The Senate Agriculture Committee’s portion of the bill is particularly impactful, incorporating numerous NMPF-backed requests designed to strengthen dairy policy. Key among these is the renewal of the Dairy Margin Coverage (DMC) program through 2031, providing long-term risk management for farmers. Additionally, the bill updates DMC’s production history calculation, basing it on the highest production year from 2021, 2022, or 2023, and extends a 25% premium discount for producers who lock in coverage for the bill’s duration, significantly enhancing dairy economics.

Beyond direct farm support, the legislation introduces mandatory funding for USDA to conduct biennial dairy processing cost surveys. This initiative aims to provide more accurate data, which is essential for informing future “make allowance” conversations that impact processor profitability and ultimately, farmer payouts. Furthermore, the bill folds remaining Inflation Reduction Act conservation dollars into the farm bill baseline, ensuring increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program, promoting sustainable agribusiness practices.

The Senate’s proposed budget also prioritizes market development and animal health. It allocates new funding for trade promotion programs, leveraging existing initiatives that have historically yielded significant returns—over $20 in export revenue for every dollar invested. Crucially, the bill increases funding for animal health programs, which are vital for preventing, controlling, and eradicating devastating animal diseases, exemplified by the recent outbreak of H5N1 in dairy cattle, safeguarding herd health and milk production.