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A slow approach to herd expansion

Could herd expansion be around the corner in the cattle industry?

Oklahoma State University economist Derrell Peel says once herd expansion happens, he expects it to be a gradual increase. “We’re thinking about thinking about expanding,” he says. “We’re not really doing it yet, I don’t think, but I do think we’re probably getting ready to.”

Peel tells Brownfield producers continue to approach herd expansion with caution. “Producers have it pretty fresh on their mind a decade ago,” he says.  “We had two years of high prices and then we were able to sort of tear up our playhouse pretty quickly.”

So where is he watching for signs of growth?  “We’ve got more drought issues right now up in the Northern Plains,” he says.  “I would say probably in the central and southern plains will be the area that I would look for perhaps as quick as anywhere. “

Peel says the latest Cattle Inventory report showed some signs of expansion as large cow/calf states like Texas, Oklahoma, and Missouri actually had numbers there were up slightly.  

AUDIO: Derrell Peel, Oklahoma State University