Industry Experts Say Ranchers Still Grappling With High Costs, Years of Tight Margins
by SHAYLYNN MARKS
In Polk County and across Florida, cattle producers are finally seeing the strong prices they have waited years for, but the relief comes with an asterisk. A recent UF/IFAS market summary reported that Florida’s total cattle inventory rose to 1.58 million head, while tight supplies and strong consumer demand pushed calf prices well above last year. On the ranch, though, producers are still dealing with drought, high feed costs, and shrinking access to land, making the 2026 outlook feel promising but still hard-earned.
“Right now, cattle prices are strong, which is a positive for producers,” says Bridget Stice, a UF/IFAS Extension livestock agent. “But at the same time, costs are still high — especially for feed. The drought and freezes this past winter reduced forage, so many ranchers have had to feed more hay than normal. So even with strong prices, margins are still tight.”
Catching Up After Lean Years
From his vantage point, Dave Tomkow, owner of Cattlemen’s Livestock Auction Market, explains that despite the market’s performance and nearly record highs, many ranchers are still trying to recover from years when expenses outweighed the cattle prices.
“Honestly right now, they’re just kind of catching up from a bunch of bad years and bad times,” he says. “It’s going to take a year or two of these good prices for you to really see a change.”
Tomkow mentions how the cost of fertilizer, fencing materials, fuel, and other ranch necessities had already been rising during weaker cattle markets, leaving many operations with little room to breathe. One strong year, he says, helps, but it does not erase the strain of several difficult ones.
Drought Keeps Feed Costs High
For many producers, weather remains one of the biggest reasons strong cattle prices have not translated into easy breathing room. Stice says the drought continues to impact day-to-day decisions on the ranch.
“The drought has slowed pasture growth, and it’s carried into spring when we would normally see pastures start to green up,” Stice says. “Because of that, producers are feeding hay longer than usual.”
That added feeding time matters because feed is already one of the largest expenses in a cattle operation.
“It also leads to tougher management decisions, like reducing herd size or being more conservative with grazing to protect what forage is available,” she explains.
Tomkow says weather extremes almost always bring extra costs with them.
“Any time you have a drought or too much rain or whatever, you have extra expenses in your operation, be it feed or if there’s too much rain, getting water off the property,” he says.
Development Adds Long-Term Pressure
Land availability remains one of the biggest long-term concerns for Florida producers as development continues to reshape Florida’s rural areas.
“We’re steadily losing ranch land to development, and once it’s gone, it doesn’t come back,” Stice says.
That loss is also showing up in the everyday realities of running cattle.
“Where you still find leases to put cattle on, you can’t find leases,” Tomkow says.
Stice expands on how the pressure reaches beyond cattle production alone. Ranchlands also support wildlife, help protect water resources, and preserve the green space that remains a defining part of Florida’s landscape.
“So when we lose that land, we’re not just losing agriculture; we’re losing part of the natural system that supports our communities. And that’s something that often goes unnoticed until it’s already gone,” Stice says.
Cautious Optimism for the Year Ahead
Despite those tensions, both Tomkow and Stice say producers still have reason to feel encouraged about the months ahead.
“The market outlook is strong, and we expect that to continue in the near term,” Stice says. “Nationwide, herd numbers are down, which has increased demand for feeder calves. While we expect the industry to move back toward expansion, it will take several years before those additional cattle show up in the market.”
Tomkow says producers are encouraged by the current market, but many are also careful not to get too comfortable.
“Everybody’s staying on the cautious side because everybody’s been through it before,” Tomkow says.
He says low cattle numbers nationwide have changed the market in ways producers can feel, with tight supply creating stronger demand. For now, that gives ranchers reason to feel hopeful, even as they remain realistic about how quickly conditions can change.
Managing for the Long Haul
Stice says resilience in this kind of market comes down to careful planning as much as good prices. Producers who are holding steady, she says, are paying close attention to stocking rates, making strategic culling decisions, and planning ahead for feed needs instead of waiting for conditions to worsen.
“Overall, it’s about being proactive and managing resources carefully for the long term,” Stice says.