Cattle Customers Could be Silver Lining for 2025 Equipment Sales

While grain farmers dealing with a bumper crop and trade challenges are likely to lose money in 2025, the cattle business is the best its been in decades, according to a Sept. 15 report in the Wall Street Journal. 

Cattlemen are making a record profit of more than $700 per animal, up from $2 just 5 years ago, according to industry estimates. According to the article, “Ranchers are putting some of their windfall toward upgrading long-neglected equipment.” 

Net farm income in the U.S. is projected to reach $177 billion in 2025, a sharp increase from $128 billion in 2024, according to a new report released Sept. 11 by the Univ. of Missouri Food and Agricultural Policy Research Institute (FAPRI). The researchers reported signs of strain in crop markets despite a strong year for livestock producers.

A Sept. 11 update from the Univ. of Missouri Food and Agriculture Policy Research Institute (FAPRI) found that record cattle prices and large one-time government payments have boosted 2025 income.

WSJ reported that ranchers started selling off their cattle several years ago due to drought conditions drying up grazing pastures. A combination of COVID-19 related losses and persistent inflation and high interest rates mean many ranchers have held back on increasing their herd size.

While ranchers’ annual income varies depending on their size, WSJ said that industry officials estimate that herd the size of Shaun Loughery, who the paper interviewed for the story could generate roughly $300,000 this year. 

Loughery said he cut back on new equipment purchases to preserve cash, while inflation and dry weather made supplies and livestock feed twice as expensive.