The dry conditions last fall have made farmers and ranchers leery of a future drought. Sterling Marketing Group President John Nalivka says livestock producers are still cautious about restocking and herd rebuilding might not happen in 2023. “The problem is even with drought relief, that’s not long-term conditions for supporting economics for herd rebuilding.” Grazing resources could get slim if pastures need a rest year after hard grazing. Hay prices have been very high for the past two years due to high demand and low supply. High costs have made it particularly hard for cattle producers to depend on purchased forage. “If you feed hay for too long, the profitability of that operation could be significantly impacted.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.