AgAmerica: Tight Cattle Supplies Shape 2025 Ranch Strategies

Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.

LAKELAND, Fla. (RFD-TV) — U.S. cattle numbers are at their smallest since 1951, creating a high-price, low-supply market that rewards careful planning. AgAmerica Lending says calf and fed-cattle prices remain elevated as consumers keep buying beef, even with retail records.

That combination supports cow-calf returns but pressures stocker and feedlot margins — a squeeze that will influence bids, basis, and the pace of herd rebuilding through 2026.

Key signals point to gradual expansion. Beef-cow slaughter has slowed about 17 percent from last year — a sign of retention — while July measures showed 10.9 million head on feed (-2%), 1.6 million placements (-6%), and 1.75 million marketings (-6%). Texas cattle on feed fell 9.1 percent.

At the store, ground beef averaged roughly $6.25 per pound; live steers averaged about $242 per hundredweight, with USDA expecting still-strong prices to carry into 2026. Feeder imports from Mexico are sharply lower after a screwworm-related suspension, keeping supplies tight in the Southwest.

Ranch finances matter as much as herd moves. AgAmerica highlights blended retention-and-sale plans, use of CME hedges and Livestock Risk Protection, disciplined cash-flow reserves for restocking, and succession pathways for new entrants while asset prices are high.

Farm-Level Takeaway: Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
Tony St. James, RFD-TV Markets Expert
Related Stories
Chaley Harney, Executive Director of the Montana Beef Council, and Jonna Jones, Director of Marketing for Wentana, LLC, say it’s a great time for both cattle producers and beef consumers to celebrate one of America’s favorite proteins.
The Virginia Farm Bureau shows us how robotic milking technology has become a lifeline to the Commonwealth’s dairy industry, increasing production efficiency in the face of low milk prices and rising labor costs.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.
Winter Weather, Drought Shape Early 2026 Farm Conditions
As domestic production and blending slowed, export demand remained a clear bright spot.
Protein markets are fragmenting. Beef is supply-driven and more structurally expensive, whereas pork and poultry remain price-competitive.