February’s 2022 Census of Agriculture from the USDA’s National Agricultural Statistics Service provided some insight into the changing structure of cattle agriculture.
DWINDLING FARMS
Writing for the Livestock Marketing Information Center’s In the Cattle Markets, Matthew Diersen, risk and business management specialist at South Dakota State University, said, in 2022 there were 732,123 US farms with a total inventory of 87,954,742 head of cattle. The number of farms with cattle and the total inventory of cattle were lower than when last measured in 2017.
The Census also provided different breakdowns of cattle on feed that gave insights into feedlots and related trends.
Only 22,613 farms had cattle on feed at the start of 2022, down from 25,776 in 2017, Diersen said. Farms with one to 19 head on feed stayed constant, likely retained ownership for local consumption.
The number of farms with inventory levels of 20 to 999 head, had significant declines, similar to, or driving, the overall decline in farms with cattle on feed.
The largest inventory levels, 1,000 to 2,499 and 2,500 or more, were relatively constant, he said. The largest categories also had increases in the number of cattle on feed compared with 2017. Thus, farms with small feedlots have become less common while the largest feedlots have become larger.
CATTLE ON FEED
The Census breakdown by fed cattle sold reflected a similar contraction, he said. A total of 25,783 farms sold fed cattle in 2022, down from 30,273 in 2017.
Categories with one to 999 head also had fewer farms with fewer aggregate head sold, Diersen said. There were more farms with 1,000 to 2,499 head sold in 2022 than in 2017 and with a greater aggregate number sold.
Farms with the largest sales levels had mixed results that did not change as much as among the other farms, he said. Consistent with the inventory levels, there were fewer smaller feedlots marketing fewer cattle.
PLAINS STATES CHANGES
Spatially, the largest feedlots dominate inventory levels, and changes in Texas, Nebraska and Kansas, Diersen said. While the US saw fewer feedlots with custom feeding, 853 in 2022 versus 1,070 in 2017, the aggregate number sold was higher at 10.1 million head in 2022.
Kansas feedlots had the most head custom fed, followed by Nebraska, then Texas, he said. Iowa led states with 155 farms with custom feeding.
In terms of changes in farms with feedlots, there were relatively more feedlots with more inventory in Washington, Oregon and Idaho compared with 2017, Diersen said. There were relatively fewer feedlots with less inventory in Iowa and Minnesota, and to a lesser extent the neighboring states of Illinois and South Dakota.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.74 per cwt to $192.95, compared with last week’s range of $185.00 to $191.26 per cwt. FOB dressed steers, and heifers went for $290.20 per cwt to $299.32, compared with $287.48 to $294.53.
The USDA choice cutout Thursday was up $0.29 per cwt at $313.73 while select was up $1.02 at $303.73. The choice/select spread narrowed to $10.00 from $10.73 with 90 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $338.11 per cwt, and 50% beef was $107.50.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.65 a bushel over the May corn contract, which settled at $4.40 3/4 a bushel, up $0.01 3/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $251.82 per cwt, up $0.41. This compares with Thursday’s Mar contract settlement of $250.87, up $0.62.