESOLVED, Nebraska Cattlemen encourages the USDA to eliminate all exclusions due to
condition and include all cash sales of feeder cattle which are predominately of beef breeding in the calculations to
determine the feeder cattle index.
BE IT FURTHER RESOLVED, NC supports using statistical analysis to exclude market outliers and reduce index
volatility.
A new resolution was proposed and approved. It is titled CME Live Cattle & Feeder Cattle Futures Contracts Price
Limits.
WHEREAS, it is imperative that the CME Live Cattle and Feeder Cattle contracts have daily price limits which are
appropriate to allow the market to function efficiently in times of high volatility regardless of prevailing price levels; and
WHEREAS, recent CME modifications to daily price limits and the inclusion of expandable daily price limits have
had a positive effect on the markets’ ability to trade efficiently during times of increased volatility; and
WHEREAS, having a process in place to allow for review and any needed modification of daily price limits on a
regular time frame would be preferable for all market participants (vs. dealing with the aforementioned issues via
emergency action);
THEREFORE BE IT RESOLVED, Nebraska Cattlemen supports the recent addition of expandable daily price limits
and the concept of variable price limits for CME Live Cattle and Feeder Cattle futures, with the daily price limits for both
contracts being 2.0 percent of the most recent “average settlement price level”, as detailed in CME’s “Proposal for
Variable Price Limits – Livestock” publication dated June 1, 2015.
Addressing another topic, Chairman Schroeder updated the Committee on the progress of NCBA’s research
study on price discovery in the fed cattle market, which is being led by Steve Koontz of Colorado State University.
Koontz recently conducted interviews with a number of NC members as a part of the study, and intends to conduct
further interviews in Nebraska in the near future.
Updates on several legislative topics were presented. NC’s Laura Field Laura Field reported on issues related to
the work of NC’s Immigration Task Force, including the recent passage of LB 623 during the 2015 session of the Nebraska
Unicameral. NC’s Kristen Hassebrook reported on issues related to the work of NC’s Transportation Issues Task Force,
including relevant interim studies resulting from the 2015 session of the Unicameral.
Chairman Schroeder introduced representatives with the Nebraska Federation of Independent Business, who
explained the group’s working relationship with NC – especially in the area of consulting with the Association on
legislative and regulatory matters involving workers compensation issues.
Regarding banking topics, Schroeder expressed his desire for the Committee to spend some time going forward
looking into banking practices in the cattle industry and exploring avenues with might allow members to conduction
financial transactions in a more secure, timely, and more efficient manner. Following discussion, the committee
approved forming a Banking Issues Task Force to look into this area of issues.
The meeting concluded with a producer panel that discussed marketing experiences. Panelists were: Harry
Knobbe – Harry Knobbe Feedyards – West Point; Mark Smith – Gottsch Cattle Co. – Elkhorn; and Roger Wallace –
Elkhorn Valley Feedyard Services – Elkhorn. They shared their thoughts on the current state of the feeder and fed cattle
markets as well as their thoughts on key analytical tools and disciplines they have come to rely upon based on their
extended careers in the industry.
Natural Resources and Environment - Jim Macy, new Director of Nebraska Depart of Environmental Quality,
gave a short presentation introducing himself and emphasizing his plans for transparency and cooperation. Macy said
his department is exploring the idea of creating an inspection template so producers know how to operate under
compliance and be ready for an inspection.
Scott Yager, NCBA’s new Environmental Counsel, said Waters of U.S. regulation is his number one priority this
year. WOTUS has reached the Supreme Court multiple times and continues to be a problem. The EPA’s new rule includes
both good and bad changes. NCBA and other coalition members are focusing on the new definition of river tributary,
defunding options and whether to litigate the issue.
Yager also updated attendees on two other issues NCBA is working on: The Resource Conservation and Recovery
Act (RCRA), enacted in 1976, is the principal federal law in the United States governing the disposal of solid waste and
hazardous waste, and the and Clean Air Act.
NC’s Kristen Hassebrook explained the U.S. Roundtable for Sustainable Beef, including the history on Global
Roundtable and the five principles. NC is a founding member of the U.S. Roundtable for Sustainable Beef. Goals include
identifying sustainability indicators, establishing verification methods and field data collection. Kristen is the NC’s staff
representative for the U.S. Roundtable. The group will encourage stakeholders to show improvements over time in areas
such as water conservation. Kristen will be working to form a task force of NC members to help with the engagement in
the U.S. roundtable.
Lastly, Kristen updated attendees on the Zoning Bill (LB106). With the bill approved, the Department of Ag will
create matrix and counties can decide whether or not to adopt them.
Taxation – NC’s Laura Field gave a review of the 2015 legislative session. NC tax priorities were on policy areas
rather than a particular bill. Those priorities included:
 Increasing money in the property tax credit fund (PTCF). $64 million was added over the next two years. A
better long term strategy is needed than increasing the fund balance.

Ag land valuation decrease from 75 percent to 65 percent. Many bills were introduced related to this subject,
but none passed. NC heard that this wasn't enough and it wasn't a fix that would work but ultimately believe it
is a good beginning step in reform.
 Education funding - This is a bigger conversation than just "fix it," as the formula is complex. NC wants to
continue to look at this, specifically the levy penalty.
 Long term strategy - NC has broad policy that allows flexibility. A long term fix will require 100s of millions of
dollars. Statewide, groups want to see income tax relief and other tax reform, so just getting property tax relief
is likely to be a challenge. NC is committed to being at the table for comprehensive discussions on tax reform.
NC will be engaging members during the interim to get information and input prior to the 2016 session.
Senator Dan Watermeier addressed the committee. He serves on the state Appropriations committee and works
on the budget process. He cautioned members that only 40 percent of property tax credit fund dollars go to ag land
taxpayers. He acknowledged that the reduction in ag land valuation from 75 percent to 65 percent is not the ultimate fix
and believes that much of the discussion will be about education funding and the current state formula since the large
majority of dollars go to urban school districts. Currently, putting more money into the state education formula does
not give rural schools any more dollars.
Senator Watermeier also discussed the state budget growth and the future challenges with maintaining the
growth and holding spending down. He suggested a bigger legislative discussion on spending and funding priorities is in
order.
Senator Al Davis serves on the Revenue Committee and said that the ag land valuation discussion is not going
away. He challenged the group to continue to think “outside the box.” He discussed some of his legislative proposals
and discussed some of the state exemptions – existing and added this year.
Tom Bergquist from the Legislative Fiscal Office discussed fiscal notes and how they are developed. He led a
discussion on how the budget process works and how it is really a 12 month process to get the budget written with
input from the Governor and all state agencies. He also outlined the steps to what the Appropriations Committee and
Legislature consider and discussed how all bills introduced have a fiscal note written.
Fiscal notes are an estimate of the monetary impacts with the input from the agency and anyone else who might
be affected. When possible and appropriate, local government impacts are also considered. Fiscal notes must be
prepared before a hearing, so priority bills often get worked on first. Analyzing the cost of an amendment is often a
challenge as it is not always clear the effect of an amendment on a bill.
NCBA Dues Proposal – During each of the committee meetings attendees received an update on a proposed
NCBA dues increase. The last increased occurred in 2009. NC representatives on NCBA’s Board of Directors will vote on
the issue during the NCBA Summer Conference July 18 in Denver. NC members are encouraged to provide input on the
issue to NC leaders.
General Session – Midyear concluded with four featured speakers. NC’s Laura Field summarized this year’s
legislative session. Scott Yager discussed environmental issues for attendees who had not heard his comments during
committee meetings. Tommy Wheeler, a research leader in the meat safety at the U.S. Meat Animal Research Center,
described priority research projects such as antibiotic resistance. Shawn Eichorst, University of Nebraska Director of
Athletics, described the unique academic success record Nebraska’s student athletes have compiled and are
maintaining.