Ole Johnson moved his family to Oliver County in 2003 to continue a way of life he had begun in Washington:dairy farming.

The Johnsons and their 11 children work the Destiny Dairy north of Center.

Back then, the economic climate was not good for dairy farmers on the West Coast.

These days, it's not very good in North Dakota either, as well in the rest of the country.

With dairy farmers today getting about half of what they received for their product a year ago, the slippery slope between staying in business and folding has gotten steeper.

In 2004, there were roughly 600 dairy farms in the state. Today, there are slightly more than 200.

In that same time frame, the number of dairy cattle in the state dropped from about 34,000 to 26,000.

Johnson said he fears he also will be a casualty if things do not take a turn for the better - and soon.

"What we have built in the last 20 years, we've lost in the last six months," Johnson said, choking back the emotion.

Johnson's story was just one of many that were shared Thursday at the Seven Seas Hotel in Mandan as the North Dakota Farmers Union hosted a dairy summit.

Robert Carlson, president of the NDFU, said simply, the dairy industry is "the biggest single crisis" facing agriculture today.

Carlson said if immediate action is not taken, more dairy operations will fold.

"Our state cannot afford this," he said.

The format of the summit was stories from producers outlining the economic pinch hitting the dairy farmers.

Bill Riehl runs about 40 cows on his farm near Raleigh. He's a third-generation dairyman, and said his family has seen a lot of ups and downs over the years.

A year ago, his herd was at 80 head, he said. This downturn is the industry is different, Riehl said.

Before, larger producers could still turn a profit when prices dropped, but that's not that case anymore.

"It's practically Armageddon," he said,

Riehl said when his father was still milking in the late 1970s, he was getting 60 percent of the retail price dairy sold for in stores. Today, it's 22 percent, Riehl said.

In the past 20 years, production has increased about 1.5 percent and consumption has mirrored that rise, he said, so the industry should be stable.

But that's not the case. Riehl said prices are set in Chicago based on less than 4 percent of the supply nationwide and controlled by a few large conglomerates.

In the meantime, input costs for dairy farmers are increasing. Supply is matching demand, but the prices farmers are getting does not reflect that, he said.

"We're up to our eyeballs in debt … we are not victims of the free market."

Dwight Aakre, a farm management specialist and North Dakota State University economist, said farmers here are facing 60 percent higher overhead costs than in the past, and estimates they could lose more than $1,000 per cow this year.

He said today's dairy farmer is as efficient as at any time in the past and it's not a question of poor management.

"This is not a management problem," Aakre said. "I believe it is in the market."

Representatives of North Dakota's congressional delegation, along with representatives from the governor's and agriculture commissioner's office, were at the summit, but had no answers for the frustrated farmers.

Short-term, Riehl said an $18 floor for milk prices would help farmers stay afloat, not necessarily make a profit.

"It's to the point where you almost feel guilty making a profit," he said. "It shouldn't be that way."

Some in the crowd pointed to market manipulation by large corporations as the top issue, saying nothing will change in the long run until they are reined in.

Riehl said the way in which the dairy industry operates must make wholesale changes or risk going under completely.

"When you keep doing the same thing over and over expecting different results, that's the very definition of insanity," he said.

One producer spoke out, saying after a meeting with a banker on refinancing options, he was told his family would would qualify for the maximum in food stamp assistance.

"We feed the world, but starve at home."

(Reach reporter Brian Gehring at 250-8254 or brian.gehring@;bismarcktribune.com.)