Since 2000, the beef cattle herd in Johnson County, Iowa, and the U.S. has steadily shrunk as farmers’ average age increases and weather patterns make it harder to maintain the herd.
However, the herd shrinking is not strictly a bad thing. It is, however, an important marker of where the industry is positioned, according to market experts.
Ryan Drollette, farm management specialist at the Iowa State Extension Office in Johnson County, said drought is an ongoing factor in the herd’s reduction.
Drollette said drought directly reduces the amount of land for raising livestock. Not only is the amount of tenable land reduced, but he also said less forage and feed can be collected and used in livestock farming as a result.
“Feed isn’t as available as it typically is because not only are my pastures not doing well because of drought, but also I’m not producing the amount of hay that I normally would,” he said.
Drollette said these conditions are the main reasons farmers decide to reduce their herd, though other factors make it a longer-term choice.
Similar to other agriculture inputs, long life is a constant consideration. Farm machinery is an example of a large investment, often costing over $300,000 on average. The equipment has an average lifespan of a decade or more.
The same theme is true for larger livestock animals. Drollette said the life span of small animals like poultry could see a turnaround of six months or less, whereas beef cattle can take upwards of two years from conception before it is marketed. This time can create a lag behind making proper decisions, as it becomes a game of prediction.
The long-life problem is a reason why this summer’s rainy conditions will not ultimately allow the herd to see substantial growth, Drollette said.
“There’s that life cycle issue where you need to retain those calves for a year,” he said. “So, instead of the calves being sold in the fall, I have to retain and feed them through winter and get them bred, and then they have another nine months to have their first calf.”
Rick Kasper, a local Johnson County livestock grower and board member of the Johnson County Cattlemen, said one main factor impacting individual farmers’ decisions to keep or reduce their personal cattle herd is age.
According to the U.S. Department of Agriculture, the average age of farm producers has increased from 56.3 to 57.5 years between 2012 and 2017.
An average in the 50s is a high number, and considering the amount of physical work and time required to succeed in agricultural production, Kasper said it is reasonable that farmers eventually decide to cut down on their herds.
“There’s times I drag my feet in the snow and cold, but the animal needs to be taken care of,” Kasper said. “As farmers get older, they aren’t able to do a lot of the work.”
Kasper said the herd is at a 60-year low. Considering the high prices of beef, it is simply too expensive for most farmers to maintain a larger herd.
For reference, Iowa choice steer prices have risen 38 percent since 2000 from $68.41 to $176.58, according to Iowa State Extension.
RELATED: Hog farmers in Johnson County, all of Iowa, see ongoing financial losses
Kasper, though, said he stays in the industry for a reason that retains many farmers: their inherent care for the animals.
“Part of the reason I’m farming is because of the cattle,” he said. “I could make a lot more money doing something else.”
Kelli Wicks, director of governmental relations for the Iowa Cattlemen Association, said all these factors contribute to a strong doubt that the herd will be rebuilt soon.
There are adaptations and improvements for farmers and the industry overall, Wicks said, that mark the herd reduction as more of a market shift instead of an absolute negative.
“Producers are choosing to take older cows out of their herds,” she said. “That means there are less cows in the herd. Feeder cattle markets are higher, so it makes sense for producers to take a heifer calf and put her in the feed yard.”
The other main improvement, she said, is the overall increased efficiency in processing meat from beef cattle.
She said the animals are bigger overall, allowing more meat to be extracted from them, and the meat is of a higher quality. The herd will likely not be fully rebuilt for this reason, but Wicks said this is not a bad thing.
“It’s not necessarily a bad thing either way, whether it is increasing or decreasing,” she said. “We want what is good for consumers and producers, and the farmers are both.”