Beef Marketing and Economics

Managing the Cow Herd Through Drought

Drought remains one of the most persistent and difficult challenges facing cattle producers. Managing a cow herd under drought conditions requires balancing short-term survival with long-term productivity.

Strategic Culling During Drought Can Strengthen Ranch Profitability

In today’s cattle market, thoughtful culling decisions can provide a dual benefit, generating immediate income from strong cull cow prices while reducing the number of animals to feed during periods of high feed costs and drought stress.

Livestock

South Dakota is home to a dynamic livestock industry.

Beef

Home to more than 1 million head of cattle, South Dakota’s producers can rely on SDSU Extension for research-based information, best management practices and resources to support healthy and profitable herds.

Calves From Other Sources

A few longer-run trends continue to dominate the supply-side story of cattle in South Dakota. Beef cow numbers continue to decline. The number of feeder cattle outside of feedlots has remained stable.

Feeder Cattle Basis

Feeder cattle basis levels observed during 2025 specific to South Dakota locations were higher than expected throughout 2025 and sharply higher in November and December, perhaps reflecting a tight supply of feeder cattle nationally.

Live Cattle Basis

Futures prices are from organized trades that provide price information for buyers and sellers of commodities. Local cash prices can be compared to futures prices using a basis measure. With an expected basis measure, producers can observe futures prices and infer cash prices.