Quota Proclamation Will Hurt American Ag Producers

Despite strong opposition and significant pressure from agricultural organizations, including the Kansas Livestock Association, the National Cattleman’s Beef Association, members of Congress, and millions of Americans, President Donald Trump issued a proclamation to waive out-of-quota tariffs on the importation of 300,000 metric tons of beef for 90 days in an attempt to lower beef prices.

According to the White House, the quota will take effect September 1 and will allow 100,000 metric tons of lean beef trimmings per month for three months. The trimmings will be combined with U.S. beef for ground beef.

The additional quota is limited to countries without a country specific quota, and they will pay a tariff of 4.4¢/kg instead of the standard 26.4% out-of-quota tariff. The proclamation also encourages beef to be sold at a 25% discount from the going import price, although no details were provided on how that would be implemented.

Prior to the proclamation, NCBA, along with the American Farm Bureau Federation, Livestock Marketing Association and United States Cattlemen’s Association, sent a letter urging President Trump to reverse his announced plan, warning that importing discounted beef to lower grocery prices would not provide a lasting solution and could weaken the long-term stability of the cattle industry. They noted his announcement already had pressured cattle markets lower and came at a time when producers were making critical decisions about rebuilding their herds. The organizations emphasized that strong beef demand was providing producers with an opportunity to reinvest in their operations and his proposed plan could undo any progress that has been made.

The Kansas Livestock Association and the National Cattleman’s Beef Association will remain actively engaged on this issue.