As we begin to look toward 2022 and what it will bring, and consider all the changes 2021 brought, I question if we should be looking more long term at Nevada livestock production.
In previous issues, I discussed the new COVID-19 “normal” and where we could be headed. While I am still asking this question, what I do know, is that we are facing change. Changes in the pricing at grocery stores and the increasing cost of everyday living is impacting everyone. With these changes, we will also see changes in the Nevada livestock industry.
First, I want to talk numbers. The cattle and calves’ inventory in 2012 was 420,322 head and increased to 476,858 head in the 2017 U.S. Agriculture Census. The inventory in January 2021 to report the 2020 inventory was 470,000 head. The Ag Census will be releasing its livestock survey in Nevada in January 2022 to get our 2021 numbers. It is expected that livestock numbers will be lower due to the drought impacting the Western states.
Second, I want to talk about the number of livestock farms in Nevada and acres grazed. The number of farms in 2012 was 1,822 and decreased to 1,621 in 2017. The State Agriculture Overview (NASS, 2021) did not report livestock farms by themselves, but reported overall farm operations. Nevada Department of Agriculture surveyed 251 livestock operations in their Livestock Industry Survey in 2021. There were 4,690,824 acres of federal allotment land grazed, and 258,159 of private acres grazed. The average of private land grazed was 887 acres, and the average of federal allotment land grazed was 16,231 acres (NDA, 2021).
One important point to make is that while the number of farms is low compared to the rest of the United States, the number of acres managed under these operations is not. Historically, Nevada livestock production has led the state in agricultural cash receipts and has been the states’ leading agricultural commodity. It is also noted that livestock production efficiencies have increased. There are perceptions and individual worldviews portrayed in these numbers as we begin to discuss the environments that faced producers in 2021, what they will be facing in 2022, and what the future of Nevada livestock production is.
Drought has impacted operations throughout the west. Most operations culled cows at the very least and sold off livestock based on the feed allocations they had. Nevada will most likely see a reduction in livestock inventory due to the drought. Drought is not over just because of our most recent storms. We will have to continue to watch the weather and drought forecasting. One must also understand the differences between reported reservoir storage and when and how often moisture hits the rangeland. This will have significant impacts on AUM designations.
My gut feeling right now, receiving these large storms, is that we may have another atmospheric river event (like October 2021) on top of the snowpack and we will be flooding. Honestly, after the year we have had I don’t know whether a flood would be good or bad as there are pros and cons to each.
Economists were estimating that there would be a good heifer market in future years. As cows were liquidated, many of these ranchers will take the tax advantage of using the income in future years to buy back cattle, if they did not need the cash for feed resources. We will see how and even if this impacts Nevada in 2022. Overall export markets are strong but are still impacted by COVID conditions. Most expect a stabilized market in 2022, but producers are still facing increased production costs.
While I continue to talk about drought and economics, these conditions are not new to Nevada Livestock producers. Growing up in a farming and ranching operation in Nevada, I don’t remember agricultural production being any different.
A producer watches the weather, watches the markets, and pays attention to expenses. There are years that are tough and every 10 years you may make really good money. It is the lifestyle that we all cherish and are proud of. The biggest challenge, I believe in Nevada and for the entire U.S., is who is going to continue this lifestyle.
It is really tough to impossible for a young person to go into this business without help. As we look to the future and the new year, the next step for all of us is empowering the next generation to enter and/or succeed in the business.
By Staci Emmn | Editorial