The United States is running out of cattle, according to new statistics released this week by the U.S. Department of Agriculture. The numbers show that ranchers are raising fewer cows, leading to higher beef prices.
According to the Department of Agriculture, the national beef cattle inventory fell to 28.2 million head this year, the lowest level since the 1970s and a 2% decrease from a year ago.
Agricultural economists say the ongoing drought of the past three years, along with high input costs and inflation, are putting pressure on both consumers and farmers.
Rancher Hampton Cornelius says his family operates a farm in Weld County, Colorado. We have about 200 calf pairs. Cornelius said his family’s farm is called Coyote Ridge Ranch.
His family sells seed stock and cattle genetics to beef ranchers across the United States. Cornelius said the people who work there: his agricultural department They make up only a small portion of the U.S. population.
“We love being able to see the animals that we take care of every day grow up and have wonderful lives and still benefit people,” Cornelius said.
Cornelius said he hasn’t had to reduce the size of his herd, but other beef farmers have done so.
“You know there’s a demand, there’s a cost, there’s a price, but the expenditures and costs associated with that production have escalated to the point where there’s some equilibrium at higher prices,” Cornelius said. he said.
Expert They say the drought continues The past three years have affected the largest beef-producing states: Texas, Nebraska, Kansas, California, and Oklahoma.
Bernd Nelson is an economist with the American Farm Bureau Federation. Nelson says farmers need to remain resilient to the drought that has persisted in recent years.
“Temperatures have become drier and warmer in some of the most livestock-intensive regions of the United States,” Nelson said. “Combined with high input costs and inflation putting upward pressure on both consumers and farmers, many farmers are wondering whether they want to continue producing, reduce herd size, or take on the challenge. I see myself facing a decision like, “And let’s all get out of the business.” ”
Feed prices have soared due to the drought. To all the farmers across the country.
Texas is the number one beef producer in the United States.
Cody Maxwell is an agricultural resource county agent at Texas A&M University in College Station, Texas. Maxwell also has high feed prices for Texas farmers, he said.
“We have seen the price of hay in Texas fall from what we would normally call a quality hay bail of about $55 per bail…per bail. We’ve seen it go from $120 to $125,” Maxwell said. .
Economists say demand for beef has remained strong since the coronavirus pandemic. During lockdown, people started grilling more.
Beef sold for an average of $5 a pound last year, according to the U.S. Bureau of Labor Statistics.
Experts predict that prices will rise in the coming years.
