The National Milk Producers Federation, the largest U.S. dairy-farmer organization, commended the U.S. Senate for the bill’s dairy and agriculture provisions, which will create greater financial certainty for producers. NMPF is hopeful that the House will take up the bill and get it to the president’s desk quickly.

“Dairy farmers are grateful for legislation that will create several key opportunities for dairy,” said Gregg Doud, NMPF president and CEO in a statement. “Following last month’s successful vote in the House, we are excited that the Senate’s legislation also positions these investments to benefit dairy farmers and the cooperatives they own. We hope they are enacted into law as swiftly as possible.”

Congress is attempting to pass the measure prior to the July 4 Congressional recess.

The Senate Agriculture Committee’s portion of the bill includes numerous NMPF-backed requests that would strengthen dairy and farm policy, including:

• 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;
• Folding remaining Inflation Reduction Act conservation dollars into the farm bill 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 Senate Finance Committee’s portion of the bill, released on June 16, makes permanent the Section 199A tax deduction, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

NMPF is grateful to House and Senate committee leaders, including Agriculture Committee Chairmen GT Thompson, R-PA, and John Boozman, R-AR and tax-writing committee chairs Rep. Jason Smith, R-MO, and Sen. Mike Crapo, R-ID, and other members who have authored these provisions in the bill moving toward President Trump’s desk.