The U.S. Department of Agriculture is changing how dairy checkoff funding can be used, with Agriculture Secretary Brooke Rollins saying the department is ending the use of mandatory dairy checkoff funding for environmental, social and governance initiatives.
The change is intended to refocus the National Dairy Checkoff on its traditional purpose: building demand for dairy products, supporting dairy farmers and funding research and promotion activities that benefit the industry.
Dairy Checkoff Funding Faces New Direction
The National Dairy Checkoff is funded through a mandatory assessment of 15 cents per hundredweight of milk produced by dairy farmers. Those funds support programs designed to promote dairy products and conduct research intended to strengthen the industry.
Under the changes announced by USDA, mandatory checkoff dollars will no longer be used for ESG-related initiatives. The department says the move is intended to ensure producer-funded activities remain focused on dairy promotion and research.
For dairy producers, the checkoff represents a direct financial contribution tied to milk production. The program has long been used to support efforts aimed at increasing demand for milk and dairy products in domestic and international markets.
Focus on Dairy Promotion and Research
USDA says the updated approach will place greater emphasis on the original mission of dairy checkoff programs.
That includes activities focused on promoting dairy consumption, developing new markets and supporting research that can benefit dairy producers. The department says the changes are designed to better align producer-funded programs with its priorities.
The announcement comes as dairy producers continue to navigate changing market conditions, production costs and consumer demand. How checkoff dollars are directed can have implications for the types of research, marketing and promotional efforts receiving industry support.
The USDA’s decision also puts additional attention on how mandatory producer-funded programs are used and the priorities guiding those investments.
For more details on the changes and the issues affecting dairy producers, listen to the accompanying audio report.