Drought Withers Smallest Hay Crop in Century

Drought Withers Smallest Hay Crop in Century

Daniel Acker/Bloomberg

Rising feed costs are prompting a reduction in cattle herds and eroding profit for milk producers. The USDA yesterday forecast retail-meat prices may increase this year as much as 7 percent and dairy products may jump 6 percent, more than the rate of overall food inflation at 3 percent to 4 percent.