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
In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
Chef and influencer Marcia Smart joined us to discuss Italian-inspired beef dishes, nutrition for active lifestyles, and how global events shape home cooking.
Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.

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:

Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
Rural population growth and stabilizing economic indicators point to post-pandemic recovery, but uneven income, shifting industries, and regional divides remain key challenges for rural communities.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
Decoupled base acres may amplify income inequality and distort planting decisions as farm program payments increase.
Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
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.