Legislation Would Require Mandatory Reporting Of Dairy Processing Costs Every 2 Years
U.S. Senator Kirsten Gillibrand and U.S. Senator Susan Collins (R-ME) introduced the Fair Milk Pricing for Farmers Act. This bill would require manufacturers to report dairy processing costs every 2 years, which would help dairy farmers make sure that their prices accurately reflect the costs of production.
“New York dairy farmers deserve to be paid a fair price for their milk, and they need a milk pricing system that they can count on,” said Senator Gillibrand. “Requiring manufacturers to report dairy processing costs on a biennial basis will give dairy producers, processors, and cooperatives the data they need to ensure that their prices accurately reflect the costs of production. After successfully championing dairy pricing reforms in the last Congress, I look forward to supporting New York’s dairy industry by passing this vital bipartisan bill.”
“Maine’s dairy farmers work hard to produce high-quality milk, but they often don’t have clear information on how processing costs affect the prices they receive for their product,” said Senator Collins. “This bipartisan bill would increase transparency across the dairy industry by requiring processors to report the costs of turning raw milk into products like cheese, butter, and yogurt, giving farmers the information they need to advocate for fairer pricing.”
Representatives Nick Langworthy (R-NY) and Joe Morelle (D-NY) introduced companion legislation in the House of Representatives. The bill is endorsed by the New York Farm Bureau, National Milk Producers Federation, Northeast Dairy Farmers Cooperatives, and International Dairy Foods Association.
“Volatility in the dairy market causes uncertainty for farmers and consumers alike, leading to unfair prices for both. It’s critical we take action to ensure everyone receives the fairest price possible, which is exactly what this legislation seeks to do,” said Congressman Joe Morelle. “By giving farmers additional confidence in the dairy pricing system, the Fair Milk Pricing for Farmers Act will help create more stability in the dairy market and support my home state of New York’s proud history of dairy production. I’m proud to introduce this bill alongside Senator Gillibrand, Congressman Langworthy, and Congressman Van Orden, and I look forward to working with them to see it passed into law.”
“Creating stability in the dairy market is one of the most important things we can do to protect dairy farmers and ensure that Americans have access to affordable, nutritious dairy products,” said Congressman Nick Langworthy. “New York is one of the top producing dairy states in the nation, and the 23rd Congressional District is home to many multigenerational dairy farms who are already struggling to keep their operations going. This legislation requires the USDA to stay up to date with market allowances and ensure fair milk pricing that truly reflects the costs our dairy processors are facing. I’m proud to partner with Senator Gillibrand and my colleagues in the House on this important legislation to protect our dairy industry.”
“We support the Fair Milk Pricing for Farmers Act because it would establish mandatory audited surveys as they relate to ‘make allowances.’ These audits would be a far better indicator of actual costs than current estimates, which are based on voluntary plant participation,” said David Fisher, President of the New York Farm Bureau. “We thank Senators Gillibrand and Collins for prioritizing the needs of farmers and understanding the challenges they face every day.”
“We thank Senators Kirsten Gillibrand, D-NY, and Susan Collins, R-ME, for once again writing bipartisan legislation to require USDA to conduct mandatory dairy manufacturing cost surveys every two years,” said the National Milk Producers Federation. “Regular studies on the costs of processing raw milk into manufactured dairy products would make future dairy pricing conversations more accurate and based on better information, allowing future adjustments to reflect market conditions. We look forward to working with the bill’s sponsors to enact it into law this year, as soon as possible.”
“Timely authorization for regularly updated cost of processing surveys will provide dairy processors and producers the transparent data to ensure that the Federal Milk Marketing Orders accurately reflect ‘make allowances’ for manufacturing dairy products,” said Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association. “This is critical to ensuring more accurate milk pricing, supporting continued investment in dairy, fostering innovation to meet consumer preferences, and driving overall demand for milk. IDFA is grateful to Senators Gillibrand and Collins for their leadership to advance this issue on behalf of the entire dairy industry.”
“The Northeast Dairy Farmers Cooperatives (NDFC), representing dairy farmer families in New York and New England, supports the Fair Milk Pricing for Farmers Act,” said Northeast Dairy Farmers Cooperatives. “We commend Sens. Gillibrand (D-NY) and Collins (R-ME) for their prodigious leadership in introducing this legislation, which will empower the USDA to conduct mandatory, auditable surveys every two years. This will ensure accurate cost data to stabilize dairy programs and support systems.”
Senator Gillibrand has long been a champion for fair dairy pricing. Last year, she successfully led a bipartisan group of 13 senators in calling on the USDA to restore the “higher of” Class I pricing formula through the Federal Milk Marketing Order system to fairly compensate dairy farmers, which USDA did in November 2024. In early 2023, Senator Gillibrand reintroduced her bipartisan Dairy Pricing Opportunity Act, which would empower dairy farmers to be key players in reviewing proposals that could change Class I milk pricing by requiring the USDA to hold national hearings to review Federal Milk Marketing Orders. In September 2022, she called on the U.S. Government Accountability Office (GAO) to evaluate the workability of the federal milk pricing system. In September 2021, while chair of the Senate Agriculture Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security, she held a hearing to address volatile milk pricing and explore the need for Federal Milk Marketing Order system reforms.
###