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FARM BUREAU: UNDERSTANDING THE BEEF CYCLE


By Bernt Nelson and Cameron Castillo, American Farm Bureau Federation

Key Takeaways

The beef production cycle is a long-term process that takes several years to complete.

Cattle farmers' daily decisions affect the beef supply and prices for years to come.

America's beef cattle herd is at its lowest level since the 1970s, reflecting the years of depressed prices, high input costs and persistent drought conditions ranchers have faced.

Americans care about where their food comes from, how it's raised and what it costs. That's especially true today as beef prices remain near record highs.

What many people don't realize is that beef on the grocery store shelves is the result of a production process that takes several years to complete. Along the way, farmers and ranchers are making important decisions that affect how much beef is available, which is a big factor in what consumers pay at the store.

Today's higher beef prices are the result of challenges that have been building for years, including drought, rising production costs, and the smallest U.S. beef cow herd in more than five decades. Because cattle take time to raise, rebuilding the nation's beef supply cannot happen overnight. This means that current events that factor into the decisions farmers and ranchers make today can have impacts on beef prices in the future.

To better understand why cattle herd numbers matter and how they affect grocery store prices, as well as how policy decisions can affect future beef supplies, it's helpful to understand the entire production cycle.

Beef Production Cycle

The process begins when a cow gives birth to a calf. For the first several months of its life, the calf remains with its mother, nursing and grazing while receiving care from farmers. The calf is typically weaned (removed from the care of its mother) at 6 to 10 months of age, when it weighs between 500 and 700 pounds. At this stage, farmers have a big decision to make; they can either retain the calf for breeding or sell it to begin the beef production process. Approximately 70% of the cattle growers have calve in the spring, which means they are marketed in the fall.


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