Senate Dairy Provisions Praised by NMPF for Strong Support

NMPF Urges Quick House Action on Dairy Focused Bill

The National Milk Producers Federation (NMPF) has expressed strong support for new dairy-related provisions included in a Senate reconciliation bill aimed at strengthening U.S. farm policy. With the July 4 recess approaching, NMPF is urging quick final approval by Congress.

“These provisions offer key opportunities for the dairy sector,” said Gregg Doud, NMPF president and CEO. He emphasized the importance of swift action to ensure the proposed benefits reach farmers and cooperatives soon.

The bill includes a renewal of the Dairy Margin Coverage (DMC) program through 2031. It also updates the DMC production history to reflect the highest production year from 2021, 2022, or 2023. Producers who lock in coverage for the full term can also receive a 25% premium discount.

To ensure better data for decision-making, the bill mandates USDA dairy processing cost surveys every two years. This data will help guide discussions on make allowances for dairy processors.

Another important change is the integration of Inflation Reduction Act conservation funds into the baseline farm bill budget. This move secures long-term support for programs like the Environmental Quality Incentives Program (EQIP).

Additional measures include new trade promotion funding, which has shown a high return on investment, and increased funding for animal health programs, especially for diseases like H5N1.

The bill also includes the permanent extension of the Section 199A tax deduction, which supports dairy cooperatives by allowing them to pass savings to farmer members or reinvest in infrastructure.

NMPF is grateful to key leaders from both the Senate and House, including Agriculture Committee and Finance Committee chairs, for advancing this critical legislation supporting U.S. dairy farmers.