Central Minnesota Dairy Farm Permits Dwindle as Top Counties See Major Loss

(KNSI) — Two central Minnesota counties are among the highest in the state regarding the dwindling number of dairy farms.

The Minnesota Department of Agriculture says there are 146 fewer dairy farmer permits than last year. Morrison County has 124 permits in effect, down 21 from January. Stearns County has 356 permits, a loss of 27.

Minnesota is eighth in the nation when it comes to dairy production.

According to the American Farm Bureau Federation, farmers are paying more for feed, labor, fuel and fertilizer, while the bottom has fallen out for milk prices. They say that is due to a slower economy and sky high food costs, putting the brakes on the demand for milk and other dairy products.

Growing global milk production is also flooding the market, according to Dutch multi-national banking corporation Rabobank.

It may get better, however, as the U.S. House of Representatives voted to return whole milk to school lunch menus nationwide.

Though the number of dairy farm permits may be down, it doesn’t mean the farms are going away altogether. Beef cattle prices remain strong, so some farmers may be transitioning away from dairy, sending their lower producing heads to auction to bring in more money.

The USDA says the milking herd has remained strong, with almost nine million head in June.

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