Key Takeaways: 

U.S. cow-calf producers are facing another year of record-breaking revenues and net returns for 2026, though rising cost pressures and pullbacks in cattle prices increase risks. Drought remains a key concern for much of the cow-calf industry this year, with rising feed costs and reduced feedstuff availability posing additional risks. Hay prices have started to rally sharply amid challenging weather, further pressuring the cow-calf profit outlook. Despite growing risks, producers are still forecast to earn a 99 percent return on investment (ROI) this year, excluding returns to management and unpaid family labor. These financial incentives are encouraging an expansion of the beef cow herd, with heifer retention forecast...