NASHVILLE, Tenn. (RFD-TV) — U.S. milk production continues to expand, but dairy producers are facing a very different price environment heading into winter. Recent milk production data (PDF Version) from the U.S. Department of Agriculture (USDA) show national milk output up 3.6 percent from August through October, driven by modest gains in cow numbers and slightly stronger production per cow. At the same time, federal order class prices have weakened considerably, creating a tighter margin picture for many farms.
October’s Class I Base price fell to $18.04 per hundredweight — more than $5 below last year — while Class III and Class IV prices also declined by similar margins. Those declines mirror weaker dairy product prices across most categories and suggest that additional downside pressure may continue into early 2026. USDA’s latest forecast expects next year’s all-milk price to average $1.80 per hundredweight lower.
Regionally, production gains were broad, with most states posting year-over-year increases. Butterfat and milk solids output also continued to rise, adding to the overall supply.
Looking ahead, USDA projects U.S. milk production will increase another 2.4 percent in 2026 as herd stabilization and efficiency gains continue.
Farm-Level Takeaway: Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
Tony St. James, RFD-TV Markets Specialist
From meatpacking settlements to landmark NEPA rulings, Roger McEowen outlines the top legal developments in 2025 that will shape agriculture in the years ahead.
January 20, 2026 03:39 PM
·
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.
January 20, 2026 03:25 PM
·
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.
January 20, 2026 02:47 PM
·
Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.
January 19, 2026 01:00 PM
·
U.S. agriculture entered the week with mixed signals as weather, logistics, and markets shaped early-year decisions. Here is a regional breakdown of domestic crop and livestock production for the week of Monday, Jan. 19, 2026.
January 19, 2026 11:40 AM
·
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.
January 18, 2026 07:00 AM
·
