Schumer urges Rollins to block Tyson beef plant closure

Sen. Chuck Schumer (D-N.Y.) is calling on Agriculture Secretary Brooke Rollins to exercise her authority under Section 203 of the Packers & Stockyards Act and block the closure of the Tyson Foods beef processing facility in Lexington, Neb., which would save thousands of jobs and prevent beef prices from surging further for consumers.

In a letter to Rollins, Schumer noted the Lexington plant is a critical component of the regional and national livestock marketing system, accounting for roughly 5% of total U.S. beef processing capacity. If this closure moves forward, it will cause over 25% of the town to lose their jobs and have lasting impacts on the economy, specifically rising the cost of beef for American families, Schumer’s Jan. 16 news release states.

The Lexington plant closure will devastate the local economy – costing 3,200 jobs in a town of 11,000 people. But the effects of the closure will have reverberations throughout the country. According to an analysis by the University of Nebraska-Lincoln, the plant closure will cause $3.3 billion in annual economic losses statewide.

“When the Lexington plant closes on Jan. 20, 2026, it will send shockwaves through America’s cattle market,” said Schumer. “This has real-world consequences nationwide. Consumers are going to pay more at the grocery store. Beef prices are already high; this closure ensures prices will remain high. Producers will have fewer options to sell their livestock, likely forcing them to transport their cattle farther only to make less per head. All this is happening at a time when America’s producers are struggling amidst challenging market conditions.”

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This plant closure comes at a time when Tyson paid its chief executive officer $34.469 million last year, a 50% pay raise from 2024, and the company has previously spent millions on stock buybacks. Moreover, Schumer openly questioned the legality of the closure. Section 202 of the PSA bans meatpackers from conducting “any course of business” or engaging in “any act for the purpose or with the effect of manipulating or controlling prices.” He labeled this a “textbook violation.”

“Given the high level of consolidation in the beef packing industry, the loss of a major processing facility such as Lexington would further entrench market power, weaken producers’ bargaining positions and risk depressing cattle prices while raising consumer costs,” Schumer said in the letter to Rollins. “Simply put, by shutting down this plant instead of selling it to a competitor, Tyson Foods will be able to drive down the price it has to pay to ranchers for cattle and drive up the prices that consumers pay for beef.”

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The cost of beef has gone up 16.4% since last year and will only go up further if Rollins and the U.S. Department of Agriculture choose to allow this closure to move forward, according to Schumer.

“The U.S. Department of Agriculture has publicly stated it is ‘closely monitoring’ the planned closure of large processors like Tyson’s Lexington plant, yet has offered little clarity on whether that monitoring includes active investigation, enforcement or any concrete steps to protect producers and competition,” the letter states. “USDA has both the authority and the responsibility to act when plant closures violate the law. USDA must promptly seek a judicial or administrative order to prevent the plant closure.”

Schumer’s letter concluded, “I urge you to act swiftly to preserve competition, stall skyrocketing prices and save American jobs.”