Another factor, the people raising cows don't usually get to set the prices that their cows sell for. Really big operations typically sell cows by contract based on previous years sale prices and smaller operations will take their herd to the sale barns where buyers will place bids. So while the costs to the people raising the cows increase the buyers are trying to buy as cheaply as possible (even if it hurts next years supply of cows). So prices are forced lower and lower as the seller (who can't shop around for a better deal because every day you keep a cow, you've gotta pay for it one way or the other) has to take pretty much whatever price they are offered even when its at a loss.