How new federal regulations are driving up veterinary costs and forcing small ranchers out of business
The cattle industry is facing a quiet crisis that’s threatening the very foundation of small-scale ranching across America. Since June 2023, new FDA antibiotic regulations have transformed basic animal healthcare from an affordable necessity into a financial burden that’s pushing family operations toward bankruptcy. If you’re a cattleman struggling with skyrocketing veterinary costs, you’re not alone—and there are steps you can take to fight back.
The Problem: From $15 to $300 for Basic Treatment.
Under FDA Guidance #263, implemented in June 2023, all remaining over-the-counter antibiotics became prescription-only, requiring veterinary oversight for medications that farmers previously purchased directly. What this means in practical terms is devastating for small operations.
Consider this real-world example: treating a cow for pink eye used to cost about $8 for Terramycin eye ointment. Today, that same treatment requires scheduling a veterinary visit ($75-200), waiting for availability, and then purchasing the prescription medication. A $50-75 animal now costs $300+ just for a basic veterinary visit, plus additional fees for travel to remote ranches, plus scheduling delays.
The math is simple and brutal: a 1,000-2,000% cost increase for routine animal healthcare. For corporate operations with thousands of heads, this cost spreads across massive herds. For small operations with 30-300 head, it’s often the difference between staying in business or selling out.
The Perfect Storm: Regulations During a Veterinary Shortage.
The timing of these regulations couldn’t be worse. Over 500 counties across 46 states now face critical veterinary shortages, with only 3-4% of new veterinarians choosing livestock practice. New veterinarians graduate with an average of $185,000 in debt, making rural practice financially difficult.
This creates a vicious cycle:
- Limited veterinary availability means longer waits for treatment
- Higher demand for veterinary services drives up costs
- Animals suffer longer while waiting for appointments
- Small producers face financial strain from both delays and costs
Who Really Benefits? The Corporate Consolidation Factor.
While small ranchers struggle, this regulatory shift primarily benefits:
Large Pharmaceutical Companies: Approximately 62% of all animal health products are used in food-animal production, with 38% classified as feed additives, including antibiotics. Moving these products to prescription-only status increases their control over distribution and pricing.
Corporate Veterinary Chains: Large operations can afford on-staff veterinarians or exclusive service contracts, while small producers compete for limited rural veterinary services.
Industrial Livestock Operations: Approximately 100% of chickens and turkeys, 90% of swine and veal calves, and 60% of beef cattle receive antibiotic drugs during their lives. Large operations spread regulatory compliance costs across thousands of animals, while small operations bear the full cost burden for each treatment.
The Real Impact on Small Operations.
The human cost of these regulations extends far beyond economics. Small ranchers report:
- Delayed Treatment: Animals suffering while waiting for veterinary appointments
- Difficult Decisions: Choosing between expensive treatment and euthanasia for animals that could be easily treated
- Financial Stress: Annual medicine costs jumping from $200 to $2,500-4,000 for small herds
- Lost Expertise: Generations of practical animal husbandry knowledge being regulated away
One farmer described the reality: “Animals are gonna die… a 75 dollar animal costs me 600+ dollars so I have to sell 4 animals to recoup my money or I just put down the sick animals”.
What Cattlemen Can Do: Fighting Back at the State Level.
The good news is that there are concrete steps cattlemen can take to address this crisis. Here’s your action plan:
1) Contact Your State Representatives
What to Tell Them:
- The specific cost increases you’re experiencing
- How veterinary shortages compound the problem
- The impact on your operation’s viability
- Request state-level relief for small operations
Key Points to Emphasize:
- This affects rural constituents across party lines
- Small operations face different challenges than industrial agriculture
- State intervention could provide immediate relief
2) Support Legal Challenges
The Supreme Court’s 2024 Loper Bright decision eliminated “Chevron deference,” creating new opportunities to challenge federal agency overreach. States can now more effectively challenge FDA authority, particularly when:
- Agencies exceed statutory authority
- Regulations bypass proper rulemaking procedures
- Economic impacts weren’t properly assessed
3) Build State-Level Coalitions
Work with your state cattlemen’s association to:
- Document the real costs of compliance
- Gather data on operation closures and consolidation
- Coordinate multi-state efforts for federal pressure
- Develop state-specific relief measures
4) Advocate for Practical Solutions
Emergency Relief Measures:
- State exemptions for operations under 100 head
- Intrastate commerce protections for local sales
- Emergency agriculture declarations during veterinary shortages
Long-term Reforms:
- Veterinary loan forgiveness programs for rural practice
- Mobile veterinary service support
- Telemedicine expansions for routine treatments
The Bigger Picture: Constitutional and Economic Issues.
This isn’t just about antibiotics—it’s about the systematic elimination of small-scale agriculture through regulatory manipulation. Research suggests that broiler producers who only use antibiotics for disease treatment have costs about 2% higher than their counterparts who use antibiotics for growth promotion, but the real impact on small operations is far greater.
The FDA accomplished through “voluntary guidance” what they likely couldn’t achieve through proper Congressional authorization. When every manufacturer simultaneously “voluntarily” complies with guidance, it raises serious questions about regulatory coercion and market manipulation.
Moving Forward: What Success Looks Like.
Effective advocacy should focus on:
Immediate Relief:
- State-level exemptions for small operations
- Emergency veterinary shortage declarations
- Expanded telemedicine options
Long-term Solutions:
- Reformed veterinary education funding
- Rural practice incentive programs
- Proper federal rulemaking for future changes
Constitutional Principles:
- States’ rights in agricultural regulation
- Due process in regulatory changes
- Economic impact assessments for small businesses
Take Action Today!
The window for effective action is narrowing as more small operations face impossible economics. Here’s what you can do immediately:
- Contact your state senator and representative with specific examples of how these regulations affect your operation
- Join or support your state cattlemen’s association in advocacy efforts
- Document your costs before and after the regulations for legislative testimony
- Connect with other small producers to build a unified voice
- Support legal challenges to federal overreach when they arise
The Bottom Line.
Small cattle operations built American agriculture and continue to feed our communities while maintaining rural economies. These FDA regulations threaten that foundation by making basic animal care unaffordable for the very people who need it most.
This isn’t about opposing food safety or veterinary oversight—it’s about ensuring that regulations don’t inadvertently destroy the small-scale agriculture that forms the backbone of rural America. With coordinated action at the state level, practical solutions are possible.
The choice is clear: fight for common-sense reforms now, or watch small-scale ranching disappear under the weight of regulatory costs designed for industrial operations. Your voice, combined with thousands of others facing the same challenges, can make a difference.