President Donald Trump’s announcements that the U.S. will allow Argentina to greatly expand its low-tariff beef exports to the U.S. to reduce prices for American consumers have riled Wyoming stock growers.
Trump floated the idea of boosting imports to the U.S. market a week ago, following up with statements that Argentina would be allowed to quadruple the amount of beef it sends north under a low-tariff quota. The move brought a sharp reaction from domestic beef producers as well as markets, which saw cattle prices plunge.
“The president’s statement obviously caused us great concern and some panic in our industry,” said Jim Magagna, executive vice president of the Wyoming Stock Growers Association. “It has had an impact on current live cattle prices and our futures market.”
“The timing is so unfortunate for Wyoming. We’re at that time of the year where people are selling their calves or their yearlings.”
Jim Magagna
Magagna cautioned that details of the deal are yet to be made public — whether the plan involves live cattle or only butchered products. Regardless, “it can have a significant impact,” Magagna said of the new policy.
“The timing is so unfortunate for Wyoming,” Magagna said. “We’re at that time of the year where people are selling their calves or their yearlings.”
Gov. Mark Gordon called for domestic solutions to higher grocery prices, solutions that would increase U.S.-raised beef. “Increasing our reliance on cattle imports is not the best answer for our ranchers, farmers, or U.S. consumers,” he said in a statement Thursday.
Trump’s move is a “misguided effort,” the National Cattlemen’s Beef Association said in a statement Wednesday, calling on him to abandon the plan. The association and its members “cannot stand behind the president while he undercuts the future of family farmers and ranchers,” the group’s CEO Colin Woodall said in a release.
‘$300 millones extra’
In Argentina, headlines heralded a windfall for a troubled economy. “Inminente anuncio: la mayor cuota para exportar carne a Estados Unidos generará US $300 millones extra,” La Nación trumpeted. Translation: “Imminent announcement: Increased meat export quota to the United States will generate an additional $300 million.”
In Chicago, headlines were different. “Cattle Collapsing as Spec Longs Head for the Exits,” Barchart for Businesses wrote Monday.
“The cattle complex on the Chicago Mercantile Exchange is deepening its steep losses in early Monday trading,” Foodmarket news wrote Monday, “extending Friday’s sharp sell-off that saw all but the nearby live cattle contract end at limit-down.”
In addition to benefiting U.S. meat consumers, Trump’s beef plan augments his support for the Argentinian government, support that includes a $20 billion currency swap. The issue finds the White House trapped between consumer dread in the face of escalating costs and stock producers who are part of a rural cohort of Trump voters.
There’s been much criticism of Trump’s move from rural producers, Rona Johnson wrote Monday on The Fence Post, an ag-focused news outlet. “Most of these ranchers probably voted for Trump,” she wrote, “and were voicing their concerns in hopes that he would come to a different conclusion on how to deal with high beef prices.”
Meantime, Agriculture Secretary Brooke Rollins on Wednesday released a 13-page outline “to strengthen the American beef industry, reinforcing and prioritizing the American rancher’s critical role in the national security of the United States.” The initiative lists 18 actions, implementation plans and expected results addressing everything from grazing on federal land to compensation for stock losses to predators.
Gubernatorial candidate and State Sen. Eric Barlow, a Gillette Republican, “stands with Wyoming ranchers,” he said in a statement issued Friday. “Our producers compete honestly and deserve fair markets that reflect the true value of locally raised beef.”
Conservationists fret the issue will lead to environmental degradation as the administration relaxes oversight and control of public-land grazing and other landscape and wildlife protections.
“This administration is doubling down and making sure that America’s precious western public lands operate as a below-cost feedlot for special interest groups,” Josh Osher, public policy director for Western Watersheds Project said in a statement. The administration’s moves come “despite the growing recognition that beef is bad for the planet.”
Rollins’ proposals to expand grazing on public land come even as land-managing agencies’ data “suggest that they are unable to manage the active allotments already in use,” Western Watersheds and five other environmental groups said.
Public Employees for Environmental Responsibility, WildEarth Guardians, Wilderness Watch, the Center for Biological Diversity and Kettle Range Conservation Group joined in the criticism.
Bad timing
Wyoming ranchers are in a tough spot, Magagna said. Some may have sold their cattle already.
“But if you hadn’t sold them and you’re sending them to market next week, it’s definitely going to be an impact,” he said, “a short-term impact.”
Again, details of the deal will be paramount.
“The challenge that I’ve had with this is, to my knowledge, we don’t yet know what the president has in mind,” he said. “I’ve heard rumors he’s talking about importing live animals from Argentina.
“I don’t think that could be done,” he said. “It would be a major concern because of animal disease issues.”
Other programs, like importing butchered lean beef to be blended with U.S. products, could benefit the industry, Magagna said.
He’s reached out to association members, Magagna said, providing a link to comment to the administration and Wyoming’s delegation. “The last I knew — not specific to Wyoming — somewhere in the neighborhood of 10,000 comments had been submitted by cattle producers.”
Regarding U.S. Sens. John Barrasso and Cynthia Lummis, “I know they have reached out to the White House and to the Secretary of Ag to express their concerns,” he said.
“TONE DEAF”
Matt Bennett, an ag commodity commentator on Iowa Public Broadcasting’s Market To Market, echoed the surprise and anger felt by cattle ranchers over Trump’s recent dumb-ass remarks:
“I think the more frustrating post was when he said that he was the person responsible for the cattle market moving higher, and Paul, any of these ranchers that have gone out of business because they couldn’t sustain the margins, I mean, the last ten years have been catastrophic other than the last 2 to 3. Right? And so some of these guys that have been involved in drought the last three years, they couldn’t keep heifers if they wanted to. So they were going on the feedlot. Meanwhile, the herd size is shrinking to 70 year low. He had nothing absolutely nothing to do with this cattle market rally and to put a post out that was as tone deaf as what that was. That’s what angered people more than anything.”
Im sorry my friends in the cattle business have gotten kicked in the cajones by their hero. On the other hand I have been amazed that intelligent people like them supported him.
Like an old time snake oil salesman he sold them a bill of goods. Mezmerized by him, Wyoming Republicans kicked traditional republicans like Liz Cheney in the guts and hung them out to dry. It was unbelievable they would stab a Cheney in the back for upholding her oath and supporting our constitution.
Wyoming has a reputation of rejecting outsiders like Colorado fisherman, and yet Wyoming Republicans embraced a mafia type huckster with open arms.
I guess the can be comforted that Trump has made fools of many loyalists like them. They are not alone.
Cattlemen need to pass the hat and come up with a big wad of cash and pitch it Trump’s way. That will resolve their problems.
On Labor Day, 2018, Stephen King tweeted this after Trump went on one of his many anti-Jeff Sessions (Trump’s then AG) rants:
“Today’s lesson: Don’t be Trump’s friend. He will f*** you at the drive-thru….”
Everyone who voted for Trump should feel like Jeff Sessions by now.
As a kid I worked on ranches. I saw the extensive resources ranches must use to produce beef. I have to wonder about the future of beef ranching. It uses a lot of water and in many cases, a lot of land. Beef may be getting too expensive for the average household. It has been shown to be unhealthy. If I were dependent upon ranch income I would start looking for alternative uses for my land and water. I would also look for a real president when I voted. Not a self serving narcissist that has no concept of agriculture and what America needs.
The biggest downside to living in Wyoming? People here are delusional. People here tend to believe 2 things as gospel: this is cattle country (it’s not) and we invented coal (ya, no). Wyoming ranks 25th in the nation for cattle production. It’s scrub land, there’s no water lol. Our beef is not really all that good tbh. Ranchers here are always just scraping by. Every year. Always getting bailed out by the feds for this or that. So then they go and vote for the guy who for 40 years they’ve been telling me to never trust: a New York City hustler! And you want my pity?? Right. Ya, nope. Welcome to the real world. Go get a job, because we need workers, not hobby ranchers surviving on government handouts.
Maybe just once, we can stop to consider the ramifications that our current administration has on all of us, not just one industry. Yes, there are numerous subsidies given to the Agriculture community. Beef prices are high, because of supply and demand. Lowest supply of American beef inventory in 75 years. Higher demand for beef by the American public. So, our current administration seeks to lower the cost of beef to consumers by importing foreign beef, which in turn has a negative effect on beef market prices. and who will benefit the most from this action? The 5 major meat packers in the US, 3 of which are foreign entities. I don’t blame ranchers for feeling like the rug was pulled out from under them. The same goes for farmers raising soybeans, or the small business owner who relied on cheap labor from Asian countries to manufacture their product. We are all affected by political decisions because ultimately those unintended costs from intended decisions are passed directly to the consumer. We will never again see 99 cent eggs, golly we go practically giddy when gas is less that $3 a gallon. Bottom line, we need to find long term solutions that will help all Americans, not just some.
Wyoming beef is not that good. I prefer corn fed Nebraska beef raised on private feed lots and not beef subsidized by over grazing on public lands.
I wonder where feedlots get their cattle?
This will be interesting to see what is in the wording, if blended dry lean ground beef with higher quality US beef gets consumers and ranchers a more consistent affordable alternative why not. Let’s look into the agreement hopefully it isn’t another Obama Care (Affordable Care Act) that was planned to be unaffordable down the road like we see now that is shutting down our government over secret perks that not disclosed proudly by our policitans.
Thank you President Trump and your fellow MAGA followers for making Argentina beef and Brazilian soybeans great again! The National Cattlemen’s Beef Association new ad campaign will be “Argentina Beef. It’s whats for dinner!”.
The cattle producers that I personally know have endured drought and feed shortages that forced selloffs and high interest rates. Just as it looked like they may catch a break the Great Orange Shitstain kicks them in the groin. Elect a Clown, get a circus. As tempting as it is to gloat, since in my opinion Trump is lower than whale shit, I hold the cow calf operators in high regard. This is the worst administration in my 58 years of voting. I hope our republic survives.
Free enterprise and capitalism, right independent tough welfare cowboys- except when it comes to you. Most of you were dumb enough to vote for the grifter TWICE. Oh well, the public will bail you out.
Actually, most are Triple tRUMPers! The Cognitive Dissonance DisOrder must be Punishing!? The “NUT Buster” is Liz Cheney warned “them” and they Trashed her!
“In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot.” ― Mark Twain
Really, something trump does causes concern? Crazy, only when it affects you right? Has he done anything that isn’t good? Just one issue, implementing tariffs, taking the money and paying farmers? backwards, pretty much everything this guy does is backwards.
Cowboys vote for Trump, get screwed by Trump. Welcome to MAGA.
exactly!
MAGA = Make Argentina Great Again?
It seems like open and free trade scare the bejesus out of our self proclaimed independent, freedom loving cowboys. For too long Magagna and his welfare cowpokes have enjoyed exclusive markets sweetened on top by big subsidy checks and sticking it to their fellow Americans. How do you like that orangutan tyrant in the Whitehouse now, Magagna?
It is ridiculous how Wyoming pays landowners per elk all winter long yet we can’t hunt the elk. backwards, these ranchers have it way too easy.
Would love to see elk meat in the grocery store. It works in Europe. Elk and deer are better stewards of the land than cows are. Just sayin.
“Slow elk” was Edward Abbey’s humorous term for beef cattle,
I wish Abbey was alive to comment on this article.
Hey Magagna, why you worried…didn’t all your types vote MAGA? You get what you voted for and since you LOST your perceived dominion over public lands (corner crossing scotus rejection), are you worried about the welfare support ending for you rugged individualist types?