Drought and Rising Costs Slow Beef Herd Rebuild Despite Strong Cattle Prices

High prices alone may not drive herd expansion.

0G4A7492 copy.jpg

FarmHER, Inc.

LUBBOCK, TEXAS (RFD NEWS) — Strong calf prices are not yet enough to trigger herd rebuilding as drought and rising input costs continue to limit expansion decisions. Analysis from Hannah Baker, University of Florida Extension beef economist, highlights growing pressure on cow-calf producers across the Southeast.

Drought remains a major constraint, with all of the Southeast experiencing some level of dryness and about 75 percent in severe to extreme conditions. Stressed forage, combined with early-year freezes, has reduced grazing availability and increased reliance on purchased feed.

Farm-Level Takeaway: High prices alone may not drive herd expansion.
Tony St. James, RFD News Markets Specialist

Input costs are adding further pressure. Diesel prices are running roughly 55 percent above a year ago, with some areas topping $6 per gallon. Fertilizer prices have also jumped, with potash, UAN, and urea all posting significant year-over-year increases, raising concerns about forage quality and production.

Despite those challenges, cattle prices remain historically strong. Steer calves in the Southern Plains are up sharply from both last year and the five-year average, supported by tight supplies and strong demand.

Related Stories
Charly Cummings with Superior Livestock Auction joined us to discuss today’s cattle offering, market demand, and what producers should watch as they plan upcoming sales.
David Gruchot with USDA APHIS joined us to discuss the growing threat of invasive pests and the steps individuals can take to help protect U.S. agriculture.
Input costs may stay elevated beyond tariff impacts.
CoBank Lead Energy Economist Teri Viswanath discusses their analysis of rising energy costs, rural impacts, and the outlook for fuel prices amid ongoing global uncertainty.
Lawmakers say payments will support schools, infrastructure and public safety in rural communities.
Risk management and diversification improve survival odds. Heidi Exline with American Farmland Trust discusses barriers to farmland access and efforts to connect the next generation of producers with retiring farmers.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Lower U.S. ethanol production and stocks may support ethanol prices while strong export demand continues to support ethanol and corn markets.
More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
China’s changing pork demand may limit export growth opportunities.
Spring Fieldwork Progress Mixed As Moisture Slows Activity
Margin pressure and competitiveness concerns are shaping cautious outlooks.
Leadership closer to western forests may speed decisions impacting timber, land use, and wildfire management.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.