Low Milk Prices Drive Losses in U.S. Dairy Farms, Call for Policy Action

The U.S. dairy industry is in a state of crisis, with more than 40% of dairy farms having disappeared since 2017. The primary cause identified is the prolonged period of low and volatile milk prices, which have been exacerbated by the cyclical boom and bust nature of the market. This situation has been particularly challenging for small and mid-sized dairy farmers who find it difficult to compete.

Michelle Ramirez-White, the government relations director for the Wisconsin Farmers Union, highlighted the need for long-term policy solutions to stabilize milk prices for producers. She emphasized that without such changes, the trend towards consolidation in the dairy industry is likely to continue, further straining smaller operations.

Dairy Together, an initiative led by the Wisconsin Farmers Union, is advocating for the implementation of a program aimed at limiting growth within the industry. According to Ramirez-White, such a program would help manage the supply of fluid milk and slow down the rapid expansion that has contributed to the current market instability.

The initiative is part of a broader, farmer-led, multi-state collaboration designed to educate the industry on the importance of growth management in supporting the dairy economy. By encouraging policies that address supply and demand dynamics, Dairy Together seeks to create a more sustainable and stable market environment for dairy producers.

Ramirez-White noted that without meaningful policy intervention, the current trajectory of farm closures and industry consolidation is likely to persist, making it increasingly challenging for many producers to remain viable in the market.