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Indiana beef producer questions whether Trump import plan will lower beef prices long term

Fischer stores all of his products on site and ships directly to his customers, which helps defray the higher costs to process each animal.
Devan Ridgway
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WFIU/WTIU News
Fischer stores all of his products on site and ships directly to his customers, which helps defray the higher costs to process each animal.

An Indiana beef producer says a Trump administration plan to increase beef imports temporarily could lower cattle prices, but questions how much of those savings will actually make it to the grocery store.

The administration is looking to import about 300,000 metric tons of additional beef as part of an effort to provide relief from high beef prices.

Joseph Fischer, sales manager for Jasper-based Fischer Farms, said he gets why consumers are frustrated.

"I think my initial reaction is that I understand consumers are tired of beef prices rising," Fischer said.

But he said the proposal also raises questions for domestic cattle producers.

Fischer said his understanding is that additional imports are expected to put downward pressure on cattle prices.

"I think that's maybe what some farmers are disappointed in, is that there might have been an opportunity to incentivize more domestic purchasing than maybe some imported beef," Fischer said.

Fischer Farms is somewhat insulated because it sells directly to customers rather than selling through the broader commodity market.

The proposal comes as the U.S. cattle industry continues to struggle with tight supplies.

Fischer said years of drought caused some producers to reduce their herds as feed became more expensive. Fewer cows led to fewer calves; at the same time, consumer demand for beef remained strong.

Rebuilding those herds isn't quick.

Producers must decide whether to sell a female calf while cattle prices are high or keep it for breeding, then wait years before seeing a financial return from its offspring.

"It's really hard for farmers to decide to play the long game when market prices are where they are," Fischer said.

Those supply constraints have helped drive cattle and retail beef prices higher.

Fischer said the additional imports may provide some short-term relief, but he's uncertain how much of the savings will reach shoppers.

"The question I guess a lot of other farmers are having is, you know, how much of that will be passed on to the end consumer in the grocery store," Fischer said.

He also said the debate highlights another concern for Fischer Farms: whether consumers know where their beef originates.

Fischer said, as imported beef can enter the broader U.S. beef supply, he would like clearer country-of-origin information so consumers can distinguish between imported and domestically raised products.

Fischer Farms sells directly to customers, and Fischer said he hopes the attention surrounding the import proposal encourages shoppers to ask more questions about where their food originates.

"It shouldn't be a question mark at the grocery store," Fischer said. "It should be more clear, you know, what you're actually purchasing."

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Clayton Baumgarth is a multimedia journalist for Indiana Public Media. He gathers stories from the rural areas surrounding Bloomington. Clayton was born and raised in central Missouri, and graduated college with a degree in Multimedia Production/Journalism from Drury University.

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