The drop – from 89.3 million to 87.7 million head – signifies the lowest Jan. 1 inventory count since 1951 when the U.S. had 82.1 million cattle. This year marks the seventh consecutive year of inventory declines for U.S. cattle and calves.

The beef cow inventory, of cows and heifers that had beef calves, stands at just over 29 million head, a 1 percent drop from 29.3 million in 2013. The total of beef and milk cows in the U.S. dropped from 38.5 million to 38.2 million head.

Major cattle-producing states showing reductions in their beef cow herds included Texas with a 2 percent decline, Iowa (4 percent), Colorado (1 percent), South Dakota (3 percent), Florida (3 percent), Montana (2 percent), Nebraska (1 percent). Cattle states showing a recovery in beef cow numbers included Kansas (up 6 percent), Missouri (3 percent), Oklahoma (3 percent), North Dakota (2 percent) and Arkansas (3 percent).

Other data from Friday's report showed the cattle on feed numbers at 12.7 million, 5 percent lower from 2013 when the total was 13.3 million. The calf crop for 2013 came in at 33.9 million head, a small drop of 1 percent from a year ago. USDA said that makes it the smallest calf crop since 1949, when 33.7 million calves were born. Calves born during the first half of 2013 are estimated at 24.7 million down 1 percent from 2012.

The combined total of calves under 500 pounds, and other heifers and steers over 500 pounds outside of feedlots was down 24.7 million, about 3 percent.

The full report can be viewed by going to http://www.nass.usda.gov/