Farmers are trying to expand their herds due to high prices for beef

• Farmers are facing difficulties in expanding their herds due to high expenses.
• The drought and rising land prices complicate beef production.
• Consumers continue to buy beef, regardless of high prices.

At the same time, as beef prices reach record highs, farmers in the U.S., particularly in South Dakota, are seeking opportunities to expand their herds. However, this task is challenging.

Kelly Williams and her husband Tate manage nearly 70 head of cattle in South Dakota. Their ranch has suffered from drought that has lasted several years, as a result of which they cannot make the necessary financial investments to increase production.

Currently, the U.S. is experiencing the lowest herd level since 1973, while demand for beef remains high. According to economist Michael Swanson, it would take three years to increase the herd, as it includes the gestation period and the raising of calves.

Not long ago, in their area, there was a rainy spell, but farmers are still feeling the effects of previous droughts. The executive director of the National Cattlemen's Beef Association, Colin Woodall, noted that farmers are still cautious, as they do not know if there will be enough moisture in the future.

Retail beef prices have risen to $6.12 per pound in June, and prices for steak have also increased. However, the total number of cattle in the U.S. has decreased to 94.2 million, which is 9 million fewer than in 2019.

Consumers are ready to pay for beef. According to recent studies, beef remains a popular type of meat among Americans.

Farmers, like the Williams, aim to expand their ranches, but they require stability in natural conditions and on the market.

Tags: USA/Economy