United States: Beef Farmers Refuse To Expand

The latest beef industry and USDA data suggests that beef cattle producers still have yet to respond to high market prices by retaining female calves (heifers) to expand their herds. This disinclination by cattle producers to invest in additional cattle despite exceptionally high nominal (not adjusted for inflation) cattle prices can be attributed to two things.

First, the most recent historic peak in cattle prices that occurred in 2014 was followed by a precipitous decline in cattle prices 2015-2017. At the time inventories of breeding age animals were not so tight as they are today and recovery from severe drought in the southern plains fueled a rapid restoration of beef supplies...

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