In Arkansas, beef experts are sounding the alarm on more likely price hikes in the coming months. That’s the word from James Mitchell, economist and assistant professor at the University of Arkansas Division of Agriculture. Mitchell say several factors are driving costs up: record low cattle inventories, years of sustained drought, and surging input costs facing rancher.
As the independent, statewide multimedia news organization Talk Business & Politics reported Monday, February 23, 2026, beef prices already increased by 15% across the board last year, with U.S. cattle inventories at a 75-year low (87 million head nationwide).
The massive drop in cattle inventories was precipitated largely by years of drought-induced cattle liquidations. And according to the U.S. Department of Agriculture’s (USDA) Economic Research Service, that agency forecasts another 6.9% increase in wholesale beef prices for 2026.
None of this is good news for Arkansas, which ranks 11th in the country for beef cow production. According to the Arkansas Beef Council, the industry accounts for half a billion dollars to the state’s economy. Despite soaring beef prices, consumer demand over the past two and a half years has yet to waiver, or migrate to other forms of protein content instead, namely the choice of chicken or pork.
In fact, the USDA estimates the average American will consume 59.5 lb. beef in 2026, up three-tenths of a pound from 2025. The question therefore becomes what may be the cost threshold at which beef loyalty gives way to cost-conscious shopping realities.
