Dairy Industry Leader Testifies before Congress on USMCA Dairy Priorities

Michael Lichte, Chief Insights and Optimization Officer for Dairy Farmers of America (DFA), testified today before the House Committee on Agriculture on the importance of the United States-Mexico-Canada Agreement (USMCA) to U.S. dairy and the need for strengthening dairy implementation and enforcement during the agreement’s forthcoming joint review. Lichte served as a witness representing the National Milk Producers Federation as a board member and the U.S. Dairy Export Council as a director.

“Export demand now accounts for 17% of total U.S. milk production and has become one of the primary drivers of incremental growth across the dairy sector,” Lichte said. “For DFA and the U.S. dairy industry broadly, USMCA remains one of the most consequential trade agreements affecting long-term competitiveness, manufacturing investment, and farm-level economic stability. That’s why it’s essential that we strengthen and renew it.”

Mexico and Canada together account for more than 40% of all U.S. dairy exports by value. Lichte’s testimony focused on Canada’s administration of its dairy tariff-rate quotas in a manner that limits trade and its circumvention of USMCA export disciplines for dairy proteins, while also highlighting the importance of preserving U.S. exporters’ ability to use common cheese names like “feta” in Mexico.

On Canada, Lichte documented chronic underfill of negotiated dairy tariff-rate quotas, with cumulative fill rates reaching only 64% for industrial-use cheese, 34% for fluid milk, and just 7% for skim milk powder through 2025. He also detailed Canada’s growing use of alternative tariff classifications to move surplus dairy proteins into U.S. and global markets in ways that evade USMCA’s dairy protein export caps, a practice confirmed by a May 2026 U.S. International Trade Commission report.

“The underlying market distortions USMCA sought to discipline continue to affect U.S. manufacturers and global dairy protein markets,” Lichte added. “With appropriate enforcement and modernization, USMCA can continue supporting investment, export growth, and economic opportunity for the United States’ dairy farmers and processors for generations to come.”

A link to the written testimony can be found here.

It’s a GLP-1 World. You Need Dairy to Live in It

Is he, or isn’t he? Increasingly, he is.

With each passing year, GLP-1 receptor agonists used for weight loss and diabetes management (and showing promise in other areas of treatment) are becoming increasingly mainstream, changing the waistlines, health outcomes — and diets — of Americans.

Source: MealFan, GLP-1 Statistics 2026, May 2026

But for all their benefits, wonder drugs don’t come without consequences. People may eat less and manage weight better, but they still need nutrition, and that makes every bite more important. In this brave new world, dairy stands out. Why?

  • One word: Protein. Dairy products provide high-quality protein in relatively small portions, which is important when appetites are curbed. Greek yogurt, milk, and cheese deliver complete proteins containing all essential amino acids, keeping muscles strong and metabolism healthy as body weight declines.
  • Beyond protein, let’s not forget about the 13 essential nutrients dairy provides, especially the micronutrients that are harder to obtain when calorie intake drops. Calcium, vitamin D, potassium, and vitamin B12 all play essential roles in bone health, nerve function, and energy metabolism. Maintaining bone density is important during weight loss — dairy supports that goal.
  • Dairy also offers a convenient nutrition source when meals are smaller. Heavy meals unmanageable? How about yogurt, cottage cheese, or a smoothie? Need some variety and versatility? How about dairy and fruit, a dairy-based shake, or used as a base for savory dishes This flexibility allows individuals to maintain consistent nutrient intake without feeling overwhelmed.
  • Another advantage is dairy’s role in satiety and glycemic control. The combination of protein, fat (in some varieties), and carbohydrates helps slow digestion and promote a feeling of fullness. For individuals managing blood sugar alongside GLP-1 therapy, milk and yogurt provide a steady, moderate source of carbohydrates without sharp spikes, complementing the blood sugar-lowering effects of the medication.

When appetite is reduced, nutritional efficiency becomes critical. Dairy delivers a powerful combination of protein, essential nutrients, digestibility, and satiety. For people using GLP-1s, it’s a simple, effective way to maintain balanced nutrition and support long-term health. And as an industry that thinks long term, promoting dairy’s benefits in a GLP world helps everyone.

NMPF Statement on the Return of New World Screwworm

From NMPF President & CEO Gregg Doud:

The return of New World screwworm to the United States decades after its initial eradication is a disappointing milestone, but it’s also one for which dairy producers have been preparing for more than a year, in collaboration with USDA and across agriculture. It’s important to remember that this development has no effect on food safety, and that measures to combat both the screwworm and its spread are in place and time-tested. We appreciate the U.S. Department of Agriculture’s proactive efforts to prepare for this moment, and we stand ready to work with the department to address any ongoing challenges. 

Now that USDA has confirmed that screwworm is here, dairy farmers and all livestock producers pledge close collaboration with USDA, state and local officials, and producer organizations to mitigate any harmful effects and educate farmers on how to protect their herds. We have been creating resources to guide farmers in their responses, and we will keep our members well informed of any important screwworm developments.  

We also urge officials to follow scientific guidance in any decisions affecting animal movements and regulatory responses to avoid causing economic harm that could be greater than the screwworm itself. We also ask that adequate resources be provided to combat this problem, which causes suffering in animals and creates risk for producers. 

April DMC Margin Up Almost a Dollar over March

The April margin under USDA’s Margin Coverage Program was $10.54/cwt, $0.97/cwt higher than the month before and marking the second consecutive month this year for which the Program generated no payment at any coverage level. The higher margin was driven by a $1.10/cwt increase in the all-milk price from March and a rise of $0.13/cwt of milk in the April DMC feed cost formula, driven almost equally by small increases in the formula’s three feed components.

At the end of May, the DMC Decision Tool on the USDA website projected there would be no other DMC payments this year other than a possible small one for August. That forecast for the remaining eight months of the year showed a somewhat unusual two-peaked structure for the monthly DMC margins, hitting peaks just above $11.00/cwt in both May and November, with an interim trough of $9.70/cwt in August, and averaging $10.05/cwt for the year.

NMPF Urges USTR to Protect Common Names in AGOA Modernization

NMPF, USDEC, and the Consortium for Common Food Names (CCFN) submitted formal comments to the Office of the U.S. Trade Representative (USTR) on May 13, making the case that reauthorization of the African Growth and Opportunities Act (AGOA) should include explicit protections for common food names as an eligibility condition.

AGOA is a U.S. trade law that provides sub-Saharan African countries with duty-free access to the U.S. market when they meet certain economic and human rights conditions.

The comments commended the Trump administration for prioritizing and including common name provisions in nine reciprocal trade agreements to date, which ensure U.S. dairy exporters can market products under globally recognized generic terms like “parmesan” and “feta.” The three organizations urged USTR to extend that momentum to AGOA by making common name protections an explicit eligibility condition for beneficiary countries.

The stakes are significant as the European Union has aggressively used geographical indication provisions in trade agreements to lock out U.S. competitors by monopolizing generic cheese terms. AGOA modernization offers a powerful lever to reverse that trend, and NMPF is collaborating with allies in Congress and the administration to secure a level playing field for U.S. dairy across Africa.

May NEXT-Assisted Export Sales Total 21.4 Million Pounds

NEXT member cooperatives secured 93 contracts in May, adding 21.4 million pounds of product in NEXT-assisted sales in 2026. These products will go to customers in Asia, North America, Middle East-North Africa, South America and Central America and will be shipped from May through December.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting, moving products into world markets is essential. NEXT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The referenced amounts of dairy products reflect current contracts for delivery, not completed export volumes. NEXT will pay export assistance to bidders only when export and delivery of product is verified by submission of required documentation.

NMPF Highlights USMCA Importance at Events

NMPF and the U.S. Dairy Export Council co-hosted a U.S.-Mexico-Canada Agreement roundtable with Farmers for Free Trade on May 6 at Belgioioso’s facility in Green Bay, WI, alongside Congressman Tony Wied, R-WI, Land O’Lakes producer Amber Horn-Leiterman, and Wisconsin agriculture and business leaders.

NMPF made the case for targeted improvements to USMCA dairy provisions, including combatting Canada’s ongoing manipulation of dairy tariff-rate quota administration, addressing Canadian circumvention of dairy protein export disciplines and ensuring that Mexico preserves full U.S. cheese access to the Mexican market.

NMPF furthered its message two days later in Arizona, where United Dairymen of Arizona’s Jim Boyle, Jr. participated in a May 8 Phoenix roundtable with Governor Katie Hobbs hosted by the Arizona Chamber of Commerce & Industry and Farmers for Free Trade.

Boyle highlighted the expanded export opportunities dairy producers have gained through the North American Free Trade Agreement and USMCA and emphasized the importance of improving and renewing the current trade deal.

With the mandatory July 1, 2026, USMCA joint review approaching, NMPF and USDEC are focused on ensuring that outstanding dairy issues with Canada are resolved, that trade remains fully open with Mexico, and that the three nations renew the trade deal.

NMPF-Endorsed Supply Chain Security Bill Passes House

Following significant support and engagement by NMPF and the U.S. Dairy Export Council, the House of Representatives on May 13 approved the bipartisan Combatting Organized Retail Crime Act (CORCA).

NMPF has been at the forefront of this effort, including staff meetings with members of Congress and the White House National Economic Council to underscore the considerable damage that organized cargo theft poses to dairy shippers. NMPF President & CEO Gregg Doud met with Sen. Chuck Grassley, R-IA, the lead sponsor of the bill, on April 30 to highlight dairy’s exposure to container break-ins and thank him for his leadership on this issue.

Dairy products are rarely the target of organized criminal activity, but increasingly have become collateral damage, which leads to costly shipment returns, limited insurance recourse, and real risks to food safety and U.S. dairy’s reputation as a dependable global supplier.

CORCA would establish a coordination center within the Department of Homeland Security to centralize investigation and prosecution efforts. NMPF worked directly to ensure food and agriculture remained included in the final legislation, which now advances to the Senate.

Cooperatives Gather to Strengthen Dairy’s Future Leaders

NMPF brought together staff working with young dairy farmers from member cooperatives May 19–20 for a discussion focused on strengthening support for dairy’s next generation of leaders.

The meeting, hosted by Foremost Farms USA in Middleton, WI, drew 17 representatives from nine member cooperatives, along with industry partners including the American Jersey Cattle Association, Professional Dairy Producers, Dairy Girl Network and Dairy Management Inc.

Participants exchanged ideas and shared best practices on topics ranging from increasing young farmer engagement in cooperative activities to identifying and securing sponsorship support. Attendees also heard from Courtney Berner of the University of Wisconsin Center for Cooperatives, who discussed strategies cooperatives can use to create smoother leadership transitions and better support emerging leaders within the dairy industry.

Congressional Fly-in, AI on Agenda as NMPF Board Gathers

A workshop on Artificial Intelligence and a legislative fly-in open to both Young Cooperators and NMPF board members is set to highlight the organization’s June board meeting next week in Arlington, VA.

The packed agenda includes the following:

  • Committee meetings, including the Immigration Task Force, Political Action Committee, Economic Policy Committee and Scholarship Committee
  • Deputy Secretary of Agriculture Stephen Vaden and Ambassador Julie Callahan providing perspective on the agriculture economy and trade landscape
  • A bipartisan PAC fundraising breakfast featuring Tony Wied, R-WI, and Josh Riley, D-NY
  • An update from Dairy Management Inc., featuring CEO Barb O’Brien and NMPF Board Member Charles Krause.

Workshops and discussions, including a discussion of Artificial Intelligence and its future in dairy, begin on June 8 and continue after the formal meeting June 9-10 concludes, as NMPF’s Animal Health and Wellbeing Committee meets. Also, in conjunction with the board meeting is the NMPF Young Cooperators annual fly-in, which this year has been coordinated with the board meeting schedule to allow for fuller board participation. Conversations will center around an ag labor solution for dairy, keeping flavored milk in schools, supporting the DAIRY PRIDE Act, and advancing a farm bill to the president’s desk.

FARM ES Integrates RuFaS Model Updates

The National Dairy Farmers Assuring Responsible Management (FARM) Environmental Stewardship Program on May 19 released revisions to its Version 3 evaluation tool, integrating the latest scientific updates from the Ruminant Farm Systems (RuFaS) model that powers FARM ES Version 3.

Key reasons for this update:

  • Cropping practices: If a farm enters optional details about their cropping, those practices will now be reflected in total footprint. Feed production emissions will be broken down into purchased and homegrown production emissions for those farms that choose to enter cropping info.
  • RuFaS made important improvements in the manure methodology (for example, better responsiveness to temperature, better manure methane modeling for youngstock, ability to specify solids management after solid liquid separation, etc.).
  • The RuFaS team can better support FARM ES when questions or issues arise because FARM ES will be using the most up-to-date model version.
  • The RuFaS scientific documentation will reflect the model version that FARM ES uses, simplifying the efforts by cooperatives, processors, customers, and consultants to understand how FARM ES quantifies emissions.
  • Adjustments to the FARM ES report now will better enable GHG Protocol LSRS aligned reporting.

Updating the platform upholds FARM Environmental Stewardship’s commitment to offer the best available scientific methods that work for farms of all sizes, geographies and production styles.

FARM Environmental Stewardship provides a platform built by and for the U.S. dairy community, powered by peer-reviewed, credible science. U.S. dairy farmers actively shape the program, unifying industry response to supply chain interests and helping to streamline sustainability measurement into one program.

FARM ES showcases the great conservation work dairy farmers have done for generations and increasingly serves as a gateway for farmers to access supply chain incentive projects and other mechanisms that directly support their stewardship efforts.

NMPF Advances Dairy in Final Nutrition Rules

USDA announced May 8 two final rules for nutrition policy: “Expanding Fluid Milk Options in Child Nutrition Programs” and “Updated Staple Food Stocking Standards for Retailers in the Supplemental Nutrition Assistance Program.” Both contain advances for dairy farmers and their cooperatives in line with NMPF efforts.

NMPF applauded USDA’s final rule that clarifies Whole Milk for Healthy Kids Act implementation. The rule, which takes effect June 8, allows schools to offer whole and 2% milk in all federally funded meal programs for the first time since 2012.

As USDA developed the rule, NMPF advocated for schools to be able to offer whole and 2% milk not just at lunch, but also at breakfast and through other programs, including the Special Milk Program and the Child and Adult Care Food Program. The updated rule makes it clear that schools can now offer whole, 2%, 1% or skim unflavored and flavored milk options in all meal programs.

USDA the same day released updated staple food stocking standards for Supplemental Nutrition Assistance Program retailers.

The updated SNAP restocking rule continues to recognize dairy as a staple food category, and now also counts flavored milk, sour cream and shredded cheese as separate food varieties. The rule also limits plant-based alternatives, allowing only three to count toward the dairy stocking requirement. These updates reflect many recommendations NMPF made in comments submitted in November.

USDA removed butter from the staple foods list and reclassified as an accessory food to be consistent with how other cooking fats are classified. Consumers can still use SNAP benefits to purchase butter at the store, but retailers will no longer be required to stock butter to qualify as a SNAP retailer. Retailers still must carry seven food varieties from the dairy category to meet SNAP standards.