Why do you equate children being raised by expert caregivers and away from biological parents and money legacies to factory farming? I think you may have watched a few too many sci fi movies. You can still do it in "families". You just need to determine the ideal number of children per caregiver and assign them accordingly.
Are you opposed to adoption? If not, this is not all that different.
Or is it an attachment to legacy, inheritance, and tribal identity getting in the way here? Do you find these things important to keep around today? With all that comes with them, ranging from wealth disparity to racism?
Imagine, growing up as a family of 6, headed by a pair of expert care givers trained in raising children, with 4 children of different "races", genders, etc, who don't all look the same, but are raised as siblings. Imagine what that could do to racism later in their lives. If your brother is black, I doubt you are going to be racist against black people. If your sister is latina and your other sister is white, I doubt you'll be racist against them either. And you'll all grow up with equal opportunity and access to the programs and money that you need, because each of these family units will have proper funding not dependent on who the birth parents were, so nobody grows up in a wealth bubble unaware of how the other half lives.
Again, I ask what you keep dodging: Why should who your birth parents are determine where you start out in society?