Farm Groups Split Between Praise and Concern over USDA Plan Seeks Stable Beef Prices, Rebuild Capacity

RFD-TV Markets Expert Tony St. James breaks down the USDA’s newly unveiled plan to rebuild the US beef herd and the industry’s spectrum of responses to it.

Cattle in drought conditions_photo by 169169 via Adobe Stock.png

Photo by 169169 (Adobe Stock)

Photo by 169169 (Adobe Stock)

WASHINGTON, D.C. (RFD-TV) — With the cattle herd at a 75-year low and beef demand up, the new beef industry support plan unveiled by the U.S. Department of Agriculture (USDA) aims to steady prices by shoring up ranch economics and processing capacity.

Three pillars lead the USDA’s effort to rebuild the U.S. Cattle Herd:

  1. First: USDA–Interior Grazing Action Plan would reopen idle federal allotments (about 24 million acres), streamline permits, and strengthen disaster tools like LIP and LFP, while expanding risk-insurance subsidies for “beginning” ranchers up to 10 years.
  2. Second, processing and transparency: MPPEP grants (Meat & Poultry Processing Expansion Program) up to $2 million and loan guarantees to $25 million target small plants; FSIS (food-safety) will cut overtime inspection fees 75 percent for very small and 30 percent for small establishments; AMS (market reporting) will pilot LiDAR—light detection and ranging—at auctions to improve feeder-cattle data; “Product of USA” will be enforced Jan. 1, 2026.
  3. Third, demand: Farm-to-School grants ($18 million) and science-based Dietary Guidelines keep beef in nutrition programs, while EPA’s clarified WOTUS rule and scrapped wastewater proposal reduce compliance costs.
Farm-Level Takeaway: More forage, clearer labels, and added small-plant capacity aim to smooth price swings for ranchers and consumers.

Farm Groups Split Praise, Concerns Over USDA Plan

USDA’s new beef plan drew broad approval for tackling long-running bottlenecks, but major cattle groups warn rumored Argentine imports could undercut a fragile herd rebuild.

The United States Cattlemen’s Association (USCA) welcomed headline items— a federal Grazing Action Plan, stronger predator compensation, clearer “Product of USA” labels, and support for small plants—yet blasted reports of an 80,000-metric-ton Argentina purchase as market manipulation that hit futures and threatens ranch cash flow.

The American Farm Bureau Federation (AFBF) cautioned that expanded imports during restocking could push family operations “deeper into the red,” increasing reliance on other countries for food.

The National Cattlemen’s Beef Association (NCBA) was sharper, urging the White House to drop the import idea and instead prioritize animal-health safeguards (New World screwworm facilities, FMD defenses) and regulatory relief.

From Colorado Springs, the Agribusiness Freedom Foundation (AFF) argued price pressures reflect drought-reduced supply and costs—not Brazil tariffs or packer “monopoly”—and noted Argentina lacks the capacity to materially lower U.S. prices. Across statements, groups largely back USDA’s structural fixes but reject short-term import moves they say won’t help shoppers and could stall herd recovery.

Farm-Level Takeaway: Industry groups endorse USDA’s long-game reforms—but see Argentine imports as riskier than any potential consumer reward.
Related Stories
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Water access—not acreage alone—is driving where irrigation expands or contracts.
Credit stress is building for row-crop farms despite steady land values and slight price improvements.
The Lexington shutdown pushes national slaughter capacity utilization nearer long-run averages, underscoring how tight cattle supplies are reshaping packer operations.
Texas livestock producers face a heightened biosecurity threat as New World screwworm detections in northern Mexico coincide with FDA approval of the first topical treatment.
Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Higher ocean freight raises export costs just as global grain competition intensifies.