Cattle prices reach all-time high amid drought conditions

FARGO — From steer calves to feeder steers, cattle prices are shooting up from a recent plateau.

Tim Petry, an extension livestock economist with North Dakota State University, said prices are at around $275 per 100 pounds — at times, getting close to $300. That is just past the previous record in 2014, which was slightly more than $250 per 100 pounds.

“Yogi Berra always said, ‘It’s déjà vu all over again,’ and that’s exactly what’s happening in the cattle business,” Petry said.

Leading up to that previous 2014 record were four consecutive years of drought. The same thing is happening now, with a few consecutive years of drought patches. Petry said this is the biggest factor playing into the current livestock price spike.

“Half of our beef cow herd is still in drought, which means it will be more difficult to increase the beef cow herd,” he said.

For North Dakota, he said ranchers are hurting for moisture in the northern half of the state and parts of the southeast. Lowering prices would require consistent years of good rain. No matter what, he said the price could go even higher next year.

“It’s a good thing for selling cattle,” he said. “On the other hand, for those affected by drought that have had to cut the herds back, they have fewer to sell, so it’s kind of a catch-22 there.”

Petry said for people buying meat, prices on store shelves are slower to change. He expects beef prices to progressively increase over time.

North Dakota is the ninth largest state for beef cattle.