Rebuilding The Herd: Are We Approaching a New Cattle Cycle?

Key signs of the U.S. beef herd’s recovery are improved pasture conditions, lower feed costs, and increased regulatory alignment and support for producers to implement targeted grazing practices.

CHAMPAIGN-URBANA, Ill. (RFD-TV) — After years of declining herds, there are signs that the cattle industry may be poised to grow again. According to University of Illinois Urbana-Champaign ag economist Brittney Kay Goodrich, a new cattle cycle may be taking shape.

“We’re at what I would say is the end of the previous cattle cycle, but potentially the beginning—or we’re almost at the rebuilding stage, or in the expansionary stage of a new cattle cycle,” Goodrich said. “Producers have obviously been seeing record-setting prices over the last number of months. We’ve had the lowest cattle herd size since the 1960s. There’s not a lot of cattle out there, so that’s really driving those prices higher.”

But even with those strong prices, Goodrich says drought conditions are still holding many producers back from rebuilding their herds.

“We haven’t seen any expansion in the cattle herd at this time, and part of that again is because we’ve seen the Drought Monitor here in Illinois, and it looks a lot worse than it did two weeks ago,” she explained. “And so, the drought makes those input costs of keeping cattle really high, and so then it looks a lot better to sell those feeder calves off and not expand your herd size. But it is anticipated that eventually, producers will start increasing these herd sizes again, and we will start to see the start of a new cattle cycle that will probably start in 2026.”

Goodrich said that improving pasture conditions and lowering feed costs must occur before herd rebuilding really gains momentum — signs she expects to see within the next year or two.

Supporting Livestock Producers With Wildfire Mitigation

We are still in the middle of wildfire season in the Western U.S., and grazing can help manage rangelands. However, industry leaders with the Public Lands Council (PLC) and the National Cattlemen’s Beef Association (NCBA) say that producers with federal grazing permits are facing new challenges in their efforts to mitigate wildfire risks.

“Over the last 20 years, really, we’ve seen a massive explosion in catastrophic wildfires,” said Kaitlynn Glover, PLC Executive Director and NCBA Executive Director of Government Affairs. “Fire generally can be a really good tool, right? We use prescribed fire. We recognize that fire has an important ecosystem role, but when they burn so hot, so fast, and so large, you see again, sort of a conversion of some of these landscapes into annual grasses. Do you see challenges to tree regeneration in some of these more forested ecosystems?”

Like prescribed burns, Glover explains, targeted grazing can also be used as a tool to mitigate the risk of uncontrolled wildfire.

“And so, the PLC has been really focused on a few things and has successfully worked with a number of members of Congress on a bipartisan basis to include more direction and more facilitation to the agencies to do targeted grazing, to do prescribed grazing, to use grazing as that fine fuels management tool,” she said.

Glover says the people who hold federal land permits often wear many hats—many serving as first responders in addition to their roles as farmers and ranchers. She said the PLC is working to expand tools and resources for them, with a significant focus on strengthening partnerships with the Bureau of Land Management (BLM) and the U.S. Forest Service.

Related Stories
Joe Peiffer with Ag & Business Legal Strategies advises farmers on end-of-year financial planning, including preparing records, avoiding common credit mistakes, and evaluating equipment purchases for 2026.
Eastern Region VP Joey Nowotny of Delaware joins us on FFA Today to talk about his new leadership role and an exciting year ahead for the National FFA Organization.
Cattle imports from Mexico remain stalled amid the New World screwworm outbreak. At the same time, Tyson closures add pressure on Nebraska producers and markets ahead of the USDA’s upcoming Cattle on Feed Report.
Water access—not acreage alone—is driving where irrigation expands or contracts.
The Lexington shutdown pushes national slaughter capacity utilization nearer long-run averages, underscoring how tight cattle supplies are reshaping packer operations.
Reed Marcum started hosting a toy drive in 2015. Since then, he has distributed thousands of toys across his home state of Oklahoma and in Texas and Arkansas. Now serving in the Army, Reed’s family and local 4-H chapter are running the event.

LATEST STORIES BY THIS AUTHOR:

Alex Templeton works alongside her dad, sharing her life through social media and her blog Ag Talk with Alex.
Secretary Rollins also met with specialty crop producers at a local strawberry farm to discuss workforce needs and the Trump Administration’s recent wins related to significantly cutting the cost of H-2A labor for California farmers.
Brent Graves, auctioneer and mentor, shares his journey supporting youth in agriculture, livestock competitions, and how he is turning junior livestock auctions into a classroom for youth in agriculture.
China’s beef policy risk stems from domestic volatility, making export demand inherently unstable. Jake Charleston with Specialty Risk Insurance offers his perspective on cattle markets, risk management, and producer sentiment.
USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
U.S. Secretary of Agriculture Brooke Rollins said permanent access to the higher ethanol blend would provide farmers with much-needed certainty while supporting domestic crop demand.
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.