Do you like a good hamburger? If so, read on.
American cattle producers (ranchers) are disappearing.
According to the USDA, over a 5-year period, more than 90,000 cattle producers have gone out of business. Among the factors contributing to this are high land prices, equipment expenses, bad press by our own US government (“Don’t eat beef!”), and age. The average age of US cattle ranchers is 70 years old.
Raising cattle is a 24/7, 365 day a year job. When a corn grower is sitting by a fire in December, a cattle rancher is feeding cattle hay. In July when the corn grower is on vacation waiting on the crop to mature, a cattle rancher is baling hay. Like a rock and roll band, cattle ranching is a business of passion.
It doesn’t pencil out. You do it ‘cause you love it.
U.S. law has a tax on American ranchers and foreign beef importers called “Beef Checkoff.” This tax is used to promote beef – but it promotes foreign beef and American beef equally. This is insane.
American ranchers pay taxes on every head of cattle they sell. Importers pay too. For every 578 pounds of beef coming off a ship in New Orleans, or every head of live cattle from Mexico or Canada, importers pay taxes to the Cattlemen’s Beef Board (CBB). However, half of taxes paid by USA ranchers go to the state’s Cattlemen’s Associations; the remainder goes to CBB.
This means importers have more influence on what the federal Checkoff program supports because CBB does not share taxes paid by importers with state beef councils. Mexico, Canada, Brazil, Australia, and about 20 other foreign countries send the US their beef – which means CBB supports world beef, not USA beef exclusively.
Congress does not require foreign beef to show country of origin. “USDA inspected” does not mean “USA product.” I hope President Trump enjoys foreign beef on his Big Mac.
Mr. Trump needs to remove the equal support of importers from CBB.
But it’s not just a federal tax problem. When I sell cattle in Arkansas I pay 5 taxes.
•Federal income tax
•State income tax
•Personal property tax
•Beef Checkoff tax
•Arkansas bovine health tax
Arkansas is the only state with a bovine health tax. This tax began in the 1990s to prevent brucellosis. Arkansas has been certified brucellosis-free for 25 years but the tax remains. This tax has created a honey pot for the Arkansas’Livestock and Poultry department. FOIA requests have shown this tax is spent on new trucks, bottled water, and other expenditures having nothing to do with cattle health. My state senator tried to repeal the bovine health tax, but could not get support from the governor, the Arkansas Cattlemen’s Association, or the Arkansas Farm Bureau.
Also, Arkansas charges farmers and ranchers sales tax on purchases used in their business. I shop out of state for ranching essentials. The state of Oklahoma gives me a sales tax exemption card because I raise cattle. Good neighbor. If I need a tractor repaired, I take it to Missouri. No sales tax on farmers and ranchers for parts or labor in Tennessee, Texas, Missouri, Oklahoma, and Kansas.
Governor Sanders and our state representatives should support agriculture in Arkansas by repealing the bovine tax, and exempting Arkansas’ farmers and ranchers from sales tax on agricultural purchases.
At every level, government offers to help. Unfortunately, as we’ve seen again and again, government help doesn’t help.
Copyright 2025 Bill Yancey
Bill Yancey is a retired pilot (U.S. Navy and Federal Express); Captain Yancey grew up on a cattle ranch and currently has 400 acres in northwest Arkansas with 120 head of cattle.
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