Group opening up at 200yrds.

Check the parallax as has been described already.

If moving your head across the field of view of the scope results in the crosshairs/target shifting several inches with respect to each other, you've found the problem. You'll be able to tell this even if you were shooting at a difficult-to-aim-at target.

Another thing to consider - don't worry about any of this. Shooting honest under- 5" groups at 200 yards with a .30-06 hunting rifle is perfectly good, and for most things you'd want to use it for this is entirely "fit for purpose".
 
Shoot several more groups at both 100 yds and 200 yds. Shoot carefully from a good rest. See if you get the same results.

Some of those Midland rifles were lasers, some were not fit to be crowbars. I had one that should have been wrapped around a tree with force. I bought it new many years ago and it spent more time in the gunsmith shop than it did with me. Firing pin and trigger springs all went bad within 100 rds, chamber was cut off-center from the bore, barrel had to be set back and chamber recut. Firing pin was just a smidge too short.

The scope mounting holes were off center and not in line; the stock bedding was terrible, and a multitude of other sins. It was the first and worst CF rifle I ever owned and it aslmost put me off shooting. I got it to shoot within 2.5" at 100 yds by the time I sold it, which was better than the pie plate groups it shot when i first tried it.
 
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