Updated budgets show improved cow-calf outlook for 2026

FORSYTH, Mo. — 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.

Price forecasts already shifting

Hefley notes that these budgets use prices generated in mid-October, just days before recent shifts in cattle markets. Market conditions, input costs and calf prices can change quickly throughout the year, which may affect projected returns.

“Budgets are a snapshot in time,” Hefley said. “Conditions change quickly, so it’s important to revisit your numbers regularly. Doing so helps producers make informed choices and adjust their management strategies as markets evolve.”

Budget updates for 2026

All beef cattle budgets are available on the MU Extension website. Updates include sensitivity analysis tables that show how changes in calf prices, feed costs or pasture rent can affect profitability. Budgets also now report income over cash costs alongside operating and total costs, giving producers a clearer picture of short-term cash flow. In addition, pasture costs are reported per acre rather than per animal unit month (AUM), making cost calculations simpler and easier to estimate.

In addition to the printable version, all budgets are also available as downloadable, editable spreadsheet files, allowing producers to enter their own costs and prices to customize the budgets for their individual operations.

For more information on the 2025 Missouri beef cattle enterprise budgets, contact MU Extension specialists Jake Hefley, Wesley Tucker, Drew Kientzy or Zachary Erwin.