Livestock markets in 2025 have outperformed crop markets, but agricultural economists at the University of Illinois caution producers not to relax their risk management strategies despite strong prices.
The cattle industry, in particular, has seen prices rise due to several factors. Years of drought have significantly reduced domestic beef supplies, and border closures related to New World Screwworm have disrupted imports, further tightening supplies and elevating prices.
According to the USDA, there were an estimated 11.7 million head of cattle on feed as of December 1, marking a 2% decrease from last year. Cattle placements in feedlots fell by 11% to 1.6 million head, and the marketing of fed cattle dropped 12% to 1.52 million head compared to a year ago.
Despite the slow pace of rebuilding the U.S. cattle herd, beef markets experienced some price declines in 2025, recently slipping from the highs reached in September.