The Future of Cattle Farming: Why Young Farmers Are Needed

The cattle industry is facing a big problem: not enough young people are joining the business. In South Dakota, the average age of a cattle producer is 63. This is a concern because older farmers will retire soon, and there won't be enough new farmers to take their place. Adam Bode, CEO of DemKota beef processing plant, spoke about this issue. He said that in 2024, they bought cattle from 400 producers. But this year, that number dropped to 300. It's not because they chose to buy from fewer producers. It's because there are fewer producers to buy from. Starting a cattle farm is expensive. It requires a lot of money to begin. This is a big hurdle for young people who want to get into the business. Bode urged bankers to loan money to young producers. He believes that the cattle industry has plenty of opportunities, but others need to see this too. Dave Geraets, who has 2, 500 head of cattle, talked about the volatility in the cattle business. Prices can change a lot, which makes it hard for farmers. He hopes his kids will stay involved in the business, but the high costs and price swings make it difficult. This year, cattle prices saw huge swings. In August, prices reached an all-time high due to low inventory. But then, President Trump announced plans to import more beef from Argentina. This decision caused a 25% drop in the market in just two weeks. Ryan Eichler, founder of the South Dakota Cattlemen’s Foundation, compared this to the stock market dropping 25% in two weeks. Craig Bieber, vice president of the South Dakota Cattlemen’s Association, called this move a "gut punch. " U. S. Sen. Mike Rounds met with the Trump team to discuss the concerns of ranchers. Trump later asked his departments of Justice and Agriculture to investigate the "big four" packers for potential collusion and price manipulation. Bode also talked about the high cost of entering the beef processing business. He joked that if you want to make a few million dollars in beef processing, you need to start with a few billion. This shows how expensive it is to get into the industry. The big beef packers are also facing challenges. Tyson recently announced the closure of its Lexington, Nebraska plant. This plant could process 5, 000 cattle a day but was only processing around 3, 600. Bode said this closure won't affect DemKota, but it shows that even big companies are struggling with the same problem: not enough cattle to meet demand.