Description

The cattle industry is riding high on prices—but running low on cows. 
In this episode of the Red Dirt Agronomy Podcast, Dr. Derrell Peel, OSU Extension Livestock Marketing Specialist, joins the team to unpack how drought, market cycles, and global trade have shaped today’s record-setting beef economy. 
Peel explains why herd numbers have fallen to their lowest level in 70 years, and why it could take until the end of the decade to rebuild.

From wheat pasture leases to feedlot margins, the discussion dives deep into how grain, forage, and feed costs influence decisions on the ranch. 
The crew also explores producer strategies in a volatile market—from managing risk to making the call on heifer retention. 
Whether you’re a cow-calf producer, stocker operator, or just watching the beef prices at the grocery store, this episode brings timely insight into the complex world of cattle markets.

Top 10 Takeaways

1. U.S. beef cow herd is at a 70-year low—the tightest supply in generations.
2. Cattle prices are at record highs, and analysts expect peaks through 2027.
3. Drought forced widespread liquidation, reducing herds beyond intended levels.
4. Herd rebuilding will be slow—likely taking the rest of the decade.
5. Feedlots benefit from cheap corn, extending feed periods to offset low supplies.
6. Beef demand remains strong, even with expensive retail prices and alternatives available.
7. Ground beef drives the U.S. beef market, making up nearly half of consumption.
8. Imports of lean beef add value to U.S. cattle by balancing fat and lean ratios.
9. Market volatility is a growing risk, making risk management crucial for producers.
10. New producers should proceed cautiously, leasing land or starting small before buying high-priced cattle.

Timestamps

00:00–04:00 – Opening and crop updates from Dr. Josh Lofton: best summer in years, but grain markets are low.
04:00–10:00 – Wheat planting delays, moisture variability, and forage conditions across Oklahoma.
10:00–12:00 – Crop quality nationwide and tie-in to cattle feed and grain prices.
12:00–14:00 – Introduction of Dr. Derrell Peel, OSU Livestock Marketing Specialist.
14:00–17:00 – Record-high cattle prices amid record-low inventories.
17:00–20:00 – Feedlots thriving on cheap corn; stocker margins tightening.
20:00–24:00 – Drought’s impact on herd liquidation; slow path to rebuilding.
24:00–28:00 – Consumer beef demand remains strong despite high prices.
28:00–32:00 – Myths about government assistance for herd rebuilding.
32:00–37:00 – Drought cycles, herd age, and long-term herd quality.
37:00–42:00 – Political factors, trade issues, and market volatility.
42:00–47:00 – Ground beef’s crucial role and the importance of imports.
47:00–51:00 – Restaurant beef prices and consumer demand resilience.
51:00–53:00 – Practical advice for new landowners and market timing.

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