Report: Excess government regulation is hurting California's dairy industry, especially small farms

The California Cattle Council has released a new report, “Economic Analysis of California Dairy Consolidation, Attrition, and Policy Leakage,” examining the challenges and trends in California’s dairy sector. Conducted by ERA Economics, the report highlights how market conditions, industry consolidation, and methane emissions regulations are impacting the state's dairies.

While California is on track to meet its ambitious 40% methane reduction target set by Senate Bill 1383 (2016), the report warns that replacing incentive-based programs with direct regulation could cost the state’s dairy farms $675 million annually and lead to increased consolidation, hitting small farms the hardest.

California remains the top dairy-producing state, with nearly 1.69 million cows, but as the dairy sector contracts, the report stresses the importance of continued collaboration between the state and the industry to balance environmental goals with economic sustainability.

the report warns that replacing incentive-based programs with direct regulation could cost the state’s dairy farms $675 million annuallyPhoto byNeil BatesonUnsplash