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High Beef Prices Persist Amid Plant Closures and Droughts

12/28/2025

Center

Trump's Beef Price Crisis

Beef prices in the U.S. are expected to remain high due to tight cattle supplies continuing into 2026, influenced by prolonged droughts and border closures.
President Donald Trump’s comments on lowering beef prices have frustrated ranchers, resulting in a significant drop in feeder cattle futures.
Tyson Foods announced the closure of a major beef plant, affecting 3,200 jobs, while the USDA has lowered cattle price projections.
Experts warn that these market fluctuations could hinder efforts to rebuild the cattle herd.

Left

Ranchers Face Rising Prices

In 2025, beef prices in Utah reached a record $6.32 per pound, according to a Kem C. Gardner Policy Institute report.
The surge reflects declining cattle inventories, sustained demand, and rising input costs.
Ranchers benefit from higher prices but face increased expenses to rebuild herds.
Hog production fell after Smithfield Foods ended contracts with 26 farms, cutting hog inventory from over 1 million in 2020 to 105,000 in 2024.

History

Historical Context

The Great Depression began with the Wall Street crash in October 1929, leading to a staggering 25% unemployment rate in the U.S. by 1933. The Agricultural Adjustment Act aimed to stabilize prices, yet farmers faced severe challenges, including droughts and plummeting cattle inventories. Today’s high beef prices echo these historical supply chain disruptions, highlighting ongoing vulnerabilities in the agricultural sector.

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Trump's Beef Price Crisis

Beef prices in the U.S. are expected to remain high due to tight cattle supplies continuing into 2026, influenced by prolonged droughts and border closures.
President Donald Trump’s comments on lowering beef prices have frustrated ranchers, resulting in a significant drop in feeder cattle futures.
Tyson Foods announced the closure of a major beef plant, affecting 3,200 jobs, while the USDA has lowered cattle price projections.
Experts warn that these market fluctuations could hinder efforts to rebuild the cattle herd.

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