Farm Bill Stalls in Senate Ag Committee, NMPF Pushes Dairy Priorities

The Senate Agriculture Committee failed Aug. 6 to advance the Agricultural Act of 2026 in a 10 to 11 vote, falling short amid a partisan standoff over SNAP provisions and the absence of Sen. Mitch McConnell, R-KY.

Committee Chairman John Boozman, R-AR, called the outcome “deeply disappointing” and has pledged another vote when the Senate returns from recess this month, at which point McConnell may be available for a vote.

The setback doesn’t diminish the need to get a farm bill across the finish line. NMPF continues to champion mandatory cost and yield surveys to inform future Federal Milk Marketing Order updates, dairy safety net program extensions and expanded funding for dairy nutrition and innovation initiatives, among others.

NMPF will continue engaging with both parties as negotiations resume, emphasizing that dairy farmers need certainty.

NMPF Urges Canadian Reforms in Trade Dispute

NMPF supported the Trump Administration’s use on Aug. 22 of a novel trade authority tool in the hopes of coercing Canada to fix its dairy tariff-rate quota system.

The U.S. government’s action resulted in the implementation of 50 percent tariffs on Canadian dairy products, as well as a range of other imports from Canada. The Administration cited Canada’s unfair Tariff Rate Quota (TRQ) allocation rules, which discriminate against U.S. dairy exporters, as a main motivation behind the tariffs.

“This action sends an unmistakable message that Canada’s ongoing disregard for its USMCA dairy commitments carries real consequences,” said NMPF President and CEO Gregg Doud, urging Canada to “stop looking for workarounds and instead sit down in good faith” to resolve the outstanding implementation issues that NMPF has been raising for years.

NMPF and the U.S. Dairy Export Council have consistently urged the Administration to prioritize resolution of Canada’s chronic TRQ underfill and its habit of exploiting loopholes to sidestep USMCA dairy protein disciplines as part of the ongoing USMCA Joint Review. These new tariffs reflect that sustained engagement translating into heightened leverage.

The immediate path forward remains uncertain following the negotiations’ breakdown over non-agricultural issues in August. Canadian Prime Minister Mark Carney last week announced a sweeping set of retaliatory tariffs on Canadian imports – including several dairy products – set to begin Sept. 8. NMPF will continue working directly with the Administration to ensure any resolution of the current standoff includes binding fixes to Canada’s TRQ eligibility rules and quota administration.

Acting Secretary Shown Labor Crisis via NM Dairy

NMPF joined Western Growers in New Mexico on Aug. 14 to host Acting Secretary of Labor Keith Sonderling and provide a firsthand look at the labor challenges facing U.S. agriculture.

Sonderling toured DFA member John DeRuyter’s dairy farm near Las Cruces, then joined an ag labor roundtable with farmers and agricultural leaders from across the state.

NMPF underscored dairy’s acute and ongoing labor needs during the visit and pressed Sonderling to collaborate with the president and Congress to deliver real ag labor reform. Sonderling has led key roles at the Department of Labor and was nominated for Secretary in June.

This visit is part of NMPF’s sustained, on the ground push to keep dairy’s workforce crisis front and center in Washington. NMPF also is making passage of the Securing America’s Workforce Act (SAWA) a top legislative priority. The legislation would modernize the outdated H-2A program to finally work for dairy’s year-round labor needs, providing a stable, legal workforce that farms depend on every single day.

NMPF is working every angle, administrative and legislative, to get this done. To get involved, visit nmpf.org/take-action.

With Canada, Beef and Ag Labor, August was Not a “Recess”

The term “August recess,” used to describe the traditional slow period when lawmakers and federal workers alike escaped Washington’s heat and humidity, was a misnomer this year. From critical trade negotiations with Canada, to a frustrating development on beef tariffs, to the ongoing effort to make ag-labor reform real, August has been one of the year’s busiest months for the dairy industry in Washington. (And that’s without even mentioning the Senate version of the farm bill, which is in temporary limbo after a failed committee vote.)

We’ve been keeping up with every development, speaking out and acting as needed on behalf of our members. Here’s a rundown of key issues, and how we’ve stood on them.

On Canada. With USMCA talks with Canada broken down and the potential for retaliatory tariffs in both directions hanging over both economies, including several dairy products, the U.S.-Canada trade relationship is at an impasse, at least for the moment. This may be surprising to many who don’t closely follow the traditionally friendly relationship – but in dairy, this showdown has been decades in the making.

Under the USMCA trade agreement negotiated during the first Trump term, Canada committed to providing meaningful additional duty-free access for U.S. dairy exports through a series of tariff-rate quotas (TRQs). Canada’s administration of those TRQs has repeatedly resulted in chronic under-use, reducing the benefit for American dairy farmers. Canada also continues to exploit loopholes to sidestep USMCA on dairy protein exports.

NMPF and our partners at the U.S. Dairy Export Council have long urged the White House to make fixing this a priority. The Trump team has consistently called out Canada’s disregard for its USMCA commitments on dairy market access. Canada needs to stop looking for workarounds and instead sit down in good faith to resolve these long-standing dairy issues. Canada’s retaliation against U.S. goods is disappointing, but all it’s doing is forcing the U.S. hand. A cool-down would be welcome; but must include a dairy market access fix. The objective should be for both our countries to prevent increased friction and build on the progress made through weeks of negotiations.

While we consistently offer our expertise and assistance to support the Administration on improving U.S.-Canadian dairy trade, we also believe it is important to explain the unintended consequences of federal intervention in agricultural commodity markets such as this recent decision to eliminate the tariff on imported beef.

Cull cow and calf sales have become a key economic driver for U.S. dairy farmers, equating to roughly 20% of annual dairy farm income, and more than 20% of the U.S. beef production is now being supplied by dairy farms. Current beef prices have helped push dairy cow numbers to the highest point in the United States since 1992; meanwhile U.S. milk production is up 2.7% versus last year. Both trends help keep beef and dairy products affordable for consumers; dairy is stepping up to contribute to solving the consumer challenge of higher beef prices.

Rewarding imports sends the wrong message to U.S. dairy farmers and manufacturers who are investing billions of dollars to grow the domestic supply of beef and dairy products. The decision to remove duties on imports of 300,000 metric tons of beef over the next 90 days will have a short-term, muted price impact for consumers. But the effects on both dairy and beef producers could be felt for some time by delaying the necessary economic signal sent to U.S. producers to increase beef production.

While all that has been going on, we’ve continued our efforts to see the Securing Agriculture’s Workforce Act, landmark ag-labor legislation, become law. The election-year calendar makes passage in 2026 a challenge; but we’re doing our best to ensure that when the political moment for real reform arrives, Congress knows that change is needed and that a powerful coalition won’t settle for anything less than progress.

Since the June 30 introduction of the bill, which would finally grant dairy farms meaningful access to the H-2A visa program and make that program more workable, we have:

  • Coordinated more than 100 Capitol Hill meetings with lawmakers to advocate for SAWA’s passage as part of our state associations summit.
  • Sent a letter along with eight of our member cooperatives and nearly all state dairy associations among the more than 450 agriculture groups, businesses and associations who collectively urged SAWA passage on Aug. 10.
  • Joined Western Growers in hosting acting Labor Secretary Keith Sonderling in New Mexico to discuss the ag labor crisis. The Aug. 14 visit included a tour to DFA member John DeRuyter’s dairy outside of Las Cruces. Sonderling will be a critical voice in getting the Trump administration’s support in securing H-2A reforms.
  • Been active on social media in showing the need for the bill and making folks aware of how important this legislation is. That social media campaign will be expanded in September as it complements a broader, agriculture wide effort to show support for Thompson other leaders for positive change.
  • And finally, our  Advocacy Alert is drawing both dairy farmers and their allies into the debate.

With each passing year, the idea that Washington slows down in August is increasingly a relic of a bygone era. The world is too connected, the conflicts too intense, the needs too real and urgent to pause. And if Washington doesn’t, we don’t either. These have been just a few of the ways we’ve served our members during the “recess.” And a challenging fall awaits.

NMPF Statement on Plan to Increase Beef Imports

From NMPF President & CEO Gregg Doud:

NMPF is concerned by the Trump Administration’s decision to increase imports of foreign-raised beef, which will have unintended consequences for U.S. cattle and dairy producers alike. Cull cow and calf sales are a key economic driver for U.S. dairy farmers and equates to 20% of annual dairy farm income and greater than 20% of the U.S. beef production is now being supplied by dairy farms. Current beef prices are an important reason why we have the most dairy cows in the United States since 1992; meanwhile, U.S. milk production is up 2.7% versus last year. Both trends help keep beef and dairy products affordable for consumers; dairy is stepping up to solve the consumer challenge of higher beef prices.

Policy-created disruption threatens the billions of dollars invested by U.S. dairy farmers and manufacturers to grow supply of beef and dairy products. For the second time this year, the federal government has significantly intervened into the U.S. beef market, this time to remove duties on imports of 300,000 mt of beef over the next 90 days. This will have a short-term, muted economic impact for consumers: But the effects on both dairy and beef producers could be felt for some time. This decision risks a reduction in the price dairy farmers receive for their cull cows and higher profits for foreign beef exporters, all for a potentially nominal decrease in the retail ground beef price.

Again, removing the tariff isn’t likely to lower consumer prices, as the price of this imported product is already well below that of the comparable domestically produced product derived from U.S. cull dairy and beef cows, but it will certainly improve the profit margin for the exporter. The more consequential impact will be a delay in the necessary economic signal sent to U.S. beef producers to increase production, which may reduce domestic supplies in the longer term.

U.S. dairy farmers’ appreciation for the strength that beef prices have provided to their operations cannot be overstated, as milk prices continue to be low by historical standards. That appreciation extends to U.S. consumers who are increasingly demanding not only our exceptional dairy products but also the beef we produce. That’s the choice U.S. consumers are making, as it should be.

New U.S.–Indonesia Agreement Secures Access to Critical Dairy Market

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) celebrated today’s signing of a new U.S.–Indonesia trade agreement that would provide key market access expansions and protections for American dairy products.

Following years of USDEC, NMPF and CCFN advocacy, the deal will eliminate tariffs on all U.S. dairy exports; recognize U.S. regulatory oversight, including by listing all U.S. dairy facilities and accepting dairy certificates issued by U.S. regulatory authorities; and commit to protecting 40 common cheese names like “parmesan.” U.S. dairy exporters have long faced challenges with Indonesia’s excessively slow and burdensome facility registration process, making the issue’s resolution critical.

“This important agreement enhances the strong and growing relationship we’ve developed with Indonesia’s government and dairy industry,” said Krysta Harden, president and CEO of USDEC. “Through sustained engagement, we’ve laid a solid foundation for partnership. This deal reinforces that progress and positions U.S. dairy to expand its capacity to serve as a reliable partner in supporting Indonesia’s dairy sector and nutrition goals.”

The agreement builds on the U.S.–Indonesia Dairy Partnership, launched in 2024 to deepen cooperation across multiple fronts. As part of this collaboration, USDEC partnered with Indonesian institutions to support the government’s Free and Nutritious School Meals initiative, which includes the goal of providing school milk to students.

USDEC and NMPF also signed a memorandum of understanding (MOU) with the Indonesian Chamber of Commerce and Industry (KADIN) last May to expand dairy trade and strengthen commercial ties. USDEC also signed a MOU with the Indonesian Food and Beverage Industry Association (GAPMMI) last October. A USDEC-GAPMMI roundtable led by USDA Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg was held earlier this month to deepen that connection.

“Indonesia is the fourth-most populous country in the world and, it’s a critical market for U.S. dairy farmers,” said Gregg Doud, president and CEO of NMPF. “Thank you to Ambassador Greer and the USTR team for securing expanded access that will directly translate into stronger demand for U.S. dairy products.”

“The common names protections included in this agreement are especially important for America’s farmers and exporters,” said Jaime Castaneda, executive director of CCFN. “Ensuring U.S. producers can continue to market and sell products like ‘parmesan’ and ‘feta’ in Indonesia without unfair restrictions helps preserve export opportunities and supports the livelihoods of farmers and manufacturers across the United States.”

Indonesia is currently the eighth-largest export market for U.S. dairy products. U.S. dairy exports to Indonesia in 2025 totaled $222 million, including strong demand for milk powders, whey products, cheese and other dairy ingredients. The agreement is the ninth trade deal secured to date by the Administration that includes new market access for U.S. dairy products, including an agreement signed with Taiwan last week. USDEC, NMPF and CCFN will continue to work with the U.S. and Indonesian governments to swiftly and fully implement the agreement’s provisions.

U.S. Dairy Welcomes U.S.-Argentina Trade Agreement

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and Consortium for Common Food Names (CCFN) celebrated the signing of a U.S.–Argentina Agreement on Reciprocal Trade and Investment late yesterday that includes tariff and nontariff barrier concessions for U.S. dairy exports.

Argentina commits in the trade deal to eliminate tariffs that currently range up to 28 percent on select dairy products, including milk powders, dairy proteins, lactose, and other dairy ingredients. The agreement also establishes a 1,000 metric ton quota for certain U.S. cheeses. In addition to tariff reductions, Argentina agrees to prevent several nontariff barriers, including refraining from imposing processing facility registration requirements on U.S. dairy exports and providing explicit protections for 39 common cheese names like “parmesan”.

“The commitments secured in the U.S.-Argentina reciprocal trade deal bring new, real opportunities for our dairy exports to South America,” said Krysta Harden, president and CEO of USDEC. “USDEC appreciates USTR’s hard work in securing agreements that lower tariffs and meaningfully address nontariff barriers, particularly those to protect common cheese names. We look forward to building our market presence in Argentina as the agreement is implemented.”

“Trade deals like this one bring dairy farmers promise for the future,” said Gregg Doud, president and CEO of NMPF. “Dairy farms operate 365 days a year, and the U.S. negotiating team is keeping pace to secure new market access. NMPF will continue to work with the Administration as all the reciprocal trade agreements are translated into real results on the ground for our farmers.”

“Argentina’s commitment to protect 39 common cheese names and 10 generic meat terms could not have come at a more important time,” said Jaime Castaneda, executive director of CCFN. “As the European Union is advancing toward implementation of its trade agreement with the Mercosur bloc of countries, our ability to use common names is increasingly at risk. We cannot thank Ambassador Greer and the USTR negotiating team enough for the foresight and leadership in protecting U.S. exporters’ rights.”

The trade deal follows reciprocal trade agreements that the United States signed recently with El Salvador and Guatemala last week that included commitments to prevent barriers to U.S. dairy exports. USDEC and NMPF will continue to work with the U.S. government as the reciprocal trade negotiations progress to identify and address impediments to dairy trade and grow U.S. export opportunities.