US: Future ready with uncertainty

Wisconsin's dairy industry remains robust, with approximately 1.27 million cows producing around 31.9 billion pounds of milk in 2022, despite a slight decline in commercially licensed herds. Financially, the industry had a profitable year, with producers preparing for potential challenges such as increased interest rates, high input costs, and uncertainty in milk and feed prices. There is enthusiasm for the upcoming farm bill and prospects of milk pricing reform, which could mark the first significant change in farmers' primary income stream in two decades. The industry also faces challenges like dairy processing capacity, product diversification, and a severe labor shortage, with efforts being made to retain current employees and attract new ones through various strategies, including automated systems and housing developments specifically for agricultural workers. Additionally, the industry is exploring ways to enhance its sustainability, with funding for high-impact farming practices to improve soil health and water quality, as more than half of the dairy producers expressed concerns about the availability of dairy processing capacity and the need for improvements in the relationship between farmers and milk buyers.