On February 3, 2026, Texas Agriculture Commissioner Sid Miller issued a call for a federal Heifer Retention Tax Credit to address the critical shortage in the U.S. cattle supply.
Proposal Details
Modeled after the Child Tax Credit, the proposed incentive would provide tax credits to cow-calf operators who choose to retain young female cows (heifers) to expand their herds rather than selling them for slaughter.
- Objective: To rebuild the national cattle herd, which a recent USDA report indicated has reached its lowest level in 75 years.
- Target: Reversing the trend of shrinking domestic beef production to lower retail prices for consumers.
- Legislative Path: Commissioner Miller suggested the credit should be a priority in the upcoming Farm Bill.
2026 Market Context
The call for action comes as 2026 cattle prices are forecast to reach record highs due to continued tight inventories. USDA economists project that while production may inch higher in 2026, the rebuilding process remains slow, potentially keeping retail ground beef prices between $7 and $8 per pound.
