US beef prices have soared but farmers aren't making more money

Despite US beef prices reaching record highs—12% above last year and rising three times faster than general inflation—cattle ranchers like South Dakota farmer Eric Gropper aren't seeing increased profits because their costs have risen proportionally. The price surge is driven by a severe cattle shortage, the lowest herd size since 1951, caused by drought and disease, but farmers' expenses for feed, equipment, and water have also skyrocketed, offsetting their higher sale prices.