Impact of Drought on Cattle Numbers
In recent years, droughts have significantly influenced cattle numbers, dictating expansions and contractions in the cattle cycle. From 2011 to 2013, widespread drought led to a 2.5% decrease in the beef cattle herd, driving record high prices due to reduced cattle numbers. This prompted a nearly 3.5% increase in the herd by 2018 as conditions normalized.
Fast forward to 2021, another bout of drought resulted in a 2.5% decline in the beef cattle herd through 2023. Currently, the U.S. beef cow herd stands at 28.2 million head, below the estimated 32.3 million needed annually for feedlot supply.
On our operation, we're adapting to these challenges. This past year, we've retained all our heifers and utilized backgrounding in Kinsey to mitigate local drought impacts. Even with the good rainfall in June, hot, dry conditions in July are challenging our summer pastures, however we do have the benefit of quality stock water this year. Despite drought challenges, we're implementing targeted herd management strategies to retain and expand our cow herd. This includes optimizing grazing practices, exploring alternative feed sources, and strategic breeding programs to strengthen our herd's resilience.
We hope to continue to navigate these dynamics and adjust production practices to sustain our ranching operations.