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
On a spreadsheet, it looks like the ultimate way to harvest extra profit. But in the eyes of the IRS—as RFD-TV Farm Legal & Tax Expert Roger McEowen explains—this “tax-free” bank can quickly turn into a field full of weeds.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
Shaun Haney, Host of RealAg Radio on Rural Radio SiriusXM Channel 147, joined us with his 2026 cattle market outlook and insights on beef prices.
Farmer Bridge Assistance payments provide immediate balance-sheet support heading into 2026, but remain a short-term bridge rather than a substitute for long-term market recovery.

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:

Tryston Beyrer, Crop Nutrition Lead at The Mosaic Company, examines planning trends as producers weigh corn and soybean plantings for 2026.
Brooks York with AgriSompo joins us to offer an update on what agents are prioritizing as the calendar year winds down.
The newly elected Executive Vice President of the Tennessee Cattlemen’s Association (TCA), Dale Parker, joins us on-set to share his vision for his state’s cattle industry.
A leading Oklahoma veterinarian explains common symptoms of Equine Herpes Virus (EHV) and warns owners to remain vigilant because it can spread quickly among horses.
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.
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.