U.S. Cattle Inventory Slips as Herd Rebuilding Stalls

Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.

IMG_7815 copy 4.jpg

FarmHER, Inc.

WASHINGTON, D.C. (RFD NEWS) — U.S. cattle numbers edged lower at the start of 2026, reinforcing that herd rebuilding remains slow and uneven despite improving price incentives. USDA’s January 1 Cattle Inventory Report shows modest declines across most categories, with beef cow numbers continuing to contract while milk cows expand.

All cattle and calves totaled 86.2 million head on January 1, down slightly from 86.5 million head a year earlier. Cows and heifers that have calved declined marginally to 37.2 million head. Beef cows fell 1 percent to 27.6 million head, while milk cows increased 2 percent to 9.57 million head, reflecting divergent trends between the beef and dairy sectors.

Heifer inventories signal limited momentum toward herd expansion. All heifers weighing 500 pounds and over totaled 18.0 million head, down 1 percent from a year ago. Beef replacement heifers rose 1 percent to 4.71 million head, but milk replacement heifers slipped slightly to 3.90 million head. Other heifers declined 2 percent, underscoring continued tightness in the replacement pipeline.

Market-ready supplies also remain constrained. Steers over 500 pounds declined 1 percent to 15.6 million head, while calves under 500 pounds dipped slightly to 13.3 million head. Total cattle on feed fell 3 percent to 13.8 million head, confirming tighter feedlot inventories entering 2026.

The calf crop continues to shrink. The 2025 calf crop was estimated at 32.9 million head, down 2 percent from 2024, with fewer calves born in both the first and second halves of the year.

Farm-Level Takeaway: Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Sen. Moran joins us to discuss the farm aid package and the financial reality faced by row crop farmers in his home state of Kansas.
Tariff relief and new trade agreements may temper food costs by reducing import costs.
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.
Tight Credit, Strong Yields Define Early December Agriculture
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.
Lewie Pugh with the Owner-Operator Independent Drivers Association (OOIDA) discusses the gap in truck driver education programs and how it impacts road safety and supply chain economics.
Cattle imports from Mexico remain stalled amid the New World screwworm outbreak. At the same time, Tyson closures add pressure on Nebraska producers and markets ahead of the USDA’s upcoming Cattle on Feed Report.
USTR Jamieson Greer signals a narrower trade deal with China, adding more market uncertainty. The Farm Bureau also supports reviewing China’s missed trade commitments under the Phase One.

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.

LATEST STORIES BY THIS AUTHOR:

Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Higher ocean freight raises export costs just as global grain competition intensifies.
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
Tight cattle supplies continue to drive lower beef output despite heavier weights.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.