U.S. beef producers can expect another year of record high prices for calves in 2013. But any chances of expansion for the national cow herd in 2013 will rest entirely on Mother Nature.

The sluggish pace of recovery in the U.S. economy, with limited growth in employment and disposable income, may present a sizeable obstacle for beef producers marketing their product for American consumers in 2013. Mike Murphy, a market analyst for CattleFax, told producers at the National Cattlemen’s Beef Association Industry Convention in Tampa, Florida, that gross domestic product growth still lacks the kind of momentum to spark consumers into more beef consumption.

The two-year drought inflicted upon ranchers and farmers is only the beginning of crop production challenges the beef industry faces going into 2013. Energy prices, ethanol production demands and worldwide rationing of corn and grain will also contribute to the lowest stocks-to-use measure seen in years, said CattleFax analyst Chad Spearman. Speaking at the National Cattlemen’s Beef Association Industry Convention in Tampa, Florida, on February 8, Spearman identified several factors causing stocks of corn and soybeans in the U.S. to drop and influence the higher prices.

If the Henry C. Gardiner Scholarships applicants are indicative of the beef industry leadership in the future, we are in good hands. Twenty-one applicants were received and six finalists were interviewed for 2013-2014 scholarships. Tyler Schultz of Haviland, Kansas, and Jared Wynn of Ashland, Ohio, have been awarded Henry C. Gardiner Scholarships for 2013-2014.