Trump’s New Beef Plan Has Montana Ranchers Worried

Montana Ranchers React to Trump's Beef Import Announcement

The other day, we told you about how, despite high beef prices, Montana's cattle industry wasn't necessarily seeing that extra money hit their bank accounts.

Well, after a new announcement from President Trump aimed at driving down the cost of beef, some Montana cattle ranchers are raising concerns.

Trump Plans Temporary Beef Imports to Lower Prices

According to KPAX, President Trump announced Friday that America will temporarily, for up to 90 days, allow as much as 300,000 metric tons of imported beef intended for ground beef to enter the country without the higher “out-of-quota” tariff.

Trump says the imported beef will be sold for 25% below current market prices, which he believes will help consumers while giving the U.S. cattle herd a chance to rebuild from its historic low back in January.

That said, Montana Farmers Union President Walter Schweitzer sees things a little differently.

Schweitzer believes the additional imports could increase the nation's beef supply by about 2% and potentially push cattle prices lower. At the same time, he isn't convinced shoppers will actually see much of a difference at the grocery store.

That's not the only opinion KPAX was able to get on the beef import announcement. Kyle Shobe, owner of Lewistown Livestock Auction, also shared his perspective.

Beef

Will Beef Imports Actually Lower Prices?

Shobe told KPAX that cattle futures initially dropped just after Trump's announcement but started to recover. He says the cash cattle market hasn't changed much so far.

Montana Cattlemen's Association President Tim Brunner is also opposed to the plan. He questioned where the imported beef will come from, how it will be inspected, and whether 90 days is enough time to truly rebuild the nation's cattle herd.

Whether Trump's announcement has a lasting impact on beef prices remains to be seen. But as Shobe points out, Montana's cattle producers still have one big thing going for them:

There just aren't that many cattle out there right now.