Tight cattle supplies from the smallest U.S. herd in 75 years continue to underpin elevated ground beef prices, with the national average reaching $6.89 per pound in July 2026 and hitting fresh records near $7.16 in August amid ongoing herd liquidation. Persistent drought, elevated feed and operating costs, and a New World screwworm outbreak have constrained cow slaughter and fed-cattle marketings, prompting the USDA to cut its 2026 beef production forecast four times to 24.877 billion pounds. Strong consumer demand for affordable protein has supported ground beef relative to pricier cuts, while rising imports—bolstered by temporary duty relief measures—are partially offsetting domestic shortfalls. Live cattle futures and retail benchmarks remain near multi-decade highs, with herd rebuilding expected to remain gradual through year-end.