By Scout Nelson
The U.S. cattle industry is facing a major supply challenge as cattle inventories remain at a 75-year low. Ranchers are also working to recover from more than a decade of difficult market and production conditions.
In response, U.S. Senator Kevin Cramer of North Dakota and more than 50 lawmakers are urging the federal administration to support policies that provide greater certainty for American beef producers.
The lawmakers are asking for policies that encourage long-term stability in the domestic cattle industry. They also support efforts to expand international markets for American beef.
Cattle prices naturally change over time. Supply, demand, and competition all play an important role in determining prices. When supplies are tight, prices can increase. When supplies rise, prices may move lower.
This market cycle is a normal part of cattle production. Ranchers make decisions based on current market conditions while also preparing for future changes.
Some policymakers have discussed increasing beef imports or changing tariff quotas as a way to increase beef supplies and reduce prices. The lawmakers say such steps could create challenges for domestic cattle producers.
They argue that American ranchers already face many risks. Weather, feed costs, labor expenses, market changes, and other production costs can affect the financial health of cattle operations.
The letter from the lawmakers highlights the work ranchers do to maintain food production while dealing with changing market conditions.
“American ranchers work diligently to do more with less, weather volatile markets, and provide a safe food supply,” wrote the lawmakers. “Cattle markets are cyclical, and ranchers use the upswings to prepare for the inevitable downturn. Any intervention in the natural system, especially at a time when producers are making marketing decisions, threatens to pick winners and losers and undermine the long-term viability of family-owned cattle operations throughout the supply chain.”
Low cattle inventories can also affect the wider beef supply chain. Feed suppliers, livestock markets, meat processors, retailers, and consumers are all connected to the cattle industry.
For this reason, changes in trade and cattle market policies can have effects beyond individual ranches.
The lawmakers are calling for policies that focus on long-term market stability rather than short-term changes. They also want policymakers to work closely with cattle producers and other people involved in the livestock industry before making major changes.
“As you consider policy changes which could impact American livestock producers, we urge you to prioritize proposals which deliver long-term market stability and confidence while consulting closely with impacted stakeholders,” concluded the lawmakers. “We are eager to work together to deliver certainty for American cattle producers while continuing to deliver safe, affordable, and high-quality American beef.”
Expanding overseas markets is another important part of the lawmakers' message. Strong export opportunities can create additional demand for American beef and provide more market options for producers.
The effort has support from several U.S. senators, including Bill Cassidy of Louisiana, Steve Daines of Montana, Deb Fischer of Nebraska, Chuck Grassley of Iowa, John Hoeven of North Dakota, Jim Justice of West Virginia, and Pete Ricketts of Nebraska.
More than 40 members of the House of Representatives also support the letter.
The focus of the effort is on creating a stable business environment for cattle producers. With cattle supplies at historically low levels, ranchers need clear market signals and dependable opportunities to plan future production.
The cattle industry is an important part of U.S. agriculture and the food supply. Policies that support stable markets, strong trade opportunities, and continued domestic production can help producers manage the challenges ahead.
The lawmakers' request emphasizes the importance of working with producers when considering changes that could affect the cattle and beef markets. Their goal is to provide American ranchers with greater certainty while maintaining a safe, affordable, and high-quality beef supply.
Photo Credit: gettyimages-erdinhasdemir
Categories: North Dakota, Government & Policy, Livestock, Beef Cattle