American Farm Bureau Federation (AFBF) recently called on USDA to take steps to ensure America's...
Trump Administration Moves to Expand Beef Processing Options, Competition
President Trump has signed a pair of executive orders (EO) that address market access and competition for America’s farmers and ranchers.
During a signing ceremony recently, the President said the goal is to improve the financial viability of producers. “The livestock industry has been ripped off by a meat-packing monopoly, which we are probably taking care of pretty well today, driving down what ranchers earn. They were charging them numbers that were unsustainable.”
The EO asks the USDA for robust enforcement of the Packers and Stockyards Act, requires several agencies to assess current regulations, evaluates the impact of gray wolves under the Endangered Species Act and reviews country-of-origin labeling.
He says one of the orders allows producers to process, package and sell meat across state lines, in an effort to bypass the country’s largest processors. “They’ll have inspections. They’ll have inspectors just like the big plants have them, but I would be willing to say that our ranchers will be more sanitary than those plants. I think it’s going to be a great thing.”
American Farm Bureau President Zippy Duval, who attended the signing, says it will help small, beginning and young producers grow their herds “by being able to slaughter or harvest their animals closer to home and being able to give sales directly to the consumer.”
Ag Secretary Brooke Rollins says the administration’s plan helps provide long-term certainty for the industry. “We have to protect this way of life for the future for the 1st gens, but for also the 7th, 8th and 9th gens.”
The President also addressed where the U.S. would be sourcing 300,000 metric tons of ground beef. “It’s coming from Argentina. It’s coming from Brazil. It’s coming from a couple of other places. We have our inspectors down there. It’s very clean it’s very good.”
Ethan Lane, senior vice president of government affairs for the National Cattlemen’s Beef Association (NCBA) says, “From producers’ perspective, it was disappointing to hear the President talk about how excited he is that beef prices are coming down. Cattle producers around the country have lost 10’s of millions of dollars in the last few weeks alone, given these market shocks from this latest round of imports.”
“NCBA strongly supports increasing competition in the cattle markets and creating more opportunities for small and regional beef processors. We also support eliminating unnecessary regulations that make it harder for those businesses to compete.
America's farmers and ranchers know how to produce safe, high-quality beef. American consumers trust the beef we produce. Washington needs to stop trying to manage the cattle business and let the market work.”
The Meat Institute issued the following statement regarding President Trump's announcement that he is authorizing farmers and ranchers to process their own meat:
"America's farmers and ranchers already have multiple pathways to process and market the livestock they raise that can be leveraged to achieve the goals stated by the President today. Allowing uninspected meat to be sold to unwitting consumers is the wrong approach, and risks undermining this country's reputation for producing the safest meat products in the world.
If the goal is to lower beef prices for American families, lowering food safety standards is the wrong response: America needs more cattle.”
EDITOR’S TAKE:
The Administration’s move to lower beef prices has obviously been met by less than enthusiastic support from the NCBA and the Meat Institute. Let’s face it, increasing the herd size and, thus supply, is a slow process. It has been like the perfect storm where the herd size has decreased, demand increased and tariffs and import restrictions caused by animal disease all surfaced at the same time. The result was higher prices for beef at the grocery store and in restaurants. Unfortunately, consumers were less willing to substitute other protein sources for beef and prices remained higher than normal for longer than normal. Will the new measure work to bring increase supply and lower prices – that is yet to be determined. Will public health be jeopardized – not likely.
Keep beef producers in your area at the very top of your ag customer prospect list. You might even remind them of the full depreciation available on their taxes when they buy a truck or two this year.
