While politicians celebrate National Ag Day in DC, 40% of dairy farms have vanished in just five years. The hard truth is that big gets bigger while small disappears.
While bureaucrats and politicians pat themselves on the back during today’s National Ag Day celebrations, dairy farmers across America continue milking cows at 4 AM with little recognition and mounting regulatory burdens. The USDA’s glossy presentations and Capitol Hill photo-ops won’t mention how dairy farm numbers have plummeted while plant-based alternatives receive favorable treatment from regulators and media alike. Today’s National Ag Day events in Washington showcase agriculture’s importance, but The Bullvine asks: Why is dairy consistently treated as agriculture’s problematic stepchild despite being its economic backbone?
QUICK TAKE: NATIONAL AG DAY & DAIRY’S REALITY
- The U.S. has lost 95% of dairy farms since 1970 (from 648,000 to 24,470)
- Farms with 1,000+ cows (just 8% of farms) produce 68% of America’s milk
- Large operations ($10/cwt cost advantage) are the only growing segment
- Despite losing 40% of farms since 2017, milk production increased 5%
The Inconvenient Truth About National Ag Day Celebrations
National Ag Day, celebrated today during National Agriculture Week, was designed to recognize the contributions of all agricultural sectors. But let’s be honest about what’s happening. While officials gather in climate-controlled conference rooms in Washington DC, America’s dairy farmers face an increasingly hostile regulatory environment that threatens their existence.
The Agriculture Council of America hosts today’s main events: a morning virtual livestream from the USDA, an in-person celebration at the USDA Whitten Patio from 8:30-10:30 AM featuring the standard parade of officials, and an evening reception at the Russell Senate Office building. But how many of these events will directly address the challenges squeezing dairy producers nationwide? How many dairy farmers can afford to leave their operations to attend these political theater performances?
The stark reality is that while government officials celebrate agriculture in general, specific policies continue undermining dairy’s position in the American food system. The most alarming evidence is that the U.S. has lost nearly 40% of its dairy farms since 2017, according to the 2022 Census of Agriculture data released by the USDA’s National Agricultural Statistics Service. This represents the largest decline between adjacent Census reports dating back to 1982.
“Even though we’ve lost close to 15,000 dairy farms in five years, the amount of milk that we’re producing in this country has gone up from a similar number of cows,” says Lucas Fuess, dairy analyst with RaboResearch, highlighting the intense consolidation pressure facing the industry.
USDA’s Double Standard: Promoting Plant-Based While Dairy Struggles
The 2025 US Dietary Advisory Committee recommendations that may influence upcoming guidelines propose significant changes that could further challenge the dairy industry. Meanwhile, the Federal Milk Marketing Orders (FMMO) system, established in 1937 to regulate milk pricing based on end use, classifies milk prices by categories: Class 1 (bottled milk), Class 2 (yogurt), Class 3 (cheese), and Class 4 (butter and powdered dry milk).
The USDA ensures the public’s well-being and dietary recommendations are grounded in established, periodically updated science. The agency has also provided labeling guidance for plant-based milk alternatives to help consumers make informed choices. However, these efforts don’t address dairy producers’ fundamental economic challenges.
The Concerning Consolidation of American Dairy
The numbers tell a concerning story about dairy’s future. While nearly 40% of dairy farms disappeared in just five years, milk production increased by 5%. How? Through rapid consolidation. Today, just 2,013 farms with 1,000 or more cows (representing only 8% of all dairy farms) produce approximately 68% of America’s milk, up from 57% in 2017, according to the 2022 Agricultural Census.
This isn’t happening organically. Economic pressures have forced smaller operations to expand or exit the industry. According to the 2022 Agricultural Census, farms with 2,500 or more cows were the only segment that grew during this period, increasing from 714 to 834 farms. Meanwhile, herds of 20-49 cows declined the most on a percentage basis, followed by herds of 50-99 cows.
The economics are stark: According to Fuess, “Farms milking more than 2,000 cows can operate about less per hundredweight than farms with 100-199 cows, with a total cost in 2022 of .06 cwt.” This cost advantage drives the relentless push toward consolidation.
The Regulatory Burden Crushing American Dairy Farms
Today’s National Ag Day celebrations conveniently ignore the crushing regulatory burden dairy producers face. Environmental regulations, labor rules, water usage restrictions, and animal welfare requirements create a complex compliance landscape that disproportionately impacts family-owned dairy operations without the legal teams employed by corporate agriculture.
“Even if they are huge, it doesn’t mean the family is necessarily removed,” Fuess explains. “Instead, it just means that they have a significant employee base or are providing jobs and making a significant impact on their local, and sometimes very rural, communities.”
The Real Story Behind Dairy Farm Numbers
The glossy presentations at today’s National Ag Day events won’t mention the uncomfortable truth: America’s dairy farm decline is accelerating dramatically. In 1970, the United States had more than 648,000 dairy farms. By 2022, just 24,470 remained—a staggering 95% decline. This isn’t just a statistical trend—it represents thousands of multi-generational family businesses disappearing from rural communities.
Agriculture adviser Milton Orr from northeast Tennessee observed, “I remember when we had over 1,000 dairy farms in this county. Now we have less than 40.” Greene County has only 14 dairy farms today, reflecting the nationwide consolidation trend transforming rural America.
What National Ag Day Should Address
If National Ag Day indeed aimed to support all agricultural sectors equally, today’s events would address several critical issues facing dairy producers:
- The need for more transparent labeling requirements preventing plant-based products from using dairy terminology
- Restoration of whole milk options in school nutrition programs
- Streamlined regulatory compliance for small and mid-sized dairy operations
- Export support programs specifically targeting dairy products
- Research funding for dairy-specific innovation
Instead, today’s celebrations will likely feature generic praise for agriculture without acknowledging the dairy sector’s specific challenges. The USDA and other agencies will tout their commitment to all agricultural sectors while continuing policies undermining dairy’s position in the American food system.
How Dairy Producers Can Fight Back: Actionable Strategies
For dairy producers watching today’s National Ag Day events with justified skepticism, several evidence-based approaches offer the potential for pushing back against the industry’s marginalization:
- Optimize component production—Depending on your milk market, Focus on enhancing butterfat content for Class IV utilization (butter, powder) or protein content for Class III utilization (cheese). This strategic approach can maximize returns even in challenging price environments.
- Target operational efficiency – With more extensive operations enjoying a $10 per hundredweight cost advantage, small and mid-sized producers must identify operational efficiencies without sacrificing quality or animal welfare.
- Build direct consumer relationships – Create direct marketing channels through farm tours, social media presence, and community events that bypass mainstream media narratives about dairy. Research shows consumers are more supportive when they understand production practices.
- Engage with policymakers – Rather than assuming officials understand dairy’s challenges, maintain consistent communication with representatives about specific regulatory burdens and their real-world impacts on your operation.
- Document your sustainability story – As environmental concerns shape food choices, measure and communicate your operation’s progress in reducing environmental impacts and enhancing sustainability practices.
- Participate in industry advocacy – Support organizations fighting for policy changes that level the playing field between dairy and plant-based alternatives. As the Census data shows, individual farms have limited power against structural economic forces.
- Explore value-added opportunities – Consider processing capabilities or specialty products that capture more of the consumer dollar rather than remaining solely in commodity production.
Next Steps: Taking Action Today
As National Ag Day unfolds, dairy professionals can take immediate actions to address industry challenges:
- Contact your representatives today – Use National Ag Day as an opportunity to call or email your congressional representatives about specific dairy policy concerns
- Share your real farm story. Post authentic content about your operation on social media using the #NationalAgDay and #DairyReality hashtags.
- Connect with industry advocates—Contact organizations like the American Dairy Coalition or your state dairy association to strengthen collective advocacy efforts.
- Evaluate your cost structure – Begin systematically analyzing operational costs to identify areas where efficiency improvements could reduce your cost per hundredweight.
Conclusion: Beyond the National Ag Day Platitudes
As today’s National Ag Day events proceed with their predictable celebrations of American agriculture, dairy producers deserve more than platitudes and photo opportunities. They deserve policies recognizing dairy’s essential role in nutrition and rural economies.
The disconnect between National Ag Day’s celebratory tone and the harsh realities facing dairy producers highlights why The Bullvine continues providing an unfiltered platform for industry perspectives. When government agencies and mainstream agricultural organizations fail to acknowledge dairy’s unique challenges, independent voices become essential for driving meaningful change.
While today’s celebrations may temporarily spotlight agriculture’s contributions, the dairy industry’s future depends on year-round advocacy, challenging policies that undermine its position in the American food system. National Ag Day should represent a starting point for these discussions rather than a one-day acknowledgment before returning to policies that continually marginalize dairy producers.
Proper support for agriculture means supporting all its sectors – including dairy – with policies that enable producers to thrive rather than merely survive. Until National Ag Day celebrations reflect this reality, they remain incomplete acknowledgments of American agriculture’s diversity and challenges.
Key Takeaways
- America has lost 95% of its dairy farms since 1970, with the most dramatic decline occurring in recent years, yet milk production continues to rise through dramatic consolidation.
- Economics drives the trend: operations with 2,000+ cows produce milk for approximately $10 less per hundredweight than farms with 100-199 cows.
- Rather than waiting for policy changes, dairy producers can take immediate action through component optimization, direct marketing, and documenting sustainability progress.
- National Ag Day events fail to address dairy’s unique challenges, focusing instead on general agricultural celebrations that ignore the industry’s consolidation crisis.
- Effective advocacy requires year-round engagement with policymakers, not just participation in ceremonial agriculture celebrations.
Executive Summary
As National Ag Day unfolds with ceremonial celebrations in Washington DC, America’s dairy farmers face a stark reality hidden behind the platitudes: nearly 40% of dairy operations have disappeared in just five years while milk production increased by 5%. This consolidation crisis isn’t happening by accident—large operations with over 2,000 cows enjoy a $10 per hundredweight cost advantage over mid-sized farms, creating economic pressure rapidly reshaping rural America. Behind the concerning statistics lies a system where just 8% of farms (those with 1,000+ cows) now produce 68% of America’s milk, up from 57% in 2017. Despite this existential threat to traditional dairy farming, National Ag Day events will likely feature generic agricultural praise without addressing dairy’s specific challenges, highlighting the disconnect between celebratory rhetoric and the industry’s harsh economic reality.
Read more:
- The Unsettling Truth: US Dairy Industry Consolidation And Its Impact 20 Years in Review
- Why Donald Trump Hates Canada’s Dairy Supply System
- Lab-Grown Milk Has Arrived: The Dairy Innovation Farmers Can’t Ignore
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