Montana Cattlemen Sound Off on Profitability

In a small arena in the Public Auction Yards in Billings, over 65 ranchers and livestock professionals gathered for the first "listening session" for the Producer Profitability Initiative, sponsored by the Montana Stockgrowers Association.

And they did not mince words in their concern for their livelihoods.  Put simply, we are losing producers.

"The beef industry needs to tell their story to the policy makers," The owner of PAYS exclaimed.

Using their smartphones in interactive feedback, attendees expressed their largest challenges: Labor, Regulations, Taxes and Government.

The $26-million exemption to the estate tax will sunset in 2025, and ranches valued between $5-10 million will be subject to devastating taxes, wiping out family farms.

One operator expressed the frustration his elderly father is suffering.  "This estate tax is Bullsh#&!"  When reminded that the session was live-streamed over the internet, he countered, "I don't care."

A younger man explained how producers his age struggle to get land and capital to start ranching.  Regulation is a hinderance.  He tried to "pencil" a profit to get funding from banks, and couldn't see how to stay in business.

The H2A program for help from overseas is a big help for ag outfits, but the duration per worker should be 12 months instead of 10.  Meat Packers should be onboard with this since they also benefit from the labor.  Illegal immigrants are undercutting the legitimate work.

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Taylor Brown of the Northern Broadcasting System, and a cattleman in his own right, set the balance and roles to stay in business.  Paraphrasing, "I will take care of reducing expenses.  The Stockgrowers Association should advocate for increased revenue and markets."

Finally, the session's host from PAYS made a suggestion about terminology, specifically "Profitability."  A better term for what ranchers and other ag businesses may be Conservation or Preservation.

Other listening sessions will be offered throughout the state, and I suspect the same messages will be given by others.  The full schedule of sessions and the Producer Profitability Initiative is available at this link.