North Dakota expands sales of raw milk products

BISMARCK, N.D. — North Dakota dairy producers will soon be able to market not only raw milk, but also products made from it, with the passage of House Bill 1131. The new legislation takes effect Aug. 1 and amends the existing regulations for raw milk sales, which were legalized through House Bill 1515 in 2023.

“This bill clears up some of the discrepancies of the first bill,” said Rep. Dawson Holle, the primary sponsor of the new bill. “People were asking questions like, ‘Is cream considered milk?’”

Holle is a sixth-generation dairy farmer from Mandan.

HB 1131 addressed the fact that dairy producers wanted to sell cream and products made from raw milk, and consumers wanted to buy them, but the law technically applied to milk alone, said Holle. Holle, who was elected in 2023 at the age of 18, has the distinction of being the youngest legislator in North Dakota history.

“This created an additional hurdle for both farmers and consumers,” Holle said. “The expansion allows cream, butter and other products to be sold legally.”

The new bill, which amends the North Dakota Century Code, also explicitly bans donations and mandates clear labeling of all products as “raw milk” or “made with raw milk.” Like the previous law, it also prohibits sales to wholesalers and retailers and across state lines. Dairy producers selling these products are exempt from other state regulations related to food production and sales.

Holle said he sponsored the new bill and supported the first bill because he thinks raw milk products offer new outlets for milk.

“Before, we had two choices: sell to processors or sell cow or herd shares,” Holle said. “This eliminates some of the federal and state restrictions, lifts the red tape and gives dairy producers another option.”

Market access is another reason the raw milk bill was expanded, Holle said.

“Today, a 10-cow dairy cannot send milk to a processing plant,” Holle said. “As markets move, laws must move too. Whether you are large scale with 10,000 cows or small scale with just 10 cows, you should have a place in the market. Smaller farms should be given a fair shake and be able to make money at the end of the day.”

Market access is not just a concern for small farms Holle said. Larger ones, like the 1,000-cow Holstein dairy Holle operates with his family, have experienced challenges. In the past 30 months, Northern Lights Dairy has changed markets twice due to plant closures — first when Prairie Farms Dairy Inc. shut down its Bismarck plant in 2023 and then when Dairy Farmers of America ceased operations at its Pollock plant in 2024. The Holles are now shipping to the Bongards plant in Perham, Minnesota.

The only milk plant operating in the state is Cass-Clay’s facility in Fargo, on the eastern border with Minnesota. With limited market access, many farmers exited the dairy industry altogether.

Legalizing raw milk and raw milk product sales gives producers more options, especially in western North Dakota and those looking to start a dairy with limited funds and support, Holle said.

Since legalization, the unofficial count for farms selling raw milk is 23, and more are poised to come on board with the additional possibilities of the raw products market, Holle said.

“This also gives consumers in some of those 50-person towns the chance to buy local, fresh milk,” Holle said.

The trend for buying from the farm — not just the grocery store — is growing nationally and in North Dakota, Holle said.

“One farmer has a waiting list of 10 people and can’t keep up with demand,” Holle said.

With this comes an opportunity for education, Holle said.

“When raw milk first became available, we were answering questions like, ‘What is raw milk?’ and ‘Is it bad when (cream) floats to the top?’” Holle said.

This opened discussions about pasteurization, homogenization and cleanliness.

“I encourage everyone who buys raw milk to understand what pasteurization is and visit the farm where it is produced,” Holle said.

An overlooked advantage of buying directly from the farm Holle said is enhanced traceability in the event of a disease outbreak or a food safety incident. With a short supply chain, milk is not commingled, and the source of contamination can be quickly identified. This fosters greater transparency between producers and consumers.

Introduced in January, HB 1131 passed the House 82-9 and the Senate 45-0.

“We had heard the raw milk debate before, so we tweaked the bill based on comments from the last session and behind-the-scenes conversations with farmers, consumers, health providers, and both supporters and critics,” Holle said.

The bill received strong backing, clearing a final House vote 87-5 before being signed into law in late March.

To address the shortage of milk processing plants in North Dakota, lawmakers also passed Senate Bill 2342 this session. The bill, introduced by Sen. Paul Thomas, approved a special incentive program within the agriculture diversification and development fund for value-added milk processing facilities.

The program takes effect Aug. 1 and will offer grants up to $5 million for the construction or expansion of milk processing facilities that produce at least 3 million pounds of milk annually.

According to official figures, North Dakota is currently home to 25 regular-milk dairies milking 10,000 cows, with an average production of 24,000 pounds of milk per cow per year.

Cow numbers, though, are set to rise sharply as Minnesota-based Riverview LLP is seeking permits for two large operations: a 12,500-cow dairy near Wahpeton and a 25,000-cow herd near Hillsboro. Both are situated near the Minnesota border along the I-29 corridor, which has seen dairy growth in recent years.

If permits are approved, the move could help reverse the decline of dairy farms in North Dakota and strengthen the state’s dairy industry.

“If we can keep milk in-state and add more processing options in the center, that would be a big step forward,” Holle said.

The lawmaker said he entered politics to help craft legislation that empowers future generations to continue farming.

“Anything we can do to support farmers and choices for consumers is a good thing,” Holle said. “It is awesome to see growing consumer interest and encouraging signs of renewal in an industry that has seen decades of decline.”