This may be the year for producers to move forward with herd and operation improvements, as cattle and milk pricing look favorable. Capitalize on these favorable market conditions and improve long-term profitability by focusing on animal health, nutrition, and genetics.
Cattle Inventories at a 64-Year Low
Drovers indicate that U.S. cattle inventories are at a 64-year low, driving up live cattle pricing. Live cattle pricing has traded over $200/ CWT and the blended class III & IV are over $20/CWT on the CME. Butter Fat and milk protein pricing have the ability to push CWT pricing even higher.
USDA Data Shows Opportunities for Increased Returns
NASS Data Confirms Low Cattle Numbers and a Slightly Increased Milk Cow Population
- Of the 86.7 million head inventory, all cows and heifers that have calved totaled 37.2 million.
- There are 27.9 million beef cows in the United States as of Jan. 1, 2025, down 1% from last year.
- The number of milk cows in the United States increased slightly to 9.35 million.
- U.S. calf crop was estimated at 33.5 million head, down slightly from previous year.
- All cattle on feed were at 14.3 million head, down 1% from 2024.
Higher Beef and Milk Values Present Opportunities to Increase Returns
Optimizing calf crop and body weight per calf can improve margin dollars and herd quality. Maximizing milk, milk fat, and protein can push milk prices to greater values with higher margins. Healthy cows make healthy milk, healthy calves, and healthy margins. Strategies for success include:
- Vaccine and animal health protocols
- Vitamin and mineral supplementation
- Improving genetics
- Meeting energy needs for reproduction, pregnancy, lactation, and growing calves
- Amino acid balancing
- Fatty acid balancing
Cattle prices are higher, and feed is lower compared to previous years. This opens the door for producers to make significant investments back into their operations and makes moving your herd forward more plausible. Proper health, growth, genetic makeup, and nutrition actively shape outcomes for years to come. Farmers can profit from these strategies even with lower milk and beef prices, and they stand to gain even more in strong years like 2025.
Despite concerns with global trade and market swings, low cattle numbers and high prices don’t seem to be going away in the short term. We need better, healthier, and more efficient cattle to keep us moving forward. Consider making improvements your cattle need to increase returns now and in the future.
Work with an IFA Nutritionist to Capitalize in 2025
Capture additional earned money by filling voids in your operation. Working with an IFA Feed and Nutrition expert can help you improve herd health and capitalize on these strong trends in 2025.
Written by Laun Hall, Ph.D., PAS, Nutritionist IFA and originally published in the IFA Cooperator magazine (vol. 91, no. 2) Summer 2025.
Laun Hall is an experienced and knowledgeable IFA Animal Nutritionist. He joined IFA in 2014 and today, Intermountain West cattle producers rely on his expertise to assist with nutrition, production and profitability. Laun earned his Bachelor of Science in Animal, Dairy, and Veterinary Sciences from Utah State University with a minor in biology and an emphasis in Grazing Systems for beef cattle. During his Undergraduate, he conducted a study on pasture evaluation and legumes. Following this, he earned his Master of Science in Animal Science at the University of Arizona with an emphasis on beef feedlot nutrition and neonatal Holstein calves. Later, Laun finished his PhD in Animal Science at the University of Arizona in Dairy Nutrition and Environmental Physiology.