The July 1 cattle and beef cow inventories were both down 1 percent from a year earlier. Beef cow replacement heifers were down 2 percent. Large numbers of heifers continue to be placed on feed and increasing total beef supplies. Forage Supplies Tightening Beef cattle producers are increasingly uncertain about fall and winter forage supplies. Pasture and range conditions have declined dramatically in most areas since mid summer and many areas in the South and West were already experiencing severe drought conditions.
Water supplies are increasingly a problem in many areas.
Improved moisture conditions in late summer-early fall will be important for improving grazing conditions and establishing small grain pastures. Production of other hays is expected to decline less than 1 percent this year from last year's record. Alfalfa hay production may decline 6 percent from 1999, as dry conditions in the Great Plains have reduced production. The farm price of hay declined in July, but averaged above a year earlier. Prices likely rose in August as drought worsened in many areas.