Beef prices in the United States are at record highs heading into the holiday season — and tariffs aren’t the only reason.
At Oak Barn Beef in West Point, Nebraska, family tradition runs deep. Owner and operator Hannah Klitz is a fifth‑generation cattle producer. Alongside her husband, she sells farm‑to‑table beef to the local community and ships products nationwide.
"Quarter four is normally our busiest quarter, just because of all of the gifting — and it's one of my favorite times of year," Klitz said. "But I spend almost all year preparing."
This year, the couple faced a difficult choice.
"We have had to raise prices this year just with rising input costs," Klitz said.
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The beef industry is battling multiple challenges: a prolonged drought across key cattle states, record‑high feed costs and the smallest U.S. cattle herd in 75 years. All have contributed to the record prices consumers are paying in grocery stores.
"There's two reasons — we're producing less beef and consumers like beef, so they're buying," said David Anderson, a livestock economist at Texas A&M University. "That helps keep prices high."
Anderson said the effects of past droughts are still rippling through the industry.
"Drought has some immediate effects, but also long‑term effects that happen the next year," he said.
Immediate effects include purchasing more feed, while long‑term impacts include less productive cows and smaller herds.
"Also just the extra labor from not having feed or water," Klitz added. "It's been really hard for a lot of producers."
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Tighter supplies are pushing up the cost of lean and ground beef — the most commonly imported in the U.S. High tariffs on Brazilian beef imports and restrictions on Mexican beef imports tied to screwworm concerns are also driving prices higher.
To offer something new and sustain margins, Klitz has added products like turkeys.
"Farm‑to‑table businesses really are open to helping each other," she said. "I think that makes all the difference."
Despite higher prices, Klitz said she is thankful customers continue to support her business.
"And that's something we are very grateful for," she said.
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