January 2, 2024

Dairy farm numbers decline in central Minnesota, US counties

Recent data from the Department of Agriculture in Minnesota, United States, has showed decline in the number of dairy farms, a decrease of 21 permits to 124 permits in Morrison County and 27 permits to 356 permits in Stearns County, compared to January last year, KNSI Radio reported.

Minnesota holds a significant position in the national dairy production landscape, ranking eighth in the US. But the state is grappling with a reduction in dairy farmer permits, indicative of broader challenges facing the industry.

According to the American Farm Bureau Federation, farmers are facing increased costs for feed, labour, fuel, and fertilizer, while simultaneously experiencing a downturn in milk prices. Economic factors, including a slower economy and soaring food costs, are contributing to diminished demand for milk and other dairy products.

The global market is also a factor, with growing milk production worldwide flooding the market, as noted by Dutch multi-national banking corporation Rabobank.

The US House of Representatives has recently voted in favour of reintroducing whole milk to school lunch menus nationwide, potentially boosting domestic demand.

While the decline in dairy farm permits doesn't signify the disappearance of farms, some farmers are adapting to market conditions. With beef cattle prices remaining strong, there's a possibility that some farmers are transitioning away from dairy, opting to send lower-producing cattle to auction for increased revenue.

The US Department of Agriculture reports that the milking herd has remained robust, with nearly nine million head recorded in June.

-      KNSI Radio