Farm Type Guide
Dairy Farming in New York
Milking cows, plus goats and sheep, in the state’s largest farm sector. What it takes to start, the permits and inspections you’ll face, where the milk goes, and the help available to veterans.
The Industry at a Glance
- New York has lost most of its dairy farms while the number of cows has held fairly steady. The Census of Agriculture counted 7,388 farms with milk cows in 2002, 5,683 in 2007, 5,427 in 2012, 4,648 in 2017, and just 2,783 in 2022. Over those 20 years the state's milk cow herd only went from 670,003 to 631,199, so the cows moved to fewer, larger farms.
- Large herds now hold most of the cows. In 2022, 318 farms with 500 or more cows had 425,018 of the state's 631,199 milk cows, while 1,219 farms had fewer than 50 cows.
- Dairy is the largest single segment of New York agriculture. New York is the fifth largest dairy state, and its farms produced 16.1 billion pounds of milk in 2023.
- New York is the largest producer of yogurt and cottage cheese, and its plants made more than one billion pounds of cheese in 2023. Cayuga, Wyoming, Genesee, and St. Lawrence counties led the state in milk marketed in May 2023.
New York lost more than 4,600 dairy farms in 20 years, but the state still needs milk and the people to produce it. If you’re a veteran interested in milking cows, goats, or sheep, talk to us about joining the effort to bring family dairy farming back to New York.
What It Takes to Start
- Dairy is one of the most expensive kinds of farming to start. Among a group of above-average New York dairies tracked by Cornell, farm capital averaged $14,471 per cow in 2023. Those farms averaged 1,296 cows, so a small start will look different, but cows, housing, milking equipment, and land add up quickly.
- Margins are thin. Those same farms spent an average of $23.39 to produce 100 pounds of milk in 2023 and received a net milk price of $20.85. Plan for lean years before you borrow.
- Cows have to be milked every day of the year, so labor is a big part of the plan. The Cornell farms averaged about 54 cows per worker. If you're starting alone, decide early who covers for you when you're sick or away.
- You'll need a milking system, a way to cool and store milk, clean water, and housing and feed for the herd. Your well water has to be tested, and your facility and equipment plans must be approved by Ag and Markets before any work is done.
- Many beginners start smaller, with a grazing dairy, a goat or sheep dairy, or a job on an established farm first. Goat and sheep dairies follow the same basic state rules, and Cornell has a guide to starting a sheep or goat dairy in New York. See our sheep and goats page for more.
Permits and Milk Inspection
- Dairy farms and milk plants are regulated by the NYS Department of Agriculture and Markets' Division of Milk Control and Dairy Services. Contact them early. Plans must be submitted before any work is done, equipment has to be installed by an approved dealer, and anyone installing equipment on a dairy farm must register with the department.
- Before you can ship milk, your farm must pass an initial inspection by a certified milk inspector. After that, farms are inspected at least twice a year, and more often if problems turn up.
- Your herd needs health testing too. Cornell's startup guide notes that a mastitis survey through Quality Milk Production Services is required at the start and every year after, and brucellosis testing is required when milk goes to a Grade A plant that pasteurizes it.
- To bottle milk or make yogurt or other dairy products on the farm, you'll need a Part 2 permit, and ice cream needs a separate wholesale frozen dessert license. Processors and milk dealers must also be licensed by the state.
- Raw milk can only be sold directly to consumers at the farm where it was produced. It requires a Part 2 permit, monthly inspections, regular testing, and a posted sign telling buyers that raw milk does not have the protection of pasteurization.
Where the Milk Goes
- Most dairy farms sell their milk through a cooperative or to a milk processor. Nationally, more than 80% of milk passes through dairy cooperatives, which are owned by their farmer members.
- Line up a buyer before you buy animals. Cooperatives and processors are not always taking new farms, and some New York farms have lost their milk contracts in years when the region produced more milk than plants needed.
- Most of New York's milk goes into products rather than the jug. Of the 16.1 billion pounds produced in 2023, fluid milk use at New York plants was a little over three billion pounds. The state had 104 dairy plants that year, 26 pasteurizing and 78 manufacturing.
- On-farm processing lets a small farm sell its own bottled milk, cheese, yogurt, or ice cream directly to customers. It takes more money, more licensing, and a lot of time spent selling, so learn the market before you build a creamery.
- The Northeast Dairy Business Innovation Center, a USDA program that serves New York and 10 other states, funds grants and technical help for dairy businesses, including specialty products like cheese.
Organizations
- Cornell PRO-DAIRY is Cornell’s dairy business program and has worked with New York dairy farms since 1988. It runs Dairy Feeder School each fall, online courses, webinars in English and Spanish, the Junior DAIRY LEADER program for young people, and the Cornell Cow Convos podcast.
- The Northeast Dairy Producers Association (NEDPA) has represented New York’s family dairy farms for more than 30 years. It works with lawmakers on environmental rules, labor, and animal health, and membership connects you with other dairy farmers across the state.
- The Northeast Agribusiness and Feed Alliance (NEAFA) brings together the feed, seed, fertilizer, finance, veterinary, and transportation businesses that farms depend on. It offers scholarships and internships for students heading into agriculture, plus a New York Dairy Toolbox of resources.
- National Milk Producers Federation is the national organization for dairy farmers and the cooperatives they own. It runs the National Dairy FARM Program for animal care and farm standards, and it posts market reports and guidance on animal health, biosecurity, and disaster recovery.
- Northeast Dairy Business Innovation Center is a USDA-funded regional center hosted by the Vermont Agency of Agriculture that serves dairy farms and processors in 11 Northeast states, including New York. It offers grants such as Dairy Farm Improvement and Modernization, technical services, and a monthly newsletter on dairy grants.
- Northeast Organic Dairy Producers Alliance is a Northeast producer group for organic dairy farmers. It holds annual field days and publishes a newsletter, organic pay and feed price data, a milk buyer contact list, and production resources on grazing, herd health, and transitioning to organic.
- American Dairy Goat Association is the national registry for dairy goats. It handles registration and DNA testing, runs milk production testing (DHIR) and linear appraisal programs, sanctions shows, and offers getting started and care guides for new goat dairies.
Training and Help
- The Cornell Dairy Farm Business Summary and the monthly Dairy Profit Monitor let you compare costs and earnings with other New York dairies. They're a good way to see real numbers before you invest.
- The Dairy Grazing Apprenticeship is a paid apprenticeship registered with the U.S. Department of Labor, where you work alongside an experienced grazier on their farm. New York is one of 16 states where it's offered.
- SUNY Cobleskill offers a two-year Dairy Production and Management degree, and SUNY Reconnect may cover the tuition. Cornell Small Farms' Farm Ops program offers training built for veterans.
- Your county Cornell Cooperative Extension office can connect you with regional dairy specialists and local farms.
Benefits for Veterans
- Dairy Margin Coverage pays when the gap between the national milk price and feed costs falls below the level you choose, from $4.00 to $9.50 per hundredweight. Veterans can have the $100 yearly administrative fee waived.
- DMC runs from 2026 through 2031. Locking in your coverage for all of those years earns a 25% premium discount, and new operations can enroll based on their first year of milk sales.
- FSA microloans up to $50,000 can help with cows, equipment, or fencing. EQIP and CSP give veterans priority and higher cost-share for conservation work like grazing systems.
- ELAP covers some livestock losses, with higher rates for veterans on some losses.
- Sell your cheese, milk, or other products under the Homegrown By Heroes veteran label.
How to Get Started
- Work on a dairy first, as an employee, an apprentice, or a student. A season of milking will tell you a lot about whether this life fits you.
- Talk with PRO-DAIRY or your county Cornell Cooperative Extension office, and write a business plan using real New York cost numbers.
- Decide how you'll sell your milk, through a cooperative, a processor, or your own on-farm processing, and call the Division of Milk Control and Dairy Services before you build or buy equipment.
- Get a USDA farm number, file form CCC-860 (veteran certification), and enroll in Dairy Margin Coverage once you're shipping milk.
- Reach out to us. We can connect you with veteran dairy farmers and the right people at the agencies.
Sources: USDA NASS Census of Agriculture; NYS Department of Agriculture and Markets; Cornell PRO-DAIRY and Cornell Dairy Farm Business Summary; USDA Farm Service Agency; Dairy Grazing Alliance; Northeast Dairy Business Innovation Center.
