Key Takeaways
- USDA Secretary predicts beef prices will drop by summer 2025 and remain low through 2026
- Omaha Steaks CEO warns of $10 per pound ground beef by 2026 without intervention
- Current beef prices at record highs due to 70-year low cattle inventory
- New administration plan includes opening 5 million acres of grazing land
Trump Administration Pledges to Lower Beef Prices by 2026
U.S. Agriculture Secretary Brooke Rollins has challenged predictions of $10-per-pound beef prices, asserting that the Trump administration’s new agricultural plan will bring costs down by next summer and maintain lower prices through 2026.
“We are moving toward opening up five million acres of grazing land,” Rollins told FOX Business. “The president is hyper-focused on this. Our formulas show prices will start coming down as soon as next spring, and certainly by summer and fall of next year.”
Industry Warning vs Government Response
Omaha Steaks CEO Nate Rempe issued a stark warning on Friday, predicting a “$10-per-pound reality” for ground beef by the third quarter of 2026 that could persist until 2027.
“We’re in for a bit of a haul here,” Rempe stated. “I don’t believe we’ll see prices come down in any meaningful way until sometime in 2027.”
Rollins countered: “He was very well-spoken, but his forecast is not going to be correct. The idea that we won’t get prices down until 2027 ignores important factors.”
Current Price Situation
Beef prices have reached record levels following a drought that reduced U.S. cattle inventory to its lowest point in 70 years. Recent data shows:
- Beef and veal prices increased 14.7% year-over-year in September
- Uncooked ground beef rose 12.9% during the same period
- Current average U.S. price for a pound of beef: $6.30
Root Causes of the Crisis
Secretary Rollins identified multiple factors driving the price surge:
“We are suffering from the last administration’s literal war on cattle,” she explained. “They wanted to reduce herd sizes due to climate concerns. Combine that with drought-related herd reduction and an 8% increase in beef demand – it’s a perfect storm.”
Policy Measures and Trade Deals
The administration announced new trade agreements that could reduce tariffs on beef exports from Argentina. However, these deals don’t increase the United States’ import quota for Argentine beef.
Congressional Perspective
Rep. Troy Downing (R-Mont.) expressed concern about the long-term implications of high beef prices.
“My concern is that beef prices get high enough that folks start looking for alternative proteins,” Downing said. “We need to focus on regrowing the American herd. These are short-term fixes to reach the real goal.”
He warned that at $10 per pound, budget-conscious families would stop buying beef, making industry recovery “really difficult.”
