CoBank: Fewer replacement heifers could mean trouble for U.S. milk supplies

Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.

The U.S. dairy industry might be looking at a shortage of milk-producing cows. The number of replacement heifers is already at a 20-year low and could get even worse before things turn around, which economists with CoBank’s Knowledge Exchange forecast will rebound two years from now, in 2027.

Exploring the Drop in Replacement Heifer Numbers

Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s Market Day Report for a further look. In his interview with RFD-TV’s own Tammi Arrender, Geiger discussed the reasons behind the drop in replacement heifers, what the decline in herd size means for the U.S. milk supply, and if he’s expecting a drop or growth in production.

“The U.S. dairy industry stands at a unique inflection point previously unseen in its modern-day history: Beef sales are contributing a larger portion to dairy farm profitability with each passing year,” wrote Geiger and his co-author, Abbi Prins, in the new report from CoBank’s Knowledge Exchange, Dairy Heifer Inventories to Shrink Further Before Rebounding in 2027. “This market dynamic has pushed dairy farmers to send more calves to beef feedlots and fewer to milk barns.”

Low Replacement Heifers = Long-Term Impact on Cattle Prices

Geiger also discussed the data’s impact on cattle prices, as the value has dramatically increased replacement heifer values, and whether they will remain elevated in the foreseeable future.

“To that end, this model predicts that dairy replacements will remain historically tight through 2026,” Geiger and Prins conclude. “To maintain cow numbers and the necessary milk production levels, dairy farmers will have to reduce dairy cow culling even further. This will be incredibly difficult given the existing pullback in culling over the previous two years.”

However, they also think the impact on the dairy herd could present a host of new problems for producers over the next few years as they try to match production goals with an older herd that will require support from emerging technology.

“This aging herd brings a unique set of management challenges as older dairy cows are more susceptible to fresh cow diseases, metabolic issues, and declining fertility rates,” the economists explained. “The good news is that genetics and health traits have improved over the past decade, and the modern dairy cow should be more up to the challenge.”

READ MORE: Dairy Heifer Inventories to Shrink Further Before Rebounding in 2027

Related Stories
Pasture, Rangeland and Forage (PRF) interval selection—not just participation—drives protection levels as rainfall patterns become less predictable across the South.
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
The allure of rural property — with its promise of space, freedom, and self-sufficiency — is undeniable, but local zoning regulations govern the reality.
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, Nov. 10, 2025.
The DOJ’s new antitrust probe could reshape beef-packer behavior, with potential impacts on fed-cattle prices, processor margins, and long-term competition across the supply chain.

LATEST STORIES BY THIS AUTHOR:

The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
Texas livestock producers face a heightened biosecurity threat as New World screwworm detections in northern Mexico coincide with FDA approval of the first topical treatment.
Rep. Michelle Fischbach shares her appreciation for rural communities and outlines how the Working Families Tax Cut is aimed to support farm families on RFD-TV’s Champions of Rural America.
Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
Henning Strauss, CEO of STRAUSS, joins us to share his company’s commitment to crafting tools that farmers wear.
Dr. Sally DeNotta with the American Association of Equine Practitioners (AAEP) provides horse owners with guidance on the recent outbreak of Equine Herpes Virus (EHV).