News

Economist sees growing risk for tighter feeder cattle margins in 2027

An ag economist says feeder cattle margins are expected to tighten heading into 2027. 

Michael Langemeier with Purdue University says rising input costs are impacting profitability.

“It really depends on whether fed cattle prices match the high breakevens,” he says. “Right now, we’re looking at a breakeven situation in late 2026 and early 2027.  Cattle finishing is always risky, but it’s particularly risky right now.”

He tells Brownfield price shifts could have an impact on net returns.

“It’s a margin business,” he says. “When we’re looking at profitability, it depends on what you paid for the animals and what you sold the animals for.”

Langemeier says cattle feeders could face tighter margins in the second half of 2026.

AUDIO: Michael Langemeier, Purdue University