Local farmers concerned about impacts of increased beef imports as President Trump cuts tariffs

PERKINSTON, Miss. (WXXV) — The Trump administration has announced its plans to suspend tariffs on ground beef and allow up to 300,000 tons of beef to be imported tariff free.

With this meat expected to be sold for 25% less than the current market prices, local producers like Stonnington Farms in Perkinston, Miss. could see negative impacts on their sales.

“Ranchers are nervous. I’m nervous. The cow, calf ranchers are nervous. I don’t know if there is a silver bullet for this,” said Michael Stonnington, Co-Owner of Stonnington Farms.

For 90 days, ground beef will be imported with zero tariffs. This is in efforts to lower the price of ground beef, which according to the Associated Press has risen nearly 57% in the last five years. The problem is that the U.S. cattle inventory is the smallest it’s been since the 1950’s, but the U.S. population has grown substantially in that time.

Calf prices have also nearly tripled in just the last few years, making it costly to grow herds, and resulting in those higher beef prices.

“[In] 2020 I paid about $940 on average for a steer — calf. This year, I paid roughly $2,700 for a calf. So, from $940 to $2,700. It is really hard to sustain this operation at those prices,” said Stonnington. “The way the beef prices will start coming down is if we build up our herds, but it’s very difficult to build up our herds at this price point. And somehow we gotta make that shift, and that’s part of the reasoning that President Trump has removed those tariffs, but it remains to be seen if that’s gonna work.”

Lower-priced imports could benefit consumers, but they may be detrimental to domestic farming. Low prices could drive away local customers, forcing farmers to lower their prices and potentially resulting in reduced investment. However, farmers are waiting to see what comes from the shift.

“Always, when you have a change in economic policy, somebody gets hurt, and there’s always unintended consequences. But, perhaps this pause will have an effect that will maybe help everybody. I don’t know, I’m just gonna have to wait and see,” he said.

Mississippi lawmakers are already pushing back on the proposal.

Senator Cindy Hyde-Smith said in a statement that Mississippi farmers should not be asked to absorb the cost of cheaper imports, and that she’s been to the White House to express her concerns with the move.

Lt. Gov. Delbert Hoseman says the administration’s focus should be on lowering the costs for ranchers, and choosing U.S. beef first, and that the current move is not a way to lower prices for Mississippi families.

For now, farmers are waiting to see if the temporary import plan brings customers lower prices without creating additional challenges to the domestic beef market, this will of course be determined over time, but WXXV will provide updates as more information is made available.