Beef-on-Dairy Calf Premiums Surge Above Tradition

Strong feedlot demand keeps beef-on-dairy calf premiums elevated.

P HAU BEEF ON DAIRY (1).jpg

Charlsie McKay

NASHVILLE, TENN. (RFD NEWS)Beef-on-dairy calves are commanding sharply higher prices than purebred dairy calves, reflecting strong demand from feedlots and tight feeder cattle supplies. Recent USDA-reported auction data from New Holland, Pennsylvania, shows 80–89 pound beef-cross dairy calves averaging $1,706 per head, compared to $1,329 for comparable dairy calves — a premium of about $377.

According to University of Tennessee Assistant Professor Charley Martinez, USDA market data shows this premium has widened significantly over time. From 2020 to 2024, beef-cross calves typically brought $130 to $200 more per head, with seasonal highs in late summer and early fall. In 2025, premiums climbed to roughly $450-$470 at their peak. Early 2026 data shows premiums already exceeding $400 per head, signaling even stronger relative demand.

That demand is being driven by feedlot preferences. Beef-on-dairy calves offer improved feed efficiency, growth rates, and carcass quality compared to traditional dairy calves. With no major increase in the U.S. beef cow herd yet, feeder cattle supplies remain tight, supporting higher prices.

Looking ahead, the direction of these premiums will depend on the expansion of the U.S. beef herd. A slow rebuild could keep beef-on-dairy calves competitive, while a faster increase in traditional beef supplies may narrow the price gap over time.

Farm-Level Takeaway: Strong feedlot demand keeps beef-on-dairy calf premiums elevated.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Jonathan Braley joins us to discuss rising cybersecurity threats in agriculture, the risks of ransomware attacks, and how Food and Ag-ISAC’s new guide can help businesses better protect themselves.
ASFMRA’s Skye Root joins us to discuss shifts in Western farmland markets, financial pressures facing producers, and the outside forces influencing land values and decision-making.
Culver’s is holding its annual “Scoops of Thanks Day” event, offering a scoop of frozen custard in exchange for a $1 donation supporting agricultural education.
Industry leaders say overseas markets remain critical as USDA pushes for broader export opportunities.
The Overstreet family’s cattle operation combines conservation practices with decades of resilience.
Cotton margins improved slightly, even as fertilizer and fuel costs rose due to the Strait of Hormuz disruption linked to the Iran war.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

March pork gains lifted total meat production, but first-quarter output still ran below last year.
Weekly export movement stayed solid, with corn and sorghum continuing to show the strongest overall pace.
Higher cow numbers and slightly stronger output per cow pushed milk production above last year.
Food inflation is still building in 2026, with beef leading pressure while eggs and dairy offer some relief.
Diesel has eased for now, but the larger 2026 energy outlook still points to elevated fuel costs.
Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.