Vermont dairy update: fewer farms but stable production; Northeast Dairy Business Innovation Center expands processor and farm grants

Laura Ginsberg, dairy strategy and innovation manager at the Vermont Agency of Agriculture, Food and Markets, told the Agriculture Committee on Thursday, Jan. 23 that Vermont has fewer dairy farms than a decade ago but that milk production has been relatively stable and the number of processors is increasing.

"Vermont is the most reliant on a single commodity more so than any other state, and that is dairy," Ginsberg said, describing the economic centrality of dairy to Vermont agriculture and the statewide economy.

Ginsberg provided county and species breakdowns for December 2024 and said some apparent month‑to‑month losses were data cleanup rather than actual farm closures. She said Addison and Franklin counties remain the largest dairy-producing counties and that Vermont processes a substantial share of its milk but still ships much product out of state because local demand is smaller than production.

Key statistics and trends

Ginsberg said the state has seen a long-term decline in the number of dairy farms while average herd size per remaining farm has increased. She noted organic farms are steady in number (around 200) and account for roughly 5.5% of Vermont cow-milk volume while comprising a higher share of total farms than most states.

She described processors as a growth area: the number of dairy processors in Vermont has increased over the past decade, including small on-farm processors. Ginsberg said processor growth helps keep more value-added revenue in state and cited examples of recent investments in automation and equipment.

Northeast Dairy Business Innovation Center investments

Ginsberg also described the Northeast Dairy Business Innovation Center (a USDA-funded regional center hosted at the Vermont Agency of Agriculture) and its recent investments in farms and processors. She said the center has received about $53 million in USDA funding to date and was awarded $19 million in 2021 for a targeted program after a regional processing disruption.

"So far we've awarded 367 projects with $33,800,000 worth of funds," Ginsberg said when summarizing the center's grant activity across the region; she said the program has reviewed more than 1,000 applications and that the average grant is roughly $92,000.

Ginsberg highlighted several Vermont grant recipients: Cabot received support to automate packaging lines for cracker-cut cheese and double capacity; Maplebrook Farm in Bennington received funds to increase processing efficiency and reduce energy use; and Larson Farm in Wells received a grant to modernize yogurt filling and increase output. She said marketing and rebranding grants have produced measurable sales gains for participating processors.

Workforce and technical assistance

Ginsberg said the center also funds technical-assistance cohorts that lead to on-farm changes and subsequent grant readiness. She described a workforce investment program to expand training and reduce barriers for Spanish-speaking employees and other groups, and she noted pilot projects on technology such as virtual fencing and manure handling spreaders.

Questions from committee members focused on acreage changes, the decline in small farms and whether production shifts reflect pasture loss or conversions to other crops. Ginsberg deferred some specific acreage questions to Farm to Plate (which produced the underlying slide), saying that organization could better explain the land-use figures. She emphasized that Vermont produces far more milk than it consumes and that expanding processor capacity and market access remains a priority.

Speakers: Laura Ginsberg, dairy strategy and innovation manager, Vermont Agency of Agriculture, Food and Markets; Nicole Dubuque, chief operating officer, Vermont Agency of Agriculture, Food and Markets; meeting committee members (names not specified) who asked questions.

Ending: Ginsberg invited follow-up questions and offered to return with further details. Committee members thanked her for the presentation and said the information would inform committee planning and priorities around workforce, processing capacity and farm supports.