The USDA Cattle Inventory report showed a 4% reduction in beef cows, a 6% decrease in heifers held back for retention, and a 5% reduction in heifers expected to calve this year (USDA-NASS 2023). Feeder cattle supplies will be reduced nationally in 2023. Continued liquidation in 2023 will depend on the profit margins producers expect to receive. Higher prices for feeder cattle are expected but higher feed costs, especially hay, and other inputs are limiting the profit potential.
Some producers have already run out of hay as heavy snow has limited winter grazing and persistent drought…
