Why are beef prices so high?

Yes, overall food prices are higher right now because of post-pandemic inflation. However, the rise in beef prices is actually several years in the making, according to economists with the American Farm Bureau Federation (AFBF).

An extended drought in the western United States has discouraged farmers from expanding their cattle herds. Farmers are also facing record-high production expenses.

The U.S. cattle herd is currently the smallest in 73 years, so there’s less beef available. Because of the unique lifecycle of cattle, it can take two to three years to raise a cow to a weight that’s ready for market.

“Hopefully, it gets raining and we can turn it around in the next couple years and get more cows back, build up the herd,” says Terry Houser, director of Iowa State University’s Meat Lab. “Because it doesn’t do anybody, and it doesn’t do the beef (ranchers), any good to have really high prices. It just makes consumers switch to different proteins.”

The U.S. is home to the most affordable food supply in the world, in part because of the risks that farmers take to raise our food, even in times when it isn’t profitable, the AFBF economists said.

Learn more about author Teresa Bjork here.