Drought and Rising Costs Continue to Strain Texas Ranchers

Texas continues to play a critical role in the U.S. beef supply chain, with both cow-calf operations and feedlots contributing significantly to national production.

SOUTH TEXAS (RFD NEWS) — Beef production in the United States continues to face mounting challenges, with drought conditions and rising input costs putting pressure on producers—especially in Texas, home to the nation’s largest beef cow herd.

According to the Texas Farm Bureau, persistent weather extremes have made cattle production increasingly difficult over the years.

“Over the last few decades, it seems like we’ve either been in a drought or just recently coming out of a drought and going right back into another one,” said Tracy Tomascik. “So, as a result of that, we have less forage available, and input costs are going up.”

Limited forage and the need for supplemental feed have cut into profitability for producers nationwide. South Texas cattleman Benton England says the financial strain has been building for years and is now being reflected in tighter cattle supplies.

“I realize prices are high now, but that’s only been for really a short amount of time,” England said. “In reality, before we were losing money on cattle, it wasn’t a good thing. That’s why the cattle numbers have kind of really gone off, because for a long time, people weren’t making money.”

With reduced herd sizes, consumers may be waiting a while before seeing any meaningful drop in beef prices. Industry experts say rebuilding supply takes time.

“We don’t expect a dramatic decrease in prices for beef in the near term,” Tomascik explained. “We really have to wait until overall supply increases, which takes years according to the cattle cycle, or the production cycle, to have a meaningful impact on that.”

Despite the challenges, producers like England emphasize the importance of maintaining strong markets and protecting the industry’s long-term viability.

“We worked very hard to open the markets that we have,” he said. “We don’t want to close any of them because of problems, you know, and it’d be devastating to cattle ranchers, who are already struggling.”

Texas continues to play a critical role in the U.S. beef supply chain, with both cow-calf operations and feedlots contributing significantly to national production.

“Texas still has the largest beef cow herd across the country, and I guess the #2 feeding sector up in the panhandle,” said Tomascik. “Primarily, if you consider and compare state to state, we have a significant impact on the beef production and the beef supply chain here in Texas.”

As drought persists and costs remain elevated, producers say the road to recovery for the beef industry will take time—and careful management.

Frank McCaffrey reporting for RFD NEWS.

Related Stories
Farm CPA Paul Neiffer provided guidance on navigating the R&D tax credit, emphasizing record-keeping, eligibility, and maximizing potential savings as crop margins remain the key pressure point for farmers.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
RFA and ACE leaders join us to discuss the latest developments in ethanol policy, market impacts, and the path forward
Tight red meat supplies continue supporting livestock markets.
Higher machinery costs are raising per-acre production expenses.
ASFMRA’s Tony Toso joins us with an update on California farmland values, ongoing market uncertainty, and key discussions shaping agriculture in the Golden State.

RFD NEWS Correspondent Frank McCaffrey covers news from Texas, in the US-Mexico border region. He has provided in-depth coverage of immigration, the 2021 Texas freeze, the arrival of the New World screwworm, and Mexico’s water debt owed under a 1944 treaty.

LATEST STORIES BY THIS AUTHOR:

Severe drought in South Texas is forcing ranchers to consider cattle sell-offs as feed and water supplies dwindle, threatening herd health and livestock operations.
RealAg Radio’s Shaun Haney shares insights from new Real Agri-Studies research surrounding the relationship between farmers and their lenders and what it reveals about the current farm economy.
Farm Bureau economist Dr. Faith Parum explains how geopolitical dynamics in the Middle East could further tighten fertilizer movement, increase fuel costs, and complicate planting decisions for U.S. farmers this spring.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
Missouri Farm Bureau President Garrett Hawkins discusses the potential impact of data center growth on farmland, the Landowner Fairness Act, and key priorities for Missouri farmers heading into planting season.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.