ADC BULLETIN: USDA announced this afternoon a major change in how mandatory dairy checkoff dollars (and other Research and Promotion Order checkoff programs) may be used, ending checkoff funding for initiatives and activities related to ESG, Net-Zero, and Greenhouse Gas commitments, like those pursued through the Innovation Center for U.S. Dairy and FARM ES program.

For dairy farmers who have long questioned how their mandatory 15-cent checkoff assessment became intertwined with environmental commitments, FARM ES, supply-chain leverage on sustainability, and on-farm data collection, this is a significant development. USDA says dairy checkoff dollars must return to their statutory mission of promotion, research and nutrition education to strengthen U.S. dairy markets.

As additional information becomes available, we'll keep you posted on how this may affect FARM ES, on-farm proprietary data collection, and other activities and potential impacts.

USDA ends mandatory farmer funding of ESG Commitments in Dairy Checkoff

Sec. Rollins: 'Today's action

returns the Dairy Checkoff

and all research and promotion

programs to their core mission...'

WASHINGTON, D.C., September 17, 2026 – Today, U.S. Secretary of Agriculture Brooke L. Rollins reaffirmed the Administration’s commitment to American farmers, announcing the U.S. Department of Agriculture’s (USDA) decisive action to end dairy checkoff funding for Environmental, Social, and Governance (ESG) overregulation. This action aligns research and promotion activities with the Department’s priorities and the original mission of the checkoffs. USDA remains committed to ensuring that every dollar collected from American producers serves American agriculture for the better.

“American dairy producers, cattle ranchers, and farmers pay checkoff assessments so those dollars can build demand for their products - not bankroll radical climate agendas that raise costs and constrain production," said U.S. Secretary of Agriculture Brooke L. Rollins. "Today's action returns the Dairy Checkoff and all research and promotion programs to their core mission: expanding markets and supporting the hardworking men and women who feed this country. We will not allow producer dollars to underwrite mandates that put American agriculture at a disadvantage.”

Excerpt below from USDA Memo dated today, September 17, 2026 about termination of mandatory ESG-related checkoff funding

III. Prohibition on Checkoff Support for Solicitation of ESG Commitments

1. No funds from any checkoff program overseen by AMS should be used to support the solicitation or enforcement of mandatory ESG commitments, pledges, scorecards, reporting requirements, or similar frameworks.

2. This prohibition covers activities that condition market access or participation on adoption of ESG metrics, emissions targets, or related non-statutory standards that disadvantage U.S. producers.

Read full USDA news release here

Read full USDA memo here

Read USDA Secretary Rollins' letter to National Dairy Board here

American Dairy Coalition

1.920.288.2322

info@americandairycoalitioninc.com

www.americandairycoalitioninc.com