Content by Matthew Diersen

Group of beef cattle in a feedlot with hay bales stacked in the background.

Cow and Heifer Values

The mid-year Cattle inventory report from NASS continues to reflect the difficulty U.S. producers face when trying to expand beef operations. While the total cattle inventory was higher compared to July 1, 2025, the number of beef cows was lower and not offset by the small, absolute level of beef replacement heifers.

Aerial view of the SDSU Southeast Research Farm.

Endorsement Trends in South Dakota Crop Insurance

Recently there has been an increase in the use of endorsements on corn crop insurance policies. The dominant base- or farm-level coverage remains Revenue Protection. High crop margins corresponded with an increased use of margin-related endorsements. Large subsidy increases have encouraged the purchase of other endorsements.

A green cut alfalfa field dries in windrows as the sun sets.

Forage Production Insurance: Important Changes Ahead for 2027

Due to persistent drought conditions and volatile markets, Forage Production Insurance has become an important risk management tool for forage producers who rely on alfalfa and other perennial forages.

Black beef cattle in a cattle facility.

Cattle Weights Responding to Markets

Recent values reported by the USDA National Agricultural Statistics Service indicate another increase in the value of cattle production at the state level for the year. The high price levels are also strong incentives to deliver pounds and calves to the market.

Oats growing in a South Dakota field in late July.

Annual Forage Rainfall Index Insurance: A Risk Management Tool for South Dakota Producers

Drought remains a recurring challenge for South Dakota livestock and forage producers. Annual Forage Rainfall Index insurance is one tool that may help reduce the financial risk associated with below-average precipitation.

Row of black cattle lined up at a feed bunk.

Historic South Dakota Cattle Basis

Effective marketing and risk management techniques rely on benchmarks. Basis, the difference between a cash price and a futures price, is one such benchmark for those in the cattle industry.

Black cattle grazing in a pasture

Conservation, Grazing, and Forage Situation

This report summarizes recent trends in the Conservation Reserve Program (CRP), harvested hay acreage, and grazing capacity in the United States and South Dakota. The purpose is to give a current picture of conservation enrollment and forage supply.

Small group of cattle at the SDSU Cow-Calf Education and Research Facility.

Basis for Lighter-Weight Feeder Cattle

With higher overall price levels, the price differences across cattle of different weights have also increased. As a result, producers may want to revisit some pricing rules reflected in price slides and in basis levels for lighter-weight feeder cattle.

Calves at sunrise at the SDSU Cow-Calf Education and Research Facility.

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.

Black beef cattle at a feedbunk at an SDSU research facility.

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.