Since the first of the year, it appears dairy producers have been combing the countryside looking for dairy replacements in order to capitalize on record milk prices. As a result, the average price of dairy replacements shot up $370 per head in just three months. That resulted in an unprecedented 26 percent run-up in prices to $1,810, according to USDA's April Agricultural Prices.

Of course, milk prices aren't the only contributing factor to the recent move on replacement values. Record prices for ground beef have driven cull cow prices to new records, as well. Many market-ready cull cows are netting well over $1,000, with large-framed dairy cattle bringing $1,500 or more. However, the demand for milk and dairy replacements appears to be trumping the beef market. Through March, 77,000 fewer dairy cows (-9.3 percent) have been culled when compared to January 1 to March 31, 2013.

Replacement values have varied by region. Topping the market was Arizona and Colorado where values moved nearly $500 to push $2,000 per head. Topping all regions with a $550 gain in values was Idaho where replacements moved from $1,400 to $1,950 from January to April. California, despite its massive drought, was close behind as cattle prices moved from $1,300 to $1,800.

The only other state where averages were above $1,875 was Wisconsin which averaged $1,900, up $330. At the moment, the lowest prices were reported in New York at $1,660.

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