HARRISBURG, Pa. — Pennsylvania dairy producers indicated increased interest in generational transition, facility updates and business structure adjustments compared with five years ago, according to the 2025 Pennsylvania Dairy Producer Survey released by the Center for Dairy Excellence during the Nov. 21 “Protecting Your Profits” webinar.

Conducted every five years, the survey drew 777 responses, including 603 active dairy farms, the highest participation to date, representing 12 to 15% of the state’s 4850 dairies. It was carried out February through April 2025 via mail and online as part of a Pennsylvania Department of Agriculture Ag Research grant designed to evaluate demographics, trends and needs within the dairy industry.

Penn State Extension educator Ginger Fenton of Mercer County helped lead the project. The survey, she said, “gives us a chance to evaluate demographics, trends and determine what the needs are of the dairy industry.”

Center director Jayne Sebright noted that the tone of this survey reflects a somewhat better environment than in 2020, which took place amid pandemic disruptions and multiple years of depressed milk prices. “In 2025 we’re coming off four years of average to above-average milk prices,” she said. “Some of the responses reflect that difference.”

Transitions, facilities, technology

One of the clearer trends is a modest uptick in producers preparing for generational transfer. Just over a quarter (27%) said they expect to transition their farm to the next generation within the next three to five years. While not a dramatic jump, the number edges higher than in 2020.

Fenton emphasized that nearly a quarter selected “unsure” for their three- to five-year plans. “That reflects legitimate uncertainty,” she said, reflecting decisions still in progress rather than avoidance.

A similar incremental rise appeared in planned facility updates. Nearly 23% of producers expect to modernize facilities within three to five years. This small but noticeable increase suggests some producers feel better positioned to revisit improvements deferred during the pandemic years.

Respondents also checked more boxes for planned investments, just over 1800 projects, which is another modest but steady increase. Cow comfort improvements were the only facility category that dipped slightly compared with 2020.

In contrast, more respondents expressed interest in updating milking facilities, improving manure-handling systems, enhancing feeding efficiency or modernizing housing and ventilation.

These areas align with modest herd growth, a slightly stronger emphasis on operational efficiency and a gradual shift toward more formal business structures. Together, they suggest farms are leaning toward improvements that support cow flow, labor efficiency and long-term functionality.

Technology-oriented investments also saw a modest uptick. Plans involving activity monitoring systems, improved parlor equipment or milking-efficiency tools showed small increases — not dramatic, but enough to indicate heightened interest in equipment that enhances daily management.

“The data indicate Pennsylvania dairy farmers are not embarking on major construction waves but leaning toward updates that support reliability, efficiency and future planning,” Fenton said. “It will be interesting five years from now to see how many of those modernization plans have been implemented.”

On-farm processing

Despite growing public interest in local foods and value-added dairy, on-farm processing remains limited among survey respondents. Only a small number currently process milk on-farm, most commonly bottling pasteurized fluid milk, making ice cream or selling raw milk under permit.

Among farms not currently processing, the overwhelming majority indicated low to no interest, with more than three-quarters rating their interest at the lowest end of the survey scale. Investment plans mirrored this pattern, with very few producers expecting to add processing capacity in the next three to five years.

Fenton, who works closely with value-added ventures, said she was “somewhat surprised” by the low level of interest, suggesting that while a handful of farms continue in this direction, processing remains a specialized strategy rather than a broad trend.

Herd size up gradually

The average herd size increased from 133 cows in 2020 to 152 cows in 2025, with heifers rising from 107 to 119. The decline in the smallest herd category — farms with 1 to 49 cows — from nearly one-quarter of respondents to 17% follows a longstanding pattern of gradual consolidation.

Fenton stressed that this growth is consistent with the modest trajectory seen in earlier survey cycles. “It’s a continuation, not a major shift,” she said.

Business structures, investments

The number of farms organized as Limited Liability Corporations (LLCs) grew from 12% in 2020 to 18.5% in 2025. The steady rise suggests more producers are addressing succession, liability and shared ownership with more formal structures.

Sebright noted that the slow shift toward LLCs “aligns with the trends we’ve been seeing over multiple survey cycles — incremental, not dramatic.”

Financial tracking also improved. Just over half of producers now calculate cost of production, compared with 29% in 2020, and nearly two-thirds calculate feed costs. The shift reflects closer monitoring of margins rather than major philosophical change.

Of the 777 responses, 174 came from former dairy farmers, most citing retirement, finances or health as reasons for exiting. Fenton said their continued participation underscores the strong personal identity many retain with dairy even after leaving the business.

The next segments in Farmshine will report on survey findings related to labor, operational practices, marketing and risk management.

Contact the Center at www.centerfordairyexcellence.com to learn more about the five-year producer survey.