Recent estimates by LSU AG Center experts find record-breaking temperatures and drought conditions are likely to lead to $135 million to $290 million in economic loss of cattle and crops. LSU AG Center Economist Kurt Guidry says beef cattle producers have only two and a half to three acres of land to feed cattle.
“Right now based on some estimates from our agents out in the parishes, that three acres need to be close to five to eight acres in some cases up to 10 acres per cow based on the forage availability.”
Reduced hay production caused by lack of rain is expected to cost cattle raisers $62 million to $108 million. Guidry says producers have to reduce herd size which leads to future losses in revenue.
“What we had a lot of producers do was try to wean calves early had a revenue impact because of that. And then because we continue to not get any rain, they’re forced to not only sell the calves early but turn around and sell the moms of those cows as well.”
Feeder steer prices are expected to rise by 13 percent next year, according to U-S Department of Agriculture Economic Research Service. Guidry says it remains to be seen if this will impact consumers at the supermarket.
“I think what it says is that the high beef prices that we do see, they’re going to be around a couple of more years because it’s going to take a couple of years to build those cattle numbers back up and we’ll see beef conducive to lower prices.”
The full effect of the drought on cotton, soybeans, and sugarcane will not be known until after harvest.
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