Record High Calf Prices and LRP: Boosting Margins & Managing Risk

Across the country, dairy producers are seeing an unexpected bright spot in their bottom lines — record-high calf prices. In the past month, feeder cattle prices have reached record highs, with beef calf prices surpassing $1,600 per head. The growing beef-on-dairy trend has transformed calf sales into a meaningful revenue stream, adding $3.00 or more per hundredweight to many producers’ bottom lines.

At the same time, the Livestock Risk Protection (LRP) program has expanded to help producers protect that income. LRP is a federally subsidized risk management program designed to protect against a decline in livestock prices, allowing producers to set a price floor and mitigate risk from marketplace volatility.

Coverage has been extended to beef-on-dairy calves and dairy cull cows. Currently, producers can protect a price floor ranging from $1,100 to over $1,400 per calf with coverage dates through September 2026. Together, strong calf markets and smarter risk tools are reshaping how dairies manage revenue and volatility.

Why it matters

The convergence of record-high beef demand, premium pricing for beef-on-dairy calves and expanded LRP risk management options is creating new opportunities within the industry. What was once a liability is now an asset. Producers now have access to a supplemental revenue stream that can help stabilize farm income and further insulate dairy operations from the volatility of milk markets.

If you’re a dairy producer or advisor looking to explore how these tools can be applied on your farm, Farm Credit East is ready to help you put together a holistic risk and revenue plan. For more program specifics and risk management plan development, please reach out to your Crop Growers Dairy and Livestock Risk Management Specialist or your local Farm Credit East office.

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