Livestock prices remain strong and competitive as the industry looks ahead to 2026, according to reports from the Livestock Auctioneers Association (LAA).

"Competitive live auction markets continue to support strong prices," says LAA executive secretary Chris Dodds. "The live ring remains the most effective environment for achieving true market value, with competitive bidding consistently driving stronger prices than direct supply chains."

As government support for farming continues to decline, stock numbers are falling across many regions. Environmental schemes offering alternative income streams are increasingly influencing land use, and few producers are expanding numbers. While this presents challenges for future supply, it's also helping to keep prices firm.

"Fewer animals in the system are helping to maintain strong values, creating opportunities for those still actively producing," adds Mr Dodds.

"Everyone in the ring is jostling for the best price, that competitive tension is what delivers value," says LAA policy & strategy officer, Alastair Brown. "Live markets set the benchmark, and deadweight prices follow. With limited government support, farmers rely on achieving the best possible price, and the marts continue to deliver it."

Inheritance tax pressures

The LAA has welcomed the recent Budget decision allowing the £2 million inheritance tax threshold to roll over to spouses but warns that the measure does not go far enough to protect family farms.

"It's a step in the right direction, but nowhere near enough," the Association says. "Many traditional family farms - often 150–300 acres - now exceed the threshold purely due to land value. This is preventing retirement and blocking new entrants."

In many areas, auctioneers are also qualified land agents, providing valuations, succession planning and professional advice to help farming businesses navigate increasingly complex tax and land-use challenges.

Bluetongue

As of 10 November, bluetongue restrictions eased and England and Wales are operating as a single Bluetongue BTV-3 Restricted Zone, allowing cross-border trading after months of disruption for farmers and auction markets.

Losses remain minimal, but auctioneers stress the importance of evidence-based veterinary advice. As temperatures rise next year, continued vigilance and consideration of vaccination will be essential.

Sheep and cattle trade:

England – Stephen Dodsworth, auctioneers' assistant, Darlington Farmers Auction Mart

• Cattle supplies remain tight, despite slight year-on-year increases in our auction. Numbers are falling largely due to the demise of the traditional hill-bred systems. High fodder prices and transport costs continue to challenge long-term sustainability.
• The sheep trade has softened in recent days due to an influx of heavy lambs and a shortage of export-weight lambs at 39–40kg.
• "Oversupply of heavy lambs depresses price, and the trade is likely to remain static."
• Competition for stock remains strong across regions, underpinning market resilience.
• Bluetongue losses remain minimal, with emphasis placed on practical, evidence-led disease management.

Wales – Katie Davies, partner & auctioneer, McCartneys & Welsh LAA Chair

• Lamb trade has remained strong throughout the year, with prices holding firm, although no real seasonal dip in trade perhaps gives it limited opportunity to rise vastly.
• Breeding sheep demand continues to be robust, supported by tighter supply.
• Cattle prices have remained strong for the past 12 months, with little sign of a downturn, with demand outstretching supply in the suckler beef ring.
• Drought conditions meant more lambs were fed and resultantly finished earlier, alongside more store lambs also coming into the market sooner.  This has resulted in maintaining a steady, controlled supply through the autumn.
• A good lambing percentage is hoped for in the spring; however, the effects of the drought and bluetongue are potential risks.
• The easing of bluetongue restrictions in November after months of disruption, has been a relief to the industry, though vigilance remains essential.

Continued policy engagement and strong market access

The LAA continues to work with policymakers to represent the needs of livestock producers and auction markets. With environmental change, disease threats and tax pressures reshaping the sector, access to strong, transparent and competitive markets is increasingly important.

"As stock numbers fall and uncertainty grows, the live auction system is proving its worth," concludes Chris Dodds. "The industry faces challenges, but there are also real opportunities. Our role is to ensure farmers, markets and rural communities are able to make the most of them."