Strengthening Livestock Marketing with Mike Vanmaanen

The current cattle market is a hot topic around any coffee pot or small-town café, but did you know that team behind one particular industry group is working to support the livestock marketing infrastructure across our country? 

Founded in 1947, the Livestock Marketing Association is a national, member-led professional organization that works as an advocate for the livestock marketing industry and provides a voice on state and federal legislative and regulatory issues. LMA represents over 80% of all viable, regular-selling (minimum one sale per week) livestock markets in the United States.

On this episode Mike Vanmaanen, president of LMA, joins Angus Beef Bulletin Editor Shauna Hermel to discuss the who, what, when and where of his organization and how LMA is working to create an even stronger market for cattlemen across the nation.  

A huge thank you to Purina for their sponsorship of this episode. 

Find more information to make Angus work for you in the Angus Beef Bulletin and ABB EXTRA. Make sure you're subscribed! Sign up here to the print Angus Beef Bulletin and the digital Angus Beef Bulletin EXTRA. Have questions or comments? We'd love to hear from you! Contact our team at abbeditorial@angus.org.

Transcript

Lynsey McAnally (00:31):
Angus at Work, a podcast for the profit-minded cattleman. Brought to you by the Angus Beef Bulletin, we have news and information on health, nutrition, marketing, genetics and management. So let’s get to work, shall we?

Hello and welcome back to Angus at Work. The current cattle market is a hot topic around any coffee pot or small town cafe. But did you know that the team behind one particular industry group is working to support the livestock marketing infrastructure across our country? Founded in 1947, the [Livestock Marketing Association] is a national member-led professional organization that works as an advocate for the livestock marketing industry and provides a voice on state and federal legislation and regulatory issues. LMA represents over 80% of all viable, regular-selling livestock markets in the United States. I'm Lynsey McAnally and on today's episode, we're joined by Mike Vanmaanen, president of LMA, as well as Angus Beef Bulletin Editor Shauna Hermel, to discuss the who, what, when, and where of his organization and how LMA is working to create an even stronger market for cattlemen across the country.

But before we begin, we want to take a moment to thank Purina for their sponsorship of this episode.

Purina (01:32):
Raising cattle demands great determination and the right nutrition. That's why cattle producers have turned to Purina Animal Nutrition for over 130 years. From starters that help set calves up for success to protein that fuels cattle growth to minerals that keep herds performing, Purina has the products and expertise that work as hard as you do. Get rewarded for your work with proven nutrition from Purina. Learn more at purinamills.com/cattlecare. That's purinamills.com/cattlecare.

Shauna Hermel (02:09):
Hello and welcome to this edition of the Angus at Work podcast. I'm Shauna Hermel, editor of the Angus Beef Bulletin, and we're here today talking with the president of the Livestock Marketing Association. Mike, can you tell us a little bit about your background?

Mike Vanmaanen (02:25):
Yes. My dad was a corn, soybean and hog producer in the state of Iowa.

Shauna Hermel (02:31):
Oh wow. A little bit north of us at the Association!

Mike Vanmaanen (02:34):
That's right. I married into a livestock family and we started back in the family business in 1984. My wife is the third generation into the livestock business and the market ownership business.

Shauna Hermel (02:47):
Oh, really?

Mike Vanmaanen (02:48):
And so yeah, we've always had family members be partners in the livestock business, but a couple of years ago we bought out the rest of the family members and now it's just my wife and I doing it solely ourselves.

Shauna Hermel (03:02):
So cow-calf operation or stockers?

Mike Vanmaanen (03:05):
We started out in the cattle business and her family were always backgrounders and cattle feeders. As the climate has changed for profitability inside the cattle feeding and backgrounding operation, I probably switched over and now I'm a cow-calf operator for about the last 10 years. We'll also background a few calves to go with my own, but predominantly a cow-calf guy.

Shauna Hermel (03:25):
Okay. Talk about your wife's role in the livestock marketing business and kind of how that transpired?

Mike Vanmaanen (03:34):
Oh, my wife was always part of the business as she was growing up. With her dad and her grandfather. She took some time off while we were having children and was very fortunate that she could be a stay-at-home mother.

Shauna Hermel (03:46):
Wonderful.

Mike Vanmaanen (03:47):
But yeah, when our kids got older and started leaving the house, she got really involved and now, she's my absolute business partner. It's a good relationship that she kind of leaves the running the back of the sale barn and getting the cattle sold and arranged to me. And when it comes to running the office and getting the bills paid and collecting all the money, I'm trusting her to get that done.

Shauna Hermel (04:12):
Well, it's wonderful to be able to work together, isn't it?

Mike Vanmaanen (04:14):
That's one of the advantages. It's a joy for me anyway, that we can work together and you got to learn that business stays at the sale barn and when you get home that it's time for the business to end sometimes.

Shauna Hermel (04:28):
Well now you've become president of the Livestock Marketing Association. When did you take over that responsibility?

Mike Vanmaanen (04:34):
I took over that position in June 2024 at our annual convention. This is a two-year term, so I will be completing my term in June 2026.

Shauna Hermel (04:47):
Okay. You may see some of the highest cattle prices we've had in a while during your term.

Mike Vanmaanen (04:52):
Well, you do realize that happened under my presidency for a reason, right? No, there's lots of variables that have brought this high cattle market on. It is a blessing to see that. I think it is kind of our turnover due to the profitable side of the cattle sector and I think - and hope - that all phases ... people that own cattle in the different cow-calf operations or background fed cattle? That in this upcycle that their inventory is inflated in price and we've all made some money throughout this time period.

Shauna Hermel (05:25):
You bet. You bet. It's kind of a wonderful phenomenon that we can have as many consumer dollars flowing into our industry as we do and share that up and down the supply chain.

Mike Vanmaanen (05:39):
Yes, that is true. To me the cattle cycle market always runs in about a 10 year cycle. I think we all knew that we were going to be heading into some good years coming in 2024 and 2025. I don't think any of us anticipated, maybe, that the market would get to this level of where it is today. My hope and the people I talk to really feel like this time the high could plateau and level off instead of just climbing the mountain and tipping over. So that is my hope and where I think the cattle market could be going. We haven't seen heifer retention start back up yet, and our numbers are still low. So I think we could see a good cattle market for the next two to three years.

Shauna Hermel (06:20):
One of the things that when prices are high, we hear that cow-calf producers might not market as much. They tend to say, 'Well, the prices are high enough, I'm just going to haul them to town on my regular day." What are they missing out on?

Mike Vanmaanen (06:36):
I think I have seen with the market being high that some of the cow-calf guys have changed their marketing normal plans over this year and maybe starting last year, that they're pulling those calves forward quicker than they have in the past. People that used to sell a Vac-45 calf might be selling a bawling calf with shots in it or people that would make yearlings out of them are selling the Vac-45 calves. Yeah, the market has been high enough and the dollar per heads adds up to what they're looking for. And so it's sped up some of the marketings and I'm a believer that maybe the hole is still yet to come in feeder cattle that we haven't seen that yet.

Shauna Hermel (07:17):
What are some of the initiatives that the Livestock Marketing Association has in front of it today?

Mike Vanmaanen (07:23):
So we still have daily things that we work on all the time. Whether it's prompt payment issues for us and the mail service is bad or it's the A+ Act, which is, oh, if I had a local meat shop in my town that was going to sell but because I don't livestock market, I'm not allowed to be in the meat packing business or the small butcher shop business either. And we have members that would like to participate in little regional packers or meat shops and we're trying to get that changed within the act so that we are allowed to do that for our communities. Most of our markets are in small town communities and when a business comes up for sale, sometimes it takes somebody else to step in and buy that and be the financial support. And sometimes we'd like to fill that role, but we're just not allowed to by the law.

Shauna Hermel (08:15):
And it wasn't necessarily set up to prevent a local auction market.

Mike Vanmaanen (08:21):
It wasn't. This extends way back from when the huge stock yards were transacting businesses. The way of marketing cattle and the way away from the large terminal markets have changed dramatically. And this law was written in 1921. So we're not out to change the whole law, but just to make tweaks to it that allow us to do business in today's environment.

Shauna Hermel (08:42):
So how do you go about changing that? How are you working here at the national?

Mike Vanmaanen (08:48):
For us to change it, you have to get industry partners comfortable with it, and we always try to get industry partners along on our side so they understand why we would want to do that. And then you have to go to Washington and find some partners that will champion a bill for you and try to get that passed. But without industry unification most of the time it's pretty hard to get that done.

Shauna Hermel (09:11):
Now the Livestock Marketing Association has been working on some of that unification and a unified voice with your next generation adding profitability. Can you speak to that a little bit?

Mike Vanmaanen (09:24):
We find that over the last several years we have talked about - when we have cow sales at our markets - that we are selling cows for producers that are disappearing from within their generations and maybe those acres will never go back into cattle production anymore. And so we have always talked about how we're going to keep the cow-calf guy in business, how we're going to get it to roll over to a next generation or - if there's not a next generation interested in taking that over - how somebody established could mentor maybe somebody from outside of agriculture and bring them in. Teach them the business, but to maintain those cow numbers to maintain our grazing acres and our forage production within the United States. So in our markets, there's lots of people that do not belong to a producer organization or affiliate of one. So they come to us for advice. And it's not that we ever want to be a producer organization, but we want to take care of our customer base because without that customer base, our markets wouldn't be very financially strong or be able to survive also.

Shauna Hermel (10:32):
You bet. So how are some of the ways that we can encourage the next generation to come back into the business?

Mike Vanmaanen (10:40):
I think it all has to be incentivized. There's lots of jobs that people can have across this country with benefits. They might not have to work 80 to 100 hours a week. And so we have to find ways to incentivize the young people that they can make as good a living, working in production agriculture. And I think that has been a struggle over the last few years. And so part of maybe it titled the Producer Profitability Wrong, and we should have titled it Producer Opportunity. We need to provide the opportunities for these younger people and younger generations to come back and make a living and be able to support their families.

Shauna Hermel (11:23):
And as you said, whether that be somebody three generations or five generations into the business. Or maybe somebody just wanting to get into the cattle business. We have a lot of 4-Hers that are coming from out of agriculture, but wanting to get into a livestock situation. And it might bode well for us.

Mike Vanmaanen (11:46):
You know what, in today's environment as high as cattle are, it takes a lot of capital and ...

Shauna Hermel (11:52):
Land hadn't gotten any cheaper either.

Mike Vanmaanen (11:54):
And land. That's exactly right. And part of what we have to look at, this land can be used for so many different things in today's environment. Whether it's suburban sprawl or it's a windmill or solar energy or it's competing against other production agriculture in corn and soybeans that we have to leave enough profit in these cattle so that this land can still be used for cow-calf operators and it doens't just get taken out by somebody that can make more money off that acre of land than we can.

Shauna Hermel (12:27):
Let's maybe switch gears a little bit and talk about some of the changes that have happened in the livestock marketing operation from the time your wife's family started the business until now. What are some of the differences people can expect when they go to a local livestock auction?

Mike Vanmaanen (12:45):
I think a lot of the differences is maybe the change in the cattle. When I started a yearling heifer, which we used to buy a lot of and feed, would weigh 500 pounds, and now we're selling well vaccinated calves that are 700 pounds. So we've improved the genetics of these cattle a lot over the years. Also when I started, I don't ever remember that vaccinations and weanings were as important as they are in today's environment. That the cattle that move into big feed lots and corporate lots, death loss and sick animals has become such an added expense that the more we can get an animal ready for the next owner, the more profit, the bigger priceless cattle are going to bring when they go through an auction market or even in a private treaty, that's the more they're going to bring.

So I think that has really become evident specifically in the auction business. One thing that blows my father-in-law's mind - who's not involved anymore but always calls and asks a lot of questions - is that he cannot hardly believe that we all have internet services now where we are taking bids at the speed of commerce from buyers all across the United States. Even though my market might be in Missouri, that can happen at the speed of commerce and we're marketing cattle to people that are watching on a video and then bidding as fast as what somebody sitting in our seats right there is bidding.

Shauna Hermel (14:22):
So have you found those buyers being, whether they're online or sitting in the seats, are they more selective today? Do they want to know more history on those cattle, on genetics, on the health protocols you mentioned?

Mike Vanmaanen (14:35):
They are. I've always thought that as a market owner, it's not necessarily my job unless somebody really needs help to go out and get in somebody's management business of their cattle. So I've never been one that said, "These genetics are going to outsell somebody else's genetics." I've always thought it was my job to find buyers for whatever you want to bring to my market and sell and get the best price for them that I possibly can. Now when somebody ask my opinion, of course, a black hided animal weaned for 60 or 90 days with two rounds of shots in it and good feeding condition is going to top the sale. And if you want your cattle to top the sale, you're going to have to work real hard to get them in that kind of condition to be what the buyers want to buy.

Shauna Hermel (15:19):
Do you have more people coming to you and asking for that type of assistance?

Mike Vanmaanen (15:24):
I think that as we move forward in the last few years and moving forward, that yes, we do see more people coming and asking for that assistance or asking for our opinion. And I'm careful about giving them opinions that I think that is not just mine, but is also within the industry. And some people are willing to listen. Some think they're already doing a good job and don't want me to interfere. So you got to know your customer and really what the information they're after, it's easy to be at an auction and see what tops the sale. And I always tell people that that's what the top is. When you start varying from that, I'm not saying you're doing it right or wrong, but the price per hundred is going to change and you just have to figure out where you want to play in that market space.

Shauna Hermel (16:12):
Now do you all do more with video marketing? We see big video sales in the springtime. Local auction markets are getting more into that too, aren't they?

Mike Vanmaanen (16:26):
There are more people that own fixed facility markets that are also getting into having video sales and selling their big customers and pot loads maybe on video. But bring some of the sort offs and the weigh ups and stuff into their markets and auction them off. I believe a good market person in today's environment has to be ... we have to open up ourselves up and realize that a fixed facility market may not be for everybody. That's my belief. And I think that we still need to bring cattle there, but to be a good marketer when we show up at a guy's place, whether he wants to bring them to our fixed facility or he wants us to help move him off of his ranch or he wants to sell them on a video, if we're going to be well-rounded, we have to maybe provide that service to satisfy the customer. Or someday we may wake up and somebody else has his business instead of us.

Shauna Hermel (17:17):
So let's talk whether maybe the top two or three goals that you have to accomplish while during your tenure as president.

Mike Vanmaanen (17:27):
My top two or three goals is when I started my term, I met with some of our senior staff and said that, not that we've been doing a bad job with LMA, but we got to evaluate who we are as an organization, what the future might bring and the tools that our membership will need and start trying to prepare and guess what that could be for our members so that we can serve them better. We also have more, whether it be emergency management issues coming in front of us in today's environment or different things that we used to be a three committee organization: our convention and World Champion Auctioneer being one, Government Affairs being one and Member sServices being one. Now that we have busted up our committees and developed some new ones so we can do specialized work more in some areas ...

Shauna Hermel (18:23):
What are those new committees?

Mike Vanmaanen (18:24):
Well, one of them is Market Access and Viability. To make sure that no matter what program cattle might enter or how they're tagged or how they've been handled, we would like to have the opportunity in some fashion to still be able to market those cattle for any customer that is out there. So I think we have to look at that in that committee, but not only for the feeder cattle to sell, but for what the feedlots or the packer or whatever type of animal we're auctioning off that we're meeting their needs and their demands also. So that would be one of them. Another new one is an Emergency Preparedness committee that if there was ever a disease outbreak in the United States and we have cattle selling at our markets that day, and there would be a stop movement act.

Shauna Hermel (19:21):
You might have a barn full of cattle.

Mike Vanmaanen (19:23):
Well, somebody's going to have a barn full of cattle that day and instead of us being told how this is going to happen, we just want to be a voice and help in the planning of that so that it works out for our membership also. And so it's a hard topic to talk about, but the more we can be prepared for that, the better off we're going to be if that day ever comes. So that's another committee that is doing some good work.

Shauna Hermel (19:51):
Now, the Livestock Marketing Association has begun some insurance-type offerings too, correct?

Mike Vanmaanen (20:00):
LMA has always been in the insurance business. That is really part of why LMA was founded is that there was markets that couldn't find insurance protection. And so, yeah, we started an insurance company years and years ago to provide that service to markets and we still offer that service - whether it be the fixed facility or it be the animals themselves. We are a well-rounded insurance company and also we can help people with bonding that they need and their bonding requirements. And it has probably been maybe over the last 20 to 25 years that we've really gotten involved in maybe the government and industry affairs work that we are doing. And that seems like now that we spend a lot of time there, but we've always been, I'm not saying that we an insurance company, but we've always sold insurance and provided that to our members. In today's insurance markets, everybody knows how their insurance costs are going through the roof. And maybe in some places companies won't even write certain type insurance anymore. We try to provide that service for whatever our members need.

Shauna Hermel (21:20):
Okay. Now, not all livestock auction markets would be members of LMA, correct?

Mike Vanmaanen (21:27):
That is correct. We are about 825 or 35 members strong. We represent probably 85% of fixed-facility markets. We also have dealers that are members. We represent dealers also. But you're right, not all markets are members, but we do 85%, not all those 85% would buy insurance from us, but that's okay. It's a service that we provide, and if they need insurance that we're willing to step up and take care of their needs, but they still get the services of what we do and representing them in Washington and forming policies for them and help with the regulations that they have to abide by. We're working for all markets. It's a good thing that we can get 85% of them to be a part of our membership.

Shauna Hermel (22:28):
And what does that give those livestock auctions to be a member? What benefits do they get from membership?

Mike Vanmaanen (22:37):
Well, we are a grassroots up organization. So it gives them a voice of changes or something that they need and want to be worked on that that can go into committee work. It has to be passed through a committee before it ever comes to our full board for a decision so they can have a voice in things that we are working on. It also provides them - with their membership - 10 hours of legal services a year if they need that. And the opportunity that if they need insurance, we can provide that for them. If they need bonding, we can provide that for them. But there's lots of services that we have for what our membership actually costs. It's a good value.

Shauna Hermel (23:26):
Now you all have a convention that kind of goes along with that livestock auctioneering championship that you mentioned. And that's in June?

Mike Vanmaanen (23:36):
That's generally in the first half of June this year. The convention is going to be in Omaha. The contests will be held right across the line in Dunlap, Iowa. And yeah, it's a great event. Not only for our members to come into, meet us all and to get involved, but it's great for people who don't know a lot about our industry and what we do. To come and sit through some of our meetings and just be part of seeing what we're doing. Getting to view the contest. And it's a highlight to see some of the best auctioneers across the country get up and showcase their talents. It's a neat event that I think most people would enjoy if they'd come and help and view it.

Shauna Hermel (24:20):
And now that begins with regional contests, right?

Mike Vanmaanen (24:23):
That does. We have three regional contests throughout the United States. We try to spread those out at different times during the week, and we try to hold one in the east, the west and the central United States. And so it works out that no matter when a guy has his sales that he is selling during the week, that he could travel across to some part of the United States and maybe find a day that works for him and doesn't interfere with his schedule. And then the Top 10 out of each one of those regional contests gets to come to the big contest at our convention. So we have 30 of the best United States auctioneers that come that way. And then the international champion out of Canada. If he is a livestock selling auctioneer, then the Canadian International Champion is also part of that contest.

Shauna Hermel (25:14):
And so those regional selections have been done for this year, right?

Mike Vanmaanen (25:21):
Those 30 or 31 contestants have already been selected for this coming June. Normally as soon as June is over, then the regional contest will start over the following year, maybe in August. We'll have that completed by January. So as soon as one contest is over, we start ramping up for the next one.

Shauna Hermel (25:40):
Well, that's quite a feather in somebody's cap to win that. To win on the regional level, let alone get up to the championship. And they do more than just the auctioneering. They do a interview process in the qualifying round?

Mike Vanmaanen (25:55):
It's all on the auctioneering and behind the [microphone] when they get to the big contest, then 25% of their score is part of the interview. That score on the interview does carry into their auctioneering ability to be tabulated to come up with being who's going to be the champion.

Shauna Hermel (26:17):
There's nothing like listening to an auctioneer's chant and adding energy to it.

Mike Vanmaanen (26:26):
There's very few of them that sound the same. They all have their own style and styles kind of also change as you move across the country. And our judges come from all across the country, so that's spread out so they don't come out of the same area so that maybe they like the same person, but it is a pretty neat event. And yeah, these younger guys are really, really talented and they really work at their craft. And part of the reason we have the interview process then is because we do use them as spokesman through their reign as the champion, and they do a good job being a spokesperson and a public figure for us then while they're also the champion.

Shauna Hermel (27:07):
Oh, wonderful. Wonderful. Well, is there anything you'd like to leave our audience with?

Mike Vanmaanen (27:14):
I would just like to tell your audience that if you have cattle to sell and are not presently selling at a livestock market, go visit with your local livestock market. Explain to them what the type of cattle you have, how you've been marketing them. Ask them if they think that they can provide you with service. One thing, I want you to know that we do south audits on ourselves to make sure that we are handling the cattle correctly. Our facilities are set up to provide hay and water while those cattle are at our places. Nearly all of them are trained not only to care for your cattle, but to get them sorted into groups so they bring the most money. And also that we provide them a check the day of the sale. That is a guaranteed check through our custodial trust accounts. If you're not selling at a current market, go visit with your market and give us a chance to at least have the opportunity.

Shauna Hermel (28:19):
Wonderful. Well, thank you for joining us today. We like to end our Angus at Work podcast with just a high note of something special or something good that's going on in either your professional life for your personal life. So do you have something you'd like to share?

Mike Vanmaanen (28:37):
I always feel that I've been one of the luckiest people in this world. That I think my life has always been on the fortunate side. We've all had tragedies, but my successes or not my successes, but the good things that have happened to me has always outweighed any of the negatives. And I think no matter what we are doing, we have to have a positive attitude and always look to the future and know that we can make a change in it and make it better.

Shauna Hermel (29:04):
Wonderful. Well, thank you. I appreciate you being here!

Mike Vanmaanen (29:06):
Thank you, Shauna.

Lynsey McAnally (29:13):
Listeners, for more information on making Angus work for you, check out the Angus Beef Bulletin and the Angus Beef Bulletin EXTRA. You can subscribe to both publications in the show notes. If you have questions or comments, let us know at abbeditorial@angus.org and we would appreciate it if you would leave us a review on Apple Podcasts and share this episode with any other profit-minded cattlemen. Thanks for listening. This has been Angus at Work!