08/27/2026
It is the cow/calf sector of the live cattle industry that must initiate herd expansion, after all, that’s where the breeding cows are that produce the annual calf crop. Cow/calf operations typically have two main revenue sources: sale of calves and sale of cull cows and bulls. Their major source of revenue is from the sale of calves, but industry literature indicates that sales of cull beef cows and bulls typically represent about 15% of the cow/calf operation’s total annual revenues.
Current profitability and expected future profitability are prerequisites to making the investment for herd expansion. So, let’s look at how the president’s proposal to import an additional 661M pounds of “product for ground beef” with no over-quota tariff might impact a cow/calf producer’s profitability.
What the president means by “product for ground beef” is 90% lean beef trim, or 90s. This is the same type of product that is produced by domestic cull cows and bulls. A typical domestic cull cow will produce roughly 400 pounds of this 90s product. Now, the additional 661M pounds of imported 90s over 90 days will be the live cattle equivalent of about 1.6M domestic cull cows and bulls. This imported product is expected to arrive frozen and be stored frozen to be used over time.
In 2025, the U.S. slaughtered a total of about 2.8M cull beef cows and bulls. Importing the 90s live cattle equivalent of about 1.6M more cull beef cows and bulls will increase the virtual supply of U.S. beef cull cows and bulls by about 57%.
Now a question for cow/calf producers: What do you think will happen to the 15% of your operation’s revenues earned from the sale of cull beef cows and bulls if the virtual supply of U.S. beef cull cows and bulls increases by 57%? Is this an incentive to begin investing to expand your herds, or, do you think it will further delay meaningful expansion of the U.S. cow herd?
Click below to read the full news commentary.
For Immediate Release: August 26, 2026 Contact: R-CALF USA CEO Bill Bullard Phone: 406-252-2516; [email protected] Please find below R-CALF USA’s weekly opinion/commentary that discusses the anomalous changes that have […]