Mid-west Farm Report - Madison

Wisconsin dairy operators are trying to find their way to profitability through 2026, but it's complicated.  Stephanie Hoff asks some tough questions of Leonard Polzin, Dairy Markets and Policy Outreach Specialist, UW-Madison Division of Extension. While  specific data is often private, the IDFA estimates roughly $11 billion  in capital expenditures across 50 projects in 19 states. Major processing growth is concentrated in a "T" shape: running through the middle of the country (Texas, Kansas, Dakotas) and across the Northern U.S. (Washington, Idaho, Wisconsin, and New York). The industry is grappling with "hazy" data regarding how much of this investment is truly new capacity versus replacement for closing plants, as well as the actual ramp-up time for these facilities. U.S. cheese exports saw a significant increase in 2025, but they are moving at steep discounts. This means exports are currently providing a price floor  rather than a price premium for farmers. Leonard