Who Wins With More Beef Imports?
There’s no question this has become one of the more controversial conversations in the cattle business. And I’m certainly not an economist, but I do want to help you follow the numbers and understand what’s being argued.
President Trump recently increased the tariff-rate quota for certain lean beef trimmings by 300,000 metric tons, saying the move is intended to increase ground beef supply and address high consumer prices.
But the American Farm Bureau Federation is raising concerns.
Its economists estimate the expanded quota could mean roughly $650 million in avoided tariffs on foreign beef. At the same time, Farm Bureau says some ranchers are selling calves for $300 to $400 less per head than two months ago.
Then there’s Livestock Risk Protection. Farm Bureau says projected indemnities for feeder and fed cattle have climbed to $624 million as cattle markets have fallen.
And the big unknown: will consumers actually see cheaper beef?
Farm Bureau argues there’s no guarantee those savings make it to the meat counter.
For more of the analysis from Dr. John Newton with the American Farm Bureau, visit https://www.fb.org/intel/markets/knowns-and-unknowns-on-the-presidential-beef-proclamation
