The July Feed Outlook report shows record-high U.S. corn production is projected for the 2025-26 marketing year, based on the season’s first survey-based corn-yield forecast of the year and updated area estimates from the USDA National Agricultural Statistics Service.

Cull cow slaughter rates increase despite a smaller dairy herd and increased demand and prices for dairy cow replacements.

Nineteen states including California, Texas and Kansas boosted milk production a combined 598 million pounds in July.

In the news affecting dairy producers' bottom lines the third week of August 2025: The September Class I base milk price falls 23 cents, U.S.-EU trade agreement makes progress for dairy, GDT index down slightly, family-owned farms account for 95% of U.S. farms, and the USDA blocks taxpayer dollars for solar panels on prime farmland.

The August World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is for sharply higher supplies, greater domestic use and exports, and larger ending stocks. Projected beginning stocks for 2025-26 are 35 million bushels lower based on a slightly higher use forecast for 2024-25.

The milk production forecasts for 2025 and 2026 are raised from last month. The cow inventories are raised for both years based on the most recent data in the NASS Milk Production report.

Halfway through 2025, and the markets are favoring U.S. dairy product exports in part to continued price advantages on the global scene but also improved trade relations with China, which suppressed sales earlier in the year.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report July 31, which includes feed costs and milk prices used to calculate the June Dairy Margin Coverage (DMC) program margins and indemnity payments.

Cull cow slaughter rates have slowed since March due to a smaller dairy herd and increased demand and prices for dairy cow replacements.