Wisconsin Bill Proposes Low-Interest Loans for Small Dairy Farms Amid Industry Consolidation

A new bill moving through the Wisconsin Legislature, known as Senate Bill 323, seeks to provide low-interest loans to small dairy farmers to enhance efficiency and production amid rapid industry consolidation. Wisconsin has seen a dramatic reduction in dairy farms, losing nearly 18,000 over two decades, with only about 6,000 remaining as of 2022. The bill, introduced in July 2025, proposes a $20 million innovation program fund for purchasing new equipment and improving animal health practices.

The legislation, spearheaded by State Sen. Rob Stafsholt, aims to support small and medium-sized farms, which have seen a 67% decrease in numbers since 2002. The bill allows these farms to access up to $500,000 each through the state's agricultural department. However, larger farms, represented by groups such as the Wisconsin Farm Bureau and the Dairy Business Association, are lobbying for changes to remove the cap on animal units, which currently stands at 999 units, roughly equivalent to 700 dairy cattle.

These groups argue that excluding large farms from the funding could weaken rural economies. However, maintaining the cap is seen as essential by some, like Darin Von Ruden of the Wisconsin Farmers Union, to ensure the funds benefit a wider range of farmers.

Impact on Undocumented Workforce

The bill also addresses the use of undocumented labor in the dairy industry, stipulating that only farms employing authorized workers may apply for the loans. This provision has raised concerns among industry lobbyists due to the high reliance on undocumented labor, estimated to be nearly 70% of the workforce in Wisconsin's dairy sector.

Despite these discussions, the language regarding both the animal unit cap and labor requirements remains unchanged. The bill passed the Senate with an 18 to 15 vote on January 21 and awaits consideration by the state Assembly.