Dairy Together Calls For Growth Management in Farm Bill

Dairy farmers have been struggling through boom and bust price cycles for decades. The word “crisis” has become so familiar in farm country that it hardly registers alarm anymore. In recent years, dairy news headlines have been dismal as a flood of milk on the market contributed to five years of depressed and volatile milk prices that eroded the quality of life for farmers across the country. Over the last decade, the USDA recorded the loss of roughly 17,000 dairy farms. Many of these farms have been driven out by government policies and industry practices that favor mass production of commodities over family farm viability.

In advance of the U.S. House Agriculture Committee’s Farm Bill markup, the national Dairy Together Coalition, is calling on members of the Committee to address the needs of the country’s small and mid-sized dairy farmers. 

FAMILY DAIRY FARMS ARE DISAPPEARING

Dairy Together is calling for real solutions to address the hardships that small and mid-sized dairy farmers are facing. Again in 2025 we have seen a major loss of small and mid-sized dairy farms. Losing the strong engines that are family dairy farms is devastating for the social and economic fabric of farm families and rural communities. Dairy farmers have been struggling through boom and bust price cycles for decades. In recent years, dairy news headlines have been dismal as a flood of milk on the market has contributed to five years of depressed and volatile milk prices. Just since 2017, the United States has lost 40% of its dairy operations and 60% of the U.S. milk supply is now produced on farms with over 2,500 cows(1). Between extreme consolidation, low milk prices, and high input costs, small and mid-sized family farmers can’t compete. 

SAVE FAMILY DAIRY FARMS BY ADDRESSING OVERSUPPLY

Small and mid-sized dairy farmers need fair milk prices that actually cover farmers’ costs of production. A system that addresses the oversupply of milk is needed. Federal dairy policy must support fair, stable, and predictable milk prices for farms of all sizes. If Congress fails to enact meaningful dairy market reform, the traditional family farm will soon disappear from the agricultural landscape, putting our food security, environment, and rural economic health at risk.

The Whole Milk for Health Kids Act of 2025 will ensure that more butter fat enters the market through school food service and increases access to a nutritious, wholesome beverage option for American’s children. While the bill may eventually increase demand for dairy products, it does not do enough to effectively address dairy oversupply in our Country.   

Oversupply is a symptom of the dairy consolidation problem. Farmers have no choice but to get big or get out due to chronically low milk prices and rising input costs. Low prices, unpredictable volatility, and skyrocketing input costs leave farmers with few options. Many dairy farmers increase the size of their herds in order to ramp up production as a way to make up for low milk prices. The shift towards increasingly larger dairy herds is only contributing to the issue of low prices by glutting the market with more milk. Farmers should not have to get big or get out. Family dairy farms should be able to stay small and still succeed. 

Through new Federal Milk Marketing Order (FMMO) reforms that were established in June 2025, dairy processors, like cheese and yogurt plants, received a make allowance increase. The make allowance is a fixed credit that the processor deducts from the amount that is paid to the farmer for their milk in order to cover the costs associated with converting raw milk into dairy products. Higher make allowances translate to lower milk prices for farmers, with no relief in sight. A recent American Farm Bureau Federation analysis shows that farmers lost more than $337 million in combined value due to the processors’ most recent make allowance increase. 

Policies that address oversupply are urgently needed to take the foot off the gas of milk production and halt family dairy farm closures. A better pricing system that supports fair prices for family dairy farms and does not necessitate exponential herd growth is necessary now. A fair pricing system would moderate the glut of milk on the market and allow the market, not taxpayers, to provide a better price. Farmers would rather get a fair and viable market price, rather than depending on taxpayer-funded subsidies. 

The upcoming Farm Bill must ensure fair, stable, and predictable milk prices for farms of all sizes. Dairy Together calls on Congress to establish a mandatory program for managed growth, based on market demand and price stability in order to rebuild a viable dairy economy for family farmers and rural communities.

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(1) 2022 USDA Census for Agriculture