Bipartisan legislation aimed at fair milk pricing

U.S. Sens. Kirsten Gillibrand (D-N.Y.) and Susan Collins (R-Maine) have introduced the Fair Milk Pricing for Farmers Act, a bipartisan bill aimed at increasing transparency in dairy pricing. The legislation would require manufacturers to report dairy processing costs every two years, helping ensure that dairy farmers receive fair compensation for their milk.

“New York dairy farmers deserve to be paid a fair price for their milk, and they need a milk pricing system that they can count on,” Gillibrand said. “Requiring manufacturers to report dairy processing costs on a biennial basis will give dairy producers, processors, and cooperatives the data they need to ensure that their prices accurately reflect the costs of production.”

She emphasized that this bill builds on previous dairy pricing reforms she championed in Congress.

Collins highlighted the challenges dairy farmers face in understanding how processing costs impact their earnings.

“Maine’s dairy farmers work hard to produce high-quality milk, but they often don’t have clear information on how processing costs affect the prices they receive for their product,” she said. “This bipartisan bill would increase transparency across the dairy industry by requiring processors to report the costs of turning raw milk into products like cheese, butter, and yogurt, giving farmers the information they need to advocate for fairer pricing.”

The bill has gained strong bipartisan support in both chambers of Congress, with Reps. Nick Langworthy (R-N.Y.) and Joe Morelle (D-N.Y.) introducing companion legislation in the House. It has also received endorsements from major agricultural organizations, including the New York Farm Bureau, the National Milk Producers Federation, Northeast Dairy Farmers Cooperatives, and the International Dairy Foods Association.

Morelle underscored the importance of the legislation in addressing volatility in the dairy market.

“Volatility in the dairy market causes uncertainty for farmers and consumers alike, leading to unfair prices for both. It’s critical we take action to ensure everyone receives the fairest price possible, which is exactly what this legislation seeks to do,” he said. “By giving farmers additional confidence in the dairy pricing system, the Fair Milk Pricing for Farmers Act will help create more stability in the dairy market and support my home state of New York’s proud history of dairy production.”

Langworthy echoed the urgency of the issue, particularly for multigenerational farms struggling to stay afloat.

“New York is one of the top-producing dairy states in the nation, and the 23rd Congressional District is home to many multigenerational dairy farms who are already struggling to keep their operations going,” he said. “This legislation requires the USDA to stay up to date with market allowances and ensure fair milk pricing that truly reflects the costs our dairy processors are facing.”

David Fisher, president of the New York Farm Bureau, emphasized that the bill’s auditing requirements would provide a much-needed improvement over current voluntary reporting methods.

“We support the Fair Milk Pricing for Farmers Act because it would establish mandatory audited surveys as they relate to ‘make allowances.’ These audits would be a far better indicator of actual costs than current estimates, which are based on voluntary plant participation,” he said.

The National Milk Producers Federation also voiced strong support for the bill, citing its potential to improve the accuracy of dairy pricing adjustments.

“Regular studies on the costs of processing raw milk into manufactured dairy products would make future dairy pricing conversations more accurate and based on better information,” the organization stated. “We look forward to working with the bill’s sponsors to enact it into law this year, as soon as possible.”

Gillibrand has long advocated for dairy pricing reforms. In 2023, she reintroduced the bipartisan Dairy Pricing Opportunity Act, which would require the USDA to hold national hearings on Federal Milk Marketing Orders. Her past efforts have also included calling on the U.S. Government Accountability Office to evaluate federal milk pricing and leading a successful push for the USDA to restore the “higher of” Class I pricing formula in November 2024.