Will Cattle Herd Rebuilding Take Place in 2025?

The drought has caused lower grain prices, raising a question on whether or not cattle herds will be rebuilt for 2025 AgMarket.net. Co-founder, Matt Bennett, weighs in.

“You look at the Drought Monitor and the drought's not over. I mean, as soon as we thought it was over, this summer, all of a sudden, you look at the National Drought Monitor right now, and there's a lot of collar on it. Again, pastures are not healed up, so can you keep them and put them back out in the pasture? Well, you can, if you don't have the pasture. First of all, second of all, you know, a buyer comes around 400-pounders. You know, had brought $4. I heard that 400-pounders were bringing $1,700 to $1,750 a piece. And so if someone comes around and says, Hey, you know, I'll take that heifer off your hands. You don't have a whole lot invested in her just yet, and I'll give you $1,700, I mean, what else as a rancher, can you ask for.”

Even with cheap feed costs, selling may not be the best option, according to Bennett.

“We really need to see the weather change. I mean, we've got to get to the point where a lot of these pastures are healed up. People feel confident in that, and maybe you start retaining I do think that the rancher has healed up quite a bit in the last couple years, thank goodness, because I know these guys have had a tough time, but I do think that you'd be very, a very good business person to at least lock a floor in that doesn't mean you're bearish. It just means you're smart.”

AgMarket.net Co-Founder, Matt Bennett.