The Ups and Downs of the Beef Industry: A Rancher's Perspective

The beef industry is a tough business. It's not for everyone. Ranchers face many challenges. High prices, low profits, and unpredictable markets are just a few. In 1973, a young rancher learned this the hard way. He bought 20 steers. It was his first big investment. But the market crashed soon after. He lost money. Others lost more. Beef is different from other proteins. It needs lots of land. Land is expensive. So are machines, feed, and labor. Most ranchers have other jobs. They can't make a living from ranching alone. Over 90% of U. S. cattle operations are small. Less than 0. 5% have more than 500 cows. Even then, profits are slim. Drought, wildfires, and low markets can wipe them out. The rancher saw highs and lows. In 2014 and 2015, he sold heifers at record prices. But the market crashed in late 2015. He lost as much as he gained. There was no government help. There shouldn't be now either. High beef prices aren't just about the market. They're about supply and demand. The national herd is at a 75-year low. But demand is high. Beef is a valuable protein source. It's rich in iron and B-vitamins.Ranchers are getting record high prices. But they're not keeping the profits. Input costs are rising. Land, equipment, and taxes are expensive. Coffee prices have risen faster than beef prices. This shows how beef's relative value has not increased much. Trump's policies have hurt ranchers. His trade war with China caused slumps in soybean and wheat demand. Agricultural machinery maker John Deere expects tough market conditions to continue. Trump's late October decision to quadruple imports of Argentine beef was a blow. Argentina had a foot-and-mouth disease outbreak 20 years ago. The U. S. banned their exports then. Now, they're back. This poses a threat to U. S. cattle health. Trump's statements about beef prices caused a sharp decline in cattle futures. This created uncertainty and fear. It's similar to what happened in 1973. Nixon's price controls caused a market crash. The capitalistic approach would be to let the market cycle run its course. But Trump's statements make ranchers hesitant to expand their herds. A $12 billion bridge payment for farmers is welcome. But it's just a Band-Aid. It won't fix the big problems. The cattle raisers' trade group acknowledged Trump's support. But they won't be played for suckers much longer.