Cow-calf profit per head in Texas

Texas cow-calf producers are having their strongest revenue year in more than a decade. USDA ERS cost-and-returns data for the Southern Plains region show gross value of production averaging near $1,150 per bred cow as 500-550 lb steer calves trade in the $3.10-$3.30/lb range, a level unseen since the 2014-2015 cycle. That revenue assumes the Texas A&M AgriLife Extension benchmark of an 85% weaning rate on a 520-lb average weaning weight, which is standard across the Rolling Plains and Edwards Plateau budgets.

Cost structure is what keeps Texas bottom lines thin despite the record calf market. USDA ERS pegs total cash costs for Southern Plains cow-calf operations near $985 per cow, with feed (including purchased hay and supplement) representing the single largest line. Drought-driven hay prices of $180-$220/ton in 2024-2025 pushed winter feeding costs well above the 10-year average, and fuel, repairs, and veterinary costs have stayed elevated since 2022 per AgriLife extension budgets.

Once non-cash charges are layered on, the picture shifts. ERS allocates roughly $310 per cow to depreciation on breeding stock and equipment, unpaid operator and family labor, and an opportunity charge on owned land - the last being especially large in Texas where pasture values have climbed sharply. That leaves net cash income near $165 per cow but total economic profit around negative $145, consistent with the long-run ERS finding that the U.S. cow-calf sector rarely covers full economic costs outside of peak cycle years. Texas and Southwestern Cattle Raisers Association commentary for 2025 attributes the tight margins to the combination of the smallest beef cow herd since the 1960s and stubbornly high input costs.