Celebrating the beef industry
It’s a good time to be involved in the cattle business
By Dale Parker, Tennessee Cattlemen’s Association Executive Vice President
July is the perfect month to celebrate the beef industry. This time of year, we gather around the grill with family and friends to enjoy burgers, hot dogs, and steaks on the Fourth of July. Beef takes center stage at many of these gatherings. As we enjoy these meals, I hope we pause to consider the farmers who make them possible.
Here in Tennessee, we’re fortunate to have a thriving agricultural community, and the beef industry plays an important part. We’re proud that producers continue to raise quality beef across the state.
Tennessee is primarily a cow-calf state, but we also have many stocker and seedstock producers. Our farmers represent every segment of the cattle industry, and it takes every segment working together to make the industry succeed.
I’m grateful to be part of it at a time when things are going well, and I hope we continue to see strong prices in the future.
We’re seeing some of the best cattle prices in recent memory, but producers are also dealing with serious challenges.
Consumer demand for beef is up, and so are the prices shoppers are paying. Grocery prices are higher across the board, not just for beef. Despite that, demand has remained strong.
While I’m hopeful these strong returns will continue, we also must remain cautious. These are unprecedented times, and we never want to assume today’s market conditions will last forever.
High prices have contributed to reduced herd numbers as farmers take advantage of favorable market conditions. There’s a lot of discussion about rebuilding the cattle herd. While that would benefit the industry long term, cow-calf producers are currently experiencing some of the strongest prices we’ve ever seen.
Looking ahead, I believe beef supplies will remain tight. Even as markets shift, I expect prices to stay relatively steady because of high land and input costs. Unless there is an unforeseen federal change, I believe this market will remain strong.
Personally, I’m retaining a few heifers, but not nearly enough to rebuild my herd to where it needs to be. It will take time to rebuild. Herd numbers are the lowest they’ve been in decades, so the next few years will be important to watch.
There has been discussion about trade policies that may not fully benefit producers here in Tennessee and across the U.S. At the same time, foreign markets continue to show strong demand for U.S. beef. I’m hopeful that demand will remain strong both domestically and internationally, and that export markets will provide important growth opportunities.
Even if more beef is imported, I do not expect a flood of product into the U.S. market. I’m hopeful we can maintain the margins we have right now.
Another important discussion is about processing facilities in Tennessee. We’re fortunate to have processors scattered across the state, and as more facilities come online, the farm-to-table model continues to grow. Consumers increasingly want to know where their food comes from, and local processing helps meet that demand by allowing them to buy a live animal, have it processed nearby, and know exactly where the product originated. As additional facilities open, Tennessee will be even better positioned to process more animals locally.
One of the biggest issues we face is the cost of inputs and the challenge of staying profitable. Fuel prices remain a concern, and nearly everything producers need costs more than it did before. So, while cattle prices are up, so are production costs.
Land prices in Tennessee are astronomical and continue to rise. Add in high fuel and other input costs, and even a small market disruption can quickly affect producers.
These pressures require producers to work smarter in everything they do. I’m optimistic about the future of the industry, but also cautious, because agriculture is cyclical and today’s highs will not last forever.
Tennessee producers enjoy real advantages because of our location and climate. We typically have abundant grass, along with good access to water and shade.
We can talk about genetics and other improvements, but we also must focus on the basics. Cows need grass, clean water, and shade in the summer. Tennessee offers those resources, which help us produce cattle in ways some other regions simply cannot. With proper care, our environment supports productive, efficient cattle operations.
I’ve had the chance to travel in recent years, and every time I return home, I’m reminded how fortunate we are to have such beautiful farmland in Tennessee. More people are recognizing that and want to move here. I hope we can preserve more of our farmland. Development brings opportunity, but it also creates tension when agricultural land is lost. I wish there were better ways to protect farmland that should remain in production.
Right now, it would be a difficult business decision to buy a 100-acre farm, add 50 brood cows, and then cover the cost of equipment, housing, and everything else required to get started.
As our producer population ages, we need to find ways to allow young farmers to get involved in the industry. That could mean better estate planning or creating opportunities for the next generation to take over farmland and keep it in agricultural production. At the same time, many longtime farmers have their life savings tied up in their land.
That creates a difficult balance. You can’t blame farmers for wanting to get the most from their land, but many also hope it stays in agriculture. Too often, the numbers simply do not support that outcome.
Our farmers receive tremendous support from state lawmakers. I think of the Tennessee Agricultural Enhancement Program (TAEP) and what it has meant for farmers across the state. It is an excellent program, and I have personally benefited from it. It helped me buy bred heifers, improve hay storage, and strengthen my herd’s genetics. In the cow-calf business, getting a live calf on the ground is the most important thing.
TAEP has also helped many of us buy heifers, select calving-ease bulls, and use crossbreeding to improve weaning weights. All of that has helped producers deliver a better product, no matter which segment of the industry they serve. It has been a major boost to Tennessee’s beef industry.
I’m grateful for the opportunity The Cooperator has given me to share my thoughts on the state of the cattle business in Tennessee.
When I was featured in The Cooperator earlier this year, many people reached out to say they had read the article. I’m proud to be a member of White Warren Farmers and Rutherford Farmers Co-ops. I’m thankful for our Co-ops and all they do to support TCA, our efforts, and the TCA magazine. We value that relationship.
I also want to encourage beef producers to join and become involved in TCA and their county association. TCA works to be the voice of the producer, representing farmers on issues that affect our sustainability and success. Your membership helps us share farmers’ perspectives with state legislators and national leaders. We could not do this work without our members, and we are grateful for their support.
It’s easy to join TCA. Producers can sign up online at TNCattle.org, call (615) 896-2333, or enroll through their county cattlemen’s association. We are glad to help and appreciate all our members.
