NMPF Looks Ahead After Securing Farm, Tax Policy Wins
August 5, 2025
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.
