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Will new beef plant signal cow herd rebuild?Will new beef plant signal cow herd rebuild?

Ag Matters: The future is bright for the beef industry in Missouri as a processing plant opens doors for cattle producers.

Chris Chinn

January 31, 2025

3 Min Read
Entrance sign for American's Heartland Packing
ABOUT TO OPEN: American Food Group’s new beef processing plant in eastern Warren County is almost ready to welcome cattle through its gates. It may signal a cow herd rebuilding in the state. Mindy Ward

When my husband, Kevin, and I sold calves a few months back, we had a decision to make: Do we send our heifers or keep them back as replacements?

Cattle producers find it tough to pencil out keeping their heifers when prices remain strong at the sale barn.

2024 marked the sixth consecutive year of a nationwide declining beef cow inventory. Missouri is no different. The question is, what will turn that tide toward a rebuilding of the nation’s (and the state’s) cow herd?

Every cow-calf operation is different, but the main factors seem to be:

  • lower feed costs

  • interest rate stability

  • a slowdown in high equipment costs

  • confidence that the drought is over

One factor for producers in Missouri and the entire region is the beef processing plant scheduled to open in the first half of 2025.

Market for beef comes on line

America’s Heartland Packing, located just east of Wright City, Mo., will process 2,400 head per day when it reaches full capacity, half cull cows and the remainder finished cattle.

This facility is the largest beef operation built in Missouri in many years, perhaps back to the days of the processors at the Kansas City and St. Louis stockyards. It has the potential to be a game-changer for cattle producers in Missouri and a serious consideration for rebuilding cow herds.

Related:Welcome new College Farmer columnist: Cole Hunter

I’ve said it before: I appreciate the American Foods Group family for investing in our state.

The plant will have a trickle-down effect in rural communities as more cattle stay in Missouri for finishing. More calves mean additional feed purchased at the local elevator, fencing materials from the farm supply store and veterinary services.

More money in the local economy is turned over numerous times through those purchases and others at grocery stores and gas stations.

Opportunity for next generation

New producers will be an important piece of the cow herd rebuild.

We all know producers who sold their herd over the past few years with no intent to reenter the business. What happens with their ground is a big part of the industry looking forward.

Our farm is like many across the state, where our son and his wife are the next generation to raise livestock and row crops. But for other producers, there isn’t a next generation, or at least one interested in farming.

Rental agreements and land sales can keep that acreage in production agriculture, but that can be cost-prohibitive for beginning producers.

The Missouri Agricultural and Small Business Development Authority offers a Beginning Farmer Tax Deduction Program to help.

Related:Cattle, beef markets explode out of gate

A Missouri farm owner who rents, leases or enters into a crop-share agreement with a qualified beginning farmer can reduce their Missouri adjusted gross income equal to the amount of income received under the agreement. I encourage you to visit masbda.com for details or to call the MASBDA team at 573=751-2129.

Who knows what the crystal ball holds for 2025? Certainly, we hope for adequate moisture this winter and a strong start to the growing season.

Perhaps knee-high grass and a major increase in processing capacity will be the start of a cow herd rebuild. Either way, it is still a great time to be in agriculture!

Gauging the political temperature

2025 brings new administrations to Jefferson City, Mo., and Washington, D.C.

Gov. Mike Kehoe is a first-generation cattle producer and a true friend to agriculture. He is also a businessman and knows the importance of creating additional markets for our agriculture products. I look forward to working with the governor to advance Missouri agriculture for all producers.

I anticipate a more farm-friendly administration in Washington, D.C., as well. Yes, we are hearing President Donald Trump talk about tariffs on agriculture products, but he understands the need for new markets across the globe and an increase in demand for U.S. goods.

Related:Make farm decisions before you’re 6 feet under

What happens there remains to be seen, but I do think the president wants to see fair value across the globe for the products raised and grown in America.

Chinn is the director of the Missouri Department of Agriculture and lives on a diversified farming operation in northeast Missouri.

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