LUBBOCK, Texas (RFD-TV) — U.S. feedyards are operating with fewer cattle this fall as the latest Cattle on Feed report (PDF Version) from the U.S. Department of Agriculture (USDA) shows inventories down two percent from last year — and with one major shift: Nebraska now leads the nation in cattle on feed, surpassing both Texas and Kansas. Total U.S. on-feed numbers for November 1 reached 11.7 million head, marking tighter supplies heading into winter.
Placements fell sharply in October, down 10 percent and the lowest for the month since the series began in 1996. Weights skewed lighter, with more than 500,000 calves placed at 600 pounds or less, as drought, high feed costs, and limited forage continued to shape marketing decisions. Marketings were also lower, down 8 percent from a year ago.
Nebraska posted 2.64 million head on feed — edging ahead of Texas at 2.63 million and Kansas at 2.46 million. Nebraska also led in marketings and continues to benefit from concentrated feedyard capacity, strong processor access, and a robust corn supply.
Regionally, South Dakota, Idaho, and Washington saw month-to-month increases, while Texas, Colorado, and Oklahoma all slipped. Placements declined in most major states, reflecting restrained feeder supplies after multiple years of herd contraction.
Looking ahead, continued light placements, elevated heifer retention needs, and shrinking cow numbers point toward tight fed-cattle availability well into 2026 — supporting stronger price potential but challenging feedyard throughput.
Tyson Foods announced Friday plans to close its meat processing plant in Lexington, Nebraska, and scale back operations in Amarillo, Texas. Stone-X economist Arlan Suderman joined us for a roundtable discussion about the news and said the move was not unexpected, citing shrinking cattle numbers, weak packing margins, and efficiency challenges.
“This is a blow to the Lexington and Nebraska economy, as well as to Amarillo, certainly, but not a surprise overall,” Suderman said. “It’s ironic that President Trump is talking about investigating the packing industry for price fixing, when we’ve had very poor margins for packing in the cattle industry now for two years. And with numbers at 74-year lows of cattle inventory, something had to give in the packing industry. And so if you look at the packing capacity in Nebraska, it was probably the largest of, you know, of any feeding state. So, it makes sense that that’s where we would lose a plant. This plant, in particular, was a converted farm equipment manufacturing plant, which didn’t quite have the efficiencies of some of the other plants. So that made sense at this from Tyson’s standpoint, that this would be the one.”
Suderman said the closure cut about 7-8 percent of packing capacity, but Nebraska plans can still handle the demand.
