Analysts report the return of drought conditions in U.S. cattle-producing areas is delaying herd expansion plans. There is a demand as cattle numbers have shrunk to the lowest levels in seven decades. This places pressure on meatpackers and drives up beef prices for consumers.

The drought worsened over the last two months. The U.S. Drought Monitor reports that 62% of cattle were in areas suffering from drought at the end of October. This is the most since December 2022.

Despite recent rains across portions of the plains, more than half of cattle remain in drought zones. This is an increase from less than 20% for most of the year. Pastures drying up produce tough decisions for ranchers who want to expand the herd. Heifers and young calves are being sent to feedlots sooner than normal.

Oklahoma State University Agricultural Economist Derrell Peel said since fewer heifers are being held back on farms, herd expansion could take years. Early deliveries of heifers to feedlots will boost production in the first half of 2025, but this will result in an even smaller supply in the second half.

Read more about how the U.S. drought is delaying cattle herd expansion here.