2025 NORTHEAST
DAIRY FARM
SUMMARY
& MID-YEAR OUTLOOK
Prepared by: Farm Credit East Knowledge Exchange Chris Laughton, Editor
June 2026
ACKNOWLEDGMENTS The Northeast Dairy Farm Summary (DFS) was first published in 1980 with data from 1979. No research project of this scope would be possible without the collaboration and hard work of many individuals. The current author would like to thank the authors who preceded him in writing the DFS over the past 46 years. In addition, thanks are due to all Farm Credit lending and financial services staff, who reconciled the financial data from numerous farms and entered the information into our system. Every year, their hard work provides the raw material for creating the DFS. This report is truly a “team effort.” Most importantly, the entire Farm Credit team extends our sincere thanks to the hardworking Northeast dairy producers who entrusted their farm data to this project. We hope the end product is helpful in your continual pursuit of improved farm management. You inspire us all with the valuable work that you do.
Copyright 2026 by Farm Credit East, ACA All rights reserved. No part of this material may be reproduced by any means either in print or electronically, without permission.
HIGHLIGHTS OF THE
2025 NORTHEAST DAIRY FARM SUMMARY Net earnings for our sample of 136 Northeast farms increased by 34%, to an average of $791 per cow (when averaged across size categories) in 2025,1 from $592 per cow in 2024. Total costs increased by 4% from 2024 to 2025. Total costs including depreciation and family living per cwt. increased by $1.07 per cwt., from $26.54 to $27.61 in 2025. Net cost of production2 (NCOP) decreased to $19.83 per cwt., $1.66 lower than 2024’s $21.49. Multiple factors contributed to this decrease including greater non-milk farm income and larger herd sizes in our sample. Feed expense, a farm’s largest cost, increased from $1,760 per cow in 2024 to $2,002 per cow in 2025. Productivity increased. Per cow production in our sample herds was 3.4% greater than the prior year. Average cows per worker increased from 47 to 51. Cash flow was sufficient, on average, to meet all financial commitments (e.g., operating expenses, debt repayment, family living and income taxes), resulting in an average cash margin (excluding government payments) per cwt. of $2.12.3 Percent net worth in our sample declined to 62%. This was largely due to an increase in total liabilities. Total debt-per-cow increased from $6,514 to $7,744.
PROFILE OF THE AVERAGE DFS DAIRY FARM4 2024
2025
Number of Cows
820
941
Milk Sold per Cow
25,130 lbs.
25,976 lbs.
Milk Sold per Worker
1,195,659 lbs.
1,338,310 lbs.
Milk Price per Cwt.
$23.93
$22.21
NCOP per Cwt.
$21.49
$19.83
Net Worth
68%
62%
Net Earnings per Cow
$592
$791
Net Household Income per Cow
$654
$845
Return on Assets
4.9%
7.8%
On an accrual basis, after family living, not including nonfarm income. Total farm expense, plus family living, less non-milk income. For more information, see Figure 6. 3 See Figure 7. 4 Averaged across size categories. 1 2
NORTHEAST DAIRY FARM SUMMARY 2025
i
ii 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE OF CONTENTS Highlights of the 2025 Northeast Dairy Farm Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Analysis of 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Milk Prices Declined; Feed Costs Increased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Net Cost of Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Cash Flow from Milk Income Decreases Slightly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Capital Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Net Worth Decreases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Net Margin by Profit Quartile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Farm Size and Profitability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Farm Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Demand for Dairy Continues to Grow by Corey Geiger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Financial Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Comparison between Years 2021-2025 Table A-1. Earnings Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Table A-2. Earnings Worksheet per Cwt.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Table A-3. Balance Sheet Summary – Year-End. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Table A-4. Evaluation Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2025 Data by Herd Size Table B-1. Earnings Worksheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Table B-2. Balance Sheet Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Table B-3. Evaluation Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 2025 Data by Profit Groups Table C-1. Earnings Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Table C-2. Balance Sheet Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Table C-3. Evaluation Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2025 Data by Regions Table D-1. Earnings Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Table D-2. Balance Sheet Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Table D-3. Evaluation Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
NORTHEAST DAIRY FARM SUMMARY 2025
iii
INDEX OF FIGURES Profile of the Average Northeast Dairy Farm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Figure 1: Dairy Farm Profitability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Figure 2A: Net Earnings per Cow (1979-2025). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 2B: Net Earnings per Cow (2010-2025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 3: Statistical Uniform Price, Federal Order One. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Figure 4: Comparison of Multiyear Averages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Figure 5A: Farm Milk Prices per Cwt. (Nominal vs. 5-Year Average). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Figure 5B: Farm Milk Prices per Cwt. (Nominal vs. Real Dollars). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Figure 6: Cost of Producing Milk - Accrual Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 6A: Wage Rates for Hired Workers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Figure 7: NCOP by Region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Figure 8: Specific Cost Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Figure 9: NCOP by Herd Size. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Figure 10: Cash Flow Analysis per Cwt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Figure 11: Capital Efficiency.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Figure 12: Change in Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Figure 13: Range of 2025 Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Figure 14: Farm Size and Profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Figure 15A: Total Liabilities per Cow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 15B: Total Liabilities per Cow (Nominal vs. Real Dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
iv 2025 NORTHEAST DAIRY FARM SUMMARY
INTRODUCTION Farm Credit East is pleased to present the 2025 Northeast Dairy Farm Summary (DFS) and outlook for the remainder of 2026. Now in its 46th year, the annual DFS is a unique project within the U.S. dairy industry, providing a major regional summary of actual dairy farm business results. Through assessment of the financial health and progress of Northeast dairy farm businesses, it is intended to provide dairy producers, Farm Credit staff, Northeast public policymakers and dairy industry leaders with a better understanding of the current status of the Northeast’s largest farm sector. The DFS has never been a true longitudinal study as the dairy farms analyzed in the report change slightly from year to year. However, we believe the study provides important insights as to the changes in economics of dairy farming in the region yearover-year and over the long term. In this year’s report, we believe the sample of 136 farm operations represents a cross section of more profitable-than-average Northeast dairy farm businesses, most of which maintain loan relationships with Farm Credit. The farms analyzed range from 70 milking cows to more than 5,000. While our sample is skewed towards larger farms than the actual distribution of farm sizes in the region, we have weighted each of the three size categories (1-299 cows; 300-699 cows; and 700 or more) equally in calculating all-farm averages. This ensures the results are more reflective of the distribution of herd sizes in the Northeast. By only including farms able to supply complete and accurate financial statements by May 1, 2026, the sample is likely skewed toward farms with good records that may be more profitable than the true average of all dairy producers in the region. Thus, we should emphasize that this report presents data based on the sample of dairy farms that chose to participate in our study and is not necessarily representative of the entirety of the Northeast dairy farm industry. All farms included in the study received the majority of their income from milk and cattle sales, but many farms have additional business income, such as custom work, maple sugaring or crop sales. We have purposely not excluded these farms from the sample (unless such income exceeds 50% of total farm income) as we believe it reflects the diverse nature of Northeast dairying, where many producers have supplementary income streams. If such ancillary business activity constitutes a separate enterprise from dairying, and both revenue and expenses can be broken out, the net return is included in nonfarm income, along with income from off-farm employment. If the expenses of this ancillary activity cannot be separated from the dairy farming expenses (labor costs are often co-mingled), such revenue is included in other farm income. Thus, the total farm income represented in this report often includes some return from these affiliated business ventures, increasing the income that would have been generated from the dairy enterprise alone. This is typically more significant for farms with smaller herd sizes. The DFS tends to focus discussion on the “average farm.” While there is no single farm which is exactly “average,” focusing on the average farm within our sample allows us to highlight changes of Northeast dairy farms over time. While the use of averages may lead to an effective discussion with respect to change and overall industry trends, it tends to minimize the best and worst conditions experienced by farms within the sample. This continues to be true in a year such as 2025. While the “average farm” within our group of 136 had $791 per cow in net earnings, many of the farms in our sample had net losses. Results ranged from more than $3,000 in net earnings per cow, to a loss of more than $2,000 per cow. The standard deviation of net earnings was $990, indicating a great deal of variability within the sample. NORTHEAST DAIRY FARM SUMMARY 2025
1
Focusing on average results discounts the fact that while many producers achieve positive earnings, others, of all sizes, struggle to make a profit in this challenging industry due to a variety of factors. For this reason, we also look at the data within individual herd-size groups and within the top and bottom profitability groups. The DFS has been published for 46 consecutive years, beginning in 1980 with 1979 financial data. Past editions are available upon request.
ANALYSIS OF 2025 MILK PRICE DECLINED; FEED COSTS INCREASED Figure 1
Dairy Farm Profitability Net Earnings per Cow*
Standard Deviation
Return on Assets**
Return on Equity***
2021
$ 374
$ 609
3.8%
4.0%
2022
$ 945
$ 784
6.9%
8.2%
2023
$ 292
$ 700
3.1%
2.3%
2024
$ 592
$ 938
4.9%
4.4%
2025
$ 791
$ 990
7.8%
6.3%
3-Year Average
$ 558
5.3%
4.3%
5-Year Average
$ 599
5.3%
5.0%
10-Year Average
$ 437
4.4%
4.1%
Net earnings does not include nonfarm income. Return on assets = (net earnings + interest) / average total assets *** Return on equity = net earnings / average net worth *
**
2 2025 NORTHEAST DAIRY FARM SUMMARY
NORTHEAST DAIRY FARM SUMMARY 2025
3
Figure 2A
Net Earnings Per Cow 1979-2025 $1,200 $1,000 $800 $600 $400 $200 $0 -$200 -$400
25
23
20
21
20
19
20
17
20
20
15
13
20
20
11
09
20
07
20
05
20
03
20
01
20
99
20
97
19
19
95
93
19
19
91
89
19
87
19
85
19
83
19
81
19
19
19
79
-$600
The milk price farmers received in 2025 decreased by $1.72 per cwt., on average, compared to the prior year. The milk price received by the farms in our sample averaged $23.93 in 2024. This declined to $22.21 in 2025.
Figure 2B
Net Earnings Per Cow 2010-2025 $1,200 $1,000 $800 $600 $400 $200 $0
4 2025 NORTHEAST DAIRY FARM SUMMARY
25 20
24 20
23 20
22 20
21 20
19 20
18 20
17 20
16 20
15 20
14 20
13 20
12 20
11 20
20
10
-$200
The Federal Milk Marketing Order One (FMMO1) statistical uniform price (at 3.5% butterfat) decreased from an average of $21.44 in 2024 to an average of $19.74 in 2025, as can be seen in Figure 3. The average net cost of production, adjusting for non-milk farm income, decreased from $21.49/cwt. to $19.83/cwt., a change of -$1.66. Looking back over a five-year period, farms in our 2025 sample realized average net earnings of $791 per cow, substantially above the 5-year average, which was $599 per cow. Earnings ranged from $292 per cow in 2023 to a high of $945 in 2022 (not counting nonfarm income, such as a spouse’s off-farm job).
Figure 3
FMMO1 Statistical Uniform Price at 3.5% Butterfat
$28.00 $26.00 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00
Apr 26
Jan 26
Oct 25
Jul 25
Apr 25
Jan 25
Oct 24
Jul 24
Apr 24
Jan 24
Oct 23
Jul 23
Apr 23
Jan 23
Oct 22
Jul 22
Apr 22
Jan 22
Oct 21
Jul 21
Apr 21
Jan 21
$12.00
Source: Federal Milk Marketing Order One, Statistical Uniform Price at 3.5% Butterfat
In the 46-year history of the DFS, 2025 ranks 4th in terms of profitability in nominal terms, but 7th when adjusted for inflation. 2025’s net earnings of $791 per cow places it well above the mean of $221 in overall nominal net earnings for the study period. While the cumulative return for DFS farms over the life of the study remains positive, the average farm has lost money in 15 of the 46 years of the DFS. Farms that experience multiple years of net losses have tended to drop out of the study, often exiting the industry, leaving more profitable farms remaining.
NORTHEAST DAIRY FARM SUMMARY 2025
5
This summary uses three primary measures of profitability, each of which provides a useful perspective on dairy farm financial performance: Net earnings per cow measures sheer dollars of profit earned and includes all farm business sources of income. Return on assets (ROA) measures profit earned relative to the present market value of total farm assets. This indicates the earning power of each dollar invested in the farming operation, regardless of whether it comes from the farm operator or was borrowed from a lender. Return on equity (ROE) measures profit earned relative to the farmer’s equity investment in the operation. This measure is the best indicator of how the dairy producer’s investment is paying off compared to the potential return if the funds were invested another way. A single year does not provide an accurate picture of the dairy industry’s long-term operating performance, especially given the volatility in recent years. To further illustrate, in the last 17 years we have seen three of the top four years for profitability in DFS history (2014, 2022 and 2011) as well as the greatest loss in DFS history (2009). Given these extremes, multi-year averages yield a more accurate picture of the industry. If we look at both shorter- and longer-term averages, we see similar results (Figure 4). Continued year-to-year volatility confirms the challenges and opportunities faced by Northeast dairy producers.
Figure 4
Comparison of Multiyear Averages Three-Year Average
Five-Year Average
Ten-Year Average
Net Earnings per Cow
$558
$599
$437
Return on Assets
5.3%
5.3%
4.4%
Return on Equity
4.3%
5.0%
4.1%
It is important to differentiate net earnings (profit) from cash flow. Farm businesses rely on cash flow to pay ongoing bills, but cash flow is not an accurate measure of profitability. Net earnings are an accrual measure of profit, which represents a farm business’s ability to provide an economic return for the operator’s investment and management. It offers the best measure of a farm’s profitability by adjusting cash farm income and expenses to reflect changes in inventories, accounts receivable, accounts payable and prepaid expenses. Conversely, some farms may show positive net income on an accrual basis yet struggle with cash flow. It is important to note that principal payments on debt, while a significant cash obligation, are not a deductible expense and must be paid out of earnings. Thus, both accrual net earnings and positive cash flow are essential for a dairy farm to survive and grow. Furthermore, the owners of a business do not get to keep all the net earnings of that business as debt principal payments and reinvestment in the business must come out of that sum. As stated previously, the average 2025 farm milk price at $22.21 per cwt. was -$1.72, or 7% lower than 2024’s $23.93. It was $0.77 less than the five-year average of $22.98 per cwt. (Figure 5A). In terms of actual (nominal dollars, not adjusted for inflation) milk prices, 2025 ranked 5th in the 46 years of the DFS. However, to better understand the true story of how milk
6 2025 NORTHEAST DAIRY FARM SUMMARY
prices have changed over time, we must account for the impact of inflation (Figure 5B). In terms of “real,” inflation-adjusted rankings, 2025 drops to 41st. The first year of the DFS, 1979, ranks first, with an inflation-adjusted milk price of $44.60/cwt. in 2025 dollars.
Figure 5A
Farm Milk Prices Per Cwt. (Nominal vs. 5-Year Average) $28.00 $26.00 $24.00
Nominal
$22.00 $20.00 $18.00
5-Year Rolling Average
$16.00 $14.00 $12.00
24 20
21
18
20
20
15 20
12 20
09 20
06
03
20
20
20
00
97 19
94 19
91
88
19
19
85
82
19
19
19
79
$10.00
Figure 5B
Farm Milk Prices Per Cwt. (Nominal vs. Real Dollars) $45.00
$40.00
$35.00
$30.00
Real* $25.00
$20.00
$15.00
Nominal $10.00
$5.00
20 23 20 25
20 21
9 20 1
7 20 1
5
3
20 1
20 1
1 20 1
9 20 0
7
5
20 0
3
20 0
20 0
1 20 0
9
7
19 9
19 9
5 19 9
3 19 9
1 19 9
9
7
19 8
5
19 8
19 8
3 19 8
1 19 8
19 7
9
$0.00
Nominal price adjusted for inflation - 2025
*
NORTHEAST DAIRY FARM SUMMARY 2025
7
NET COST OF PRODUCTION DECREASES SLIGHTLY, WITH CONSIDERABLE VARIATION
The net cost of producing milk in the Northeast has fluctuated over the past five years. Three key figures to review for 2025’s cost of production analysis of the average dairy farm in the DFS include: Cash operating expenses were $25.20 per cwt., $1.28 greater than 2024.5 Total costs, including depreciation and family living, were $27.61 per cwt., $1.07 per cwt. higher than 2024. Non-milk farm income for 2025 was significantly greater than in 2024. Increased value of cattle sales was the main contributor to this. After subtracting non-milk farm income, NCOP was $19.83 per cwt., $1.66 below the previous year.6
Figure 6
Cost of Producing Milk – Accrual Basis 2021
2022
2023
2024
2025
Dollars per Cwt.
Feed
$ 6.90
$ 8.04
$ 7.93
$ 7.00
$ 7.71
Labor
3.42
3.10
2.84
3.13
3.32
Interest
0.60
0.84
1.15
1.58
1.52
Freight & Trucking
1.29
1.42
1.96
1.51
1.32
Crop Inputs
1.33
1.92
1.79
1.57
1.68
Other Expenses
6.25
8.97
9.31
9.13
9.64
$19.79
$24.29
$24.98
$23.92
$25.20
+ Depreciation
1.31
1.82
1.92
1.96
1.81
+ Family Living
0.40
0.70
1.13
0.66
0.60
$21.50
$26.81
$28.03
$26.54
$27.61
- Non-Milk Income*
2.90
3.94
5.39
5.05
7.78
Net Cost of Production**
$18.60
$22.87
$22.64
$21.49
$19.83
Adjusted Cash Operating Expenses
Total Costs
* **
5 6
Non-milk income includes cattle, crop and other income adjusted for inventory changes. Before any return on equity. If we assume a return on equity to be an imputed cost, each 1 percent return on equity would be equivalent to another $0.49 added to the NCOP for 2025. For a 6% ROE, NCOP would be $22.31.
Does not include family living or depreciation. Non-milk farm income includes cattle, crop sales and other farm income. Nonfarm income and government payments are not factored into NCOP.
8 2025 NORTHEAST DAIRY FARM SUMMARY
Despite fluctuations in many expenses in recent years, Northeast dairy producers have managed to limit cost-of-production increases. Categories where costs increased included interest, labor and depreciation. Minimum wage increases in many Northeast states and an overall tightening of the labor market continue to put upward pressure on labor costs per hour, leading to a push for efficiency and lower staffing levels on many farms. In New York, 2020 saw the implementation of mandatory overtime pay for agricultural workers, with a 60-hour threshold for time-and-one-half pay. Subsequently a planned phase-down of that threshold to 40 hours over a 10-year period was approved, as recommended by the Farm Laborers Wage Board. The phase down began in 2024, with a 56-hour threshold, and continues in 2026, with a 52-hour threshold. The ratcheting down will take place every two years, with a 4-hour reduction in the threshold until it reaches 40 hours in 2032. The industry will need to make significant adjustments to maintain profitability and operations once the threshold is reduced to 40 hours. One factor in this effort is a refundable tax credit that New York farms are eligible for to cover the overtime premium required between the threshold and 60 hours. Given that hired labor is typically the second greatest expense on most dairy farms, managing labor efficiently is a significant contributor to the profit (or loss) of a farm. Farms have responded to increased wage expenses in different ways. Some smaller farms reduced either the hours worked by hired labor or the number of hired workers and increased their usage of family labor. Some larger farms tried to become more efficient in their use of hired workers by increasing the number of cows per worker and by reducing hours to the 56-hour threshold or close to it. Some attempted to hire additional workers to manage the amount of overtime per worker, with varying degrees of success. The scarcity of both local resident and migrant workers, as well as housing limitations made this tactic a challenge, and indeed many farms had to operate in 2025 with fewer workers than they might have liked. The significant usage of family labor on Northeast farms somewhat masks the impact of increasing hired labor costs, most notably on smaller farms. Many farms using mostly family labor show a very small amount for hired labor expense, relying on the family living draw for compensation. We make no adjustment for un-paid or under-paid family labor in the DFS, reporting only the actual funds spent without any imputed cost for this work, despite the fact that it has significant value. Labor costs have risen significantly over the last several years. The USDA’s National Agricultural Statistics Service (NASS) surveyed wage rates for farm workers, and found that in January 2019, hired farm workers in the “Northeast I” region, which includes New England and New York, were paid an average of $15.86 per hour. By April 2025, hired workers were paid an average of $19.98 per hour.7 Meanwhile, the minimum wage in many Northeast states continues to increase. As of January 2026, the minimum wage in Upstate New York is $16.00 per hour.
7
USDA, NASS Farm Labor Survey (Discontinued in 2025).
NORTHEAST DAIRY FARM SUMMARY 2025
9
Figure 6A
Wage Rates for Hired Workers $22.00 $20.00 $18.00 $16.00 $14.00 $12.00
USDA Northeast
Jan 26
Sep 25
May 25
Jan 25
Sep 24
May 24
Jan 24
Sep 23
May 23
Jan 23
Sep 22
May 22
Jan 22
Sep 21
May 21
Jan 21
Sep 20
May 20
Jan 20
Sep 19
May 19
Jan 19
$10.00
NYS Minimum Wage
While the cost of hired workers per hour has increased significantly in recent years, Northeast dairy farmers have been able to keep labor cost increases per cwt. of milk produced to a manageable level. This has been achieved partly through increasing the number of cows per worker, as well as having more productive cows. This year’s study includes 111 farms from New York and 25 farms from New England (Connecticut, Maine, Massachusetts, New Hampshire and Vermont). When we look at the cost of production by region, we can see differences in many expense categories (Figure 7 and D Tables). It should be noted, however, that given the small sample size of New England farms, caution should be used in extrapolating the data to the entire region.
10 2025 NORTHEAST DAIRY FARM SUMMARY
Figure 7
NCOP By Region Cost per Cwt.
New England
New York
Feed
$ 8.27
$ 7.97
Labor
4.09
3.65
Interest
1.31
1.20
Freight & Trucking
1.55
1.59
Crop Inputs
1.57
1.40
Other Expenses
9.47
7.82
$26.27
$23.63
+ Depreciation
1.32
1.67
+ Family Living
0.27
0.25
$27.85
$25.56
- Non-Milk Income*
5.16
6.82
Net Cost of Production
$22.68
$18.74
Adjusted Cash Operating Expenses
Total Costs
Looking at specific cost categories across our entire sample of farms, and comparing 2025 to 2024, purchased feed was the category with the most significant increase in dollar terms.
NORTHEAST DAIRY FARM SUMMARY 2025
11
Figure 8
Specific Cost Categories 2024
2025
Percent Change
per Cow
per Cwt.
per Cow
per Cwt.
per Cow
per Cwt.
Feed
$1,760
$7.00
$2,002
$7.71
13.8%
10.0%
Labor
$ 786
$3.13
$ 862
$3.32
9.7%
6.1%
Fuel
$ 215
$0.86
$ 198
$0.76
-7.9%
-10.9%
Supplies
$ 371
$1.48
$ 330
$1.27
-11.1%
-13.9%
Repairs
$ 408
$ 1.62
$ 438
$ 1.69
7.4%
3.9%
Interest
$ 397
$ 1.58
$ 396
$ 1.52
-0.3%
-3.5%
Crop Inputs
$ 394
$ 1.57
$ 436
$ 1.68
10.7%
7.1%
All Other Expenses
$2,170
$8.64
$2,354
$9.06
8.5%
4.9%
The formula used in the DFS for calculating NCOP is as follows: [Cash Operating Expenses (with accrual adjustments made for pre-pays, accounts payable, etc.) + Calculated Depreciation8 + Family Living Expense] - Non-Milk Farm Income9 = Net Cost of Production. It is important to note that the $19.83/cwt. average NCOP includes no return on the producer’s equity investment. While it may be debatable what an appropriate return on equity (ROE) might be, earning some level of return should be a business objective, and is indeed necessary for the repayment of debt and for reinvestment in the business. For the average DFS producer in 2025, each 1% return on equity would be equivalent to an additional $0.49 per cwt. If we were to include a 6% ROE goal as part of NCOP, for example, this would be equivalent to a $22.77 NCOP, a value greater than the actual milk price received in 2025. Figure 9 shows NCOP by herd size. Generally, larger herds have an advantage in spreading fixed costs over more units, driving per-unit cost down through higher production per cow and greater capital efficiency. Smaller herds typically have lower hired labor costs (due to more owner and family labor) and higher non-milk income per unit; family living and other costs are usually higher, on a per-unit basis. Notably, however, in 2025, non-milk income generally increased with herd size, as larger farms had more income from beef-on-dairy and cull cow sales.
For the DFS, all farms have their submitted depreciation restated by applying a standard percentage of straight-line depreciation to various asset classes in order to compare consistent numbers from farm to farm and avoid variations driven by accounting and changes in tax laws. 9 Non-milk income includes cattle, crop and other income adjusted for inventory changes, but does not include nonfarm income or government payments. 8
12 2025 NORTHEAST DAIRY FARM SUMMARY
Figure 9
NCOP By Herd Size Cost per Cwt.
< 299 Cows
300-699 Cows
700+ Cows
Feed
$ 7.05
$ 8.02
$ 8.03
Labor
2.37
3.85
3.71
Interest
1.82
1.65
1.13
Freight & Trucking
1.03
1.29
1.64
Crop Inputs
1.85
1.88
1.33
Other Expenses
11.76
9.73
7.57
Adjusted Cash Operating Expenses
$25.88
$26.42
$23.41
+ Depreciation
1.98
1.92
1.55
+ Family Living
1.13
0.48
0.20
$28.99
$28.82
$25.17
- Non-Milk Income*
6.02
7.26
9.91
Net Cost of Production
$22.97
$21.56
$15.26
Total Costs
It is critical to note that while we often speak of NCOP as a single number, in reality each individual farm has its own cost of production. These averages are determined by calculating the mathematical mean of the farms in each of the three size categories in the study (<300 cows, 300-699, and 700+). This means that many farms had NCOP greater than average and many lower.
CASH FLOW FROM MILK INCOME DECREASES SLIGHTLY Cash flow is another measure of financial health for a dairy operation or any business. Each business has a minimum cash requirement to meet its ongoing commitments, such as operating costs, overhead, debt service payments and family living. The remainder can be used for capital investment, such as to replace older equipment, build liquidity or invest in a retirement fund. Cash margin from milk income decreased slightly from the prior year in 2025, averaging $1.48/cwt. compared to $1.65 in 2024, -$0.40 in 2023, $6.43 in 2022, and $0.66 in 2021 (Figure 10).10 Prior to 2019, the average DFS farm had four straight years of negative cash flows. This means that although the average farm in our sample had positive cash flow for the years from 2019-2022 and then again in 2024-2025, they may still carry increased debt loads from prior years of negative cash flows. Given the variation in average cash margins, making a financial decision based on a single year’s performance would be difficult. Prudent management suggests that farms should evaluate their decisions based on performance over a period of time, rather than a single good or bad year. 10
The cash flow analysis shown in Figure 10 does not include government payments.
NORTHEAST DAIRY FARM SUMMARY 2025 13
Figure 10
Cash Flow Analysis Per Cwt. 2021
2022
2023
2024
2025
Actual Milk Price Cash Required - Other Income
$19.21
$26.66
$22.76
$23.93
$22.21
$21.80
$23.79
$28.55
$26.99
$27.84
3.25
3.56
5.39
4.71
7.11
Breakeven Milk Price
$18.55
$20.23
$23.16
$22.28
$20.73
Cash Margin
$ 0.66
$ 6.43
$-0.40
$ 1.65
$ 1.48
Total cash operating expenses + Family living expense and income tax + Scheduled principal payments
Cash Margin Definitions
= Cash required
Cattle sales + Capital sales + Crop sales + Other farm income = Other income
Figure 10 shows the range of cash margins from milk income for the average Northeast dairy farm since 2021. The breakeven milk price is the price level where a farm can cover all its cash operating expenses, family living and estimated debt payments, without having to rely on government payments or off-farm income. Due to cost inflation and increasing debt levels, the breakeven milk price has increased significantly from approximately $14 per cwt., which was common prior to 2007, to over $20 in 2014, which we returned to in 2022 and subsequent years. Milk prices have fluctuated in recent years, setting new records in 2011, 2014 and 2022, but declining in interim years. Note that this calculation looks at milk income only and does not account for government payments, which have fluctuated significantly, peaking in 2020.
14 2025 NORTHEAST DAIRY FARM SUMMARY
The level of variability in cash flows makes financial management more challenging, underscoring the importance of a long-range view of cash flow. Timing of major capital expenditures, managing debt load, building liquidity for the tight years and adjusting family withdrawals are all means of managing volatility. Some producers have adopted risk management strategies involving both input costs and milk prices using a combination of crop insurance programs, such as Livestock Gross Margin (LGM-Dairy) and the Dairy Revenue Protection (DRP) coverage, other government programs such as Dairy Margin Coverage (DMC) as well as hedging strategies.
CAPITAL EFFICIENCY When viewed on a per cow or per cwt. basis, larger farms are generally able to spread costs and investments over more units. For example, the 299 cows or fewer group produced less milk per worker than the average of all farms and carried significantly greater assets per cwt. sold ($91 versus $79). Return on assets was positive for all groups, though the 700 cows or more group had by far the highest return on assets.
Figure 11
Capital Efficiency Herd Size (No. of Cows)
299 or Fewer 300 to 699 700 or More All Farms
Pounds Sold per Worker 962,233
Pounds Sold per Cow 25,391
Total Assets per Cwt. Sold1 $ 91
Asset Turnover (per Year)2 0.33
Return on Assets3 2.8%
1,292,394
25,460
74
0.40
3.3%
1,760,304
27,076
72
0.45
11.8%
1,338,310
25,976
79
0.39
7.8%
Total assets divided by cwt. of milk sold 2 Total assets divided by cash receipts = turnover per year 3 Return on assets = (net earnings + interest) / average farm assets 1
NET WORTH DECREASES Net worth, or owner’s equity, measures how the farm business is capitalized. It is measured at the end of each year in the DFS in order to consider changes from year to year. Net worth is an indicator of the ability of the business to absorb financial losses and to collateralize additional borrowing. It is also a theoretical measure of the amount of money that could be redeployed toward other endeavors if the business was liquidated. The average DFS farmer’s net worth declined in percentage terms in 2025 (Figure 12). Both assets and liabilities per cow increased, but liabilities increased a greater amount, resulting in a lower percent net worth. Solvency remains solid for the average DFS farm, meaning that the average participant has more than enough farm assets to satisfy all farm debts, selling costs and the resulting income tax liability if they were to liquidate their operation.
NORTHEAST DAIRY FARM SUMMARY 2025 15
Figure 12
Change In Financial Position Percent Net Worth1 67%
Current Ratio2 2.5
Quick Ratio3 1.1
Asset Turnover4 0.42
69%
3.3
1.6
0.45
68%
2.8
1.2
0.39
2024
68%
3.2
1.6
0.36
2025
62%
2.3
1.1
0.39
2021 2022 2023
Percent net worth = Owner’s net worth / total assets Current ratio = Current assets / current liabilities 3 Quick ratio = Current assets - inventory / current liabilities 4 Asset turnover = Value of farm production / average total assets 1 2
There is an important distinction between growth in net worth resulting from earnings versus market revaluation. Net earnings are the result of profits from dairy farming. Market revaluation generally occurs in farm real estate and, sometimes, cattle, while machinery and equipment typically depreciate. Liquidity is the ability of the farm operator to convert short-term assets (current assets) to cash to meet short-term obligations (current liabilities) as they become due. Current and quick ratios are two important measures of liquidity. In 2025, the average dairy farm had a current ratio of 2.3, a decrease from the prior year (Figure 12). This means that the average farm had 2.3 times the value of current assets compared to its current liabilities. However, since inventory on a dairy farm is primarily feed for on-farm use and not intended to be directly converted into cash to pay bills, subtracting inventory from current assets provides a closer look at a dairy farm’s true short-term liquidity situation. The quick ratio takes the result (current assets minus inventory) and divides by current liabilities. The quick ratio of 1.1 at the end of the year demonstrates that the average farm had sufficient near-cash assets (such as cash and accounts receivable), excluding inventory, to meet the current year’s financial obligations. This indicates that producers had, on average, 110% of the value of short-term liabilities available in cash or assets that could be quickly converted to cash. Finally, asset turnover is commonly used to measure the efficiency of total capital invested in the business by determining gross revenue dollars generated for every dollar invested. The higher the asset turnover ratio, the more efficiently the investment is working for the business. Thus, greater asset turnover should translate into a higher return on assets (ROA). In 2025, the asset turnover ratio for the average Northeast dairy business was 0.39, slightly higher than the prior year. This was a result of an increase in cash receipts relative to the assets of the farms in the sample with $0.39 of gross revenue generated for every $1 invested in assets.
NET MARGIN BY PROFIT QUARTILE Northeast producers again showed a wide range of profits around the $791 per cow average net earnings in 2025. Several farms lost money, while a few posted more than $3,000 profit per cow. Figure 13 demonstrates the range of profitability between the top, bottom and all farms profit groups. Farms in the DFS are ranked by profit margin and divided into four quartiles.
16 2025 NORTHEAST DAIRY FARM SUMMARY
Figure 13
Range of 2025 Profits Bottom 25%
All Farms
Top 25%
Number of Farms
34
136
34
Average Number of Cows
614
941
1,680
Milk Sold per Cow (lbs.)
25,258
25,130
27,452
Milk Sold per Worker (lbs.)
1,316,363
1,338,310
1,784,243
Per Farm
($494,884)
$744,331
$3,529,680
Per Cow
($806)
$791
$2,101
Per Cwt.
($3.19)
$3.05
$7.65
Return on Assets*
-1.5%
7.8%
13.2%
Return on Equity*
-7.3%
6.3%
16.4%
Net Earnings
*
ROA and ROE calculations do not include asset appreciation.
There was a $2,907 difference in average net earnings per cow between the top and bottom quartile groups. Similarly, on a per cwt. basis, the top farms showed $10.84 more in net earnings than the least profitable farms. Interestingly, some of the most profitable farms, at least on a per cow basis, were found at both the high end and at the low end of herd sizes. The large herd dairy farms were able to capitalize on economies of scale, while some of the small herd farms were able to keep a tight rein on expenses and utilized more family labor. There were farms from all size categories represented in the top profit quartile.
NORTHEAST DAIRY FARM SUMMARY 2025 17
FARM SIZE AND PROFITABILITY Figure 14
Farm Size and Profitability 299 Cows or Fewer
300-699 Cows
700 Cows or more
Average Number of Cows
181
507
2,136
Milk Sold per Cow (lbs.)
25,391
25,460
27,076
Milk Sold per Worker (lbs.)
962,233
1,292,394
1,760,304
Net Cost of Production per Cwt.
$22.97
$21.56
$15.26
Milk Price per Cwt.
$22.23
$22.10
$22.29
Assets per Cow
$23,045
$18,750
$19,395
Asset Turnover
0.26
0.31
0.31
Percentage Net Worth
61%
59%
66%
Net Earnings per Cow
$189
$204
$1,979
Return on Assets %
2.8%
3.3%
11.8%
Average farm sizes in the Northeast and across the country have continually increased for many decades. The DFS has found that all size farms can be profitable, and that it’s more important to be ‘better’ than it is to be ‘bigger.’ However, there are still strong correlations in the data regarding size of farm, efficiency, pounds of milk sold per cow, cost of production and ultimately, profitability. On average, the largest size group was by far the most profitable of the four size categories with $1,979 net earnings per cow in 2025 (Figure 14). In addition, compared to the rest of the sample, members of this group were: The most productive on a milk-sold-per-cow and per-worker measure. The lowest per-cow investor in productive assets. As a result, this group had the highest asset turnover ratio. The lowest cost producers per cwt., based on net cost of production. The highest revenue producers for cattle sales. It is noteworthy that all three size categories were represented in the top profit quartile, while only about one-third of the 700+ cow size group had that distinction. This is important because it shows there is opportunity to achieve superior profitability over a range of farm sizes. It also shows, however, that, as a group, the largest farms also have the highest average earnings per cow.
18 2025 NORTHEAST DAIRY FARM SUMMARY
FARM DEBT CONTINUES TO INCREASE We noted in 2016 that total liabilities exceeded $4,000 per cow for the first time in DFS history. This was worth mentioning because while it took 29 years for average debt-per-cow11 to climb from $2,000 to $3,000, it took only eight years to exceed $4,000 per cow. In 2022, total liabilities exceeded $5,000 per cow, only six years since the $4,000 level was first reached. Of course, there is impact from inflation during this period, but it still raises concerns about the increasing leverage of the average farm, and their ability to maintain debt service and cash flow during periods of low margins. In 2025, we saw total debt per cow climb to $7,744, with intermediate and long-term debt totaling $6,515.
Figure 15A
Total Liabilities Per Cow $9,000
$8000
$7,000
$6,000
$/Cow
$5,000
$4,000
$3,000
$2,000
Nominal
$1,000
24 20
21 20
18 20
15 20
12 20
09 20
06 20
03 20
00 20
97 19
94 19
91 19
89
85
19
19
82 19
19
79
$0.00
Figure 15B
Total Liabilities Per Cow (Nominal vs. Real Dollars) $9,000
$8,000
$7,000
$6,000
Real
$/Cow
$5,000
$4,000
$3,000
$2,000
Nominal $1,000
81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25
19
19
79
$0.00
Real = adjusted for inflation 11
Total liabilities per cow, including current liabilities such as trade credit.
NORTHEAST DAIRY FARM SUMMARY 2025 19
CONCLUSION In 2025, farms of 700 cows or more, the largest size class in our study were the most profitable, with $1,979 net earnings per cow. These farms were the most productive per cow and per worker, had the highest asset turnover ratio, and were the lowest cost producers. All size categories showed potential for high profitability, but the largest farms had the highest average earnings per cow. Debt levels for farms have increased significantly. In 2022, total liabilities exceeded $5,000 per cow, and by 2025, this rose to $7,744 per cow. This raises concerns about the ability of farms to maintain debt service during low margin periods. 2025 saw a positive shift in profitability despite lower milk prices and higher feed costs. This increase in profitability was largely due to increased revenue from cattle sales. In 2025, the average farm had positive net earnings, but nearly one-third of the farms lost money on an accrual basis. Managing risk and controlling costs are crucial for Northeast dairy farms, given high debt levels and market uncertainties. The greatest risk management tool remains smart management and cost control. By continuing to invest in property, livestock and equipment, Northeast producers are generally well-positioned to manage tight margins in the future. One of the key takeaways from the Northeast Dairy Farm Summary is that there are multiple paths to dairy farm profitability. Strategies are as different as the individual characteristics of farms within this study, and there is certainly more than one way to achieve industry-leading returns. Working closely with your Farm Credit loan officer and/or business consultant to assess your strengths and weaknesses and develop a strategy to position your farm to meet industry challenges and take advantage of business opportunities is now more critical than ever. If you are interested in improving your profitability, the DFS is only the beginning. Farm Credit’s Success Strategies Dairy Benchmarks and Dairy Profit Analyzer delves much deeper into not only farm financial data, but a host of production and herd management metrics as well. Membership includes a personalized profit assessment of your farm. Farms throughout New England, New York, New Jersey, and Pennsylvania are eligible to participate. Contact a Farm Credit East representative for more information. We hope that this year’s Northeast Dairy Farm Summary is a useful tool for managing your farm and business. It remains essential that dairy farmers and those who serve them continue to have good data upon which to make decisions in order to have a healthy, economically sustainable Northeast dairy industry. The entire Farm Credit team of loan officers, farm accounting professionals and business consultants are eager and prepared to help Northeast dairy farmers achieve financial success. On behalf of our entire team, thank you for your interest and participation.
20 2025 NORTHEAST DAIRY FARM SUMMARY
NORTHEAST DAIRY FARM SUMMARY 2025 21
2025 MID-YEAR OUTLOOK
DEMAND FOR DAIRY CONTINUES TO GROW By Corey A. Geiger, CoBank . After some rather sluggish dairy prices to start out the new year, margins to make milk have improved, providing one reason for a positive outlook. Another reason for optimism is strong consumer demand for protein, and dairy wins in two ways – protein found in milk and protein from beef sales. A third reason to be optimistic is that new dairy plant investment continues to be announced this year. By my count, there is $13 billion of new capital investment in U.S. dairy plants and that will ensure a home for the growing milk supply. While many indicators point upward, there are some reasons for caution. For starters, the EU continues to show strong growth in milk production with output being up 5% or more year-over-year from October 2025 through March 2026. That’s noteworthy growth for the world’s largest dairy product and ingredient exporter, equivalent to 1.6 times the size of the U.S. dairy sector. Another reason for caution is the ongoing conflict in the Middle East that is making it extremely difficult to move products. That includes dairy products into, and fuel and fertilizer out of the region.
A LOOK AT DAIRY DEMAND Domestic dairy sales continue to grow despite population growth remaining under 1% in the U.S. Total commercial dairy use reached 238 billion pounds on a milk equivalent total solids basis in 2025 and that figure was up 2.4% over the previous year. The new year is also off to a great start as commercial dairy use moved 3.7% higher in January and February 2026 when compared to last year. Domestic sales accounted for 84% of that 238-billion-pound figure with dairy exports accounting for the remaining 16% of total solids on a milk equivalent basis. While domestic growth has been rather consistent, ranging from 2.3% in 2025 and 2.2% to start the new year, dairy exports have shown robust growth. In 2025, dairy exports grew by 3.0% over the previous year. In January and February, exports climbed 5.2% on a milk equivalent total solids basis. Cheese and butter exports have both been moving at a strong pace. U.S. cheese exports were a record 140 million pounds in March and notched the 11th consecutive month over 110 million pounds.
BUTTERFAT GROWTH REMAINS STRONG Many of the Middle East countries import over 90% of their food supply. For dairy, that includes a great deal of butterfat. When looking at the U.S. milk markets, our country has been in a butterfat-deficit market for many decades. However, the tide has turned, and America may be structurally short on dairy protein and long on butterfat moving forward. This will change how products and ingredients move in both domestic and export markets. We will balance product flows based on dairy protein production, and butterfat will need to find new markets, with the export market being a significant focus. This transition will create more market volatility, as we have already witnessed from August 2025 through June 2026.
22 MID-YEAR OUTLOOK
Prior to the creation of the North American Free Trade Agreement in 1994 and the U.S. Dairy Export Council in 1995, the U.S. was largely a nonplayer on the dairy export stage. By 2011, the U.S. was exporting 16.5% of its milk production on a skim solids basis. In other words, the U.S. kept the skimmed off butterfat from the milk stream and sold the skim solids (largely in the form of protein and lactose) to customers around the world. In fact, the spread was so large between the product mix that exports measured on a milk fat basis were a meager 4.6% of U.S. milk production.
Exhibit 1
Low-milkfat products outpacing milk fat in U.S. dairy exports Percent of total U.S. dairy production going to exports
25.0% 21.6% 20.0% 16.6% 15.0% 10.0% 5.0% 0.0%
5.2%
4.6%
2011 Milk fat basis
2024 Skim solids basis
Source: USDA-ERS
The story hadn’t changed much by 2024. That year, U.S. dairy processors exported 21.6% of America’s milk production on a skim solids basis. But exports on a milk-fat basis hardly budged, posting just 5.2% in exports even though total exports represented 17% of the nation’s total milk production. In other words, domestic consumers were buying nearly all of America’s butterfat production in the form of dairy products and little was available for export markets. Not only were Americans buying domestic butterfat, but they also started buying more imported butter. In 2011, the U.S. imported 10 million pounds of butter. By 2021, butter imports grew 10-fold to reach 100 million pounds. With more demand from American consumers, butter imports grew another 72% to reach 173 million pounds of imported butter by 2024. With strong domestic butterfat production in 2025, butter imports fell 57% to 98 million pounds.
MID-YEAR OUTLOOK 23
24 2025 NORTHEAST DAIRY FARM SUMMARY
Exhibit 2
Butter imports into the U.S. dropped 57% in 2025 Butter imports, millions of pounds 173
175 150 119
125 100
100 79
75 52
50
84
106
98
83
58
41 24
25 10
15
12
0 2011
2013
2015
2017
2019
2021
2023
2025
Source: USDA-ERS
Along the way, the multiple component pricing factors in the U.S., via the Federal Milk Marketing Order system, gave stronger signals to produce more butterfat. As a result, butterfat percentages on farm went on a historic run, moving from 3.66% in 2010 to 4.32% in 2025. This growth stemmed from a combination of changes in feed rations and the influx of genetic change via artificial breeding programs and the new science of genomic predictions. This rapid growth in butterfat eventually pushed the production pendulum in the opposite direction mid-year 2025 — long on butterfat and short on protein. Not only did production of products like cottage cheese, dairy nutritional shakes and Greek yogurt demand more protein and less fat, but butterfat production on a pounds basis also began growing by 5% to 6% in any given month by mid-year. That strong growth began outstripping domestic market demand to absorb farmgate butterfat production. As a result, butter prices on the Chicago Mercantile Exchange (CME) began to drop from $2.44 per pound on August 1, 2025, to $1.50 per pound by mid-November just when butter sales typically would peak as the holiday season approached. Spot butter prices have since improved to the $1.70 per pound range. Domestic market demand didn’t improve spot prices; export markets did. The U.S. exported an impressive 269 million pounds of butterfat and anhydrous milkfat in 2025, boosting total export volume 271% from the previous year. More importantly to balance markets, 60% of those 269 million pounds of butterfat were exported in the second half of the year when the U.S. needed to move inventory. The new year is off to an equally impressive start on the butterfat front as the U.S. has exported 102 million pounds of butterfat so far this year. To bring this into full perspective, through just three months of the new year, butterfat exports have already outpaced the entire calendar year of 2024
MID-YEAR OUTLOOK 25
Exhibit 3
Butterfat exports set a record in 2025 Butterfat exports, millions of pounds 300 269 250 200 150 100
99 77
50 0
2023
2024
2025
Source: U.S. Dairy Export Council, USDA
This huge increase in domestic butterfat production has created significant volatility in Class III cheese and whey markets, and an even greater downturn in Class IV butter and powder markets. In August 2025, Class III contracts for April 2026 to July 2026 milk traded between $17 to $18. In January, due to market pressures from butterfat, those same contracts traded between $15 and $17. Then with strong butterfat exports and other factors, June 4 CME futures began to rebound. In early CME trading (August 2026 through December 2026), contracts range from $17.30 to $18.45 per cwt.
26 MID-YEAR OUTLOOK
The situation was more dramatic in the Class IV space. In August 2025, all contracts for the March 2026 to July 2026 window traded above $19 per hundredweight. By January 9, 2026, those same contracts dropped to the $14 to $15 range. After the impact of strong butterfat exports and the recent tightening nonfat dry milk market that sent prices to record highs, June to July 2026 CME Class IV futures climbed to pre-August 2025 trading levels and in some months those contracts traded close over $22. As nonfat dry milk production ramps up, these strong contracts taper off later in the year to the $19 range.
Exhibit 4
Class IV futures quickly turned from bearish to bullish $24
In $ per cwt.
$22 $20 $18 $16 $14 $12 Jun-26 August 1
Jul-26 January 9
June 4
MID-YEAR OUTLOOK 27
PROTEIN IS DRIVING HERD GROWTH Protein has become the most important consumer demand trend and that’s where the growing U.S. dairy cow herd comes into play as beef prices stand at record highs. That begs the question: how much larger will the U.S. dairy cow herd grow to reap rewards from beef-on-dairy calves and may that resulting growth in milk production cause an oversupply in the marketplace? The U.S. dairy cow milking herd is at its largest in 34 years at 9.645 million head in April. Compared to a year ago, the herd is 190,000 head (+2.0%) larger. These additional cows added to total milk production, which grew by 2.7%. March butterfat production grew 3.2% and protein pounds were up 3.6% reflecting feeding adjustments for lower butterfat prices in recent months. Beef-on-dairy calves are one of the primary reasons to keep dairy cows longer in the herd, especially after notching a record $2,013 per head in mid-April and falling back to the robust $1,900 range. Recent visits by CoBank staff to feedlots in Texas mentioned 15% to 20% of cattle on feed are beef-on-dairy animals. These crossbreds grow well in the feedlot and can weigh over 1,700 pounds before heading to the beef packer due to the larger frame provided by the dairy genetics. Strong interest in beef-on-dairy calves should continue given the U.S. beef cow herd is at the lowest level in 65 years. Plus, beef sales to consumers have shown 27 straight months of volume growth.
28 MID-YEAR OUTLOOK
Exhibit 5
Beef-on-dairy calf prices continue to soar $2,200 $2,000 $1,800
Price per calf
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $-
2019
2020
2021
2022
2023
2024
2025
2026
Due to the strong pivot to beef-on-dairy, dairy replacements prices have soared due to the limited supply and posted a record high of $3,130 per head in April. Of the 24 states that track these prices, all but two states (New Mexico and Washington) posted values $3,000 per head or above, according to USDA data. MID-YEAR OUTLOOK 29
UPDATES ON INSURANCE COVERAGE Speaking of profit margins, USDA’s Risk Management Agency (RMA) recently made some updates to its insurance programs to provide more options for dairy farmers. When it comes to the Livestock Revenue Protection (LRP) program, cull cow coverage can now take place over 52 weeks contrasted to just 13 weeks under the previous rules. This adjustment will allow dairy farmers to lock in a price floor for their cull dairy cows and extend profitability for up to a year. In addition, RMA clarified rules that now allow cull cows sold to intermediaries such as livestock markets to be covered by the LRP program. More clarity has also been created in the calf insurance category. Full breed dairy calves, such as Holstein and Jersey, can only be covered under the feeder cattle option. Those purebred dairy calves cannot be covered under the “calves sold within the first two weeks” provision. However, crossbred beef-on-dairy calves can be covered under that provision. When it comes to milk coverage, dairy producers can now double up on Livestock Gross Margin (LGM) and Dairy Revenue Protection (DRP). LGM covers margins between revenue and feed costs and is available during two-month contract windows. DRP is available on a quarterly basis. These updates from RMA mean that dairy producers can add LGM coverage even if they already purchased DRP quarterly coverage. This is meaningful if high prices in one month push the quarterly average higher for DRP. In a scenario where the three-month DRP average rises too high and doesn’t trigger a payout, LGM could offer supplemental coverage.
DAIRY LOOKS GOOD OVERALL While there are many reasons for optimism, dairy markets are not out of the proverbial woods. The 2025 export year might have been even better had there not been geopolitical issues and tariffs making an impact. The largest catalyst supporting U.S. sales growth was lower cheese and butter prices compared to the world’s top two dairy exporters – the EU and New Zealand. Given this situation, dairy farmers and processors alike should consider hedging opportunities when market prices look favorable and cover expenses because small product movements could significantly move prices.
Corey Geiger is the Lead Economist for Dairy with CoBank’s Knowledge Exchange Division and previously served on the editorial team for Hoard’s Dairyman for 28 years. He earned degrees in agricultural economics and dairy science at the University of Wisconsin-Madison
30 MID-YEAR OUTLOOK
MID-YEAR OUTLOOK 31
FINANCIAL RECORDS The following 13 tables present the detailed financial data on which this summary was based. These tables are organized into four sets: Tables A-1 through A-4 are COMPARISONS BETWEEN YEARS Tables B-1 through B-3 are DATA BY HERD SIZES Tables C-1 through C-3 are DATA BY PROFIT GROUPS Tables D-1 through D-3 are DATA BY REGIONS Each set includes a condensed earnings worksheet, a balance sheet summary and a page of evaluation factors. The 2021-to-2025 data series includes farms in Connecticut, Maine, Massachusetts, New Hampshire, New York and Vermont. Please note the following in order to properly use this data: Cattle purchased for replacements are considered operating expenses, but cattle purchased for expansion are capital purchases. The accrual adjustment change in the inventory of raised livestock is calculated by subtracting purchases for expansion from the total increase in cattle inventory value. Depreciation has been restated by applying a standard percentage of depreciation to various asset classes in order to compare consistent numbers from year to year and avoid variations driven by changes in tax laws. Appreciation and revaluation of capital assets do not appear in the earnings statements. They are, however, included on the balance sheets. Current liabilities on the balance sheet include both current debts as well as the current portion of intermediate-term and long-term liabilities. Government payments include state program payments and those from FSA programs. Crop insurance indemnities are recorded as Crop Revenue. Your Farm Credit team of ag finance specialists encourages you to review the following financial data thoughtfully and thoroughly. It allows you to identify your strengths and weaknesses and to improve your operation for the future.
32 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE A-1.
COMPARISON BETWEEN YEARS / Earnings Worksheet TABLE A-1. COMPARISON BETWEEN YEARS--EARNINGS WORKSHEET
Number of Farms Average Number of Cows
2021
2022
2023
2024
2025
164 568
139 821
283 726
122 820
136 941
Receipts Milk Sales Cattle Sales Crop Sales Government Payments Other CASH RECEIPTS
$2,823,528 178,352 131,208 114,168 116,440 $3,363,696
$5,423,526 325,937 188,009 74,711 209,355 $6,221,538
$4,127,552 397,364 257,246 193,116 322,102 $5,297,380
$5,200,619 606,705 154,443 41,044 272,089 $6,274,900
$7,379,667 1,510,425 140,674 78,421 350,918 $9,460,105
Accrual Adjustments + Change in Inventory-Raised Livestock VALUE OF FARM PRODUCTION (a)
$1,136 $3,364,832
$4,926 $6,226,464
$726 $5,298,106
$24,363 $6,299,263
$76,689 $9,536,794
$29,536 89,176 1,012,176 100,536 189,144 98,832 502,112 64,752 138,024 110,760 6,248 $2,341,296 $1,023,536
$56,649 165,842 1,635,432 216,744 289,813 254,510 629,707 116,852 260,257 146,959 54,186 $3,826,951 $2,399,513
$66,792 178,596 1,438,932 136,730 355,740 156,816 514,734 121,000 218,042 149,556 36,058 $3,372,996 $1,925,110
$46,383 162,142 1,605,573 147,404 349,602 175,159 766,414 117,029 259,316 181,193 39,717 $3,849,932 $2,449,331
$79,455 310,481 2,645,839 223,855 523,174 238,340 1,221,230 163,749 375,196 283,022 44,131 $6,108,472 $3,428,322
44,304 87,472 57,936 208,456 43,736 62,480 56,800
87,026 171,589 95,236 363,703 78,816 113,298 201,966
69,260 209,330 145,442 302,500 65,340 100,672 265,958
78,684 280,587 115,497 339,725 58,226 104,712 254,543
117,470 401,049 161,733 551,284 89,321 187,329 250,002
191,416 $752,600 $3,093,896
369,450 $1,481,084 $5,308,035
348,964 $1,507,466 $4,880,462
355,066 $1,587,040 $5,436,972
531,502 $2,289,690 $8,398,162
$270,936 58,504 $212,432 22,720 $235,152
$918,429 142,854 $775,575 48,439 $824,014
$417,644 205,700 $211,944 48,642 $260,586
$862,291 93,070 $769,221 33,543 $802,764
$1,138,632 85,624 $1,053,008 27,462 $1,080,470
COST OF GOODS SOLD Chemicals & Sprays Custom Hire Purchased Feed Fertilizer & Lime Freight & Trucking (Marketing) Gasoline, Fuel & Oil Hired Labor Seed & Plants Supplies Veterinary, Medicine & Breeding Cow Replacements Total Cost of Goods Sold Gross Margin OVERHEAD Insurance Interest Rent Repairs Property & Misc. Taxes Utilities Other Accrual Adjustments + Depreciation Total Overhead Expenses Total Farm Production Costs (b) NET FARM EARNINGS (a) - (b) - Family Living & Income Taxes NET EARNINGS + Net Nonfarm Income NET HOUSEHOLD INCOME
Note: Expenses are adjusted for changes in accounts payable, prepaid expenses, and supply inventories to remove the effects of tax planning and reflect only one year's expenses.
NORTHEAST DAIRY FARM SUMMARY 2025 33
TABLE A-2.
COMPARISON BETWEEN YEARS / Earnings Worksheet Per Cwt. TABLE A-2. COMPARISON BETWEEN YEARS–EARNINGS WORKSHEET PER CWT. 2025 136
$19.21 1.22 0.89 0.78 0.79 $22.89
2022 2023 2024 139 283 122 821 726 820 DOLLARS PER CWT. OF MILK $26.66 $22.75 $23.93 1.60 2.19 2.57 0.92 1.42 0.80 0.37 1.06 0.27 1.03 1.78 1.41 $30.58 $29.20 $28.98
$0.01 $22.90
$0.02 $30.60
$0.00 $29.20
-$0.08 $28.90
$0.44 $30.65
$0.20 0.61 6.90 0.69 1.29 0.67 3.42 0.44 0.94 0.76 0.04 $15.96 $6.94
$0.28 0.82 8.04 1.07 1.42 1.25 3.10 0.57 1.28 0.72 0.27 $18.82 $11.78
$0.37 0.98 7.93 0.75 1.96 0.86 2.84 0.67 1.20 0.82 0.20 $18.58 $10.62
$0.19 0.81 7.00 0.78 1.51 0.86 3.13 0.60 1.48 0.80 0.17 $17.33 $11.57
$0.20 0.91 7.71 0.83 1.32 0.76 3.32 0.65 1.27 0.82 0.47 $18.26 $12.39
0.30 0.60 0.40 1.42 0.30 0.43 0.38
0.43 0.84 0.47 1.79 0.39 0.56 0.99
0.38 1.15 0.80 1.67 0.36 0.55 1.49
0.43 1.58 0.52 1.62 0.32 0.56 1.56
0.42 1.52 0.61 1.69 0.33 0.62 1.75
1.31 $5.14 $21.10
1.82 $7.29 $26.11
1.92 $8.32 $26.90
1.96 $8.55 $25.88
1.81 $8.75 $27.01
NET FARM EARNINGS (a) - (b) - Family Living & Income Taxes NET EARNINGS
$1.80 0.40 $1.40
$4.49 0.70 $3.79
$2.30 1.13 $1.17
$3.02 0.66 $2.36
$3.64 0.60 $3.04
+ Net Nonfarm Income NET HOUSEHOLD INCOME
0.16 $1.56
0.24 $4.03
0.27 $1.44
0.25 $2.61
0.21 $3.25
Number of Farms Average Number of Cows Receipts Milk Sales Cattle Sales Crop Sales Government Payments Other CASH RECEIPTS Accrual Adjustments + Change in Inventory-Raised Livestock VALUE OF FARM PRODUCTION (a) COST OF GOODS SOLD Chemicals & Sprays Custom Hire Purchased Feed Fertilizer & Lime Freight & Trucking (Marketing) Gasoline, Fuel & Oil Hired Labor Seed & Plants Supplies Veterinary, Medicine & Breeding Cow Replacements Total Cost of Goods Sold Gross Margin OVERHEAD Insurance Interest Rent Repairs Property & Misc. Taxes Utilities Other Accrual Adjustments + Depreciation Total Overhead Expenses Total Farm Production Costs (b)
2021 164 568
Note: Expenses adjusted for changes in accounts payable, prepaid expenses and supply inventories to remove the effects of tax planning and reflect only one year's expenses.
34 2025 NORTHEAST DAIRY FARM SUMMARY
941
$22.21 5.39 0.54 0.44 1.63 $30.21
TABLE A-3.
COMPARISON BETWEEN YEARS / Balance Sheet Summary TABLE A-3. COMPARISON BETWEEN YEARS–BALANCE SHEET SUMMARY
Number of Farms Average Number of Cows
2021
2022
2023
2024
2025
164 568
139 821
283 726
122 820
136 941
DOLLARS PER FARM
Assets Livestock Feed & Crops Machinery & Equipment Farm–Land & Buildings All Other TOTAL ASSETS
$1,170,080 731,584 1,284,248 3,527,848 1,255,848 7,969,608
$1,751,193 1,233,142 2,774,159 5,091,021 2,924,402 13,773,917
$1,565,982 1,047,618 2,193,972 6,802,620 1,891,230 13,501,422
$2,501,820 $1,263,620 $2,786,360 $6,605,920 $3,291,480 16,449,200
$3,412,066 $1,471,724 $3,760,236 $7,587,283 $2,962,268 19,193,577
TOTAL LIABILITIES
2,653,696
4,269,200
4,338,576
5,341,480
7,287,104
TOTAL NET WORTH
$5,315,912
$9,504,717
$9,162,846
$11,107,720
$11,906,473
DOLLARS PER COW Assets Livestock Feed & Crops Machinery & Equipment Farm-Land & Buildings All Other TOTAL ASSETS
$2,060 1,288 2,261 6,211 2,211 14,031
$2,133 1,502 3,379 6,201 3,562 16,777
$2,157 1,443 3,022 9,370 2,605 18,597
$3,051 1,541 3,398 8,056 4,014 20,060
$3,626 1,564 3,996 8,063 3,148 20,397
TOTAL LIABILITIES
4,672
5,200
5,976
6,514
7,744
TOTAL NET WORTH
$9,359
$11,577
$12,621
$13,546
$12,653
DOLLARS PER CWT. OF MILK Assets Livestock Feed & Crops Machinery & Equipment Farm–Land & Buildings All Other TOTAL ASSETS
$7.98 4.99 8.76 24.06 8.56 $54.34
$8.61 6.06 13.64 25.03 14.38 $67.72
$8.23 5.51 11.54 35.77 9.94 $70.99
$12.14 6.13 13.52 32.06 15.97 $79.82
$13.96 6.02 15.38 31.04 12.12 $78.52
TOTAL LIABILITIES
18.09
20.99
22.81
25.92
29.81
TOTAL NET WORTH
$36.25
$46.73
$48.18
$53.90
$48.71
PERCENT NET WORTH
67%
69%
68%
68%
62%
NORTHEAST DAIRY FARM SUMMARY 2025 35
TABLE A-4.
COMPARISON BETWEEN YEARS / YEARS–EVALUATION Evaluation FACTORS Factors TABLE A-4. COMPARISON BETWEEN Number of Farms Average Number of Cows
2021 164 568
2022 139 821
2023 283 726
2024 122 820
2025 136 941
Worker Equivalents Cows Per Worker Pounds of Milk Sold Per Worker
10.9 52 1,343,002
14.6 50 1,254,778
14.0 49 1,224,461
15.3 47 1,195,659
15.9 51 1,338,310
Pounds of Milk Sold Pounds of Milk Sold Per Cow Milk Price Per Cwt.
14,665,582 25,823 $19.21
20,340,275 24,775 $26.66
18,142,014 24,989 $22.76
20,340,275 25,130 $23.93
20,340,275 25,976 $22.21
1,240 2.2
1,157 1.9
1,113 1.8
1,140 1.9
1,191 1.7
Feed Cost Per Cow Feed as a Percent of Milk Sales Feed & Crop Expense Per Cow* Feed & Crop Expense Per Cwt.
$1,782 36% $2,125 $8.23
$1,992 30% $2,468 $9.91
$1,982 35% $2,429 $9.72
$1,760 29% $2,154 $8.54
$2,002 34% $2,439 $9.39
Machinery Costs Per Cow** Machinery Costs Per Cwt.
$874 $3.38
$1,246 $5.16
$1,360 $5.48
$1,139 $4.56
$1,343 $5.18
Labor & Family Living Per Cow Labor & Family Living Per Cwt.
$983 $3.81
$937 $3.81
$992 $3.96
$946 $3.74
$1,017 $3.91
Assets Per Cow Debt Per Cow
$14,031 $4,672
$16,777 $5,200
$18,597 $5,976
$20,060 $6,514
$20,397 $7,745
Net Worth Per Cow
$9,359
$11,577
$12,621
$13,546
$12,652
Percent Net Worth
67%
69%
68%
69%
62%
Total Crop Acres Crop Acres Per Cow
*Feed & Crop Expense = Feed + Seed & Plants + Fertilizer + Chemicals & Spray. **Machinery Costs = Machinery Repairs + Fuel & Oil + Custom Hire + Machinery & Equipment Depreciation.
36 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE B-1.
2025 DATA BY HERD /DATA Earnings Worksheet TABLESIZE B-1. 2025 BY HERD SIZE--EARNINGS WORKSHEET Number of Farms Average Number of Cows
299 COWS OR FEWER 27 181
Receipts
300-699 COWS 43 507
700 COWS OR MORE 66 2,136
ALL FARMS BY COLUMN* 122 941
ALL FARMS BY FARMS** 136 1,233
DOLLARS PER COW
Milk Sales Cattle Sales Crop Sales Government Payments Other CASH RECEIPTS
$5,764 $752 $155 $182 $439 $7,292
$5,680 1,191 158 105 395 $7,529
$6,041 2,261 106 53 262 $8,723
$5,828 1,401 140 113 365 $7,848
$5,985 1,225 114 64 285 $7,673
Accrual Adjustments + Change in Inventory-Raised Livestock VALUE OF FARM PRODUCTION (a)
$258 $7,550
$13 $7,542
$70 $8,793
$114 $7,962
$62 $7,735
$24 $221 $1,790 $255 $261 $192 $601 $192 $383 $173 $223 $4,315 $3,235
$68 232 2,043 221 328 210 980 190 307 232 101 $4,912 $2,630
$65 256 2,173 173 444 191 1,004 123 301 231 41 $5,002 $3,791
$52 236 2,002 216 344 198 862 168 330 212 122 $4,743 $3,219
$64 252 2,146 182 424 193 990 133 304 230 36 $4,954 $2,781
COST OF GOODS SOLD Chemicals & Sprays Custom Hire Purchased Feed Fertilizer & Lime Freight & Trucking (Marketing) Gasoline, Fuel & Oil Hired Labor Seed & Plants Supplies Veterinary, Medicine & Breeding Cow Replacements Total Cost of Goods Sold Gross Margin OVERHEAD Insurance Interest Rent Repairs Property & Misc. Taxes Utilities Other Accrual Adjustments + Depreciation Total Overhead Expenses Total Farm Production Costs (b)
$119 $461 $210 $413 $92 $180 $780
116 420 134 454 99 154 437
91 307 128 447 68 151 145
109 396 157 438 86 162 454
95 325 131 447 72 152 203
$504 $2,759 $7,074
489 $2,303 $7,215
420 $1,757 $6,759
471 $2,273 $7,016
431 $1,856 $6,810
NET FARM EARNINGS (a) - (b) - Family Living & Income Taxes NET EARNINGS + Net Nonfarm Income NET HOUSEHOLD INCOME
$476 $287 $189 $76 $265
$327 123 $204 75 $279
$2,034 55 $1,979 13 $1,992
$946 155 $791 55 $845
$925 69 $856 22 $878
Note: Expenses adjusted for changes in accounts payable, prepaid expenses, and supply inventories to remove the effects of tax planning and reflect only one year's expenses.
*This weighs each column equally, to account for the difference in sample sizes across the three size categories **This averages the data by number of farms, which puts more weight on the 700+ cow category
NORTHEAST DAIRY FARM SUMMARY 2025 37
TABLE B-2.
TABLE B-2. 2024 DATA BY HERD SIZE–BALANCE SHEET SUMMARY
2025 DATA BY HERD SIZE / Balance Sheet Summary Number of Farms Average Number of Cows
299 COWS OR FEWER 27 181
300-699 COWS 43 507
700 COWS ALL FARMS ALL FARMS OR MORE BY COLUMN* BY FARMS** 66 136 136 2,136 941 1,233 ASSETS PER COW
Cash & Accounts Receivable Feed & Crop Inventory Supplies & Prepaid Expenses Other Current Assets TOTAL CURRENT ASSETS
$801 1,436 143 315 $2,695
$575 1,529 122 283 $2,509
$1,056 1,728 310 325 $3,419
$811 1,564 192 308 $2,875
$848 1,464 240 280 $2,832
Dairy Livestock Machinery & Equipment Other Intermediate Assets TOTAL INTERMEDIATE ASSETS
$3,710 5,176 1,310 $10,197
$3,129 3,805 1,741 $8,675
$4,040 3,008 1,221 $8,269
$3,626 3,996 1,424 $9,046
$3,378 2,781 1,135 $7,294
Farm Real Estate Other Fixed Assets TOTAL FIXED ASSETS
$9,392 761 $10,153
$7,332 234 $7,566
$7,464 243 $7,707
$8,063 413 $8,476
$6,508 226 $6,734
TOTAL ASSETS
$23,045
$18,750
$19,395
$20,397
$16,860
LIABILITIES PER COW Accounts Payable Farm Credit Short-Term Loans Other Current Liabilities TOTAL CURRENT LIABILITIES
$280 85 843 $1,208
$210 143 989 $1,342
$184 166 786 $1,136
$225 131 873 $1,229
$166 139 711 $1,016
Farm Credit Intermediate Term Other Intermediate Liabilities TOTAL INTERMEDIATE LIABILITIES
$2,971 673 $3,644
$2,326 603 $2,929
$2,396 435 $2,831
$2,564 570 $3,134
$2,085 405 $2,490
Farm Credit Long-Term Real Estate Other Long-Term Liabilities TOTAL LONG-TERM LIABILITIES
$2,944 1,253 $4,198
$2,889 439 $3,328
$2,330 288 $2,618
$2,721 660 $3,381
$2,099 292 $2,391
TOTAL LIABILITIES
$9,050
$7,599
$6,585
$7,744
$5,897
NET WORTH PER COW OWNER'S NET WORTH
$13,995
$11,151
$12,810
$12,653
$10,963
TOTAL LIABILITIES & NET WORTH
$23,045
$18,750
$19,395
$20,397
$16,860
61%
59%
66%
62%
65%
PERCENT NET WORTH
*This weighs each column equally, to account for the difference in sample sizes across the three size categories **This averages the data by number of farms, which puts more weight on the 700+ cow category
38 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE B-3.
2025 DATA BY HERD SIZE / Evaluation Factors TABLE B-3. 2025 DATA BY HERD SIZE–EVALUATION FACTORS 299 COWS OR FEWER
300-699 COWS
700 COWS OR MORE
ALL FARMS BY COLUMN*
ALL FARMS BY FARMS**
Number of Farms Average Number of Cows
27 181
43 507
66 2,136
136 941
136 1,233
Worker Equivalents Cows Per Worker Pounds of Milk Sold Per Worker
4.7 38 962,233
10.0 51 1,292,394
32.9 65 1,760,304
15.9 51 1,338,310
20.0 62 1,649,270
Pounds of Milk Sold Per Farm Pounds of Milk Sold Per Cow Milk Price Per Cwt.
4,518,220 25,391 $22.23
12,908,220 25,460 $22.10
57,834,336 27,076 $22.29
20,340,275 25,976 $22.21
33,045,633 26,801 $22.33
406 2.3 87
816 1.6 82
2,350 1.1 72
1,191 1.7 80
1,480 1.2 74
Feed Cost Per Cow Feed Cost Per Cwt. Feed as a Percent of Milk Sales
$1,790 $7.12 31%
$2,043 $8.02 36%
$2,173 $8.03 36%
$2,002 $7.72 34%
$2,146 $8.01 36%
Feed & Crop Expense Per Cow1 Feed & Crop Expense Per Cwt.
$2,261 $8.90
$2,522 $9.91
$2,534 $9.36
$2,439 $9.39
$2,525 $9.42
Machinery Cost Per Cow2 Machinery Costs Per Cwt.
$1,330 $5.24
$1,385 $5.44
$1,314 $4.85
$1,343 $5.18
$1,323 $4.94
Labor & Family Living Per Cow Labor & Family Living Per Cwt.
$888 $3.50
$1,103 $4.33
$1,059 $3.91
$1,017 $3.91
$1,060 $3.96
$23,045 $9,050 $13,995
$18,750 $7,599 $11,151
$19,395 $6,585 $12,810
$20,397 $7,745 $12,652
$16,860 $5,897 $10,963
2.8% 1.4%
3.3% 1.8%
11.8% 15.4%
7.8% 6.3%
7.0% 7.8%
Total Crop Acres Crop Acres Per Cow Crop Acres Per Worker
Assets Per Cow Debt Per Cow Net Worth Per Cow Return on Assets3 Return on Equity4
1
Feed & Crop Expense = Feed + Seed & Plants + Fertilizer + Chemicals & Sprays. Machinery Cost = Machinery Repairs + Custom Hire + Fuel & Oil + Machinery & Equipment Depreciation. 3 Return on Assets = (Net Earnings + Interest) ÷ Average Farm Assets. 4 Return on Equity = Net Earnings ÷ Average Farm Net Worth. 2
*This weighs each column equally, to account for the difference in sample sizes across the three size categories **This averages the data by number of farms, which puts more weight on the 700+ cow category
NORTHEAST DAIRY FARM SUMMARY 2025 39
TABLE C-1.
2025 DATA BY PROFIT GROUPS / Earnings Worksheet TABLE C-1. 2025 DATA BY PROFIT GROUPS–EARNINGS WORKSHEET
Number of Farms Average Number of Cows
BOTTOM 25%
THIRD 25%
PROFIT GROUP SECOND 25%
TOP 25%
ALL FARMS
34 614
34 1,467
34 1,169
34 1,680
136 941
Receipts Milk Sales Cattle Sales Crop Sales Government Payments Other CASH RECEIPTS
DOLLARS PER COW $5,546 908 72 94 364 $6,984
$5,956 1,103 65 56 275 $7,455
$5,919 1,844 144 76 283 $8,266
$6,224 1,786 152 51 265 $8,478
$5,828 1,401 140 113 366 $7,848
$40 $7,024
$122 $7,577
$68 $8,334
$144 $8,622
$114 $7,962
Chemicals & Sprays Custom Hire Purchased Feed Fertilizer & Lime Freight & Trucking (Marketing) Gasoline, Fuel & Oil Hired Labor Seed & Plants Supplies Veterinary, Medicine & Breeding Cow Replacements Total Cost of Goods Sold Gross Margin OVERHEAD Insurance Interest Rent Repairs Property & Misc. Taxes Utilities Other Accrual Adjustments
$31 246 1,955 236 360 235 1,091 247 367 249 374 $5,391 $1,633
$82 249 2,214 189 435 182 994 116 316 248 11 $5,036 $2,541
$70 322 2,222 163 441 191 967 140 315 217 16 $5,064 $3,270
$58 208 2,106 168 428 190 968 100 265 216 73 $4,780 $3,842
$52 236 2,002 216 344 198 862 168 330 212 123 $4,743 $3,219
120 509 135 497 97 173 215
82 335 116 447 59 151 175
97 344 195 530 52 144 261
97 237 99 372 90 144 182
109 396 157 438 86 162 454
+ Depreciation Total Overhead Expenses Total Farm Production Costs (b)
605 $2,351 $7,742
428 $1,793 $6,829
321 $1,944 $7,008
448 $1,669 $6,449
471 $2,273 $7,016
NET FARM EARNINGS (a) - (b) - Family Living & Income Taxes NET EARNINGS + Net Nonfarm Income NET HOUSEHOLD INCOME
-$718 88 -$806 19 -$787
$748 62 $686 16 $702
$1,326 66 $1,260 19 $1,279
$2,173 72 $2,101 31 $2,132
$946 155 $791 54 $845
Accrual Adjustments + Change in Inventory-Raised Livestock VALUE OF FARM PRODUCTION (a) COST OF GOODS SOLD
Note: Expenses adjusted for changes in accounts payable, prepaid expenses and supply inventories to remove the effects of tax planning and reflect only one year's expenses.
40 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE C-2.
2025 DATA TABLE BY PROFIT GROUPS / Balance Sheet Summary C-2. 2025 DATA BY PROFIT GROUPS–BALANCE SHEET SUMMARY
Number of Farms Average Number of Cows
BOTTOM 25%
THIRD 25%
34 614
34 1,467
PROFIT GROUP SECOND TOP 25% 25% 34 1,169
ALL FARMS
34 1,680
136 941
ASSETS PER COW Cash & Accounts Receivable Feed & Crop Inventory Supplies & Prepaid Expenses Other Current Assets TOTAL CURRENT ASSETS
$563 1,411 80 363 $2,417
$647 1,304 301 176 $2,428
$620 1,386 160 288 $2,454
$1,287 1,701 303 313 $3,604
$811 1,564 192 308 $2,875
Dairy Livestock Machinery & Equipment Other Intermediate Assets TOTAL INTERMEDIATE ASSETS
$3,101 3,714 1,491 $8,306
$3,357 2,542 892 $6,791
$3,314 2,503 1,303 $7,120
$3,547 2,846 1,100 $7,493
$3,626 3,996 1,424 $9,046
Farm Real Estate Other Fixed Assets TOTAL FIXED ASSETS
$8,908 282 $9,190
$6,263 47 $6,310
$6,073 130 $6,203
$6,155 431 $6,586
$8,063 413 $8,476
TOTAL ASSETS
$19,913
$15,529
$15,777
$17,683
$20,397
LIABILITIES PER COW Accounts Payable Farm Credit Short-Term Loans Other Current Liabilities TOTAL CURRENT LIABILITIES
$462 91 1,121 $1,674
$108 220 676 $1,004
$260 147 651 $1,058
$44 80 633 $757
$225 131 873 $1,229
Noncurrent Liabilities TOTAL LIABILITIES
7,215 $8,889
4,628 $5,632
5,089 $6,147
4,111 $4,868
6,515 $7,744
OWNER'S NET WORTH
$11,024
NET WORTH PER COW $9,897 $9,630 $12,815
$12,653
TOTAL LIABILITIES & NET WORTH
$19,913
$15,529
$15,777
$17,683
$20,397
55%
64%
61%
72%
62%
PERCENT NET WORTH
NORTHEAST DAIRY FARM SUMMARY 2025 41
TABLE C-3.
2025 DATA BY PROFIT GROUPS / Evaluation Factors TABLE C-3. 2025 DATA BY PROFIT GROUPS–EVALUATION FACTORS BOTTOM 25% Number of Farms Average Number of Cows
PROFIT GROUP THIRD SECOND 25% 25%
TOP 25%
ALL FARMS
34 614
34 1,467
34 1,169
34 1,680
136 941
Worker Equivalents Cows Per Worker Pounds of Milk Sold Per Worker
11.8 52 1,316,363
23.3 63 1,684,006
19.2 61 1,629,695
25.9 65 1,784,243
15.9 51 1,338,310
Pounds of Milk Sold Per Farm Pounds of Milk Sold Per Cow Milk Price Per Cwt.
15,508,412 25,258 $21.88
39,239,316 26,748 $22.27
31,316,341 26,789 $22.02
46,119,360 27,452 $22.57
20,340,275 25,976 $22.21
853 1.4 72
1,511 1.0 65
1,660 1.4 86
1,898 1.1 73
1,191 1.7 80
Feed Cost Per Cow Feed Cost Per Cwt. Feed as a Percent of Milk Sales Feed & Crop Expense Per Cow1 Feed & Crop Expense Per Cwt.
$1,955 $7.74 35% $2,469 $9.78
$2,214 $8.28 37% $2,601 $9.72
$2,222 $8.29 38% $2,595 $9.69
$2,106 $7.67 34% $2,432 $8.86
$2,002 $7.72 34% $2,439 $9.39
Machinery Cost Per Cow2 Machinery Cost Per Cwt.
$1,583 $6.27
$1,306 $4.88
$1,364 $5.09
$1,218 $4.44
$1,343 $5.18
Labor & Family Living Per Cow Labor & Family Living Per Cwt.
$1,179 $4.67
$1,056 $3.95
$1,033 $3.86
$1,040 $3.79
$1,017 $3.91
Assets Per Cow Debt Per Cow Net Worth Per Cow
$19,913 $8,889 $11,024
$15,529 $5,632 $9,897
$15,777 $6,147 $9,630
$17,683 $4,868 $12,815
$20,397 $7,745 $12,652
Return on Assets3 Return on Equity4
-1.5% -7.3%
6.6% 6.9%
10.2% 13.1%
13.2% 16.4%
7.8% 6.3%
Total Crop Acres Crop Acres Per Cow Crop Acres Per Worker
1
Feed & Crop Expense = Feed + Seed & Plants + Fertilizer + Chemicals & Spray. Machinery Cost = Machinery Repairs + Custom Hire + Fuel & Oil + Machinery & Equipment Depreciation. 3 Return on Assets = (Net Earnings + Interest) ÷ Average Farm Assets. 4 Return on Equity = Net Earnings ÷ Average Farm Net Worth. 2
42 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE D-1.
2025 DATA BY REGIONS / Earnings Worksheet
TABLE D-1. 2025 DATA BY REGIONS–EARNINGS WORKSHEET
Number of Farms Average Number of Cows Receipts Milk Sales Cattle Sales Crop Sales Government Payments Other CASH RECEIPTS Accrual Adjustments + Change in Inventory-Raised Livestock VALUE OF FARM PRODUCTION (a) COST OF GOODS SOLD
NEW ENGLAND 25 861 $5,980 760 69 201 331 $7,341
REGIONS NEW YORK 111 1,284 DOLLARS PER COW $5,988 1,379 123 50 279 $7,819
ALL FARMS 136 941 $5,828 1,401 140 113 366 $7,848
$12 $7,353
$70 $7,889
$114 $7,962
Chemicals & Sprays Custom Hire Purchased Feed Fertilizer & Lime Freight & Trucking (Marketing) Gasoline, Fuel & Oil Hired Labor Seed & Plants Supplies Veterinary, Medicine & Breeding Cow Replacements Total Cost of Goods Sold Gross Margin OVERHEAD Insurance Interest Rent Repairs Property & Misc. Taxes Utilities Other Accrual Adjustments Depreciation
$45 186 2,181 206 409 204 1,079 163 313 223 138 $5,147 $2,206
$66 258 2,140 181 426 192 980 129 302 235 31 $4,940 $2,949
$52 236 2,002 216 344 198 862 168 330 212 123 $4,743 $3,219
101 344 146 535 65 169 416
93 322 128 442 74 150 193
109 396 157 438 86 162 454
347
449
471
Total Overhead Expenses Total Farm Production Costs (b)
$2,123 $7,270
$1,851 $6,791
$2,273 $7,016
NET FARM EARNINGS (a) - (b) - Family Living & Income Taxes NET EARNINGS
$83 70 $13
$1,098 68 $1,030
$946 155 $791
+ Net Nonfarm Income NET HOUSEHOLD INCOME
24 $37
20 $1,050
54 $845
Note: Expenses adjusted for changes in accounts payable, prepaid expenses and supply inventories to remove the effects of tax planning and reflect only one year's expenses.
NORTHEAST DAIRY FARM SUMMARY 2025 43
TOTAL CURRENT LIABILITIES Noncurrent Liabilities TOTAL LIABILITIES
TABLE D-2.
OWNER'S NET WORTH TOTAL LIABILITIES & NET WORTH
PERCENT NET WORTH 2025 DATA BY REGIONS / Balance Sheet Summary
*Regions are divided by state not Federal Milk
44 2025 NORTHEAST DAIRY FARM SUMMARY
TABLE D-3.
2025 DATA BY REGIONS / Evaluation Factors
TABLE D-3. 2025 DATA BY REGIONS–EVALUATION FACTORS
NEW ENGLAND 25 861
REGIONS1 NEW YORK 111 1,284
Worker Equivalents Cows Per Worker Pounds of Milk Sold Per Worker
17.0 51 1,338,222
20.5 63 1,683,804
15.9 51 1,338,310
Pounds of Milk Sold Per Farm Pounds of Milk Sold Per Cow Milk Price Per Cwt.
22,694,238 26,358 $23.91
34,456,140 26,835 $22.24
20,340,275 25,976 $22.21
Total Crop Acres Crop Acres Per Cow Crop Acres Per Worker
1,317 1.5 78
1,502 1.2 73
1,191 1.7 80
Feed Cost Per Cow Feed Cost Per Cwt. Feed as a Percent of Milk Sales Feed & Crop Expense Per Cow2 Feed & Crop Expense Per Cwt.
$2,181 $8.27 36% $2,595 $9.85
$2,128 $7.93 36% $2,516 $9.38
$2,002 $7.72 34% $24,439 $9.39
Machinery Cost Per Cow3 Machinery Cost Per Cwt.
$1,272 $4.83
$1,341 $5.00
$1,343 $5.18
Labor & Family Living Per Cow Labor & Family Living Per Cwt.
$1,149 $4.36
$1,048 $3.91
$1,017 $3.91
Assets Per Cow Debt Per Cow Net Worth Per Cow
$16,308 $5,750 $10,558
$16,957 $5,982 $10,975
$20,397 $7,745 $12,652
Return on Assets4 Return on Equity5
2.2% 0.1%
8.0% 9.4%
7.8% 6.3%
Number of Farms Average Number of Cows
ALL FARMS 136 941
1 2
Regions are divided by states not Federal Milk Orders. Feed & Crop Expense = Feed + Seed & Plants + Fertilizer + Chemicals & Spray.
3
Machinery Cost = Machinery Repairs + Custom Hire + Fuel & Oil + Machinery & Equipment Depreciation.
4
Return on Assets = (Net Earnings + Interest) ÷ Average Farm Assets.
5
Return on Equity = Net Earnings ÷ Average Farm Net Worth.
NORTHEAST DAIRY FARM SUMMARY 2025 45
GLOSSARY Net Cash Farm Income
A measure of farm profitability in terms of cash flow and net cash farm income, reflects the ability of a farm business to meet its cost of production through cash income. It is equal to: Cash Receipts — Adjusted Cash Operating Expenses
Accrual Adjusted Operating Expenses
Farm operating expenses adjusted to reflect 12 months of operation and to remove the effect of tax planning. Adjustments account for changes in supply inventories, accounts payable and prepaid expenses. Operating expenses do not include family living costs or capital expenditures.
Net Household Income
An accrual measure of overall household earnings, reflecting all revenues and costs, including both farm and non-farm sources. It is equal to: Net Cash Farm Income + Change in Accounts Receivable + Change in Production Inventories + Net Nonfarm & Noncash Income - Depreciation - Family Living Expenses & Taxes
Return on Assets
Measures profit earned relative to total farm assets, including assets financed with debt and those financed with farm equity. Return on assets is equal to: Net Earnings + Interest Expense Average Assets
Return on Equity
Measures profit earned relative to a farmer’s equity investment in the farm operation. Return on equity is equal to: Net Earnings Average Net Worth
Debt Capacity
The maximum amount of capital debt that can be repaid from a farm’s cash flow, the calculation of debt capacity is described in the summary.
Reserve Debt Capacity
The amount of additional capital debt (beyond that already incurred) that a farm can service from cash flow. Reserve debt capacity represents a farm’s buffer against financial adversity. It is equal to: Debt Capacity – Capital Debt
Overhead Costs
Costs that do not vary with a change in production output, such as depreciation, interest, repairs, taxes and insurance, etc.
46 2025 NORTHEAST DAIRY FARM SUMMARY
NORTHEAST DAIRY FARM SUMMARY 2025 47
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