Minnesota dairy farms generate $1.6M economic impact and support local economies

The Morrison County Board of Adjustment convened on April 1, 2025, to discuss various topics related to local agricultural practices, particularly focusing on the dairy industry’s economic impact in the region. The meeting highlighted the significant role dairy production plays in the local economy, supported by data from several studies.

The Minnesota Department of Agriculture presented findings indicating that dairy production has a multiplier effect of 1.7 for every dollar generated at the farm level. This means that dairy activities stimulate economic growth across multiple sectors, including agriculture, manufacturing, transportation, and services. A publication from Iowa State Extension noted that each dairy cow contributes approximately $25,495 annually to the economy, further emphasizing the importance of dairy farming.

The board reviewed a 2020 report from the University of Minnesota Extension, which stated that an average dairy farm in Minnesota generates about $1.6 million for the economy and contributes $48,000 in local taxes. The report also indicated that the net return per cow was $219, underscoring the financial viability of dairy farming in the area.

Discussion also touched on the average household income in the region, reported by the U.S. Census Bureau to be $77,706 in 2021. This figure suggests that a dairy farm would need approximately 354 cows to support a household of two and a half people. The meeting noted that the average dairy farm employs around 11.5 full-time and 2 part-time workers, reflecting the labor demands of the industry.

Morrison County's historical significance in dairy production was acknowledged, with the board noting the established supply chain that supports local dairy producers. The Minnesota Department of Agriculture's livestock team emphasized the importance of adhering to environmental and zoning regulations to facilitate livestock proposals and expansions.

The meeting concluded with a discussion on the trends in farm sizes, noting that while larger farms are becoming more common, there is also a rise in small and micro farms due to niche markets and the locally grown movement. The board recognized the need for regulations that accommodate these evolving business trends to ensure the sustainability of agriculture in rural Minnesota.

Overall, the meeting underscored the critical role of dairy farming in Morrison County's economy and the importance of supporting local agricultural practices to foster continued growth and community development.