Cattle Producers Need Certainty

American farmers and ranchers work hard to provide the world with high-quality, nutritious, and affordable food options, all while dealing with many challenges outside of their control. Agricultural markets are inherently volatile, and the high-risk nature of the agriculture industry means producers are particularly exposed. Recent headlines are a reminder of why American producers need as much certainty as we can provide.

New policy must be circumspect to avoid unintended consequences. I have serious concerns increasing imports of Argentine beef or other government intervention to influence the price of cattle may create such unintended consequences. I have brought my concerns to the administration, and I continue to be in regular contact with officials to share what Nebraskans already know: when outside forces unduly influence the market, it arbitrarily picks winners and losers. Too often, cattle ranchers are the ones who lose out.

Years of drought, barriers to international markets, and the threat of New World Screwworm have contributed to a shrinking cattle market and 74-year-low inventories. Producers work hard to identify these challenges, manage their risk, and plan for their operation. Despite decreased inventories, domestic beef production has remained relatively stable—emphasizing American producers’ commitment to providing affordable protein options. 

Thanks to world-leading advancements and application of animal research, including at the U.S. Meat Animal Research Center in Clay Center, ranchers in the United States produce nearly 20 percent of the world's beef with only 8 percent of the world’s cattle. Nebraska’s Third District is at the forefront of beef industry innovation.

When our world-class producers are empowered with certainty in policy, it paves the way for investments which can be a game changer for producers and consumers alike. In March of this year, I participated in the ribbon cutting for the Sustainable Beef plant in North Platte. Projected to drive $1.2 billion in annual economic activity across our state, a venture like this would not be possible without pioneering industry partnerships.

In August, I visited the Empirical Foods facility in South Sioux City, which processes beef products which otherwise would go to waste into high-quality food products. This highly efficient system processes 12 million pounds of 30 percent lean trimmings each week, generating 4 million pounds of lean beef and 8 million pounds of edible tallow. This type of innovation brings consumer prices down, while still adding more value to each carcass.

I am pleased to see Secretary Rollins announced this week USDA will resume Farm Service Agency core operations, including critical services for farm loan processing and other programs. Furthermore, the proposal to increase grazing access on federal lands and decrease regulatory burdens for the industry is a step in the right direction.

These commonsense initiatives announced by USDA help provide current and future generations with the certainty they need to provide American families with affordable, nutritious, American-produced food. However, statements which undermine the domestic cattle market threaten our domestic food security.

As they raise and grow the food which goes on our tables, the hardworking families who raise cattle in Nebraska and all across our great country deserve policy which fights as hard as they do. Heavy-handed government intervention is unwelcome in the cattle market, and I am fighting to ensure the voices of Third District cattle producers are heard.