Cattle Prices Rise & US-Argentina Beef Deal: Impact on SD Ranchers & Consumers

Canton, South Dakota, sees changes in the cattle industry as economic forces and consumer preferences drive adaptation.

Published on Feb. 10, 2026

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The cattle industry in South Dakota and across the U.S. is facing a shifting landscape, with declining cattle numbers, fluctuating market prices, and the increasing profitability of crops like corn and soybeans leading some farmers to convert pastureland to cropland. The recent U.S.-Argentina beef import deal has sparked debate, with some seeing it as a 'nothing burger' and others concerned about the impact on domestic producers. Consumer demand for transparency and locally-sourced beef is also a growing factor, as the dairy industry's shift towards larger, consolidated operations reduces the need for smaller livestock auctions.

Why it matters

The changes in the cattle industry have significant implications for South Dakota ranchers, consumers, and the broader agricultural economy. Understanding the driving forces behind these shifts, such as government subsidies, international trade agreements, and evolving consumer preferences, is crucial for producers to adapt and navigate the volatile market conditions.

The details

The core issue is the increasing profitability of crops like corn and soybeans, which are incentivized by government subsidies, leading farmers to convert pastureland into cropland. This is contributing to historically low cattle numbers. The recent U.S.-Argentina beef import deal has sparked debate, with some, like Mike Koedam of Sioux Falls Regional Livestock, believing the imported beef will likely be used for ground beef rather than premium cuts. However, others, like cattle producer Scott Roelofs, see the deal as a 'giant nothing burger' due to Argentina's limited export capacity. Consumers are also demanding more transparency and a preference for locally-sourced beef, which could become a significant factor in the future of the industry. The shift towards larger, consolidated dairy operations is also reducing the need for smaller livestock auctions, further impacting the industry.

  • The U.S.-Argentina beef import deal was finalized last week.
  • Tri-State Livestock in Sioux Center, Iowa, recently closed, illustrating the changing landscape in the livestock auction industry.

The players

Scott Roelofs

A Minnesota cattle producer who has highlighted the increasing profitability of crops like corn and soybeans, which are incentivized by government subsidies, leading to the conversion of pastureland into cropland and contributing to historically low cattle numbers.

Walt Bones

A retired Secretary of Agriculture who has also noted the impact of government subsidies on the conversion of pastureland to cropland, reducing the available land for cattle ranching.

Mike Koedam

The co-owner of Sioux Falls Regional Livestock, who believes the initial reaction to the U.S.-Argentina beef import deal might cause a slight dip in prices, but ultimately doesn't foresee a major disruption, as the imported beef will likely be used for ground beef rather than premium cuts.

Dusty Johnson

A Congressman who stated that the best solution for any deficiency in the beef market is more American beef, not more foreign beef.

RRFN

A media outlet that reported on the high volatility in the cattle market, which is impacting both buyers and sellers.

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What they’re saying

“As they've been too cheap for too long.”

— Scott Roelofs, Cattle Producer

“Ain't gonna be the rib eyes and the T bones you're gonna eat in Sioux Falls.”

— Mike Koedam, Co-owner, Sioux Falls Regional Livestock

“The best solution for most any deficiency in the market is more American beef, not more foreign beef.”

— Dusty Johnson, Congressman

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.