Do I Need a License or Certification to Operate a Dairy Farm?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Operating a dairy farm in the United States requires more than land, livestock, and equipment. To legally produce, sell, and distribute milk, farmers must meet federal and state regulations. Licensing and certifications are designed to protect consumer safety, ensure animal health, and maintain consistent production standards.
Below is a detailed guide on the licenses and certifications required to operate a dairy farm professionally.
Do You Need a License to Run a Dairy Farm?
Yes. Every U.S. state requires at least one form of dairy operation license, and in many cases several. These permits are intended to verify that your facility meets sanitation, production quality, and environmental standards.
Typical licensing requirements include:
Dairy producer license
Milk handler or processor license (if processing dairy products)
State environmental permits
Water management compliance
Animal health documentation
For state-specific requirements, refer to the U.S. Department of Agriculture directory of state dairy regulatory programs
Required Certifications for Dairy Farms
Licensing provides legal authorization to operate. Certifications verify that your milk handling and production processes meet national safety standards.
1. Grade A Dairy Permit
A Grade A Permit is required for farms that sell Grade A milk to processors, cooperatives, and distributors. This certification ensures your facility aligns with the Pasteurized Milk Ordinance (PMO) standards for sanitation, facility design, equipment handling, and milk testing.
PMO standards can be reviewed here: FDA – Pasteurized Milk Ordinance
2. Food Safety Certifications
If your dairy farm processes raw milk into retail products such as cheese, yogurt, butter, or ice cream, you may need additional food safety certifications. Two widely recognized certifications include:
Hazard Analysis and Critical Control Points (HACCP)
Preventive Controls Qualified Individual (PCQI) certification
Learn more here: FDA – HACCP Guidance
3. Animal Health Compliance
Dairy farms must document animal care practices, follow vaccination schedules, and comply with state reporting for diseases. The U.S. Department of Agriculture provides regulations covering:
Disease control and reporting
Interstate cattle movement
Veterinary care practices
Biosecurity standards
Refer to federal livestock health regulations here: USDA – Animal Health Regulations
Environmental Permits
Dairy operations involve manure management, nutrient application, and water usage. Depending on herd size, you may fall under environmental regulations for Animal Feeding Operations (AFO) or Concentrated Animal Feeding Operations (CAFO).
Environmental requirements are managed by the Environmental Protection Agency
Selling Raw vs. Pasteurized Milk
Raw milk laws vary by state. Some states allow farm-direct sales with permits; others restrict or prohibit it entirely. If selling raw milk, you face stricter licensing and labeling requirements.
Always verify local regulations before beginning sales.
Why Operating Legally Matters
Compliance ensures:
Legal permission to sell milk
Access to cooperatives and wholesale markets
Reduced risk of fines or shutdowns
Consumer confidence and brand reputation
Protection during audits and inspections
Lack of proper licensing can result in penalties, discontinued contracts, and liability exposure.
Insurance Protection for Dairy Farms
Licensing allows you to operate. Insurance protects your investments against risk. A modern dairy farm faces exposure related to equipment breakdowns, livestock illness, worker injuries, and property or vehicle damage.
Common insurance coverage for dairy farms includes:
Wexford Insurance specializes in designing comprehensive insurance packages tailored to dairy operations across the country.
Final Thoughts
In the United States, operating a dairy farm without a license is not permitted. Each state has its own structure for licensing and certifications, but most farms require a combination of production permits, Grade A certification, environmental authorization, and food safety compliance.
Protecting your farm with appropriate insurance coverage is just as important as meeting regulatory obligations. While licensing ensures legal operation, insurance ensures long-term financial stability.
For guidance on building a risk-managed dairy farm insurance program, contact Wexford Insurance.
