USDA Expects Surge In 2021 Beef Production

The USDA says they expect a "short term" surge in beef production in 2021. Outlook Board Chairman, Mark Jekanowski, says the forecast for beef output by 260 million pound up to 27.9 billion. What's happening is that more cattle are being pulled in a hurry in to and out of feedlots this year.

"Its because of poor forage contusions and tight hay supplies and then there's also incentive to get them out of the feedlot quick because of the high feed costs."

So cattle that might have been run through the system next year are going through this year.

"That's why for 2022 we're showing a little year over year decline on beef production."

A decline this year of only about 2% but it would be the first yearly drop in beef output since 2015. USDA said average steer prices could rise next year by about 4.5%; feed costs, though to go up 20%-30%.

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