There were 86.2 million head of cattle and calves on U.S. farms as of January 1, according to the twice-yearly cattle inventory report published by USDA’s National Agricultural Statistics Service (NASS). That’s the lowest level since 1951. Other key findings in the report saw that of the 86.2 million head inventory, all cows and heifers that have calved totaled 37.2 million. There are 27.6 million beef cows as of January 1, down 1% from last year at the same time.
The number of milk cows increased to 9.57 million. The calf crop was estimated at 32.9 million head, down 2% from previous year. All cattle on feed were at 13.8 million head, down 3% from January 1, 2025. NASS surveyed approximately 35,000 operators across the nation during the first half of January.
EDITOR’S TAKE:
Yes, we have mentioned this topic a number of times in the past few months. Why? Because it is a key factor in determining what happens to food costs/inflation. The Trump Administration has cast a rather bright light on beef prices in the past several months, making this an even bigger deal than simply what’s happening to beef supply. This topic is also important to consumers, restaurants and commercial food facilities. Higher prices will eventually drive them to seek lower cost substitutes, such as pork or chicken. When that happens on a large enough scale, prices for those commodities will likely rise as well. This is a tough dilemma for anyone purchasing meat. The other challenge is that it will take at least a couple of years to increase domestic supplies, if not longer. Thus, the problem is not likely to resolve itself anytime soon.
The good news is that livestock producers are doing very well financially. Keeping them at the top of your ag customer prospect list is a very good move. With tax season upon us, they will be looking for ways to reduce their tax burden. You might want to interest them in an AGwagon®. Also, be sure to remind them that the purchase will qualify for 100% depreciation in the first year, thus, giving them a huge tax break!
