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Cattle producer sees managing risk as top 2025 priority

The vice president of National Farmers Union (NFU) says he has concerns about the strength of the cattle market.  

Jeff Kippley, who raises beef cattle and row crops in South Dakota, says retaliatory tariffs cutting export demand and high retail prices are worrisome.

“You gotta wonder how long are the consumers going to be able to keep buying the prime rib rather than switching to a pork loin or a lesser product?”  He says, “And if we’re not doing the exports with our higher quality beef, we’re going to see it all start dropping.”

He tells Brownfield he tries to manage that risk through the USDA’s Livestock Risk Protection Plan.

“The nice thing about those is the ease of using it.”  He says, “You can do it on one head. You can do it on your whole herd.  By using the LRP, we are able to sell it and kind of do like you would with grain, a little bit at a time.  Then you’re not so subject to taking what the price is on the day you sell?”

He says the relatively new product is gaining popularity.

“We have a lot of cow calf operators that have never done any hedging before at all.”  He says, “And so the whole idea to them is kind of scary, and they don’t like to think about, you know, giving up some of their money. But as we get going and the bankers are really pushing a lot of guys to do it., I think it’s going to become more popular?”

Kippley says these types of programs can help ensure producer sustainability, and demonstrate the need for a strong, up-to-date farm safety net.

Brownfield spoke with Kippley at NFU’s 123rd annual convention in Oklahoma City.

AUDIO: Jeff Kippley – NFU