According to a recent American Farm Bureau
Federation Market Intel, the U.S. cattle herd is in its seventh year
of contraction and in year 12 of the cattle cycle. If positive eco
nomic 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.