Some area cattle producers will be making as much as $600 or $700 profit per calf this year, Petry said.

A few years ago, many producers were making less than $100 profit per calf, according to numbers from the North Dakota Farm Business Management program.

A key question is how soon and how much U.S. cattle producers will rebuild their herds. More cattle will increase beef supplies, which will work against cattle prices.

Rebuilding is beginning in the Upper Midwest, but ongoing drought in Texas and California limits the ability of beef producers there to increase their herds, Petry said.

There are indications that cattle numbers in Texas, the nation’s leading cattle-producing state, will never return to what they once were, he said.

On the other hand, the cattle industry is increasingly efficient, with one animal producing more beef. So, the U.S. cattle herd can be smaller than it once was and still produce enough beef to meet demand, he said.

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