ADC hosts annual meeting

The American Dairy Coalition, which focuses on federal dairy policy, met virtually this December to wrap up 2025 and look ahead to 2026. GT Thompson, chair of the House Ag Committee, opened the session.

“It’s an exciting time for dairy,” said Thompson. “A lot of good things are happening. We will be passing the Whole Milk for Healthy Kids Act of 2025.”

The bipartisan, bicameral act was introduced by Senators John Fetterman (D-PA), Peter Welch (D-VT), Roger Marshall (R-KS) and David McCormick (R-PA) and received support from the American Farm Bureau Federation and numerous other ag organizations. The act allows schools that participate in the National School Lunch Program to offer flavored and unflavored whole, reduced fat, low-fat and fat-free fluid milk and lactose-free fluid milk along with non-dairy beverages that meet nutritional standards established by USDA.

“This will restore the option of whole milk and flavor in our schools, which is long overdue,” said Thompson. “It’s also important for dairy farmers and our rural economy.”

Thompson estimates that two generations of milk drinkers were lost when whole milk was removed from schools. The nutrition program includes continuing incentives for milk consumption, which Thompson said will help create demand for milk.

“We’re going to need everyone to lean on school boards,” said Thompson. “Some [boards] will choose not to pay a few pennies more for whole milk. It’s effective when people come to meetings and make requests and good arguments about why kids should have the option for whole milk. We lost a lot of local businesses when we lost dairy farms, and when those businesses left, school districts lost tax revenue. If they want the tax revenue back, they may have to spend a few pennies more on a half pint of whole milk. It’ll be good for the kids and good for budgets.”

Thompson discussed Dairy Margin Coverage (DMC), which is driven by the national prices of corn, alfalfa and soybeans. “We were working with prices that go back to 2012,” he said. “We modernized that and expanded how much a dairy farmer can insure from five million pounds to six million pounds.”

Reworked fiscal policies will benefit dairy farmers. “We’ve corrected what I call the death tax,” said Thompson. “About 97% of farms will be exempt from the death tax. In Farm Bill 2.0 under Rural Development, there are increased loan limits for borrowing.”

Thompson explained the importance of increased loan limits: When farmers look at farms or acreage to purchase, in many cases, by the time they return to their lender, the acreage is sold. Under 2.0, farmers will be able to obtain faster pre-approval and not lose the opportunity to purchase a property.

Staffer Karl Anderson, from the office of the U.S. Senate Ag Committee Chair John Boozman (R-AR), said Boozman is supportive of Thompson’s efforts to improve foreign worker programs.

“We look forward to seeing the discussion draft and comments,” said Anderson. “We’re also interested in hearing [dairy farmer] comments on the draft and whether it addresses the needs of the dairy industry.”

Anderson said the Department of Labor has issued an interim final rule revising the methodology for determining adverse effect wage rate. “There will now be state-level data,” he said. “It also allows adjustment for employers who are providing housing. It just took effect October 2, but we’re optimistic it will help address some of the issues involved in H-2A and create a more sustainable cost structure for producers.”

Boozman staffer Kate Covington noted significant investment in animal health programs. Covington also mentioned the acquisition of $9 million for mandatory product cost and yield surveys, which help drive transparency.

Covington said trade is a priority for this administration, and Boozman’s office has been working to determine what’s needed in various markets, with dairy at the top of the list. She urged dairy producers to keep in touch with their state legislators and the ADC.

Ryan Yates, with AFBF Government Affairs, noted that 2025 was a fast-paced year in agriculture. Yates said farmers will benefit from tax changes in the One Big Beautiful Bill, including several permanent provisions that will provide long-term dividends for producers and ag businesses.

“We received important wins for the farm safety net,” said Yates. “Improvements to Title I (crop commodity programs) and Title XI (crop insurance) provided significant boosts. Many priorities that Farm Bureau members highlighted were addressed in the OBBB.”

Yates also noted significant regulatory wins, especially regarding issues around the Waters of the U.S. (WOTUS) rule. The EPA has entered a WOTUS proposal that will provide long-term certainty for agriculture.

Yates then discussed the vulnerabilities and challenges of the H-2A program. “The program doesn’t work for everyone,” he said. “Dairy’s needs for year-round labor are unique, and we want to make sure the Department of Labor looks at further changes and improvements to H-2A.”

He added that significant statutory changes are necessary to create year-round work.

“We have some opportunities,” said Yates. “Much has been done by this administration to elevate trade. Farm Bureau isn’t thrilled about tariffs, but the president has been very clear that he wants fair deals for American businessmen and women, and tariffs are the tool of choice. If we can secure deals, increase market access and decrease tariffs, American agriculture will be more competitive.”

Regarding the USMCA (U.S.-Mexico-Canada-Agreement), Yates reminded dairy farmers that Canada and Mexico are our top two trade partners, and access to Canadian markets is critical. The relationship creates a new opportunity to work on profitable deals and create more market access among Canada and Mexico. Negotiations have begun and will move forward.

The Farm Bill is another priority for AFBF. The bill is being extended one year at a time and is now on its third one-year extension. Yates is hopeful Chair Thompson and the team can secure a multi-year deal with a bill that meets the needs of American agriculture.

“If we look at ways to decrease impacts of inflation, lower costs for equipment, labor, fertilizer, seed and chemistries and commodity prices continue to go up, hopefully we can right the economy in a way that will provide long-term resilience,” said Yates. “This takes long-term policy wins and increased demand for American-grown products domestically and abroad.”

Yates believes no farmer wants to farm for a government check. “They want to farm for the market,” he said. “With the [current] ag economy, payments and federal intervention will be part of the short-term solution.”

by Sally Colby