Wisconsin Dairy Industry Shifts as Farm Numbers Fall

By Blake Jackson

For many years, Wisconsin has seen a steady decline in the number of dairy farms, a trend that continues into 2026. Recent licensing figures show the state began the year with roughly 5,100 active dairy herds. That total represents just over half the number of farms operating a decade ago and about one-third of the farms licensed 20 years earlier.

While the number of farms has dropped significantly, the overall dairy herd size has remained relatively stable. Wisconsin is milking about the same number of cows as it did two decades ago, and total milk production continues to inch upward each year due to gains in efficiency and productivity.

According to Steven Deller, an agricultural and applied economics professor at the University of Wisconsin-Madison, consolidation remains the primary force reshaping the dairy landscape. Rising production costs make it increasingly difficult for small and mid-sized operations to remain profitable, especially as the farming population ages.

“If you’re in your mid-60s, it just doesn’t make sense to be operating a dairy farm with 150 cows,” Deller said. “That’s demanding work, that’s really hard labor, and you hit a certain point where you just say, ‘I can’t do this anymore.’”

Deller added that high beef prices could encourage some producers to exit dairy and shift toward beef production instead.

Ben Miller, chief operating officer of Dairy Farmers of Wisconsin, said decisions about continuing to milk cows often depend on individual family circumstances, including whether a younger generation plans to take over. Miller emphasized that consolidation is occurring across all areas of agriculture, not just dairy.

“I think farmers and farm families are making the very best decisions for their circumstances,” Miller said. “I don’t want to characterize that as a good thing or a bad thing.”

Despite fewer farms, Miller said the dairy industry remains economically strong, supported by growing demand for products like butter, cheese, whole milk, and cottage cheese. Both experts agree farm numbers will keep falling, while conversations around environmental impact and rural communities will continue for decades.

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