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Strong calf prices and soaring cow values may push herd rebuilding further into the future

An ag economist says the potential for continued record high prices in the cattle sector could further delay herd expansion.

Josh Maples with Mississippi State University Extension says cattle producers are in an interesting position.  “We have expectations for really strong calf prices,” he says. “This pushes out that window of our expectation for the period of high prices even further. But at the same time, those cows are worth a lot.”

He tells Brownfield the industry has been looking for any sign of herd expansion. “But with the cow prices that we’re seeing right now, even the cull cow prices we’re seeing right now, I think there could still very well be some people out there that do some more liquidation,” he says.  “Even if they haven’t already. These prices are just so high.” 

The latest Cattle Inventory report showed the bulk of the increased heifer retention occurred in Texas, which added 50,000 heifers for beef cow replacement.  However, the U.S., overall, added just 41,700 heifers.