Takeaways from AP’s report on a beef plant closure that threatens to unravel a small Nebraska town

A small Nebraska town of 11,000 residents is facing severe economic upheaval as Tyson Foods prepares to close its beef processing plant in Lexington next month, eliminating 3,200 jobs in a devastating blow to the community.

The closure will force hundreds of families to relocate in search of employment, triggering ripple effects throughout the local economy. According to a new University of Nebraska, Lincoln report released Monday, the total job losses could reach 7,000 when accounting for impacts on surrounding counties. Tyson workers alone will lose an estimated $241 million in annual wages and benefits.

“It’s close to the poster child for hard times,” said Michael Hicks, director of the Center for Business and Economic Research at Indiana’s Ball State University, describing the impact on the town and its workers.

The plant closure threatens to unravel decades of economic and social progress in Lexington, where many immigrants without advanced education or English proficiency had achieved financial stability, purchased homes, and sent their children to college.

Tyson cites a “historically low cattle” supply in the United States and an expected $600 million loss in beef production next fiscal year as reasons for shuttering the facility. The company says the closure is necessary to “right-size” its beef business operations.

For many workers, the announcement has created profound uncertainty. Francisco Antonio, a 52-year-old father of four who has built his life in Lexington, expressed the emotional toll: “It’s home mostly, not the job,” he said, struggling to contain his emotions.

The plant has been central to Lexington’s identity and growth since opening in 1990. Tyson acquired the facility a decade later, attracting thousands of workers and nearly doubling the town’s population. The company’s presence helped create thriving neighborhoods, community centers, and a strong school system where nearly half of students have a parent employed at the plant.

Finding new employment presents significant challenges, particularly for older workers with limited English proficiency, education, and computer skills. “We know only working in meat for Tyson, we don’t have any other experience,” said Arab Adan, a Kenyan immigrant unsure where to relocate with his family.

Juventino Castro, a 25-year Tyson veteran, voiced concerns about age discrimination: “They only want young people now. I don’t know what’s going to happen in the time I have left.”

The economic fallout will extend far beyond Tyson’s workforce. Local businesses dependent on plant workers as customers face potential closure. Armando Martinez, who owns Los Jalapenos restaurant near the plant, fears he won’t be able to meet his financial obligations if his customer base evaporates.

Economist Hicks projects that if 1,000 families leave town—possibly double that number—local schools will see declining enrollment leading to teacher layoffs, while restaurants and shops will struggle with drastically reduced patronage.

City Manager Joe Pepplitsch expressed hope that Tyson might sell the plant to another company that could preserve jobs, though such a transition would take time with no guarantee of comparable employment opportunities. He noted that Tyson has benefited from tax exemptions negotiated years ago, stating: “Tyson owes this community a debt. I think they have a responsibility here to help ease some of the impact.”

When asked about plans for the facility and potential community support, Tyson provided a limited statement saying it “is currently assessing how we can repurpose the facility within our own production network,” without offering specific details about assistance for the community through the transition.

The closure highlights the vulnerability of rural communities dependent on single large employers, especially in agricultural processing. As Lexington braces for this economic shock, the town’s residents face difficult decisions about their futures in a community that has been home for generations but now faces an uncertain path forward.