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E488 From 1,810 Dairy Farms to 18: How North Dakota’s Processing Collapse Cornered the Holle Family – and Could Corner You
Description
North Dakota lost 99% of its dairy farms in under four decades. If you think that can't happen where you milk, this episode is for you.
In 1987, North Dakota had 1,810 dairy farms. As of early 2026, just 18 Grade A operations remain — the steepest collapse of any U.S. state in modern history. This episode tells the story through the Holle family at Northern Lights Dairy, a 1,000-cow Holstein operation near Mandan that now hauls milk five hours one way to a plant in Minnesota, several times a day. When we asked what comes next, the family's answer was brutally honest: "We don't know what we are going to do."
That single sentence is the starting point for a deep dive into the structural forces killing family-scale dairy — not just in North Dakota, but across the Upper Midwest and beyond.
KEY TOPICS EXPLORED:
- How two plant closures — Prairie Farms Bismarck (Sept 2023) and DFA Pollock (Aug 2024) — broke the state's milk marketing chain overnight
- The real freight math: Upper Midwest hauling charges jumped 30% in one year, and North Dakota now carries the highest average in Federal Order 30
- Why USDA's new make-allowance increases (effective June 2025) hit remote producers dollar-for-dollar while processors in dense regions claw some back
- The $23.56/cwt cost gap between herds under 50 cows and herds over 2,000 — and what that means for mid-size operations caught in the middle
- "Inside the fence vs. outside the fence" — a framework for determining whether your problem is operational or structural
- Six hard diagnostics you can run on your own operation this week, including freight exposure to your second-nearest plant, basis tracking, and debt service stress tests
- Four strategic paths forward: scaling up, building a defensible niche, investing in processing, or planning a deliberate and profitable exit
- Why January 2026 Class III hit $14.59/cwt — the lowest since April 2021 — and what the 2026 price outlook means for producers already on thin margins
This isn't just a North Dakota story. Wisconsin has lost nearly half its dairy farms in a decade and is now down to roughly 5,100 active herds. The same physics — thinning processing density, stretching routes, weakening basis — are running in Minnesota, Pennsylvania, Vermont, and beyond. The Holle family's crisis is a live diagnostic for every family dairy in America: if a 1,000-cow, fifth-generation operation doing everything right inside the fence can't see a clear path forward, what does that tell you about your own struc
The full feature article with every source, data table, and the complete six-point diagnostic framework is live at https://www.thebullvine.com/dairy-markets/from-1810-dairy-farms-to-18-how-north-dakotas-processing-collapse-cornered-the-holle-family-and-could-corner-you/
If you're wrestling with any of the decisions discussed in this episode — freight, succession, processing, exit planning — the Farm Aid hotline (1-800-FARM-AID) connects producers with local support services, and most state extension programs offer confidential financial counseling.