California Drought Hits Water Costs and Beef Prices Climb
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**Recent droughts in California pushed the cost of surface water for farmers and other users up by $487 per acre-foot, according to a new study by researchers at the University of California, Davis, more than triple the cost of water during an average year.
Researchers found greater use of California’s aquifers to store surface water during wet years could help stabilize water prices in drought years and benefit farms and the state’s economy.
**President Trump is preparing significant tariff cuts and new trade agreements aimed at easing high food prices, a top concern for voters heading into 2026.
The administration announced framework deals with Argentina, Guatemala, El Salvador and Ecuador that would reduce tariffs and other barriers on imports of beef, bananas, coffee and other staples.
Officials say the effort is designed to lower grocery bills that have remained elevated for years.
**America's beef bills are set to keep climbing, according to Omaha Steaks President and CEO Nate Rempe, who cautioned that the nation's shrinking cattle supply and record demand could stretch family budgets for years.
Rempe says by the third quarter of '26, families are going see $10 a pound ground beef.
Rempe's comments come the same day the White House announced several trade deals with tariff reductions on certain goods, like beef from Argentina.
www.agrimarketing.com/s/155494
