US cattle farmers face rising costs and weaker consumer demand

U.S. cattle herds are at a 75-year low and farmers report rising operating costs and softer local sales; the administration has moved to expand some beef imports to help cool ground beef prices.

Farmers in parts of the United States are reporting rising costs and weaker local sales. The national cattle herd has fallen to a 75-year low and beef prices have climbed. A Virginia rancher, Chris Stem, described higher expenses for feed, staff and equipment alongside lower customer demand at his butcher shop. The administration has announced steps to expand some beef imports as a measure to ease ground beef prices. Key facts: - The U.S. cattle population is at its lowest in 75 years, and beef and veal prices were reported up about 15% year-on-year in January. - Ground beef prices reached a new high in December and continued climbing, according to reports. - Farmers report higher operating costs for feed, staff and equipment while some local retail sales have fallen; one Virginia rancher said ribeye prices rose from $14.99 in 2019 to $32.99 and his shop's sales fell roughly 30%. - The administration has exempted some Brazilian beef from sharp tariffs and moved to expand imports of trimmings from Argentina to help cool ground beef prices, a step that some producers say could affect domestic production and profits. Summary: Rising input costs, depleted herd sizes and sustained consumer demand are compressing margins for many small cattle operations while some producers diversify income. Government import actions to ease retail prices are reported as a concern among ranchers. Undetermined at this time.