The big dairies are getting bigger with 834 farms having more than 2,500 cows, an increase of 120 farms versus the 2017 census. The recently released 2022 census reveals there were 24,082 dairy operations with off-farm milk sales, down from 39,303 in 2017. These herds are producing five percent more milk from 9.4 million cows, a number which remained nearly unchanged from 2017.
According to Rabobank, less than 25 percent of the U.S. milk supply was produced on farms with fewer than 500 cows, but these farms accounted for more than 80 percent of dairy operations at 20,631.
Source: Farm Progress, March 13, 2024. Link.
The move to larger farms remains mostly driven by economies of scale, with larger operations able to achieve a lower cost of production, higher margins and greater profitability.”