Despite the challenges that the weather has presented to the cattle and beef industry, efforts taken by the industry appear to have paid off. With the help of agricultural farm loans, farmers have improved their existing farm buildings and have even expanded their operations in a way to maximize their efficiency.
The Beef and Cattle Industry Is Still Going Strong
Careful planning and smart farming practices have strengthened feedlot sizes despite having significant challenges, such as extreme cold, heavy snow, and flooding.
Improvements in the Industry
Over the past several decades, the beef industry has been faced with uncertainty. There has been a 20% decrease in cow operations over the last 20 years. However, the efforts made by farmers within the industry are slowly starting to turn this around. Spring 2019 saw some of the largest feedlot inventory numbers since 2008, at 11.796 million head. This increase has come despite the difficult farming conditions farmers have endured with intense weather patterns. Furthermore, it’s also taken place in the midst of an overall decline in the number of US farms. However, while herd size has grown, it should be noted that the weather has taken its toll, as carcass weights are lighter. In turn, overall beef production is forecasted to decline. Still, Americans are still reaching for beef at dinnertime, consuming 57.2lbs per capita in 2018.
Small Farms Still Struggle
Even though the industry has seen recent growth as a whole, this success is largely relegated to those farms with herds of 50 or more. Much of the industry is comprised of farms that have large herds, some even numbering over 500.
This is largely due in part to the massive consolidation that we have seen in the industry. Simply in an effort to compete with the larger farms, smaller farmers are seeking out agricultural farm loans to improve their buildings, grow their herds, and expand their land for better foraging.
Take Advantage of the Growth
No matter the size of your herd, there are always ways to improve your operations and take advantage of the growth in the industry. Agricultural farm loans can help you improve your operations to stay competitive in the industry. Contact an AgAmerica loan officer today to discuss what financing options are available and which one works best for you.