The U.S. dairy industry is growing, providing ample opportunity for producers. The $76 billion category is larger than any other, including alcohol.
However, CoBank economist Corey Geiger warns that the growth does not come without some challenges.
“Sixteen to 17% of our dairy products go to export in the United States,” Geiger explains. “So with the word ‘tariff’ coming about...you know, issues in that area, we might see a little bit of slowed sales. The upward trajectory in the dairy industry is strong, and actually, in 2024, milk beverage sales, fluid milk, were actually stable. So, if we can stabilize that category and see great growth in cheese, butter, and whey proteins—it’s a bright future.”
While those tariff concerns have been held off for a month, the market is still facing unprecedented volatility.
“We were looking at a little more supportive to that market just a couple of weeks ago, but the unprecedented volatility in the cheese market and demand being about a half a percent slower, and then the perception on what tariffs could do really kind of knocked the support out under that market,” notes JSA Dairy Division Lead Robin Schmahl. “And so, we might be looking at something a little bit less as far as an average price than what we were looking at maybe about three weeks ago.”
The USDA’s latest milk production estimates show that in December, milk in the 24 major producing states totaled 18 billion pounds.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.
January 14, 2026 12:17 PM
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RealAg Radio host Shaun Haney discusses the latest developments in the Supreme Court, trade tariffs, and the future of the USMCA under President Donald Trump.
January 14, 2026 11:54 AM
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The American Farm Bureau Federation’s 2026 agenda centers on labor stability, biosecurity, and economic resilience for family farms. Expanded DMC coverage improves risk protection for dairy operations facing tighter margins.
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Freight volatility increasingly determines export margins, making logistics costs as important as price in marketing decisions.
January 14, 2026 06:00 AM
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Secretary Rollins also met with specialty crop producers at a local strawberry farm to discuss workforce needs and the Trump Administration’s recent wins related to significantly cutting the cost of H-2A labor for California farmers.
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China’s beef policy risk stems from domestic volatility, making export demand inherently unstable. Jake Charleston with Specialty Risk Insurance offers his perspective on cattle markets, risk management, and producer sentiment.
January 13, 2026 02:13 PM
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USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
January 13, 2026 01:53 PM
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Larger grain stocks increase supply pressure, but strong fall disappearance — especially for corn and sorghum — suggests demand remains an important offset.
January 13, 2026 01:02 PM
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Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
January 13, 2026 06:00 AM
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