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
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.
The Ranger Road Fire spreads from the Oklahoma Panhandle into Kansas as high winds and red flag conditions persist
The global rice surplus outweighs tighter U.S. supplies, pressuring prices.
A weaker dollar supports export demand and may strengthen crop prices.
Smaller supplies could support cotton prices despite weak demand.
Federal aid helps, but producers will bear most of the losses. Balance sheets may look stable, but margins remain fragile without policy support.

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:

Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
Strong rail demand and higher fuel costs raise transportation risk even as barge and export flows stabilize.
Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
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.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Farm Traveler is for people who want to connect with their food and those who grow it. Thanks to direct-to-consumer businesses, agritourism, and social media, it’s now easier than ever to learn how our food is made and support local farmers. Here on the Farm Traveler, we want to connect you with businesses offering direct-to-consumer products you can try at home, agritourism sites you can visit with your family, and exciting new technologies that are changing how your food is being grown.