Rebels, let’s bust a myth.

When beef prices rise, most people assume ranchers are getting rich. The truth? For small regenerative producers, higher prices often mean smaller margins — or none at all.

In a recent podcast I sat down with August Horstmann of Horstmann Cattle Co. to unpack the harsh math behind U.S. beef economics — and how local processing, fair labor, and integrity-driven models collide with industrial-scale economics.

The True Cost of a Pound of Beef

Horstmann lays it bare: “Right now, when we take a cow to the processor and get it back as ground beef, we’re at about $8 a pound — just to break even.”

Here’s the breakdown:

• $6.50–$7.00/lb – live animal cost (based on current cattle market)

• $2.00/lb – processing fees

• Total: $8.50/lb before any marketing, Shopify fees, or labor

That’s before counting ad spend, email marketing, packaging, taxes, and customer support. Once you add it up, the “profit” becomes a rounding error. “People see a farm charging $10 or $12 a pound and think we’re raking it in,” Horstmann says. “But at best, we’re breaking even.”

Two Businesses, One Herd

To stay transparent, Horstmann runs two LLCs — Horstmann Livestock and Horstmann Cattle Co.

• Horstmann Livestock owns the live animals.

• Horstmann Cattle Co. buys finished animals at fair market rate and sells the meat directly to consumers.

This system forces accurate accounting — separating the animal production side from the retail meat side. “Otherwise,” Horstmann explains, “it’s impossible to know what each part really costs.”

Processing: The Biggest Bottleneck

Processing is where regenerative dreams often stall. Labor, distance, and throughput all dictate margins.

Horstmann notes, “It’s not that processors don’t exist — it’s that they’re expensive.”

Even in Missouri, where agriculture culture is strong and local plants are nearby, the cost per pound remains high. He could ship 40 cows to a larger facility and cut costs in half — but that would mean abandoning his local partners, "The owner of our processor lives ten minutes from here — he’ll be at my wedding next week. There’s something to that too. That’s our mission.”

The Economic Tug-of-War

Right now, Horstmann’s live cattle business is doing well. The meat business? Barely surviving,“We’ve hit the ceiling of what customers will pay per pound,” he says. “Until cattle prices come down, we’re just holding the line.”

This isn’t unique to Horstmann — it’s the reality for regenerative ranchers nationwide. The system rewards scale, not stewardship. And until consumers understand that “cheap beef” hides enormous unseen costs, small farms will keep fighting uphill.

Why August's Story Matters

Industrial ag measures success in volume. Regenerative farmers measure it in integrity.

Horstmann’s story isn’t about failure — it’s about fidelity. To the soil. To the workforce. To the relationships that make local food real.

The next time someone tells you $12 ground beef is “too expensive,” remind them: the real cost of food isn’t in the price tag — it’s in the principles behind it.

Viva La Regenaissance!

-Ryan Griggs, Founder/Owner