Dive Summary:

• A new USDA report signals that the U.S. cattle herd has reached its lowest point since 1962 on the heals of serious drought and price increases for feed.
• Specifically, the herd is down 3% from last year and 11% since 2007.  The severe and ongoing drought has made it very difficult, especially for the ranches of the southern plains, as feed crops have been decimated.
• This has created a clear effect on the consumer's pocketbook, with beef prices already high and expected to continue to rise.

From the article:

"The 2012 drought was the primary driver of the decrease last year as it destroyed pastures and forage supplies and catapulted corn, sorghum and soybean meal prices," Hurt said. "The impacts were largest for producers in the Southern Plains where beef cow numbers dropped by 9% last year, and in the Central Plains where numbers were down 6%," said Purdue Extension Agricultural Economist Chris Hurt.