Wisconsin dairy farmers are facing market declines, with the state’s Department of Agriculture, Trade, and Consumer Protection (DATCP) reporting a drop of 455 dairy farms last year. Over the last decade, Wisconsin’s total cow population has remained stable at approximately 1.2 million cows. CEO Chad Vincent of Dairy Farmers of Wisconsin has worked closely with the Department of Agriculture and sent out a farm survey in March 2020, inquiring about dairy producers’ plans to stay in business and whether they have a succession plan in place.
At the time, 17% of the state’s dairy farms said they would stop milking within five years. According to the 2020 survey, 22% of all dairies with fewer than 100 employees intend to close within the next five years. This is heavily influenced by the milk price, costs, financials, economics, and other variables.
In the last three months, Wisconsin’s Department of Agriculture reported 94 dairies closing in October, 94 in November, and 87 in December. The majority of those numbers lean toward smaller dairies, as the state has more farms with fewer than 200 cows than farms with more than 200 cows. Wisconsin had 5,895 dairies when the new year began. Vincent believes that the dairy industry will not slow down in the next three to five years, as 65% of primary decision-makers on the farm were over the age of 50, and 15% were over 65.
Despite the harsh reality that America’s Dairyland is losing farms, Wisconsin dairy is as strong as ever, though it is unfortunate that the next generation will not return. Dairy farming is difficult work, with a scarcity of labor and talented workers. When dairy farmers retire, they frequently sell their cows and keep them in the state.
The good news is that Wisconsin has excellent infrastructure, and milk and cheese production and sales continue to grow. However, the lack of the next generation or the ability to weather the storm is unfortunate, as Wisconsin’s diverse farm landscape makes it America’s Dairyland.
