Why the U.S. cattle herd is at a 75-year low

4 hours ago

The U.S. cattle herd is at a 75-year low due to factors like rising costs, drought, international competition, and industry consolidation.
High cattle prices encourage selling livestock but discourage herd rebuilding, reducing overall domestic supply.
Beef production remains steady despite fewer cattle because modern cattle are larger and heavier.
Farmers face increased expenses for fuel, equipment, fertilizer, and loans, with high interest rates adding risk.
Cattle operations have declined by about 17% from 2017 to 2022, with an aging farmer population and high barriers to entry.
Climate change intensifies droughts and wildfires, reducing farm earnings and increasing financial losses.
The New World screwworm threat near the U.S.-Mexico border led to import restrictions, boosting demand for U.S. cattle.
Consolidation among four major meatpacking companies reduces ranchers' profits while retail beef prices rise.
The U.S. imports record amounts of beef, potentially further shrinking the domestic cattle industry.
Producers are selling directly to consumers to bypass middlemen, and herd rebuilding is slow due to cattle's long growth cycle.

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