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[Federal Register Volume 65, Number 124 (Tuesday, June 27, 2000)]
[Notices]
[Pages 39587-39589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16150]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[No. LS-99-09]

United States Standards for Grades of Feeder Cattle

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: The Agricultural Marketing Service is changing the official 
U.S. standards for grades of feeder cattle. The changes adjust the 
minimum requirements for the muscle thickness grades and increase the 
number of grades from three to four to accommodate thicker muscled 
cattle and reflect current marketing practices. Also, the frame size 
grades are updated (increased minimum weights) to reflect the genetic 
changes that have taken place in the cattle population since the 
current standards were adopted in 1979. Industry and other groups, 
including

[[Page 39588]]

State Departments of Agriculture that officially grade feeder cattle 
for marketing programs, requested that these changes be made. The 
updated standards more accurately represent today's population of 
feeder cattle and thus should provide the industry with more meaningful 
market evaluations.

EFFECTIVE DATE: October 1, 2000.

FOR FURTHER INFORMATION CONTACT: Herbert C. Abraham, Chief, 
Standardization Branch, Livestock and Seed Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, Room 2603 South 
Building, STOP 0254, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-4486 or [email protected].
    The updated U.S. Standards for Grades of Feeder Cattle are 
available either through the above addresses or by accessing this web 
site http://www.ams.usda.gov/lsg/stand/st-pubs.htm.

SUPPLEMENTARY INFORMATION: Section 203(c) of the Agricultural Marketing 
Act of 1946, as amended, directs and authorizes the Secretary of 
Agriculture ``to develop and improve standards of quality, condition, 
quantity, grade, and packaging and recommend and demonstrate such 
standards in order to encourage uniformity and consistency in 
commercial practices * * *'' AMS is committed to carrying out this 
authority in a manner that facilitates the marketing of agricultural 
commodities and makes copies of official standards available upon 
request. The United States Standards for Grades of Feeder Cattle do not 
appear in the Code of Federal Regulations but are maintained by USDA.
    AMS is updating the United States Standards for Grades of Feeder 
Cattle using the procedures that appear in part 36 of title 7 of the 
Code of Federal Regulations (7 CFR Part 36). These changes are the same 
as those proposed in the September 23, 1999, Federal Register (64 FR 
51501).

Background

    The United States Standards for Grades of Feeder Cattle were last 
modified September 2, 1979. These grade standards were originally used 
more extensively in the Eastern United States where marketing feeder 
cattle by commingling ownership and packaging by grade and weight is 
popular due to the small average cow herd size. Nonetheless, the feeder 
cattle standards have become the descriptive standards of choice by 
most of the feeder cattle industry nationwide. More importantly, these 
standards have served to educate the industry about the importance of 
frame size in feeder cattle and how frame size relates to an animal's 
predetermined, market ready weight. Additionally, the standards 
emphasize the importance of muscle thickness as it relates to the beef 
cattle industry.
    Significant changes (genetic and management) have taken place in 
the feeder cattle segment of the beef industry since the 1979 grade 
standards were adopted. The industry has moved from essentially four 
basic breeds in the 1950's to nearly 100 in the 1990's, resulting in a 
dramatic effect on the basic genetics of the beef cattle population. 
Consequently, feeder cattle type--as it relates to mature size--has 
also changed dramatically. This, linked with changes that have occurred 
during the same time period in feeder cattle management practices, has 
caused a growing concern by USDA that the feeder cattle standards had 
become outdated since their adoption 20 years ago.
    The feeder cattle grades are based on differences in frame size and 
muscle thickness--two of the most important genetic factors affecting 
merit (value) in feeder cattle. Frame size refers to the animal's 
skeletal size--its height and body length--in relation to its age. 
Frame size relates to the weight at which, under normal feeding and 
management practices, an animal will produce a carcass of a given 
grade. Large framed animals require a longer time in the feedlot to 
reach a given grade and will weigh more than a small-framed animal 
would weigh at the same grade. Muscle thickness is related to muscle-
to-bone ratio at a given degree of fatness and hence, carcass yield 
grade. Thicker muscled animals produce a higher percentage yield of 
lean meat. The 1979 feeder cattle grades recognize three frame size 
grades and three muscle thickness grades. The three frame sizes were 
Small Frame, Medium Frame and Large Frame. The three muscle thickness 
grades from the thickest to the thinnest were No. 1, No. 2 and No. 3.

Proposed Standards

    USDA entered into a project with Colorado State University (CSU) 
funded by the USDA, AMS, Federal/State Market Improvement Program to 
determine: (1) The live weights at which the current population of 
Large, Medium, and Small framed feeder steers and heifers attain a 
degree of finish associated with a carcass quality grade of low Choice, 
and; (2) an effective approach for stratification of feeder cattle into 
muscle thickness categories that reflect eventual differences in 
carcass muscularity and ultimate USDA Yield Grade.
    Results of the CSU study showed that the weight limits for Medium 
frame cattle were too low. The consist of the cattle population had 
changed drastically over the past 20 years since the standards were 
initiated. The number of popular breeds in the 1970's was a mere 
handful compared to nearly 100 registered breeds today. Most of these 
breeds are larger framed breeds that have had quite an impact on the 
mature and finished weights of our cattle supply.
    The industry also saw a need to change the muscling specifications 
so thicker muscling is recognized. This was particularly true at graded 
feeder cattle sales, where under the 1979 system the very best muscled 
cattle were sold in the same pen with cattle that have muscling 
``close'' to dairy type. These restructured muscling guidelines, 
recommended by the States through the National Livestock Grading and 
Marketing Association and used in the CSU study, distribute cattle more 
evenly among the muscle grades.
    Therefore, it was proposed in a September 23, 1999, Federal 
Register notice that the minimum weights specified for frame size 
grades be increased to more accurately reflect today's beef cattle 
population. It was also proposed to adjust the muscling grades to more 
effectively identify carcass USDA Yield Grade differences among feeder 
cattle and reflect current marketing practices.

Comments

    A 60-day comment period, which closed on November 23, 1999, was 
provided for submission of comments. The number of comments submitted 
prior to the close of the comment period was 11. In addition, four 
comments were received after the close of the comment period. These 
four comments were similar to other timely received comments that were 
supportive of the proposed grade change. All submitted comments are 
part of the public record on the proposed change and are available for 
public review. The number of comments received from industry segments 
is as follows: Rancher (1), State Agricultural Associations (3), State 
Departments of Agriculture (3), University (1), Feedlot (2) and Feeder 
cattle procurement (1).

Evaluation of Comments

    Most of the comments supported the proposed change to the feeder 
cattle standards, stating that the proposed standards would more 
accurately represent the industry's population of feeder cattle in 
relation to frame size and muscle scores. Four of the

[[Page 39589]]

supporting comments further expressed concern over the potential impact 
on the Chicago Mercantile Exchange (CME) Feeder Cattle cash settlement 
price. They requested AMS analyze the potential impact on the current 
market situation using the 1979 Feeder Cattle standards and the 
proposed standards. Market News evaluated a limited number of markets 
during September/October 1999 and November/December 1999. The 
evaluation determined the number of cattle identified as No. 1 muscle 
score will decline, however the average cost per hundred weight will 
increase. This information will allow the CME to make any appropriate 
adjustments in feeder cattle future contracts.
    One comment focused on muscling and its lack of importance to lean 
yield. However, current research indicates that truly heavy muscled 
cattle are not sufficiently recognized by the current standards to have 
an impact in the price discovery process. One comment interpreted the 
proposed standard as being initiated by USDA, AMS and not as an 
industry driven, research supported modification to the current 
standards. As discussed previously, the update of the standards is 
supported by the CSU study and the request for the update was initiated 
by industry and other groups, including State Departments of 
Agriculture, that officially grade feeder cattle for marketing 
programs. The updated standards more accurately represent today's 
population of feeder cattle and thus should provide the industry with 
more meaningful market evaluations.
    In consideration of the submitted public comments, and all other 
available information, USDA is revising the official U.S. Standards for 
Grades of Feeder Cattle by modifying the frame size parameters as shown 
in Table 1.

                       Table 1.--Weight/frame size
------------------------------------------------------------------------
                                                    Steers      Heifers
                   Frame size                       weight,     weight,
                                                     lbs.        lbs.
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Small...........................................        1100        1000
Medium..........................................   1100-1250   1000-1150
Large...........................................       >1250       >1150
------------------------------------------------------------------------

Also, the changes adjust the minimum requirements for the muscle 
thickness grades and increase the number of grades from three (3) to 
four (4) to accommodate thicker muscled cattle. In order to allow the 
industry sufficient time to update its current system, the updated 
standards will be implemented October 1, 2000.

    Authority:  7 U.S.C. 1621-1627.

    Dated: June 21, 2000.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 00-16150 Filed 6-26-00; 8:45 am]
BILLING CODE 3410-02-P
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