Guest Article - Current Challenges of Raising Beef

I have been talking and listening to a lot of local business owners, farmers, and ranchers, and today I am highlighting one of them, Mr. Brad Hoggan. The words are his own, with no editing on my part.

My father raised cattle for as long as I can remember. When I was a young man we had a family ranch in Snowville that we had to close due to issues with water rights. The grass and the cows needed more water than we were able to source. Since that time I’ve been all over the world for business, but always had my cows. Finally, 15 years ago I bought some land in Box Elder county and was able to take my stock back. My desire to grow the herd and produce the best Black Angus available led me to grow that herd to 450 pairs.

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I’ve worked long hours. My wife and I have taken risks. We’ve battled droughts, unpredictable markets, and rising costs. I’ve invested my golden years into ranching for the love of it.

I knew there were risks, but mostly they were drought and disease. Acts of God as the insurance company calls them. But over the past two years the risks seem to be completely man made. I’m facing an economy that makes it more expensive to produce good stock, makes it harder to sell them, and nearly impossible to plan for the future.

I understand that beef is a commodity. I don’t get to set my price, the market does. The wholesalers tell me how much my beef is worth. China was once a major destination for American beef and other agricultural commodities. But when those trade relationships deteriorated, buyers began looking elsewhere, mostly South America.

Here’s the problem: Once you lose a customer, you don’t automatically get that customer back. Those relationships take years to build. And while politicians in Washington talk about winning trade wars, American farmers are the ones who have to live with the consequences.

My costs are out of control. The recent;y announced access to off road diesel will not do me any good, as we’re already running red diesel in our equipment. I am purchasing specialty tools that are over twice the price they were two years ago. I don’t know what is causing the jump in price; tariffs on raw materials? Corporate greed? A little of both?

Another example? I needed a replacement bolt for a Kerby bale feeder, from my John Deer dealer that costs $72. With a little time, I bought the same size threaded bolt and added a hole for a cotter pin for $4 and 20 minutes. I’m not sure if John Deere is 100% American made anymore, but something is causing what should be at most a $15 part to all of a sudden be almost 5 times that off the shelf.

That’s not just inflation. That’s a system where farmers are increasingly trapped by the cost of keeping their own equipment running. And it doesn’t stop with parts.

Fertilizer costs have climbed. Diesel costs have climbed. Machinery, maintenance, transportation — everything it takes to run an agricultural operation has become more expensive.

Meanwhile, drought has devastated ranching and farming communities, reducing available feed and water and driving operating costs even higher. Thankfully I have invested in solutions to water my pastures, but at great cost.

And here’s what makes this especially difficult. We don’t get to set their own prices. As a commodity market, I can’t simply raise the price of their cattle or grain because their fuel, fertilizer, or equipment costs went up. They pay what suppliers charge, and they receive what the market offers. I’m running a business where nearly every expense is increasing, but have very little control over what you earn. How am I supposed to build a sustainable future under those conditions?

And today, even when cattle prices rise, much of that increase reflects a shrinking national herd and a shortage of available cattle. Higher prices caused by fewer cattle are not necessarily a sign of a healthy industry. There is a concern that rebuilding America’s cattle supply has become extraordinarily difficult. I’ve talked to plenty of other ranchers in my area who are debating about what is next. Do they keep their heifers, feed them, care for them, and invest in their development for the next year or longer, hoping that investment eventually pays off? Or do you sell those animals today, when you know what they’re worth and you need the cash to keep operating? Or do I sell my land off to someone with a lot of money who is influenced by life in the west,who might run it as a hobby ranch for a few years, using the land and cattle to write off income.

For too many ranchers, selling now is the only financially responsible choice. And that means fewer replacement animals, a slower recovery, and a continued threat to the long-term strength of American ranching.

Then there’s labor. I hear politicians talk constantly about immigration and agricultural labor. But talk to farmers, and they’ll tell you this problem goes beyond immigration. I’m offering at least $20 an hour that still can’t find reliable people willing to show up and do the work. Agriculture needs a dependable workforce. It needs training opportunities, practical labor solutions, and a serious conversation about how we make agricultural careers viable for the next generation.

And finally, let’s talk about government assistance. Because this is where Washington’s disconnect from rural America becomes painfully obvious. A farmer runs into financial trouble. Maybe it’s because of the drought. Maybe it’s a market collapse. Maybe it’s an unexpected operating expense. They apply for an agricultural assistance program.

And then they wait.

Sometimes they’re told to apply for assistance for the following year. Then they wait for approval. Then they wait again for the actual funding. By the time that money arrives, the financial emergency may be two years old and the ranch is gone. I’ve seen it happen.

A farmer can’t tell the bank to wait two years. They can’t tell their equipment supplier to wait. They can’t tell their employees, their fuel distributor, or their mortgage company that Washington is still processing the paperwork. Government programs are supposed to provide a safety net. But a safety net that shows up after you’ve already hit the ground isn’t doing its job.

Ranching is a way of life. It’s a family business passed down through generations. It’s small towns, local jobs, equipment dealers, feed stores, and entire rural communities whose futures depend on the survival of American agriculture. And when a family farm or ranch closes, we lose more than a business. We lose generations of knowledge, investment, and independence that may never come back. I believe the American farmer deserves more than praise at election time. They deserve policies that actually work. They deserve fair markets. They deserve an opportunity to earn an honest living. And they deserve a government that understands the difference between talking about supporting agriculture and actually doing something about it.

Sincerely

Brad Hoggan

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