LUBBOCK, Texas (RFD NEWS) — Milk prices are entering 2026 under heavy pressure as global and domestic production continues to outpace demand, raising concerns about how quickly the market can work through a growing surplus.
According to analysis from Ben Laine of Terrain, the all-milk price fell to $20 per hundredweight in October, more than 20 percent below a year earlier.
U.S. milk production has expanded sharply, with output up more than 4 percent year over year late in 2025, driven by the largest milk cow herd in decades and higher per-cow productivity. At the same time, milk output has increased across the European Union and New Zealand, flooding global markets and intensifying price competition for exports.
Product markets adjusted quickly. Butter prices led the downturn, followed by cheese, as ample cream supplies and expanded processing capacity collided with weaker global pricing. Nonfat dry milk declined more modestly, while whey remained comparatively firm due to strong protein demand.
Despite lower prices, production may be slow to respond. Beef-on-dairy revenues and risk management coverage have softened the immediate financial signal for some producers. Still, higher slaughter rates suggest adjustment has begun.
Alan Bjerga with the National Milk Producers Federation joined us to review new policies and regulations supporting the dairy industry and what they mean for the year ahead.
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National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
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Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.
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Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
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Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
January 15, 2026 12:51 PM
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