MARC JACOBS
Hutch Post
Western Kansas agricultural producer and banker John Jenkinson says a proposal to increase foreign beef imports could discourage cattle producers from rebuilding their herds without significantly lowering grocery store prices.
During an interview on the BW Morning Show, Jenkinson said importing 300,000 metric tons of beef would add cheaper competition at a time when U.S. cattle supplies remain tight.
“It’s not going to really affect the price that much, as far as what the consumer pays,” Jenkinson said. “But what it will do is discourage any cow-calf operator, any cattleman.”
Jenkinson said years of drought forced many producers to reduce their herds. Rebuilding the nation’s cattle supply will take time because calves must be raised to market weight before beef production can increase.
“This is cyclical,” Jenkinson said. “Give it time. It’s going to work itself out, or the consumer is going to stop buying as much, and we’re going to catch up with supply.”
Jenkinson said cattle markets were also hurt by reports that Tyson planned to close three beef plants. He said the market reaction affected producers but did not immediately reduce beef prices for consumers.
Kansas Sens. Jerry Moran and Roger Marshall have also raised concerns about the administration’s beef import proposal.
Border reopening raises screwworm concerns
Jenkinson also discussed the U.S. Department of Agriculture’s phased reopening of livestock ports along the southern border.
The ports were closed because of the threat posed by New World screwworm, a parasitic fly whose larvae can infest wounds in livestock. Jenkinson said some cattle producers remain concerned that the pest could move north from Mexico.
USDA plans to begin with a slow reopening and increased inspections. Jenkinson said cooler fall and winter temperatures could reduce the threat, but producers want inspectors to identify and reject any potentially infected animals.
Drought expected to reduce fall harvest
Jenkinson said findings from the Pro Farmer Crop Tour support expectations that the corn and soybean harvest will be smaller than previously projected.
He said drought, extreme heat and pollination problems damaged crops across Kansas and portions of Nebraska and Iowa. Recent rainfall came too late to help much of the corn crop and could create additional problems for soybeans in areas receiving excessive moisture.
Jenkinson said even irrigated corn on his farm showed incomplete ears because producers could not supply enough water during the drought. Warm overnight temperatures also prevented crops from recovering from daytime heat.
“Dryland in western Kansas is just burned up and gone,” Jenkinson said. “We didn’t have enough rain. We’re in a drought, and the heat just got to it.”
Pastures and hay production were also damaged, potentially leading to higher hay prices and additional costs for livestock producers. Jenkinson said harvest could begin earlier than usual, with some dryland harvesting already underway near the Kansas-Oklahoma border.
Jenkinson said Congress must also complete work on a new farm bill after lawmakers return from their Labor Day recess.
“We really need to get a farm bill done,” Jenkinson said. “We need that certainty.”