Minnesota Faces 7% Decline in Dairy Farms Amidst Challenging Conditions
Sourse: The DairyNews
Minnesota, the nation's sixth-largest dairy-producing state, witnessed a significant setback as it reported a 7% decline in its total number of dairies in the past year. State data revealed a net loss of 58 permits in November alone, signaling a challenging season for farmers grappling with high input costs and diminishing commodity values.
As of December 1, 2023, the state recorded 1,825 permits for cow, goat, and sheep dairies, marking a decrease of 146 dairies compared to January 1, 2023, according to the Minnesota Department of Agriculture's Dairy Inspection Program. The decline is noteworthy, with some potential inflation in reporting due to seasonality or multiple permits held at a single location.
Lucas Sjostrom, Executive Director of the Minnesota Milk Producers Association, expressed concern, stating that he has not witnessed such a significant monthly decline in permits in a long time.
The challenging economic landscape has forced many farmers across the country to sell their dairies, with high operational costs and low milk values adding to their struggles. Milk values have plummeted due to a slowing economy, while higher food prices have softened demand for dairy products. However, recent months have seen some relief for farmers as prices of key feedstocks like corn and alfalfa hay have weakened.
The year-end period typically sees more farmers opting out of dairy farming, either permanently or temporarily, as they prepare for the upcoming year by storing silage or feed. The central dairy heartland of Minnesota, particularly Stearns and Morrison counties, experienced the largest losses, with 27 and 21 fewer permits in December compared to January of the previous year.
This decline in dairy farms reflects broader trends in the industry, where industrial consolidation and economic pressures have led to the reduction of licensed dairy herds across the U.S. Today, less than 28,000 licensed dairy herds remain, according to the U.S. Department of Agriculture, highlighting the challenges faced by the dairy sector.
Lucas Sjostrom, Executive Director of the Minnesota Milk Producers Association, expressed concern, stating that he has not witnessed such a significant monthly decline in permits in a long time.
The challenging economic landscape has forced many farmers across the country to sell their dairies, with high operational costs and low milk values adding to their struggles. Milk values have plummeted due to a slowing economy, while higher food prices have softened demand for dairy products. However, recent months have seen some relief for farmers as prices of key feedstocks like corn and alfalfa hay have weakened.
The year-end period typically sees more farmers opting out of dairy farming, either permanently or temporarily, as they prepare for the upcoming year by storing silage or feed. The central dairy heartland of Minnesota, particularly Stearns and Morrison counties, experienced the largest losses, with 27 and 21 fewer permits in December compared to January of the previous year.
This decline in dairy farms reflects broader trends in the industry, where industrial consolidation and economic pressures have led to the reduction of licensed dairy herds across the U.S. Today, less than 28,000 licensed dairy herds remain, according to the U.S. Department of Agriculture, highlighting the challenges faced by the dairy sector.
