Drought, recession scorch Texas cattle ranchers

By Ed Stoddard and Jessica Rinaldi

PANDORA, Texas (Reuters) - Frates Seeligson recalls when his ranch last saw rain: September of last year.

That was around the time he took on an extra 200 cows to help a farmer whose fields were ravaged by Hurricane Ike.

Talk about a perfect storm. The worst drought on record in this parched part of south-central Texas means his withered land can hardly support his own dwindling herds.

Meanwhile, the worsening recession means that low-priced hamburger meat is replacing high-priced steak on American shopping lists, driving down beef prices.

"These cows aren't in good shape," Seeligson said recently as he scattered protein cubes or pellets for some of the cattle in his herd at the crack of dawn on a mist-shrouded morning.

The feed is meant to be supplemental but the grazing is so poor that it is now his herd's main source of nutrition.

"Look at this black cow; you can see its hip bones," Seeligson said as the cattle crowded around his pick-up truck looking for their feed.

Some of the calves have distended bellies and many of the cows look downright scrawny, with the outlines of ribs and backbones showing clearly through their hides. It is a sight that will break the heart of the hardest Texas cattleman.

Seeligson's woes are felt by cattle ranchers across the country as the recession bites, with the U.S. cattle herd at its lowest level in 50 years and the calf herd at a 57-year bottom. Operators of feedlots that fatten up cattle for steaks with grains and other nutrients are also suffering.

But the situation is particularly dire on the ranch lands around San Antonio and the Texas capital Austin.

According to the U.S. Drought Monitor, drought conditions there are now listed as "exceptional" -- its harshest rating -- highlighted on the map with a dark blood-red color.

It is the only part of the country that currently has such a rating, making it even more severe than California, where a drought emergency has been declared. Seeligson's two ranches just to the east of San Antonio are both in this red zone.

The National Weather Service says the area has just been through its driest 18-month period from September of 2007 to February 2009, and the short-term outlook is bleak.

Texas Governor Rick Perry asked for disaster relief assistance on Friday for drought-stricken farmers across the state.

"The forecast for the next three months is for below average rainfall for that area," said Victor Murphy, the Climate Service Program Manager at the Fort Worth, Texas-based Southern Region Headquarters of the National Weather Service.