Editor’s Note: This is one article in a series that is included in the 2025 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
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Though a staggering 97% of U.S. dairy farms are family-owned and operated, the industry holds a critical dependency on immigrant labor, as more than two-thirds of the country’s 9.36 million dairy cows are milked by immigrant workers. It’s an urgent issue woven into the fabric of American agriculture.
Before and After the Pandemic
Labor challenges are not new to dairy farmers. The COVID-19 pandemic only exacerbated these struggles, and the discourse around mass deportation adds another layer of complexity to this issue, affecting not only individual farms but reverberating throughout the U.S. economy.
Ever-Present Labor Shortages
A recent survey underscores the dairy industry’s growing dependency on non-family labor, indicating it represents at least 50% of the workforce for many respondents.
In response, numerous farmers have turned to technology to reduce reliance on human labor. Although hiring and retaining workers remain challenging, there have been notable changes in labor-related aspects over the past year.
Boost Employee Incentives
Escalating labor expenses compound the difficulties faced by dairy farmers. One survey respondent observed, “Labor expenses continue rising, and our state isn’t allowing us to remain competitive with farmers in other states.”
To mitigate these issues, many farms have introduced incentives to bolster retention, including employee housing, flexible work schedules and wages surpassing the industry average. Over half of the survey participants provide housing for workforce stability and motivation.
The labor challenges afflicting the dairy sector are far from resolved. While innovative strategies and improved employee benefits offer temporary respite, deeper systemic changes are imperative. As the dairy industry contends with these formidable challenges, the call is for collective action and policy reforms that prioritize sustainability and security, ensuring a resilient future for U.S. agriculture.
