New World Screwworm Outbreak: What U.S. Cattle Producers Need to Know—and How to Stay Resilient
A Threat to U.S. Cattle—and the Bottom Line
The U.S. beef industry is facing a perfect storm: record-high beef prices, historically low cattle inventories, disrupted imports from Mexico, and the looming threat of a deadly parasite—the New World Screwworm.
While consumer headlines focus on rising grocery bills, the impact on ranchers and cattle producers is far more complex and personal. Every decision made at the policy level—whether closing borders or introducing pest-control measures—has ripple effects across operations, cash flow, and long-term planning.
Let’s break down what’s happening and, more importantly, what it means for your operation—and how partners like AgAmerica can help you navigate what’s next.
The Screwworm Returns—and the USDA Takes Action
The New World Screwworm (NWS) is a parasitic fly whose larvae feed on the living flesh of warm-blooded animals. Though eradicated in the U.S. in the 1960s through sterile fly releases, recent detections in southern Mexico have reignited fears that this devastating pest could cross the border again. This has prompted the U.S. Department of Agriculture (USDA) to shut down all live cattle imports from the country to protect the U.S. herd.
While that move is a smart safeguard, it also creates real economic consequences for cattle producers here at home—especially as the U.S. cattle herd sits at its lowest level in decades and beef prices continue to rise.
What’s Driving Beef Prices Up?
Beef prices recently hit an all-time high, averaging $8.50 per pound in April 2025—and they’re expected to climb even higher through 2026. Behind the increase:
- Shrinking U.S. herd size;
- Lower processing rates for steers, heifers, and older cattle; and
- Reduced imports of feeder cattle from Mexico.
With production forecasted to drop by 5% next year, supply remains tight. The USDA’s latest import suspension—reinstated in May 2025—has only added pressure, disrupting the steady flow of Mexican feeder cattle that are typically finished in the U.S. before slaughter.
How USDA Is Containing the Screwworm Threat
To keep the NWS from breaching the border, the USDA is scaling up efforts:
- Shut down all live cattle and bison imports from Mexico as of May 11, 2025.
- Invested $21 million to convert a fruit fly facility in Metapa, Mexico, into a sterile fly production facility dedicated to screwworm containment.
- Continued releasing more than 100 million sterile flies per week from existing facilities in Panama, with plans to increase that number to over 200 million once the new Mexico plant is operational.
- Explored options for building a domestic U.S. sterile fly facility to ensure long-term protection.
A Tough Year for Cattle Producers
This latest pest threat comes on the heels of one of the most difficult years cattle producers have faced in recent memory. In 2023 and 2024, widespread drought and wildfire conditions plagued large swaths of cattle country, putting pressure on forage supplies, water access, and animal health. Many ranchers were forced to cull herds or liquidate assets to stay afloat. These environmental hardships added to the already challenging landscape of tight margins, rising feed costs, and processing bottlenecks—leaving many producers financially stretched thin even as beef prices surged at the retail level.
Relief Payments Coming Soon
In addition to pest threats, many ranchers have been hit hard by drought and wildfire. To help, USDA will soon begin distributing Emergency Livestock Relief Program (ELRP) payments to producers with qualifying losses in 2023 or 2024. If you’ve filed through the Livestock Forage Disaster Program, payments will be issued automatically—no additional paperwork needed.
Why This All Matters for Ranchers
Between volatile markets, rising input costs, pest risks, and environmental disasters, it’s clear: operating a cattle business today takes more than grit—it takes financial flexibility and proactive planning.
AgAmerica Is Here to Help
When challenges like border closures or parasitic outbreaks emerge, having a responsive lending partner makes all the difference. At AgAmerica, we specialize in ag financing designed around the realities of farming and ranching life. Our land loans and operational financing can help you:
- Bridge seasonal or emergency cash flow gaps
- Expand herd capacity or improve grazing infrastructure
- Increase self-sufficiency amid disrupted supply chains
We’re committed to helping producers adapt and thrive—because when American agriculture is strong, the entire nation benefits.
If you’re navigating uncertainty, let’s talk about how AgAmerica can provide the capital and confidence to help you move forward. Together, we’ll weather this and come out stronger.
