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
Jael Cruikshank, the newly elected Western Region Vice President, shares her story on this week’s FFA Today.
Farm legal expert Roger McEowen reviews the history of the Waters of the United States (WOTUS) rule and outlines how shifting definitions across multiple administrations have created regulatory confusion for landowners.
According to November’s Cattle on Feed Report, Nebraska now leads the nation in cattle feeding as tighter supplies continue to reshape regional market power and long-term price dynamics.
These “USDA Foods” are provided to USDA’s Food and Nutrition Service (FNS) nutrition assistance programs, including food banks that operate The Emergency Food Assistance Program (TEFAP), and are a vital component of the nation’s food safety net.

LATEST STORIES BY THIS AUTHOR:

Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
Beginning Farmers and Ranchers, Crop Insurance, and a Business Planning Complication
While treatable with a vaccine, anthrax is a dangerous threat to cattle herd health if not identified and treated immediately.
Smaller slaughter numbers across beef and pork signal tighter supplies into late 2025, while record-low veal production highlights ongoing structural changes in the sector.
UC Davis Professor and Extension Specialist Dr. Frank Mitloehner joined us on Friday’s Market Day Report to preview the festivities and share why this event has become such a special tradition for the ag community.
Beal joined us on Friday’s Market Day Report to discuss her election to NASDA’s presidency, challenges facing American agriculture, and her background as a Mainer and dairy farmer.
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.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.