Dairy farms decline as industry grows

A changing dairy industry is forcing farmers to choose between expanding their operations or risking being pushed out.

By

National News

August 31, 2026 - 3:23 PM

Holstein milking cows at an Idaho dairy. Photo by Kirsten Strough/USDA

This year, a Pennsylvania dairy farm with roots reaching back to before the Civil War shut down. Its closure is part of a decades-long decline: the U.S. has been losing more than 2,100 dairy farms, on average, every year since 2003.

But the U.S. dairy industry is not shrinking. It is producing more milk from fewer farms. Better genetics and larger, more efficient operations have helped the industry increase milk production while driving thousands of smaller, often family-run farms out of business.

Dairy is part of a larger transformation in American agriculture. Rising…

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