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Happy New Year!

Oklahoma Drought Coverage Increases In This Weeks Drought Monitor

The latest Oklahoma Drought Monitor shows drought conditions worsening across the state, with moderate to extreme drought now covering nearly 54% of Oklahoma—up sharply from about 45% last week—while exceptional drought remains at zero percent. Extreme drought continues to hold steady in southern Oklahoma at 4.8%, even as recent heat and dryness have intensified impacts. Looking ahead, short-term outlooks offer some optimism, with central and eastern Oklahoma leaning toward a 50–60% chance of precipitation through January 10.

According to the latest Oklahoma Drought Monitor report, exceptional drought remains at 0 percent, unchanged from the start of the calendar year.

Moderate drought to extreme drought conditions in the current period indicate that 53.74 % of the state is affected by drought. Compared with last week’s 44.79%, drought conditions have worsened in the state this week.

Extreme Drought has remained unchanged this week. No new extreme drought has emerged, but the conditions still remain in southern Oklahoma, covering 4.80% of the state, the same as the previous week. According to the 6-to-10-day precipitation outlook map, central and eastern Oklahoma are leaning above 50-60% chance of rain while western Oklahoma is leaning above 40-50% chance of rain through January 10th.

Erin Dorsey, who has been involved with Cattlemen’s Congress since its very beginning in 2020, talked with Senior Farm and Ranch Broadcaster Ron Hays on New Year’s Eve as she worked on stalling assignments and other last minute preparation for the largest Beef Cattle Show in the country.

She reflected on how far the show has come in just six years, telling Hays that she was hired in the early days to help launch the event, noting, “I have been here since the beginning, Jarold Callahan hired me for that first show… helped get everything put together that first year.” Here in 2026, she serves as the Director of Operations and Director for International Outreach. Looking back, Dorsey emphasized the steady growth and momentum of the show, adding that “here we are, six years later, going stronger than ever.”

A major source of excitement this year is the opening of the new O,G& E Coliseum, which Dorsey said has transformed the layout and flow of the event. She highlighted the functionality of the new facilities, explaining that the arena is “set up wonderfully” and includes a “super nice makeup ring area” along with expanded space that connects to the covered barns. According to Dorsey, these improvements are designed to make the exhibitor experience smoother and more efficient.

senior farm and ranch broadcaster Ron Hays speaks with Don Close of Terrain about the defining forces that shaped the beef cattle industry in 2025. Close says the year began with a known constraint, noting the industry entered 2025 with “the tightest supplies we’ve worked with in better than 50 years,” but the biggest surprise turned out to be demand rather than supply.

Close explains that while factors like the Mexican border closure and tariff issues with Brazil mattered, they were secondary. “The big surprise was demand,” he said, emphasizing that consumer appetite for beef remained exceptionally strong throughout the year. That demand, he added, has stayed firm even as the industry moved toward the end of 2025.

According to Close, consumers have clearly bought into the higher-quality beef produced following the last drought-driven herd reduction. “I think the consumer buy-in is absolutely real and driven by the better quality product,” he said. He also pointed to an often-overlooked influence on demand — the growing use of GLP-1 drugs — explaining that when one adult in a household changes their diet, “they’re changing the diet for that whole household.”

U.S. Secretary of Agriculture Brooke L. Rollins announced the next phase in the Farmer Bridge Assistance Program (FBA), the eligible commodity per-acre payment rates. As announced earlier this month by President Trump and Secretary Rollins, $12 billion will be paid to American farmers in 2026.

Of that amount, $11 billion consists of one-time FBA program payments. This is in response to four years of disastrous Biden administration policies that created record-high input and production costs, zero new trade deals, and a forgotten rural America. “President Trump committed to increase certainty in the farm economy, and farmers can count on these payment rate calculations when going to the bank as they plan for the spring planting season.

Putting Farmers First means delivering real relief when it matters. Farmers who qualify for the FBA Program can expect payments in their bank accounts by February 28, 2026,” said Secretary Brooke Rollins. “These one-time payments give farmers the bridge to continue to feed and clothe America and the world while the Trump Administration continues opening new markets and strengthening the farm safety net. USDA is making this process as simple and seamless as possible so producers can focus on what they do best – feeding and fueling our nation.”

The Poultry Federation released the following statement by its President, Marvin Childers, regarding the poultry industry’s motion for stay in the Illinois River Watershed case: “The Poultry Federation supports efforts to grant a stay in this case, and we believe the poultry companies and family farmers imperiled by Oklahoma Attorney General Drummond’s lawsuit will eventually be vindicated on appeal. The pressing question is how many family farmers, who have fully complied with state law, will be driven out of business before this flawed decision is corrected.”

Poultry companies named in the lawsuit filed a motion for stay with the U.S. District Court for the Northern District of Oklahoma, along with a notice of appeal to the U.S. Court of Appeals for the Tenth Circuit, following Judge Gregory Frizzell’s December 19 ruling in this long-running case.

The Poultry Federation agrees with the industry’s warning that, “if a stay is not granted, both Defendants and many communities in and around the Illinois River Watershed will suffer immediate and irreparable harms.” Those harms would be felt far beyond the courtroom.

Oklahoma Farm Bureau president Stacy Simunek issued the following statement after poultry companies named in the State of Oklahoma v. Tyson Foods, Inc., lawsuit requested a stay following the U.S. District Court for the Northern District of Oklahoma’s judgment released December 19.

“Oklahoma Farm Bureau supports the poultry industry’s motion for stay in the State of Oklahoma v. Tyson Foods, Inc., lawsuit, especially in light of the court’s recent judgment that would irreparably harm Oklahoma poultry producers. “Farm Bureau members maintain that family farmers will suffer the most under the court’s settlement. These are family farmers who have done everything asked of them, followed their state-approved nutrient management plans and managed poultry litter to reduce phosphorous levels in the Illinois River.

“From limiting application of natural poultry litter as fertilizer with no scientific basis to appointing a judicially immune, court-appointed special master to oversee remediation with no stated goals, this court decision will harm Oklahoma farmers if a stay is not granted.

U.S. Secretary of Agriculture Brooke L. Rollins, signed a Secretary’s Memorandum (PDF, 135 KB) that puts forth a focused effort to establish new priorities for future research and development activities funded by the U.S. Department of Agriculture (USDA) to strengthen U.S. Agriculture for farmers and consumers.

The American farm economy suffered under failed Biden-Harris Administration policies that drove up inflation, created a weak trade agenda that resulted in no new trade deals for American commodities, and propagated crippling overregulation. Further, misguided policies focused on DEI and environmental justice in agricultural research, extension, and education programs diverted resources away from solving actual programs that American farmers and ranchers are facing.

Since January, the Trump Administration has been working nonstop to strengthen the farm safety net, create new export opportunities for American commodities, lower the cost of critical agricultural inputs, and root out DEI from all USDA programs. However, strategic investments in agricultural research and development will help American farmers and ranchers increase profitability while continuing to provide consumers with the safest, most abundant, and most affordable food and fiber supply in the world for decades to come.

Beef × dairy crossbred cattle are an important source of feeder cattle for the U.S. beef industry, but questions remain about how this system affects greenhouse gas emissions and the overall carbon footprint of beef production.

Recent research by Matthew Beck and colleagues in the Journal of Animal Science evaluated the carbon footprint of beef and beef × dairy steers grown under two common systems — yearling-fed , where calves are grown on pasture in a stocker program prior to finishing or calf-fed, where calves are placed on feed without a pre-finishing growing program.

 This study estimated greenhouse gas emissions during the growing and finishing phases of production using data from the OSU Klemme Range Research Station near Bessie, Oklahoma and Buffalo Feeders LLC, a commercial feedlot operations in Buffalo, Oklahoma.

Checking the Markets...

While it has been a challenge for the grain and cotton folks- the cattle market has been something else in 2025- Cassie Fish with the Beef boils it down very well- "This year was one for the record books. Record carcass weights. Record days on feed. Record retail beef prices. Record wholesale beef prices. Record cattle prices in every single class of cattle. Record profits for cattle producers. Maybe not record packer losses, but close to it. A terrible year for beef exports. Record beef imports. And mind-bending market volatility, much of it fueled by politics and parasites. 

"As 2025 comes to a close, the market has experienced a 17% correction after topping at $246.77 in August. Many are betting the market will return to the highs in 2026, and there have been plenty of cattle placed with $240/cwt break evens as producers put their money where their mouth is. There is no doubt that 2026 will likely contain as many surprises as 2025 did and that the amount of capital at risk in this industry will likely bulge to the highest ever." 

Click here for our Markets Page on OklahomaFarmReport.Com- there you will find our latest reports on cattle auctions, boxed beef, cash grains and market analysis.

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