Grains Oilseeds

[KastelCo]

WASHINGTON: It's not just Argentina that is sacrificing its beef industry on the grain alter, the USA is doing the same thing.

On January 1, 2008, the USDA said the American beef herd was down 200,000 head from a year ago to 32.6 million head.

That is the smallest cowherd in 60 years.

American ranchers continue to slaughter cows at an astounding rate as pasture land is plowed up to grow grain and oilseed crops.

So far in 2008, total cow slaughter is up 16 percent over last year and 24 percent over the five-year average.

In a normal 10 year cattle cycle, 2007 should have been the peak year in numbers but turned out to actually be below the previous cycles low set in 2004.

This cow decline has been in the face of what has been historically excellent profits for cow-calf producers.

Drought, producer demographics and expensive corn appear to have trumped what had been one of American agricultures most reliable economic cycles.

- The Stockman Grassfarmer, April 2008

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