Congressman Troy Downing, R-Mont., joined “Mornings with Maria” to discuss the economic consequences of the shutdown, record beef prices and the president’s $2,000 relief plan amid growing fears of inflation and rising debt.
Beef prices are at record highs, yet Americans continue to buy steaks.
Economists say deep-rooted demand is helping to push up prices and there are few signs of a slowdown soon.
Glynn Tonsor, a professor of agricultural economics at Kansas State University, told Fox News Digital that strong consumer demand continues to push. beef price upwards, regardless of fluctuations in supply.
TRUMP ORDERS DOJ TO INVESTIGATE MEATPACKER COMPANIES FOR ‘ILLEGAL COLLUSION’ AMID RISE IN BEEF PRICES
“There’s nothing that requires you or anyone else when we go to the grocery store to pay more for beef. People choose to do that,” he said.
“Consumer desire for beef is strong and whatever the situation on the supply side, this has the effect of pushing up prices.”
The average price of beef in grocery stores increased from approximately $8.40 per pound in March to $9.18 per pound in August 2025. (Ronaldo Schemidt/AFP/Getty Images)
According to USDA data, the average price of beef in grocery stores increased from about $8.40 per pound in March to $9.18 per pound in August 2025, an increase of about 9% over that period.
Americans are still buying, but in fact, more than ever.
In 2024, shoppers spent more than $40 billion on fresh beef, which accounted for more than half of all fresh meat sales, according to data from Beef Research, a contractor for the National Cattlemen’s Beef Association.
BESSENT PREVENTS “PERFECT STORM” BREWING FOR BEEF PRICES
Industry analysts say that although beef supplies are expected to tighten further in 2025, prices could rise a little further.
Despite these pressures, economists like Tonsor say Americans’ loyalty to beef remains unmatched and that large-scale production helps keep it within reach of consumers.
Cattle are displayed in pens at the Cattlemen’s Columbus Livestock Auction in Columbus, Texas, October 8, 2025. (Melissa Phillip/Houston Chronicle/Getty Images / Getty Images)
“I would say these economies of scale benefit consumers,” Tonsor said. “The ability to operate at a lower cost per capita and, ultimately, per pound produced gives us the ability to offer beef and all the other products we’re talking about at a lower price. Anything we do that loses those economies of scale actually hurts consumers in the form of higher prices.”
But even as strong consumer appetite keeps the market vibrant, breeders face challenges at the other end of the supply chain.
TRUMP’S BEEF IMPORT PLAN Ignores a Key Issue Crushing America’s Cattle Ranchers
While strong demand is one reason beef prices remain high, supply is another.
Years of drought, high feed costs and an aging livestock population have reduced herds across the country, leaving U.S. livestock supplies at their lowest levels in more than 70 years.
A ranch worker rounds up cattle at Adams Ranch Inc. in St. Lucie County, Florida, July 9, 2013. (Ty Wright/Bloomberg/Getty Images)
Derrell Peel, a professor of agricultural economics at Oklahoma State University, said the current supply crisis won’t be resolved overnight.
“The fact is, there’s really nothing anyone can do to change this very quickly,” Peel said. “We are in a supply shortage situation that has taken several years to develop, and it will take several years to get out of it.”
CLICK HERE TO GET FOX BUSINESS ON THE GO
He stressed that there is no quick way to ease pressure on livestock prices, as it takes about two years to get animals to market and several years to replenish herds.
Meanwhile, the Trump administration says it is working to lower beef prices by increasing supply through more imports from countries like Argentina, while laying the groundwork for a long-term plan to strengthen the U.S. beef industry.
