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
Surging energy markets are quickly becoming a cost story for U.S. agriculture as crude oil climbs on supply fears tied to the Middle East conflict.
Strike risk adds volatility to already tight markets.
Technology-driven lending decisions may shape the future availability of farm credit.
Logistics remain firm, but freight costs continue to rise.
Strong corn demand and cotton shipments support export outlook.
Fertilizer investigation may impact input costs and margins.

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:

Border closures tied to the threat of New World Screwworm continue to stall Mexican fed cattle imports, tightening U.S. feeder cattle supplies over time — triggering feedlot closures that hinder herd rebuilding efforts, threaten the beef supply chain, and shrink production while consumer prices stay elevated.
Brooks York of AgriSompo discusses projected prices and how farmers are adapting their crop insurance strategies as the price discovery period comes to a close.
FFA Western Region Vice President Jael Cruikshank talks about the importance of community service and how National FFA Organization members are making a difference in their communities during National FFA Week.
Ranger Road Fire has burned 283,000 acres across Kansas and the Oklahoma Panhandle and is nearing containment, as ranchers begin assessing cattle and infrastructure losses as they look toward recovery.
Fed cattle numbers are down two percent in February, according to the latest USDA report. Marketings fell 13 percent, signaling continued pressure on beef prices in 2026.
Galynn Beer of Tidal Grow Agri-Science joined us to discuss challenges in fertility management, the benefits of Align-N, and what growers can expect at Commodity Classic next week.
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.