THE U.S. DAIRY FARM DECLINE: WHAT IT'S LIKE IN COLORADO
Updated: Feb 6
As dairy farm numbers around the country dwindle year after year, Colorado is feeling it, too - though not as drastically as the rest of the U.S. Between 2013 and 2023, Colorado lost around 20 dairy farms, while the numbers in other states by the thousands.
Like many other states, Colorado saw an increase in the volume of milk produced between 2013 and 2023. But going into 2025, the state is in a precarious position following HPAI, low milk prices, and water supply issues.
And that's just the tip of the iceberg. Just based on the difference between feed costs and milk prices between 2005 and 2020, many dairy farmers have been operating at a loss. In an article discussing vanishing dairy farms, Elizabeth Eckelkamp, Associate Professor of Animal Science and Dairy Extension Specialist at the University of Tennessee says the problem lies in changing consumer habits that haven't been reflected in the way that farmers are paid for their milk.
"For the past several decades, farmers have generally received the minimum price. Improvements in milk quality, milk production, transportation, refrigeration, and processing all led to greater quantities of milk, greater shelf life, and greater access to products across the US. Growing supply reduced competition among processing plants and reduced overall prices.
"Along with these improvements in production came increased costs of production, such as cattle feed, farm labor, veterinary care, fuel, and equipment costs," Eckelkamp's article states.
While many of the available solutions can't fix the underlying problem, there are a few things farmers in Colorado can do - and are already doing - to stay in the green.
Take advantage of insurance and hedging programs. Some programs can help offset costs and provide compensation in the event of unforeseen circumstances. While these programs can't fix the larger issues, they do function as a safety net that can help in the short term.
Diversify. While any type of diversifying requires time and investment, many options can add worthwhile revenue streams. Some options include beef on dairy crossing and investment in methane digesters or other manure recycling technology. There may also be a local market for composted manure.
Invest in technology to optimize production. The best safeguard against factors beyond the farmer's control is to increase efficiency. Improving cow health, reproductive performance and feed efficiency can help close the gap between the cost of feed and payment for milk produced.
Your local dairy service dealership can help identify some ways to make these improvements. Our dairy division, HPR, employs advisers and technicians with decades of experience working closely with farmers - not only here in Weld, Morgan, Logan and Larimer counties - but also across the country.
We also offer precision technology that can reduce labor costs and increase feed efficiency, including robotic and conventional milking setups, activity and herd health monitoring, and more. Learn more about our dairy solutions here.
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