Expanding Drought in U.S. Signals Another Herd Reduction

WASHINGTON, DC – The U.S. cattle herd experienced a drawdown in live animals about ten years ago on the heels of a severe drought across the Southwest. Today, the industry is looking at a similar situation as 85 percent of producers in the Northern High Plains and Western U.S. are preparing to sell off portions of the herd.

According to a survey from the American Farm Bureau Federation (AFBF), 87 percent of those surveyed claim an increase in feed costs associated with drought, and 77 percent have already reduced their acreage as the dry conditions expand across 12 western states.

The effects are not limited to livestock, as AFBF reports producers tilling under or destroying crops to deal with any potential future losses in production.

AFBF Associate Economist Danny Munch explains that in California, “some producers were bulldozing almond trees” as in addition to drought many producers in the Golden State are dealing with water shortages as well.

Munch adds that “86 percent of respondents said that they’ve experienced reduced water deliveries with most of that being very prevalent across the board. And that really links back to such a low amount of water in all of the reservoirs that farmers and ranchers rely on out west.”
(SOURCE: All Ag News)