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
Jeramy Stephens of National Land Realty breaks down current trends in the farmland real estate market and how landowners should consider water availability and its impact on land values as they plan for the year ahead.
Modest rate relief may come late in 2026, but borrowing costs are likely to stay elevated.
U.S. Senator Roger Marshall of Kansas discusses expected changes to the 45Z tax credit and what they could mean for agriculture and rural America.
Purdue University Professor of Agricultural Economics Dr. Jim Mintert shares a closer look at farmer sentiment and the key issues shaping the agricultural economy in January.
China-led demand continues to anchor soybean and sorghum exports despite weekly swings.
Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.

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:

Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
Farm CPA Paul Neiffer helps producers navigate farm program payments and understand the key details farmers need to know.
Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.