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The American Farm Bureau Federation or just plain Farm Bureau as they are commonly known have been around representing farmers since 1919. They are a lobby group for farmers that represents all sectors and the Irish Farmers Journal met Senior Director, David Salmonsen, to find out what they thought of Irish beef entering their market as well as finding out the issues for US farmers.
It is clear that there is nothing unique about Irish farmers having a problem with milk prices at present. Their milk is bought by the cwt (hundred weight in old measurement) and they have had a fall from $24 per cwt to around $15 at present and they expect it to go lower.
The usual issues around abundant supply and good value feed are the main reason for the drop. The US is looking to sell milk to Canada but getting the trade agreement is proving to be difficult. They continually point out to the Canadians the irony of them agreeing to accept EU beef but not US milk. All trade negotiations are complex no matter how local!
Cattle numbers
The other big topic in US farming at present is the drop in beef cattle numbers to their lowest levels since the 1950’s. Texas, for long synonymous with cattle, and Oklahoma have been ravaged by drought, squeezing many ranchers out.
Of course the drought hits everyone equally but the Bureau’s feeling is that it squeezes the small ranchers hardest and they are the first to give up. The decision is probably made easier by the availability of record cattle prices. There is also no guarantee that high prices will bring the smaller guys back into production although we might expect that the land is the driver of production. If it grows grass and cattle prices are good, there is a fair chance that someone will graze it.
Irish beef in the US
As for Ireland sending beef into their market, there is no reaction and that is probably a good thing. We are not seen as a threat or likely to undermine their market position. The bureau corroborated the Bord Bia research that identified the upmarket restaurants of New York, Boston and Washington as the ideal home for high value, grass fed beef cuts.
Our potential role in supplying manufacturing beef didn’t cause any great anxiety either as Australia and New Zealand are seen to dominate that business.
The other big story from US agriculture is the ending of the fuel and food debate. A decade ago the ethanol use for corn put hitherto unknown value into a crop that was a perennial problem to market for farmers. However the arrival of fracking and the cheapest oil and gas prices for years has put an end to that discussion for the moment anyway.
Conclusions
Reflecting on the meeting, we are left to conclude that US and Irish farming is similar yet so different. Commodity price fluctuations have the same consequences everywhere. The big difference is the lobbying function.
The size of the country means that farmer representatives and politicians don’t rub shoulders with each other at funerals or in the pub after a match. They join a huge lobby organisation that is located near the centre of Government in Washington who communicate with members through email.
We cannot conclude it is better given that unlike Ireland the family farm is almost extinct but it certainly is different.
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