Cattle ranchers rattle fences after Trump opens U.S. gate to Argentina

There aren’t many politicians — not even U.S. President Donald Trump — who could get away with claiming credit for pushing beef prices to historic highs while at the same time telling producers they need to drop their prices.

“The Cattle Ranchers, who I love, don’t understand that the only reason they are doing so well, for the first time in decades, is because I put Tariffs on cattle coming into the United States, including a 50 per cent Tariff on Brazil. If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible! It would be nice if they would understand that, but they also have to get their prices down, because the consumer is a very big factor in my thinking, also!” Trump posted on his Truth Social account this week.

He’s not getting away with it. Not this time.

The post — which characteristically was not rooted in facts — coincided with his decision to quadruple the volume of Argentinian beef allowed into the U.S. tariff-free. The cattle futures market tumbled and producer organizations were fuming.

The release headlined “President Trump undercuts America’s cattle producers,” aptly sums the general reaction from cattle ranchers and farmers.

“The National Cattlemen’s Beef Association and its members cannot stand behind the president while he undercuts the future of family farmers and ranchers by importing Argentinian beef in an attempt to influence prices,” said NCBA CEO Colin Woodall. “It is imperative that President Trump and Secretary of Agriculture Brooke Rollins let the cattle markets work.”

That statement went on to suggest instead of manipulating the markets, a “true ally of America’s cattle producers” would invest in protecting producers from encroaching pests such as the New World screwworm, a parasite that burrows into livestock and eats it alive. It has resurfaced recently in Mexico for the first time since the mid-1970s, prompting the U.S. to shut its borders to Mexican cattle, cutting off the supply for southern feedlots.

Or if Trump suggested the government could bolster defences against foreign animal diseases or declare open season on domestic predators, such as the grey wolf and vultures. Instead, it’s opening its market to more beef from Argentina, a potential source of the industry-crippling foot-and-mouth disease.

“Efforts to manipulate markets only risk damaging the livelihoods of American cattlemen and women, while doing little to impact the price consumers are paying at the grocery store,” Woodall said.

American farmers have been loyal Trump supporters, but this move comes on top of a growing list of measures causing economic harm, uncertainty and lost opportunities for farm country. A monthly survey of banks in the American Midwest by Omaha-based Creighton University reported last week that three out of four lenders are reporting a decline in economic activity due to low commodity prices and the negative effects of tariffs.

It’s laughable, but not funny.

In the aftermath, the administration quickly released a policy paper outlining how it plans to “fortify the American beef industry.” The long list of promises spread over 13 pages appears to be little more than tweaks of existing policies — and a commitment to start enforcing a Biden-era meat labelling rule.

As of January, U.S. food inspectors will enforce compliance with a rule that says any meat labelled as a PUSA (Product of the USA) must come from animals born, raised and slaughtered in the United States.

This is ominous for Canadian producers who ship live cattle to the U.S. for feeding or processing.

Canada ships around 800,000 head of cattle across the U.S. border annually. A processor isn’t required to use the USDA label, but if they do, they must segregate the U.S.-born cattle from imports, which adds more costs to a sector already struggling with low margins.

This will drive down producer prices on both sides of the border as processors pass those costs back through the supply chain, threatening the profitability of producers and feeders.

That’s going to drive consumer prices even higher because it will dampen rather than boost growth of the U.S. cattle supply. Don’t put your back out taking a bow, Donald.

Laura Rance is executive editor, production content lead for Glacier FarmMedia. She can be reached at lrance@farmmedia.com