UNL report estimates nearly $3.3 billion in annual economic losses from Tyson Foods closure
An economic impact analysis estimates that Nebraska will face nearly $3.3 billion in annual economic losses due to the closure of the Tyson Foods beef processing plant in Lexington.
The analysis, released Monday by the University of Nebraska-Lincoln’s Center for Agricultural Profitability, was completed using a statistical model that takes into account both direct impacts, like job losses and tax revenue decreases, and second-order impacts like potential job losses in related sectors and decreased spending within a community.
It found that the closure will result in about $530 million in lost income – both from the 3,200 Tyson workers who will be laid off when the plant closes in January, and from thousands of jobs in related sectors. Some job losses in other sectors have already been seen: Fortrex, a sanitation contractor for Tyson, announced shortly after Tyson’s announcement that it would lay off 139 workers.
Both state and local tax revenues are likely to take a big hit, according to the report. State annual losses are estimated at $23.2 million for income tax and $10.1 million in sales tax. Local sales tax revenue in Dawson County is expected to fall by $2.7 million annually.
While the economic impacts will be felt statewide, the report said, they will be concentrated in Dawson County and surrounding areas.
To complete the analysis, researchers estimated that about 85% of the cattle slaughtered at the Tyson plant came from Nebraska feedlots. They also estimated that the average employee spent about 35% of their income on goods and services subject to state sales tax.
The closure comes amid significant economic issues in the cattle industry. In 2025, the U.S. recorded its smallest beef cattle herd in more than 70 years, and meatpackers are losing money as they operate well below capacity. Tyson is the first of the “big four” meatpackers – Cargill, National Foods, JBS and Tyson – to close a major facility during the current supply crunch.
