Beef Prices Plummet After Trump's Social Media Post

The recent social media post by President Donald Trump, announcing a plan to allow more low-tariff beef imports from Argentina, sent shockwaves through the cattle industry, causing beef prices to plummet by about 15%. This unexpected drop had a significant impact on ranchers like Michael Schmidt, who has been running a cattle ranch on Green Bluff for generations. His granddaughter, Annabelle Schmidt, had just started her own ranching operation and was making a profit, thanks to the rising market prices.

Key Takeaways:

• The recent market drop following Trump's social media post resulted in a 15% decrease in beef prices, causing financial losses for many ranchers who sold their cattle at market during that time.
• Michael Schmidt, a fourth-generation rancher, feels for any rancher who chose to sell their cattle during that time, as the market fluctuation can have dramatic effects on their livelihood.
• Ben Tindall, executive director of Save Family Farming, condemned Trump's plan to import more beef from Argentina, stating that it will take money out of the pockets of hard-working farmers and will not bring significant benefit to American consumers.
• The National Cattleman's Beef Association also ripped the plan, noting that Argentina has shipped about $800 million worth of beef to the U.S. over the past five years while purchasing about $7 million of U.S. beef.
• Annabelle Schmidt, who was making a profit thanks to the rising market prices, still has 18 head of cattle that will be sold to private buyers, but the recent market drop makes her future uncertain.
• Grant Forsyth, chief economist for Avista Corp., stated that the administration is trapped by its own policy, which raises prices, and now the unhappiness is on the consumer side.
• The industry reported some of the lowest cow counts on record, causing a shortage of beef, prior to Trump's announcement of the plan to purchase more Argentina beef.

Statistics:

• Beef prices have steadily risen since Trump put in place a 50% tariff on Brazil.
• The U.S. halted much of the beef coming from Mexico due to an infestation of New World screwworm, a fly larva that burrows into living cattle and causes wounds that can be fatal if untreated.
• The markets for U.S. beef kept setting new records for prices until late last month, when Trump announced the plan to purchase more Argentina beef.
• Annabelle Schmidt bought 32 head of cattle in her first year and made a profit thanks to the rising market prices.
• The recent market drop resulted in a 15% decrease in beef prices.
• The National Cattlemen's Beef Association estimates that Argentina has shipped about $800 million worth of beef to the U.S. over the past five years while purchasing about $7 million of U.S. beef.
• Jack Field, who raises about 100 mostly black Angus cattle near Yakima, said the market drop following the social media post dropped local cattle prices about $40 to $45 a hundred weight.

Sources:

• The Spokesman-Review (Spokane, Wash.) - "Ranchers frustrated as Trump's beef plan sends prices plummeting" by Thomas Clouse
• Save Family Farming - Statement by Ben Tindall
• National Cattleman's Beef Association - Statement by Colin Woodall
• Avista Corp. - Statement by Grant Forsyth