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 The legislation would modernize the outdated H-2A program to finally work for dairy’s year-round labor needs, providing a stable, legal workforce that farms depend on every single day.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.

Dairy Labor Reform Momentum Builds

Progress in Washington is often measured in increments, one step at a time. But in the past month, dairy took two steps forward on ag labor: A clarification from the Trump administration regarding H-2A visas as they apply to dairy, followed by House Agriculture Committee Chairman Glenn “G.T.” Thompson’s introduction of comprehensive agricultural labor reform legislation, the Securing Agriculture’s Workforce Act.

For decades, dairy farmers have operated within a fundamental contradiction: Their labor needs are an everyday of the year constant, yet Congress designed the H‑2A visa program for seasonal agriculture. That mismatch has left dairy farmers effectively shut out of the nation’s primary legal agricultural guestworker system.

The recent clarification from the Department of Homeland Security on H-2A eligibility for dairy, supported by USDA and the Department of Labor, attempts to ease that tension. By directing visa petition adjudicators to consider dairy applications on a case-by-case basis and recognizing legitimate seasonal spikes, such as during calving or feed harvest, it attempts to expand the program’s accessibility for dairy operations. It also corrects a longstanding rigidity in how applications were evaluated, in which year-round production was often treated as automatic disqualification.

The change’s practical effects are limited by the scope of H-2A itself, for which eligibility still hinges on work being temporary or seasonal. For most dairy farms, where labor demand is continuous and predictable, that requirement continues to pose a significant barrier. While some producers could benefit, the clarification is unlikely to fundamentally reshape dairy’s access to a legal workforce. That said, the announcement was still welcome recognition from this administration of dairy’s labor challenges.

Those challenges underscore why Chairman Thompson’s Securing Agriculture’s Workforce Act is so consequential. The bipartisan bill, unveiled June 30, represents the most meaningful step in years toward fixing a broken farm workforce system, offering structural and legal reform dairy has long needed.

At its core, the bill would address the structural flaw that has hampered dairy for decades. By redefining “temporary” work based on the duration of an employment contract, allowing contracts of up to 350 days regardless of whether the work itself is year-round, it would align federal labor policy with modern agriculture’s operational reality. For dairy, that shift is potentially transformative.

Instead of limiting farms to a seasonal framework, Thompson’s proposal would allow them to access H‑2A legally and predictably by structuring employment contracts appropriately. In doing so, it opens the program to operations that have long been excluded, not because they lacked need, but because the law failed to reflect how they operate.

The bill goes further. It seeks to streamline the application process, reduce administrative burdens, and address cost concerns that have deterred employers from using H‑2A even when eligible. These aren’t incremental adjustments; they are reforms designed to be inclusive of vital labor needs on the dairy farm.

Perhaps the most important provision of the bill for dairy, beyond providing dairy access to an improved H-2A, is the targeted waiver of the bar of admission on past unlawful presence, providing the current dairy workforce a means to transition to a workable, agriculture visa program. While it may face scrutiny from some lawmakers, this provision shows Chairman Thompson’s understands what a major workforce disruption would do to the food supply chain as dairy farms transition to H-2A.

Just as important is the legislation’s broader purpose: to modernize a farm labor framework that’s remained largely unchanged since 1986. For dairy producers, workforce stability is not optional. It underpins animal care, milk quality, and overall farm viability. By creating a more flexible and reliable visa program, Thompson’s bill moves the industry closer to that stability in a way that we’ve not seen in decades.

The administration’s H-2A clarification demonstrates an appreciation that the current visa program does not work for dairy. Chairman Thompson’s legislation takes it further by fixing the underlying structural problems with H-2A. Ultimately, the path to a secure, stable dairy workforce runs through Congress. Meaningful, lasting change requires rewriting existing law. That is precisely what Chairman Thompson’s proposal aims to do.

For dairy farmers navigating tight margins, rising costs, and global competition, seeing that progress is more than policy: It’s the foundation for dairy’s workforce and economic sustainability in the years ahead.

Now the duty falls to the dairy industry and our friends across the agriculture sector to do all we can to see the Strengthening Agriculture’s Workforce Act through. NMPF has prepared a call to action that allows dairy farmers and their advocates to contact their House member and ask for support. That’s a step you can take toward ag-labor reform, building on the two steps taken in Washington in recent weeks.

And there will need to be more. Beyond building strong support from House lawmakers, the Senate will need a companion bill to get legislation to the president’s desk. Many steps lie ahead — but the path is clear. NMPF stands ready to lead the charge, alongside our members and the broader industry, to build the momentum needed for success.

 


Gregg Doud

President & CEO, NMPF

 

NMPF Praises Securing Agriculture’s Workforce Act

From NMPF President & CEO Gregg Doud:  

“The Securing Agriculture’s Workforce Act represents the most significant reform to the ag workforce we’ve seen in decades. It is particularly critical for dairy farmers, who have been effectively shut out of the nation’s primary legal agricultural guestworker program.  

“First and foremost, this bill finally grants dairy access to H-2A by removing the seasonal requirements of the program and allowing contracts up to 350 days of the year. The bill goes further, streamlining the application process, reducing administrative burdens, and addressing cost concerns that have deterred employers from using H-2A even when eligible.   

“Perhaps the most important provision of the bill for dairy beyond providing access, is the targeted mechanism to provide the current dairy workforce a means to transition to a workable visa program. This will ensure that we don’t face a major workforce disruption as dairy farms transition to H-2A – and that’s critical, because workforce stability underpins animal care, milk quality, and overall farm viability.  

“I applaud Chairman Thompson and the other original co-sponsors for introducing this bill. Chairman Thompson, thank you for leading the way, as you so often have to the most important issues facing agriculture. NMPF will rally its advocates across dairy and all of agriculture to support this bill, and it stands ready to help build momentum in the House, secure a Senate companion bill, and ultimately get this legislation to the president’s desk.”   

NMPF Statement on Trump Administration Plan to Improve Dairy H-2A Access

From NMPF President & CEO Gregg Doud:

“Dairy farmers appreciate the new clarification released by the Trump administration outlining how dairy operations may use the H-2A agricultural worker program. The dairy industry has long sought access to the H-2A program, and this guidance will help open the door for dairies to begin using this program. We applaud secretaries Rollins and Mullin and acting Secretary Sonderling for their proactive leadership on this issue and look forward to learning more about these important new changes.

“NMPF pledges to work with both Congress and the administration to secure long-term certainty for the dairy workforce, including solutions to transition to H-2A, which will ensure that dairies across the nation are set up to thrive, boosting rural communities and providing Americans and the world with high-quality, nutritious products.”

Legislative priorities on crowded agenda

By Trey Forsyth, Vice President, Government & Regulatory Affairs

As Congress heads into a compressed summer work period before the August recess and the ramp-up to fall midterm elections, dairy leaders are closely tracking a full slate of legislative activity that will shape the industry’s outlook for years to come. From farm bill negotiations to labor reform and federal funding decisions, the weeks ahead are expected to be pivotal.

At the top of the list is continued progress on the farm bill. The House has already advanced its version, incorporating several priorities long championed by the National Milk Producers Federation (NMPF). This includes authorizing long-term dairy product processing cost surveys, bolstering voluntary, producer-led conservation efforts, directing the U.S. government to protect common cheese names like “Parmesan” and “Feta” in trade negotiations, strengthening export promotion funding, expanding access to renewable energy programs for farmer-owned cooperatives, and broadening dairy product eligibility in nutrition incentive programs.

Attention now turns to the Senate, where Agriculture Committee Chairman John Boozman (R-Ariz.) has indicated that bill text is expected to be released in June, with a possible committee markup in the coming weeks. That timeline aligns with industry hopes for maintaining farm bill momentum, though significant policy and budgetary differences remain to be resolved. Ensuring key dairy provisions continue to advance will be central to discussions as the Senate weighs its approach.

Agriculture workforce reform also appears to be on the horizon. House Agriculture Committee Chairman Glenn “GT” Thompson (R-Pa.) has signaled that he is nearing introduction of legislation aimed at addressing agriculture’s labor challenges. While details are still emerging, NMPF is hopeful the bill will include key wins for dairy, such as the long-sought need for non-seasonal agriculture industries to have access to the H-2A program. Any forward movement on agriculture labor reform would mark a meaningful step for producers who continue to face workforce shortages and labor uncertainty.

Meanwhile, appropriators are advancing Fiscal Year 2027 funding bills through Congress, including measures that will determine funding levels for key dairy priorities across USDA programs related to nutrition, conservation, and research. While spending constraints remain, these bills offer another avenue to reinforce priorities even as broader farm bill negotiations continue.

All of this is unfolding against a broader legislative backdrop dominated by efforts from Republicans to move a reconciliation package that funds immigration enforcement agencies, including Immigration and Custom Enforcement (ICE) and Customs and Border Protection (CBP). Discussions of a third reconciliation package intensify the crowded agenda lawmakers face in the months ahead, intensifying pressure to resolve agricultural priorities within a limited window.

NMPF is actively engaged across all these fronts, working to ensure that dairy’s voice is heard. That effort will be on full display during the National Young Cooperators Dairy Policy and Legislative Forum, set for June 8 to 10 in Washington, D.C., where the next generation of dairy leaders will meet directly with policymakers to advocate for the industry.

With multiple legislative tracks converging, this summer represents a critical moment to secure meaningful policy wins for dairy producers nationwide.

 


This column originally appeared in Hoard’s Dairyman Intel on June 1, 2026.

Labor Looms Large. Farmers Need Action

Heading into another harvest season, no policy issue looms larger in agriculture than the acute, worsening shortage of workers on American farms.

An independent analysis of Labor Department data suggests that the U.S. agricultural workforce decreased by 7% between March and July. Well-publicized stories of aggressive immigration enforcement, including on dairies, can’t help but raise concerns.

The need for a stable, secure workforce is certainly top-of-mind in dairy, where in some ways the shortage is even more challenging because of milk production’s year-round nature. Many dairy farmers rely on foreign-born labor to care for animals, operate complicated equipment, and the physical rigors of chores that goes on day and night. With the U.S. border effectively closed, with many workers returning to their home countries, and with more intense immigration enforcement, the finances and futures of many dairies are less certain now than they would be with a solid immigration policy that brought reassurance to anxious farmers.

And that’s why, on this politically and emotionally difficult issue, we’re working with both the administration and with lawmakers to find solutions that put the dairy workforce, and dairy farms across America, on sound footing moving forward.

The hard-working folks who contribute to dairy farms and rural economies have documents. They’ve been on these farms 10, 15, 20 years. Meanwhile, dairy farmers have done their best to navigate the less than perfect process of immigration documentation requirements as they pursue the necessity of having employees on their farms.

But the lack of an adequate visa program that meets dairy’s needs injects unnecessary risk and uncertainty into the foreign-born workforce that’s necessary to fill positions that native-born Americans have time and again proven unwilling to do. The current H-2A program for seasonal workers doesn’t meet year-round needs, and simply churning through workers every six months for positions that require specialized skills and knowledge of animals—who can be as idiosyncratic as people—is a recipe for a failed business. If you work on a dairy farm, you are unquestionably a skilled worker.

People who know agriculture and the unique needs of dairy farmers understand this; we’re not lacking for advocates in Washington. Secretary Brooke Rollins has been a vocal supporter of a stable workforce. Secretary of Labor Lori Chavez-DeRemer has shown a great grasp of dairy’s needs and a willingness to hear what we have to say. President Trump also has made encouraging statements that show his understanding that not all foreign-born workers need to be included in the same dragnet meant to expel criminals from U.S. soil.

On the congressional side, we’re excited to see House Agriculture Committee Chairman GT Thompson working on legislation that would modernize the H-2A program to recognize dairy’s unique labor needs. Chairman Thompson has been a tireless advocate for dairy farmers and their cooperatives, and has the ability, through ag-labor reform, to help solve one of the longest-running challenges for farmers. We’ve been thrilled to speak with him on proposed legislation, and we certainly stand ready to throw our full weight behind it as it moves forward.

To avoid empty store shelves or greater reliance on imported foods, we need solutions. In the end, the most lasting solution to agricultural labor challenges needs to come from Congress and better law, even more so than any help that can come from the executive branch. But even then, the power of the executive is meaningful—this Congress is much more likely to act with a positive signal of support from the president. Many members of Congress are eager for this. We’re hoping to see it too.

The last time we passed major immigration legislation in this country was in 1986. We are painfully aware of previous reform efforts that, despite every effort by agricultural interests, failed to pass Congress. Let there be no illusions here, it will require an enormous effort in order to bring success. But at the end of the day, we’ve got to figure out a way to have a program that works for us, and we’ve got to get Congress engaged on this. Finding immigration solutions for dairy is important to the nutrition of Americans, the livelihoods of rural communities, and the continued promise of America as a land of opportunity for those who want to work hard and play by the rules.

As a nation, we can do better, and we need to do better. Dairy promises to do its part.


Gregg Doud

President & CEO, NMPF

 

NMPF’s Castaneda talks trade, immigration and what’s next


NMPF Executive Vice President, Policy Development & Strategy Jaime Castaneda shares with Dairy Radio Now listeners how NMPF has been working with the Trump administration on pressing trade issues and immigration, and how NMPF advocates for U.S. dairy.

‘Beautiful’ Bill Wins Mark Dairy Legislative Progress

  • Obtained long-term dairy safety net and conservation funding in the One Big Beautiful Bill Act
  • Won funding and authorization for mandatory dairy processing cost surveys
  • Advocated successfully for permanent Section 199A tax deduction for farmers and cooperatives
  • Elevated dairy’s unique ag labor needs amidst political uncertainty

NMPF worked tirelessly this year to secure success for dairy farmers and their cooperatives in the 2025 budget reconciliation package, also known as the One Big Beautiful Bill Act. The package’s enactment into law by President Trump on July 4 also included the first new farm bill spending since 2018. The dairy industry welcomed provisions within the legislation that provide certainty to producers and their cooperatives.

New investments include a reauthorized Dairy Margin Coverage program through 2031 that updates the program’s production history calculation. NMPF also lauded dedicated funding for USDA to conduct mandatory processing plant cost surveys every two years and report the results to dairy stakeholders, a key part of its Federal Milk Marketing Order modernization planning that required congressional action outside USDA’s new order implemented in June. These cost studies will inform future milk pricing conversations by giving all stakeholders uniform, transparent pricing information.

The congressional spending legislation also reinvested the remaining Inflation Reduction Act conservation dollars into the Farm Bill baseline, an NMPF-backed policy that will make more funds available for dairy farmers and their cooperatives to use conservation programs like the Environmental Quality Incentives Program and the Regional Conservation Partnership Program. NMPF celebrated an adjusted gross income (AGI) waiver that allows producers whose AGI is over $900,000 to use conservation programs as long as 75% or more of their income comes from farming, ranching, or forestry-related activities. Finally, the package included new trade promotion funding based on current programs that return well over $20 in export revenue for every dollar invested in the programs.

NMPF also succeeded in making the Section 199A tax deduction permanent, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives. A permanent Section 199A helps farmer cooperatives stay competitive in today’s marketplace.

Beyond the tax and spending law, work continues toward another longtime priority: ag labor reform that gives dairy farmers access to the H-2A visa program and provides stability for current dairy farm workers and their families.

This year, the Trump Administration has prioritized immigration enforcement while key officials, including President Trump himself as well as Agriculture Secretary Brooke Rollins, have stated the need to address agriculture’s workforce needs. NMPF has met with key individuals at the White House, USDA, and the Department of Labor to highlight the dire workforce uncertainty facing America’s dairies and responding to Beltway misconceptions about farm labor. Paired with dozens of meetings with members of Congress, NMPF continues to build momentum to bring relief to farmers on ag labor as soon as possible.

Many members of Congress have advanced NMPF’s message on ag labor. Members of both parties signaled their desire to work with the Trump Administration on this topic at a House Agriculture Committee hearing with Secretary Rollins in June. House Agriculture Committee Chairman Rep. GT Thompson, R-PA, made a compelling case regarding the importance of current farm workers. Rep. Dusty Johnson, R-SD, carried a message directly from NMPF’s June Board Meeting and emphasized dairy farmers’ anxieties surrounding the current workforce situation.

NMPF will continue to push for progress on ag labor and other priorities in the 119th Congress for the betterment and prosperity of dairy farmers and the cooperatives they own.

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.

Flurry of Ag Labor Reform Work Closes Out Congress

NMPF joined with other agricultural organizations and farmworker groups in one final concerted effort in December to enact agricultural labor reform by the end of 2022, an effort that ultimately stalled but may create a framework for future progress.

Since March 2021, Senators Michael Bennet (D-CO) and Mike Crapo (R-ID) had been working to negotiate a bipartisan agreement for a Senate ag labor reform bill that would build upon and improve the House-passed Farm Workforce Modernization Act. The two Senators had made progress toward a bipartisan compromise bill by December – an effort supported in a letter signed by more than 350 ag organizations sent Dec. 6 – but were unable to resolve all issues needed to introduce a bipartisan measure.

From those discussions, Senator Bennet used the points of agreement he had come to with Senator Crapo as the starting point for a Bennet-only ag labor reform bill. That bill, the Affordable and Secure Food Act, gained NMPF’s support by addressing dairy’s two overarching workforce needs – providing protection for current workers and their families, and providing dairy access to the H-2A program – in spite of other weaknesses in the bill, such as its cap on the number of year-round worker visas.

NMPF participated in Sen. Bennet’s press conference announcing the bill’s introduction Dec. 15, and NMPF’s Claudia Larson joined a panel discussion broadcast by Agri-Pulse which focused on ag labor reform and the Affordable and Secure Food Act. In addition to NMPF-targeted outreach to numerous Senate Republican offices, NMPF also continued working with the Agricultural Workforce Coalition – an umbrella organization representing farm groups – to send a clear message to Senate leadership that ag-labor reform is urgent and necessary.

Those efforts fell short. Ultimately, Sen. Bennet’s measure was not included in the government spending bill to which it needed to be attached so it could receive a Congressional vote in 2022. However, the reform efforts and public pressure built in the 117th Congress have left a nationwide impression on the urgent need for ag labor reform. These efforts have laid an important foundation for future work in DC, and NMPF will continue leading the charge to ensure dairy’s needs are represented in any future reforms.