Kelly Saberi of Fox Enterprise joins Varney & Co. to debate a lower in cattle resulting in a document excessive worth of beef.
Beef costs are at a document excessive within the wake of a drought that left cattle stock on the lowest stage in 70 years amid sturdy demand, leading to worth will increase for steak and floor beef.
The Bureau of Labor Statistics’ client worth index report for August confirmed a surge in beef costs over the previous yr. Floor beef costs had been up 12.8% on a year-over-year foundation in August, whereas beef roasts had been up 13.6% and steak costs had been 16.6% increased. These inflation figures are nicely above the three.2% year-over-year rise in all meals classes, in addition to the 5.4% rise in meat costs from final yr.
Cattle rancher Mike Martz of Larson Farms in Maple Park, Illinois, advised FOX Enterprise’ Kelly Saberi that cattle inventories have declined lately resulting from drought affecting necessary ranching areas.
“The real issue here is the drought that happened a number of years ago and Texas, Oklahoma, Kansas, the Southeast lost all their grass, all their forage, and when that happens you’ve got to liquidate cows, and that’s what we’ve done,” Martz stated. “We’ve got the lowest cow inventory since 1951, so that’s the cause of this.”
THAT LATTE OR CAPPUCCINO COULD GET MORE EXPENSIVE AS COFFEE PRICES CONTINUE TO RISE
Customers take a look at packages of beef at a grocery store in Houston, Texas, on Sept. 26, 2025. (Ronaldo Schemidt/AFP through Getty Photographs / Getty Photographs)
Overhead prices for cattle ranchers have additionally climbed, with feed, labor, gas and gear bills trending increased.
Imports have been constrained by diseases affecting cattle, with shipments of reside cattle from Mexico suspended by the U.S. Division of Agriculture in Might due to circumstances of New World screwworm – a flesh-eating parasite – affecting cattle nearer to the U.S. border.
Larger tariffs have additionally factored into increased beef costs hitting customers on the checkout line, with beef from Brazil going through a 76% tariff and different beef-producing international locations going through tariffs as nicely.
FED PRESIDENT WARNS INFLATION IS ‘GOING THE WRONG WAY’ AS TARIFF CONCERNS MOUNT
Floor beef costs had been up almost 13% in August from a yr in the past. (Daniel Karmann/Image Alliance through Getty Photographs / Getty Photographs)
Martz stated it is necessary that the Trump administration assist farmers and ranchers affected by tariffs, as a result of some operations like his depend on each crops and livestock to remain afloat.
“It’s important because some of the price drop we’ve seen on the grain side came from the tariffs, and we’re seeing input costs higher because it came from the tariffs,” Martz stated.
“Here at Larson Farms, we’ve got our cattle operation, we’ve got our crop operation – the cattle are making money, the crops are going to lose money, so hopefully we can average that together, but we need some support.”
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Beef imports have been constrained by tariffs and import restrictions associated to diseases impacting cattle herds. ( Joe Raedle/Getty Photographs / Getty Photographs)
A commerce group representing cattle ranchers stated that the upper beef costs have helped make up for financial challenges confronted lately underneath the Biden administration.
“Between inflation, rising costs, and government red tape during the Biden administration, cattle farmers and ranchers have been stretched thin,” stated Nationwide Cattlemen’s Beef Affiliation CEO Colin Woodall. “The better prices farmers and ranchers are now receiving for their cattle is a welcomed change. Farming and ranching families now have more resources to make ends meet and keep their cattle operations going for the future.”
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“These prices, coupled with the tax relief delivered by President Trump’s One Big Beautiful Bill, are essential for the success of America’s cattle industry. Family farmers and ranchers now have even more tools to help them invest in their operations, purchase new equipment, and continue meeting the strong demand for high-quality American beef,” Woodall added.
