Milk Production Rises As Herd Expansion Continues Nationwide

Growing milk supply may pressure prices ahead.

dairy ag labor reform 1280.jpg

Market Day Report

WASHINGTON, D.C. (RFD NEWS) — Milk production increased in February as herd growth and improved yields continue to expand U.S. dairy output, adding pressure on prices but supporting export potential.

The U.S. Department of Agriculture (USDA) reports U.S. milk production at 18.3 billion pounds, up 2.9 percent from a year ago. In the 24 major states, production reached 17.6 billion pounds, up 3.1 percent. Output per cow also improved, with national averages rising to 1,899 pounds per head, reflecting continued gains in productivity.

Farm-Level Takeaway: Growing milk supply may pressure prices ahead.
Tony St. James, RFD NEWS Markets Specialist

Operationally, herd expansion remains a key driver. The U.S. dairy herd reached 9.62 million head, up 211,000 from last year and continuing a steady upward trend. Producers are maintaining larger herds while also improving milk components and efficiency, supporting overall production growth.

Regionally, expansion remains concentrated in key dairy states, including Texas, Idaho, and South Dakota, while some traditional regions show more modest changes. Increased processing capacity in growth regions is also supporting higher output levels.

Looking ahead, rising milk supplies could put downward pressure on domestic prices, but stronger export demand and competitive pricing may help balance markets.

Related Stories
Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
USDA data confirms that U.S. agriculture remains overwhelmingly family-run despite structural shifts in scale and production, according to a new analystis by Farm Flavor.
Stronger sorghum genetics could enhance the resilience of bioenergy crops and broaden production options for growers in harsher climates.
American Farm Bureau Federation (AFBF) economist Danny Munch joined us on Thursday’s Market Day Report to break down the scope of the U.S. Christmas Tree industry and what growers are up against.
Rising beef supplies and lower cattle prices, weaker hog markets, and softening dairy prices will shape producer margins heading into 2026.
Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a

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:

Structural efficiency supports cattle prices and resilience — breaking it risks higher costs and greater volatility.
Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.
Winter Weather, Drought Shape Early 2026 Farm Conditions