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.
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.
November 21, 2025 12:01 PM
·
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
November 21, 2025 11:58 AM
·
Supplemental Disaster Relief Program Stage Two will disburse around $16 billion, approved by Congress last year. Sign-ups begin Monday, and producers have until April to return applications.
November 21, 2025 11:48 AM
·
Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
November 21, 2025 10:45 AM
·
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
November 21, 2025 10:30 AM
·
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
November 20, 2025 05:00 PM
·
