The past year provided ample opportunities for dairy producers to capitalize on market conditions with both longstanding and new risk management strategies.

Prices for U.S. replacement dairy cows kept rising into the fourth quarter of 2025, reaching their highest level on record in October, according to latest quarterly estimates from the USDA. Meanwhile, average cull cow prices reached a peak in September 2025, held relatively steady in October and showed signs of stabilization as the year closes.

The December World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is for greater exports and lower ending stocks. Exports are raised 125 million bushels to 3.2 billion, reflecting shipments to date.

The USDA released catch-up Ag Prices report on Dec. 15, including factors used to calculate the September and October 2025 Dairy Margin Coverage (DMC) program margins.

The milk production forecast for 2025 is unchanged from the previous month, based on the data in the most recent Milk Production report. Estimated at 231.4 billion pounds, it was unchanged from November’s report.

Due to the government shutdown, the USDA resumed its monthly Livestock Slaughter report released on Dec. 1. Based on latest USDA monthly data, the number of dairy cull cows marketed through U.S. slaughter plants in October 2025 was estimated at 243,000.

Twenty states including California, Idaho and Kansas boosted milk production a combined 766 million pounds in October.

USDA reports influencing dairy markets remain delayed following the conclusion of the government shutdown, and at the same time, seasonal pressures from the holiday season are shaping the U.S. dairy outlook for December. Producers should evaluate their current risk management options and secure additional coverage as 2025 comes to a close.

The November World Agricultural Supply and Demand Estimates report (WASDE) showed this month’s 2025-26 U.S. corn outlook is for increases in supply, exports and ending stocks. Total supply is 144 million bushels higher as larger beginning stocks are partially offset by lower production.

The Progressive Cattle editorial staff cover the top news stories from 2025.