Congressman Troy Downing, R-Mont., joined ‘Mornings with Maria’ to debate the shutdown’s financial toll, record-high beef costs and the president’s $2,000 reduction plan amid rising fears of inflation and rising debt.
Beef costs have climbed to report highs, and but Individuals hold shopping for steaks.
Economists say that deep-rooted demand helps drive costs increased and there’s little signal it can ease anytime quickly.
Glynn Tonsor, a professor of agricultural economics at Kansas State College, advised Fox Information Digital that sturdy shopper demand continues to push beef costs upward, no matter provide fluctuations.
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“There’s nothing that forces me otherwise you or anyone else after we go into the grocery retailer to pay extra for beef. Persons are selecting to,” he stated.
“The buyer need for beef is powerful and, whatever the supply-side state of affairs, that has the impact of pulling costs up.”
The common value of beef in grocery shops climbed from about $8.40 per pound in March to $9.18 per pound by August 2025. (Ronaldo Schemidt/AFP / Getty Photos)
Based on USDA information, the typical value of beef in grocery shops climbed from about $8.40 per pound in March to $9.18 per pound by August 2025, a roughly 9% improve over that interval.
Individuals are nonetheless shopping for, although, in reality, greater than ever.
In 2024, customers spent over $40 billion on recent beef, which made up greater than half of all fresh-meat gross sales, in line with information from Beef Analysis, a contractor to the Nationwide Cattlemen’s Beef Affiliation.
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Business analysts say that whereas beef provides are anticipated to get even tighter in 2025, costs might climb a bit increased.
Regardless of these pressures, economists like Tonsor say Individuals’ loyalty to beef stays unmatched and that large-scale manufacturing is a part of what retains it inside attain for shoppers.
Cattle are proven in pens on the Cattlemen’s Columbus Livestock Public sale in Columbus, Texas, on Oct. 8, 2025. (Melissa Phillip/Houston Chronicle/Getty Photos / Getty Photos)
“I might argue that these economies of scale profit shoppers,” Tonsor stated. “The flexibility to function at a less expensive price per head and, finally, per pound produced offers us the flexibility to supply beef and each different merchandise we’re speaking about at a less expensive value. Something we try this loses these economies of scale truly hurts shoppers within the type of increased costs.”
However even with sturdy shopper urge for food retaining the market buoyant, ranchers are going through challenges on the opposite finish of the availability chain.
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Whereas sturdy demand is one purpose beef costs stay excessive, provide is one other.
Years of drought, excessive feed prices and an ageing ranching inhabitants have thinned herds throughout the nation, leaving the U.S. cattle provide at its lowest stage in additional than 70 years.
A ranch hand rounds up cattle on the Adams Ranch Inc. in St. Lucie County, Florida, on July 9, 2013. (Ty Wright/Bloomberg / Getty Photos)
Derrell Peel, a professor of agricultural economics at Oklahoma State College, stated the present provide crunch received’t be fastened in a single day.
“The very fact of the matter is there’s actually nothing anyone can do to alter this in a short time,” Peel stated. “We’re in a decent provide state of affairs that took a number of years to develop, and it’ll take a number of years to get out of it.”
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He famous that there’s no fast method to ease stress on cattle costs, because it takes roughly two years to deliver animals to market and a number of other years to rebuild herds.
In the meantime, the Trump administration says it’s working to deliver down beef costs by boosting provide by means of extra imports from nations like Argentina, whereas laying the groundwork for a long-term plan to strengthen the U.S. cattle trade.
