Milk Wave Pressures Prices, Spurs Dairy Cow Culling

Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.

LUBBOCK, Texas (RFD-TV) — Profitable milk and cheaper feed in 2024 set the stage for a supply surge that’s now weighing on prices — and rippling into the beef complex. U.S. dairy cow numbers climbed to 9.52 million in August, the highest since 1993, with Texas at 699,000 head — the most since 1958. With more cows on line, processors are expanding capacity alongside them.

Output per cow is also up. August production reached 2,050 pounds per head — a record for the month and 1.3 percent above August 2024 — pushing three-month milk production 3.6 percent higher year over year. As product piles up, pricing has slipped: 40-lb cheddar blocks have ranged from $1.95 to $1.70 per pound and sit roughly 30 cents below last year; butter fell from $2.50 to about $1.70 by mid-October; and NFDM is near $1.14 — it’s low for 2025.

Those declines are flowing back to mailbox checks while cull dynamics tighten the beef pipeline. Beef cow slaughter remains lower, but dairy culling has matched last year since mid-year and could increase as margins narrow and cull values stay strong — absent any government buyout, the market will do the rationing.

Farm-Level Takeaway: Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Tony St. James, RFD-TV Markets Expert
Related Stories
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.
Farmers may benefit from higher turkey prices this holiday season, but risks from HPAI and limited poult placements could further strain the supply.
According to the most recent version of the Household Food Security Report for 2022-2023, food insecurity is on the rise in the U.S.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.

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:

New SDRP funding and expanded loss programs give producers additional tools to rebuild cash flow and stabilize operations after two years of severe weather losses.
The new WOTUS proposal narrows federal jurisdiction, restores key agricultural exclusions, and gives farmers clearer permitting rules after years of regulatory uncertainty.
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, November 17, 2025.
Ethanol markets remain mixed — weaker production and blend rates are being partially balanced by stronger exports as winter demand patterns take shape.
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.