Drought quickly makes it harder and more expensive for ranchers to raise cattle.<\/p>\n
As conditions worsen, hay production falls, feed gets more expensive and herd sizes shrink, according to data from the Kansas City Federal Reserve<\/a>.<\/p>\n IN TEXAS CATTLE COUNTRY, ONE RANCHER WELCOMES TRUMP\u2019S FOCUS ON DECADES OF THIN MARGINS<\/a><\/p>\n The U.S. cattle herd has fallen to its smallest level in 75 years. (Jonne Roriz\/Bloomberg\/Getty Images)<\/p>\n But even when conditions improve, rebuilding the herd takes time.<\/p>\n “The fact of the matter is there\u2019s really nothing anybody can do to change this very quickly,” said Derrell Peel, a professor of agricultural economics at Oklahoma<\/a> State University. “We\u2019re in a tight supply situation that took several years to develop, and it\u2019ll take several years to get out of it.”<\/p>\n Peel, who specializes in livestock marketing, said it takes roughly two years to bring cattle to market, and several more years to rebuild herds, leaving little room for short-term relief.<\/p>\n TRUMP’S BEEF IMPORT PLAN IGNORES KEY ISSUE SQUEEZING AMERICAN CATTLE RANCHERS<\/a><\/p>\n American cattle ranchers have weathered one setback after another, from market turmoil to extreme weather conditions. (Melina Mara\/The Washington Post\/Getty Images)<\/p>\n And the supply crunch is only part of the story.<\/p>\n The U.S. beef industry is also highly concentrated, with four major companies\u2014Tyson, JBS, Cargill and National Beef\u2014processing about 85% of the nation\u2019s grain-fed cattle.<\/p>\n That dominance has drawn scrutiny from regulators, including a Department of Justice investigation<\/a> into potential antitrust issues and pricing practices in the meatpacking industry.<\/p>\n Critics argue that level of consolidation gives meatpackers significant influence over prices, while industry groups say the market remains competitive.<\/p>\n Higher prices haven\u2019t scared off consumers.<\/p>\n According to U.S. Department of Agriculture data, the average price of beef climbed from about $8.70 per pound in March 2025 to $10.08 a year later, an increase of roughly 16%.<\/p>\n Even so, demand has held up. In 2025, shoppers spent more than $45 billion on beef<\/a>, buying more than 6.2 billion pounds, according to data from Beef Research, a contractor for the National Cattlemen\u2019s Beef Association.<\/p>\n![\"Rancher](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/cattle-rancher-cows-pasture.png\")
<\/p>\n![\"Mark](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/cattle-rancher-texas.png\")
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