Beef cattle operations that rely on precipitation to grow forage to feed their herds are particularly vulnerable to drought. When drought conditions diminish forage production and availability, beef cattle producers often must buy supplemental feed and forage or reduce their herd size.
Periods of more intense drought are associated with decreases in the U.S. beef cattle herd size, such as when the national beef cattle herd shrank about 1-2% a year during drought between 2011-15.
This chart also shows that cattle numbers grew in the less intense drought years of 2015-18. Other factors outside of drought conditions also influence changes in the beef cattle herd size, including feed and forage prices, extreme precipitation events, supply chain issues and the natural life cycles of livestock (i.e., the cattle cycle).
To support livestock producers negatively impacted by drought conditions, the USDA administers a range of programs such as the Farm Service Agency’s Livestock Forage Disaster Program (LFP), which provides payments to livestock producers whose forage production is diminished by drought.
LFP eligibility is determined by drought conditions reported by the U.S. Drought Monitor. Many livestock species, ranging from beef cattle to reindeer, are eligible for LFP payments. LFP payment rates are species specific and designed to cover about 60% of monthly feed and forage costs. — USDA Economic Research Service
