U.S. cattle shortage hits 75-year low, driving up beef prices

The United States is experiencing a historic cattle shortage, with the national herd reaching its smallest size in 75 years. According to USDA data, the U.S. entered 2026 with approximately 86.2 million cattle and calves, a significant decline from the 94.7 million recorded in 2019.

This shortage is driving up consumer costs. The retail value of Choice beef rose approximately 23%, increasing from $8.51 per pound in August 2024 to $10.49 per pound in July 2026. Industry leaders, including the CEO of Omaha Steaks, attribute rising prices to the 72-year low in domestic cattle numbers.

Persistent drought has been a primary driver of the decline, as dry weather across the West and Plains depleted grasslands and water supplies. This forced many ranchers to sell cattle early, including breeding cows, which complicates efforts to rebuild the herd. In response to supply constraints, Tyson Foods announced plans to close beef facilities in Illinois and Utah and is pursuing the sale of a facility in Washington.