State of the Beef Industry
Risk management isn’t about eliminating all risk but strategically navigating market uncertainties.
Easy access and flexibility are benefits to livestock auction markets. State of the Beef Industry survey respondents share how they are marketing cattle today.
Beef producers are embracing new technology and using data to make purchasing decisions.
With 80% of producers reporting they have experienced drought in the past few years, lack of rain and grass continue to be a driving factor in the beef industry. Colorado’s LeValley Ranch has experienced four droughts since 2000.
Beef producers and stakeholders confirm their optimism in 2025, but they are quick to admit the threats and challenges facing the industry’s continued profitability.
Rabobank expects the Jan. 1, 2026, beef cow inventory to be 28 million head — up 200,000 head from the prior year. A second increase of less than 500,000 head is likely over the following year.
Analysts attribute increased consumer spending on beef to three factors.
State of the Beef Industry survey participants and industry leaders share what’s impacting the growth of the nation’s cow herd, beef supply and demand.
Results from Farm Journal’s 2025 State of the Beef Industry Survey finds 72% of producers are optimistic about the future, 73% report profitability the past five years and 57% will add a member to their operation in the next five years.
The 2025 State of the Beef Industry Report summarizes optimism prevails yet challenges persist in today’s beef industry.
There are challenges, no doubt, but 59% of producers plan to add a family member to their operation and 51% indicate they will increase their herd size in the next five years.
While U.S. beef cow inventories stabilize in 2024, the industry could experience a longer transition period as unprecedented risk mutes profit signals that normally kick-start herd rebuilding efforts.
Based on the Drovers State of the Industry survey, the majority of producers agree or strongly agree that environmental impact, animal welfare, sustainable practices and desire of high-quality beef will be increasingly important.
America’s beef cattle inventory continues to tighten, pushing market prices to record levels. Under normal conditions, that would lead to anticipation about building herds again. However, this cycle is anything but typical.
Based on numerous data sets, cattle inventories will continue to tighten, but with mixed signs of stabilization. Expansion and retention patterns will be monitored this fall with confirmation in January 2025’s inventory report.
Both live and feeder cattle futures hit record highs this week as a function of historically tight supplies. Yet, the question remains—how long could these strong prices last?
Could the optimism in the cattle industry be fueled by profitability? With cattle prices reaching record highs, it’s important to consider whether these high prices are equating to black ink on the balance sheet.
Implications of historic drought and massive herd liquidation will likely continue to be uncovered over the next several months, yet cattle producers remain optimisic about the future of the industry.
Gains to quality are documented along with areas for improvement identified.
Beef-on-dairy is arguably the most significant advancement for the U.S. beef industry in a generation, and no current review of the State of the Beef Industry would be complete without examining its impact.
The state of the U.S. beef industry in 2023 is strong. Drought-induced herd liquidation impacted the supply side, but an even greater impact occurred on the demand side.
The smallest herd in 60 years creates a historic market for cattle and calves.
The discussion below highlights several items because of their potential influence on the industry over the long run. They’re addressed in no particular order; each one is independently important.
America’s beef producers are optimistic about the future, and the state of today’s industry is strong. Those are two highlights from the 2023 Drovers State of the Industry survey and reported in this special section.