U.S. cattle numbers fall while major states show sharp industry changes
The USDA released two months of cattle on feed data following the government shutdown, providing a clearer picture of livestock trends across the United States. As of November 1, cattle on feed fell by 2.2 percent, or 260,000 head, compared to last year. Placements into feedlots during October were also lower, dropping 10 percent from October 2024, while marketings decreased by 8 percent. For the first ten months of 2025, placements totaled 17.6 million head, which is 6.4 percent below the same period in 2024.
Regional differences continue to shape the cattle industry. Texas recorded an 8.7 percent decline in cattle on feed from a year ago, while Colorado reported a 13.2 percent decrease. In contrast, Nebraska, Kansas, and Iowa posted increases, rising 2.3 percent, 2.1 percent, and 4.5 percent, respectively. October placements were lower in every major feeding state except Iowa, highlighting shifting cattle movement across the country.
A key point in the latest report was the share of heifers on feed. On October 1, heifers represented 38.14 percent of the total, slightly higher than last quarter but 1.5 percent lower than last year. There were 245,000 fewer heifers on feed than a year ago, marking the fifth straight quarter of year-over-year declines. This change is likely linked to significantly reduced spayed heifer imports from Mexico, which fell sharply compared to 2024.
For only the tenth time in over three decades, Nebraska surpassed Texas as the state with the most cattle on feed. However, the industry also faced troubling news. Tyson Foods announced the closure of its Lexington, Nebraska packing plant in January 2026. This facility has a daily capacity of 5,000 head and employs around 3,000 workers. Tyson also plans to reduce capacity at its Amarillo, Texas plant, though the exact reduction is not yet known.
These developments caused futures markets to fall sharply, with contracts hitting limit-down levels. Auction price impacts remain uncertain, especially with reduced activity during the Thanksgiving week. More updates are expected as the situation develops and markets respond.
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