Dairy Farms Innovate to Preserve the Farm
BY THEODORE PETERS
“I REMEMBER WHEN THERE WERE DOZENS OF DAIRIES in Northampton County,” says Layne Klein of Klein Farms in Forks Township. “Now they’ve all gone out of business.”
Indeed, about 50 years ago, a trip to just about anywhere in rural Pennsylvania would have showcased the many small, family-operated dairy farms that were rooted in almost every community. The USDA estimates that in 1970, the United States boasted approximately 650,000 dairies, concentrated in Pennsylvania and Midwestern states, including Wisconsin, Minnesota, and Iowa. Since then, the number of dairy farms has precipitously declined and, along with them, the rural communities and livelihoods they supported.
BIG DAIRY IS BIG BUSINESS
There are consequences to cheap milk. Agriculture in the U.S. has broadly skewed toward fewer, larger farms over the last century, and the dairy industry has been at the forefront of this trend. New technologies favored larger producers and helped to promote consolidation; the demise of small dairy farms has resulted from deliberate policy decisions.
In 1971, then–Secretary of Agriculture Earl Butz encouraged farmers to “get big or get out,” while ushering in an era of deregulation that exposed small family farms to the vagaries of the global commodity market. Market prices for milk collapsed during Butz’s tenure, while the Federal Reserve increased interest rates to combat inflation, creating a spiral that forced many farmers to take on higher debt loads and eventually sell their farms, leading to the infamous “Farm Crisis” of the 1980s. These trends have only continued; the overall number of dairy farms in the U.S. was recorded as fewer than 25,000 in 2022, according to the USDA. Throughout this time, however, milk production has soared.
This model and the efficiencies of industrial dairy farming operations have been a boon to many consumers, especially as the cost of living keeps escalating. Large grocery retailers use milk as a “loss leader” to drive traffic into their store. They intentionally lose money on liquid dairy products, which further drives down prices. Among economists, a gallon of milk is often compared apples-to-apples with a gallon of gasoline, anonymized commodities whose price fluctuations directly impact an average American’s quality of life. While this model cheaply delivers dairy staples, it comes at a cost that consumers are all too familiar with. And that cost includes rapid development and the loss of farmland and family farms.
Amidst these trends, a few local dairies have persevered. Their secret? Direct sales, value-added products, and loyal customers who understand that the tangible benefits of supporting local farmers go far beyond supplying milk to their communities. Small dairy farms need to be more intentional.
KLEIN FARMS DAIRY AND CREAMERY
Easton
If you drive out to Klein Farms just north of Easton, you’ll find a bucolic dairy in a landscape otherwise defined by increasing development. The Klein family has been on their land for more than 90 years, after Layne’s grandfather arrived in Pennsylvania from South Dakota. His father purchased cows in the 1940s, establishing the daily repetition of milking that has remained nearly unbroken to the present day, except for an accident in 2002, when a cow fell on Layne, breaking his leg. With Layne on the mend and a new herd of heifers purchased, the family was back in business in 2003. They quickly ramped up production to the point that they lacked an outlet for all of their milk. “At first, we didn’t know what to do with it all,” says Layne. “We needed to get creative.”
Thanks to Layne’s wife, Beth, the family began experimenting with cheese production and in 2004, launched a line of soft pasteurized cheeses, complementing the raw milk and beef they already sold. That same year, the farm officially opened its farm store with business partner and friend Daniel Duffin. Customers quickly flocked to the store, clamoring for the high-quality products the family offers. One of those requests included something they weren’t offering.
“We kept getting requests for ice cream,” says Layne, “so we gave it a try.” In partnership with Daniel Duffin, they launched the Happy Holstein in 2016, a business within their farm store. Today, they offer 15 flavors of hard ice cream, which has made the farm famous in the area. “We don’t take any shortcuts; it’s made completely from scratch.”
Klein Farms’ strategy was born out of financial necessity. With liquid milk prices continuing to fall, their shift to value-added products enabled the farm’s survival. “Milk is priced by the hundredweight,” says Layne. “Conventional milk is $20 a hundredweight, basically two dollars a gallon wholesale,” he explains. “Raw milk is $55, mozzarella $75, cheese spread $85, hard cheese $140, yogurt $220. So, you can see why value-added products are absolutely critical,” he says.
Still, the broader market for dairy remains extremely challenging. “It’s no better than it was 10 years ago,” Layne says. “It’s get big or get out. Farmers can’t expand because of high land prices.” Like so many others, Layne knows that most farmers don’t have retirement plans. “Their retirement is their land value,” he says. “So they have to sell their land. Kids often don’t want to take it over.”
The Kleins, though, are a notable exception because they developed a strong and viable business that their children want to participate in. Their son, Jake, works on the farm with his wife, while also running a gravel and hay business. His youngest daughter, Rachel, works full-time on the farm and two other daughters, who live nearby, are also involved. It’s truly a family affair: The fourth and fifth generations of Kleins farm together. (Layne and Beth have 12 grandchildren).
Klein encourages people to “Eat close to the source.” Buying directly from a local farmer, he explains, is “better for the community, traffic, land use, and the environment.”
“Eat close to the source.” Buying directly from a local farmer is “better for the community, traffic, land use, and the environment.”
—Layne Klein
CRYSTAL SPRING FARM
Schnecksville
Although this farm in the rolling hills of Schnecksville just celebrated the 50th anniversary of its retail store, the farm itself dates back even further. Owned and operated by siblings Audrey Marstellar, Gary Sell, and the extended Sell family, Crystal Spring dates to 1903, when their great-grandparents bought the land. Originally a potato farm, Crystal Spring transformed into a dairy under the direction of their father, who had studied animal husbandry at Penn State in the 1950s.
“There were always cows,” Audrey remembers. “But my father wanted to develop the farm into a dairy and ice cream business.” From the start of the dairy operation, the goal was complete self-sufficiency. “We did and still raise calves from birth,” says Audrey. “Everything is done on the farm, and we learned a lot about work ethic by milking cows before and after school.”
In the 1970s, with four children in the family, Audrey’s parents realized the need to diversify their operations to ensure their children could stay involved. They built a large free-stall barn, which expanded their milking capacity, and launched a bottling plant and a retail store. Since then, they’ve stuck to their values while growing the line of products they sell to customers.
“It’s completely natural,” Audrey says. “If you want to know where your food comes from, come to our farm. We can tell you what the animal ate, from the ground up.” Today, Crystal Spring’s products include whole milk, plus 2%, 1%, nonfat, and 15 flavored milks, including chocolate and strawberry. These staples complement their ice cream, made from the farm’s fresh milk and cream, as well as the wide array of beef cuts they sell, including steaks, cubed beef, hamburger, and much more.
“We shed our skin to keep doing it, because we truly love our farm,” Audrey says. “We are so proud to bring fresh dairy and beef to our customers. We really enjoy what we are doing.”
—Audrey Marstellar, Crystal Spring Farm
Audrey cites the quality of their milk as one of the reasons for their success. Crystal Spring’s milk is drawn gently, homogenized, and pasteurized—but not ultra-pasteurized like much of modern dairy—and does not leave the property until a customer buys it.
“More than any other food, milk loses its flavor with age,” Audrey says. “I think that’s why we have so many customers who come to us and share that our milk and ice cream is the best they’ve ever had.” You can’t fake freshness.
Despite their loyal following and consistent business, Audrey acknowledges that dairy farming remains a challenging industry. While the family grows its own feed and harvests hay for their 300 head of cows, costs have continued to rise, from bottles to labor and mechanical parts. The family makes repairs themselves wherever possible and employs Audrey’s daughter and nephew, the fifth generation on the farm, who are actively involved in the farm. But to Audrey, the long hours and sacrifices are worth it.
“We shed our skin to keep doing it, because we truly love our farm,” Audrey says. “We are so proud to bring fresh dairy and beef to our customers. We really enjoy what we are doing.”
WHOLESOME DAIRY + ELMER AND SARAH’S
Douglassville, PA
Mark Lopez didn’t grow up wanting to be a dairy farmer. “I kind of backed into it,” he laughs. Growing up in Lancaster, Mark would visit his grandparents, Elmer and Sarah Stoltzfus, each summer, spending time on their operating dairy farm. “I was around to see the milking process, but I was more of a spectator,” says Mark. After graduating from high school, Mark lived in Philadelphia, where he played in bands, but soon realized he needed to consider a long-term career.
Remembering his summers in Berks County, he decided to become a dairy cow veterinarian, a career path that took him to Texas, where large-scale dairies dominate. “Even small dairies there had 2,000 cows,” says Mark. “At one point, I was responsible for the health of 25,000 cows.” But Mark eventually soured on the industrial model, which prioritizes milk production. “I realized that the diets the cows were being fed were putting them at risk. I learned how to fix twisted stomachs and made money doing it, but it felt wrong.”
After meeting his now-wife Elizabeth, who grew up in Hershey, Mark moved back to Pennsylvania, where his uncle, who was managing the Stoltzfus farm, allowed him to live in the family farmhouse and begin dairying (yes, that’s a word). From the start, Mark knew he wanted to create a different kind of dairy farm.
“I wanted to re-create the farm the way that my grandfather had it,” says Mark. “Cows on pasture, healthy, and rarely get sick.” He also saw trends in the food industry that worried him, with processed foods, marketed as healthy, increasingly showing up on grocery store shelves.
Fast-forward to the present and Mark follows the tradition of his grandfather and milks 55 cows on 100 acres of land that has been protected as farmland forever, a much smaller operation than the ones he frequented in Texas. He also operates a 501(c)(3) cow sanctuary, where 15 retired animals can quietly live out their days on rented pastureland. Mark acknowledges the difficulty of operating as a small dairy farmer.
“Industry publications tell farmers to make more milk, leverage your assets, and maybe you’ll survive longer,” says Mark. “The pressure on the dairy industry isn’t letting up.”
And so, to chart a different path, Mark has created a vertically integrated product line, Elmer and Sarah’s, named after his grandparents. In addition to selling raw milk through his Wholesome Dairy brand, he distributes Elmer and Sarah’s kefir, butter, and yogurt to local and natural foods retailers like Kimberton Whole Foods, Martindale’s Natural Foods, Echo Hill Country Store, Weaver’s Way Co-op, and Local Leaf Market.
“It’s such a pleasure to do business with these stores,” says Mark. “Their customers really appreciate our products and understand what we’re doing.”
Mark attributes the success of his delicious line of raw milk and minimally processed, value-added products to the philosophy of farming he practices each day. For Mark, his farm is a harmonious system of sun, grass, cows, and humans working together—a relationship that dates back to the earliest stages of human agriculture.
“Cows helped to domesticate us,” Mark says. “The milk they give is a gift from the earth—it’s grass turned into a highly nutritious food.”
A CALL TO ACTION
Behind every disappeared farm is a lost local business, a new warehouse or residential development, and a generational thread severed. And prospective new farmers, who recognize the challenges of dairy farming—from persistently low profitability to high startup costs—aren’t chomping at the bit to take their place. The simple act of buying a local bottle of milk, a scoop of ice cream, or a wedge of cheese produced by our neighbors can have a bigger impact than we think.
The future of dairy doesn’t have to be defined by its present state—one of a concentrated, impersonal, and precarious industry. Instead, it can be shaped, customer by customer, by those of us who believe that good food—and the livelihoods of the people who produce it—are worth preserving.
WHAT’S THE DEAL WITH RAW MILK?
Klein Farms and Wholesome Dairy are well known in the region for their raw milk. And while raw milk is not the central focus of this article, we’d be remiss if we left it out of the conversation. It tends to be controversial.
Louis Pasteur invented what would become his namesake process in the mid-1800s, and using it dramatically reduced milk-borne illnesses, according to the Centers for Disease Control and Prevention (CDC). The process involves heating milk (and other beverages) to a temperature sufficient to kill harmful bacteria, then quickly cooling it.
Advocates for raw milk say it tastes richer and contains beneficial enzymes that are lost during processing. Critics and regulatory authorities point to the risk of pathogens. But for Klein Farms and Wholesome Dairy, raw milk represents a critical part of their business model. In a system where conventional milk is cheap, raw milk can fetch higher prices and earn better returns. Mark Lopez says safety lies in handling: “Raw milk is safe when harvested and packaged properly… The real question is whether it was handled safely—not that it’s automatically contaminated.”
In states like Pennsylvania, raw milk sales are legal and regulated. Wherever you land in the debate, it’s worth reading more about raw milk and drawing your own conclusions.
“Cows helped to domesticate us. The milk they give is a gift from the earth—it’s grass turned into a highly nutritious food.”
—Mark Lopez, Wholesome Dairy
