Cutting Imports to Boost American Livestock Farms
Recently, Bill Bullard, CEO of R-CALF USA, and Carson Jorgensen from the sheep industry met with White House officials to present a plan aimed at revitalizing the declining U.S. cattle and sheep sectors. Their message was clear: decades of failed policies, driven by unchecked globalism and market concentration, have eroded the competitive foundation of these industries—leading to shrinking herds, fewer producers, and weakened rural economies.
They highlighted a growing national security concern: America’s increasing reliance on imported food. From 1980 to 2024, beef and cattle import dependency doubled from 11% to 22%, while sheep industry imports surged from under 10% to 73%.
To reverse this trend, they proposed a phased-in tariff rate quota system. For sheep, the goal is to allow domestic producers to reclaim at least 50% of the market over time.
For cattle, the aim is to rebuild the herd and boost domestic production to capture 90% of the market. Tariffs would apply to imports exceeding these quotas, offsetting the price advantage of foreign products due to factors like currency misalignment.
They emphasized that importing live cattle displaces domestic breeding opportunities, discouraging herd expansion. Flooding the market with cheaper imports depresses prices, undermines domestic production, and increases dependency—posing a threat to food security.
Their plan aligns with former administration strategy to boost domestic production. A key component is mandatory country-of-origin labeling (MCOOL) for beef, allowing consumers to support American ranchers and recognize U.S.-produced beef.
In addition to tariffs and MCOOL, they called for three more reforms: banning unpriced contracts that give global packers pricing power, repealing the beef checkoff program used to block reforms like MCOOL, and ending the mandatory electronic eartag rule, which they argue infringes on producers’ freedoms.