Beef Prices Hit Record Highs as Drought and Low Cattle Supply Drive Costs

Beef prices have reached record highs across the country as America’s cattle inventory sinks to its lowest level in more than 70 years. A prolonged drought, rising input costs, and trade restrictions are combining to push up prices for steak, roasts, and ground beef, leaving consumers paying far more at the checkout line.

Prices Surge Across the Board

According to the Bureau of Labor Statistics, beef prices surged in August compared to a year earlier: ground beef rose 12.8%, beef roasts climbed 13.6%, and steak jumped 16.6%. Those increases far outpaced the 3.2% overall rise in food prices and the 5.4% rise in all meat categories.

Illinois rancher Mike Martz of Larson Farms told FOX Business that the root problem goes back to drought conditions that devastated ranching areas in Texas, Oklahoma, Kansas, and parts of the Southeast. “We’ve got the lowest cow inventory since 1951,” Martz said. “When ranchers lose forage, they have to liquidate herds, and that’s what we’ve done.”

Rising Costs and Tariffs Add Pressure

Ranchers are also battling higher costs for feed, labor, fuel, and equipment. Imports have been constrained by disease outbreaks, including the suspension of live cattle shipments from Mexico due to cases of New World screwworm. On top of that, tariffs on beef imports from Brazil and other countries have added to consumer prices.

Martz said the Trump administration’s tariff policies have affected grain prices and squeezed crop profits, even as cattle operations are benefiting from higher beef prices. “We need some support,” he noted.

A Mixed Outlook for Ranchers

The National Cattlemen’s Beef Association welcomed higher cattle prices, saying they provide long-needed relief for farmers and ranchers. CEO Colin Woodall said improved returns, paired with recent tax relief measures, give producers “more resources to make ends meet and keep their cattle operations going for the future.”