The latest legal news on the raw milk front isn’t encouraging. Raw milk producer Michael Schmidt has been fined $55,000 on contempt of court charges in Canada in connection with legal moves against him and his cowshare.

He vows not to pay the fine, but governments have a way of obtaining their pound of flesh. Michael said at the Weston A. Price Wise Traditions conference screening of a documentary about him last month that legal expenses have been a major factor in reducing the size of his farm to 100 acres from 600 acres over the years.

This episode comes on top of the U.S. government’s suit against Organic Pastures Dairy Co. and its owner, Mark McAfee, along with a negative decision in New York’s Meadowsweet Dairy case.

The buzz I’m hearing is that more raw dairy producers are going “underground” rather than trying to fight The Man. The way we used to express it when I was a kid growing up in a tough neighborhood, and often confronted with overwhelming force, was this: “Better to be a live chicken than a dead hero.”

Going underground means different things in different places. I don’t want to get too specific about what’s happening in specific locations or with particular dairy producers, since I don’t want to give the regulators any help in their enforcement efforts.

Going underground can mean selling raw dairy products without a license in states that do license raw milk. It can mean having a license that limits sales to the farm, and delivering large quantities of milk to distributors and groups of customers. It can mean having an unpublicized herdshare in states that both prohibit raw milk and license raw milk producers.

These underground operations are what is supplying ever more milk to big cities in the East and Midwest, in particular. And my guess is that they will grow ever larger as the shadow of the FDA and state ag regulators grows longer. After all, it’s tough enough to make a living the honest way in this economic environment—who wants to add the time and energy and expense of fighting mindless regulation?

Of course, the obvious big risk in all this is that the supposed goal of the regulators (in states that allow raw milk), which is to improve the safety of raw milk supplies, will become ever more elusive, since they’ll be inspecting ever less of the milk.

From the regulators’ perspective, though, driving raw milk underground makes “the problem” of raw milk less visible, and thus less pressing. And my guess is that’s what they really want–a low buzz instead of loud shouts.