The dairy industry stands as a backbone of American agriculture, and few have championed its cause as persistently and effectively as U.S. Agriculture Secretary Tom Vilsack. Earlier today, Vilsack spoke to attendees at World Dairy Expo in Madison, Wis.
As Secretary for the second time, Vilsack continues to promote a resilient and competitive food system. Even between his official stints in government, Vilsack has remained deeply connected to the agricultural world, providing strategic leadership that strengthens the industry from within.
Strong Insights
The last time Vilsack attended Expo, in 2019, it was marked by economic contraction due to the pandemic. He emphasized the improvements since then: the all milk price has increased from just above $19 in 2019 to $23.05, with a forecast to rise further.
Vilsack also noted, “We had job numbers that came out showing an additional 245,000 new jobs. The unemployment rate went down to 4.1%. These figures undeniably contribute to a healthier economic landscape, thus benefiting the dairy industry.”
Global Opportunities and Challenges
Vilsack also pointed out the global economic headwinds, although he remains optimistic about dairy exports, highlighting record-high cheese sales and rising whey exports.
“I think the future of exports for dairy is bright,” Vilsack stated, pointing to potential market expansions in Vietnam, the Philippines and other nations. With tariffs decreasing in Latin American countries, the landscape for U.S. dairy products is indeed promising.
Vilsack also noted a myriad of challenges that face the dairy industry. At the forefront of the industry’s challenges are global market dynamics. In the case of Colombia, for example, Vilsack pointed out the application of countervailing duties, a situation they believe is unjustified. The U.S. is actively pushing back on these measures, recognizing the hurdles this creates in the market. Despite such challenges, there is excitement and optimism about expanding market opportunities in regions like Chile. The recent success in convincing Chile to acknowledge the importance of common names offers hope for continued product marketing without undue restrictions.
Biosecurity and Health Initiatives
Another pressing issue is the threat posed by the H5N1 virus. Currently, 286 herds across 14 states are affected, prompting both concern and action. The Producer Health Assistance Program and the herd status programs are two initiatives designed to aid producers in embracing effective biosecurity measures and facilitate cattle movement across state lines. Moreover, the emergency livestock assistance program has already provided approximately $10.5 million to producers impacted by the virus, highlighting governmental efforts to mitigate losses and bolster recovery.
Vaccine Development
In terms of proactive solutions, the dairy industry is eagerly anticipating advancements in vaccine development for the H5N1 virus. Research and trials are underway in Ames, Iowa, where a promising field safety trial is in progress. Should these trials succeed, they could pave the way for broader field trials and the eventual establishment of a viable vaccine, which would be a game-changer in managing viral threats to livestock.
Supportive Programs and Investments
Programs like the Dairy Margin Coverage (DMC) Program continue to support producers, with improvements made based on feedback from industry participants. Alongside this, the Environmental Quality Incentives Program (EQIP) has facilitated substantial investments—in the ballpark of $2.5 billion—aimed at aiding smaller and mid-sized producers.
Purchasing Initiatives and Nutritional Programs
Government procurement efforts have also contributed significantly, with an investment of approximately $12.5 billion from 2021 to 2024 in purchasing dairy products for food banks, schools and the WIC program. Participation in the WIC program is on the rise, with projected increases translating into substantial additional purchases of dairy products.
A New Model for Sustainable Farming
At the heart of USDA’s mission is developing a model that allows farming operations under $500,000 in sales to thrive. Small and mid-sized farms are critical to rural communities—not only as economic entities but as cultural and social pillars. As farms consolidate, rural communities face declining school enrollments, shrinking customer bases and reduced healthcare access. The USDA is, therefore, exploring innovative approaches to ensure farm vitality.
Instead of requiring farm families to seek multiple jobs, the USDA aims to help farms themselves generate multiple income streams. Climate Smart Agriculture Initiatives pay farmers not only for their produce but also for their sustainable practices. Across the United States, dairy farms are benefitting from 136 contracts encouraging climate smart practices and market premiums. Ecosystem service markets are emerging, promising additional income for environmental sustainability.
Innovation and Energy
In addition to environmental incentives, converting agricultural waste into energy represents another income opportunity. The REAP program supports such initiatives, allowing dairies like Wisconsin’s Dairy Dream to generate income through innovative waste management. This model not only reduces costs but creates profit opportunities—transforming manure into products like renewable natural gas and fertilizers.
To read the entirety of the latest press release from USDA, which outlines the $11.04 million in funding to support dairy businesses and producers under the Dairy Business Innovation Initiatives (DBI) grant program, go to: USDA Invests more than $11 Million to Support Resiliency in U.S. Dairy Industry | Agricultural Marketing Service
