Historically High Cattle Prices Drive Oklahoma’s Strong Ag Economy:

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Oct. 2, 2026

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The Oklahoma City Branch of the Federal Reserve Bank of Kansas City released its latest issue of the Oklahoma Economist, titled "In a Tale of Two Farm Economies, the Oklahoma Ag Economy Contrasts with the Rest of the Tenth District." This edition of the Oklahoma Economist examines Oklahoma's strong farm income amid historically high cattle prices.

Due in large part to a relatively large concentration in cattle production, Oklahoma's farm economy has remained solid and grown at a stronger pace than the rest of the Tenth Federal Reserve District, according to Cortney Cowley, assistant vice president and Oklahoma City Branch executive of the Federal Reserve Bank of Kansas City.

"Farm and rural economies in Oklahoma have been supported by stronger profit margins in the cattle industry, while low crop prices and elevated expenses have led to weaker farm financial conditions in other states," she said. "Overall, the agricultural economy in Oklahoma has continued to expand and has supported broader economic and business activity in the state."

Cowley said although high cattle prices have contributed to strong profit margins, feed costs have increased, and high prices alongside elevated interest rates have created challenges for some producers looking to maintain or restock herds.

"Elevated input costs, particularly for fertilizer and diesel, and expanding drought remain key concerns for all producers," she said. "The outlook for agriculture within the state could vary greatly depending on geography with increasingly dry conditions in western Oklahoma." The complete issue is available at https://www.kansascityfed.org/oklahomacity/oklahoma-economist.

The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. As part of the nation's central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions. More information is available online at https://www.kansascityfed.org.