In 2024, Texas produced 17.04 billion pounds of milk while Idaho produced 17.02 billion pounds. That difference was equal to about a third of a day’s worth of milk production.

In milk production terms, it was the thinnest of margins both years, said Idaho Dairymen’s Association Executive Director Rick Naerebout.

“They passed us last year by about a third of one day’s production, and we passed them back by just shy of one day’s production,” he said. “It’s kind of fun to have this back and forth, but really, we’re not talking big differences between three and four. We’re neck in neck.”

Before 2024, Idaho had a solid hold on the No. 3 spot for about 15 years since passing New York. Those two states played leapfrog for the No. 3 spot for a few years until Idaho pulled away for good.

Now, it appears Idaho will play leapfrog with Texas.

Naerebout expects the two states to continue vying for the No. 3 spot for a while.

“I think you’ll see Idaho and Texas trade back and forth between three and four going forward,” he said. “In both states, the industry is in a growth mode; we’ve both got great environments and great business climates to operate dairy farms in, so I think you’re going to see us be neck and neck for a number of years to come.”

For the past couple of years, Texas has produced more milk than Idaho during the colder months, while Idaho produces more milk during the warmer months.

“They’ve got a little bit of a milder winter, so their cows do a little better in the winter than our cows do, and we have a milder summer, so we do better in the summer months,” Naerebout said.

California is the nation’s No. 1 dairy state, and Wisconsin is No. 2. Those states’ dairies produced 41 billion pounds and 32.6 billion pounds, respectively, in 2025.

According to estimates by University of Idaho economists, Idaho’s dairy operations brought in $3.9 billion in farm-gate receipts in 2025.

There are 19 dairy processing facilities around the state, but the industry is centered in the Magic Valley of southcentral Idaho.

According to a study by U of I agricultural economists, the direct economic impact of the state’s dairy industry is $7 billion, and the milk sector is responsible for 9,000 jobs directly, both on dairy farms and in the milk processing industry.

When you include the indirect impacts of the industry, the numbers jump to 33,000 jobs and the economic impact is north of $11 billion.

The study also found the state’s combined dairy industry was responsible for generating $155 million in state and local taxes, including $61 million in sales tax, $45 million in property tax and $30 million in income tax.

That study was based on data available in 2020, and Idaho’s dairy industry has seen significant expansion since then. Add in general inflation and those economic impact numbers are likely much higher now.

According to the U.S. Dairy Export Council, Idaho’s dairy industry contributes, directly and indirectly, 5.7 percent to Idaho’s total gross domestic product.

Source: Inter-Mountain Farm & Ranch