NMPF Dairy Experts Testify on Milk Solids Before ITC; Staff Present on Economy, AI

NMPF’s Jaime Castaneda and Will Loux testified on July 28 before the U.S. International Trade Commission (USITC) as part of the agency’s ongoing Section 332 investigation into the United States’ nonfat milk solids competitiveness relative to other global suppliers, highlighting another busy month for NMPF staff in outreach and policy influence.

Testimony by Castaneda, NMPF’s executive vice president for Policy Development and Strategy, and Loux, who heads NMPF’s Joint Economics Team with the U.S. Dairy Export Council, complemented nearly 60 pages of comments filed July 16 that focused on Canada and other global suppliers’ persistent efforts to offload structural surpluses of nonfat milk solids onto the global market at artificially low prices.

NMPF and USDEC requested that the U.S. government address Canada’s attempts to circumvent its dairy obligations in the U.S.-Mexico-Canada Agreement. Despite Canada’s USMCA commitment to reform distortionary pricing schemes, limit the offloading of low-priced dairy proteins and expand its market access for U.S. dairy exporters, it has failed to follow through in meaningful ways on all three fronts undercutting U.S. dairy producers both at home and abroad — a point drawn out in the two testimonies. In response, USTR requested that the USITC conduct this investigation.

The USITC’s findings, due next March, will inform the U.S. government’s strategy heading into the upcoming USMCA review between Canada, Mexico and the United States.

NMPF and USDEC also highlighted other global suppliers that benefit from a combination of direct subsidies and state trading enterprises that distort global trade, including product originating from India, Turkey and the European Union.

The Loux and Castaneda presentations were among several spotlighting dairy’s leadership in July. NMPF Senior Director for Economic Research & Analysis Stephen Cain gave a tariff and trade outlook to industry professional on June 26 at the HighGround Global Dairy Outlook Conference in Chicago. Cain also presented a global dairy outlook to the Wisconsin Dairy Products Association Dairy Symposium in Lake Geneva on July 15 and gave a market outlook to WI Farm Bureau and the Dairy Farmers of WI in Madison later in the month.

Meanwhile, NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga presented on Artificial Intelligence and the challenges of communicating dairy’s messages in an evolving information environment at the Agricultural Media Summit in Rogers, AR, on July 29.

June DMC Margin Rises $0.70/cwt

The June margin for the Dairy Margin Coverage Program was $11.10/cwt in June, an increase of $0.70/cwt from May. The June all-milk price was unchanged from May at $21.30/cwt, while the June DMC feed cost formula dropped by $0.70/cwt for the month, as the prices of all three formula feed components decreased, particularly that for premium alfalfa hay.

The forecasts maintained by DMC Decision Tool on the USDA website at the end of July showed the DMC margin topping out $13.20/cwt in November and averaging $12.11/cwt for the year.

Agriculture Organizations Stand Against EPA Assessment

NMPF and other major agriculture organizations are standing against a draft risk assessment the EPA created as part of the agency’s effort to protect communities from PFAS (per- and polyfluoroalkyl substances). The assessment models human exposure to the “forever chemicals” PFOA or PFOS from the application of sewage sludge, or biosolids, to farmland. The agriculture organizations object to the models used in the draft risk assessment, stating the models operate on extreme assumptions which don’t account for the reality of agriculture.

The organizations will collectively submit comments to EPA by Aug. 14 explaining the shortcomings of the agency’s draft risk assessment on PFOA and PFOS in sewage sludge and why this model should not be used to inform new regulations.

Though it is important to continue to increase our understanding of PFAS and how it moves through our ecosystem, EPA’s misguided approach in this model paints an inaccurate picture that does a disservice to everyone.

NMPF will continue to advise EPA about realistic representation of on-farm practices.

FARM Fosters Connections at Evaluator Conference

New World Screwworm, the lingering effects of the H5N1 outbreak in dairy cattle, and Food and Mouth Disease in Europe all gained attention as the National Dairy Farmers Assuring Responsible Management (FARM) Program hosted its annual FARM Evaluator Conference, July 14-16 in Green Bay, WI, where evaluators compared notes and discussed best practices to encourage continuous improvement in the industry leading animal-care initiative.

The conference, attended by more than 100 evaluators and staff, kicked off with a panel of previous FARM Excellence Award winners, sharing on-farm successes using the FARM Program pillars. 2023 Evaluator of the Year winner and Associated Milk Producer, Inc. (AMPI) evaluator Jim Kauffman, who has conducted evaluations for AMPI since 2011, also shared tips and best practices when working with farmers to collect documentation and to identify improvement opportunities between evaluations.

Attendees also heard from subject matter experts on the latest science supporting industry best practices, ranging from topics such as vaccinations, conservation tools and animal enrichment activities.

Day two included an update from a panelist of animal health experts on emerging diseases affecting dairy cattle.

Dr. Burke Healy with USDA’s Animal and Plant Health Inspection Service discussed recent cases of New World Screwworm near the southern border, Dr. Darlene Konkle provided an update on the response to H5N1 outbreak in dairy cattle and Dr. Elizabeth Parker discussed the recent Foot and Mouth Outbreak in Europe and what we can learn from it. Evaluators also shared personal experiences undergoing the FARM Biosecurity training and using the FARM database to store biosecurity plans for producers.

The annual conference began in 2016 to connect evaluators, industry allies and on-farm experts to share current science and best management practices related to FARM Program pillars.

Evaluators are individuals trained and certified to conduct second-party Animal Care, Environmental Stewardship, and Workforce Development evaluations on behalf of FARM cooperative and processor participants. Evaluators work with dairy producers to identify strengths and outline areas for improvement in all program areas.

The FARM Program is grateful for the many sponsors that made this year’s event possible. To learn more about this year’s conference and sponsors, visit the FARM webpage.

NMPF Flags Bad FDA Labeling Rules to HHS

NMPF filed comments July 11 opposing FDA’s proposed Front-of-Pack labeling rule as well as two proposed plant-based labeling guidance documents published in response to a Department of Health and Human Services request for information.

In its comments to HHS, NMPF states that FDA’s Front-of-Pack nutrition labeling scheme is a highly flawed, unlawful approach to educating consumers about food nutritional profiles. The proposed rule violates the First Amendment’s prohibition on certain compelled commercial speech by focusing solely on saturated fat, sugar and sodium while ignoring the fact that dairy is a good or excellent source of 13 essential nutrients, NMPF states. The First Amendment requires compelled commercial speech to be factual, uncontroversial and related to a substantial government interest. NMPF has repeatedly pointed out to FDA that the proposed Front-of-Pack nutrition labeling fails to meet these legal requirements and therefore the proposed rule must be revoked.

“The proposed Nutrition Info box compels food manufacturers to carry a subjective, government-endorsed message that elevates three nutrients above all others, despite disagreement among nutrition experts and evolving science showing the importance of the complete food, especially in dairy products,” NMPF said in its comments. “We believe that compelling this messaging violates the commercial speech protections under the First Amendment.”

In its separate comments to HHS on plant-based guidance, NMPF calls attention to two proposed documents: “Labeling of Plant-based Milk Alternatives (PBMA) and Voluntary Nutrient Statements” published in the Federal Register Feb. 23, 2023, and “Labeling of Plant-Based Alternatives to Animal-Derived Foods: Draft Guidance for Industry” published in the Federal Register last Jan. 7.

Eliminating these plant-based labeling guidance documents directly aligns with HHS Secretary Robert F. Kennedy, Jr.’s mission of “making sure that providers and caretakers can focus on preventing and treating chronic diseases,” NMPF said in its comments. NMPF pointed to ample evidence that mislabeling has led to confusion among consumers regarding the nutritional deficiencies of plant-based alternatives.

“These documents mislead consumers, distort public understanding of healthful eating, and are both unlawfully promulgated and otherwise unlawful on numerous grounds,” NMPF said.

HHS is considering these comments as part of its broader deregulatory initiative.

July NEXT-Assisted Export Sales Reach Nearly 38 Million Pounds

NEXT member cooperatives secured 223 contracts in the program’s first month, totaling 37.7 million pounds of product in NEXT-assisted sales in 2025. These products will go to customers in Asia, Oceania, Middle East-North Africa, Central America, the Caribbean and South America and will be shipped from July through December 2025.

NEXT (NMPF Export and Trade) gained final approval from NMPF’s Board of Directors at its June meeting. It succeeds the previous Cooperatives Working Together (CWT) program, expanding its service to dairy producers and testing innovative new ways to build U.S. dairy’s global market share. NEXT provides an effective 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.


FDA Proposal Eliminates 18 Dairy Standards; NMPF Seeks input

The Food and Drug Administration proposed July 16 to revoke 18 standards of identity (SOIs) for dairy products, concluding that these standards are no longer necessary to promote honesty and fair dealing in the interest of consumers. NMPF finds several of the changes problematic and is seeking member input on what to do next.

FDA in its action said it wants to get rid of three categories within the standards of identity rules: Products no longer on the market, foods covered by different regulations, and combination foods. NMPF believes FDA’s analysis is wrong in some cases about products they claim are not in the marketplace. For a list of the products, click here.

“If these products are still being made and FDA takes them off the Standards of Identity list, then those foods can be made any way anyone wants and they will be able to be called that food. That’s going to wind up with consumers getting things with no idea fo what they’re getting,” Senior Vice President of Regulatory & Environmental Affairs Clay Detlefsen said.

NMPF is asking its members to notify Detlefsen at cdetlefsen@nmpf.org whether their co-op still produces any of the products on FDA’s list and if losing the Standard of Identity will negatively affect their business. Based on that feedback, NMPF will determine whether to request a formal administrative hearing in addition to its written comments submitted by the Sept. 15 deadline for the proposed rule.


Lanco-Pennland Joins NMPF Fold

NMPF is proud to welcome as its newest member, Lanco-Pennland, a dairy co-op based in Hagerstown, MD.

Lanco-Pennland represents 300 farms in Maryland, Pennsylvania, Kentucky and Virginia. It produces premium dairy products including whole milk mozzarella, white cheddar and Gouda, building long-term value for their farms and communities.  The co-op owns a plant in Hancock, MD, producing cheese under the brand Pennland Pure. All NMPF member co-ops are listed here.

NMPF Advocates for Industry Needs in Worldwide Trade Talks

NMPF’s active engagement with key administration officials in the lead-up to President Trump’s July 31 executive order establishing a new tariff system has helped create opportunities for dairy as deals across the globe take shape.

The order places reciprocal import tariffs on dozens of countries while maintaining the reciprocal tariff rate at 10% on all others. Several trade framework agreements were also announced prior to the order that may improve market access for U.S. dairy exporters.

The executive order sets country-specific tariff rates ranging from 10% to 41% on a broad set of imports. Several key U.S. trading partners negotiated terms to secure 15%-20% tariff rates under bilateral arrangements, including the EU, Japan, Indonesia, the Philippines, South Korea, the UK and Vietnam. Details on each are slim – with some having been announced solely via social media – yet most reference tariff reductions that would benefit U.S. agricultural exports.

Throughout these discussions, NMPF staff Jaime Castaneda and Shawna Morris, who served as Confidential Agricultural Trade Advisors to USTR and USDA, have provided extensive details and recommendations to U.S. trade negotiators on the importance of maintaining stable access to key export markets, avoiding retaliatory disruptions, reducing tariffs, and resolving nontariff trade barriers in specific markets.

NMPF joined USDEC in praising the framework agreement announced with Indonesia, which notably would eliminate Indonesia’s 5% dairy tariffs in a promising and growing market for U.S. dairy products and seeks to address nontariff barrier concerns with Indonesia’s lengthy facility registration process and threats to the use of common cheese names.

“We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets,” said Gregg Doud, president and CEO of NMPF, in the statement. “NMPF looks forward to reviewing the details of the agreement and working with the administration to ensure Indonesia upholds its end of the bargain.”

Separate negotiations are underway with countries on which the U.S. first began raising tariff rates: Mexico, Canada and China. Mexico, the largest market for U.S. dairy, received a 90-day reprieve, allowing continued negotiations and uninterrupted trade for the time being. Meanwhile, Canadian exports that are not USMCA-compliant will face a 35% tariff beginning Aug. 2. Negotiations with China to avert a further hike in bilateral tariffs with that country are ongoing, with a looming deadline of Aug. 12.

NMPF Looks Ahead After Securing Farm, Tax Policy Wins

NMPF is building momentum on other major policy areas now that significant tax and agriculture legislation has passed Congress, with a focus on whole milk and farm workforce needs.

The Whole Milk for Healthy Kids Act has a chance for Senate floor action, having already passed through the Senate Agriculture Committee. The bill would provide schools with the option of serving whole and 2% milk in addition to the 1%, fat-free, and flavored options currently offered. Whole and 2% milk are the most consumed varieties at home and offer the same 13 essential nutrients, including protein, calcium and vitamin D, as lower-fat varieties.

Sens. Roger Marshall, R-KS, and Peter Welch, D-VT, the bill’s lead Senate sponsors, are working to pass the measure in the Senate by unanimous consent, a maneuver that saves time and heads off potentially problematic amendments. House Agriculture Committee Chairman GT Thompson, R-PA, and Representative Kim Schrier, D-WA, are leading the bill in the House and are working to coordinate quick passage once it moves from the Senate to the House.

NMPF also continues to urge Congress to pass legislation that meets dairy’s unique agricultural workforce needs, an increasingly pressing challenge given stepped-up deportation activity.

House Agriculture Committee Chairman Rep. GT Thompson, R-PA, is developing legislation based on last year’s House Agriculture Labor Working Group report, which recommended improving dairy’s access to the H-2A ag visa program. NMPF is also seeking stabilization for current dairy farm workers and their families, potentially in line with President Trump’s recent comments recognizing the importance of farm workers to the work producers do to feed the country and care for their animals.

NMPF has also stepped up its public and member communication on agricultural labor. NMPF hosted a members-only webinar offering guidance to farmers on immigration law on July 22. Meanwhile, Chief Veterinary Officer Meggan Hain had an opinion article on the importance of a stable foreign-born work force to animal welfare that was published in the USA Today Network wire service on July 24.

Finally, Congress is likely to turn its attention to passing a slimmed-down “Farm Bill 2.0” – items not included in the provisions of the tax legislation that included agriculture, including many programs traditionally handled in farm bills. The legislation will provide an opportunity to advance NMPF policy priorities that were unable to be included in the recent budget package, such as the bipartisan, bicameral SAFETY Act to direct USDA to partner with the U.S. Trade Representative to prioritize the protection of common food names like “parmesan” and “bologna” in international trade negotiations.

A slimmed-down bill will build on the dairy policy wins in the One Big Beautiful Bill Act signed July 4, which included:

  • Renewing the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history calculation to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in their coverage for the duration of the bill;
  • Providing mandatory funding for USDA to conduct mandatory dairy processing cost surveys every two years to provide better data to inform future make allowance conversations;
  • Boosting the farm bill conservation baseline, resulting in increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program;
  • Providing new trade promotion funding based on current programs that return well over $20 in export revenue for every dollar invested in the programs; and
  • Increasing funding for animal health programs that help to prevent, control, and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle.

The legislation also included several tax policy priorities for dairy farmers and the cooperatives they own.

  • The bill made permanent the Section 199A deduction, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.
  • It also extended the Clean Fuel Production Tax Credit through 2029 to support the production of low-carbon transportation fuels. The bill strengthens the credit by allowing the Treasury Department to establish specific emissions rates for fuels derived from dairy manure, with the goal of unlocking new revenue streams for dairy farmers who invest in methane digesters that reduce emissions.

Joint Statement from NMPF and USDEC on Senate Confirmation of Luke Lindberg as USDA Under Secretary of Trade and Foreign Agricultural Affairs

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) today applauded the Senate’s confirmation of Luke Lindberg to the position USDA Under Secretary of Trade and Foreign Agricultural Affairs.

Statement from Gregg Doud, President and CEO of NMPF:

“We are excited to get to work with Under Secretary Lindberg, who has a proven track record of advancing American agricultural interests and will help USDA deliver results for American dairy producers and cooperatives. Mr. Lindberg’s leadership and understanding of trade policy strengthen the future of U.S. dairy. We look forward to working with Under Secretary Lindberg and the entire Trump administration to champion American dairy farmer interests, fight back on unjustified and unscientific barriers to American exports and open markets across the globe.”

Statement from Krysta Harden, President and CEO of USDEC:

“The confirmation of Luke Lindberg represents a significant win for U.S. dairy exporters and our industry’s global competitiveness. Mr. Lindberg’s experience leading trade missions and managing export initiatives position him perfectly to break down trade barriers and create pathways for American dairy to reach global consumers. Last year, U.S. dairy exports reached a historic $8.2 billion, demonstrating the tremendous global demand for American dairy products. This position is critical to advancing America’s leadership in international dairy markets. Together we can put more Made in America dairy on more overseas shelves. We are delighted to have a strong advocate for policies that enhance competitive dairy access into international markets.”

Dairy Maintains Momentum Through Turbulence

It doesn’t really need to be said, because evidence is everywhere. But it’s worth repeating, in light of how easy it is to lose focus among turbulence in labor, trade and politics: Dairy’s future is incredibly bright.

Any skepticism toward that idea can quickly be countered with about 10 billion reasons. That’s the dollar amount of investments in new dairy processing capacity that’s coming online between 2023 and 2026, according to an NMPF analysis. Ultimately, these investments are an investment in the U.S. dairy farmer.

From Washington state to Georgia, manufacturers are placing their bets on increased consumer demand for dairy products. State-of-the-art facilities are promising to put affordable, nutritious dairy foods on store shelves and dinner plates in the United States and around the world. The processing growth is creating new outlets for dairy farm production, a tide that lifts all boats across the industry.

And the realization that growing consumer demand isn’t just a forecast: It’s current reality.

  • U.S. fluid-milk consumption rose last year for the first time since 2009. Milk’s market share versus plant-based imposters continues to rise (as if nut drinks were ever truly a threat in the first place).
  • Cottage cheese has emerged as the go-to snack food for Generation Z.
  • And per capita overall U.S. dairy demand continues at levels last seen in the 1950s.

All that is a tribute to the fact that, even with all the diet diversification since then, dairy remains a bedrock of American diets, accessible to all, affordable, and trusted. It’s also a tribute to the industry’s vision and how long-term producer investment in the dairy checkoff has encouraged innovation in new research, technologies, and products.

Overseas sales remain a bright spot for the industry as well. That may seem surprising, given all the headlines of volatility in global trade as the United States tries to reset global commerce. But it’s true: In 2025 through May, the value of U.S. dairy exports was $3.873 billion, 13% higher than the same period last year, when they were $3.422 billion.

That’s a powerful testament to the resilience of U.S. dairy producers and exporters who work around the clock, managing and building relationships that are being heavily tested this year. While overall year-to-date sales volumes are slightly down, and Chinese retaliatory tariffs have heavily weighed down sales to that market, higher-value products like high protein whey products have grown 8% by volume and 30% by value year-to-date. Similarly, U.S. cheese exports are up 7% by volume and 18% by value when compared to 2024 exports through May.

Recent progress in new trade deals with trade partners such as Indonesia also brings encouragement that eventually trade waters will calm, with new opportunities possible for U.S. dairy producers as the turbulence ebbs. Thank you, U.S. Dairy Export Council, thank you NMPF member cooperatives, thank you, NEXT Program, and most all thank you, dairy farmers, for keeping this momentum going.

All this, of course, isn’t meant to give short shrift to the significant challenges ahead. At NMPF we are well aware of the workforce challenges facing dairy farms as a nationwide crackdown on illegal immigration disrupts agricultural workforces. Current trade success so far doesn’t mean policy upheaval can’t damage or reverse progress, nor that export momentum will stay the same if new trade policies don’t improve global access opportunities. And consumer confidence faces misinformation threats that only become more sophisticated.

But heading into August, when Congress goes back home and policymaking hits a temporary pause, we at NMPF couldn’t be prouder to represent a growing, thriving industry — not one that’s free from challenges, but one that meets the challenges at hand. Dairy’s momentum becomes our momentum. That momentum is significant. It augurs well for the months and years to come.


Gregg Doud

President & CEO, NMPF