Dairy producers worldwide are navigating a challenging start to the year, as rising milk supply and falling commodity prices squeeze farm margins, according to the latest Global Dairy Outlook.
ISU Extension dairy specialist Fred Hall says abundant milk production across major exporting regions has driven significant price declines.
Milk production remains elevated globally, though growth is slowing. Total output is forecast to increase just 0.2 percent in 2026, a sharp slowdown from 2.6% growth in 2025. The United States continues to lead that expansion, with February production up nearly 3% year-over-year and herd sizes reaching their highest levels since the 1990s. Hall says milk processors have encouraged producers to keep increasing output.
The USDA’s March Milk Production report shows Iowa cow numbers up 1,000 from a year ago, now totaling 245,000. Total milk production in the state increased 1.5% compared to 2025. Hall says to weather the current challenges, producers need to stay focused on the fundamentals.
He says there are still some bright spots ahead.
One potential long-term solution may lie in soybeans.
Iowa currently has approximately 660 licensed dairies with about 245,000 milking cows.
