By Scout Nelson
A major beef processing plant in Lexington, Nebraska, announced its permanent closure, which was set to take effect in early 2026. The plant had employed more than 3,200 workers and processed nearly 5,000 cattle per day. This represented a large share of the nation’s daily beef production.
The closure marked the first time one of the largest meatpacking companies permanently closed a major beef facility during a period of limited cattle supply. The announcement raised serious concerns about its impact on the Nebraska economy and surrounding communities.
Economic experts used a standard economic model to estimate the statewide effects of the plant closure. This model measured both direct losses at the plant and indirect losses that affected other businesses that depended on plant workers and cattle processing activities.
Results showed that the closure caused an estimated annual statewide economic loss of about 3.283 billion dollars. Labor income losses were projected at more than 530 million dollars each year. A total of about 7,003 jobs were affected, including the 3,212 direct jobs at the plant and many supporting jobs in other industries.
The closure also caused a sharp decline in state and local tax revenues. Annual state personal income tax collections were expected to fall by more than 23 million dollars. State sales tax revenue was projected to decline by more than 10 million dollars per year. Local sales tax revenue in Dawson County was estimated to drop by nearly 2.8 million dollars annually.
Most of these losses were expected to be felt in Dawson County and nearby communities where plant workers lived and spent their income. Reduced household spending also affected retail stores, service providers, health care services, and housing markets.
Cattle production within Nebraska was expected to continue, but the loss of processing capacity created challenges for cattle movement and local economic activity. Some feedlots and suppliers faced longer hauling distances and higher costs.
The analysis showed that the closure produced long-term ripple effects across Nebraska’s beef industry and broader economy. These results highlighted how a single large processing facility played a vital role in supporting jobs, tax revenue, and business activity statewide.
Photo Credit: gettyimages-sstajic
Categories: Nebraska, Business, Government & Policy, Livestock, Beef Cattle