The National Milk Producers Federation is pleased with budget items passed by the House and sent to the Senate.
Alan Bjerga tells Brownfield the U.S. House’s so-called big, beautiful bill for budget reconciliation has things dairy farmers need, especially when action on the next farm bill is “iffy” at best. “If you take a look at this legislation, you will get the Dairy Margin Coverage Program extended through 2031, which creates a lot of certainty for farmer financial planning. You also get an update to the production history numbers which really has been needed.”
Bjerga says a very important part of the federal milk marketing orders is addressed in the House bill, and that’s requiring mandatory processor cost-of-production surveys that can be used to calculate make allowances. “Especially in the upper Midwest, this is a big deal for farmers in terms of knowing what production costs actually are. It was a big point of contention in that debate, but there wasn’t good data.”
Bjerga says the legislation also extends the Section 199A tax deduction dairy farmers and processors rely heavily on and losing that deduction at the end of 2025 puts the dairy industry at a competitive disadvantage.
The House bill is now up for consideration in the U.S. Senate, where several changes are expected.
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