A coalition of 87 agricultural, rural, processor and labour organisations has sent a joint letter to congressional agriculture leaders demanding swift committee action on the Milk from Family Dairies Act, eDairy News reports.

Key points:

  • the bill would set minimum farmgate milk prices based on herd size and local production costs;
  • it would also create a dairy market stabilisation programme with production volume allowances;
  • the number of US dairy farms fell from about 200,000 in 1980 to around 23,600 in 2025;
  • the National Milk Producers Federation opposes the bill.

A call for hearings

Coordinated by the National Family Farm Coalition (NFFC), the campaign calls for urgent hearings in the Senate Committee on Agriculture, Nutrition, and Forestry to address persistent market consolidation, volatile processor margins and farmgate milk prices that fall below the cost of production for independent family-scale producers.

What the bill proposes

The bill, introduced in the US Senate by Senator Peter Welch (D-VT) and cosponsored by Senator Bernie Sanders (I-VT), proposes a fundamental restructuring of federal milk pricing and supply management mechanisms.

It would require the US Department of Agriculture (USDA) to set minimum farmgate milk prices calibrated to herd size and local production costs.

It would also create a Dairy Market Stabilization Program within USDA, guided by a producer-elected National Dairy Producer Board and regional advisory councils, to align national milk output with domestic commercial disappearance through volume allowances, excess production fees and regional waitlists for new dairy operations.

Four decades of consolidation

The coalition’s push highlights a four-decade transformation of US dairy farming. According to USDA census data cited by the initiative, the number of licensed commercial dairy operations fell from about 200,000 in 1980 to around 23,600 in 2025 — a contraction of nearly two-thirds over the past twenty years alone.

Meanwhile, total US milk production grew by more than 30% over the same period, driven by large concentrated animal feeding operations (CAFOs) and rising cow productivity. Coalition members argue that this structural oversupply drives excessive reliance on volatile global export markets at the expense of regional family dairies.

A divided industry

The debate has exposed sharp divisions within the US dairy industry. Small and mid-sized producers backing the push — such as Juliette Albrecht, who milks 100 cows in Missouri, and Tristan Swartz, who has 50 cows in Wisconsin — report growing processor leverage, abrupt route cancellations, rising hauling charges and exclusive contracts that penalise small herds.

They argue that non-transferable volume allowances would create a level playing field and prevent large corporations from dominating production.

The National Milk Producers Federation (NMPF), the country’s largest dairy trade association representing farmer-owned cooperatives, strongly opposes the bill.

Trey Forsyth, NMPF’s vice president of government and regulatory affairs, warned that mandatory supply management and quota-like systems carry unintended economic consequences. The organisation argues that volume caps restrict on-farm efficiency, raise retail prices for consumers and replicate the high capital barriers to entry seen in supply-managed systems such as Canada’s.

As congressional leaders weigh the broader Farm Bill framework heading into 2027, the battle over federal milk pricing reform reflects deep philosophical disagreements over how best to safeguard the future of US dairy farming.

Source: eDairy News