Farm Progress

• Beef cow operations in parts of the country where pastures have been restored are probably getting ready to retain heifers.

August 9, 2013

3 Min Read

Improved pastures and lower feed prices appear to be creating a slow trend of heifer retention for beef producers, according to Purdue Extension Agricultural Economist Chris Hurt.

Beef cattle numbers have been falling down nationwide since 2007 because of drought that hit pastures and drove feed prices sky-high. Improved weather, resulting in more normal forage and grain production, should result in producers keeping more replacement heifers.

"Beef cow operations in parts of the country where pastures have been restored are probably getting ready to retain heifers," Hurt said.

"Beef cow numbers have declined in the Southeast by about 700,000 head, or 12 percent, since 2007. Midwest numbers have dropped by 680,000 head, or 14 percent, since 2007. Both of these areas should have the pasture and the feed to begin heifer retention.

"The northern Plains is another area that is ripe for herd expansion."

Currently, the U.S. Department of Agriculture has rated 72 percent of the nation's pastures as fair, good or excellent, compared with just 46 percent in 2012.

Prices for feedstuffs such as corn and soybean meal are expected to fall when new-crop harvest begins in the fall. Corn prices could fall by $1.50 per bushel, and fall soybean meal prices could be as low as $150 per ton lower than current old-crop prices, Hurt said.

But parts of the country haven't yet had enough pasture recovery for producers to consider growing their herds. Such areas include the central and southern Plains and the western U.S., which have about 43 percent of the nation's beef cows.

"Initial retention of heifers likely will occur this fall in areas primarily east of the Mississippi River, plus the Delta, the western Corn Belt and the northern Great Plains," Hurt said. "This is a large area that currently has 57 percent of the nation's beef cows."


Want access to the very latest in agriculture news each day? Subscribe to Southeast Farm Press Daily. It’s free!


Lower feed prices on their own might not be enough to encourage major herd expansion, though. According to Hurt, it will take higher calf prices as well.

Current calf prices are up slightly since June, but likely not enough to stimulate major expansion. So while heifer retention and expansion plans will begin this year, national beef production will drop by about 4 percent in the last half of 2013 and 5 percent in the first half of 2014, according to USDA.

The drop should lead to higher finished cattle prices, which would lead to higher calf prices.

Check live cattle futures prices now

"The industry might see the start of heifer retention this fall, but the magnitude of expansion is expected to be low and slow to get under way," Hurt said. "Beef cow producers know that herd expansion is a long-term investment, and they generally want a more extended period of favorable returns before making major financial commitments."

          More from Southeast Farm Press

Tennessee row crops look outstanding so far

Newly launched Web resource should help clear the air about GMO crops

Agreement keeps EU market open for non-hormone treated U.S. beef

Cucurbit downy mildew active on Virginia squash, cucumbers, pumpkins





Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like