Skyrocketing Beef Prices Drive Aging Ranchers to Sell Their Herds: What This Means for the Industry

A Colorado ranching family has made a big move by purchasing the Muleshoe Ranch near Torrington, Wyoming for $6.7 million. This property has 4,300 acres of land, equipped with three irrigation pivots and strong water rights.

The previous owner, now nearing retirement, decided to sell. Cattle ranching faces many challenges today. Cory Clark, a ranch real estate broker, mentioned that finding help on a ranch is tougher than ever. “It seems like it’s harder to find ranch help,” he said. On top of that, beef prices are hitting record highs, prompting the seller to liquidate his herd of 350 cows and exit the business completely.

According to the U.S. Bureau of Labor Statistics, prices for raw beef steaks skyrocketed over the decades, increasing by more than 198% since 1997. For example, a prime cut that cost $20 in 1997 now costs nearly $60.

The buyers from Colorado were motivated by options in Wyoming that don’t exist back home, especially with increasing development along the Front Range. You might think high beef prices would lead to more ranch sales, but that’s not the full story. “You would think that, but it’s actually the opposite,” Clark explained. Some ranchers plan to hold onto their cattle and enjoy the high prices for a while longer.

This is leading to a tight market for ranch properties across Wyoming and Montana. “I’ve been doing this since 1996, and I can say there’s less ranch inventory than ever,” Clark noted. For instance, a ranch in Montana is listed for $11.7 million, which is quite remote but could be valuable due to steady demand for beef.

Industry experts are noting a major shift in cattle ownership. Many ranchers are selling off herds while keeping their land. Lane Nordlund, host of the LaneCast Ag Podcast, pointed out the lure of cashing out at high market prices. Don Close, a senior animal protein analyst, suggested we’re witnessing a “changing of the guard” when it comes to cattle ownership, with many older producers nearing retirement.

Mark Eisele, president of the National Cattlemen’s Beef Association, echoed this sentiment. He highlighted that many ranchers are in their 50s and 60s, and decisions about handing over operations to the next generation are complex. He also mentioned that estate tax relief has aided some families in the transition.

Eisele indicated that beef prices have benefited from quality improvements over the years and a strong international demand, particularly since COVID-19. More people are cooking at home, boosting beef’s market. He noted, “Our beef is considered the gold standard,” partly due to favorable trade policies.

However, many ranchers face rising costs in other areas, such as fuel and feed. “In our business, we lose money three to five years in a row, then have a couple of good years,” Eisele said. There’s uncertainty about consumer price tolerance; will people stop buying beef if prices remain high? While some are opting for cheaper cuts, the overall demand remains strong.

Rather than leaving the industry entirely, many ranchers are adapting. Some are selling their herds but keeping their land to lease grazing rights. They find this approach allows them to stay connected to their ranches without the heavy workload. Dennis Sun, past president of the Wyoming Stock Growers Association, noted many ranchers are selling older cows instead of trying to keep them for another year.

As for consumers hoping for lower meat prices, Sun cautioned, “Beef’s not coming down this year.”

This evolving landscape in ranching indicates that while some producers are leaving, many are finding creative ways to adjust to market pressures, ensuring beef remains a staple in American homes.

For more on current beef market trends, check out the U.S. Bureau of Labor Statistics.

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