The long term drought and recent wildfires in Texas have created serious problems for Texas ranchers and cattlemen. The drought and wildfires have dried up local pastures where cows graze and have created hay shortages across the state. As a result, many cattlemen can no longer afford to maintain their herds, and are selling them at auction (usually to out of state buyers) or are sending them to feedhouses for slaughter. While less severe, North Carolina ranchers also faced a significant drought this summer. We spoke to Carrie Wilkerson of Wilkerson Farms to see how the drought affected them, and to ask how the conditions in Texas may affect us in North Carolina down the line.
Just like the Texas drought, the big problem that faced local ranchers this summer was a loss in production on grasslands. Carrie said that this was the first year they have ever had to feed their cows hay during the summer months. The grass simply wasn't growing in the pasture, so they had to supplement dried grasses (hay) to keep the cows healthy and developing. Local ranchers generally stock hay to use during the winter, when grass grows very slowly, but are not accustomed to needing it during the summer. When they do need hay in the summer, it means they either have to cultivate more (which costs time and resources), or they have to purchase it from somebody else (which costs money), to ensure they have enough for the winter. Fortunately, by August rainfall increased, and Carrie says they no longer need dip into their hay reserves.
Another expected outcome of the cattle selloff in Texas is an increase in national beef prices a year or so from now, when cattle herds will be significantly smaller, creating a much smaller supply of beef for processing. We asked Carrie how they expect the potential cattle shortage and increase in national beef prices to affect them locally. She said that they do not feel any direct impacts from national shortages and surpluses. Their pricing is simply based on their local costs. There is potential for an increase in hay costs, as a result of increased national demand. However, barring another drought, hay production should normalize by the time cattle supply declines. There may even be national surpluses on hay by next year, as a result fewer cattle. Carrie said they are also at the mercy of local meat processors for processing costs which have been increasing recently. However, Carrie says that the national pricing and landscape is not something that affects them. Their costs are local, and their market is local, so national factors affecting beef supply, good or bad, should not have much of an effect on them.
Photo by:
Wilkerson Farms 
