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
Verified U.S. data show real leather’s carbon footprint is lower than advertised — an edge for the American cattle industry in both marketing and byproduct value.
Stagger buys and diversifies fertilizer sources — watch CBAM, India’s tenders, and Brazil’s import pace to time urea, phosphate, and potash purchases.
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
Pork producers should prioritize health and productivity gains, hedge feed and hogs selectively, and watch Brazil’s export pace and China’s sow policy for price signals.
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
AFBF Economist Danny Munch shares how passing the Whole Milk for Healthy Kids Act could give the dairy industry a needed boost.

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:

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.
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.
If confirmed, early Chinese buys tighten nearby Gulf/PNW capacity and could bump basis in export-oriented regions.
Trade pacts with Malaysia and Cambodia unlock tariff-free and preferential lanes for key U.S. farm goods, expanding long-term demand in Southeast Asia.