Washington, D.C. – In a move that underscores the Trump administration’s commitment to protecting American farmers, U.S. Secretary of Agriculture Brooke L. Rollins announced today that the Department of Agriculture is ending the use of mandatory dairy checkoff assessments for Environmental, Social, and Governance (ESG) initiatives. The decision restores the Dairy Checkoff’s original purpose: promoting U.S. dairy products, expanding markets, and supporting the hardworking men and women who feed the nation.
Why the Change Matters for Farmers
Rollins emphasized that dairy producers, cattle ranchers, and other agricultural families pay checkoff fees so those dollars can be used to build demand for their products—not to fund climate‑focused agendas that could raise costs or limit production. “Today’s action returns the Dairy Checkoff and all research and promotion programs to their core mission,” she said. “We will not allow producer dollars to underwrite mandates that put American agriculture at a disadvantage.”
What the Checkoff Program Is
Under the Dairy Production Stabilization Act, checkoff funds are collected from producers and are legally limited to promotion, research, and nutrition education that strengthen markets for U.S. dairy. The Innovation Center for U.S. Dairy, created through the checkoff, had previously pursued a range of ESG‑related projects, including greenhouse‑gas reduction goals and net‑zero targets. The USDA’s new directive ends funding for those ESG‑related activities while preserving essential administrative functions that do not advance such agendas.
Broader Implications for Other Commodity Checkoffs
The administration also directed the Agricultural Marketing Service to review other commodity checkoffs to ensure that no research or promotion dollars are used to advance ESG mandates. This nationwide sweep aims to keep all mandatory producer assessments focused on their statutory purpose: strengthening markets for American agriculture.
Economic Impact of the Dairy Checkoff
Despite the controversy over ESG spending, independent economists at Texas A&M have found that the Dairy Checkoff delivers strong returns for producers. Their analysis shows an overall return‑on‑investment (ROI) of $5.93 for every dollar spent on promotion and research. Specific product ROI figures include $4.16 per dollar for fluid milk, $2.67 for cheese, $24.85 for butter, and $12.82 for dairy exports. Comparable studies of other checkoff programs report ROI numbers such as $13.41 for beef, $6.40 for cotton, and $33.54 for softwood lumber.
Administration’s Rationale
Rollins framed the decision as a safeguard for American families and a reaffirmation of the checkoff’s statutory mission. By removing ESG mandates from the funding stream, the USDA aims to keep producer dollars from being diverted toward initiatives that could increase costs for consumers or constrain the ability of farmers to meet market demand.
What’s Next
The USDA will issue guidance to the Innovation Center for U.S. Dairy and other commodity boards on how to reallocate existing resources to pure market‑building activities. Stakeholders are encouraged to review the attached letter and memorandum for detailed implementation steps.
For farmers and ranchers, the change signals a return to a focus on expanding sales, improving product quality, and supporting the families that sustain America’s food supply.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
