President Donald Trump maintains that importing cattle from Argentina will be good for the United States. Ag leaders in the U.S. aren’t buying it and continue pressing the president to scrap the idea.
On Wednesday, 14 Republican senators, including House Ways and Means Chairman Jason Smith, sent an open letter to Ag Secretary Brooke Rollins and U.S. Trade Representative Jamieson Greer. They are calling on the administration to reconsider.
While saying they share the administration’s goal of lowering costs for consumers, the senators said they are concerned that granting Argentina additional market access will undermine cattle producers in the U.S., weaken the nation’s leverage in ongoing trade negotiations and reintroduce animal diseases.
“On average, Argentina exports over $200 million of beef annually to the U.S. while purchasing less than $2 million of U.S. beef in return,” the letter continues. “This persistent imbalance, combined with Argentina’s continued tariffs on U.S. beef and its documented history of foot-and-mouth disease, raises serious questions about reciprocity, safety and long-term fairness.”
Others have been less diplomatic. During an Oct. 23 call with reporters, Sen. Chuck Grassley, R-Iowa, said he disagreed with Trump’s plan because it gives U.S. cattle producers less incentive to increase cattle production.
“The message to the president is pretty simple: Undercutting American beef is not putting America first,” Grassley said. “You can’t undercut beef and consider that being America first.”
How did we get here?
According to multiple sources, concern in the cattle industry began Oct. 16 following a speech Trump gave unrelated to agriculture. The president told reporters that retail beef prices were too high but would be coming down soon because the administration had “worked our magic.”
The following day, cattle prices plunged, and industry officials began reaching out to their contacts in the administration to learn what was coming.
On Oct. 19, while speaking with reporters aboard Air Force One, Trump said there was a plan coming to import Argentine cattle into the U.S. in an effort to reduce consumer prices. This news was met with near universal condemnation from the ag sector.
The sector’s revulsion was twofold. First, the president’s offhand comments caused disruptions in the futures markets. Second, Trump appeared to be sending a message that ranchers should be willing to accept a lower value for their production.
“That’s a tough pill to swallow when producers have spent the last four or five years facing a lot of inflation, rising input costs, drought conditions, wildfire and everything that’s contributed to this low cattle herd,” one cattle industry representative said. “It’s a really tough thing to hear the president say, ‘You know, we think you ought to accept less money.’”
Coincidently, a couple of days after Trump’s remarks, Rollins announced a plan she said would strengthen the beef industry and lower consumer costs. It includes regulatory reforms and plans to increase processing capacity and demand for beef.
The plan had been in the works before Trump’s remarks. It was widely praised by cattle groups, and includes industry priorities like expanded access to grazing lands and payments for cattle depredations. Notably, it did not include any reference to importing cattle.
USDA keeps mum on plan
What isn’t known is where Rollins stands on cattle imports from Argentina. When asked by Farm Progress to comment on the plan, a USDA spokesperson responded with a statement lauding Trump and his cabinet for working to reduce consumer prices, rebuild the cattle herd and expand markets. The spokesperson did not respond to follow-up questions regarding Rollin’s support for Argentine imports.
In television interviews, Rollins has mostly sidestepped questions on the issue, downplaying its impact on cattle markets.
There is considerable debate over the premise that importing more cattle will significantly lower grocery store prices. According to some industry analysts, the impact would be minimal. In the meantime, ag groups and lawmakers in farm states are continuing to lobby the administration in hopes Trump will have a change of heart.