Dairy replacement inventories expected to rebound next year

On most dairy farms, the bottom line is being driven by the beef check rather than the milk check. As a result, dairy replacement numbers have dropped to their lowest level in nearly 50 years. To compensate for fewer replacement heifers, dairy cows are staying in the herd longer. This dynamic started three years ago, and the U.S. dairy herd is now at the highest level in 30 years. According to a new report from CoBank, replacement heifer inventories are forecast to decline further this year before beginning to rebound in 2027 and 2028.

Dairy farms can use H-2A regulations as seasonal labor

The Trump administration has clarified its H-2A rules for dairy farms. Dairies can use the temporary farm worker program, but the jobs must be temporary or seasonal. The Department of Homeland Security and the Department of Labor policy statement said: “Dairying work does not require special procedures apart from those available under existing statutes and regulations.” Agriculture Secretary Brooke Rollins said labor remains a significant challenge for dairy farmers and “the clarification provides additional certainty.” The dairy industry has sought the year-round availability of international workers due to ongoing demand for agricultural labor.

NMPF welcomes H-2A clarification

The National Milk Producers Federation released a statement saying it appreciates the H-2A clarification: “The dairy industry has long sought access to the H-2A program, and this guidance will help open the door for dairies to begin using this program.” NMPF said it is committed to working with both the administration and Congress to find a long-term solution for the dairy workforce.

Ag groups respond to labor decision

National Council of Farmer Cooperatives CEO Duane Simpson said the H-2A change helps address a critical shortcoming of the program for a legal, stable workforce. American Farm Bureau Federation President Zippy Duvall thanked the Trump administration for this decision but said it does not solve the problem; “Legislation is needed to achieve durable and lasting reform.”

Farm assistance, trade expansion highlight Senate hearing

During the latest Senate agriculture committee hearing, Chairman John Boozman said lawmakers are discussing support beyond the Farmer Bridge Assistance program. Agriculture Secretary Brooke Rollins emphasized trade as a long-term solution. “We’ve cut the agricultural trade deficit in half in one year,” Rollins said. “Corn exports are going to be record-breaking. We expect a 35% increase in volume in corn exports. Dairy exports are going to be up almost 10%. Wheat exports are up 8%. Soybean oil is up 129%. This is what farmers want. They don’t want to farm for a check from the government. They want a farm to be able to sell their market, their goods on an open market that’s fair.”

Klobuchar questions tariffs, USDA reorganization

Minnesota Senator Amy Klobuchar raised concerns about rising input costs, tariffs and U.S. Department of Agriculture staffing cuts during a Senate agriculture committee hearing. Klobuchar said farmers are facing increasing financial stress; “The administration’s across-the-board tariffs have been terrible for farmers.” Klobuchar also questioned the timing of USDA’s reorganization effort, saying agency staffing reductions could impact service to farmers during a challenging period for agriculture. “My concern with the USDA right now is this pushing forward of a reorg plan right in the middle of all of this mess,” she said. “The department has already lost around 20% of its employees, meaning fewer FSA staff to process farm loan and disaster aid applications, just at a time when farmers are facing more problems.”

Lawsuit filed over dairy checkoff program

Three Wisconsin dairy farmers are suing USDA and the dairy checkoff program, claiming it forces dairy farmers to fund organizations that promote radical environmental and social agendas. The Wisconsin Institute for Law and Liberty filed the lawsuit. It wants the dairy checkoff program to focus on traditional research and promotional programs, not climate change or sustainability initiatives.

Financial stress begins to emerge

The Farm Credit System remains financially strong, but signs of stress are beginning to appear in parts of the farm economy. According to the latest update, overall loan quality remains solid despite ongoing challenges facing some producers. Higher input costs, lower commodity prices and tighter profit margins have increased financial pressure. Officials said FCS continues to maintain a strong financial position, but they are monitoring conditions closely as economic challenges persist. FCS officials said loan quality remains solid overall, although signs of financial pressure are beginning to emerge. Lenders say the financial outlook will largely depend on crop production, livestock markets and input costs throughout the remainder of the year.

Farm expenses keep on rising

The farmer’s cost of production is expected to reach record highs in 2027. According to the American Farm Bureau Market Intel Report, total production costs have more than doubled for major crops in the last 10 years. The biggest hit to the checkbook has been due to higher energy and fertilizer prices. Higher costs for seed, chemicals, labor, machinery and cash rents are cited as reasons for the all-time high in farm production costs forecast for next year.

John Rich: A special envoy for landowners

President Donald Trump has appointed country music singer-songwriter John Rich as a special envoy for American landowners. The USDA news release said Rich “will engage directly with landowners across the country and work to address challenges posed by government overreach, activist pressure campaigns and outside interests that threaten private property rights and long-term viability of rural communities.” In the 1990s, Rich was part of the band Lonestar. Since 2002, he has been one-half of the duo Big & Rich.

Sprakel joins Feedworks USA

Feedworks USA has announced that Jill Sprakel has joined the team as the Northern Plains technical sales manager. Sprakel will work with dairy producers, nutritionists, veterinarians and feed mills across North and South Dakota, Nebraska, Minnesota and Iowa. Prior to joining Feedworks USA, Sprakel worked with ImmuCell Corporation.

Trivia challenge

A single cup of cottage cheese contains 12-14 grams of protein. That’s more protein than found in two eggs. That answers our last trivia question. For this week’s trivia, how many servings of dairy products do teens need each day? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.