Ranchers Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA)
R-CALF USA, the nation’s largest producer-only cattle trade association, issued the following statement after President Donald Trump indicated he may not renew the United States-Mexico-Canada Agreement (USMCA).
“Although the U.S. cattle industry is the largest segment of American agriculture and cattle and beef are among the leading agricultural imports from Mexico and Canada, the USMCA made no changes to cattle and beef trade. For independent U.S. cattle and sheep producers, the agreement represents a continuation of the North American Free Trade Agreement (NAFTA).
“Both NAFTA and the USMCA allow tariff-free trade in cattle, sheep, beef, lamb and mutton between the United States, Mexico and Canada. These policies have made imported livestock and beef more accessible and economically attractive to meatpackers, reducing incentives for U.S. farmers and ranchers to rebuild and expand the domestic cattle and sheep supply chains.
“In addition, the USMCA retained NAFTA’s rules of origin for beef, lamb and mutton, which designate the country in which the animal is slaughtered as the product’s country of origin. Combined with the absence of mandatory country-of-origin labeling for beef, these rules allow imported beef to be sold alongside domestic beef without distinction, limiting price transparency for consumers and reducing incentives to pass along savings from lower-cost imports.
“The United States continues to run a substantial quantity-based trade deficit in cattle and beef with Mexico and Canada. Each year, the U.S. imports more than three times the cattle and beef from those countries than it exports to them. This imbalance contributes to the decline of cattle operations, cattle herds, feedlots, and rural jobs and businesses.
“This persistent trade deficit has contributed to the ongoing contraction of the U.S. cattle industry and the erosion of its competitive infrastructure.
“Since NAFTA took effect in 1994, the number of U.S. beef cattle farms and ranches has fallen from 900,680 to 622,160, a decline of 31%.
“The U.S. mother-cow herd, a key measure of the industry’s productive capacity, began declining shortly after NAFTA’s implementation. By 2025, it had fallen to a historic low of approximately 27.9 million head, down about 22% from 1994 levels.
“During the NAFTA-USMCA period, approximately 86,000 U.S. feedlots with fewer than 1,000 head exited the industry, representing a 77% decline in the number of domestic feedlots.
“Meanwhile, imports of beef derived from cattle born in Mexico and Canada have increased 63% since NAFTA’s implementation. These imports are a direct substitute for domestically produced beef.
“The USMCA has increased reliance on imported cattle and beef supplies, displacing domestic production, U.S. cattle producers, and their cattle. We fully support President Trump’s decision not to renew the USMCA.”
To see R-CALF USA’s comments for the USMCA review click HERE.
