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Ranchers Finally Got Paid So Washington Wants 300,000 Tons of Beef

111m 14s

Ranchers Finally Got Paid So Washington Wants 300,000 Tons of Beef

In this episode of "Barn Talk," the hosts dive into the current state of the beef industry, framing it as a structural crisis. They start with a market update, noting strong grain and livestock prices but highlighting a key issue: Trump's proposal to import 300,000 metric tons of foreign ground beef tariff-free. They argue this won't lower grocery prices, as seen in a similar October 2025 experiment, and instead signals ranchers not to expand, given the herd is at a 75-year low. This leads to packers like Tyson closing plants due to losses, reducing competition and rancher leverage. The hosts also discuss the reopening of the Mexican border for cattle, which helps feedlots but doesn't fix the underlying consolidation problem. They criticize politicians for short-term fixes, noting the national debt hit $40 trillion and farm debt is at a record. The U.S.-Canada trade dispute adds further strain, risking higher costs for potash, pork, and lumber. Despite these challenges, they find optimism in a cultural shift toward local, farm-fresh food and analog experiences, which they believe can counteract corporate and government control. They conclude by advocating for more independent packing capacity and local options to ensure ranchers control their own destiny, emphasizing that the problem is structural, not individual, and requires long-term solutions beyond election cycles.

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Speaker 1This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses, setup required, compatibility and availability varies 18+.
Speaker 2All of the food we eat and much of the clothing we wear comes from plants and animals that are raised on farms. Farms are different in type, in size, and even in name.
Speaker 3Welcome to Barn Talk. What happens at the barn stays in the barn, but not today. We're going to let it all out for you guys. Today is going to be a Barn Talk Hot Topics episode. A lot going on in the markets, in America, in the world of ag, the world of rural America. And we're going to get into all those nitty-gritty topics here in a minute. But before we do, if you get any value from the show, all that we ask is you share it out with the people that you know. The more that you guys do that, the more that this show grows. We found the best way to grow a podcast is through word of mouth, sharing it with your friends, sharing it with your loved ones. And we just appreciate all of you that do that because we, we would not be where we are today without you. So thank you. Something else you can do to help us out here at Barn Talk is leave a review on Spotify or Apple. It gives us a lot of credibility so that we're able to have more interesting guests come on the show. We're over 4,000 five-star reviews on Spotify. We're getting close to 2,000 five-star reviews on Apple. And we just love seeing those roll in. And we love seeing your guys' overall thoughts. Last thing that you can do to support Barn Talk is you can go sign up for our weekly newsletter. It's a newsletter that we're putting about putting out at joinbarn talk.com. I'm going to say it again, joinbarn talk.com. We're literally just given our perspective and thoughts on everything going out, going on in rural America and putting it in your email inbox. It's completely free. And we're trying to have a goal with that right now. If we get over 10,000 newsletter subscribers, we're going to have a live event right here on the farm, right in the barn, have some great speakers come out, have some food trucks, drink some beer, just get people to come out. Get people together and have a good time. So we we've been on the road a lot lately, and it's just been great getting out and connecting with you all. And a lot of times I feel like we both feel imposter syndrome, you know, because we are, we never started this thing with the intention of wanting to become famous. We started it because we're passionate about agriculture. We're passionate about rural America. We wanted to build a brand around what our farm. And as a result, it's just amazing to get get, get out and meet people and realize that what we're doing is it's, it's got, it's got some traction actually. And it's, it's weird. It's weird because you know, you sit there and people come up to you and recognize you and you've never met them in your life, but it's also just, it's a blessing and we're so grateful for it, but just know you guys can always come up to us and talk to us. How we are on this show is exactly how we are when you, when you talk to us,
Speaker 4talk to us and we're a little nicer in person because we treat people better than we treat each other. So it's actually good for us to be out. I think the most common thing that we get a lot is that people say they always will come up and say, you don't know me, but I feel like I know you and that is kind of the way it is. Cause when you spend time listening to us, you kind of do feel like that. What I really like about it is, and we'll probably talk about this a little bit, but sometimes when you're sitting here and we're doing this, a podcast and we have, you know, we, we read what's going on and listen to what's going on and we kind of have our own opinion and we expound those opinions. And then sometimes when we do that and we get done, I'm like, man, I don't know people are going to think I'm crazy. And then I, we go to those things and I always run into somebody that says, ah, you're spot on. And I'm like, okay, well I'm only as crazy as this guy, so I guess I'm okay. Yeah. I guess I'm okay.
Speaker 3Yeah. We'll touch it, touch on some highlights here in a bit, but I think before we, do we got to kick off with a good market update.
Speaker 4Yeah. And there is plenty going on in the markets, uh, both in livestock and in grains. And so, uh, today's market update hot off the press, uh, December corn for 98, uh, best local bid for 53 Cargill and Cedar app. It's four 73 beans for November, uh, 1237 ADM in, uh, Burlington has 1220 while Quincy, Illinois, Illinois has 1272 a pro farmer. They are done. They did their crop tour and that was kind of the bombshell that they dropped after the close on Friday. They estimated the crop at 15.3, 4 billion bushels. Uh, and that's an average of 173.2 versus USDA who had it pegged at 16.1 billion and 180 bushels beans were a lot closer. They actually estimated the bean, the crop a little larger than us date USDA at 4.5, 7 billion versus 4.5, one nine. Uh, but exports are strong. Um, Argentina is just, they're about the only game left in town and they're just about out of product to sell. So exports are going to stay strong here until their new crop comes in and, um,
Speaker 3ethanol strong.
Speaker 4Oh my gosh. Uh, it is crazy when you get out, uh, around the country because we were out in Indiana and they feel sorry for us back here. Cause we actually have negative basis. Their basis out there is positive. Uh, I think they were telling us there are five ethanol plants within two hours of them. I mean, we were around, we were around, uh, Lafayette, Lafayette, Frankfurt, Indiana, and a lot of ethanol over there, a lot of biofuel. So, I mean, they've got a positive basis and, uh, that's going to, that's going to definitely keep going because we're short on fuel everywhere. And that's the direct result of the whole oil thing. And so we're not just blending for our country. We're exporting it because everybody's blending, trying to stretch their fuels out as much as they can. Uh, and as we go into winter, I think diesel is going to be a big deal. So biodiesel that, uh, if there is a little extra bean crop out there, I think it's going to get eaten up pretty fast. Uh, bean meal, three 19 wheat for December, six 97, wheat hasn't participated as of yet. Although, uh, with all the problems in the black sea, Ukraine and Russia, I can't imagine that the wheat crop, uh, the wheat price doesn't get enhanced as we head through the winter months. Uh, hogs for December, 71 50, may of 27, $84 cattle to 17. Uh, we're going to talk about Trump and his, I don't know what you want to call that. Uh, his mouth. Yeah. I don't know what the hell he was thinking, but anyway, we'll talk about that. Feeder cattle, three 36 crude oil, 84 bucks, Tesla, $362. SpaceX, $136 a ton deer, 647, not a ton. Oh, sorry. Yeah, I was, I was, you were in, you were in ag mode there for a second. I was telling you about tons of freight shipped to space, but it's a $136 a share, a deer, 647, Google three 41 and Google, kind of, uh, in not so many words, basically said that they're cutting back on the amount of money they're putting towards, uh, AI research, specifically Gemini, because I think Google's figured out that no matter who wins the large language model, they're going to profit from it because Google is like the hub that everybody works through. So it doesn't really matter to them. They're going to make their money anyway. So they profit no matter what. So why just, why just, why just burn all that cash on capital expenditures of trying to perfect the perfect AI model when you're going to make your money anyway?
Speaker 3Yeah, I think, uh, just one point. Well, I don't want to stay on this, but for me personally, like a lot of my Claude usage, I, I, I integrate it with Google drive a lot of the time. Yep. So, and I use Google business manager and sweet. I have a bunch of Gmail accounts. I mean, I still feel like they're going to have a large chunk of AI usage because the tools that integrate with Google drive, integrate with AI are Google drive, our Google calendar, our Gmail. And like, even if you want a quick hit on Google, y'all, you're always getting the Gemini summary when you Google something. So I think they'll keep that feature, but I think that's like, for me, when I think a Gemini, that's the only like use of AI Gemini I use, or a Google I use is just like the quick hit Gemini summary. What? The top of a Google search. Well, they're basically,
Speaker 4they've built the hub. Yeah. They're the hub that most, I mean, you got them and you got Microsoft and Microsoft, they have their group of users that are dedicated to it.
Speaker 3And, but I just, I don't feel like they're as easy as to use. I mean, I know there's a ton of corporate companies out there that, you know, have Microsoft three, six, whatever, three 65. And they have, they use teams and all that. But the way that Google has really built a system with like Google meet, Google calendar, Google drive, Gmail. Yeah. It integrates with AI and Claude. and everything so well that I agree.
Speaker 4think it's a smart move personally i do too um uh i had something real witty i was gonna say but that's all right i'm sure it'll come to me bitcoin 77 000 it's taken off a little bit uh it hovered around upper 60s for quite a while but it's been up lately 77 000 uh don't feel bad because i didn't take my own advice if you remember i talked about gold and i was like i said one of my buddies said that if gold got back to 4 000 that you should buy it well uh 46 80 is where it is today so it's back off to the races and we'll talk about that too towards the end of this as to why we think it might be doing what it's doing uh silver 62 62 72 30 year treasuries 5.28 and the 10 year 4.74 all up and our good friends at beyond me i had to throw in there they actually did a reverse stock split so in other words they they combined shares the share price was down to like pennies and they were going to get delisted so uh if you see the beyond meat bid it's 14.77 but the reason it is is because there's way less shares than what there was so they're still going to hit the skids but they're just prolonging the pain it's a slow painful death over there that is the market update brought to you by our good friends at conterra ag so uh things aren't getting any easier um and you need a good bank if you're in your corner and if you're in the if you're shopping for a bank if you're looking to make a land purchase if you're looking to do some leasing if you're looking to do maybe you're looking for hunting land maybe you're looking for an acreage out in the country all those things uh the boys at conterra ag and girls can help you out with go to conterraag.com and they are the sponsor
Speaker 3of the market update yeah that was a good one that was a lot of good stuff quick and easy fast i don't know how we're going to carry it on when you die because i don't think i can ever carry it on oh you'll get some there'll be some snappy you'll hire a real professional i'll have a jarvis that can spit it out for me yeah uh yeah we wanted to touch on a few starters before we get in the hot topics and the first one is just thank you guys so much for all the feedback on our last episode we did i know we didn't get one out uh last week but the week before we put out a put out a good one we've been on the road two weeks in a row we went to the state fair and did did a kind of a podcast on the road at the state fair interviewing a lot of ag people politicians stuff like that and then we went to keystone co-op in indiana they put on a pretty damn cool in-person event for all their customers and vendors and it was great getting out talking to farmers we did a we did a speech there a speaking engagement there which was really cool um but since we've been on the road we saw all your comments come in and being on the road talking to you guys at those events you know how we got so many comments of people saying how much they enjoyed our last episode and it was dad talking about where he was at 26 versus where i'm at currently today at 26 years old and you know that's the kind of stuff we want to put out in the world guys i know we got some people that said man you guys really put it out there you like really put your numbers and everything out there and it's like yeah that's that's the point of this thing is we want in this world of ai and this world of fake news and fake media and nobody being able to trust shit we feel like it's really important for us to keep it real with you guys and stay authentic and bring you guys our perspective on things and not sugarcoat shit and that's that's the kind of stuff we want to keep putting out for you guys so it was kind of a vulnerable vulnerable moment for both of us more probably so than you you than me i know i put out a lot of l's and things that i went through and i went through too but that's not easy to do all the time is to to put your nuts on the table and kind of like open yourself up to people judging you and we just want to say thanks for all the positive feedback because we didn't get a lot of negative people that hated on us we got more positive than the negative and that that really means a lot because you don't know what's you don't know who's going to come out of the woodwork when you put yourself out there like that so yeah i just want to say thanks for being so cool about it
Speaker 4yeah it was uh it was we really enjoyed uh getting out and talking to people like i said it's nice to just get that feedback one-on-one to kind of know are we right i mean are we right the way we feel are we like the outlier or or do we really kind of have the pulse of what other people in our in our world our demographics is feeling and i think the answer is at least in the two places that we've been is that we do and um as you said about keystone i just have to say congratulations to those guys that was one of the best promoted best had the best continuity through all of the signage and all the pre-promotion and how they handled the day i mean they they did a heck of a job one of the best one of the best live events that i've been to as far as taking care all
Speaker 1the details and for all the rain they had uh if you could have seen that place like at
Speaker 410 o'clock the night before we were driving into lafayette uh and we didn't have any rain all day and we were getting there about i don't know 6 6 30 or so and it just cut loose and pounded i think they got two inches of rain at the at the event site and blew a bunch of stuff over and by the time we showed up that next morning they had it all put together and you'd never know that it was a mess but other than the fact that ditches were all full of water yeah indiana has just gotten hammered pounded with rain but um i think something that kind of hit me and i it's it's been brewing a little bit and i've heard other people comment about this but it really made sense to me as we were there at that event and that is how i feel like that our society is kind of waking up and getting back to maybe where close to where we were pre-covid as far as valuing live events one-on-one conversations or group conversations and just getting out and being with other people analog yeah we that's that's kind of what you refer to it as and i think that you're gonna see as we as we move down this road of ai i think that it is going to become much more embedded in our society and it's going to become much more embedded in our society and it's going to become much more embedded in our society and it's going to become much more embedded in our society and the virtual versions of things are going to become much cheaper but i think as a result of that the real versions of things whether that be music or whether that be going to a restaurant or whether that be get it going to a workshop with a group of people of like interest the value of those analog experiences are only going to become more valuable and i told the people at the beginning of the event that i was at the beginning of the event that i was at the beginning keystone that coming to a live event is something that you just can't really put you can't put a value on it i mean obviously if you paid for a ticket this was a customer appreciation deal i mean if you paid for a ticket you can say it cost me this but you know it only takes one conversation with somebody that you meet at something like that to change your entire trajectory of what you may be doing in your life or on your farm or in your business or you personally and i think that's going to become much more valuable and i think that's going to become and you can't put a value on that and that's something that you just don't get i can't i won't say you can't get that in a virtual setting and there's plenty of people that do coaching and do counseling and all that's great but i think as we move forward there is tremendous value and i think there's a little bit of nostalgia uh that people when they go when they finally do go to event like that they kind of wake up and they go you know this is just pretty darn nice yeah if it's done
Speaker 3correctly yeah i think uh i think it's just the human experience i think part of uh part of our dna is we're supposed to be like we grew up in tribes right like people like the humans evolved like we were always supposed to be with each other a sense of community having a sense of of a tribe knowing your neighbor knowing people helping people working as a team and as as our as the world's evolved we've gotten more and more isolated more more one-on-one time more self-serving and as we continue to evolve we continue to go we just adopt the digital stuff that they've just shoved down our throat and i think i've said it so many times on this podcast i feel like amongst young people my generation and younger and even a little bit older than me there's this sense of wanting to sprint back to traditional ways of life because we look and we we ask ourselves and we feel when we do scroll for eight hours or you're on your screen time six hours plus, how do you feel? You feel like shit. When you, when you sit down and binge watch a Netflix show, how do you feel? You feel like shit. But when you get out and you go talk to people and you go to the fire, the fireman breakfast that they put on once a year in your local community, or you go to the farmer's market, or you go to the fair, or you go to an event and you talk with people, it feels good. It feels good to get out there. And I feel like it also gives people hope because, you know, when we went to the state fair and we went to this Keystone Co-op, you realize you get outside of your box and you get outside of your phone and the media and all the negative shit that's constantly feeding you. And you realize most people are good people. I mean, I don't know. I just know from my lived experience being in the Midwest, you walk around, most people are good people. Most people care about this country. Most people are willing to lend a helping hand. And it's just refreshing to see that. It's really refreshing to see that. And I agree with you. You never know who you're going to meet. And it's always good to get out there. And so I think, like you said, as this world evolves, I think people are going to be more willing to pay for experiences with other human beings that don't necessarily involve technology as much because it's a way to get away from all that. Yeah. You know? Well, you're right. Gary Vaynerchuk, love him or hate him. He is very good with trends. He was on YouTube before anybody else. He was on Facebook before anybody else. He knew what was coming and he's been pretty damn good at that outside of, I would say, Web 3.0 with like virtual reality and NFTs. He was wrong on that. The rest he's been right on. He thinks that the world is going to head to a point where people are going to like want to go to a restaurant that makes you leave your phone in a locker before you enter the restaurant and that people are going to pay for unique experiences like that that make you get literally away from technology to connect with human beings because it's going to be so, it already is so ingrained in us to be on our phone all the time. And a result of that, there's going to be just this movement of people that are like, put your phone away and come, come, you know, enjoy people's, being together. And so I'll give you a great example of that. I was just talking to my brother
Speaker 4yesterday and there's a new place that opened. I want to say it's in Nashville, but it could be in a suburb of Nashville. They live down there. It's a restaurant that opened. They have one menu. They're only open a few nights, like maybe they're open Thursday, Friday, Saturday, or Friday, Saturday, Sunday. And they have one menu and, and everybody gets the same thing. And it's like, you know, it's like a three course meal or four course meal. But when you walk in there, there's no phones allowed. You leave your phone and they sit you wherever there's room to sit you. So in other words, if you go with three people, they'll sit you at a table and it's, it's a long table and there might be eight other people sitting at that table and they sit you there. If you're one person, they're going to sit you wherever there's one spot and no phones and everybody gets the same. It's the menu's the same for everybody. And it was packed. Yeah. That's awesome. And that's just an example of, you know, that would have not flown. And I'm sure there's some people that probably that would put them way out of their comfort zone, but just imagine the conversations that you probably have that you wouldn't otherwise have. So those kinds of things are, are happening. Yeah. And you paid
Speaker 3for a real life experience. I did. I want to touch on this briefly, but yeah, I, we were at the state fair and I ended up going to a concert. I went to the red clay, I was kind of a, I would say I was a casual listener of the red clay strays before the concert. I kind of got into it more before I went and man, those guys are, that band is fantastic. If you're not listening to the red clay strays, you totally should. They've, they, it just was, again, it was another reminder of like getting people in a spot to listen to good music and the music. I feel like the music industry needs to be disrupted again too, because we are in this world and generic and surface level pop music being the top music choice that is put out in the world and is at the top of the charts. But like go into like red clay strays where every song has a feeling and a meaning to it. It just like brings you back to the old ways of music. And I just look at the talent that they have. And I'm like, man, if they were in the fifties, sixties, seventies, eighties, they would have been huge. Like the talent level that that band has is insane. He, the guy, the lead singer is like a mix of Elvis and Johnny Cash put together. He looks like them. He has an amazing voice. And I just wish music would go back to being like that where band it was bands. It was like dirt road, you know, like red dirt country and rock. And you're like, I always, everybody agrees eighties, I think was the best, you know, that you guys had the best music culture in my opinion. Well, I think the eighties was the end of music. It was, you guys didn't have every option. You can't just click every new song and go to new albums and pick and choose what you wanted. You had to actually download a record and, or have a record and listen to the whole thing. Yeah. If you
Speaker 4wanted a song, you had to go buy the album. And in the process of buying that, you ended up listening to the old, the whole album. And that's why you had guys like Bob Seger, or you had bands like, you know, foreigner or sticks, or, I mean, even as you got later on, you had bands like in the eighties, you know, Motley Crue and Bon Jovi and Guns N' Roses. I'd say Guns N' Roses. I loved Guns N' Roses, but Guns N' Roses was, that was the end. And that was the flip because before they came along, that, that music was mostly, it had an edge, but it was mostly positive. And it was mostly about having a good time and partying and, you know, fast cars and all of that. And Guns N' Roses was the beginning. They straddled the line between rock and grunge, and they were the beginning of grunge. And then, and this is, you know, somebody's going to, somebody's going to pick this apart. But in my mind, there was a negative edge to that music and it started, everything changed after that. And I think we're still feeling the effects of it, but yeah, I mean, Red Clay Strays, that's a band where I think you could listen to every song on one of those albums. And
Speaker 3they make me want to buy a record player and buy their record. Right. Because like, I listen to their music and I'm like, every song has a, it makes you feel something and it has a meaning to it. And it's just good music. It's, it's not rumble. It's not rumble mumble rap. It's not another pop song about a heartbreak. It's like meaningful shit. You know? So I, I love, I love their music and it was just good to get out there. Set list was great. Concert was great. All of it was great. And I think we need more music like that.
Speaker 4Well, uh, speaking of things that gave a lot of people a feeling.
Speaker 3Yeah. So we're going to, we're going to transition to our first hot topic. And today's main theme of the hot topics is going to be this, the whole beef outrage. And we're going to, we're going to break down each part of this beef cycle. That we're going through right now and every, every problem that's going on with it and just touch on it and kind of round it out at the end. And the first point that we got kind of part one is Trump opens the door to 300,000 tons of foreign ground beef. So if you didn't see it in the news Friday morning on truth social, he, he put out that he's, he's wanting to bring in up to 300,000 metric tons of ground beef product imported tariff-free for 90% of the country. And he's with a commitment that it sells 25% below current market. He did not say who that was going to be, who that imported beef is, where it's going to come from. But basically we have imported beef from Australia, Brazil, New Zealand, Uruguay, um, and Brazil. They're, they're sitting on a 76% tariff that Trump put on this spring. And so they're basically going to just do away with that. And just to give you context on what is this beef that we're bringing in? Uh, it's not like it's steaks. It's all lean trimmings. And like the night it's like the 90% lean stuff. So American fed or American cattle are fed, you know, they're fattier cattle, right? Um, foreign grass fed cattle and cold cows are lean. So to make an 85% lean hamburger, you gotta, you gotta mix about seven pounds of lean trim with one pound of fatty trim. We don't, we don't, we don't, we don't produce enough lean cattle in this country really to, to kind of get that, that lean part. So they, they're importing that trim to make more ground beef. Um, the U S already imported 562,000 metric tons of beef last year. It's up to up 18% from the year before and 122% higher than five years ago. And that's from farm Bureau imports are, are now about 17% of the U S beef supply chain. that's an all time high. high. The herd is the smallest it's been since 1951. Hey, thanks for sticking with us. You know,
Speaker 4farming gets more expensive every year, and diesel engines love to throw codes at the worst possible time. Propane is simpler, prices stay steady, and it's much cleaner and cheaper to maintain. Plus, the Propane Farm Research Program offers up to $10,000 towards new propane-powered equipment just for sharing your data. See the equipment in person at Farm Progress and Husker Harvest Days this year. Check it out at propane.com backslash farm funding. Now, let's get back to it. Yeah, and I saw that a lot of people, well, I wouldn't say a lot of people, but a lot of people find it curious. First of all, that number, that $300,000.
Speaker 1This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses, setup required, compatibility, and availability varies 18 plus.
Speaker 4That's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but that's a number. It's not a huge number when you consider how much beef is consumed per person, but it's very interesting the timing of it because he came out and announced that, and then USDA came out in the afternoon and gave you the cattle numbers. And the most disturbing part, I guess, if you're a packer, of the cattle numbers was, and I think you have it maybe, but the feedlot placements for July were down, I can't remember. I can't remember, like 17% or something like that. Basically, the gist of the report was that we have fewer cattle, and ranchers aren't retaining very many more cows than what they have. So, in other words, the herd isn't growing very much at all. So, this cycle of not having enough cattle is probably going to continue. And a lot of people think that this, this, this tweet or this statement that he put out was basically to head that off because after that report came out, cattle prices actually went down. And a lot of people think that if that would have been made, obviously they would have gone up because everybody would have saw that, well, there's going to be less supply than what we've got now, and so the prices are going to be higher.
Speaker 3I think people are speculating that this is just a way to, he's saying that this, importing this beef is going to get the price down at the grocery store. Well, people say we already ran this experiment in October of 2025. Trump opened the door to Argentinian, Argentinian beef or Argentine? Argentine. Argentine beef and expanded, expanded to 80,000 tons for 26 in February, 2026 in February. So, every cattle group Friday pointed out that it did not move the grocery store price. And it's not going to. This is not going to. This is the same play that he's already made, but just four times bigger. And just to give you some context, how much is it really? 300,000 tons is about 8 to 12 days of total U.S. beef consumption, or about 44 days of ground beef specifically. So, it's kind of a short-term drop in the bucket play. And I don't know if this is just to, again, I think, like, it's pointing out that this isn't going to help the grocery store price, but I'm thinking that they thought that it would. And I think that they're trying to alleviate some of the pressure that consumers feel at the grocery store to then buy some votes come election time. That's what people are speculating on. I don't know why else you would do this. But, you know, every beef person, I mean, so, the National Cattlemen's Beef Association, the big mainstream producer group, which leans, Republican, most of the time, said that they're disappointed. The CEO, quote, said, flooding the market with government-subsidized below-market beef is not the way to rebuild the American cattle herd. And it sacrifices long-term stability for short-term messaging. Or messaging. Yeah, messaging. And also, a bunch of Republican senators from the cattle states pushed back on it as well. And this is, why cheap imports hurt the herd. A rancher grows the herd by keeping heifers home to breed instead of selling them. That heifer costs him money for two years before she has a calf. He only does that if he believes high prices will last. When the president shows up and caps prices, the second hamburger gets expensive, what do you think the rancher's going to do? He's going to sell that heifer instead. And he's going to get paid for it. Yeah, get paid today rather than invest back in the herd. So, that's not going to help the herd. Because the only way we're going to do that is The only way we're going to help herd is what? Yeah, hold them back.
Speaker 4Hold more cows back. Well, this might be... Some people are going to say that I'm maybe being a little dramatic about this. But I think that the cattle business in the United States is... It is very valuable to the security, the food security of the United States. And that whole beef deal, the supermarkets are not going to change the price on beef because it is no different. We've seen this with the hogs. Once they have the consumer trained to pay a price, they keep prices as... as even as they can. They take them up very slowly. And when their cost goes down, it takes them a long time to take their cost down. Because once they get somebody used to paying a price, they keep them there. So, this little blip of increased supply is not going to help the consumer. And the uncertainty probably hurts the producer more than anything. But the cattle business is the only protein business in the United States that has not been completely vertically integrated. And you can say, yeah, there's some independent cattle guys out there. And there's some, you know, the chicken business. Well, there really isn't anything that's not vertically integrated.
Speaker 3You meant hog guys. In your last point, you mean that, yeah, there's still some independent hog guys.
Speaker 4Yeah, there's still some independent hog guys out there. I mean, it's a decent amount, but they're selling to packers that are all vertically integrated, even though they don't own their, you know, their pigs. It's... It's... It's pretty well vertically integrated. The poultry business is 100% vertically integrated, as is the turkey business. The cattle business is one of the only independent groups left in this country. And I think it's very valuable. And I think we should do everything we can to... Keep it that way. Keep it that way. And we need to be... These cattle guys don't want... They don't want to bail out. They don't want a subsidy. The best thing we can do for them is, one, we can... We can help them secure financing because it's very expensive to run a cattle business and the numbers because of the price of the animals and what they're getting for them. What you had... Like, if you had an operating loan, if you ran an operation and you had a million-dollar line of credit, today you need a two-million-dollar line. to operate the same number of cattle that you operated on, you know, five years ago. There's fewer banks. Banks are getting consolidated. They need access to capital. They don't need special financing. They don't need... They don't need any of that. They just need certainty and bankers that have access to capital that can loan it to them so that they feel like that they've got a little bit of certainty because if you decide you're going to save back a calf and you're going to end up with a cow and then you're going to sell the calf from that cow and get money, that's a three-year process. From the time you hold that calf back until you sell the first calf that comes from that cow, it's three years. Actually, it might be more than that. I don't know. I'm not a cattle guy, although I'd like to be, but I'm not. And so you're sitting here and you're playing around with the market. It's just... I mean, it's basically like... spitballing at the wall. You're not going to change the long-term problem, and we'll get into that because this is just one small part of it, but the long-term problem is that we didn't get here overnight. This all started six, seven years ago.
Speaker 3This is a structure problem. This is like the government... This is like a doctor solving one of the symptoms and not the root cause. This is just a Band-Aid. This is to look good. And I just... I don't really understand it because if his goal is to... to lower grocery store prices so that consumers feel better about when they go into elections, they, they feel like the economy is better than is, is it just to give off the perception that the economy is better than what it is? It's not going to do it. It's not going to do it. It's not even going to work. So I don't, nobody's going to remember this by election time anyway. Yeah.
Speaker 4It's not going to do anything.
Speaker 3I want you to hit, I want to hit on this point. Cause you, you bring this up a lot when we, when we're talking at the dinner table and it's, it's this point of, and this is shout out to the, our friend, good friend, he's been on the show before Jason Monk, but it's this idea that the GDP of American agriculture back in the fifties and sixties was significantly higher than where we are today. And I feel like these politicians come out when they're running and even when they're in office, they all like to champion that they're for an American farmer and rancher. They all like to do it. But at the end of the day, they're, they're for you enough so that the food system is secure. But, and, and they've done a great job of having people come out to the white house, you know, this year and go to the, and, and listening to, we're listening to farmers and ranchers, but don't get it twisted. They're also listening to Tyson, JBS, Smithfield, everybody in the meat packing business. That's lobbying hard. They're listening to them too. And black rock and straight street who own major positions at all those companies. They're going to they're the optics of being for the American farmer is a good thing for any politician. Yeah. On either side, they all say it. They all say it. Democrat, Republican. They're always going to say, because I don't know if it's just, it just has this, the American farmers is a, is a, is a story of America.
Speaker 4Yeah. And so it is the preferred campaign trail stop to go to a farmer shop, put on this hat and put on your, put on your button up shirt and your blue jeans that you've, you won't put on for another four years and go, go out to the farm and Trump around riding the tractor, get those photos. That's what it's about. But to Jason's point, it doesn't, it's, it's, it's lip service today. They tell, they, they want that vote. Although that vote's not as important as it used to be because they don't hold as much power and there's not as many of us. And it's a great photo op for the rest of the country because people look at it. It's the same reason why you pick up a pack of hot dogs or meat and there's a picture of, of a red barn with white trim on it, even though nobody's got a red barn with white trim out in the country, but air bay likes the nostalgic idea of the American farmer because it is, that is the American dream, the independent American farmer.
Speaker 3But yeah, don't are, well, but to your point, why I was saying the GDP thing was our voice as American farmers and ranchers has, has shrunk because what we bring to the economy has shrunk. AI and technology is one of the biggest sectors. Technology is one of the biggest sectors of our economy and there's others too, but farming is getting lower and smaller and where they're smaller and fewer amounts of farmers. So our, they say our voice is powerful. They say we have a voice, but when you actually look at the economics, our GDP in agriculture is a lot lower than what it used to be. And I feel like we used to have a bigger say in what transpired in this country and our, our voice, was valued what we wanted was valued. Now it just feels like it's more like you said, it's a photo op. It's the nostalgic vibe that we are for the farmers, but when it actually, and ranchers, but when it actually comes down to the decisions, they have to, they have to walk this line of giving a little bit to the farmers or being for the farmers enough to keep them somewhat level, but also take into account all this other stuff.
Speaker 4And this plays right into this whole thing. People to that point, people will say, well, look at all the subsidies. Look at all the money that Trump has given to the farmers this year. Well, but is he really giving that money to the farmers? Because we've talked about that. All that really is, is a pass through. The farmer is a pass through because most of that money didn't go to livestock producers. It went to row crop guys. And. That money that the row crop guys get, guess where it ended up. It ended up with the equipment manufacturers. It ended up at bear. It ended up at your, your chemical companies, your fertilizer companies, your seed companies, your equipment companies. That was a bailout for the ag manufacturing sector, not the farmer. I mean, it's, it's just, it's very true.
Speaker 3We always said that when that, when that whole line was coming out about the whole farmer bailout, I talked to a lot of farmers. We, we talked to farmers. We follow farmers. We're in this world. The amount of farmers that were asking for a bailout. Yeah. There weren't any farmers lobbying for it. Nobody was asking for a bailout. Who was getting, who was asking the government to bail them out is exactly who you're saying. It's the ones that profit off the farmer. They needed the bailout, not us. And so this is just, that's a, that's a whole nother subject, but that's an example of what we're talking about here.
Speaker 4Of, I want to say one more thing. All that whole conversation about bailouts and money to the American farmer. The best thing. And this is why cattle producers are so important, but it's not only cattle guys. It is livestock producers in general. There is all this time and, and rah, rah spent and politicians kick this ball back and forth about, about rural America and the decline of rural America. The single best thing that could be done for rural America is to increase the amount of, and diversity of, and number of people involved in animal agriculture in rural America. And one of the most stimulating businesses for a local economy is guys that feed cattle, guys that raise cattle. And I, and I, I mean guys that raise hogs too that are, you know, that aren't vertically integrated, but even the ones that are like you take our community contract, finishing is huge here. And we have one of the most prosperous small communities in Iowa. And it's not because of, it's not because of row crops and I'm not bagging on the row crop guys, but the amount of money that you stimulate a local economy is much greater with, with animal agriculture. And it's much greater within animal agriculture for guys that raise cattle because. You're buying the tires, you're buying the hardware, you're buying the fencing, you're buying the posts, you're buying the trucks, you're buying the stuff. You're that money stays local. And that, that's what scares me is there's two, there's like two worlds. These guys, these politicians talk the talk, but they all know this. This isn't like, I'm sure as hell, not a brainiac. It doesn't take a rocket scientist to figure out the economics of, of rural America. We should be doing everything we can to help more people get involved, raising livestock. But we aren't doing that. Instead, we're playing word games and doing this photo op about bringing in ground beef to help lower the price. And I don't think it's going to do a darn thing.
Speaker 3It ain't. And this is going into part two now. So this is more on the Packer side. So a lot of, a lot of stuff going on with, with Tyson specifically. So I'm just going to break it down here. We got five different examples of Tyson, either selling a plan off, closing a plan off. So we got Jocelyn, Illinois. They closed about 2,500 workers, roughly 3000 head a day gone. Not much of a notice at all. Eagle mountain, Utah, another closing. It was a case ready plant, not a slaughter plant case ready means it packaged retails, cuts for grocery store shelves, uh, probably, you know, co-packed for butcher shops, direct to consumer meat businesses, et cetera. Tyson invested $300 million into that in 2019 to build it saying that it would have 800 jobs with a capacity to expand to 1200 seven-year-old plant, $300 million closed Pasco, Washington being sold, not closed 2000 head a day. NCBA welcomed Tyson's decision to seek a buyer rather than closing it outright. Well, Lexington, Lexington, Nebraska, this one, it was not a shift cut. It was a full closure. So there was a lot of speculation if they were just cutting shifts or if they were closing, but announced in November, 2025, and it got closed in January, 2026, eliminating 3,200 jobs. Tyson was by far the largest employer in that town of about 11,500 people, 5,000 head a day. So think about that. A town of 11,500 people, 10,000 people lost 3,200 jobs like that. Amarillo, Texas. That's the, this is the one I think that was a shift cut. So this one, this, I think this one was just a shift cut. So that, and this happened around the same time of, of the Lexington, Nebraska announcement. So Tyson now plans to restore Amarillo to two shifts as cattle available, cattle availability allows. So they just cut the shift. at that one, didn't close that one, but Barclays put daily slaughter down for tyson from about 10 000 head since the start of 2025 they've lost 10 000 head of daily kill so they're at 18 000 to 20 000 today they were roughly at 28 000 to 30 000 uh so they cut it down by a third yeah and why are they doing it well so uh let me find where i want to kind of go i kind of want to go a little deeper on that because a packing plant is a giant fixed cost and i think you pay for the building the line the refrigeration and the crew whether you're killing 5 000 head a day 3 000 head a day right now packers have room for 6 000 to 8 000 more head a day than exists the reason is why this is happening is because the cattle herd is shrunk there's not enough cattle to keep that thing running and humming at full capacity and so as a result they're not making very much money they're losing money they're losing they're losing money sorry they're losing money um and so you have all these packers out trying to outbid each other to fill up their plants and right now uh people are saying sterling marketing has said that packers are losing about 200 to 300 ahead most of this this episode is brought to you by google chrome you think you
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Speaker 3as 311 head in july tyson's beef segment of their business could lose up to 650 million dollars this year that's why there's your answer as to why they're closing plans that's 100 the reason why they're closing plans that's 100 the reason why they're closing plans that's 100 the reason why they're closing plants and tyson's come out and said the reason we've closed these plants or sold plants or took down shifts is we're going to maintain we're going to main it's all happening because of efficiency we're going to maintain a similar level of cattle harvesting across a more efficient and modern network but analysts don't buy that shit they're they're trying to do damage control um and it's it's not really you're not really fooling anybody yeah and i know you got
Speaker 4more to say but this is an example of how we're going to be able to do this we're going to be able example of the problem that you get into when you consolidate consolidate consolidate packers because today we're left with is it just three uh corporate packers they say the big they say the big four but okay you have to remember that when you have a corporation that owns a business and i talked a little bit about this in the seed business but there is a certain expected level of return to the bottom line and if they can't make whether that be 20 or whether it be 40 or whatever it is to the bottom line they aren't going to do it because they have to answer to a board of the shareholders and you know who the shareholders are there's all i mean there's tons of people that don't own stock in these companies but black rock state street you name it they own big chunks of these companies and if they're not getting the return they want the management team that's in there they're going to get booted and they're going to get somebody else in there and so this idea that you have people within these companies they have ad campaigns and they have media managers and they have a lot of money that gets spent to put out an image of what is important to them and that money gets spent for them to tell you a story about they care about wholesome food they care about the farmer they care about you know being a strong partner to the american farmer but on the back side of that you have wall street that actually controls the board of directors that pulls the strings and the only thing they care about the only thing they care about is that profit and if that profit isn't there you have to get more efficient and the only and admittedly the packing business is a hard business whether it be cattle whether it be hogs whether it be poultry it is a hard business and the margins are thin on it and that's why we got to this point was they they merged and merged and merged to get efficient because the bigger you get the bigger the bigger you can build a plant the more efficient you get on everything the problem they have is they there aren't enough cattle so it's hard for them to be efficient so the pressure is there from the corporate side to close any of these smaller plants because their cost per pound that they have to get to sell at the wholesale price is higher from these smaller plants and they can say whatever they want you know making it more efficient yeah and them being part of the community and they want to be blah blah blah blah blah it comes down to if they aren't making money all of that's just pillow talk
Speaker 3if they're not making money yeah yeah i would just i would say you know the chain in one breath herd is at a 70 the herd is at a 75 year low from drought and years of losing money cattle gets expensive ranchers finally in profit packers are losing two hundred dollars a head packers close plants rational for them permanent loss of rancher leverage less domestic beef hamburger gets expensive election year government doesn't fix the herd or the concentration it imports three hundred thousand tons of foreign trim the trim keeps the grinder full which is exactly what the three remaining packers need or four remaining packers need rancher gets a smaller bid and a signal not to expand so it this this is like this is a structure problem we're going to go back to it every year and we're going to go back to it every year and we're going to go back to it every every every part of this but i mean this this solution this isn't a solution no this is a band-aid to look good and hopefully i guess again solve the price of the grocery store but i don't even think it's going to achieve literally i think all all this was was i think there was fear that
Speaker 4after that cattle report that the cattle market could go could jump big and i think they just put it out to put a cap on the cattle market yeah i i honestly think that because it's not going to change anything for the consumer um and if we make it all the way to the end of this one of the last points we have i think is probably the most important point well you shouldn't say that of all that no i'm not gonna say it now i'm gonna wait but um this is just another example of the problems that we have and we are in a bad spot because we have a we have a government who is only interested in short-term fixes because everybody involved at every level of government is only there as long as they can get re-elected so when you have a problem in the cattle business that has taken more than a decade to get to the where it is today and it's going to take at least i would say it's going to take at least six years to fix it because there's no way you're going to be able to hold back enough calves if they're going to be able to hold back enough calves if there was an if there was like a real incentive tomorrow for ranchers to hold back cattle you it would take you two cycles to hold back enough calves to grow this market of any size to fix this problem so you have a at best a six-year fix within a government and a society that's on a two year election cycle because you're trading the you're trading the presidency every four years and you're trading the house and you're trading the state and you're trading the government and you're trading the senate somebody's getting re-elected every two years and all they care about is can i campaign on this so i if i'm the guy that's in power i gotta make look i gotta make it look like i'm fixing it and if i'm not in power i gotta make that guy look like an idiot he can't fix it and as a result nothing gets done and they're not going to be able to do a damn thing
Speaker 3about it yeah and this isn't just the problem in this specific issue that we see we see in this country this is a problem with the people that are in power and they're not going to be able to with all of all the problems we have in this country it's the same shit yeah they run on shit they don't do nothing about it they all run on immigration one side or the other they all run on on abortion one side or the other but does anything actually get done yeah no and i'm not
Speaker 4going to jump subjects at all but as another example of how government just yo-yos i saw a i saw a map two days ago the united states of every proposed natural liquefied natural gas power plant that is either proposed or uh licensed or under construction and it's like there's 260 sites three years ago there was like less than 100 there might have been less than 50 but when trump came into office and and i'll say this part of the reason that there was let that it had gotten that low is because under the Biden administration, administration they had basically just vilified all fossil fuel uh power generation to the point the only the only plants that were had any incentive to them was wind and solar and that was all they cared about so nobody was proposing natural gas trump comes in and guess what he does he incentivized fossil fuel and he cuts all the subsidies for solar and wind so now then everybody jumps on that's where the money is and the truth is we need all of it like we need so much power that we need all of it we need to incentivize all of it but it's politics and this is the same deal it's just it's just this yo-yo this election cycle this this i gotta make it look good for me and make the other side look bad short-term short-term thinking
Speaker 3yeah uh i was just gonna say this is it's amazing that we have the food system that we have in this world in this country we would not be able to do what we're doing without this infrastructure that we have and we would not be able to feed all the people we gotta feed and it's we're fortunate to have food on our grocery stores in this country but this is why both sides of agriculture whether you're regenerative or you're doing regenerative practices or sustainable practices i feel like that subset of agriculture is a lot more open and wants to push for a localized food system and on the other side you have the guys that have always played in the commodity game and want to stay in that game but we have to come together and realize like something has to change we can't go all the way this way and say we're not going to say we have to get rid of you know confinement we have to get rid of all the ways that people do things in in agriculture and if it's not regenerative it needs to get cut out we only need to have regenerative farming in america that's not going to work so get that out of your head but how can you bring both sides to the middle and say okay well we all need each other and we all need to be doing the best job we can but but we need we we this is a result of this is a result of consolidation we need more localized options we need more funding and more programs for for like you said get young people get people in animal agriculture whether that's regenerative side or conventional side we need it we need more local processing we need more food we just need more options yeah because this is an example of big big packing plants and government dictate what the heck happens to the American rancher and they can't do nothing about it right they haven't and there's no other way there's no other outlet for them really I mean you can't you can't do anything about it and that sucks that I that absolutely sucks I hate that and so I don't know what the answer is but I know that I just can't stand not being able to control your own destiny and we continue to just allow this all to happen and somebody something has to change yeah no amen to that because in the sorry but in the consumer I had a conversation with a guy at Keystone about this when we owned when I owned PharmaGrid and I would have people say you know you're cheaper than the grocery store right it's like the consumer wants this product wants local food wants all these things but are they willing to pay the price for it well and so it's just this complex this is a very very complex problem because the consumer wants one thing but they won't pay the price it's it's hard to run all these plants independently it's a very hard business to do nobody wants to do it or nobody can sustainably keep them going and so what happens is everybody consolidated and we have this big problem but we also have to keep the food security secure and it's just like how do
Speaker 4you it's a big big big problem and the consumer's getting squeezed on everything so it's hard for them you know it's hard it's hard to it's hard for them to spend that money because everything is everything is going up and the sad part about this whole deal is if you follow this to what is possibly the conclusion is that we'll close enough plants to get the efficiencies to where the big packers need it to be to make them profitable and we will have shrunk the cattle herd limited opportunities for young people to get started in the cattle business and take away any incentive to grow the cattle business and we'll make up that gap instead of just importing hamburger we'll be importing more and more and more beef from outside this country to fill that gap rather than it producing it here and that to me is no different than the gap that we're trying to do with bringing more fertilizer back to the united states and onshore it it's the same thing as why we're trying to onshore building chips it's the same thing why we're trying to build more power here more oil exploration we should be trying to grow as much of our food here but instead we're our policies and our politics are making it harder and i don't think that's right
Speaker 3i don't either part three the mexican borer opens monday screw or screw worm just showed up in sedona arizona so what actually crosses the border not beef but live feeder cattle mostly light calves they go into american feed yards eat american corn and get killed by an american packing plant mexico's cattle export business was 1.2 billion dollars last year before the closure and it was roughly a million plus head a year feeding into our system um shutting down that border took over over a million head a year out of the american feeding and packing pipeline on top of the drought shrunk domestic herd that is why tyson that is another reason why tyson is not filling these plants or jbs is not feeding or filling up these plants this is just another issue sub issue adding to this bigger overall issue um so monday august 24th the douglas arizona post reopens to mexican cattle for the first time in a decade and it's a big issue and it's a big issue and it's a big issue since july 2025 closure sonora sorry sonora not so did i say sedona or did i say sonora okay sonora confirmed its first screw worm case wednesday and 292 miles from the border and the usda says no change to the they say there's no change to the reopening sonora released 360 000 sterile flies around the case um texas has confirmed more than 40 cases since the parasite crossed into the u.s this summer mexico has 1969 active cases down from down more than half from a year ago um but the current state is we shut the border for 13 months it costs sonora ranchers 40 of their income texas got 40 cases anyway and now reopening it with a case of with a case 290 miles away from the border uh if you really wanted to get macro with it the herd is at a 75 year low so the packers can't fill their plants so they're closing the plants permanently which means the ranchers leverage is gone right as prices finally got good washington's answer to expense too expensive burger isn't to fix any of that it's it's it's to buy foreign beef for 90 days and hope nobody notices until uh after november yeah uh one one caveat on that
Speaker 4is the u.s is uh they i think it's built or whatever uh yeah built they they spent a bunch of money and worked with mexico building up their sterile fly uh production in mexico which is probably why the cases are going down there and they built and i don't know if it's in production and where are those sterile flies that they released there came from but they they've built a massive facility down there in texas and i think their thought process is that they're far enough along that they're going to be able to get enough sterile flies released that they're going to be able to get a handle on this and it's going to be i mean now once again that means that there's a bunch of people down there that are all saying hello we're from the government we're here to help which is never a good thing but i think that's their thought process so i don't know where this all ends i mean at the end of the day i think it all goes back to exactly what we talked about earlier there is no there is no quick fix to this like literally i think the best case scenario it's a six-year deal to get the cattle price or to get the cattle herd built back up to where we were before all this i mean this is what i have we have a section it's
Speaker 3just like what to leave with you guys and i think it's a six-year deal and i think it's a six-year deal and and this is like we said it's a complex problem but first point is this didn't happen in 90 days and it's not going to get fixed in 90 days uh a cow takes two years to make a And a calf takes two more to become a steak. The herd shrank over six years of drought in red ink. Nothing a president posts on Friday morning changes that timeline. And anybody who tells you that it will change it has got some other agenda. They've got another motive. They've got another motive that they're running on there. Another point that we have is every player, everybody involved in this story, did the rational thing, but yet the American farmer and rancher still lost. You know, Tyson closed plants it couldn't fill. If you're Tyson, what would you do? You're going to shut them down. It's capitalism. That's rational. Washington imported cheap trim to calm grocery store prices, even though I don't think that's really going to work. In their mind, somebody said that that was the rational thing to do. That's what's going to happen. We're going to get the price down at the grocery store. Mexico wants the border. We're open. Rational. I mean, it's a big part. They're bringing a lot of cattle to America. It was working. They were making good money probably doing that. They were shipping a lot of cattle over here. None of them, well, it says none of them are the villains, but I mean, there's, I think, I don't know. I don't think anybody's trying to do anything. They're all trying to survive. They're all trying to survive. That's right.
Speaker 4So of all of the things that you listed off there, probably the, the best, the thing that could move the needle to help save packing that hurts the American cattlemen probably the least of those, and it actually helps some cattle guys, is being able to get those cattle into America, out of Mexico. They're buying them. I mean, there's feedlots are buying those cows, those feeder calves to feed out. And the upside of that is, is that they're feeding us corn. It's jobs for those guys and those feedlots. And they're the ones that are ultimately making the money. And they're the ones that are hiring people. That's probably the best of bad options. Yeah. The thing that is going to do the least of all of it is any of this rhetoric out of what pretty much anything Washington's going to do is not going to do anything. It's all, it's all just, it's all just show and tell and, and sock puppets pretty much.
Speaker 3Yeah. And I just have a point on here. It says when every individual decision is reasonable and the outcome is still bad, the problem is the structure, not the people. Yeah. I mean, and that, and that just goes back to this system that we find ourselves in today. Something's got to change. Yep. Something's structurally got to change. Yeah. This consolidated world. We find ourselves, we find ourselves in not just in agriculture, but everywhere you're seeing this consolidation and it's going to catch up to us. It is going to catch up to us. And here is a case in point that this it's catching up to us. Yeah. It's not good. It's not good.
Speaker 4One thing that I, I think that has changed a little bit, and this is very small scale, but I would say the number of people that we talk to when we get out that are doing like selling freezer bags, beef. So in other words, I think most cattle guys have figured out. I wouldn't say there aren't any doing it. There are some doing it, but a lot of cattle guys, they know that it is a tremendous amount of work and it's difficult to do the whole nine yards of taking your cattle to a locker, getting it processed, getting it packaged, getting it labeled and then retail and retailing it. They don't want to do that, but a heck of a lot of guys that we have talked to, they do what they call freezer beef, where they get locker dates. They let, you know, they let people know on Facebook that we have cattle that are going to locker. This is the date you can get a whole, a half, a quarter, whatever. Uh, and they sell it. They get their price for that, for that beef. And then they pay the locker for processing it. And there's a huge demand for that. I mean, it's, it's small per guy, but I think it's happening.
Speaker 3I would say that is something that, uh, not to keep your, keep your thought on your point, but that's something that brings me a lot of optimism when it comes to agriculture and food and meat. It is becoming cool again to have a garden, to buy produce straight from the farm, to buy farm fresh beef. It's becoming cool. Even in the suburbs, even in the cities to have a freezer full of, it's becoming a flex. It's becoming a flex to have a freezer full of meat, full of, full of farm fresh beef that comes from the farmer that you know, or pork or chicken or chicken. It's becoming cool. It's becoming cool. And that's what you're seeing in culture. I've said this before in my personal Tik TOK. It's not even just that the whole country living rural America, having your own acreage, having your own chickens, knowing your farmer, all of that stuff is becoming cool. Yep. It's becoming, it's becoming the way that young people are wanting to live and strive for. Like it, it really is. And people are, I don't know. I've gotten some backlash because people say, Oh, I don't necessarily see that. But I think you are seeing that in culture. It's becoming a cultural thing. That's happening.
Speaker 4Do you, I don't, I've never told you this. Maybe I have, but, and some of you out there may remember this. It may have been that way when you were younger, but when I was a kid, uh, what we always did is we took, we took a hog to the locker and got it processed, or we took, uh, lambs and got them processed. My mom could cook a lamb chop so hard that you could knock somebody out with it. That was the, if, when we came in and you smelled lamb being cooked, oh man, I asked cause that, that'll give your jaw workout. My mom, she, I don't know. She was a great cook, but those lamb chops, they were like hockey.
Speaker 3That's where you went to the freezer and got the Schwanns. Yeah, that's right.
Speaker 4But did I don't know if I told you this, but when you would go to the locker in Kelowna, Iowa, when you went in there, they had this big area.
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Speaker 4And it was like a, uh, it looked like kind of like a post office. Like, you know, when you go to the post office, how they have a PO boxes and you have your key, they had the exact same thing, but they, they were these big drawers and they were different sizes. Cause some people had bigger ones. What you could do is like, if you bought a, a quarter beef, you paid so much like to store it there and you stored it there. And it was this big drawer, you unlocked it and you pulled it out. And the whole back of it was the big freezer behind, but the front was these hoppers. And so we would go up there. Uh, we had a deep freeze at home, but like if we had something processed and our freezer was full, we would just leave it there. And then every once in a while we'd go up there. And I remember loading up cardboard boxes and we'd go put it in the car and bring it home. But they probably had 50 drawers like that. So, I mean, that was a thing. And I'm wondering whether something like that, I mean, I don't know.
Speaker 3That'd be really cool. And not even just on the, like the quarter half whole thing, but if you're a butcher shop, it'd just be cool to like, you could almost do, that's like almost a subscription model just in real life. Right. Because you could just like, if, if you knew a guy was like every week, I need six ribeyes in this case. And I want to come by on Saturday and I want to pick them up. Yeah. And they didn't have to be there. That front was always unlocked.
Speaker 4You just could go in and you had your key for your box. It was just like a mailbox. That's very cool.
Speaker 3No, I've never heard of that. I've never seen that. Yeah. That's, that's cool. So yeah, that's the way we used to do it. Yeah. All I'm trying to say with that point though, was like, like that gives me off. That makes me feel a little optimistic because I think the American consumer culturally is moving. They, they, they, they want, there is something there. They, they, they, culture wants farm, fresh produce, farm, fresh meat. They want to support agriculture. It's just kidding. If they can pay the price, that's the biggest thing. Yep. That's right. Last, you know, another point that we want to leave with you guys regarding this dad already touched on it, but the beef producer is the only protein producer left. That is really independent. Hogs, chickens, Turkey, all vertically integrated. One has to wonder if there is an effort to send the cattle business the same direction. And I think whether you're an American farmer rancher or whether you're an American consumer, you got it. We got to advocate for that not to happen. We cannot allow that to happen. And it's all to the points of what dad said. We animal agriculture stimulates rural America in a massive way. Our town is a perfect example of it. And there's plenty of towns in rural America that are the same way. We have got to keep cattle producers independent. We got to, we cannot let them be fully integrated. either, because if that happens it's just adding it's just making this structure even worse not better we can't and it's not what the consumer wants it's not what the consumer wants uh last one is the fix is more doors not fewer rules we don't need the government to run the beef business we need enough independent packing capacity that no single company and no single president can decide a rancher's price conventional or regen big or small that's the thing that everybody in this audience should agree on until then the packer and the president will keep deciding what your cattle are worth and they'll both tell you it's for your own good it doesn't matter if it's a left-wing president right-wing president doesn't matter politicians all of them it's what we've said it's just reiterating the point that we've made we we got to do there's we got to get away from that we got to get away from everybody else controlling our own destiny like
Speaker 4usually this like usual the solutions are actually going to come from the people involved and not from the politicians yeah and the politicians just need to stay out of the way yep so 100 percent uh the next the next topic that we got uh this has been stewing for a while and we're not going to spend a lot of time on it because we've got some other we got some other just kind of hot button things that are happening but uh the whole canadian u.s trade thing uh kind of blew up last night uh so not just canada but mexico but for this we're going to talk about uh canada because the the u.s canada mexico trade agreement is up for renegotiating and renegotiation and they've been negotiating it um and back in july trump said canada uh treats three american industries unfair cars booze and dairy and dairy is kind of an old complaint that canada slaps huge tariffs on american milk and cheese to protect its own farmers uh so he announced a 50 tariff on about 20 billion worth of canadian stuff as payback and uh carney who's the canadian prime minister he he's just he's well he likes a good photo op like trump does and he's been running his mouth every chance he gets about how bad you know the united states has been treating canada and trump's been throwing it right back on him and um he he came out and said that uh where is that um oh so he announced trump announced 50 tariff on about 20 billion worth of canadian stuff as payback not every canadian not everything canada sells us which is about 380 billion dollars a year just targeted just a targeted list and those tow those tariffs were supposed to hit on august 19th on tuesday trump said that we had a deal um you know this has been a season of trump saying that we have a deal on a lot of things and then we don't necessarily have a deal and this is this is where we were and he said we had a deal and paused everything for three days and thursday went on tv and said that canadian tariffs would be non-existent for our farmers friday night the two sides were still in a room in washington at the last hour canada says the u.s added new demands limiting canada's ability to make trade deals with us other countries and something about canadian language and culture protections carney said they were too much and offered too little and called his negotiators home suspended top talks and at 1201 this morning the 50 tariffs were all switched on so canada says it'll match dollar for dollar starting september 8 steel is on their list and we don't know what else and so who knows where this ends up uh they're both they both been playing hardball with each other and it's kind of a war of words canada is by far our biggest trading partner um you know the amount of the amount of goods that flow back and forth between the u.s and canada is insane and and the economies are so intermingled when you go north there's literally cities that sit on the border between canada and the united states and you know products that move back and forth every day and it's it's gonna get i believe it's gonna get worked out it's just how much how much pain are we
Speaker 3gonna go through to get them well yeah and this is why it matters i mean potash canada ships us about 12 million tons a year basically all of it from saskatchewan saskatchewan that's the k and your npk it's exempt right now on the u.s side the question is whether canada puts it in on their september 8th list as a weapon canada ships us about 12 million tons a year basically all of it from saskatchewan that's the k and your npk it's exempt right now on the u.s side the question is whether canada puts it in on their september 8th list as a weapon um pork canada is one of the biggest pork buyers if they put u.s pork on their retaliation list that's you know your barns our barns uh whiskey it's on the u.s list what geez they kind of scared me there whiskey it's on the u.s list that hit this morning it'll be on canada's that's your you know that's our that's our whiskey minute tie-in um lumber 98 forestry products on the u.s list canada supplies about a quarter of u.s framing lumber home builders say tariffs have already added ten thousand dollars to a new house every carpenter and every young couple trying to build a small town build in a small town pays that um so those are just some of the goods that really why why this matters so much i think
Speaker 4that's probably one of the biggest things is the lumber because canada definitely when it comes to plywood and um osb which you know every house in the united states or every house that gets built you put in a ton of osb and plywood in it and like glue lamb trusses and all that and so i mean that's a big it's a big deal and it's one of those things it's a perfect storm it's a big deal when prices go up but when prices are going up on everything because you're at your it's cost you more to fuel your car cost you more to shop the grocery store and then building prices are going up i mean the american consumer is the one that's just getting hammered
Speaker 3i don't know where it is yeah i mean this is the fourth or fifth round of on again off again you know thinking that we're going to get this deal done and then there's some big last minute thing that happens and the deal falls apart but um trump keeps saying it's for the farmers and the actual cost lands on the farmers fertilizer risk pork retaliation lumber i mean it's we gotta something's got to get resolved there and hopefully it happens sooner rather than later um a few quick hits jbs closed uh closed the 2000 head a day in pennsylvania beef plant in june then announce it announced it'll convert into a value-added processing facility and keep about 400 jobs so uh jbs closing plants too but hey at least there's some they're not closing them all the way they're trying to find a way to keep some i think they're trying to find a way to not completely lose all the plants that are out there and keep jobs in rural america as best they can but you know they it's i would
Speaker 4wouldn't rely on the i wouldn't rely on the brazilians uh let's not forget that jbs is owned by uh that is a brazilian company and they're my example of if you're going to um if you're going to bribe politicians do it the way jbs did because back in their home country brazil they didn't try to bribe just one or two politicians they bribed everybody at one point they literally were paying congressmen i don't know what their structure of legislature and basically they were paying everybody yeah i think they're they're low-key the mafia oh no they are i would they are 100
Speaker 3i would not be surprised if they have done some crazy stuff so yeah get to where they are today
Speaker 4um but yeah those guys are something else um so here's something positive for everybody that loves hunting uh the iowa dnr gave its roadside count uh they wrapped it up august 15th last year it hit a 20-year high and i can speak firsthand you know it's been man the the pheasant uh uh population population in iowa has declined for years and we know we've noticed that every year when you harvest when you come down to the end of end of a field down by the timber down by the creek you know it used to be that you'd always every round you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple pheasants flying around and you'd have a couple out of there and i mean there were years you didn't have any but it it's at a 20-year high and they think that it's staying and this year is going to be good so uh yeah you better get your dog in shape it's going to be good for guys that like to go pheasant hunting and that's positive
Speaker 3missouri non-resident buck tags cut from two to one non-resident deer hunters are up nearly 50 in 10 years and residents are complaining about land access that's something shout out to the pheasant network i think there's a ton of people that i think this is just this is just a point about just the way we where we're at with just culture and the digital age everything is so accessible now like every hobby every industry every every job opportunity is all accessible to anybody and so you have so many people that get interested in hunting is one of those categories you have got so many people interested in hunting now because of just the access to information and and the lifestyle and what gets portrayed you know there's just so many public figures and people that have shown the realities of hunting and and there's more and more young men
Speaker 4men in general but young men that they just want to get out they want something out a way where
Speaker 3they can disconnect and hunting has become i think it's a net positive 100 it's definitely a net positive and honestly hunting brings a lot of people to rural america i mean there's people that straight up make the decision to live where they live because they want to hunt and fish yeah and that's happening in rural america that's where you're going to do it so the only downside i'll
Speaker 4give you to that is if you're a farmer uh it used to be that if a if a farm sold and there was 20 acres of timber on it that 20 acres of timber brought maybe a fifth of what the land does and there's examples now on marginal farm ground that has timber on it the timber ground will bring more money than the marginal farm ground very true because guys are looking for places to live and they're looking for places to live and they're looking for places to live to buy literally for no reason other than to be able to go hunting last few ones um rural ambulance
Speaker 3rapid city fire told pennington county south dakota it will stop running ems in rural areas after december 31st unless the county pays about eight hundred thousand dollars um 200 2655 rule calls last year under south dakota law ems is not a not an essential service let that sit yeah just another point back to rural health care rural hospitals
Speaker 4uh i don't know that's no easy answers for that because that's probably a county that doesn't have eight hundred thousand dollars to pay that bill yep so another one farm bankruptcy
Speaker 3bankruptcies a new nas nasda tracker counting chapter 11 on top of chapter 12 iowa is the most chapter 11 chapter 11 ag filings for any state at 26 chapter 11 means bigger operations not just small family farms total farm debt headed to a record of 200 or 624.7 billion dollars national debt passed 40 trillion this week's this week month ahead months ahead of forecasts this is important we're not coming back from this i don't think it seems like the so this is
Speaker 4this is the point that i was talking about when we were up there at the top about politicians and programs and you know money for this and money for that and what politicians do well every politician that i have seen run for national office republican democrat independence house senate president for my entire adult life have pledged to cut the united states deficit and get our books in order yet we have hit 40 trillion dollars in debt so what does that tell you it tells you that none of them none of them on either side on either side are ever going to get their shit together the problem is this is how this is what will eventually start a world war because there is not enough money in the world to pay the world's debt in other words the amount of debt that every country in the world has accrued from running deficits is greater than all the money there is to pay for that debt and somebody is going to get left holding a bag and they ain't going to be happy about it and these people we so we were at the state fair and we sat down and and quite a few people that we talked to were politicians and we only had 15 minutes to talk to any of them and so this this isn't one of the items that we brought up but we brought up and i didn't bring it i wouldn't have brought it up anyway because they all would have given the standard answer that we need to get our house in order and that that's one of their priorities and they're going to do it however they're not going to do it because you know why we have already surpassed the tipping point in this country where there are more people that pay no taxes than people who pay taxes so you have a group of people that are getting more from government they're paying for the services of government they will never vote to have their entitlements cut so they're never going to vote for anybody that is going to say hey you're going to have start paying for some of this whether it be medic like one of the hot bus button issues and we just we referenced it here is the lack of rural hospitals and a big ding on the current administration is they cut medicare they cut reimbursements to hospitals what is coming what is coming for each and every single one of you out there if you live long enough and i honestly not sure whether i will successfully make my way to uh heaven before this happens but i kind of hope i do you have no idea how few services you're going to have at some point in the future and i don't know when that is there won't be any social security there probably is not going to be medicare there's probably not going to be medicaid there is not enough money to pay the ious that are piled up in the shoebox of the united states government for all the shit that we thought we needed to have as a social program or defense or whatever and it's it's like it's gonna come the bill is gonna come due and we're gonna have to wait and see what happens and we're gonna and when it does the amount of pain that people are going to go through you're never it's you're gonna look back there's you know uh people have like a little sign in their in their house that says these are the good old days these are the good old days you might bitch about you know whatever's wrong in your life today enjoy it because what's coming i don't know when it's coming i don't i don't know how long we can go like this but to to say it's never gonna happen no it's gonna happen and when it does you ain't gonna you ain't gonna have shit for free and so the idea of living on a little acreage and raising a garden and having a few head of beef and taking care of yourself i think that's a real good plan because i think we're all gonna have to take care of each other because nobody from the government's coming uh mel robbins she didn't mean it this way but when she says nobody's coming to save you nobody's coming to save you it's enough to drive a man to drinking it is but before we do that i want to go into
Speaker 3sawyer spotlight i got a little bit of spotlight i want to shine bring us bring us up raise us up i i think you're very right dad but at the same time like hey i think uh i think i'm already at this point i think a lot of people in my generation are the government is not coming to save you i've been there for a long time covid was the last straw for me when it came to government assistance and saying that they have our best interests in mind that was the example that showed me that they that was the way clearly do not give a i'm not gonna say it they don't care they they don't have our best interests in mind uh so yeah it is all on us to make change if we are going to make change in our communities in our neighborhood in our household this episode is brought to you by
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Speaker 3and availability varies 18 plus it is going to be on our shoulders and the sooner you realize that and accept that responsibility and step up to the plate the way better off you're going to be down the line sore spotlight first thing i want to say is favorite thing that i consumed this month it's my first tomahawk at 801 801 chop house in des moines iowa i'm so glad 801 stayed in business in des moines i know they filed for bankruptcy i think reorganization they have a few across the country but man that thing was good i don't care 801 chop house that steakhouse is fire it is not the cheapest place to go in the world but they had like a freaking i don't even know what 28 ounce it or no it was like a 36 ounce tomahawk but so much of it was part of the bone and i think like 20 plus ounces was the steak i ate the whole damn thing i put i think i put bone marrow butter on it and oh it was honestly and i don't say this because like you could probably make the best steak at your house but that was the best steak i've ever had in my life we have a picture of it we have photographic evidence so good i think it was dry age more i think it was a 28 day dry aged tomahawk but holy smokes if we can put that picture in the episode the video version will do yeah if i could find it i'll put it in there but man it was good gotta eat a tomahawk i was supporting the the beef farmers out there i was supporting the the cattle guys out there i was trying my best i always try my best and my young man thought of the week and this is the last thing i'm gonna touch on in the sawyer spotlight is so my best friend is getting married shout out to chip my best friend's getting married this week and it had me reflecting and you know when you're talking about loving your neighbor and it's on us and it's on our on your shoulders to to help each other out you cannot put a price on good, good friends and, and best friends and relationships that, you know, you're going to have for the rest of your life. And so I really just want to just reiterate a point that we've said on the show before, but if you have good people in your life, you have good friends in your life, keep them and, and, and, and honor those relationships, show up when it matters, show up when it counts, because it, it pays to have good people in your life. It's, it's a good thing to have good people in your life. And Chip is one of those guys that has stood in my corner. I've been best friends with him for, since I was a kid, we were playing football at Lincoln elementary school together back in way, way, way back. And we've stayed friends since then. And he's been through, he's been with me through some of the hardest times in my life and vice versa. And so I just can't, I just can't reiterate enough that if you got good people in your life, keep them and, and nurture them. Those relationships and don't let them go to the wayside and things are going to change after he gets married next week, as far as he's probably going to start having kids and, you know, he's got a full-time job, but, um, I think we're going to try our very best to stay in contact and find time to always make time for each other and show up when it matters because you don't want to lose
Speaker 4that. Yeah. Because, uh, you know what I saw this, I don't know, quite a while ago and it stuck with me. Uh, I have just a handful of my friends from my childhood. I have a couple of guys that we've started doing, uh, uh, trips every year. And I cherish those because, uh, one thing you can't do is you can't make new old friends. Nope. And so the ones that you have that are like that
Speaker 3cherish those. Yeah. And I'm, I'm trying my best to soak it in and cherish it. And I, and you know, I just say some of the best times, some of the best moments of my life, as far as having the most fun come came from hanging out with chip, you know, and that's just, you can't put a price on, put a price on that. You can't put a price on that relationship. And it's, we say it all the time, success going after what you want, building, building your life. None of it is worth it. If you lose the people that matter most to you. So care for the people that matter most to you, whether it's family, friends, or friends that you consider family, take care of them and show up when it matters and nurture that.
Speaker 4Uh, I will say congratulations to chip. He is a family friend. He spent a lot of time at our house and his kid growing up. I can't necessarily say that the two of you made each other any smarter, but it was very entertaining to watch you. Uh, I've said this before Sawyer and his friends. Uh, I used to say all of them together are dumber than any of them by themselves, but Hey, they made it through. So they are okay. And I also will say this from a very young age, I told Sawyer and I told my wife that kid is going to be a salesman and he is a salesman, uh, and a damn good one, I think. And he's only going to get better, but sometimes there's a personality there. And I know, cause I was one and I, I could have told you when that kid was 12 years old that yeah, he's probably going to be a salesman. So anyway, it's got kudos to chip, uh, the whiskey minute today. I have to talk about a new friend. Uh, so at some point we're going to, uh, talk more about, uh, something we've been working on on the farm for a long time, but in the process of all of that, uh, I met a guy and he's actually from Indiana. We talked to him at the Keystone, uh, co-op deal out there and he showed up, met us at the hotel. We had supper with him. Uh, I'm not going to, I'm not going to share his name. He might not, he might not want that all that publicity, uh, but dang good guy. And, uh, we're kind of in this together and he, we have a similar, we have a similar path and we really enjoy talking to each other. And we've kind of gotten a rhythm. We talk about every week, but I did not see this coming. He showed up at the hotel and he brought this bag and in the bag was this bottle. And this is a bottle of William LaRue Weller. And if you know, you know, it's very, and I'd say in Iowa, you just don't ever see this. Uh, I don't know where he got it. I don't know how he got it. And I honestly don't want to know, uh, because, uh, it's there. It's kind of hard to find and maybe with, you know, the way the whiskey business going, maybe it'll get easier to find, but anyway, uh, we're going to open it up and try it. Uh, there isn't any age statement on it. Uh, but it's a limited edition bottle, right? Yeah. They release these every year. It's part of the Buffalo trace, uh, antique collection. I think they call it. And, uh, we're going to have a little poor, your glasses, a little dirty. Yes. I think it's just a little hazy is all. Okay. This, Hey, you know what? Here's something I was going to tell all of you. I thought you just had dandruff. There's probably just your dandruff in there. Yeah, probably. Yeah. Uh, you know, when all that stuff was going down with lettuce about salmonella and bacteria, do you know something that has never given me explosive diarrhea? Whiskey, uh, purifies your system. Just the taco bell after you had it. Well, that wasn't from the whiskey though. Yeah, I know. Whiskey will purify your system.
Speaker 3Is that enough for you? Well, that's not, I don't want the dirty one. Okay. All right. Well,
Speaker 4I don't want to catch whatever you got. Yeah. This is the good one because, uh, it was on this one. Mine was on top. So it smells good. Yeah. You know what kind of notes it's supposed
Speaker 3to have? You know what flavor, like, is it supposed to have a, like a, like a sweet finish
Speaker 4or it smells expensive. It does smell expensive. All right.
Speaker 3Oh, that's good. Yeah. Holy shit. That is good. Uh, I'd say cherry. Yeah. Cherry for sure. And like not a burn. I mean, it's got a slow burn on the back end, but does not have a punch in your mouth burn right when you drink it. But Holy shit. The flavor on that is very good. And it's what I like.
Speaker 4I like a sweeter. I like a sweeter bourbon. You don't taste good. You don't taste the oak.
Speaker 3Um, that is good. That, that is definitely one of, that might be the best bottle we've ever tried on the show. Currently. I, that was to me is like a nine, five, like that's in the nines for me. Okay. I could drink that. I think it is. I could drink that straight. No problem.
Speaker 4Well, yeah. And that's the idea. That's the idea of it. So, uh, yeah, I would, I would recommend if
Speaker 3you can get your hands on that bottle, get your hands on it. And I would probably only drink it, uh, when you're celebrating something special because that is worth, worth the money and worth the experience. And that would be something to share with friends that matter to you.
Speaker 4Well, there you go. Uh, you matter to me. It was a great episode. I think people got some value.
Speaker 3Yeah. And we, again, we always throw this disclaimer out there, guys. We do not claim to be experts. This is just our humble opinion of things. We appreciate the hell out of you guys. We thank you for where this show has gotten or where the show has taken us to being able to go on the road and meet you guys in person and do speaking and build this show up to the point that it is. It's just, we could not do it without you. We are, we would not be here without you. And we are very, very grateful and we love you guys. And we appreciate you. And, uh, we'll see you back here next week for another episode. That really.
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Podcast Summary

Key Points:

  1. The hosts discuss the "beef outrage," focusing on Trump's proposal to import 300,000 metric tons of foreign ground beef tariff-free, which they argue won't lower consumer prices and hurts ranchers' incentives to expand the herd.
  2. The U.S. cattle herd is at a 75-year low, leading packers like Tyson to close or sell plants due to losses (up to $650 million in 2025), reducing rancher leverage and increasing reliance on imports.
  3. The Mexican border reopening for cattle (after a screw worm outbreak) adds supply but doesn't solve the structural problem of consolidation among major packers, which control the market.
  4. The U.S.-Canada trade dispute escalated with 50% tariffs on $20 billion of Canadian goods, risking impacts on potash, pork, and lumber, raising costs for farmers and consumers.
  5. Additional topics include rural ambulance funding crises, rising farm bankruptcies (Iowa leading in Chapter 11), record farm debt ($624.7 billion), and the national debt hitting $40 trillion, highlighting systemic political short-termism.
  6. The hosts express optimism about growing consumer interest in local, farm-fresh beef and analog experiences (e.g., live events, concerts) as a counter to AI and digital isolation.
  7. They advocate for more independent packing capacity and local food systems to reduce reliance on government and corporate control, emphasizing that ranchers need certainty and capital, not subsidies.

Summary:

In this episode of "Barn Talk," the hosts dive into the current state of the beef industry, framing it as a structural crisis. They start with a market update, noting strong grain and livestock prices but highlighting a key issue: Trump's proposal to import 300,000 metric tons of foreign ground beef tariff-free. They argue this won't lower grocery prices, as seen in a similar October 2025 experiment, and instead signals ranchers not to expand, given the herd is at a 75-year low.

This leads to packers like Tyson closing plants due to losses, reducing competition and rancher leverage. The hosts also discuss the reopening of the Mexican border for cattle, which helps feedlots but doesn't fix the underlying consolidation problem. They criticize politicians for short-term fixes, noting the national debt hit $40 trillion and farm debt is at a record.

-Canada trade dispute adds further strain, risking higher costs for potash, pork, and lumber. Despite these challenges, they find optimism in a cultural shift toward local, farm-fresh food and analog experiences, which they believe can counteract corporate and government control. They conclude by advocating for more independent packing capacity and local options to ensure ranchers control their own destiny, emphasizing that the problem is structural, not individual, and requires long-term solutions beyond election cycles.

FAQs

Barn Talk is a podcast focused on agriculture, rural America, markets, and hot topics affecting farmers and ranchers. The hosts share their perspectives and aim to stay authentic and transparent.

Listeners can support Barn Talk by sharing episodes with others, leaving reviews on Spotify or Apple, and subscribing to the free weekly newsletter at joinbarntalk.com. Reaching 10,000 newsletter subscribers will trigger a live event at the farm.

The main topic was the 'beef outrage,' covering the beef cycle, including Trump's proposal to import 300,000 tons of foreign ground beef, plant closures by Tyson, the impact of the Mexican border reopening, and structural problems in the cattle industry.

Trump proposed importing 300,000 metric tons of foreign ground beef tariff-free for 90% of the country, with a commitment to sell it 25% below market, to lower grocery store prices. However, critics argue it won't help consumers and could hurt ranchers by discouraging herd expansion.

Packers like Tyson are closing or selling plants because the cattle herd is at a 75-year low, leaving insufficient cattle to keep plants running at full capacity. This results in packers losing money, leading to plant closures and shift cuts to improve efficiency.

The Douglas, Arizona port reopened to Mexican cattle on August 24th after a 13-month closure due to screwworm. This allows over a million head of feeder cattle per year to enter the U.S., helping fill feedlots and packing plants, though concerns about screwworm remain.

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