Updated Budgets Show Improved Cow-Calf Outlook For 2026

University of Missouri Extension recently released updated Missouri Beef Cattle Enterprise Budgets, which provide new estimates of income and expenses for 2026.

“The budgets look favorable for cow-calf producers in the coming year, but as we’ve seen, markets can change quickly,” says Jacob Hefley, MU Extension field specialist in agricultural business.

“Operations that buy animals or retain calves past weaning will still face tight margins as the purchase price of cattle and interest expenses remain high.”

Optimism for cow-calf producers, challenges for other enterprises

Higher expected prices for weaned calves, along with updated input price estimates, support improved projected income for cow–calf herds compared to last year’s 2025 budget, Hefley says. Both spring- and fall-calving operations show a better outlook for 2026, with higher calf prices helping to offset increased production costs, particularly higher pasture expenses.

Enterprises that rely on buying or retaining animals face a more challenging outlook, primarily due to higher feeder calf prices and production costs, he says. The beef backgrounding budget, which projected positive returns last year, now projects potential losses. The replacement heifer development budget is also less attractive than last year, as keeping heifers instead of selling them reduces the income those calves could have generated at weaning. The beef finishing budget continues to struggle with tight margins but shows improvement from last year driven by higher fed cattle prices.