Cattle Prices At Record High While Inventory Is Lowest Since 1951

The United States Department of Agriculture said cattle prices are at a record high, while the United States Department of Agriculture reported inventory is the lowest it has been since 1951.

Calf prices in Oklahoma have increased by over 61% in the last two years.

When Mayor Johnny Kelley is not working on his duties for the city of Barnsdall or responding to fire calls in Bartlesville, he’s in his happy place tending to his 700 head of cattle.

“You definitely have to love this business to be in it,” said Kelley.

This is the lowest number of cattle he has had in a long time.

“It’s really pretty scary because of what it costs to buy a cow or a heifer to replace cattle right now and what they’re worth,” said Kelley.

Kelley said more ranchers are selling off their cattle because of the higher cost of feed, medicines, workers, and everything in between.

All that is leading to historic high beef prices.

“I believe they’re finally catching up to where they need to be so that a man can afford to do this,” said Kelley. “I work several other jobs to support my ranching habits.”

The USDA’s latest count of cattle heads in the United States is about 28 million, which is the lowest since 1951.

Derrel Peel, an Agricultural Economics Professor at Oklahoma State, said the ongoing drought has led to a shrinking supply, which will impact prices and possibly jobs.

“As these animals work their way through the system and go through the processing sector, those sectors are struggling right now with a lack of volume,” said Peel.

For Kelley, who had a rough 2024 dealing with two tornadoes in his hometown, there is a glimmer of hope through a calf he has named Tornado.

The calf was just a week old when his mom died in the May 6th tornado.

“He had some injuries, but he’s alive, and I’ve got more milk replacement in him than he’ll probably be worth, but he’s alive and he’ll make a good lead steer someday,” said Kelley.

Despite an unknown future for the cattle industry, the lifelong rancher said he is in it for the long ride.

“You’ve got to feed people,” said Kelley. “People have got to eat.” 

Peel said another factor adding to the cattle shortage is Mexico detecting screwworm flies in its cattle in November, so the U.S. temporarily suspended imports of Mexican cattle, but imports could resume later this month.

Ag experts said if the United States could add another four million cattle head, prices could drop, but prices are expected to be high through 2025 and possibly 2026.