Exploring the Future of Dairy Farming: Expansion Strategies for Small Farms
- amy55735
- May 14
- 1 min read

The landscape of dairy farming in the U.S. has undergone significant changes over the past two decades, reflected in both the declining number of licensed farms and the increasing volume of milk production. As this industry evolves, small dairy farms face critical questions about sustainability, profitability and the most effective methods for expansion. Lynn Olthof, a dairy management Ph.D. student at Michigan State University talked on a recent episode of Professional Dairy Producers’ (PDP) “Dairy Signal” about various modeling paths forward for expanding U.S. dairy farms.
The Decline and Growth of Dairy Farms
In the past 20 years, the U.S. has seen a reduction of approximately 40,000 dairies. This decline is most severe among smaller herds milking fewer than 200 cows, contrasting with an increase in herds exceeding 1,000 cows. The small farms face a choice: expand their operations to achieve more substantial profits or exit the business entirely. To assist these smaller dairies in navigating the changing industry, a study was conducted examining four potential expansion strategies for 250-cow dairy farms.
May 14, 2025
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