By Rylee Stoltz

    The dairy industry in Nebraska has struggled for years because of a lack of processing opportunities for producers. The Alliance for the Future of Agriculture in Nebraska (AFAN), along with others on the Grow Nebraska Dairy team, have been working relentlessly to recruit processing to the state of Nebraska to help current producers but also to attract additional dairy producers from out of state.
    This past year we have made great progress in increasing our dairy processing infrastructure. Milk Specialties Global recently invested $45 million in their Norfolk plant which will increase capacity to 2.5 million pounds of raw milk per day. Currently, Nebraska dairy farmers produce 4 million pounds of milk per day meaning that the expansion of Milk Specialties in Norfolk will demand over half of our existing production. On top of this, Nebraska is high on the list with several other milk processing companies.
    It should come as no surprise that some states (think the west coast) have codified legislative policies that are crippling their ag producers, forcing them to look for new opportunities. Our group has received more calls than ever before from dairy producers who are considering Nebraska as their next place of business. With our abundant water resources, grain availability, ag-friendly policies, and hardworking people, Nebraska should be top of mind for anyone looking to do business in the ag sector. Our group is excited that Nebraska’s recent growth in dairy processing is not only attracting more farmers but is providing an opportunity for existing Nebraska dairy producers to grow.
    But why is growth in the dairy industry important and why is it so important to Nebraska? Growing the dairy industry has a direct impact on rural economic vibrancy throughout the state. The University of Nebraska at Lincoln found that one dairy cow would have a direct impact of $12,000 on the local economy. Meaning that even a small-sized dairy would have a significant financial impact to main street and create a need for additional goods and services.
    The benefits don’t stop at main street, grain farmers have an opportunity to reap benefits from a dairy as well. Partnering with a local dairy could add an additional $500 per acre to a grain farmer’s bottom line! Both parties reap the most benefits when a grain farmer can sell their crops directly to a dairy producer and the grain farmer is able to use the manure on their fields.
    One grain farmer near Shelby, Nebraska, gave this testament: “Working with a neighboring dairy has added tremendous value to my farm. The dairy uses the silage I produce for feed, which leads to an earlier harvest, an extremely local market, access to manure that reduces my input costs and improves the overall health of my soil. Through this partnership, my operation has become more efficient and more productive.”
    Moving forward, AFAN is hopeful that the dairy industry will continue to grow and thrive, providing opportunities for rural communities and local farmers. If you are interested in championing a dairy in your community, or want to learn more, please reach out. Let's work together to make Nebraska the next dairy frontier!