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
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, November 17, 2025.
Ethanol markets remain mixed — weaker production and blend rates are being partially balanced by stronger exports as winter demand patterns take shape.
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.

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:

Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Despite global improvement, food insecurity remains deeply concentrated in vulnerable regions.
The Final Grain Stocks Report may be the last key figures we see if a government shutdown halts future updates.
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
The USDA’s August Cold Storage report shows shifting stock levels across major dairy, meat, and poultry products.
The total value of the U.S. potato crop was $4.60 billion in 2024, representing an 8% decrease from the previous year.
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.