Abstract The U.S. beef cattle industry finds itself at a pivotal point in the current cattle cycle. After several consecutive years of liquidation driven by drought and low profitability, the nation’s beef cow inventory has fallen to its lowest level in over seventy years. Tight cattle supplies have supported record cattle prices in recent years. Yet, even as market fundamentals suggest there are incentives to begin rebuilding the U.S. cow herd, the signals for expansion remain muted. This presentation examines the prospects for herd rebuilding against the backdrop of the current cattle cycle, the factors shaping producer decisions, and what these dynamics imply for cattle and beef markets over the next several years. Structural constraints, input costs, and financial considerations will likely delay a broad-based recovery in beef cow numbers. This rebuild will be slow and intentional.
James Mitchell (Wed,) studied this question.