Ag commissioner calls for heifer tax credit
In response to the nation’s lowest cow herd in more than 75 years, Texas Agriculture Commissioner Sid Miller called for an aggressive “America First” beef policy on Feb. 12 to rebuild herds, strengthen food security and lower grocery prices for Americans.
Miller’s call to action comes on the heels of President Donald Trump’s Feb. 6 proclamation to lower tariff barriers and allow the U.S. to import more beef from Argentina.
In the corresponding press release, Miller praises Trump for reopening global markets but cautions the administration against using Argentine imports as a long-term strategy.
“I applaud Trump’s leadership in reopening American markets around the world,” Miller says. “But increasing Argentine beef imports is not ‘America First’ or rancher first. I stand shoulder to shoulder with Trump in fighting to lower beef prices for families, but this plan should be a temporary fix – not a long-term solution.”
“The right way to lower prices is by rebuilding America’s herds and processing capacity here at home,” he adds.
Argentine beef imports
Titled “Ensuring Affordable Beef for the American Consumer,” Trump’s Feb. 6 proclamation would purportedly lower the tariff rate quota to increase imports of lean beef trimmings, all 80,000 metric tons (mt) of which would come from Argentina.
The move also aims to address record-high ground beef prices, which averaged $6.69 per pound in December – the highest since the U.S. Department of Labor began tracking the data in the 1980s.
The White House proclamation cites widespread drought in 2022, grazing lands damaged by wildfire and ongoing supply constraints as factors driving beef prices higher. As of July 2025, total U.S. cattle inventory stood at 94.1 million head – about one percent lower than 2023 – continuing a multi-year downward trend.
The proclamation also notes the U.S. has felt the effects of the New World screwworm outbreak in Mexico, which has restricted imports of live feeder cattle. Prior to the outbreak, the U.S. imported roughly one million feeder cattle annually from Mexico.
According to the U.S Department of Agriculture’s (USDA) Economic Research Service (ERS), Argentina shipped roughly 51,574 mt of beef to the U.S. as of November 2025, representing about 2.2 percent of total U.S. beef imports, which equates to 2.2 million mt or nearly 4.9 billion pounds of beef.
“If Argentina hits 80,000 mt of beef trimmings, it would still only equate to about 3.6 percent of all U.S. beef imports, based on USDA statistics,” writes DTN Ag Policy Editor Chris Clayton in a Feb. 9 article. “Australia, Canada, Mexico, Uruguay, Nicaragua, New Zealand and Brazil each export more beef and veal to the U.S. than Argentina.”
Widespread backlash
Despite this, Trump’s proclamation stirred up opposition from the ag industry, with several ag groups voicing their concerns.
North Dakota Farmers Union President Matt Perdue says he believes the move is misguided and argues increased imports are unlikely to significantly lower consumer prices.
“Economists – and, frankly, history – has shown us increasing these imports of Argentine beef or beef from any other country is not going to have a meaningful impact on consumer beef prices,” Perdue tells RFD-TV in a Feb. 13 article. “What it’s more likely to do is to lower the price producers are receiving for cattle, so we think this is the wrong approach.”
“We appreciate the administration’s focus on how we can work together to achieve affordable food prices for consumers, but I think the conversation really needs to focus on supporting the U.S. rancher, not our foreign competitors,” he adds.
Instead, Perdue emphasizes the need for fair markets, better access to credit and stronger support for young producers entering the industry.
Miller echoes these concerns, saying trade policy must align with domestic production goals, and he argues the long-term solution is not to increase imports but to rebuild the domestic herd and expand U.S. processing capacity.
“While I understand Trump’s focus on short-term solutions, we must pair it with a lasting ‘America First’ approach built on herd recovery, market fairness and real food security,” Miller says. “Short-term fixes matter, but the real win comes from a long-term ‘America First’ plan which rebuilds our herds, our markets and our independence.”
“Our ranchers are ready to rebuild,” Miller continues. “They just need the right tools and support. An ‘America First’ beef policy means producing safe, affordable, homegrown beef for American families and putting America’s producers back in control.”
“America First” beef policy
In response, Miller’s “America First” proposal calls for a Federal Heifer Retention Tax Credit, modeled after the Child Tax Credit, which would allow cow/calf producers to receive a federal tax credit for retaining heifers as breeding stock.
By incentivizing herd expansion, he believes producers would be better positioned to stabilize herd numbers over time, rather than selling replacements due to tight margins and drought pressure.
Deeming it a national “crisis,” Miller calls on Congress to include the tax credit in the next farm bill.
“This needs to be treated like the crisis it is, and we need immediate action,” Miller says. “Congress has a key opportunity for our next farm bill to send a clear message America has our producers’ backs. We need to treat American beef like the precious, life-giving resource it is and do everything we can to promote a strong supply, fueled by our great beef producers.”
“While we are still trying to recover from a $37 billion Biden-era agriculture trade deficit, we don’t need more foreign beef imports making it worse – we need more American beef,” he adds. “The next farm bill must stand firm with American ranchers. When we put American ranchers first, we put America first.”
In addition to the Federal Heifer Retention Tax, Miller’s policy includes several other priorities including expanding drought relief and grazing access by opening access to an additional 19 million acres of federal land, strengthening market transparency and reforming anti-competitive practices and enforcing mandatory country-of-origin labeling.
Miller argues consumers deserve to know exactly where their beef originates and the integrity of the “Product of USA” label must be protected.
He also credits USDA’s updated beef plan for making progress on processing capacity and market transparency but points out shifting trade policy shouldn’t derail domestic rebuilding efforts.
Overall, Miller notes national food security – not just price stability – is at stake.
“This policy would be the most direct way to help rebuild our national herd, increase beef production and ultimately bring relief to American families at the grocery store,” he states.
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
