This year’s upward trend in the cattle market has been a welcome respite for ranchers battling drought and higher input costs.  However, that trend has recently turned back. 

In 1986, Ronald Reagan, who was against government interference in ag markets, made this comment:  He said, “The most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’”

Well, it looks like the government is here to help.  In an attempt to stave off inflation, the Trump administration is taking action.  Whether you agree with them or not, we will all experience the consequences.  Over the past month, several political events have taken place that adversely affected the cattle market: 

• Trump openly stated that ranchers need to lower their prices. 
• He announced he’s increasing by four times the import quota for Argentine beef. 
• Secretary of Ag Brook Rollins outlined a plan to encourage expansion of the beef herd. 
• She indicated that Trump is focused on opening the Mexican border. 
• Trump then turned on the packers and turned the Department of Justice loose to investigate. 
• He recently announced he’s dropping reciprocal tariffs on many food items including beef.

The declining market is discouraging for ranchers hauling calves to the sale barn.  Each new announcement has served to damage live cattle prices.  It has also enabled Packers to pay less for fat cattle without helping the consumer at all.  Increased heifer retention isthe long-term solution.  However, in the short term, it will only add to the shortage at the packing plant.  Regardless of announcements, tariffs, imports, investigations and government intervention, there is still a huge demand for our product.  The supply will not meet consumer demand any time soon, making the ownership of a cow herd a worthwhile investment.  I’m not trying to make a political statement, I just want to encourage you to hang in there and keep on building—America needs your beef.  I’ll see you next time on the Herd Quitter® Minute.