Last week, FCIC Board of Directors met in Washington, D.C. There were a number of livestock changes considered for RY2027. This article is the first in a series of blog posts that discuss the changes approved – or disapproved.

For RY2026, we introduced two new coverage options of interest to dairy farmers: beef-on-dairy calves, and dairy cull cows. While we originally requested coverage for dairy cull cows to be approved up to 52 weeks out, the Board only approved 13-week endorsements for RY2026. Eight months into the crop year, the consequences were clear – dairy farmers wholeheartedly embraced the new unborn calves type, but were mostly not interested in short-term cull cow coverage.

Through the end of January 2026, only 20K dairy cull cows were covered under LRP, vs. half a million beef-on-dairy calves.

In our presentation to the Board, we pointed out that dairy cow culling is very stable over time.

Case Anker, owner of Poplar Lane Dairy in Hanford, CA, joined the FCIC meeting to make the case on behalf of dairy farmers:

Poplar Lane Dairy has a mature herd size of around 2450 cows. We have been at this size for about the last 10 years. Culling decisions are based on many factors. I would consider the number one factor, however, to be my replacement population. If I have 1150 replacements for 2026, I can safely assume my culling is going to be very close to 1150 for 2026. Not including disaster events, such as bird flu, most dairies will cull to meet capacity needs.

Around 28-34% of our culling is due to involuntary culling. Involuntary culling represents things such as mastitis, abortions, failure to conceive, etc. Voluntary culling represents cows that are on the bottom end of profitability. For example, if I know I have a high replacement month coming in May, let’s say 135 heifers to freshen, and my facility is already at capacity, I would cull heavier at the end of April or early May to ensure I have room for those replacements.

Beef income has become such an important contributor to our overall business. Personally, my milk income over feed costs were worse than 2009 in the 4th quarter of this year, but the beef income allowed us to stay afloat. I think any opportunity to improve a hedging tool on the beef side of our operation would be very welcome and appreciated by the industry.” 

Based on arguments presented, the Board approved the expansion of dairy cull cow coverage from 13 to 52 weeks, starting July 1, 2026.