The proposed bill establishes a moratorium on new or expanding industrial dairy operations in South Dakota that exceed 7,499 dairy cows and are permitted as concentrated animal feeding operations. This moratorium will remain in effect until June 30, 2028, allowing the Department of Agriculture and Natural Resources to conduct a comprehensive analysis of the economic and environmental impacts of such operations. During this period, existing dairy operations that were approved prior to July 1, 2026, may continue to operate under their current permits.

Additionally, the bill aims to provide county governments with the necessary time to update their land use plans and ordinances to better align with the scale of industrial dairy operations. This includes requirements for road agreements between townships and dairy operations as part of conditional use permit approvals, as well as implementing increasing setbacks based on the size of the operations. The bill defines "industrial dairy operation" as any dairy with more than 7,499 head of dairy cows, emphasizing the need for careful consideration of the impacts of large-scale dairy farming on local resources and infrastructure.