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.
The second reason for the current lackluster response by cattle producers to what appears to be generous price signals is a long-run loss of land available for grazing and the degradation of the infrastructure to support grazing livestock. Nationwide, input cost (such as equipment, fuel, fertilizers, fence materials) have inflated at rates four to eight times faster than cattle prices have inflated, even when accounting for recent increases in cattle prices. Consequently, cattle producers nationwide have not had sufficient funds to put toward critical capital replacement necessary to sustain production.
Locally, I am on record in this column and in other public venues discouraging cattle producers from expanding their herds until they have addressed critical infrastructure needs like perimeter fencing. I stand by that recommendation. The value of breeding cattle has essentially doubled in less than four years. Do we really want to release cattle worth $3,000 per head onto land where the only thing keeping them out of the public road is a fence consisting of three strands of barbed wire, broken posts and autumn olive bushes? Cattle producers should consider herd expansion only after critical capital infrastructure on the land they graze is determined to be sufficient and they have carefully considered their annual production costs per cow.
Caring for livestock is a year-round commitment and most any farm property has some chore or project that always demands attention, but perhaps the long nights of winter afford stockmen the best opportunity to seriously consider new ideas for the care of their animals hear the latest market outlooks, and gain insight into successful production strategies.
Virginia Cooperative Extension in partnership with local and regional farm organizations is offering a number of seminars both online and in-person. These events are open to all whether you farm or just have an interest in local agriculture.
On Jan. 13, a calving management webinar will be available for viewing at 7 p.m. at https://tinyurl. com/13JANcalving or join, me, Tom Stanley at the Rockbridge Extension office at 6:30 p.m. for a light supper and watch the webinar at 7.
The Rockbridge Cattlemen’s Association annual dinner meeting will take place on Jan. 20 at 6 p.m. at the Virginia Horse Center mezzanine. Dr Jessica Cowley, DVM, will give the keynote address on protecting your investment in bulls. The cost is $25 per person. Register by calling the Rockbridge Extension office at (540) 4634734 or send email to stanleyt@ vt.edu The Virginia Master Cattlemen’s Course has weekly webinars from 6:30 to 8:30 p.m. on Thursdays from Feb. 12 to March 26. The program consists of seven sessions that provide essential information for beef producers in economics, genetics, reproduction, nutrition, forages, herd health and marketing. Register for the program online at https:// tinyurl.com/MasterCattlemens2026.
For more information on these programs or other information related to agriculture and natural resources, contact the Rockbridge Extension office at (540) 463-4734 or send email to [email protected].
