Wisconsin agriculture is undergoing rapid consolidation, raising concerns about the loss of family farms. Between 2017 and 2022, the state saw roughly 1 in 10 farms disappear, and nearly 1 in 3 dairy farms shut down in just that five-year span. Total farmland in Wisconsin dropped by about 4% (over 533,000 acres) during that period, even as the average farm size grew – a clear sign that fewer, larger operations are replacing smaller ones. Indeed, while Wisconsin has lost over 9,000 dairy herds since 2017, the number of milk cows fell by under 2%, implying that remaining dairies have scaled up dramatically to maintain milk production. This consolidation is driven by economic pressures: slim profit margins and economies of scale favor big farms, and mid-sized farms are “hollowing out”. However, the trend carries risks for rural communities. Fewer farm families can mean fewer customers for local businesses, declining school enrollments, and less civic participation. Farm advocates warn that without intervention, the “America’s Dairyland” identity could erode as independent farms give way to corporate operations. Policymakers are exploring ways to help small and mid-scale farms stay viable – from strengthening local markets and cooperatives to providing transition assistance – to counter the adverse effects of consolidation on Wisconsin’s farm economy and heritage.

Wisconsin is a leader in organic farming (ranked second nationally in number of organic farms), but growth in this sector is constrained by several barriers. One major challenge is limited infrastructure: organic producers often struggle to find processing facilities for their products. For example, there are very few certified organic meat processors in the state, creating a “major bottleneck” for organic beef and pork farmers who can’t get animals processed and to market. Additionally, organic feed and input costs are high – recent spikes in grain prices have made organic livestock feed especially expensive. Access to land is another barrier. The price of farmland in Wisconsin has been rising (the average acre of farm real estate was over $6,300 in 2024) and young or beginning farmers often can’t afford to buy or rent land for organic production. Many new organic farmers do not come from farm families, so they lack inherited land or capital, putting them at a disadvantage in a hot land market. These factors have contributed to declines in certain organic sectors – notably, the number of organic dairy farms in Wisconsin fell by 22% from 2019 to 2022, mirroring consolidation trends in conventional dairy. Overcoming these barriers might involve investing in more organic processing infrastructure (such as small regional slaughterhouses and creameries), offering land access programs or grants for organic transition, and providing technical support to help organic farms improve efficiency. By addressing the cost and infrastructure gaps, Wisconsin can continue to grow its organic industry beyond its current plateau.

Wisconsin’s farm population is aging, raising concerns about succession and the future of farming. The average age of Wisconsin farmers is now about 56 years, and a growing share are nearing retirement. This demographic shift is stark: nationally, there are far more farmers over 65 than under 35, and Wisconsin reflects that pattern. As older farmers seek to retire, the question is who will replace them. The high costs of land (the average acre of farm real estate was over $6,300 in 2024 representing a 41% increase from 2020) and equipment make it difficult for young or beginning farmers to step in. Many farm children are choosing other careers, and young people without a family farm background face steep barriers to entry. This has contributed to an agricultural “brain drain” from rural areas – talented youth leaving for urban jobs instead of staying to modernize local farms. The aging farmer trend also means valuable expertise could be lost; decades of practical knowledge risk disappearing if there’s no next generation to learn it. Wisconsin is responding with programs like farm succession planning services, beginning farmer training, and incentives like tax credits for selling farmland to new farmers. Mentorship initiatives pair veteran farmers with young proteges to transfer skills. These efforts aim to lower the hurdle for younger farmers and ensure that as today’s farmers retire, Wisconsin’s agricultural legacy and productivity carry on. The next generation, armed with both traditional know-how and new innovations, is crucial for keeping Wisconsin’s farms vibrant.

The cost of operating a farm in Wisconsin has climbed significantly, squeezing farm incomes and increasing financial risk. Farmers have faced a perfect storm of expense increases: fuel and diesel prices jumped (especially in 2022), fertilizer prices hit record highs, feed and seed costs rose, and interest rates on farm loans went up. In fact, 2022 saw a drastic increase in fertilizer prices – so much so that some major fertilizer companies reported profits over 10 times higher than the year before. Many Wisconsin farmers responded by cutting back on fertilizer or other inputs, but that can hurt yields. According to USDA data, Wisconsin farm production expenditures totaled $14.6 billion in 2023, up from the prior year and nearly $250,000 per farm on average. Feed remains the largest expense (about $2.95 billion in 2023), and costs for things like farm services, labor, and machinery have stayed high. While commodity prices (corn, soy, milk, etc.) have also been strong recently, they haven’t always kept pace with input cost inflation – one farmer noted it’s “difficult to pencil out” the next year when you can’t even lock in spring fertilizer prices. High operating costs are especially challenging for smaller farms with less cushion and pricing power. It can lead to more debt, deferred maintenance, or even decisions to exit farming. The cost squeeze underscores the need for efficiency and innovation (such as precision agriculture to use inputs more sparingly) and for policies that can mitigate extreme input price volatility. Without relief, the high cost of farming will continue to threaten profitability and the number of farms remaining in Wisconsin.