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
Nearly 50,000 cattle impacted as producers search for feed and recovery options
Michael Cliver discusses his recent visit to the White House with the National Cattlemen’s Beef Association, and the Trump Administration’s “Working Families Tax Cuts” impact on ranching families.
Consistent sorghum quality supports strong export demand potential.
PLC and NCBA Chief Counsel Kaitlynn Glover reacts to the USDA’s new Grazing Action Plan, regulatory relief for ranchers, and the industry’s efforts to improve access to public lands.
Secretary Rollins is signaling a possible reopening of the southern border to Mexican feeder cattle as officials work to manage the threat of the New World Screwworm.
Education efforts give visitors a closer look at dairy farming at the Rodeo Austin Livestock Show with the help of a cute cow named Lucy.

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:

Processing disruptions could impact cattle markets if the strike continues.
Expanded access could boost demand for U.S. exports.
Margins shift across the chain based on timing.
Exports depend more on demand than currency shifts.
Spring Fieldwork Advances As Weather Patterns Shift Nationwide
Corn and soybean exports continue supporting demand levels.
Agriculture Shows
Misilla is the host of Learn to Grow and The Crafty Mom on YouTube. A Pacific Northwest mother of four who is passionate about organic gardening, sustainable living, homesteading, and education, her videos and social media posts consist of gardening, outdoor recreation, healthy living, crafts, science experiments, DIY projects, and delicious recipes.
Crop yield champions David Hula from Virginia and Randy Dowdy from Georgia are back for another season with the aim of schooling more growers across the country in their winning ways.
“Texas Agriculture Matters” is a fun, informative look at the role of agriculture in our daily lives. The show utilizes the trademark wit and wisdom of its host Commissioner Sid Miller — an 8th-generation farmer-rancher and 12-time World Champion rodeo cowboy — to explore a new Texas ag-related topic each week.
From barnyards and back roads to metros and highways, Simply Southern TV on RFD Network explores all of Alabama to bring you the best stories on farming, gardening, forestry, rural living, and youth in agriculture.