With consumers paying record prices for beef, Farm Action is urging policymakers to focus on rebuilding the U.S. cattle herd and restoring competition throughout the beef supply chain rather than relying on increased imports to lower prices.
In a new white paper, the organization contends that today’s record beef prices are the result of decades of industry consolidation, declining domestic cattle numbers and weakened competition, not simply a shortage of supply. The report argues that policies designed to increase imports may offer little relief at the meat counter while discouraging the herd expansion needed to improve long-term supplies.
Farm Action is a nonprofit organization that advocates for policy reforms to promote fair competition and transparency throughout the agricultural and food system. The group frequently focuses on market concentration, antitrust enforcement and policies affecting independent farmers and ranchers.
“The recommendations show there is a better path: rebuild the cattle herd, restore competition, and lower prices by strengthening America’s cattle sector rather than undermining it,” said Sarah Carden, Farm Action research and policy director.
According to the organization, Americans are paying more than ever for beef. Farm Action noted ground beef prices are roughly 70% higher than six years ago, while steak prices have nearly doubled since 2020. The organization also pointed to concerns surrounding the spread of New World screwworm as another factor creating uncertainty for cattle supplies.
Consolidation in the industry
The white paper argues that increasing beef imports would do little to reduce retail prices due to concentration in the beef processing sector.
Farm Action notes that the four largest beef packers controlled about 36% of the market during the 1970s. Today, the organization estimates four companies control roughly 85% of U.S. beef processing, leaving ranchers with fewer marketing options and less negotiating leverage.
The white paper states that cattle producers once received approximately 60-65% of the retail beef dollar, but that share declined to roughly 35-40% by 2020, even as beef prices continued to climb. According to the report, stronger cattle prices have improved returns for many producers, but those gains reflect historically tight cattle supplies rather than a healthier cattle industry. Farm Action contends that increasing beef imports could put downward pressure on the prices ranchers receive for their cattle without delivering meaningful savings to shoppers. The organization argues that because a small number of processors and retailers dominate the market, much of the financial benefit from lower-cost imports would likely remain within the supply chain rather than be passed along at the grocery store.
Policy recommendations
Farm Action outlines several policy recommendations intended to increase domestic production while improving long-term affordability for consumers.
Among its recommendations is restoring mandatory country-of-origin labeling for beef, arguing that clearer labeling would allow consumers to distinguish between imported and U.S.-raised beef while strengthening market incentives for domestic production.
To address processing capacity, the report recommends expanding regional and independent meat processing facilities through financing, technical assistance and procurement support. Farm Action urges the federal government to prioritize domestically raised beef in purchasing programs while creating more opportunities for regional processors, cooperatives and independent suppliers to compete for government contracts.
The organization also proposes creating a temporary federal tax credit of approximately $500 for retained breeding heifers to encourage herd expansion. Farm Action additionally recommends establishing a temporary “Build Your Pasture” program that would encourage producers to convert marginal cropland back to grazing land through multi-year payments and assistance for fencing, water infrastructure and pasture establishment.
The group urges policymakers to protect working grazing lands by ensuring federal conservation programs do not unintentionally reduce livestock production. The report argues maintaining a strong grazing base is essential for rebuilding the national herd while also improving drought resilience, soil health and the long-term viability of rural communities.
Competition reforms emphasized
Beyond its recommendations, Farm Action said herd rebuilding alone will not solve structural problems within the cattle industry unless accompanied by stronger competition policies.
Farm Action recommends increased antitrust enforcement, stronger implementation of the Packers and Stockyards Act, greater market transparency and expanded reporting of negotiated cattle transactions and packer procurement practices.
The organization also calls for reforms to the Beef Checkoff program, arguing mandatory producer assessments should better align with the interests of domestic cattle producers. Additional proposals include investigating pricing and margin expansion throughout the beef supply chain, creating a federal price gouging law for periods of severe market disruption and considering use of the Defense Production Act during major supply chain emergencies.
Farm Action concludes that rebuilding the national herd, restoring competition and strengthening domestic production capacity offer the most durable path toward a more resilient cattle industry and more affordable beef for American families. — Charles Wallace, WLJ contributing editor
