USDA Has No Plans for Financial Incentives to Rebuild Cattle Herd

Fri, 26 Sep 2025 16:10:55 GMT

Colin Woodall, CEO of the National Cattlemen’s Beef Association (NCBA), says currently USDA does not have plans for an incentive program to help rebuild the beef cow herd.

Woodall joined Farm Journal’s Chip Flory on “AgriTalk” Sept. 25. He was quick to dispel the idea of a herd rebuilding or replacement heifer incentive program.

“There is no financial incentive program,” he says. “Regardless of what you’ve heard, or who you have heard it from, that program does not exist.”

Secretary of Agriculture Brooke Rollins mentioned a potential incentive program in a news release on Sept. 21 .

“In addition, USDA will soon release a significant plan to help rebuild the American cattle supply, incentivizing our great ranchers, and driving a full-scale revitalization of the American beef industry,” the release said.

Woodall explains how quickly the statement in the press release spread, noting it “lit like a grass fire” throughout the cattle industry and markets.

He points out that while Rollins’ team has been in contact with NCBA about potential support for cattle producers, a direct financial incentive is not part of their current plans.

“You can never rule out what the federal government might do,” Woodall says, but also emphasizes that based on current conversations, no immediate program is forthcoming.

Woodall suggests alternatives might include “rolling back some regulations” and making it “easier on cattle producers from a regulatory burden standpoint.”

A concern for Woodall is the potential market impact of an incentive. He says the NCBA team has specifically visited with Rollins’ team about how comments like an incentive program to rebuild the cow herd can have a significant market impact.

He was clear NCBA is not advocating for a financial incentive program, saying: “This is not something that NCBA is pushing for. It’s not something that we are endorsing.”

Thursday, Rollins was in Kansas City at the Ag Outlook Forum hosted by the Agricultural Business Council of Kansas City. During her comments she said because the cattle industry has seen a big drop in producers over the last decade USDA is committed to rebuilding it.

“Low inventory and high demand is not sustainable if we want to feed ourselves,” Rollins says.

She did announce there is no current plan to offer payments to beef producers.

“No plan for direct payments is even under consideration,” she explains. “The government getting involved in markets can easily mess things up.”

The plan will focus more on risk-mitigation tools and hope to attract the new generation of farmers to enter the cattle industry. She says more details will come in mid-October.

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The El Niño Effect: Is El Niño to Blame for the Historic Heat and Drought that Gripped the U.S. in 2023?

Tue, 02 Jan 2024 22:10:01 GMT

2023 was a year full of weather impacts on crops and livestock. From the intense heat in the South to the drought that parked itself across the South and Midwest, USDA meteorologist Brad Rippey says those are the two weather events that stole headlines this past year.

“When we look back at 2023, I’m actually going to break heat and drought into two separate categories,” says Rippey. “Really, when you look at the extreme heat this past year, it was focused across the deep South from Arizona to Florida, and pretty much everywhere in between. And that was certainly a huge weather story that affected parts of the cotton belt.”

From wiping out a large part of the cotton crop in west Texas to hitting sugar cane production in Louisiana, Rippey says nearly the entire deep South saw impacts of the year’s extreme heat.

“Of course, that came with drought in many cases. But when you look at these overall temperatures, the hottest summer on record and a lot of hottest months on record, that was a big story in the deep South,” says Rippey.

While other parts of the U.S. still had drought, in some areas it didn’t pack as big of a punch because it came without the heat. That was the case in much of the Corn Belt. The drought hit last year without the extended intense heat, which had a big impact on crops.

“We were very fortunate, especially in the Corn Belt, that we did not see the combination of extreme heat and drought at the same time. And that actually led to some of those better outcomes than expected for U.S. corn,” explains Rippey.

With USDA currently projecting the 2023 U.S. corn crop to be the largest on record, Rippey says the mild temperatures are what helped save the crops.

“You do see that things actually turned out better in states like Iowa. When you look at the rainfall numbers, they were abysmal, almost as dry as 2012. But then the heat just wasn’t there. And today’s varieties are little bit more tolerant of drought and heat. And the outcome was a little better than we expected,” says Rippey.

It wasn’t all good news. While crop yields turned out better than expected for some farmers, the lack of moisture continued to dwindle grazing conditions and hay stocks in 2023. Those created additional hurdles in rebuilding the shrinking U.S. cattle herd.

So, what was the culprit that caused the intense heat that suffocated the South during the summer months? Rippey says while it’s still being studied, he thinks it’s tied to one major weather event in 2023, in particular.

“I will go out on a limb and say that that may have been an early sneak attack from El Niño ,” says Rippey. “The reason I say that is that because we did have an early onset El Niño. It was pretty much in place by late spring, early summer. It’s pretty consistent with El Niño to have a big ridge of high pressure that comes out of Central America. And at times, we’ve seen it before, that does sometimes extend all the way into the southern tier of the United States.”

He says El Niño can also be tied to the shipping crisis that wreaked havoc on exports in 2023, causing massive shipping delays, as well as forcing shippers to carry lighter loads.

“And certainly what happened in Mexico and parts of Central America, think about the Central American drought that’s causing shipping problems in the Panama Canal. A lot of that, I think, could be tied to the heat in the atmosphere related to the early onset El Niño,” says Rippey.

According to Rippey, the drought in the Midwest can be attributed to the blocking high pressure that wouldn’t budge across Canada this past spring, summer or fall.

“The U.S. Midwest happened to be on the southern end of a lot of that high pressure over Canada. So when we think about that, think about the Canadian wildfires, all the smoke coming down. And we were just on the southern edge of that in the Midwest,” Rippey explains.

He says that, along with Northeasterly winds blocking moisture from the Gulf, is what caused the drought in the Midwest.

“At the same time, high pressure was far enough north that the heat and unusual warmth were actually focused across Canada. So, it wasn’t all that hot on the southern end of the high, but it was dry. And that led to that cool drought in the western Corn Belt,” he adds.

El Niño is still in play, as Rippey says El Niño made a splash once again to close out 2023.

“Now that El Niño has kicked in, it’s a strong event, it could be one of the strongest on record,” says Rippey. “We’re seeing that influence of El Niño starting to grab a hold of the reins of U.S. weather patterns. And that’s pretty normal and certainly should continue into early 2024.”

What’s on tap for 2024? Rippey forecasts the intense El Niño will lead to what he calls “pretty profound” impacts for the rest of the winter, and even into spring.

Herd Size

USDA Has No Plans for Financial Incentives to Rebuild Cattle Herd

The El Niño Effect: Is El Niño to Blame for the Historic Heat and Drought that Gripped the U.S. in 2023?