Notes from the cattle meeting in Denver:

It's clear there is a growing division between the leaders of the National Cattlemen's Beef Association and Cattlemen's Beef Board over what to do with the Federation of State Beef Councils. The CBB Executive Committee voted to form an ad-hoc group that would include outside organizations to examine how to separate the federation from NCBA. Meanwhile, the federation members will likely have their own vote Friday on a resolution that would essentially say the federation wants to stay aligned with NCBA. It's difficult to see federation members voting to breakaway from NCBA when state beef council executives and board members have a seat at NCBA's Executive Committee.

Another key topic Friday will be a discussion on how cattle producers can grow the national herd. NCBA chief economist Greg Doud said the industry needs to look at the reasons why cow-calf producers haven't been expanding their breeding herds despite cycles of profitability. It goes beyond natural weather issues as a lot of key cow-calf states have come out of the drought cycles that affected them over the last decade. Doud said banking challenges could be a factor. Producers may not be getting positive feedback from their bankers over the idea of holding back heifers and increasing the herd.

One more element coming out of the meeting. NCBA will definitely be more vocal in going after the USDA livestock competition rules after the meeting. NCBA has been relatively quiet compared to other groups on the issue, but NCBA lobbyist Colin Woodall has been explaining the potential negative impacts of the proposed rules to producers at the meeting. You can expect NCBA to be more aggressive in the coming weeks.

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