LUBBOCK, TEXAS (RFD NEWS) — Strong calf prices are not yet enough to trigger herd rebuilding as drought and rising input costs continue to limit expansion decisions. Analysis from Hannah Baker, University of Florida Extension beef economist, highlights growing pressure on cow-calf producers across the Southeast.
Drought remains a major constraint, with all of the Southeast experiencing some level of dryness and about 75 percent in severe to extreme conditions. Stressed forage, combined with early-year freezes, has reduced grazing availability and increased reliance on purchased feed.
Farm-Level Takeaway: High prices alone may not drive herd expansion.
Tony St. James, RFD News Markets Specialist
Input costs are adding further pressure. Diesel prices are running roughly 55 percent above a year ago, with some areas topping $6 per gallon. Fertilizer prices have also jumped, with potash, UAN, and urea all posting significant year-over-year increases, raising concerns about forage quality and production.
Despite those challenges, cattle prices remain historically strong. Steer calves in the Southern Plains are up sharply from both last year and the five-year average, supported by tight supplies and strong demand.
NEFB President Mark McHargue recaps the Farm Bureau’s Annual Convention, producer sentiment in Nebraska, and discusses key issues facing agriculture.
January 15, 2026 01:17 PM
·
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
January 15, 2026 12:51 PM
·
House Agriculture Committee Democrats are calling for action on the Farm and Family Relief Act, warning that proposed SNAP cost shifts to states could reduce food assistance for low-income families amid ongoing tariffs and trade disruptions that continue to strain U.S. farmers.
January 15, 2026 12:30 PM
·
From “right to repair” to investigations into the “Big Four” meatpackers, antitrust issues were a major legal topic in 2025 and promise to have a long-term impact on the agriculture industry in the future.
January 15, 2026 12:05 PM
·
Record ethanol production and improving blending demand continue to support corn usage despite rising short-term inventories.
January 15, 2026 11:47 AM
·
Tight beef cow supplies and steady demand point to continued record-level cull cow prices in 2026.
January 15, 2026 11:23 AM
·
