Kilgus Dairy was founded near Fairbury by Duane and Arlene Kilgus in 1958 on land purchased from Duane’s father, Herman Kilgus, who had milked a small number of cows there during Duane’s childhood. Duane and Arlene began with 55 Holstein cows and sold their milk through a local cooperative for more than 30 years. They raised seven children, and succeeding generations of the Kilgus family continued the farming operation.

As the farm passed to younger generations, the family looked for ways to keep the operation profitable and provide opportunities for additional family members. They changed from Holstein to Jersey cows, which produce milk with higher butterfat and protein, and converted more than 50 acres of cropland into 17 grazing paddocks. In 2009, the family opened its own on-farm creamery and began bottling and distributing milk under the Kilgus Farmstead name.

The operation later expanded beyond dairy farming. Family members began raising Boer goats, Jersey steers, and Berkshire hogs, and in 2015 the meat operation became part of Kilgus Farmstead. Today, the business remains a multi-generational family operation producing, marketing, and distributing dairy and meat products. Its on-farm creamery and country store allow visitors to see where the products originate and purchase products produced by the Kilgus family.