July Sees Smallest U.S. Cattle Herd Since 1973

As of July 1, there were roughly 94.2 million cattle and calves in the United States. According to USDA records, that constitutes the smallest herd on record since 1973.

A number of factors in recent years contributed to the reduced numbers, including high interest rates, cost of feed and drought in much of the country. Some analysts point toward the number of retained heifers in feedlots as an indication that ranchers are preparing to grow their herds. Others, like Oklahoma State University Professor of Agricultural Economics Derrell Peel, believe numbers are more likely working toward stability.

For consumers, the smaller herd means beef prices remain high. However, conditions in the United States are not the only factors impacting beef prices. The U.S. has been restricting animal imports from Mexico since November 2024 in the hopes of protecting U.S. cattle from New World Screwworm (NWS). Myra P. Saefong, a MarketWatch reporter, wrote that the continued restrictions could affect consumer beef prices into next year.

Read more on the cattle report here.