According to a recent American Farm Bureau Federation column, the U.S.
cattle herd is in its seventh year of contraction and in year 12 of the cattle
cycle. If positive economic returns continue, farmers could be incentivized to
rebuild the nation’s cattle herd, but if prices take a turn for the worse,
contraction could persist. U.S. cattle supplies were at the lowest in 74 years at
86.7 million head in January 2025. This was a result of record-high production
costs, unprofitable prices, and ongoing drought.