Cattle herds in the Midwest have less grass and water due to the drought. Even in California, ranchers are finding the cost of feed going through the roof.
Amador County rancher Duane Martin is selling off more of his cattle to maintain his profits.
Martin: "Our cow herd is the smallest, I believe, it's ever been in I don't know how many years, and our cow herd will never ever grow and be big again."
The Bureau of Labor Statistics reported ground beef went to a record high of $3.08 in July .
But the drought isn't alone to blame for high feed prices.
Michael Marsh of the Western United Dairymen says forty percent of the corn crop goes to ethanol, and that affects dairy farmers as well.
Marsh: "So that additional competition in the marketplace for one of the basic commodities fed to dairy cattle is almost out of sight."
Marsh predicts that chicken and pork prices will likely see spikes in the near future because of high feed prices.