According to Bloomberg, cattle prices will see a 20 percent increase next year. The U.S. could see a six percent decrease in production, potentially dropping to 11.2 million metric tons of beef.
The drought in the Midwest was the worse since 1956 and forced farmers to reduce their herds because of crop shortages and cost. This directly led to an increase in beef prices priced at $4.772 per pound in October; a 19 percent increase since 2011. The USDA projects that food prices will rise 4 percent next year, which is a percent higher than typical years.