MOFB President Garrett Hawkins is urging the Trump administration to reconsider plans to increase foreign beef imports, warning the move could further pressure cattle prices and undermine efforts to rebuild the U.S. cattle herd.
“Cattle producers are rightfully frustrated by today’s announcement that President Trump plans to increase foreign beef imports and sell that beef below the cost of production. Americans, including farm families, are paying more for fuel, electricity, housing and nearly everything else. We understand the desire to provide relief to American families facing high grocery costs, but additional market intervention in the cattle market is the wrong approach.
After years of drought, high input costs and a historically low cattle herd, producers are finally seeing strong cattle prices. That income is providing much-needed stability as farm balance sheets remain volatile.
Today’s announcement has already pressured cattle prices and will further erode confidence in the market. For many producers, fall calf sales are the only opportunity to market cattle off the farm. Adding uncertainty does nothing to encourage producers to rebuild the U.S. cattle herd. Decreased confidence in the supply chain has also resulted in a decrease of packing capacity. Meanwhile, farm input prices continue to rise with no meaningful relief in sight.
Washington should let the cattle market work, provide signals that encourage producers to rebuild the herd, and address runaway costs of inputs on the farm.
Importantly, this proposal does not solve the underlying causes of high food prices and unfairly places the blame on American farmers and ranchers. We strongly urge the Administration to reverse this decision and support American cattle producers.”
