Decline of dairy farms slows

The number of dairy farms has been decreasing at a steady rate. But in 2024, the rate of decline slowed in Minnesota according to Nicole Neeser, DVM, division director of dairy and meat inspection with the Minnesota Department of Agriculture.

Neeser said MDA tracks dairy farm permit numbers as a part of their work inspecting dairy farms and ensuring all dairy farms are following pasteurized milk requirements.

“I think the Minnesota dairy industry will continue to see some farm numbers decline,” Neeser said. “Many of the farms we’re seeing go out of business are from retirement or farmers that are done with dairy farming and maybe moving on to a different kind of farming.”

Dairy numbers across the Midwest have ranged in the last years. In January, Minnesota ended with over 1,700 dairy farms, Iowa had a total of 854, South Dakota had 134, Nebraska had 78 and North Dakota had 23.

Currently, Minnesota’s dairy numbers are lower than past years and still decreasing. In the last six months, Minnesota saw a decrease in dairy farm numbers of close to 100. From October to December 2024, all counties in Minnesota had lost farms or remained the same.

However, this number includes seasonal farms, such as goat herds, that quit milking in the winter. As these herds start their kidding seasons and come back onto the market the dairy numbers will begin to increase. With this, Neeser said July offers the most accurate number of dairy farms.

Goat herds provide a positive outlook on dairy farm numbers Neeser said. More dairy goat herds are being added around Minnesota.

“I think the goat milk market continues to grow and that has an impact in terms of the number of farms there are,” Neeser said.

One of the biggest changes Neeser said she expects to see relates to the number of Grade B bovine dairy farms. The latest numbers as of Jan. 24 showed less than 20 dairy farms under this category. The reason this is happening Neeser said is because of market pressure, where processing plants want to have a uniform milk source.

Here, dairy goats are keeping Grade B milk numbers up. Neeser said there are around 100 goat dairies in the Grade B category when they are all active.

The top dairy counties in Minnesota, as of December 2024, include Stearns with 328, Todd with 126 and Morrison with 118. The top dairy counties for Iowa are Dubuque with 98, Johnson County with 81 and Clayton with 74. Nebraska’s top counties were Cedar with 12, and Antelope, Jefferson, Lancaster and Wayne with five each. The top counties in South Dakota included Minnehaha, Brookings and Grant.

Even with farm numbers decreasing, the dairy industry is keeping production levels similar. This is through the expanding of dairy farms, the building of new facilities with larger herds and the increased production of herds.

Each year dairy farmers are faced with challenges in order to keep dairying. Economics plays a major role in whether a dairy farm will survive and continue. Between cost of production and market prices, they have to remain profitable even when prices are low.

“In general, we are seeing a decline (in farm numbers) but the decline has not been as steep as previous years,” Neeser said.