NC cattle farmer getting unexpected boost from beef tariffs pause

HARNETT COUNTY, N.C. (WTVD) -- A Harnett County farmer says his business is seeing an unexpected boost from a federal decision to temporarily pause certain beef tariffs. It's a move that has drawn skepticism from cattle producers nationwide.

Beginning Tuesday, the Trump administration will allow 300,000 metric tons of lean beef trimmings to be imported into the United States and combined with domestic beef to increase ground beef supply. The White House has not said where the imported beef will come from, prompting concern from industry groups.

For David Pflugfelder, owner of Cathis Farm in Lillington, the policy shift is having a different effect. Pflugfelder, who raises grass-fed cattle and sells directly to consumers, said his farm is insulated from market swings tied to imports and tariffs.

"In the 10 years plus that we've been doing this, we've watched the price of cattle increase, decrease, and it's nothing that the farmer has any say over," he said.

Pflugfelder said the influx of imported beef will lower the value of ground beef across the market.

"As soon as you add a large volume of ground beef to it, now everything's worth less," he said. "Just basic supply and demand economics."

The North Carolina Cattlemen's Association criticized the move in a weekend statement, saying decisions made in Washington "have real consequences for farms and ranches across our state" and urging federal leaders to include producers in policy discussions.

Pflugfelder said the tariff pause has actually driven more customers to his farm, where he can guarantee the origin and handling of his cattle. He notes that as something he says is not possible with imported beef.

"We can give a complete birth-to-plate trail and tell you everywhere it's been," he said. "As soon as (the tariff pause) got on everybody's radar, our sales this past week have tripled compared to our average."

The administration is also encouraging retailers to offer a 25% discount on beef as part of the temporary tariff pause. Pflugfelder said his direct-to-consumer model shields him from those pricing pressures.

"When we set the pricing, we are protected from that," he said.

The proclamation comes amid a nationwide shortage of cattle, which has driven up the value of U.S. beef. Pflugfelder said the combination of fewer cows and steady demand is part of what led to the tariff pause.

"We have less cows. American beef demand has not decreased," he said. "So the amount of cows to supply, that has increased in value."

Pflugfelder said he expects interest in locally sourced beef to continue rising as consumers look for transparency in the supply chain.