Tight Herd, Beef-on-Dairy Growth Shape Price Outlook

Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.

NASHVILLE, Tenn. (RFD-TV)— U.S. cattle supplies remain historically tight, keeping a firm tone under beef prices into 2026.

The U.S. Department of Agriculture (USDA) Economic Research Service (ERS) estimates the total herd at about 86.7 million head on Jan. 1, 2025—near 70-year lows—while the July 1 inventory showed only a modest uptick in beef replacement heifers, signaling a slow rebuild at best.

Imports are backfilling the gap: ERS’s mid-year outlook pegged 2025 beef imports near 5.19 billion pounds, with only a slight pullback expected in 2026 as global exportable supplies tighten.

On the fed-cattle side, packers and feeders continue to lean on beef-on-dairy crosses. Industry analysts estimate that these calves could account for roughly a mid-teens share of the fed market (about 3.2 million head in 2024), with a notable presence in Southern High Plains yards—supporting uniform carcass quality and throughput even as native calf supplies remain light.

With constrained beef-cow numbers and a gradual rebuild, price breaks are more likely to come from demand or imports than from a surge in domestic cattle.

Tony’s Farm-Level Takeaway: Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.
Related Stories
Consumer spending continues, but value-focused buying is on the rise.
Cooperatives may need changes to attract younger producers.
Farm legal expert Roger McEowen highlights the legal challenges surrounding stray voltage, a recent court decision, and what it means for agricultural producers.
Rising costs are significantly extending walnut profitability timelines.
Nearly 50,000 cattle impacted as producers search for feed and recovery options
Michael Cliver discusses his recent visit to the White House with the National Cattlemen’s Beef Association, and the Trump Administration’s “Working Families Tax Cuts” impact on ranching families.

LATEST STORIES BY THIS AUTHOR:

Variety meat demand is helping offset weaker beef exports.
Corn exports remain the clear demand leader.
March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.
Tractor Supply’s Paper Clover Campaign raises millions of dollars each year for 4-H youth programs and scholarships. Local store community marketing manager Lexie Gamble joined Tuesday’s Market Day Report alongside 4-H student Matthew Rochford to discuss the partnership.
The cast of “Farmer Wants a Wife” joined us to share their stories and preview Season 4 of the series, which premieres April 21 on FOX.
Lane Howard and Adam Andrews with the National Corn Growers Association joined us in the studio discuss EPA’s approval of summer E15 sales, ongoing fuel market concerns, and the industry’s push for a long-term biofuels solution for farmers.
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.