The first survey of Arkansas beef producers in more than a decade found that most are concerned about rising land, herd and equipment costs.
The 2019 Arkansas Beef Industry Assessment, due for release in the coming weeks, surveyed more than 300 cattle producers in six industry sectors. The University of Arkansas System Division of Agriculture and the Arkansas Beef Council conducted the study. The project was funded by the Arkansas Beef Council.
Shane Gadberry, professor of ruminant nutrition for the UA System Division of Agriculture, said the approach was to identify the strengths, limitations, opportunities and threats that Arkansas beef producers see for the industry.
"Some of the shared challenges that they faced include things like costs of land when expanding operations or looking at the foresight of the next generation of producers," Gadberry said.
"How are they going to afford to get in?"
A copy of the report obtained by the Arkansas Democrat-Gazette shows that beef producers shared similar ideas about the strengths and limitations they face today. A few key limitations include the rising costs of land, feed and equipment.
There was also concern about the state's reputation for poor cattle quality compared with surrounding states and higher prices for pasture land that have discouraged expansion.
Threats on their minds range from volatile markets that stem from trade uncertainty, and parasite and disease resistance in cattle, to drought, feed shortages and politicians pushing tighter regulations that drive up costs.
Recruiting youths for a career in farming to replace aging farmers is another threat. The study indicates that most beef producers in the state are more than 50 years old. Almost half were more than 60 years old.
Caleb Plyler, 38, of Hope, is an exception.
"I've lived on a farm all my life," and there are a lot of upsides to the industry, but "everyone thinks about the negatives first," he said.
Plyler of Plyler & Son Charolais, a 1,000-acre cattle farm, said rising land prices and expenses are some of the top issues "going on in Arkansas right now."
Another struggle is getting fair market prices for Arkansas-raised cattle, he said.
"We don't have as many markets or outlets," Plyler said. "We don't have the competition," feed lots or finishing facilities that other states have, and "it costs money to ship the thing."
The state's cattle survey stemmed from an initial meeting in the fall of 2017, where leaders joined to identify opportunities and threats the beef industry faces.
About 75 representatives from different sectors of the industry participated in that survey, said Travis Justice, executive director of the Arkansas Beef Council. From that meeting, Gadberry and company developed a survey and distributed it through the state's county extension offices.
Johnny Gunsaulis of Benton County is a cooperative extension agent and staff chairman for the UA System Division of Agriculture. He said the high cost of getting into the business is the main hurdle the industry faces.
"Especially in our part of the state," he said.
The average farm real estate values in Arkansas are $3,250 per acre, or 38 percent more than Oklahoma's $2,000 per acre, 2018 U.S. Department of Agriculture land survey data show. Missouri's farmland averages are $3,700 per acre.
Gunsaulis said Northwest Arkansas land prices can be $8,000 per acre, and "that's on the lower end."
"Even at $5,000, if it's going to take 2 to 3 acres to run a cow, we're talking a $10,000 to $15,000 investment on nothing," he said. "Then you've got the cows, the equipment and everything else on top of that."
Market volatility from trade uncertainty also poses a threat for beef producers.
"If China shuts off chicken wings, then those all end up here" at a cheaper price and as a result "no one will consume a hamburger," Gunsaulis said as an example. "All are kind of related and maintain their balance, or one of them can wreck it all."
George Anderson, 51, of Springdale is a commercial producer who started raising cattle in 1989 after raising chickens for a while, which he continues to do. Anderson said he remembers when a rancher could turn a profit with 100 cows.
"Now if you don't have 500, you're just kind of a hobby farm," he said.
"I think the people that survive, like always, are going to end up being very good producers, very innovative," Anderson said. "They're going to embrace the technology and add value to their herds."
Business on 02/20/2019