Dairy Policy

A Decade at the Helm: IDFA CEO Michael Dykes to Retire in 2026

Fri, 15 May 2026 16:59:13 GMT

The International Dairy Foods Association (IDFA) is preparing for a major leadership transition after President and CEO Michael Dykes, D.V.M., announced plans to retire at the end of 2026, closing out a decade at the helm of the organization.

The announcement sets in motion a formal succession process, with IDFA’s Executive Council officer group forming a committee to oversee the selection of the association’s next president and CEO. Dykes will remain in his role through Dec. 31, 2026, ensuring continuity as the organization navigates the transition.

“Michael has been a transformational leader for IDFA and for the U.S. dairy industry,” says Daragh Maccabee, chair of the IDFA Executive Council. “Over the past decade, he has strengthened IDFA’s credibility, expanded its influence, and helped position the association and the dairy industry for long-term success. Under his leadership, IDFA has built one of the strongest advocacy teams in Washington, strengthened its financial position, expanded industry engagement across the supply chain, and helped deliver extraordinary momentum for dairy both domestically and globally. The organization is exceptionally well positioned for the future.”

Dykes joined International Dairy Foods Association in 2017, stepping into the role at a time when the industry was facing big questions around policy, trade and consumer perception. Since then, he’s helped steer the organization through a period of steady growth and some of its most visible policy wins in recent years.

“It has been the privilege of a lifetime to serve America’s dairy industry and to lead this outstanding organization,” Dykes says. “Together, our members, board leaders, and talented team have strengthened dairy’s voice, expanded opportunities for our industry, and positioned dairy as an essential part of America’s future. I have never been more optimistic about the trajectory of the U.S. dairy industry or the strength of IDFA heading into the next decade.”

Under his leadership, IDFA expanded its membership and worked to better connect the full dairy supply chain under one umbrella, strengthening how the industry speaks on policy issues in Washington. That work helped elevate dairy’s role in nutrition policy, including recent federal dietary guidelines that reaffirmed dairy as a core food group and recognized dairy foods across fat levels as part of healthy dietary patterns.

The association also played a key role in advancing the bipartisan Whole Milk for Healthy Kids Act, which restored whole and reduced-fat milk options in schools and expanded choices for students and families.

On the trade side, Dykes pushed to strengthen U.S. dairy’s position in global markets, including through advisory roles with the Office of the United States Trade Representative and the Agricultural Policy Advisory Committee. Those efforts have been part of a broader push to keep U.S. dairy competitive internationally.

More recently, he helped launch the IDFA Foundation in 2022 and expanded nutrition incentive programs tied to SNAP, aimed at improving access to dairy as an affordable, nutrient-dense food.

His tenure also included leading through major disruptions, including the COVID-19 pandemic, when dairy plants were deemed essential infrastructure to keep food moving, and during Highly Pathogenic Avian Influenza outbreaks, when the industry worked closely with government to maintain confidence in dairy safety and supply chains.

Dykes will stay on through the end of 2026 as the search for his successor moves forward.

Teens Trust Dairy More than Any Other Generation, New Survey Finds

Mon, 11 May 2026 21:51:01 GMT

Consumers continue to rank dairy as one of the most trusted food categories, and new data suggests that confidence is strengthening most among younger consumers at the same time federal policy is expanding access to whole milk in schools.

According to the latest Consumer Perceptions Tracker from Dairy Management Inc., 36% of consumers gave dairy one of the top two trust ratings on a seven-point scale in 2025, a slight increase from the previous year.

(National Milk Producers Federation)

But the most notable shift is happening with teenagers.

The report found teens recorded the highest trust levels of any age group, with 47% rating dairy a six or seven on the seven-point scale. That figure has steadily climbed from 33% in 2023 to 41% in 2024 and now 47% in 2025.

The trend reflects a generational change in how younger consumers view dairy products, at a time when nutrition conversations have increasingly centered on protein, whole foods and minimally processed diets.

(National Milk Producers Federation)

Whole Milk Returns to School Menus

Federal policy is aligning with these priorities through updated school nutrition standards that restore broader access to whole and reduced-fat milk options.

The USDA recently issued a final rule implementing the Whole Milk for Healthy Kids Act, restoring whole and reduced-fat milk options in federal Child Nutrition Programs for children and adults ages 2 and older.

The law, signed by Donald Trump in January 2026, reverses previous restrictions that limited schools largely to low-fat and fat-free milk options.

(Evelyn Hockstein/REUTERS.)

“President Trump promised to Make America Healthy Again, and restoring whole milk to schools is a major step toward delivering on that promise,” says U.S. Secretary of Agriculture Brooke Rollins.

Rollins framed the rule as both a policy correction and a step toward expanding milk options in school nutrition programs.

“For years, outdated federal rules kept nutritious whole milk off school menus, despite growing evidence showing the importance of healthy fats and nutrient-dense foods for child development,” Rollins says. “USDA is proud to implement the Whole Milk for Healthy Kids Act and give schools the flexibility to serve real, wholesome milk options that help children grow, learn, and thrive.”

Industry groups have praised the move, saying it brings federal policy more in line with current nutrition guidance and student preferences.

Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association, called the rule “a major victory for children’s nutrition and common-sense school meal policy,” adding that USDA acted quickly to give schools and processors “the certainty they need to offer students the nutritious milk options that best meet their nutrition needs.”

“For too long, federal regulations limited schools’ ability to offer the milk options students prefer,” Dykes says. “This rule restores flexibility while aligning policy with the Dietary Guidelines for Americans, which recognize dairy across all fat levels as part of healthy dietary patterns. Importantly, it allows flavored and unflavored milk across all fat levels, helping schools better meet student preferences while improving access to the 13 essential nutrients milk provides in every serving.”

Long-Term Demand Trends

Full fat dairy products such as whole milk, cottage cheese and Greek yogurt are seeing renewed interest among younger consumers. Much of that interest appears tied to higher protein eating patterns and growing attention to minimally processed foods in online spaces.

Teen trust in dairy rising alongside schools bringing back more milk options points to how consumer preferences and nutrition guidance are lining up. Eating habits formed during the teenage years tend to carry into adulthood. Choices made around everyday foods and beverages during that stage often become familiar patterns later in life, even as diets and preferences continue to evolve. When trust builds early, it can carry forward and show up in long-term consumption patterns.

The Empty Stanchion: The Structural Labor Crisis Threatening U.S. Dairy

Mon, 11 May 2026 13:22:48 GMT

In the rolling plains of the Texas Panhandle and the volcanic soils of Idaho’s Magic Valley, a silent crisis is brewing. It isn’t a disease outbreak, a drought or a sudden crash in milk prices. Instead, it is the steady, quiet disappearance of the human hands required to keep the nation’s dairy industry running.

As the U.S. dairy sector has modernized and expanded, it has hit a paradoxical wall: The more technologically advanced the farms become, the more they find themselves tethered to a labor market that is increasingly broken.

For states like Texas and Idaho — two titans of U.S. milk production — the labor shortage is no longer a seasonal inconvenience; it is a structural deficiency that threatens the long-term viability of the industry and the economic health of the rural communities that depend on it.

The Texas Powerhouse Under Pressure

Texas has rapidly ascended the ranks to become a top-tier dairy state. By 2025, the Lone Star State produced a staggering 18 billion pounds of milk from approximately 705,000 cows. This isn’t just about milk in the grocery store; it’s an economic engine that contributes tens of billions of dollars to the state economy and supports over 250,000 direct and indirect jobs.

However, Texas Association of Dairymen Executive Director Darren Turley warns that this engine is running on a dangerously thin workforce.

“The Texas dairy industry has a persistent and growing need for labor because today’s large, modern dairies are labor-intensive businesses that operate every day of the year,” Turley shares in the association’s latest blog.

In the vast rural stretches of Texas, the labor market is exceptionally tight. Recruiting for long-term farm work has become a monumental task. The jobs are physically demanding, and the always-on nature of a dairy — as cows must be milked 365 days a year — clashes with a domestic workforce that increasingly seeks flexibility and climate-controlled environments.

More Than Just Milking

A common misconception is that dairy labor starts and ends in the milking parlor. In reality, the modern dairy is a complex ecosystem of specialized roles. Beyond the milkers, farms require staff for animal care, feeding, manure management, calf rearing and the operation of increasingly sophisticated machinery.

While robotics and automation are often touted as the solution, Turley notes that technology is a tool, not a total replacement.

“While technology, including a growing number of robotic dairies, may help reduce some labor pressure, there always will be a need for human workers,” he says.

When labor is short, the entire system slows down. Cows aren’t fed as precisely, maintenance is deferred and expansion plans are shelved. For a state like Texas, which is built on the premise of growth, a lack of labor acts as a hard ceiling on potential.

The Idaho Alarm: A Math Problem

Further north in Idaho, the situation is perhaps even more acute. Idaho Dairymen’s Association CEO Rick Naerebout paints a stark picture of the math facing the state’s producers.

“The state has 84 Idahoans for every 100 jobs available,” Naerebout says.

The struggle to find domestic workers is best illustrated by a sobering statistic from last year: Out of 7,500 H-2A agricultural jobs advertised in Idaho, only five were taken by Idahoans. The H-2A program requires farmers to advertise to domestic workers first, but the reality is that the local population is either unable or unwilling to fill these roles.

“Ag jobs are tougher to fill because they are physically demanding and often outdoors,” Naerebout notes.

This leaves dairy farmers in a precarious legal and operational position. Because the H-2A visa program is strictly for seasonal work, the dairy industry — which requires year-round, consistent labor — is effectively locked out of a legal pathway to hire the foreign workers they so desperately need.

The Policy Trap and the Economic Cliff

The crux of the issue lies in the disconnect between federal immigration policy and the biological reality of a cow. A dairy cow does not stop producing milk when the season ends. Yet, the only major agricultural visa program available (H-2A) is built on a seasonal model.

Naerebout points to two primary friction points: the lack of a year-round visa and the political volatility surrounding immigration. In Idaho, attempts to implement worker verification systems at the state level failed, but the fear remains. Meanwhile, federal crackdowns on immigration create an environment of uncertainty that discourages workers from entering the sector.

The consequences of failing to fix this immigration issue are not just confined to the farm gate. Naerebout warns of a massive economic multiplier effect.

“If we remove 50% of the workforce, it would induce a recession the size of the 2007 to 2009 recession,” he says.

In Idaho, removing 27,000 workers who are currently without legal status would trigger the loss of an additional 25,000 jobs held by American-born citizens in sectors like construction, hospitality and retail.

Seeking a Federal Fix

The solutions proposed by industry leaders like Naerebout and Turley are pragmatic, yet politically difficult to achieve. There are two primary avenues for relief:

Visa expansion — This involves transitioning the H-2A program or creating a new visa category that accounts for year-round industries like dairy and fresh-pack produce. This would provide a legal, transparent pathway for foreign workers to fill vacancies that domestic workers have rejected.
Legalization of the existing workforce — This involves acknowledging that the current dairy workforce is already largely comprised of immigrant workers who are trained and essential. “Have them go through a background check and pay a penalty, but let them stay,” Naerebout suggests.

The Stakes for the Consumer

Ultimately, the labor crisis on the dairy is a consumer crisis. When labor shortages raise costs and limit production, the price of milk, cheese and butter inevitably climbs. In Texas, where the population is booming, the demand for dairy is higher than ever. If the state’s dairies cannot run at full capacity, the supply chain becomes fragile.

As Turley puts it: The labor need is a structural issue, not a short-term inconvenience.

“Unless labor supply improves through policy changes, better recruitment, automation or all of the above, Texas dairies will continue facing pressure to protect productivity and profitability,” he says.

The American dairy farmer has proven to be incredibly resilient, surviving market crashes and environmental challenges. But you cannot milk a cow with a vacancy. Without a federal resolution to the workforce shortage, the great rebalancing of the dairy industry may not be a matter of prices or protein; it may be a matter of who is left to do the work.

The Hidden Squeeze: Why the $5 Make Allowance is the New Battleground for the U.S. Milk Check

Wed, 08 Apr 2026 11:58:29 GMT

In the world of dairy economics, there is a term that often flies under the radar of the average consumer, yet it keeps thousands of dairy farmers awake at night: the make allowance. To a processor, it is a necessary calculation of the cost to turn raw liquid milk into cheese, butter or powder. To the American Dairy Coalition (ADC) and the farmers they represent, it has become an invisible, multidollar tax that is fracturing the foundation of the family farm.

As of March 30, 2026, the tension between the barn floor and the processing plant has reached a boiling point. After requesting an extension March 20, which was not granted, ADC submitted final comments by the March 30 deadline to the USDA Agricultural Marketing Service (AMS) regarding the Advance Notice of Proposed Rulemaking (ANPR).

Math of the Margin: A $5 Deduction

For years, the make allowance was a relatively stable figure. However, following the 2025 Federal Milk Marketing Order (FMMO) changes, the math has shifted dramatically in favor of the processor.

According to a deep dive by Sherry Bunting, ADC market analysis and policy adviser, the first eight months under the new 2025 rules have seen total make allowances surge.

“When translated from cents per pound into real milk check impact, and paired with rising component levels, total deductions now range from $3.22 to as high as $5.04 per cwt at pool average test,” she says.

Using federal pricing formula calculations developed with longtime expert Calvin Covington, former CEO of Southeast Milk and National All-Jersey, Bunting points out that the eight-month average deduction for Class III increased $1 at $4.74 per cwt, with Class IV up $0.93 at $3.32.

“In practical terms, that’s a multidollar deduction built into the pricing system on the front end,” says Laurie Fischer, CEO of ADC.

The impact of this front-end deduction is staggering. ADC analysis shows that while estimated processor gross margins have jumped by 26% to 39%, the minimum milk value paid to farmers has plummeted by 5% from this change alone. To put that in perspective, that 5% reduction effectively wipes out nearly two decades of modest, hard-won price gains for producers — at a time when the cost of diesel, labor and feed is at an all-time high.

Transparency Gap

One of the primary green flags producers were looking for in USDA’s mandatory survey was transparency. If farmers are going to pay for the processing, they want to see the receipts. However, the process has been marred by what ADC calls a “lack of meaningful engagement.”

USDA provided a 30-day comment period — a window so small that many producers were unaware the conversation was even happening. With limited public outreach, the very people whose checks are being “audited” were left on the sidelines.

“Farmers didn’t have time to fully engage in a process that directly affects how their milk is priced,” Fischer explains. “There is a real expectation that this survey will provide transparency, and USDA needs to ensure that expectation is met.”

Efficiency Paradox: Where are the Savings?

Perhaps the most compelling argument raised by ADC involves the massive leap in plant efficiency over the last quarter-century. Historical data compiled by Covington shows that in 2000 it took 99.47 lb. of milk to produce 10 lb. of 38% moisture cheddar cheese. By 2025, that dropped to 87.2 lb.

“In more practical terms, it required almost 25 less tankers (50,000 lb./tanker) of milk per day to produce 1 million pounds of 38% moisture cheddar cheese compared to 2000,” Covington notes.

The logic is simple: If it takes fewer trucks, less milk volume to handle, less time to process the same amount of product and more product to spread the fixed plant costs, why are the deductions for processing costs reaching record highs? In its comment, ADC seeks distinction between fixed and variable costs to recognize this yield gain.

ADC is urging USDA to ensure the survey accounts for these gains in plant efficiency. They are also sounding the alarm on “cost shifting.” Modern dairy plants produce an array of high-value products — ultrafiltered milks, specialized proteins and niche ingredients — that aren’t even part of the federal pricing formulas. Without a clear separation of costs, farmers fear they are subsidizing the production of high-margin items that don’t actually contribute to their own milk checks.

Price Taker Dilemma

The fundamental struggle of the U.S. dairy farmer is their status as a “price taker.” In almost every other sector of the economy, if your costs go up, you raise your prices. In dairy, the farmer ships the milk weeks before they even know what they will be paid for it.

“Dairy farmers remain the only participants in the supply chain without the ability to set prices or recover costs through a built-in mechanism,” Fischer says.

Processors have the make allowance to protect their margins. Retailers have the ability to adjust the price on the shelf. The farmer, standing at the beginning of the chain, has only the hope that the federal formulas remain fair. But when the gap between the All-Milk price (used for risk management programs like DMC) and the mailbox price (what actually hits the bank account) widens to over $1 per cwt, the system begins to break.

Road to a Fair Formula

ADC’s message to USDA is one of focus and fairness. They are calling for an end to scope creep within the cost survey; the survey must remain strictly focused on the physical cost of converting milk into the four specific products used in federal formulas: butter, nonfat dry milk, cheese and dry whey.

As the industry moves toward the next chapter of the margin revolution, the demand for a stable, legal workforce and high-tech efficiency must be matched by a regulatory environment that values the producer.

The domestic supply chain is more than a logistical network; it is a promise of food security for a growing world. However, that chain is only as strong as its first link: the producer. If the $5 make allowance continues to deepen its impact without transparency or justification, the heartbeat of U.S. dairy — the family farm — is at risk of stopping.

“This is about transparency and fairness,” Fischer says. “Farmers should not be paying for costs tied to products that do not determine their milk price.”

Mississippi Leads the Charge: The First State to Ban Lab-Grown Dairy

Fri, 27 Mar 2026 17:36:22 GMT

Several years ago, lab-grown dairy — produced through precision fermentation or cell-culturing techniques — emerged as a high-tech disruptor in the food industry. Startups and venture capitalists positioned these products as sustainable, animal-free alternatives to traditional milk, garnering significant media attention. However, U.S. dairy producers were quick to push back, dismissing these innovations as “fake milk.” Now, that initial momentum is hitting a legislative wall as states move to protect their agricultural heritage.

Mississippi’s Landmark Ban

Mississippi has officially become the first state in the U.S. to explicitly ban cell-cultured dairy products. This follows the passage of HB 1153, a bill that broadens the legal definitions of meat, manufactured protein, cultivated protein, insect protein, plant protein and cell-cultured dairy.

The legislation is designed to prevent the misbranding of dairy products and establishes strict labeling requirements and inspection authorities. Most notably, the law implements an outright ban on the manufacture, sale and distribution of lab-grown dairy products within the state.

Key Provisions of HB 1153

Effective Date: July 1, 2026.
Penalties: Violators face a fine of $500 per violation per day, with a maximum penalty of $10,000.
Enforcement: The bill grants updated authority to state inspectors to ensure compliance and prevent “fake milk” from reaching shelves.

A Broader Trend of Protectionism

This move is part of a larger legislative effort in Mississippi to regulate alternative proteins. Last year, the state passed HB 1006, which banned lab-grown meat (effective July 1, 2025). Both bills were sponsored by Rep. Bill Pigott, signaling a consistent effort by state lawmakers to prioritize traditional livestock and dairy farming.

Mississippi agriculture commissioner Andy Gipson has been a vocal supporter of these measures. During a recent National Ag Day event, Gipson emphasized the importance of “real food for real people,” framing the ban as a victory for traditional agriculture against artificial alternatives.

“We are living in a time where it seems everything is artificial, and you wonder what is real. We’ve seen everything from fake grass, Astroturf, to fake meat, and now they’ve come up with lab-grown, or fake, milk. So today, we’re especially proud to be here to celebrate agriculture and to promote real food for real people. Thank you to our legislators for making Mississippi the first state in America to outlaw fake milk,” he said.

Industry Implications

Mississippi’s decision sets a precedent that other dairy-producing states may follow. While the lab-grown dairy industry continues to innovate globally, it now faces a fractured regulatory landscape in the United States, where state-level bans could significantly limit market access.

National Milk Producers Federation has consistently argued milk must come from a hooved animal. They have been a primary driver behind DAIRY PRIDE Act (Defending Against Imitations and Replacements of Yogurt, milk, and cheese to Promote Informed Dairy Choices). This federal legislation aims to force the FDA to enforce labeling standards that would prevent plant-based and lab-grown alternatives from using dairy terms like milk, cheese or yogurt.

As the lab-grown dairy industry continues to innovate globally, it now faces an increasingly fractured regulatory landscape in the U.S. State-level bans like Mississippi’s could significantly limit market access and complicate the path to commercialization for alternative protein companies.

Reciprocity and Balance: The New Blueprint for U.S. Agricultural Trade Agreements

Thu, 05 Mar 2026 21:01:57 GMT

Ambassador Julie Callahan is the chief ag negotiator at the U.S. Trade Representative, and she reports positive momentum toward rebuilding trade agreements equating to a positive U.S. ag trade balance.

“We came into a situation in January 2025 where the US ag trade deficit was ballooning in a really unsustainable manner,” she says.

At the beginning of 2025, USDA forecasted a $50 billion deficit for U.S. agricultral trade.

“Compare that to an agricultural trade surplus in 2020 when President Trump left office, of a $6 billion surplus. So we were $56 billion in the hole, you might say, at the beginning of the administration, but through the efforts of the president ensuring trading partners understand they need to treat U.S. farmers and ranchers right, we are seeing real shifts in our trade balance and chipping away at the deficit toward a surplus.”

Trade Wins Highlighted by Government Officials

Callahan points to eight signed trade agreements with: Malaysia, Cambodia, El Salvador, Guatemala, Argentina, Bangladesh, Taiwan and Indonesia. She says these are binding agreements, where the foreign governments are:

lowering tariffs for U.S. ag products
removing unfair trade practices
and lifting regulatory barriers

“These are serious binding trade agreements that will deliver real value for U.S. farmers and ranchers,” Callahan says. And when asked if Congressional action to codify agreements is necessary, Callahan says that action would be supported but should not be necessary.

“These foreign governments have made binding commitments in terms of adjusting tariff schedules, they are also making regulatory changes. USTR will be enforcing these agreements. They are enforceable.”

Examples of enforceable commitments include:

Indonesia removes its import licensing requirements
Malaysia accepts facilities on their registration list as long as FSIS has them on their list

The Future of the U.S./China Trade Relationship

At the 2026 Top Producer Summit, Lyu Jiang, minister for economic and commercial affairs at the Chinese Embassy in the U.S., characterized the U.S. and Chinese relationship being a phase of stabilization.

When prompted to react, Callahan agreed saying, “We very much want a stable, predictable, transactional relationship with our Chinese counterparts. We do want to normalize, bring reciprocity and balance back to our trade relationship and ensure that U.S. farmers, and ranchers can benefit from the Chinese market again.”

She says her office is balancing the agricultural stakeholders wanting access to the large-scale Chinese market with a strategy to also diversify trade partnerships as to not be too reliant on a single country.

“We are working through the agreement on reciprocal trade to diversify our markets so we don’t overly rely on China,” she says. “We are looking to address that very serious situation where China may see agriculture as a pain point for the United States.”

With the upcoming meeting of President Trump and President Xi in April, Callahan says her team and the larger U.S. trade team is working to prepare and set the stage for a positive outcome. Callahan points to specific issues to be worked through and market focuses spanning crops and livestock.

“Both sides want the meetings to be a success,” she says. “Certainly, in the meetings leading up to the president level discussion, we will be having open and frank conversations with China where we need to see areas of improvement. That’s not limited to soybeans to sorghum. Our beef producers don’t have access to China due to China’s unfortunate actions that are not renewing facility registrations.”

The Review of USMCA

With a goal of “reciprocity and balance across north America” the trade team is working on its review of the North American trade deal.

“We absolutely understand the importance of USMCA for U.S. farmers and ranchers,” Callahan says.

Describing this as a “comprehensive review” she says that spans:

Look at what is working
Maintain what is working
Improve on areas not be delivering the benefits U.S. farmers and ranchers expect

She brings up the overall trade balance with Canada and specifically, Canadian dairy.

“With Canada, we went from a $3 billion deficit in 2020 and now we have an $11 billion ag trade deficit. So there are certainly areas for improvement, and we’re taking all of our stakeholders’ comments into consideration,” Callahan says.

Beyond An '80s Buyout: A New Voluntary Approach to Dairy Surpluses and Beef Supply

Tue, 20 Jan 2026 17:03:41 GMT

The dairy industry is no stranger to the relentless cycle of “low prices cure low prices,” a brutal reality where dwindling profits force producers to consider exiting the business. The rearview mirror of history reveals a pattern: When milk prices plummet, the government intervenes.

From the 1980s to more recent times, various assistance programs have attempted to curb milk supply and stabilize prices with mixed results. Now, as dairy producers once again grapple with challenging margins and low milk prices, a new farmer-driven proposal is emerging.

Voluntary Program to Cull Dairy Cows

The Make America More Ground Beef (MAMGB) initiative is designed to help dairy farmers monetize surplus dairy-origin cattle, increase domestic beef supply and help lower grocery prices for American families. Bolstered by Western United Dairies, it is not a mandate but a voluntary program open to all U.S. dairy operations, potentially launching as early as this spring.

Anja Raudabaugh, CEO of Western United Dairies, a trade organization that represents more than 75% of milk produced in California, says they’re answering the Trump’s administration’s call to make real food affordable while putting American farmers first.

“This plan is something new and different. We don’t have to choose between America’s affordable access to high quality nutrition and farmers’ bottom lines,” Raudabaugh says. “Incentivizing farmers to cull only what’s needed to generate affordability for the American consumer is a win-win. It is not a herd buyout, and there are guardrails to ensure the cows end up in slaughter. We want to ensure the U.S. dairy industry stays strong and resilient in the future, and that we have a long-term, reliable supply of American-grown beef in our feedlots.”

Recently, the American Farm Bureau Federation (AFBF) has been vocal in opposition to such government interventions. During the organization’s recent annual convention, an amendment was made from the floor because “USDA started having talks about a dairy buyout program to bring down beef prices,” said Mike McCormick, Mississippi Farm Bureau president, when introducing the amendment.

AFBF delegates added language by unanimous consent opposing “any federally funded dairy buyout program that has the potential to create further market volatility in livestock market sectors.”

“Discussions of such a program are deeply concerning. We need solutions that benefit all of agriculture, not solutions that benefit one ag sector at the expense of another,” says John Newton, vice president of public policy and economic analysis with AFBF. “Solutions to help farmers should be market-driven and lasting, not short-term actions that could potentially damage the long-term strength of agriculture. We recognize the challenges facing dairy farmers and look forward to partnering with them to find solutions that work for all of agriculture.”

A Legacy of Government Intervention

The MAMGB proposal follows a long history of interventions, starting with the first significant federal effort to address milk surpluses in 1984-1985 with the USDA-Administered Milk Diversion Program. Responding to a surge in surplus dairy product purchases that cost USDA $2.7 billion in 1983, Congress enacted a temporary program. Farmers were paid $10 per cwt. to reduce their milk marketings by 5% to 30%, funded by a farmer assessment.

While $955 million was paid out and milk production was reduced by an estimated 3.74 to 4.11 billion pounds in 1984, the program suffered from “adverse selection” and “moral hazard” issues. Many participants had already reduced production, and non-participants expanded, leading to no measurable impact on national average milk price or overall production trends. Milk supply quickly rebounded, prompting further intervention.

This led to the more drastic 1986-1987 Milk Buyout Program (Dairy Termination Program - DTP), part of the 1985 farm bill. The goal was ambitious: Reduce U.S. milk production by 12 billion pounds annually by paying farmers to permanently exit production. Approximately 15,000 farmers accepted bids, removing about 1.55 million cows at a cost of $1.8 billion. However, like its predecessor, the DTP faced “free-rider” problems; non-participating farms increased their output, offsetting the intended reduction. While growth remained flat, national milk production did not decline as significantly as intended.

“The Dairy Termination Program, or Whole Herd Buyout, legislated in the 1985 farm bill, was a response to the now discontinued dairy price support program that had ratcheted milk prices to a level that was generating very costly surpluses of government dairy product purchases under the program,” says Peter Vitaliano, long-time chief economist of the National Milk Producers Federation. “Our analysis suggests that DTP and support price reductions during 1986-90 have proven to be a cost-effective means of reducing the quantity and expense of government purchases under the price support program.”

According to Vitaliano, the beef cattle industry strongly opposed any future legislated programs due to the impact on the cattle market and prices.

“The current political sensitivity about food affordability could also attract a wider focus on any legislated program to ‘elevate milk prices,’ he says.

Following these federal efforts came industry-funded voluntary herd buyouts from 2004 to 2011 through the National Milk Producers Federation Cooperatives Working Together (CWT) program. Dairy farmer cooperatives collectively aimed to reduce the milk supply by more than 1 billion pounds annually, ultimately removing an estimated 510,000 milking cows over seven years, with a notable 250,000 in 2009.

“The CWT program, a consortium of dairy cooperatives, initially operated a herd retirement program, loosely modeled on the DTP, in addition to an export assistance program,” Vitaliano says. “It attracted some class-action lawsuits brought under various state antitrust-type laws that resulted in a large legal settlement. This has established some legal precedents that would doubtless prove cautionary to undertaking a similar program in the future.”

A more recent concept, the Dairy Market Stabilization Program (DMSP), was debated in the 2014 farm bill. This proposed program would have been coupled with the Margin Protection Program (MPP), levying penalties on dairy farmers who didn’t reduce supply when MPP margins fell below certain thresholds. Though not enacted, historical analysis shows DMSP would have been infrequently triggered, highlighting the challenge of effective supply control.

How Make America More Ground Beef Would Work

Western United Dairies shares the MAMGB program aims to divert 800,000 to 1 million additional dairy-origin cattle in spring 2026, injecting an estimated 900 million to 1.1 billion pounds of lean trim into the ground beef market. This added supply is projected to:

Lower retail ground beef prices by 18% to 25%.
Increase overall beef demand.
Support packing plants and rural jobs. This aligns with national dietary guidance encouraging affordable, high-quality protein.

MAMGB offers two voluntary tracks with payments on top of normal market sale prices:

Immediate Cull Track. For culling dairy cows of any age or condition, this track offers $1,600 per head, plus a $200 early-delivery bonus, for a total potential payment of up to $1,800 per head, paid upon proof of slaughter within 30 days.
Feedlot Beef Track. For dairy heifers over 400 lb. shipped to approved feedlots for a minimum finishing period, this track offers $1,800 per head, plus a $200 early bonus, for a total potential payment of up to $2,000 per head.

MAMGB is designed with guardrails to protect long-term dairy viability:

Above-Baseline Rule. Incentives apply only to additional animals beyond a farm’s normal culling levels.
Strict Dairy-Only Verification. Ensures only dairy-origin animals qualify through breed checks, RFID and packer attestations.
Capacity Safeguards. Real-time monitoring can pause regional signups if packing plants near 90% capacity, preventing bottlenecks.
USDA-Aligned Caps. Per-entity payment caps adhere to standard USDA program limits.

Dairy Industry Optimism and Growth

Michael Dykes, CEO of the International Dairy Foods Association, stresses the industry’s eagerness for growth among both dairy producers and processors.

“The U.S. dairy industry is growing thanks to record domestic demand and exports and innovation from the farm to the plant. Dairy is meeting the moment because it delivers what matters most today — flavor, affordability and complete nutrition,” he says. “That growth has led dairy processors to invest more than $11 billion in new processing capacity to come online by 2028. We’re optimistic that our industry will continue to grow with the passage of the Whole Milk for Healthy Kids Act and the recently released Dietary Guidelines that recognizes the nutritional benefits of dairy in all fat levels. Our industry continues to produce innovative new products that meet the evolving consumer interests, and we’ll continue to grow dairy’s market share at home and abroad in the coming years for the benefit of the entire industry.”

This excitement has spread from boardrooms to barns, driving remarkable growth in milk production across the U.S. The latest USDA Milk Production Report details a vigorous increase in milk output. November’s milk production in the 24 major states reached a total of 18.1 billion pounds, reflecting a 4.7% increase from the previous year.

Phil Plourd, president of Ever.Ag Insights, says he looks at cow numbers first and with 211,000 more cows year-over year, he says it will be a while before we see a dramatic slowdown in milk production.

“We’ve got over 200,000 more cows, and those cows are producing around 20 pounds more milk than last year,” adds Robin Schmahl of AgMarket.net. “We have a lot of milk.”

As the dairy industry continues its perennial battle against the “low prices cure low prices” cycle, the landscape of intervention remains complex and ever-evolving. History shows a clear pattern of attempts, from direct government payments to voluntary buyouts and proposed stabilization programs, each with its own set of challenges and limited long-term success in fundamentally altering market dynamics. What remains constant is the dairy producer’s pursuit of resilience and profitability. Whether through farm diversification, such as the strategic growth of beef-on-dairy, or through collective industry efforts, the quest for stable margins and a sustainable future continues to drive innovation and adaptation.

Whole Milk is Back: The Dairy Farmers Who Witnessed History, and the Whirlwind Trip to Get There

Fri, 16 Jan 2026 22:24:38 GMT

What would you do if the White House called and asked you to get on a plane the next day to be part of a bill signing? For several dairy farmers this week, that whirlwind invitation became reality.

Nutrition shouldn’t be controversial. It’s common sense. #DrinkWholeMilk pic.twitter.com/le9vHOWXqs
— Dept. of Agriculture (@USDA) January 15, 2026

The occasion? President Donald Trump signing the Whole Milk for Healthy Kids Act into law, legislation aimed at giving students across the country access to whole milk in school lunches, a move the administration is calling “common sense” for both nutrition and parental choice.

“Whether you’re a Democrat or a Republican, whole milk is … a great thing,” Trump said during the signing, surrounded by farmers, legislators and a giant bottle of milk on the desk. “I’m delighted to sign the Whole Milk for Healthy Kids Act into law, which is very important for our farmers and maybe even more important for the people that drink milk.”

USDA Secretary Brooke Rollins highlighted the nutritional benefits, noting that the law allows schools to expand milk offerings beyond low-fat or nonfat options within just a few weeks.

“It’s a big announcement for our schools and our children,” Rollins said, emphasizing that the law empowers parents to make milk choices for their children without requiring medical exemptions.

🖊️ INTO LAW: President Donald J. Trump signs the Whole Milk for Healthy Kids Act, ensuring millions of children have access to high-quality milk in schools.

MAKE AMERICA HEALTHY AGAIN 🥛🐄 pic.twitter.com/VUI36QKgnU
— The White House (@WhiteHouse) January 14, 2026

For New Mexico dairy farmer Tara Vander Dussen, a fifth-generation dairy farmer and host of the “Discover Ag” podcast, she didn’t just experience the White House for herself; she actually attended the signing with her two daughters, making sure the experience was unforgettable.

“Oh my gosh, it was such a whirlwind,” Vander Dussen tells U.S. Farm Report. “I got the call on Monday, and within 24 hours, I needed to be in D.C. Thankfully, my mom packed everything in less than three hours so we could make it. I was on vacation with my husband, so it was a crazy scramble, but we made it.”

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A post shared by Tara Vander Dussen | New Mexico Milkmaid (@taravanderdussen)

Van Dussen says she almost turned down the invitation, as she was already on a trip and her girls were back at home in New Mexico, but she knew this was a once-in-a-lifetime opportunity she needed to make a reality for her family.

“Not only was it an incredible opportunity to meet the president, for the girls to meet him, but this is a huge win for dairy farmers across the country, a huge one for school-aged kids that depend on school lunches,” the New Mexico dairy farmer says. “And Trump, I think, said it best when he said, this is common sense. Why can’t kids have whole milk? And it’s not just a win for a whole milk; it’s also a win for parents’ choice. So before this bill was passed, if you wanted to have your kids have an alternative milk option, you had to have a sign to know from a doctor. Now parents can make that choice themselves.”

A really special moment with a fifth-generation dairy farmer, @TaraVanderDussn, and her two beautiful little girls yesterday (who already plan to be the SIXTH generation!!) — all headed to the White House for a big win for kids and real food. 🥛🐮🐄

With the Whole Milk for… pic.twitter.com/9RFoGbwDIC
— Secretary Brooke Rollins (@SecRollins) January 15, 2026

The White House signing included farmers from operations of all sizes. USDA highlighted attendees like William Thiele, who milks 40 to 60 cows in Butler County, Pa., and Jamie Witcpalek, of Pagel’s Ponderosa Dairy, LLC from Wisconsin, who manages 5,000 cows.

“This is such a monumental day in agriculture, not just for dairy farmers, but for all of agriculture,” Thiele said during the White House signing. “It helps producers, processors and these kids. It’s a perfect piece of legislation, a great day for America.”

Mr. President, I love Butler, PA too — and I’m always amazed by our hardworking dairy farmers across the Commonwealth 👍 pic.twitter.com/VbwuaL5muA
— Dave McCormick (@DaveMcCormickPA) January 15, 2026

U.S. Farm Report had the chance to talk to Thiele fresh off his trip to D.C. this week. He also emphasized the nutritional impact of the law, noting that the fat in whole milk is beneficial.

“I believe it was Secretary Brooke Rollins and Secretary Robert Kennedy [who] said yesterday about how important this is to a growing children’s diet and for brain health, brain function and physical health and all those things,” he says.

The signing marked the first bill of the year and quickly became a social media sensation, with images of Trump as the “Milk Man” and USDA posts celebrating the law’s passage. For dairy producers, it was a moment of recognition and celebration, a rare spotlight for an industry often overlooked.

Make Whole Milk Great Again.🥛 pic.twitter.com/l14FZhZDgw
— The White House (@WhiteHouse) January 15, 2026

This historic signing brings a personal element to legislative victories, a reminder that policy decisions can directly impact farmers’ livelihoods and children’s nutrition. For the dairy families who boarded planes at a moment’s notice, it was a trip of a lifetime and a reason to toast milk instead of debate it.

Trump Signs Whole Milk for Healthy Kids Act into Law

Wed, 14 Jan 2026 21:25:58 GMT

President Donald Trump has signed the Whole Milk for Healthy Kids Act of 2025 into law, clearing the way for whole and 2% milk to return to America’s school cafeterias for the first time in more than a decade.

Schools Regain Full Milk Options

The bipartisan legislation reverses Obama-era restrictions that limited federally supported school meal programs to fat-free or low-fat milk options. The bill passed both chambers of Congress unanimously in late 2025, signaling broad agreement around child nutrition, school meal flexibility and dairy market access.

Under the new law, schools may now offer a wider range of fluid milk choices, including flavored and unflavored organic or conventional whole, 2%, 1%, skim and lactose-free milk. Supporters say the expanded menu better reflects current nutrition science and aligns school offerings with what families commonly consume at home.

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A post shared by U.S. Department of Agriculture (@usdagov)

Farm and Dairy Groups Sing Praises

Farm organizations quickly praised the signing, calling it a practical policy win for both students and farmers.

“Farmers applaud Rep. GT Thompson and Sen. Roger Marshall for working to return whole milk to America’s schools, and to the president for signing the legislation today,” says Zippy Duvall, president of the American Farm Bureau Federation. “The commonsense, bipartisan bill ensures children will have access to important vitamins, protein and other nutrients while supporting dairy farmers who need access to expanded markets for their product.”

Dairy industry leaders emphasized that milk’s full nutritional profile was a key driver behind the legislation.

“Dairy farmers and their cooperatives couldn’t be more thrilled that whole and 2% milk is returning to school meals,” says Gregg Doud, president and CEO of the National Milk Producers Federation. “Dairy is a nutrition powerhouse that should be used to its fullest potential — and that means making it available in the same varieties families consume at home.”

Doud says NMPF is prepared to support implementation efforts as schools update menus and procurement plans.

“We are ready to help schools and USDA in any way we can as this important legislation is implemented, and we thank the Trump administration, our advocates on Capitol Hill, and everyone who has worked to make school meals better through increased access to dairy,” he says.

The International Dairy Foods Association also hailed the signing as a long-awaited milestone.

“The long wait is over! Whole milk is coming back to schools,” says Michael Dykes, president and CEO of IDFA. “This law is a win for our children, parents and school nutrition leaders, giving schools the flexibility to offer the flavored and unflavored milk options, across all healthy fat levels, that meet students’ needs and preferences.”

Dykes thanked a broad group of lawmakers for advancing the bill, including U.S. Rep. Kim Schrier and Thompson, and U.S. Sen. Peter Welch and Marshall, as well as congressional committee leadership involved in shepherding the legislation through Congress.

“IDFA is deeply grateful to President Trump for signing the Whole Milk for Healthy Kids Act into law,” Dykes says. “IDFA and our members stand ready to partner with USDA, states and school nutrition leaders to help schools offer the milk options kids prefer so more students can benefit from the 13 essential nutrients that milk provides.”

Schools could begin offering whole and 2% milk as soon as the next school year.

Whole Milk is Back! Congress Passes Whole Milk for Healthy Kids Act

Mon, 15 Dec 2025 21:08:05 GMT

At a glance:

Congress passed the Whole Milk for Healthy Kids Act, allowing schools to once again offer whole and 2% milk.
The legislation reverses a 2012 policy that limited school milk options to fat-free and 1%.
The bill now awaits the president’s signature, with implementation expected as early as the next school year.

Congress has approved the Whole Milk for Healthy Kids Act , marking a major shift in federal school nutrition policy and reopening the door for whole and reduced-fat milk in school meal programs. The legislation reflects growing consensus around the nutritional value of milk at all fat levels and underscores the impact of sustained, bipartisan advocacy.

“Today we will restore students access to a wide variety of milk options assuring students have the necessary nutrients to learn and to grow, says Rep. Glenn Thompson, R-Pa., a leading supporter of the bill since its introduction. “I have worked for a decade to restore whole milk to our school cafeterias, which have been limiting healthy choices for students, but that changes today.”

He emphasized the importance of choice in school meals, noting that whole milk is a key part of a balanced diet for students.

“Whole milk is an essential building block for a well-rounded and balanced diet, and students should have the option to choose the milk they love. I am proud that my bill, the Whole Milk for Healthy Kids Act, passed the House today and now heads to President Trump’s desk for his signature,” Thompson added.

The move has drawn praise from industry leaders, who say it reflects both the importance of milk in children’s diets and the power of sustained advocacy.

“It’s hard to overstate the significance of congressional passage of the Whole Milk for Healthy Kids Act, not only because it represents major progress in improving the nourishment of American schoolkids, but also because of what it says about how persistent, long-term effort can still bring bipartisan success in Congress,” says National Milk Producers Federation President and CEO, Gregg Doud.

If signed by the president, schools would once again have the option to serve whole and reduced-fat milk alongside the fat-free and 1% varieties currently allowed. Supporters say the added flexibility would better reflect what families purchase at home and align school offerings with current nutrition science.

A Long Road Back for Whole Milk
Whole and reduced-fat milk were removed from school menus in 2012 under nutrition standards set by the Healthy, Hunger-Free Kids Act, which aimed to reduce childhood obesity. Schools were limited to fat-free and 1% milk, and flavored milk was required to be fat-free. While intended to improve student health, the change coincided with a decline in school milk consumption and reduced choice for students.

Over the past decade, a growing body of research has shown that milk fat has a neutral or even positive effect on health outcomes. That evolving science, combined with changing consumer preferences, helped build bipartisan support for restoring flexibility in school milk offerings.

The bill’s passage represents the culmination of more than a decade of effort by dairy advocates, lawmakers and industry stakeholders.

“And now the day has arrived. We thank Chairman Glenn ‘GT’ Thompson of Pennsylvania and Representative Kim Schrier of Washington for their critical roles in championing the most recent version of this important legislation to the finish line and the many other congressional leaders who preceded them in their efforts to protect access to nutritious milk in schools,” Doud says.

A similar measure passed the House overwhelmingly in 2023 but stalled in the Senate. With Senate approval now secured, the legislation clears its final congressional hurdle.

Restored Choice for Schools and Students
The dairy industry emphasizes the collaborative nature of the effort.

“Dairy doesn’t succeed without tireless advocates on Capitol Hill, and it’s been an honor to work with these members and their staffs in this effort,” Doud adds.

With the bill now awaiting the president’s signature, attention turns to implementation.

“The next step, after a presidential signature, is implementation. We pledge our fullest support to federal officials and school districts across the nation to help with implementation of this important legislation. Congress made a positive difference today. We are thrilled to be a part of it,” Doud says.

While the bill does not mandate whole milk, it restores flexibility schools have not had in more than a decade. For students, it means access to the same range of milk options their families choose at home. For dairy farmers, it reopens a significant market, as school meal programs account for nearly 8% of all fluid milk sales.

Schools could begin offering whole and 2% milk as soon as the next school year.

Standing Up for Whole Milk by Sharing the Whole Story

Fri, 12 Dec 2025 15:12:24 GMT

Every now and then, amidst the never-ending lists of tasks and chores, you hear something that reminds you why you do it. Often finding herself surrounded by kindergarteners, Magdalene Gerst frequently hears comments like, “Oh, this is the dark brown chocolate milk. This is the really good stuff!”

It’s a cute quote, and it was fun to hear. It may have even been one of those “why we do it” moments, but it’s also part of a story that proves something has to change.

Gerst is a seventh-generation farmer from Richmond Farms Dairy, a 200-cow dairy in North Collins, New York. As a past dairy princess and mom of three, she has a knack for connecting with young kids about what she does and where their milk comes from.

During her visits to schools, Gerst has noticed an unfortunate trend. “Kids won’t even touch the one percent,” she says. “They can only get non-fat for lunch, and if a five-year-old can notice, it really says something.” At home, many kids are drinking two percent or whole milk. And when the milk at school tastes different, the kids don’t drink it, and they miss out on the nutrients dairy provides.

(Magdalene Gerst)

Seeing this part of the story play out time and again has given Gerst the motivation and message she needs to speak with the legislators who can help make a change. “We had our congressman out to the farm when he first got elected,” she recalls. “We talked to him about things that are important to us and just let him see what’s going on.”

More recently, Gerst traveled with the National Young Cooperators to Washington, DC. “We talked to our representatives about the key things, one being ‘Whole Milk for Healthy Kids,’” Gerst says. “That was an easy thing to talk about from being in the schools.”

(Magdalene Gerst)

From those experiences, Gerst has learned what works – and what doesn’t. “In the past, we’ve written letters,” she says. “I’m sure they get them but there’s no follow-through. But when we physically made an appointment and we’re sitting in their office, follow that up with a thank-you card and they’re gonna remember that connection.”

Since hosting the congressman on the farm, communication has opened up both ways. “You’ve got to set up that first connection. I like to keep the door open so they’re welcome to visit anytime,” Gerst says. “I’ll show them around and answer any of their questions.”

Gerst wears many hats on the farm, and she pulls from all of her experiences to make sure she has a good story to share with anyone she meets. On any given day, she could be managing embryo transfers, payroll, or working with the vet – and all with a toddler in tow.

(Magdalene Gerst)

For both legislators and kindergarteners, she says those real-life stories are key: “Letting them know what the day-to-day looks like, and letting them feel included,” she says. “Especially for the kids, they want to see pictures, or they want something physical they can touch. So I take a calf into the school. I take feed and let them make a trail mix – as we call it – but then teach them what that is.”

Several months after her visits to her kids’ schools, Gerst is still hearing those reaffirming comments like, “Did you bring chocolate milk today?” or “Are you gonna bring a calf again?”

Gerst feels strongly about bridging those gaps right from the beginning, instead of trying to correct misinformation. She loves seeing their faces light up and knowing she’s showing them something they will remember and share at home. “I love kids, so that makes it even more fun. We have a great story to tell, and if we don’t tell it, someone else is going to make up their own story to tell on us.”

Whole Milk Returns? Unanimous Senate Vote a Big Win for Schools and Dairy

Thu, 20 Nov 2025 21:49:04 GMT

A long-running push to restore whole and 2% milk to school cafeterias took a major step forward this week, as the U.S. Senate passed the Whole Milk for Healthy Kids Act by unanimous consent.

If the House follows and the president sign the bill, schools would once again have the option to serve whole and reduced-fat milk alongside the fat-free and 1% varieties currently allowed. Supporters say this would better reflect what families buy at home and align school offerings with current nutrition science.

“Restoring schools’ option to offer whole and reduced-fat milk will mean more schoolkids will get the essential nutrients they need,” says NMPF president and CEO Gregg Doud. “This commonsense legislation will help American children get back on solid nutritional footing.”

American Farm Bureau Federation president Zippy Duvall echoes that message, adding broader implications for both students and dairy producers.

“This is a win-win for kids and dairy farmers because the nutritional benefits of whole milk are now broadly known,” Duvall says. “By lifting the restrictions on whole and reduced-fat 2% milk in schools, kids have more access to important protein, calcium and vitamins. Because school milk accounts for almost 8% of fluid milk demand, it’s a significant market driver, too.”

Michael Dykes, president and CEO of the International Dairy Foods Association, also weighed in, highlighting the broader coalition behind the effort.

“The long wait is nearly over. We’re closer than ever to bringing whole milk back to schools. Today’s Senate passage is a watershed moment for children’s health and for the dairy farmers, processors, parents and nutrition advocates who have fought for decades to restore whole and 2% milk to school meals.”

The Senate measure is sponsored by senators Roger Marshall (R-Kan.), Peter Welch (D-Vt.), Dave McCormick (R-Pen.) and John Fetterman, (D-Pen.). Senate agriculture chairman John Boozman (R-Ark.), and ranking member Amy Klobuchar (D-Min.), led the committee in approving the bill by voice vote in June.

A Long Road Back for Whole Milk
Whole and reduced-fat milk were removed from school menus in 2012 under nutrition standards set by the Healthy, Hunger-Free Kids Act, aimed at reducing childhood obesity. At the time, schools were restricted to serving only fat-free or 1% milk, and flavored options had to be fat-free as well. While intended to improve student health, the change coincided with a noticeable drop in school milk consumption and left children without the milk choices most families rely on at home.

Over the past decade, research has shown milk fat, from skim to whole, has a neutral or even positive effect on health outcomes, prompting nutrition experts and policymakers to reconsider the restrictions. The shift in understanding has helped build bipartisan support for restoring school flexibility.

A similar measure passed the House overwhelmingly in 2023 but stalled in the Senate. With Senate backing now secured, supporters expect the House to act swiftly under the leadership of chairman GT Thompson (R-Pen.) and Rep. Kim Schrier (D-Wash.), who have championed the issue for years.

The Potential Market Impact
Beyond nutrition, the bill could meaningfully shift dairy markets. In 2024, the National School Lunch Program served 4.86 billion meals, with about 85% of students choosing milk, roughly 4.13 billion half-pint cartons. Redirecting even a portion of those servings to whole milk would substantially increase butterfat demand.

Farm Bureau economist Daniel Munch estimates if 25% of schools adopt whole milk, butterfat utilization would rise by about 18 million lb. annually under an all-skim baseline. At 50% adoption, that figure climbs to roughly 36 million lb., and at 75% it reaches 55 million lb. Even under more conservative assumptions, additional butterfat demand ranges from 13 million to 46 million lb.

“A near-universal shift to whole milk could divert the equivalent of 45 million to 66 million lb. of finished butter into fluid use each year, based on the Federal Milk Marketing Order yield assumption that 1 lb. of butterfat produces about 1.21 lb. of butter. That amounts to roughly 2% to 3% of total U.S. butter production, a significant reallocation of components from manufactured to beverage markets. This shift would come at a time when U.S. dairy farmers have already answered the call for more butterfat and would help capture greater value from that production in a market that often struggles to absorb the surplus fat,” he writes.

(Farm Bureau)

If passed, the Whole Milk for Healthy Kids Act could modestly tighten butter and cream supplies, increase Class I utilization, and lift overall blend prices. As more milkfat moves into school milk, the market would see a subtle but meaningful shift in how butterfat is absorbed and valued.

Restoring Choice for School Children
While the bill doesn’t mandate whole milk, it restores flexibility that schools haven’t had in more than a decade. For kids, it means access to the full range of milk options their families choose at home. For dairy farmers, it opens a meaningful demand channel in a program that represents nearly 8% of all fluid milk sales.

Should the House move swiftly and the president approve the bill, schools could begin offering whole and 2% milk as soon as the next school year.

Why Dairy Is Dominating: America's New Billion-Dollar Ag Success Story

Wed, 08 Oct 2025 11:33:04 GMT

The U.S. dairy industry is in the midst of a record-breaking boom — fueled by premium beef-on-dairy calves, historic investments in processing plants and surging demand for protein both at home and abroad.

Beef-on-Dairy: A Revenue Stream That’s Reshaping the Market

Dairy farmers across the U.S. aren’t just milking cows — they’re tapping into a lucrative side market. Record cattle prices are giving rise to “beef-on-dairy,” a crossbreeding trend that’s bringing in premium prices and reshaping the value chain.

“I think it is an enormous revenue stream for dairy farmers,” said Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF). “The number I hear is about $1,400 for that black day-old calf. As the old beef guy, I think that’s going to be there for at least another year or so — maybe more.”

The result, Doud says, is the dairy industry is “hitting on all cylinders,” as dairy producers capitalize on strong beef genetics and elevated cattle values to diversify income.

New Wave of Investment

At the same time, the U.S. is seeing a level of investment in dairy processing never before witnessed in American agriculture.

“It really is $10 billion — 2023, 2024, 2025, 2026 — in new dairy processing investment in the U.S.,” Doud said. “There’s nothing like it in the history of U.S. agriculture, of any commodity, anywhere in the world.”

Dairy’s $10 billion in investment in dairy processing over the next three years spans across the country.

(Ever.Ag)

According to Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), more than $11 billion is flowing into 53 new or expanded dairy manufacturing facilities across 19 states, from New York to Texas to Idaho. These projects are slated to come online between 2025 and 2028.

“Investment follows demand,” Dykes says. “It’s phenomenal — the scale and scope of what’s happening right now.”

Production Rising to Meet Global Appetite

Farmers are responding to those signals. USDA data shows U.S. milk production is up nearly 5% year over year, and the agency projects another 27 billion pounds of milk by 2034.

Exports have also surged, reaching a record $8.2 billion last year.

“I can’t tell you how many meetings I went to where people said, ‘We’re scared to death there won’t be enough milk,’” Dykes recalls. “I said, don’t fret for one moment — dairy farmers hear the market calling for milk. Milk will come.”

America’s Dairy Demand Hits Record Highs

Domestic demand is booming too. Americans are consuming an average 661 pounds of dairy per person per year — the highest ever recorded.

“Cheese is driving the bus,” Dykes said. “We’re eating about 42 pounds of cheese per person per year — and pizza has clearly contributed to that.”

But it’s not just cheese. Butter, yogurt, premium ice cream and even milk itself are seeing renewed strength.

“Milk has been trending downward for the last few years,” Dykes said. “But even last year, milk took a turn up — led by whole milk, high-protein milk and lactose-free options.”

The Protein Craze Powering Dairy’s Momentum

Behind this surge is one key word: protein.

“The demand for protein globally is unbelievable,” Doud says. “Everywhere I go, I tell people — we’re having a moment here on the dairy-side of the equation.”

Doud notes dairy’s protein-rich products — from cheese to whey — are meeting consumer demand both domestically and internationally.

“We’re up 2% this year in volume, 16% in value,” he says. “Global demand for dairy is rolling, and we are right in the hunt.”

Dykes agrees, pointing out the “protein craze” isn’t just helping beef and pork — it’s boosting dairy too.

“Most of the products that have ‘protein added’ are dairy-derived proteins, like whey from cheese plants,” he says. “Consumers globally cannot get enough protein. Dairy has a protein that’s highly digestible and fits perfectly with the health and wellness mood of this country. We’re even adding protein to ice cream.”

A Growing Industry with a Rural Footprint

The dairy industry’s impact stretches far beyond store shelves. Dykes says the U.S. now has 1,200 processing plants, employing 3 million people, generating $200 billion in wages and paying $83 billion in state and local taxes.

“These plants are going into rural communities — where the milk is produced,” Dykes adds. “That’s where the jobs and opportunities are being created.”

Texas, South Dakota and Kansas are seeing the largest waves of new investment, with New York emerging as a new processing hub.

Labor: The Industry’s Biggest Challenge

Even with growth on nearly every front, one major hurdle remains: labor.

“The administration is working on short-term solutions through the Department of Labor — mainly H-2A or seasonal programs,” Doud explains. “But that really doesn’t do anything for us on the dairy side because we need year-round help.”

He says lasting change will require Congressional action.

“We have to have Congress change the law,” Doud says. “House Ag Committee Chairman G.T. Thompson is working on this, but it’s a big lift. We always get stuck on the 60-vote issue in the Senate. We’ve got to make another run at this.”

Doud remains hopeful a political breakthrough could come — much like the immigration reforms of the late 1980s — to finally deliver a sustainable labor solution for dairy.

America’s Dairy Future

From booming exports to billion-dollar investments, the dairy sector is on a trajectory few could have predicted a decade ago. Industry leaders say if trade and labor challenges can be addressed, the U.S. will continue to cement its place as a global dairy powerhouse for years to come.

“We’re hitting on all cylinders right now,” Doud says. “And if we can keep that momentum going, there’s no limit to how far U.S. dairy can go.”

Dairy’s Balancing Act: Exports Boom, Beef-on-Dairy Surges, Milk Prices Drag

Fri, 03 Oct 2025 18:29:37 GMT

At World Dairy Expo in Madison, Wisconsin, the conversation among industry leaders highlighted the complex dynamics shaping today’s dairy and broader agricultural markets. From volatile milk prices to the rise of beef-on-dairy, and from export dependence to uncertainty with China, producers and analysts agree: resilience and adaptation are more critical than ever.

Milk Prices Under Pressure Despite Protein Craze

Milk prices are a few dollars lower than they were at this time last year. The slump is happening even as global demand for protein continues to climb.

“We have more cows, productivity per cow is rising, and butter fat prices have dropped,” said Dan Basse, founder and president of AgResource Company. “When dairy farmers see a profit, they expand their herds—it’s a cycle we’ve seen many times.”

While producers are benefiting from selling bull calves at higher prices, Basse noted that milk margins remain tough unless farms are operating at scale.

Domestic Demand Stalls, Exports Carry the Load

Mike North, principal at Ever.Ag, pointed to soft consumer demand as another factor holding milk prices back.

“We’re basically flat,” North said of domestic dairy demand. “Consumers aren’t going to restaurants like they have, and restaurant chains have had to push new value propositions to bring people in. Without that, demand is sour.”Exports, however, have hit record highs. North emphasized that without international sales, the U.S. dairy industry would be facing far worse price pressures.

Beef-on-Dairy Provides Major Boost to Farm Revenue

For producers like Ken McCarty of McCarty Dairy, one bright spot has been the rapid rise of beef-on-dairy, which has transformed once low-value Holstein bull calves into a significant revenue stream.

“We remember the days when we were trying to sell Holstein bull calves, two for five dollars, and you couldn’t get rid of them,” McCarty recalled. “Today, those sales can account for around 50% of our overall revenue.”

Basse predicted that strong beef-on-dairy calf prices will likely persist for at least the next two to three years, given the shortage of beef cow numbers in the U.S.

The Road Back to Higher Milk Prices

While beef-on-dairy is helping offset losses, producers remain eager for milk checks to rise. North stressed that recovery depends on stronger domestic demand and improvement across product categories.

“Butter is back to $1.60—we haven’t seen that since COVID—and cheese is about the same,” said North. “Until we get lift across all categories, we’re not going back to those $20-plus milk prices.”

He added that beef-on-dairy is effectively providing $3 to $4.50 per hundredweight in revenue to help fill the gap.

On-the-Ground Challenges: Labor and Rural Stability

Beyond markets, McCarty pointed to labor shortages and rural economic health as ongoing concerns.

“We don’t have the luxury of taking Christmas Day off,” McCarty said. “Accessing quality labor is a huge issue. But equally concerning is market volatility and what that means for our neighbors. When downturns hit, we worry about the long-term vibrancy of our rural communities.”

Trade, China, and Grain Markets Add More Uncertainty

The discussion also touched on broader ag markets. Basse expressed skepticism about any major new trade deal with China, noting that the country views the U.S. as an unreliable supplier.

“I’m doubtful of a deal with China,” Basse said. “It does tell us that we’ve had short coverings with China, I think we don’t need to think of China as the phase one agreement that was done before. That will not happen. This may be somewhat off some some modest deals, if you will. But I think when you think of China, it sees the United States as an unreliable supplier. “We came to them, beat them up at 18 and 19. They began paying back, you know, with a phase one deal. And then the Biden administration said. Nothing. And here we are negotiating again. So when I think about China, I am not optimistic they’re going to come back in a big way for U.S. corn, soybeans or other products.”

North added that without Chinese demand, soybean markets remain capped, especially as Argentina re-emerges as a competitive supplier with the elimination of its export tax. Meanwhile, bearish grain stocks reports continue to pressure corn markets.

A Balancing Act for the Future

Taken together, the dairy industry sits at a crossroads: global exports are providing a lifeline, beef-on-dairy is reshaping farm economics, but stagnant domestic demand, volatile grain markets, and persistent labor issues are limiting growth.

For dairy farmers like McCarty, survival means not just managing milk margins, but also navigating the ripple effects on their communities.

“We depend on our neighbors for feed, and they depend on us,” he said. “If rural America can’t stay strong, neither can the dairy industry.”

Senators Reintroduce DAIRY PRIDE Act to Crack Down on Misleading Dairy Labels

Wed, 30 Jul 2025 16:12:24 GMT

In a renewed effort to crack down on what dairy advocates call misleading and unfair labeling practices, a bipartisan group of U.S. senators has reintroduced legislation to prevent plant-based products from using dairy terms like milk, cheese and yogurt.

On Tuesday, Senators Tammy Baldwin, D-Wis., Jim Risch, R-Idaho, Susan Collins, R-Maine, and Peter Welch, D-Vt., announced the reintroduction of the Defending Against Imitations and Replacements of Yogurt, milk and cheese to Promote Regular Intake of Dairy Everyday Act, or DAIRY PRIDE Act, of 2025.

The bill requires the U.S. Food and Drug Administration (FDA) to enforce its own standards of identity for dairy products, which define milk and other dairy foods as being derived from cows, goats or sheep. Despite these standards, FDA’s 2023 draft guidance currently allows plant-based products made from nuts, seeds or grains to continue using dairy terms on their packaging.

“Wisconsin is known across the world as America’s Dairyland because our hardworking dairy farmers produce the best products with the highest nutritional value,” Baldwin says. “But for far too long, imitation dairy products made from plants and nuts have ridden the coattails of our dairy farmers. I’m proud to work with my Democratic and Republican colleagues to settle this once and for all.”

Risch adds, “Dairy comes from cows, goats and sheep, not almonds. Plant-based products’ misleading branding is a disservice to consumers and the farmers who dedicate their lives to making the nutritious dairy products Idahoans enjoy.”

The legislation would require FDA to issue updated guidance on enforcement within 90 days and report back to Congress within two years. It is widely supported by national and regional dairy groups, including the National Milk Producers Federation (NMPF), American Farm Bureau Federation, EDGE Dairy Farmer Cooperative, Wisconsin Cheese Makers Association, Midwest Dairy Coalition and Idaho Dairymen’s Association, among others.

Industry Applauds Legislative Action
Dairy organizations welcomed the bill as a move toward restoring fairness in the marketplace.

“When consumers buy products labeled as milk or cheese, they’re expecting delicious, nutritious foods made with the goodness of real dairy — not nuts, peas or beans,” says John Umhoefer, executive director of the Wisconsin Cheese Makers Association. “We applaud Senator Tammy Baldwin and the bipartisan Congressional coalition behind the DAIRY PRIDE Act.”

Gregg Doud, NMPF president and CEO, called FDA’s failure to enforce its own standards harmful to public health and confusing for consumers.

“It’s time to get rid of FDA’s 2023 guidance on labeling imitator beverages and replace it with straightforward policy that makes FDA enforce its own dairy standards of identity,” Doud says.

Continued Consumer Confusion
The argument central to the bill is one of nutritional transparency. Dairy groups contend that allowing non-dairy alternatives to use traditional dairy terms implies a nutritional equivalency that doesn’t exist.

“Medical groups, including the American Academy of Pediatrics, agree that it’s a problem when products mislead consumers by using dairy terms to imply that they provide dairy’s unique nutritional profile, when nothing could be further from the truth,” according to NMPF.

Heidi Fischer, EDGE Dairy Farmer Cooperative president, echoed that sentiment, noting the bill protects consumer trust and supports the integrity of dairy labels.

“We encourage timely action on this bill to prevent further misleading product names on our grocery store coolers and shelves,” she says.

Broad Bipartisan Support
In addition to Baldwin, Risch, Collins and Welch, the 2025 DAIRY PRIDE Act is also cosponsored by Senators Pete Ricketts, R-Neb., Mike Crapo, R-Idaho, Angus King, I-Maine, Kirsten Gillibrand, D-N.Y., John Fetterman, D-Pa., Roger Marshall, R-Kan., Tina Smith, D-Minn., Amy Klobuchar, D-Minn., and Mike Rounds, R-S.D.

Supporters argue that this broad coalition reflects the widespread impact dairy farming has on rural economies and nutrition policy alike.

“Idaho dairy farmers have worked hard for generations to provide real, safe and wholesome dairy products,” says Rick Naerebout, CEO of the Idaho Dairymen’s Association. “Allowing plant-based alternatives to use dairy terms misleads consumers and undermines the work of our family farms.”

If passed, the DAIRY PRIDE Act would require FDA to enforce its own legal definitions for dairy terms and issue updated guidance within 90 days, formally reserving labels like milk, cheese and yogurt for animal-derived products. The agency would also need to report back to Congress within two years, outlining its enforcement progress and demonstrating accountability.

New Bipartisan Bill Could Unlock More Milk Choices for WIC Participants

Fri, 25 Jul 2025 18:48:39 GMT

A new bipartisan effort in Congress is taking aim at current milk restrictions in the federal Women, Infants and Children (WIC) nutrition program, offering families greater flexibility and access to the nutritious milk options they already use at home.

This week, U.S. Representatives Glenn “GT” Thompson (PA-15) and Chris Deluzio (PA-17) introduced the Giving Increased Variety to Ensure Milk Into the Lives of Kids (GIVE MILK) Act, legislation designed to allow WIC participants over the age of 2 to purchase 2%, reduced fat or whole milk through the program.

Currently, WIC guidelines restrict milk purchases to nonfat or 1% options, a policy many argue is outdated with both consumer preferences and nutritional science.

“For more than a decade, whole milk has been wrongfully dubbed as unhealthy, but in reality, it provides a wealth of essential nutrients that are particularly important for children,” says Rep. Thompson. “Including whole milk in the WIC program will provide a healthy option for those families who find themselves depending upon these benefits for access to essential nutrition.”

Deluzio emphasizes the importance of giving families choice.

“Parents should have the freedom to choose what kind of milk they bring home to their families,” Deluzio says. “Yet the WIC program doesn’t allow parents to buy whole or 2% milk. I’m proud to co-lead the GIVE MILK Act with Congressman Thompson to fix this, giving the full range of milk options to families in Pennsylvania and across the country.”

Widespread Industry Support
The legislation is drawing strong support from leading voices in the dairy industry.

“WIC plays a vital role in ensuring that pregnant women, new mothers, infants and children can gain the nutrients needed for health and development,” says Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF). “Reduced-fat and whole milk are the most popular milk options in the U.S., so it’s common sense to allow these healthful, popular options to be purchased through WIC.”

Michael Dykes, DVM, president and CEO of the International Dairy Foods Association (IDFA), points to consumer data that supports the bill’s direction.

“Recent national polling conducted by IDFA and Morning Consult shows that 91% of parents serve their children whole or 2% milk at home,” Dykes says. “Yet current WIC rules don’t allow them to choose preferred options like whole and 2% milk — options that provide the same important nutrients as all fluid milk, including calcium, protein and key vitamins.”

Dykes praises the GIVE MILK Act as a “common-sense fix” that strengthens WIC’s reach and helps make the program more attractive to eligible mothers and children.

A Boost for Pennsylvania’s Dairy Industry
The bill also carries particular significance in Pennsylvania, where dairy is a major economic driver.

“We are pleased to see Representatives Thompson and Deluzio re-introduce the GIVE MILK Act,” says Bailey Fisher, federal affairs specialist at the Pennsylvania Farm Bureau. “Their leadership on this bill is especially meaningful, given how significantly the dairy industry contributes to Pennsylvania’s agricultural economy.”

“This crucial bill is another step toward offering children whole and 2% milk — some of the most wholesome and nutritious beverages available,” Fisher adds. “It’s a common-sense piece of legislation that will result in healthier children and help sustain our local family dairy farms.”

Looking Ahead
If passed, the GIVE MILK Act would mark a significant change for the WIC program, aligning it more closely with both consumer behavior and updated nutrition science. Supporters say it’s a long-overdue step toward ensuring families get to decide which milk works best for them.

Scoop of Change: U.S. Ice Cream Makers Pledge to Eliminate Artificial Colors by 2028

Mon, 14 Jul 2025 18:54:46 GMT

For generations, ice cream has been more than just a dessert, it’s been a centerpiece of celebration, a comfort food and a shared American tradition. Now, an industrywide pledge aims to keep it wholesome too. The International Dairy Foods Association (IDFA), in collaboration with more than 90% of U.S. ice cream makers, has announced a voluntary commitment to eliminate certified artificial colors from ice cream made with real milk by Dec. 31, 2027.

As part of this initiative, companies will phase out colors like Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5 and Yellow 6 from their ice cream and frozen dairy desserts. The move is in response to shifting consumer expectations and evolving state and federal policies, which are increasingly pushing for food to be made with more natural ingredients.

“I am proud of ice cream makers and dairy foods companies for stepping up for American families by making this voluntary commitment to provide ice cream and frozen dairy treats without certified artificial colors,” says Michael Dykes, DVM, president and CEO of IDFA. “Americans are passionate about their ice cream, and the IDFA Ice Cream Commitment will ensure wholesome, indulgent ice cream products made with real milk from American dairy farmers remain a special part of our lives as state and federal policies evolve.”

The announcement was made at USDA headquarters in Washington, D.C., in celebration of National Ice Cream Day, which falls on Sunday, July 20. Dignitaries including Secretary of Agriculture Brooke Rollins, Health and Human Services Secretary Robert F. Kennedy Jr., and FDA Commissioner Dr. Marty Makary joined the IDFA and ice cream enthusiasts to mark the occasion.

“I appreciate IDFA members for spearheading this new initiative and finding ways to promote President Trump’s Make America Healthy Again agenda,” Rollins says. “Each one of these endeavors helps families make better choices and pursue healthier lives.”

The initiative was recognized as a forward-looking step that aligns with broader public health goals and growing consumer demand for transparency and simplicity in food ingredients.

“I applaud the International Dairy Foods Association for stepping up to eliminate certified artificial colors,” Kennedy adds. “The American people have made it clear — they want real food, without chemicals. Together, we will make America healthy again.”

This pledge builds on other recent IDFA commitments aimed at schools, such as removing certified artificial colors from milk, cheese and yogurt by July 2026, and lowering added sugars in school milk offerings, all while preserving the nutritional value of dairy products.

The scope of the Ice Cream Commitment is broad, covering products made with real milk sold in supermarkets, convenience stores and even online. While the pledge does not apply to non-dairy items or in-house products made by small ice cream shops and restaurants, it signals a major step toward aligning retail dairy desserts with consumer preferences and state-level regulations.

“Today’s announcement represents a commitment by dozens of individual ice cream companies,” says Andy Jacobs, CEO of Turkey Hill Dairy and chair of the IDFA Ice Cream Segment Board. “From small independent companies to family-owned businesses going back generations, to large multi-national companies, we have all come together in a true industrywide effort to make these changes.”

America’s dairy farmers play a key role in making this transition possible.

“Today, all across this country, truck drivers are hauling thousands of tanker-loads of farm fresh American milk to hundreds of U.S. ice cream making facilities,” says Sam Schwoeppe, a dairy farmer with Prairie Farms Dairy. “In fact, one out of every 10 tankers of U.S. milk goes to making ice cream, supporting thousands of dairy farming families like mine. As we enjoy our favorite ice cream treats, please remember to thank a dairy farmer. They make it all possible.”

The love for ice cream in America runs deep. IDFA polls show 97% of Americans love or like ice cream, with the average American eating about 19 lb. per year. In 2024 alone, the U.S. produced roughly 1.31 billion gallons of it.

“None of this is possible without our incredible American dairy farmers,” Dykes says. “One out of every 10 gallons of milk produced on American dairy farms goes to making ice cream each year. Dairy farmers are essential to making ice cream great!”

For more information about the IDFA Ice Cream Commitment, including the full pledge, resources, and promotional materials, visit www.icecreamcommitment.org .

One Big Beautiful Bill Passes, What Does It Mean for Dairy Farmers?

Tue, 08 Jul 2025 15:00:00 GMT

After passing the “One Big Beautiful Bill act” (OBBB) last Thursday, the American dairy farmer has new legislation to hopefully help aid prices, offer tax relief and boost current insurance programs. Now that the dust has settled and the ink has dried, here is a closer look at what will affect the average dairy producer going forward.

The OBBB first and foremost extended the Dairy Margin Coverage (DMC) through 2031. This will ensure that producers have no gap in the insurance coverage that helps support income through the RMA. There are a few key changes made to make it a little more attractive to the producer such as changing the Tier 1 coverage limit from 5 million to 6 million pounds of milk per farm. As production per cow increases and farm sizes grow, this 20% increase was seen as necessary to support the farms that feed us. Another important change is farms can now use the highest production year from 2021-2023 as their baseline. There is also a 25% discount for producers to commit on multiple year enrollment on their premiums.

In an effort to ensure transparency for Class III and IV milk, both the House and Senate agreed that requiring a biennial USDA cost survey of dairy processors should be mandatory. The goal is to better align make-allowance estimates with timely real costs of producing cheese, butter and nonfat dry milk so the processor has less marketing power and help ensure the long-term pricing fairness.

As many dairy producers also have row crops, there are many benefits shared by extending the commodity and risk management programs like ARC and PLC as well. Higher payment caps (12.5%), higher ARC coverage (90%), higher reference prices and the ability to update base acres are a few of the highlights to help farmers.

There are many tax benefits on this bill as well. One key change is allowing farm implements to be deducted in full year one. Making it no longer a requirement to deduct large equipment purchases over several years. This puts the financial decisions in the farmer’s hands for how they want to expense large purchases. The bill also made the Section 199A deduction permanent to deduct up to 20% of business-related income as well as increasing the small business expense threshold.

For our future family farms, there are provisions that allow death tax exemptions which are now permanent. It increases the doubled Death Tax exemption which will aid in passing down farms and assets to the younger generation. While the new farmers are getting started, they have now increased the Beginning Farmer premium subsidy which helps cover a part of the cost of crop insurance and extended it from 5 to 10 years of aid.

On the animal health front, the bill ads verbiage that the USDA must spend $233 million per year on animal disease research and response efforts. This pumps significantly more money into the National Animal Disease Preparedness program as well as research in the vaccine production. With all eyes on screwworm lately, this is important for response time and veterinary preparedness to help diagnose faster as well as aid in the training of state responders on all diseases but highlights the importance of controlling threats such as new world screwworm.

While there are imperfections in all government programs, the aim of this bill was to help the American farmer and to support the family farm as well as the communities around them. We’ll learn more as time goes on about the good and the bad this bill brings but the intentions of the bill are clear and the benefits to the dairy farm, while subtle could be what makes the next five years a little easier on dairy farm economics.

Sarah Jungman is a commodity broker with AgMarket.Net and AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Sarah’s office is located in Winterset, Iowa and she may be reached at 515-272-5799 or through the website www.agmarket.net .

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What's Missing in the Big Beautiful Bill When It Comes to Agriculture?

Tue, 10 Jun 2025 17:04:35 GMT

The fate of President Donald Trump’s One Big Beautiful Bill is with the Senate. The 1,000-page bill includes nearly $4.9 trillion in tax breaks and budget cuts, and is also packed with priorities that cover agriculture . That includes one provision that will allow community banks to pass along lower interest rates to ag producers. However, not all of agriculture’s wants are in the bill.

American Farm Bureau Federation (AFBF) recently dug into the details of the massive bill being debated in Washington. According to the nonpartisan Congressional Budget Office (CBO), the House-passed version of the One Big Beautiful Bill Act would increase spending for agriculture-facing programs by $56.6 billion over the next decade. Of that increase, $52.3 billion is for enhancements to the current farm safety net, including higher reference prices for ARC and PLC, and $4.3 billion is for trade promotion, livestock biosecurity, research and rural school funding.

According to AFBF, the One Big Beautiful Bill Act would increase agriculture-facing programs spending by $56.6 billion over the next decade (fiscal years 2025–2034).

(American Farm Bureau Federation (AFBF) )

According to AFBF, here’s what the current version of the bill includes for farm bill provisions (Title 1, Subtitle B-Investment in Rural America):

Updates and funding for many core agriculture titles through 2031.
Enhancements to safety nets including ARC, PLC and Dairy Margin Coverage (DMC) through the 2031 crop year.
Increases to reference prices for major covered commodities between 11% to 21% under the farm bill provisions of the bill.
Addition of a reference price escalator mechanism beginning in the 2031 crop year, which AFBF says would increase reference prices by 0.5% annually on a compounded basis. That increase is capped at 115% of the original statuary value.
Permits for farmers to add up to 30 million new base acres
Updates to ARC by adjusting revenue guarantee and the payment cap beginning in 2025. That would increase the coverage threshold to 90% of benchmark revenue, and increase the payment cap of 10% to 12.5%.
Enhancements to the DMC program and an increase of Tier 1 coverage eligibility from 5 million pounds to 6 million pounds per farm.

Proposed changes to the safety net

(AFBF)

Changes to Conservation Programs
AFBF’s analysis of the reconciliation bill shows long-term funding authority for USDA’s major conservation programs will continue through 2031. That includes the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP) and Agricultural Conservation Easement Program (ACEP).

The levels are higher than what was included in the 2018 farm bill, but align with funding under the Inflation Reduction Act (IRA), making these programs permanent baseline versus new program expansions.

AFBF says the bill doesn’t retain all IRA-funded initiatives.

“For example, it rescinds $450 million in unobligated IRA funds that had been allocated for competitive forestry grants to non-federal landowners. According to the Congressional Budget Office, these adjustments collectively result in a net reduction of $1.8 billion in conservation spending over the next decade,” said the AFBF analysis. “The bill also renews smaller initiatives that were not funded in the last farm bill extension. This includes the Grassroots Source Water Protection program, which safeguards well water, and the Voluntary Public Access and Habitat Incentive program, which rewards farmers for opening land to hunting and recreation. In addition, the Feral Swine Eradication and Control Pilot Program, a vital initiative to combat over $1.6 billion in annual damages caused by invasive wild pigs, is extended with new funding through 2031.”

Focus on Trade
Another important element included in the House version of the Big Beautiful Bill includes establishing a new Agricultural Trade Promotion and Facilitation Program, which would be similar to Market Access Program (MAP) and Foreign Market Development (FMD), while also providing $285 million annually in permanent, mandatory funding through a separate account.

“Because the bill does not modify or replace MAP or FMD, which are typically funded at $200 million and $34.5 million per year, respectively, the new program effectively doubles USDA’s total trade promotion capacity,” said AFBF’s analysis.

National Pork Producers Council (NPPC) CEO Bryan Humphreys says the trade portion of the bill, as well as the tax provisions, are a “win” for livestock producers.

“We’re very pleased with what came out of the House version. We included in there were animal health priorities, some additional funding for MAP and FMD to promote our product internationally, and then, of course, the tax package was included in there on things like 179, bonus depreciation and estate taxes,” he says. “We are very pleased those were in there even if some of our other assets we need to be in the farm bill weren’t able to make it in there.”

Humphreys says the House version of the reconciliation bill includes funding for animal health priorities, including $233 million per year on animal disease prevention and response.

What’s Not in the Bill?
According to Humphreys, there’s one major priority that didn’t make it into the Big Beautiful Bill — and that’s provisions for Prop 12.

“We still need a farm bill to address Proposition 12 in California. At the end of the day, this is an issue that, as California continues to regulate outside of their borders, is not just a pork industry issue. It is an American agriculture issue,” he says. “We’ve been asking — along with the American Farm Bureau, Corn, Soy and others — for Congress to address this issue of California regulating farmers outside of their borders. And we still need that to be addressed.”

Humphreys says a farm bill is still needed to address Proposition 12 in California. But if a farm bill doesn’t happen this year, Humphreys says NPPC is exploring other options to do it.

“Even though there are other solutions for Proposition 12 and other potential vehicles out there that we’ll continue to explore with our friends on the Hill, at the end of the day, we still believe as American pork producers that America and the pork industry need a farm bill — a skinny version, a large version or whatever. We need to maintain that coalition not just for now, but for decades to come as well. We’re not ready to give up on that yet,” Humphreys says.

Renewable Energy In The Bill
Energy programs are another area of focus under the reconciliation bill. According to AFBF, USDA’s farm energy and biofuel programs are reauthorized through 2031 to spur renewable energy innovation in rural America. That would include the Biobased Markets Program, which is a program that promotes biobased products through federal procurement. It also addresses the Bioenergy Program for Advanced Biofuels, which provides payments to producers of biodiesel, cellulosic ethanol and other next-generation fuels.

Tax Provisions That Would Benefit Ag

Farm CPA Paul Neiffer calls the tax provisions within the House version of the bill “very favorable for agriculture,” rating them a 8 or 9 out of 10. Here’s why:

As of Jan. 20, farmers will have 100% bonus depreciation for the next four years
The Section 199A deduction that was at the 20% level will now be bumped up to the 23% level.
Cooperative deductions will still be included
Starting next year, Section 179 will increase to $2.5 million, up from $1 million
An increase in the gift tax exemption amounts to $15 million per individual and $30 million per couple, adjusted for inflation annually.

Neiffer say farmers who’ve built net worth through land or other assets, there’s a piece of the legislation that will also benefit them.

“The lifetime exemption starting next year will be $15 million, and it’s made permanent,” Neiffer says.

Lower Interest Rates for Ag Producers?

If the bill passes, agricultural producers could also see lower interets rates for loans. According to Jeff T. Kanger, president of First State Bank in Lincoln, Nebraska, there’s another provision that will allow community banks to pass along lower interest rates to ag producers and rural housing.

“The community banks have less tax exposure and can therefore pass along some interest savings to customers,” Kanger told AgWeb. “This provision is very important to a lot of our growers.”

It’s called the “Exclusion of interest on loans secured by rural or agricultural real property.” According to the provision text, it “allows for a partial exclusion of interest on certain loans secured by rural or agricultural real estate. Speciﬁcally, it allows for the exclusion of 25 percent of interest received by a qualiﬁed lender on any qualiﬁed real estate loan.”

What’s Next?
The Senate could roll out its version of bill later this week, which is expected to include changes from the House’s version that passed in May by one vote.

House Speaker Mike Johnson also said this week he still believes July 4 is a realistic target for passing President Donald Trump’s “big beautiful bill.”

A Big Step Toward Better Milk Options for Kids

Tue, 03 Jun 2025 21:54:41 GMT

The Senate Committee on Agriculture, Nutrition and Forestry took a key step toward expanding milk choices in schools today, advancing the Whole Milk for Healthy Kids Act by voice vote. The bipartisan legislation, which has already cleared a House committee, would allow schools to once again offer whole and 2% milk, options currently excluded under federal school meal rules in place since 2012.

The National Milk Producers Federation (NMPF) applauded the committee’s action, calling it a crucial move toward improving childhood nutrition and giving schools greater flexibility to serve nutrient-dense dairy products.

“The Whole Milk for Healthy Kids Act is about making informed, science-backed decisions that prioritize the health and future of our children,” says Gregg Doud, NMPF president and CEO. “We’re grateful that this common-sense legislation has received such strong support from both sides of the aisle.”

The bipartisan bill, sponsored by Sens. Roger Marshall, R-Kan., Peter Welch, D-Vt., Dave McCormick, R-Pa., and John Fetterman, D-Pa., would give schools the option to serve whole and 2% milk — choices that are currently not allowed under federal school meal guidelines established in 2012. Those rules restrict milk offerings to 1% and fat-free varieties.

If enacted, the legislation would mark a significant shift in school nutrition policy. Whole and 2% milk are the most commonly consumed varieties at home and have been shown to be more satiating for children while still delivering the same 13 essential nutrients, including calcium, vitamin D and high-quality protein.

“Passing the Whole Milk for Healthy Kids Act will allow more schoolkids to access essential nutrients in their diets, and that’s something everyone can get behind,” Doud adds.

Support for the legislation extends beyond the dairy sector. The American Farm Bureau Federation (AFBF) also welcomed the committee’s action.

“Farm Bureau appreciates the Senate Agriculture Committee’s markup and passage of the Whole Milk for Healthy Kids Act,” says Zippy Duvall, AFBF president. “This bipartisan legislation will allow schools to offer additional nutritious milk varieties to students. Whole and 2% milk, as well as flavored options, are wholesome choices for children and an important building block for a healthy, balanced diet.”

The legislation is rooted in efforts to address declining milk consumption in schools. Since the removal of whole and reduced-fat milk from school menus more than a decade ago, overall milk intake among students has dropped. Advocates say reintroducing these options could help reverse that trend, especially at a time when nearly 90% of Americans fall short of recommended dairy intake levels.

“By offering milk options that align with both modern nutritional research and student preferences, schools can increase milk intake at a critical time,” Duvall says.

The House of Representatives is also considering companion legislation, led by House Agriculture Committee Chairman GT Thompson, R-Pa., and Rep. Kim Schrier, D-Wash. That version passed out of the House Education and the Workforce Committee with bipartisan support earlier this year and now awaits floor action. A similar bill cleared the full House in 2023 but failed to reach the Senate floor before the session ended.

With momentum now building in both chambers, dairy organizations are urging lawmakers to bring the bill to a final vote. The National Milk Producers Federation continues to call on dairy advocates to contact their representatives and push for the bill’s passage.

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Stay Protected: Extended Dairy Coverage Brings Stability Through 2031

Fri, 16 May 2025 13:03:07 GMT

National Milk Producers Federation (NMPF) recently expressed strong support for the House Agriculture Committee’s reconciliation proposal, which includes vital provisions aimed at bolstering the agricultural sector and providing stability to farmers. The proposal is set to bring significant advancements, particularly for dairy producers.

“We commend Chairman GT Thompson and committee members for advancing important investments that will help support and create opportunities for dairy,” said Gregg Doud, president and CEO of NMPF. He emphasized the importance of working with lawmakers to support these provisions as they progress through Congress, noting the positive impact for the dairy sector from the House Agriculture Committee’s approval.

Extension of Dairy Margin Coverage Program
A major highlight of the proposal is the extension of the Dairy Margin Coverage (DMC) program through 2031. This extension ensures long-term risk management support for dairy producers. The DMC program is a voluntary risk management initiative that helps dairy producers manage the financial impacts of fluctuating milk prices and feed costs. By participating in DMC, dairy farmers receive payments when the difference between the All-Milk price and the average feed price, known as the margin, falls below the coverage level they choose. This mechanism is crucial in protecting farmers’ income from variations in milk prices and increases in feed costs.

Katie Burgess, director of risk management with Ever.Ag, supports this move, highlighting DMC’s strong track record of generating payouts when margins are squeezed.

Updated Production History Calculation
The bill proposes updates to the DMC production history calculation, allowing farmers to use their highest production year from 2021, 2022, or 2023. This adjustment aims to better reflect current production trends, offering farmers a more accurate and favorable baseline for future calculations.

Additionally, the legislation allocates funding for mandatory USDA dairy processing plant cost surveys, scheduled biennially. These surveys are designed to provide critical data that will guide future discussions on make allowances, ensuring the dairy industry remains competitive and informed.

Broader Legislative Package for Agricultural Support
Beyond dairy-specific measures, the proposal includes sustained funding for trade promotion, conservation efforts, agricultural research and animal health initiatives. It is expected to pass the House Agriculture Committee and get incorporated into a broader budget reconciliation package. This larger package encompasses essential tax policy extensions, such as the permanent adoption of the Section 199A tax deduction. This provision allows dairy cooperatives to return the deduction to their farmer members or reinvest in their operations.

Doud underscored the importance of getting policy right in this legislation, highlighting the enormous stakes involved in risk management and tax issues.

The reconciliation proposal represents a comprehensive effort to bolster the dairy industry, providing long-term support and opportunities for growth in an ever-changing economic landscape.

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A Big Win for Dairy: Senate Committee Advances Whole Milk for Kids Act

Fri, 04 Apr 2025 17:28:45 GMT

For years, students have had fewer milk choices in schools, with whole milk missing from cafeteria trays due to federal restrictions. Supporters of the Whole Milk for Healthy Kids Act say bringing it back could help improve childhood nutrition, increase milk consumption and reduce food waste.

On Tuesday, the Senate Committee on Agriculture, Nutrition and Forestry held a pivotal hearing to review the Whole Milk for Healthy Kids Act, marking the first formal Senate action on the bill. The hearing provided a platform for lawmakers and industry representatives to highlight the importance of whole milk in student nutrition, discuss its role in increasing milk consumption and address concerns about food waste in school meal programs. This event was a crucial step toward advancing the bill, which passed the House overwhelmingly in 2023 and is poised to do so again this year.

Dairy Industry Celebrates Bipartisan Support
The National Milk Producers Federation (NMPF) recently made an announcement celebrating the strong bipartisan support for the legislation as momentum builds in Congress.

“We know that Americans are underconsuming dairy products, and as we heard today, students have said they want the milk they are familiar with and that they find satisfying. For many students, that’s whole milk,” said NMPF President and CEO Gregg Doud.

Senator Makes Case for Whole Milk
Sen. Roger Marshall (R-Kan.), who helped introduce the Senate bill, reflected on the significance of whole milk in his own upbringing.

“I think about whole milk growing up, where my grandparents delivered milk to us two or three times a week, and it was just part of our diet … and how important whole milk is,” he said.

Marshall argued for the reintroduction of whole and reduced-fat milk into the National School Lunch Program back in January, emphasizing the impact of its absence on children’s health.

“Now, 13 years after its removal, nearly 75% of children do not receive their recommended daily dairy intake,” Marshall said. Access to milk in schools will prevent diet-related diseases and encourage nutrient-rich diets for future generations, he said.

On Tuesday during the hearing, Marshall underscored the personal importance of the bill.

“We all came to Congress with a reason, and I sat down on my first day and had a list of 10 things I wanted to do when I got here. Save the world, save Medicare, save Medicaid, balance the budget and get whole milk back in school. So, this is a great day for us to have a hearing on this, and I do appreciate the members of the Ag Committee coming here and having this discussion.”

He further tied the effort to broader nutritional goals. “The Make America Healthy Again movement, it’s about whole foods. And I think we could characterize whole milk as part of that MAHA movement, as well.”

Expert Testimony Highlights Nutritional Benefits
Keith T. Ayoob, associate professor emeritus of pediatrics at the Albert Einstein College of Medicine, provided further insight into the nutritional impact of milk in school meals. He said nearly 30 million children and adolescents participate in federal school meal programs daily, where milk serves as the No. 1 source of protein, vitamin D, calcium and potassium for children ages 2-18.

“A plethora of scientific literature demonstrates that consumption of cow’s milk provides children with better bone health, a lower risk for Type 2 diabetes and a lower risk for cardiovascular disease,” Ayoob said. “Specifically, milk provides 22% of the calcium, 40% of the vitamin D and 10% of the potassium in the American diet.”

Ayoob also addressed concerns about childhood obesity, noting that the removal of whole and reduced-fat milk has not resulted in weight loss among children.

“Since the removal of whole milk and reduced-fat milk in schools, obesity prevalence has increased. Clearly, milk was not the issue here. It wasn’t the cause and it’s not the cure,” he said. “Taking this a step further, if children are not drinking milk at school because the school doesn’t have the type of milk they prefer, one would postulate that they would lose weight. There’s no evidence this is happening or that it has happened for this reason.”

Giving Students the Choices They Want
Ayoob also emphasized the importance of offering milk varieties students will actually drink.

“No matter what type of milk is offered in school, none of it is nutritious unless students drink it — and they don’t drink it often enough,” he said. “The reason the Dietary Guidelines Advisory Committee considers calcium, potassium and vitamin D as ‘nutrients of concern’ is because the vast majority of Americans do not consume the recommended amounts of these nutrients. A glass of dairy milk has three of these four nutrients of concern. Missing that glass of milk at lunch is not likely to be made up during the rest of the day.”

Restoring whole and reduced-fat milk options in schools is a simple yet effective way to improve children’s diets, Ayoob said.

“Returning whole (3.25%) and reduced-fat (2%) milk to school meals and child nutrition by enacting the Whole Milk for Healthy Kids Act, along with low-fat (1%) and nonfat milk, including lactose-free versions, which are already in these programs, provides more milk options for children to choose from, which will make it easier for them to get all of the nutrients they need in their diets,” he said.

A Step Closer to Restoring Whole Milk in Schools
With momentum growing in both chambers of Congress, dairy industry advocates are hopeful that the Whole Milk for Healthy Kids Act will clear its final legislative hurdles, restoring a nutrient-rich beverage option to school cafeterias across the country.

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Water Woes, Labor Limitations and Regulatory Restrictions Put California's Dairy Industry At A Crossroads

Wed, 26 Mar 2025 16:51:19 GMT

The California dairy industry, renowned for its significant contributions to agriculture, is navigating a series of challenges that demand substantial adaptation to ensure future success. Water scarcity, stringent labor laws and complex permitting regulations top the list of challenges in the Golden State, the nation’s largest milk producer and home to 1.71 million milk cows.

Regulatory and Economic Pressures

Karen Ross, secretary of the California Department of Food and Agriculture, emphasizes the need to support the state’s farmers during these challenging times.

“What we would like to do is focus on smart incentives because, over the years, the cumulative effect of so many regulatory agencies is adding to the complexity … as well as the cost of compliance,” Ross said in a one-on-one interview with Farm Journal during the California Dairy Sustainability Summit. “We’re engaged in a very small pilot project with the state water board to see if it’s possible to cut through some of that [complexity], find ways to ease the burden [on producers] and educate agencies about how complex and costly regulations are.”

In addition to the regulatory challenges in California, Ross is concerned about market disruptions and stresses the importance of compensation strategies to ensure dairy operations can look to the future.

“Secretary Rollins has already made it clear they’ll offer help for farmers through these periods of disruption, and certainly [that was the case] in the first Trump administration,” she says. “What I’m most concerned about is the lost markets that still haven’t fully recovered and the opportunity costs lost. But [Rollins] has been very clear they want to make sure there’s compensation for growers to keep them in business.”

Water Woes

For Ryan Junio , owner of Four J Jerseys in Pixley, Calif., his primary concern is the states’ ongoing water crisis.

“As a dairy producer, this is an ever-growing challenge,” he says, reflecting the sentiments of his fellow producers in the state.

The California water issue is complex and long-standing. Geoff Vanden Heuvel, director of regulatory and economic affairs with the California Milk Producer Council, says some of the surface water that used to come into the Central Valley from northern California was diverted to the ocean to save fish in the early 1990s as part of the Endangered Species Act.

“California has overdrafted about 2-million-acre feet on average over the years,” he says. “We had a crisis in 2014 with a drought and the state decided to regulate groundwater, which they probably should have done 50 years ago.”

Labor Limitations

Layton, Calif., dairy producer Melvin Medeiros says the labor quality is tough and he doesn’t have a magic wand to fix it. In 2019, California began phasing in overtime for agricultural workers. In 2022, the state began requiring any agriculture employees working more than 8 hours a day or 40 hours a week receive overtime compensation.

“I do know when legislation gets involved, it turns into a mess,” Medeiros says. “We’re in that mess now and trying to figure out how to invest in this farm to make it more efficient and cut back on labor.”

David Lemstra’s story illustrates the transition faced by many. After searching for a decade, Lemstra and his family relocated from central California, where they had been established for more than 40 years, to South Dakota. Three pivotal factors — feed availability, easier permitting and processing capacity — led them to their new home where they now milk 4,000 cows and supply Agropur.

One benefit Lemstra has discovered in South Dakota is a more favorable labor market.

“Some locals say labor is very hard, but they don’t know how hard it can potentially get,” he says, appreciating the motivated workforce available in the region.

Regulatory Restrictions

Lemstra describes his family’s coordinated departure from the state as “death by 1,000 cuts,” citing the impact of long-standing political and resource management decisions. California’s overtime labor rule stands out as a considerable obstacle, especially when compared to South Dakota’s business-friendly environment.

As California continues to confront these pressing issues, the resilience and adaptability of its dairy producers are noteworthy. While some, such as Lemstra, found new horizons elsewhere, efforts are ongoing to streamline regulatory processes and stabilize one of the state’s most crucial agricultural sectors.

Mike Boudreaux, Tulare County Sheriff, who also spoke at the California Dairy Sustainability Conference in Visalia this week, expresses the need for the state and federal government to reduce the regulatory burden, thereby allowing greater industry control.

“Some of the issues many of you are facing, quite frankly, just explodes my mind when it comes to large sustainability, manure and different regulations,” he says. “The state of California and the federal government need to lift and reduce the amount of regulation the state can control for our dairy industry.”

Innovation and Sustainability Efforts

Despite the challenges producers continue to face, the dairy industry is making strides in sustainability. California boasts 238 dairy digester projects, capturing methane to create renewable energy sources and contributing to a reduction in greenhouse gas emissions.

“I’m very proud of the work we’ve been able to do on climate smart agriculture,” Ross says. “I love the fact that 24.3 million metric tons of CO2 equivalent reductions in greenhouse gasses are because of dairy digesters.”

When it comes to Highly Pathogenic Avian Influenza (HPAI), Ross is grateful for how the industry has handled the outbreak that started in September in California, six months after it was first reported in Texas and Kansas. As of late March, HPAI has impacted 755 herds in the state.

The path forward for California’s dairy industry relies on innovative strategies, supportive policies and the continuous perseverance of its producers. As the industry adapts, the focus remains steadfast on ensuring the vitality and sustainability of a sector pivotal to California’s heritage and economy.

Your Next Read — California Dreams: Transformation Through Innovation

RFK Jr.: Friend or Foe to the Dairy Industry?

Thu, 27 Feb 2025 15:49:11 GMT

Robert F. Kennedy Jr.'s confirmation as Secretary of Health and Human Services (HHS) has sparked a lively debate in the dairy industry. While some see his “Make America Healthy Again” stance as a win for dairy products, others worry about his controversial views on raw milk and ultra-processed foods.

The big question is — will RFK Jr. be a friend or foe to the dairy industry?

Dairy Employee Milking Parlor_Reuters

(Reuters Marketplace - DPA Pictures Alliance)

RFK Jr.: Catalyst or Controversial Figure?
RFK Jr. has emerged as a polarizing figure whose name is now associated with a broader call for re-evaluating nutritional policies. His willingness to challenge long-standing dietary guidelines — particularly the vilification of fat — has put him at the center of a broader push to rethink what’s truly “healthy.”

While some see his rhetoric as a much-needed shake-up that could benefit both dairy producers and consumers, others worry his controversial positions could lead to increased regulatory uncertainty and public health risks.

Newly appointed Secretary of Agriculture, Brooke Rollins, recently sat down with Farm Journal at the Top Producer Summit and shared her thoughts on RFK Jr.’s impact on agriculture.

USDA Secretary Brooke Rollins headlined the opening of the 2025 Top Producer Summit in Kansas City, Mo. Moderating the discussion was Kansas Senator Roger Marshall.

(Rhonda Brooks)

“I know there’s a lot of concern in the community, and I understand that with the confirmation of Secretary Kennedy, RFK Jr., at HHS. Some of the things he has said in the past, I know, if implemented, would be devastating for a lot of our farming community,” Rollins said. “I believe, though, and maybe it’s the optimist in me and in the relationship that he and I have built, I have found him to be extremely reasonable.”

Despite concerns about Kennedy’s past statements, Rollins remains hopeful that open dialogue and collaboration will help navigate any policy disagreements.

“I believe he was very truthful and sincere when he said we will work this together. Will we have disagreements? Probably so. But when we do, we just take them to the President,” she Rollins said. “There may be a few of those [disagreements] in the coming months and years, but I am more confident than ever before that he understands the implications — at least a lot of them — of what would happen if some of these more bold ideas of his would get implemented.”

While policy clashes are inevitable, Rollins sees Kennedy’s appointment as an opportunity to drive important discussions — particularly on issues such as childhood obesity and nutrition policy.

“I think what Secretary Kennedy represents is a new day in America,” Rollins said. “We have a chronic childhood obesity disease issue in this country, and his focus on nutrition is really important. I’m looking forward to working with him on things like the food stamp program and the nutrition programs out of USDA. We’re going to be forced to work together, whether we want to or not, on dietary guidelines and other things. There’s a lot of work ahead between the two of us, but I remain optimistic we will get to the right place for our ag community.”

Kennedy’s Stance on Raw Milk
Kennedy has said he only drinks raw milk , and his recent endorsement of raw, unpasteurized milk has raised eyebrows among public health officials and industry leaders. He has criticized the Food and Drug Administration (FDA) for its stringent regulations against raw milk. In fact, Kennedy has referred to the FDA’s regulations on raw milk as part of the agency’s “war on public health.”

However, the FDA and numerous health experts warn consuming raw milk poses significant risks, including exposure to harmful bacteria that can lead to serious illnesses. Promoting raw milk could potentially result in increased health incidents, tarnish the dairy industry’s reputation and invite stricter regulatory scrutiny.

His Case for Whole Milk
While Kennedy’s positions on raw milk have sparked debate, his views on nutrition align with those advocating for a return to full-fat milk. The push for whole milk in schools — a movement that recently saw bipartisan support in Congress — has gained traction, with many arguing milk fat is not the enemy it was once made out to be.

Whole Milk

(Canva)

“Fat in milk is not a health risk,” noted Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF) , during a recent Farm Journal Unscripted podcast, “The majority of both parties in the House of Representatives recently agreed we need to get whole milk and 2% milk back in our schools in this country. I mean, I can’t think of something that’s more make America healthy again than this topic.”

RFK Jr.’s support of whole milk comes at a time when fluid milk is experiencing a resurgence, signaling a shift in consumer preferences toward full-fat dairy products.

“Last year, for the first time in 30-some-years, fluid milk consumption is actually on the uptick in the United States,” Doud said. “I think this whole conversation [on whole milk] is causing consumers to turn a corner — and we have to help them understand whole milk is not a bad thing. It’s something us farm kids have known forever.”

A Return to Fat and Flavor?
For decades, dietary guidelines steered consumers away from fat. However, that narrative is shifting. RFK Jr. has positioned himself as an advocate for real, minimally processed dairy products, arguing foods such as butter and whole milk have been unfairly demonized for decades.

Butter

(Canva)

Supporters argue the full-fat versions of milk and butter not only taste better but also provide essential nutrients being lost in a sea of processed alternatives.

“We had this whole conversation decades ago that eggs and bacon and butter were bad for you. I don’t know how we got off on this, whether it was the dietary guideline conversation, but I think it got totally off track. I agree with [RFK’s] notion that we have to get this realigned again.”

This shift in perspective comes at a time when butter consumption, both in the U.S. and globally, is on the rise.

“Look at butter consumption in the U.S. and in the world — it has been a driving force for dairy,” Doud noted. “We have completely changed dairy production in the U.S. for more solids and more butterfat. The demand for it is there.”

The Limits of Kennedy’s Influence
While RFK Jr. is a strong advocate for rethinking nutrition policy, his ability to directly influence federal dietary guidelines is limited. Although his position at HHS allows him to push for changes, the authority to revise the nation’s Dietary Guidelines ultimately lies with USDA, not HHS.

Nina Teicholz, author of “The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet,” recently touched on this during a podcast with NMPF .

“There’s a lot of support for changing our nutrition policy in various ways, in ways I consider to be good,” Teicholz said. “I know there’s support for bringing whole milk back to schools, and I think that will be supported by Bobby Kennedy. But really his whole focus of control is going to be about drugs, healthcare, all of the domain of HHS. And the action on food and dietary policy is going to happen at USDA.”

Friend or Foe?

RFK Jr. Swearing In

(Photographer: Jason C. Andrew/Politico)

So, will RFK Jr. be a friend or foe to the dairy industry? The answer isn’t entirely clear. On one hand, his push for whole milk and full-fat dairy products aligns with what many in the industry have been advocating for, especially with growing support for bringing these options back into schools. On the other hand, his stance on raw milk and some of his broader views on nutrition policy could bring some challenges and uncertainty.

One thing is for sure though – RFK Jr. is shaking up the conversation about food, health, and nutrition.

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Iowa Secretary of Ag Weighs In on The H5N1 Battle, Vaccine Potential And Trade Sensitivities

Wed, 29 Jan 2025 13:49:17 GMT

Eggs continue to be a hot topic in the news as supplies are down, prices are up – and expected to go even higher – and consumers are understandably concerned.

At the center of the issue, fanning the on-going problem for poultry and dairy producers as well, is the Highly pathogenic H5N1 avian influenza A virus (HPAI H5N1).

AgriTalk Host Chip Flory broached the topic with Iowa Secretary of Agriculture Mike Naig on Tuesday.

At the heart of their conversation was a two-part question – how does the U.S. address the virus and, in the process, prevent any potential negative ramifications on trade?

Naig says the federal government is taking what he described as a three-legged stool approach to addressing the problem in both industries.

He described the three legs of the stool as being USDA’s Animal and Plant Health Inspection Service (APHIS), individual state animal health officials and industry.

“We work very closely with APHIS on this, meaning that they’re the ones that are providing the indemnity payments to producers. They are providing the disposal and cleanup assistance, but they must work in close collaboration with the states and state animal health officials,” Naig says. “And then, of course, you’ve got to have the third leg, which is industry.”

Biosecurity Measures
Naig noted that while the virus hit the poultry industry hard in 2015, it struck even harder in 2024.

“It’s not just in the Midwest or West, it’s been really all across the country now, affecting the egg laying industry, broilers and turkey production,” Naig says.

A significant positive, Naig says, is that biosecurity measures in the poultry industry appear to be preventing farm-to-farm spread. “The industry continues to get high marks for that, which wasn’t the case in 2015, which was so devastating because we didn’t have those strategies in place.”

“I believe, and our experience has been, that our USDA partners in this regard have been very strong,” he adds.

As Naig addressed the three-legged stool approach the U.S. is taking to addressing the virus in dairy, he says the three partners have more work to do.

“Frankly, there’s been a lot of criticism to share around the three legs, if you will, on how states have reacted, or how strongly USDA should have reacted, and what the industry is doing to try to contain that virus. So, I would say on the dairy side of things, it’s a different story (than in poultry). There’s a lot more work that’s yet to be done to even understand how that virus is impacting those (dairy) herds.”

What Is The Role For Vaccines?
Flory asked Sec. Nagy whether he believes a vaccine could be part of the solution to the virus or whether that would set up too many trade barriers. Flory also asked whether the virus is stable enough for a long enough period of time for a vaccine to be developed that would work effectively.

Both are questions the U.S. is grappling with as it tries to get ahead of the virus in dairy and poultry.

Earlier this month, Reuters reported the U.S. will rebuild a stockpile of avian influenza vaccines for poultry that match the strain of the virus circulating in commercial flocks and wild birds, citing the Department of Agriculture.

Naig told Flory that he believes a vaccine could be developed, with regard to poultry specifically, and its use negotiated into trade agreements.

“Those are challenges, and yet those are things that can be worked on and can be done, but it’s not easily done. I would want to put a flag there,” Naig says.

“I’m supportive of developing … we should try to figure out whether this can be an effective tool. If you’re in the broiler business or if you’re in the turkey meat business or if you’re in the egg business or maybe you’re in the genetics business, those are very different in terms of how you view that vaccine.”

Naig explains part of the different viewpoints on vaccine use have to do with the difference between poultry business segments.

“We need to recognize that those sectors are different in how they’ll view and potentially use a vaccine,” Naig says.

“Don’t treat them all the same. It’ll make way more sense for some than others.”

Naig did not weigh in on vaccine development for the dairy industry specifically.

The full conversation between Naig and Flory on AgriTalk is available below.

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House Ag Committee Leaders Hopeful New Congress Can Reinstate Whole and 2% Milk in School Meals

Tue, 07 Jan 2025 19:10:02 GMT

U.S. House Agriculture Committee Chairman Glenn “GT” Thompson (R-Penn.) and Ranking Member Angie Craig (D-Minn.) expressed support for the new Congress passing the Whole Milk for Healthy Kids Act in 2025 during remarks this weekend at the Pennsylvania Farm Show. Chairman Thompson is the lead sponsor of the bill, which Ranking Member Craig has cosponsored. The legislation would reinstate whole and 2% milk in federal school meals programs. Congressman Thompson is also a senior member of the House Education and Workforce Committee, which oversees child nutrition programs in the U.S. House of Representatives.

The House of Representatives passed the bipartisan bill 330-99 in December 2023, but the Senate did not take up the legislation before the previous Congress adjourned. In her remarks in Pennsylvania, Rep. Craig said she would “work together on this” with U.S. Sen. Amy Klobuchar, the new ranking member of the U.S. Senate Agriculture Committee.

“The Whole Milk for Healthy Kids Act enjoys widespread bipartisan support in Congress, and among parents, nutritionists and school meals professionals alike,” said Michael Dykes, D.V.M., president and CEO, International Dairy Foods Association (IDFA). “We’re so pleased to see congressional leaders working together in a bipartisan fashion to pass commonsense legislation that will improve access to nutritious milk options for our kids. IDFA urges the House and Senate to pass this legislation this year.”

Whole and 2% milk provide children with 13 essential nutrients for growth, development, healthy immune function, and overall wellness. Since whole and 2% milk were banned from school meals menus more than a decade ago, school milk consumption and meal participation have declined , meaning children are consuming fewer essential nutrients. This is especially concerning considering underconsumption of milk and dairy products is prevalent among school-aged children, where between 68% and 94% of school-age boys and girls are failing to meet recommended levels of dairy intake per federal guidelines.

Evolving Science Supports Whole and 2% Milk

Nutrition science has evolved in the past decade to show neutral or positive benefits of full-fat dairy foods such as whole milk, including less weight gain , neutral or lower risk of heart disease , and lower childhood obesity . Learn more about the importance of milk—especially whole and 2% milk—in the diets of healthy children at www.wholemilkforkids.com .

“It is time for Congress to allow dairy farmers and milk processors to serve their best products to students. Reinstating whole and 2% milk in schools will increase milk consumption, ensuring more children get the necessary nutrients they need to thrive every day. The same is true for allowing whole and 2% milk, cheese and yogurt varieties to be eligible for SNAP dairy nutrition incentives as part of the Farm Bill. IDFA urges the House and Senate to swiftly pass the Whole Milk for Healthy Kids Act and grant U.S. students the ability to access the nutritious milk options they prefer to drink,” said Dykes.

How FMMO Changes Could Actually Impact Your Milk Check

Fri, 15 Nov 2024 22:35:56 GMT

Producers will soon vote on milk marketing reforms that will raise the price of milk we drink. The USDA recently released a final decision on the amendments for on each of the 11 Federal Milk Marketing Orders.

This reform is part of the modernization of the Federal Milk Marketing Orders the dairy industry has been asking for and it’s been a couple of years in the making. The recommendations are part of USDA’s administrative rule making process. If passed by producers, it would eliminate Congress from having to include order reform in the new farm bill and hopefully provide fairer pricing.

USDA has announced that the amendments to the final recommendations for the Federal Milk Marketing Orders are minor. However, the overhaul of the pricing system by USDA stands to have a significant impact on what producers receive for milk. The biggest change in the overall proposal is in Class I formula to use the higher of the Class III or Class IV price as the base price mover.

“That higher of in terms of that Class I price is a pretty big change because right now we are at an average of the two with an added 74 cents, so this will change how that Class I price is calculated,” says Erica Maedke, Vice President of Insights, EverAg

She says component pricing would change, allowing producers to get paid more for fat and protein in the milk, plus the proposal updates make allowances.

“We’re all living with a lot of inflation that we’ve seen over the last couple of years,” Maedke adds. “Dairy processors are not immune to much of that inflation, whether it’s wages, packaging, borrowing costs. So, the make allowances in the formulas are increasing for all of the dairy products which will provide more money to help dairy processors cover their costs.”

And there’s a major structural change in the Class III formula away from using the average of both cheese blocks and barrels for pricing.

“The big change is to take out the barrels, so Class III pricing will be based only on block prices,” Maedke says.

Finally, USDA created a special pricing category for extended life beverages.

She says USDA estimates the overall cost increases on Class I milk will be over $4 billion but the impact per operation will vary based on their location and processor.

“The general expectation is that all dairy producers will see an increase in their baseline minimum prices. Now if that actually shows up on their check depends upon their milk buyer and if that pricing flows through,” Maedke says.

As far as the impact on consumers, International Dairy Foods Association analysis suggests that the average gallon of milk will only increase by 11 cents.

If passed the rules go into effect in the second quarter of 2025.

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