Big Changes Ahead for U.S. Dairy Policy in 2024

By Andi Anderson

2024 heralds a momentous period for U.S. dairy policy, promising a cascade of awaited reforms and updates finally making headway. Though momentarily sidelined by the 2018 farm bill extension, these priorities are set to reemerge, navigating through the formal rulemaking channels. 

Here's a glimpse of the anticipated changes for dairy producers: 

Pricing Adjustments: There's a push for modifications in the milk pricing system, advocating for mandatory and audited surveys of processor costs and yields, along with a shift back to the "higher-of Class One mover" pricing model. These alterations aim to bolster fairness and transparency for dairy farmers. 

Processor Cost Audits: The demand for mandatory audits of processor costs and yields seeks to illuminate milk processing intricacies, potentially identifying avenues for improvement and shared costs. 

Modified Block Voting: This proposed voting system intends to empower smaller dairy farms, ensuring their voice in policy decisions, possibly fostering more equitable outcomes for all producers. 

Dairy Margin Coverage (DMC) Program Updates: Proposed changes focusing on production history adjustments and tier one coverage limitations could enhance the program's effectiveness and accessibility for a broader spectrum of dairy farms. 

While specifics and timelines of these changes finalize, dairy farmers can stay updated by following the American Farm Bureau Federation (AFBF) and USDA. The AFBF actively advocates these policy shifts and will provide ongoing updates. 

Adapting to these changes is pivotal for long-term success in the evolving dairy landscape. Stay informed, engage in the policy process, and participate in shaping the transformative journey of the U.S. dairy industry in 2024. 

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