This week, USDA’s National Agricultural Statistics Service released its monthly Milk Production report, showing yet another annual decline in the number of licensed dairy operations in the United States. After many years of depressed prices, some dairy farmers faced an extremely tough year as the industry struggled with a global pandemic, negative Producer Price Differentials and Federal Milk Marketing Order de-pooling while others enjoyed near record milk prices due to volatility in cheese prices (More Negative PPDs and De-Pooling Reignite Federal Milk Marketing Order Debate). This year-over-year decline in the number of dairy operations continues a long trend of farmers deciding to exit the dairy business. Since 2003, the U.S. has lost more than half of its licensed dairy operations, now just shy of 32,000 dairy operations.
