Your Guide to the Texas Cattle Industry

Drive down any rural highway in Texas, and you’ll see why the state is so synonymous with cattle farming. Land mass is extensive here, with vast pastures that are rich for grazing. Here, there’s plenty of space for cattle: in fact, the Lone Star State leads the nation in acres of farmland. Almost 70 percent of that land is used for ranching.

Before beginning — or expanding — a cattle operation in Texas, it’s helpful to understand more about the industry, from its history to its logistics and finances. Here’s what you need to know to get started as a Texas rancher.

Why is Texas a prime state for cattle farming?

There’s a rich history of cattle farming in Texas — a story that continues to this day. Ranchers have been raising cattle here since the 1400s, long before Texas was even part of the United States. In 1845, when the U.S. annexed Texas from Mexico, more opportunities for ranchers became available: both because of new distribution of land, and new railroads being built in and out of the state. 

This era brought about the proverbial Texas “cowboy,” usually wrangling Texas longhorns on the range. In the nearly two centuries since then, the Texas cattle industry has exploded into one of the state’s most important sectors. Now, Texas cattle farmers play a critical role within the overall U.S. agricultural economy.

Texas’s vast land mass has helped it consistently maintain the top spot in the U.S. in terms of cattle inventory. In 2024, there were 12 million head of cattle in the state — nearly double the amount of the No. 2 state (Nebraska, with 6.25 million). 

The Lone Star State is also one of the best places in the U.S. you could start — and profit from — a cattle ranch. This industry is a huge segment of the state’s overall ag economy. More than half of Texas ag products are beef products, for example, and Texas leads the U.S. in beef production. Cattle breeding and genetics are also sectors of the industry that could bring big financial opportunities.  

How many acres do you need for a cattle ranch in Texas? 

This will vary based on your region within Texas, the climate, and your goals for your operation. Your stocking rate (how many acres are necessary to sustain one cow) could be as low as one animal per acre. Or, it could be much higher than that. 

If your land is in East Texas, where there’s more rainfall, you probably won’t need as many acres to sustain your operation. Your cattle will have more feed available on resource-rich acres. However, if you own land in the drier, more western portions of the state, you’ll likely need a bigger tract of land. 

Cattle ranches in Texas can range in size anywhere from a few acres to thousands. At Texas Farm Credit, we offer land loans for a variety of tract sizes. 

What to know about raising cattle 

There’s a huge variety of cattle breeds in the U.S. Which ones you choose to raise will depend on the climate within your region, your operation’s goals, and what kind of management practices you’ll have.

For example, Angus cattle are the most common breed, and can offer high financial upside (selling Certified Angus Beef can bring in more money than other beef products). Brahman cattle are also a good option in a variety of regions, since they’re adaptive to extreme temperatures (hot or cold), and offer high fertility rates.

After selecting and purchasing your breeds, you’ll also need the right equipment. Feeders and watering systems are, of course, vital to a successful cattle operation. 

To protect your animals’ health, you’ll also need to establish procedures around vaccinating, deworming, and hoof trimming.

You’ll also want to be sure to sign up for livestock insurance. If there’s a natural disaster, drought, disease, or anything else that could harm your cattle, you’ll need to protect yourself from big financial losses. [Texas Farm Credit offers several insurance options for livestock producers that are federally administered by USDA’s Risk Management Agency]

Particularly if you live in a region of the state where climate can be unpredictable, it could also be helpful to think about sustainability practices on your land. For example, some cattle ranchers opt for holistic grazing practices to conserve resources and avoid overgrazing. 

The more you can protect the grasslands that feed your cattle, the more you protect their health and your long-term profits.

What else to know about being a Texas cattle farmer 

The good news about farming in Texas is that you don’t pay state-level income taxes. You’ll still want to check with your local municipality about any potential property taxes you might owe. 

To help your bottom line even more, as a Texas landowner, you might also qualify for certain tax breaks or other incentives. You can check out a few of the most common ones here. 

How to start a cattle operation in Texas 

Like with any business, starting your cattle farm with a solid business plan is the most important first step. Figure out your goals, estimate your revenue, and plan for potential expenses. 

When searching for land to launch your cattle operation, make sure to pick a location with ample grazing resources. You’ll also want to think about fencing around your property: no cattle operation is very useful if cows are free to roam away! 

Then calculate how much land you can afford, based on business goals, expected profits, interest rates, and more.

Once you identify how many acres fit within your budget, get help from the experts to finance your cattle operation. Land loans are available through organizations like Texas Farm Credit, as well as operating lines of credit, livestock insurance, and more. Apply today, or contact our team for questions.