When President Donald Trump proposed buying beef from Argentina to boost supply and bring down retail prices, the cattle market reaction was almost instantaneous. John Newton, vice president of public policy for the American Farm Bureau Federation, said we’ve already seen a negative market impact from simply talking about the plan.
"We saw limit-down movements in the futures market for three straight weeks in a row that impeded the ability for cattle farmers to manage risk through the use of LRP contracts," Newton said. "You have to remember that the cattle market is one of the healthiest parts of the farm economy right now, and the notion of even importing beef to ultimately reduce cattle prices is a detriment to farmer income."
American Farm Bureau Federation President Zippy Duvall commented on the future of America’s beef supply.
“Farm families are no different from other American families. We feel the impact of higher grocery costs, but don’t get to set the prices. Meanwhile, farmers are suffering through an economic storm – expenses remain high, and cattle farms have been decimated by years of low prices, drought and the threat of the New World screwworm. They are just beginning to experience a fragile recovery.
Click here to see more...