The average American dairy turned a profit only three times in the past 20 years. In one of those instances, dairy farmers made just one penny of profit after expenses per 100 pounds of milk produced, according to the U.S. Department of Agriculture. 

In the past two decades, the U.S. has lost more than half of its dairy farms – 61% – even while milk production has grown. The industry has experienced a dramatic shift in production practices as farms got larger, with more concentrated in fewer counties throughout the U.S.

The rate of decline accelerated in 2018 and 2019, according to a U.S. Department of Agriculture report on U.S. dairy farming consolidation. 

In the past 20 years, the average number of cows on dairy farms has increased 160%. Changes in cow genetics and farm practices have increased the amount of milk produced per cow by more than100% since 1980, according to a report and analysis of USDA data from the nonprofit organization Food and Water Watch.

According to a U.S. Department of Agriculture consolidation report, 80% of large farms with more than 500 heads of cattle made a profit in 2016, but 84% of farms with 10 to 49 cows and 76% of those with 50 to 99 cows did not.