LUBBOCK, Texas (RFD-TV) — U.S. beef processors are navigating the tightest cattle supplies in decades, but Cargill says it has no plans to close any primary beef plants even as Tyson prepares to shut Lexington, Nebraska, and scale back Amarillo.
For producers, this signals widening differences in how major packers are responding to shrinking cattle numbers, rising procurement costs, and restricted imports from Mexico due to New World Screwworm controls.
Cargill confirmed it will continue operating all eight of its North American slaughter plants and is investing in modernization, including a $90 million upgrade at its Fort Morgan, Colorado, facility. The stance contrasts sharply with Tyson’s expected 7 percent national capacity reduction, which will narrow competitive bids in parts of Nebraska, Kansas, and the Texas Panhandle.
Other packers remain stable: JBS and National Beef report no pending closures, and several regional plants built after the pandemic continue running, though some operate below intended throughput. Looking ahead, tight feeder supplies may still pressure margins across plants through 2026.
Farm-Level Takeaway: Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Tony St. James, RFD-TV Markets Specialist
Jeramy Stephens of National Land Realty breaks down current trends in the farmland real estate market and how landowners should consider water availability and its impact on land values as they plan for the year ahead.
February 04, 2026 01:57 PM
·
As cattle markets show renewed strength, producers gathering at CattleCon are focused on protecting operations, managing risk, and positioning for opportunity in the year ahead.
February 04, 2026 01:41 PM
·
The Fort Worth Stock Show and Rodeo continues through Saturday, showcasing livestock, youth involvement, and agricultural talent, with the Junior Sale of Champions serving as the culmination of the 23-day event.
February 04, 2026 12:54 PM
·
Mexico has fallen behind by several hundred thousand acre-feet in required water deliveries to the United States, a shortfall that has had devastating consequences across the Rio Grande Valley.
February 04, 2026 12:23 PM
·
U.S. Senator Roger Marshall of Kansas discusses expected changes to the 45Z tax credit and what they could mean for agriculture and rural America.
February 04, 2026 11:13 AM
·
Purdue University Professor of Agricultural Economics Dr. Jim Mintert shares a closer look at farmer sentiment and the key issues shaping the agricultural economy in January.
February 04, 2026 10:53 AM
·
