Drought Threatens Beef Herd Expansion and Keeps Prices High

Dry conditions, tight cattle supplies and border challenges continue to shape the outlook for the U.S. beef industry.

Cattle in drought conditions_photo by 169169 via Adobe Stock.png

Photo by 169169 (Adobe Stock)

Photo by 169169 (Adobe Stock)

LUBBOCK, Texas (RFD News) — Drought is limiting hopes for U.S. beef cow herd expansion and could keep cattle prices historically high into 2027.

Dr. Dave Weaber with Terrain says more than three-quarters of the beef cow herd is under drought conditions. Long-term forecasts point to stronger El Niño influence later this summer and fall, but that may arrive too late to help many cow-calf operations.

Beef cow slaughter remains below last year, but drought-related culling is still occurring. Auction data also show more very light calves moving off ranches, likely tied to early weaning and limited feed availability.

Feeder cattle supplies remain tight. New World screwworm concerns at the Texas-Mexico border are also complicating cattle movement and delaying the reopening of live cattle trade with Mexico.

Weaber expects only small herd expansion, if any, going into 2027. Feeder cattle and calf prices are forecast to remain at record highs as supplies stay short and beef demand holds.

Farm-Level Takeaway: Drought, tight feed supplies, and border limits are keeping cattle supplies short, and prices elevated.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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