The State of the New York Dairy Industry

In driving through New York, the dairy businesses of today appear different than those of even twenty years ago. Perhaps the most noticeable difference is that many of today's farms are larger.

Competing in a Global Market

Over the past 25 years, the forces of globalization have impacted every business sector, including dairy farms. Today, because of both national and foreign competition, New York dairy farms receive about the same price for their milk as they did in 1980. Even though the price they receive has not increased, every year farmers are forced to pay more for the inputs they use in producing milk. In order to make up the difference, the farm may need to generate more revenue through the milking of more cows.

Powering Rural Economies

Both large and small farms play an important role in sustaining rural communities across New York State. With over $1.6 billion in average sales, New York dairy farms alone are responsible for over $3.6 billion in return to the state's economy and the employment of over 28,000 people.

New York Versus the Rest

While New York farms have grown, compared to other states, our large dairy farms are not among the largest. According to U.S. Department of Agriculture (USDA) data, New York ranks thirty-third among the states for average herd size. Comparing the number of large farms - over 1,000 cows - to other states like New Mexico and Oregon, New York State pales in comparison.

In addition, New York's farms have taken the lead in environmental protection. All of New York's large farms have signed up for CAFO permits and millions of dollars have been invested in implementing environmentally-focused practices on our farms.

Keeping It In the Family

Farmers are constantly examining ways to make sure their business continues to be a family business. When a child returns to the farm, the farm needs to generate more money to support the child and his or her family. The farm also needs to be able to offer normal quality of life standards, such as time off, to all those involved. Since farming is a 365 day a year job, one way to accomplish both of these goals is to increase the size of the business.