Dairy Income Slipped in 2025 Despite Higher Milk Output

The USDA’s annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.

news_adobe stock.png

Adobe Stock

WASHINGTON, D.C. (RFD NEWS) — U.S. milk production increased in 2025, but lower prices pulled cash receipts and producer returns below the previous year. USDA’s annual summary said the industry produced more milk with more cows and better output per cow, even as revenue weakened.

Milk production totaled 232 billion pounds in 2025, up 2.6 percent from 2024. Production per cow averaged 24,390 pounds, up 218 pounds, while the average number of milk cows on farms rose by 153,000 head to 9.50 million.

Marketings also moved higher. USDA said milk marketings reached 231 billion pounds, up 2.6 percent from the year before. That means more milk was moving into commercial channels even as price pressure built on the income side.

Cash receipts from milk marketings totaled $48.9 billion, down 3.7 percent from 2024. Producer returns averaged $21.19 per hundredweight, which was 6.1 percent below the previous year.

The annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.

Farm-Level Takeaway: Dairy producers made more milk in 2025, but softer prices trimmed returns and cash receipts.
Tony St. James, RFD News Markets Specialist
Related Stories
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.
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.
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.
The Senate has cleared a path to reopen USDA, but full restoration of services depends on House approval and the President’s signature.

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:

Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
Treat succession like any major crop — plan early, document clearly, and calibrate cash flow so the next generation can succeed.
Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
With core input inflation still hovering high, growers and retailers should plan pricing and promotions with tighter margins in mind — target early sales, leverage bundle deals, and secure logistics ahead of peak Halloween demand.
The U.S.-China summit raises hopes for stronger exports and reduced barriers, but U.S. ag players should remain strategically cautious until concrete volumes and certifications materialize.