Challenges and Solutions for Small Dairy Farms in the U.S.: A Review

Small-sized dairy farms (SSDFs) are integral to the agricultural landscape, providing economic, social, and environmental benefits to rural communities. However, they face growing challenges, including market volatility, rising production costs, labor shortages, and complex regulatory demands. This...

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Bibliographic Details
Published in:Agriculture (Basel) 2024-12, Vol.14 (12), p.2369
Main Authors: Jafri, Syed H., Adnan, K. M. Mehedi, Baimbill Johnson, Stefan, Talukder, Anzalin Ali, Yu, Mark, Osei, Edward
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural land
Agricultural production
Agriculture
Automation
Case studies
challenges
Climate-smart agriculture
Competition
Competitiveness
Cost effectiveness
Costs (Law)
Dairy farming
Dairy farms
Dairy industry
economic issues
Economics
Economies of scale
Emission standards
Environmental regulations
Environmental sustainability
Farms
interventions
Inventory
Labor shortages
Manufacturing costs
Milk production
Niche markets
policy adjustments
Population decline
Production costs
Productivity
Reviews
Rural areas
Rural communities
small-scale dairy operations
Sustainability
Technology assessment
Trends
U.S. dairy sector
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Summary:Small-sized dairy farms (SSDFs) are integral to the agricultural landscape, providing economic, social, and environmental benefits to rural communities. However, they face growing challenges, including market volatility, rising production costs, labor shortages, and complex regulatory demands. This review synthesizes the current literature on the economic and environmental obstacles confronting SSDFs and explores strategies to enhance their sustainability and competitiveness. Key barriers include limited access to capital, high feed and energy expenses, and difficulties in adopting new technologies due to financial constraints. SSDFs also struggle to compete with larger farms benefiting from economies of scale and increased market power. Potential solutions include strengthening cooperative models, implementing diversification strategies, and leveraging policy support for targeted financial assistance and technology adoption. Case studies of successful SSDFs show that transitioning to organic production, adopting climate-smart techniques, and focusing on niche markets can significantly improve profitability and resilience. This review emphasizes the need for tailored policy frameworks, innovative financial models, and collaboration among stakeholders to support SSDFs. Future research should prioritize understanding SSDF-specific financial dynamics, assessing the cost-effectiveness of technology adoption, and developing strategies to enhance market access and long-term sustainability in the U.S. dairy sector.
ISSN:2077-0472
2077-0472
DOI:10.3390/agriculture14122369