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 now the U.S. dairy herd is 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.
