By Carleen Wild
Moody County Enterprise
As the Trump administration looks for ways to reduce the cost of beef for consumers, local ranchers are keeping a wary eye on both the markets and their herds.
Cattle futures took a hard hit late last week, with both live and feeder contracts plunging to their daily trading limits. The sharp drop followed comments by President Donald Trump, who said he plans to lower beef prices by importing more meat from Argentina. Trading was halted Friday after the market crashed, forcing a pause in trading until limits reset.
It doesnt mean the actual price ranchers are getting for cattle suddenly collapsed, said local producer Bret Severtson of Flandreau. It just shows traders are nervous about what prices could do in the coming months.
The National Cattlemens Beef Association, the Ranchers-Cattlemen Action Legal Fund, and other producer groups normally staunch supporters of the president this past week sharply criticized the plan. All in the industry note that Argentine beef accounts for less than 2% of U.S. imports, meaning even doubling that share would have minimal impact on retail prices.
Trumps deal right now on Argentinian beef wont have much of an impact, said Severtson. Its less than 2% of annual consumption, so I think the reaction is a lot bigger than the reality. Maybe it brings down hamburger 25 cents.
More concerning to producers, he said, are tightening cattle numbers and reports of screw worm a deadly parasite reappearing in Mexico near the U.S. border.
Weve shut down the import of Mexican beef and live cattle, and thats hundreds of thousands of head. Thats a big reason this has gone so high. We actually get live animals from Mexico and theyre finished in Texas and those other southern states, and youre talking hundreds of thousands of head there. That news, combined with politics, sent stocks downward.
Even so, Severtson said, The market is staying strong, its at an all-time high, so if youre not making money right now, youre doing something wrong. But Trumps plan might just shorten that window a bit.
He said rebuilding the U.S. herd is key. Fellow local ranchers Dean and Diana Larson agree, adding that for the first time in a long time, ranchers are at the very least breaking even and something has to change to encourage producers not just to stay in the business, but for a new generation to get into it.
Rent, medicine, minerals, trucking all of that has gone up every year for the past ten. Even with higher prices now, if you average it out, were still behind.
Severtson agrees. We have the lowest cattle numbers since the 60s. The average cow-calf guy is 58. Why rebuild when you can sell at record prices?
As for consumer complaints, Severtson offered, A pound of hamburger is still one of the most nutrient-dense, affordable things you can buy. People spend $6 on a bag of chips or coffee every day beefs still a bargain.
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