September 18, 2024

California Dairy Campaign Opposes USDA Make Allowance Increases

Calls for Mozzarella to be Factored into

Class III Milk Price

Thank you to all who submitted comments on the proposed make allowance increases that are part of the United States Department of Agriculture (USDA) Federal Milk Market Order recommended decision. California Dairy Campaign submitted extensive comments in opposition to the USDA's proposal to increase make allowances and urged the USDA to adopt its proposal #6 to add mozzarella to the Class III milk pricing formula and support other changes that would improve producer milk prices.


USDA recommended increasing the amount dairy farmers pay processors to process milk into dairy products based on voluntary unaudited cost studies representing a small fraction of the processing plants nationwide.


The current Class III make allowance totals $3.17 per cwt and will increase to over $4 per cwt if USDA’s recommended increases are adopted. The Class IV make allowance totals $2.17 per cwt and will increase to nearly $3 per cwt if USDA’s recommendations are adopted.


California Dairy Campaign has been actively involved in the USDA Federal Milk Market Order hearing process since it began last year. CDC strongly opposed any increase in the make allowances during its testimony before USDA last summer in Carmel, Indiana. CDC proposed adding mozzarella to the Class III milk price formula so that dairy farmers’ milk checks include the higher value, yields, and volumes of mozzarella, the largest and growing segment of today’s cheese market. The current mozzarella price totals $2.33 per pound, and the moisture content or amount of water is 20 percent to 58% higher, resulting in substantially higher yields.


California is the federal order with the greatest losses under the proposed USDA changes.

California Dairy Campaign's Comments on USDA's Recommended Decision
View All 127 Comments to USDA

California Leaders Speak to

Top Lawmakers in Washington, DC

California Farmers Union President George Davis and Vice President Mark McAfee joined nearly 300 farmers and ranchers from across the United States in Washington last week to call for dairy and farm policy reforms in the next farm bill. They stressed its importance given the current challenges faced by California's family farmers and ranchers. 


The California delegation met with members and staff from the Congressional Offices of Representatives Aguilar, Duarte, Huffman, Khanna, Matsui, Panetta, Porter, Valadao, and other offices, calling for dairy policy reforms. They warned lawmakers that the USDA federal milk marketing order (FMMO) proposed changes could lead to substantial increases in allowances, making milk processing less responsive to changes in profitable market demand. Although milk prices today have improved, there remains uncertainty about the future because small changes in milk supply and demand can significantly impact milk prices paid to dairy producers. California Dairy Campaign and California Farmers Union have joined National Farmers Union to support a farmer-led growth management plan of incentives to match milk production with profitable market demand to improve milk prices paid in the long term.


National Farmers Union members participated in hundreds of meetings with members of Congress throughout the week, met with more than a dozen federal agencies, and heard from prominent government officials, including Secretary of Agriculture Tom Vilsack, Environmental Protection Agency (EPA) Administrator Michael Regan, Assistant Attorney General for the Antitrust Division Jonathan Kanter, and Federal Trade Commission (FTC) Chair Lina Khan. 


National Farmers Union members brought NFU’s ongoing Fairness for Farmers campaign to Washington, outlining how a lack of competition in the agriculture sector harms family farmers and ranchers. Secretary Vilsack addressed Farmers Union members, offering insights into the USDA’s ongoing efforts to support American family agriculture and ensure their continued viability in today’s challenging environment. Leaders from other federal agencies also provided policy updates about Farmers Union priorities.  


“The Environmental Protection Agency views the agriculture sector as a key partner in achieving our climate goals,” said EPA Administrator Michael Regan. “Farmers play an essential role in creating smart and sustainable climate solutions, all while delivering a resilient and abundant food supply. EPA will continue supporting farmers and ranchers in their efforts to reduce emissions, sequester carbon, and protect our environment.”  


“Promoting honest and competitive agriculture markets means farmers can get a fair shake and Americans can enjoy a more affordable and resilient food system,” said Chair of the FTC Lina Khan. “I’m grateful to learn from National Farmers Union about the challenges facing family farms. From protecting farmers’ right to repair their equipment to combatting monopolistic tactics in the marketplace, FTC will keep fighting to ensure farmers can enjoy the economic liberty that fair and honest competition provides.” “…agricultural enforcement has been a huge priority of ours at DOJ and it will remain one going forward,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “That’s because the consequences of concentration in agricultural ripple out. It affects us all.” 


California Dairy Campaign and California Farmers Union advocacy efforts will continue ensuring that lawmakers hear the voices of family farmers and keep dairy and farm policy reform at the forefront of legislative priorities. 

California HPAI Update

September 17, 2024: Highly Pathogenic Avian Influenza (HPAI) Confirmed in Two Additional Dairies in California

SACRAMENTO, CA – Following an investigation by the California Department of Food and Agriculture (CDFA) and rapid disease detection by California Animal Health and Food Safety Laboratory System (CAHFS), the U.S. Department of Agriculture’s (USDA) National Veterinary Services Laboratories (NVSL) has confirmed highly pathogenic avian influenza (HPAI) in two (2) new dairies, for a total of ten (10) affected dairies in Central California. The two new HPAI-confirmed dairies were in a group targeted for testing due to elevated risks from their recent connections with the initial affected premises. These recent findings are not unexpected and support CDFA’s implementation of current surveillance strategies with the goal of finding affected farms as early as possible. Early detection provides the opportunity to work with farms to quickly implement enhanced biosecurity, cow care, and employee protection.

USDA Now Accepting Applications for

Expanded Emergency Livestock Assistance Program to Help Dairy Producers Offset Milk Loss Due to H5N1

Confirmed H5N1 Positive Test Results Required for Recovery Assistance 

– The U.S. Department of Agriculture (USDA) is now accepting applications through its updated Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP) to provide financial assistance to eligible dairy producers who incur milk losses due to Highly Pathogenic Avian Influenza, also known as H5N1 infection in their dairy herds. USDA’s Farm Service Agency (FSA) expanded ELAP through the rule-making process to assist with a portion of financial losses resulting from reduced milk production when cattle are removed from commercial milking in dairy herds having a confirmed positive H5N1 test. Positive test results must be confirmed through the USDA’s Animal and Plant Health Inspection Service (APHIS) National Veterinary Services Laboratories (NVSL)



HPAI Loss Assistance from USDA

Farm report: Michigan, US: What it’s like to have bird flu in the dairy herd

News About HPAI Impact on One Michigan Dairy Farm

For more information contact

California Dairy Campaign Field Representatives

Joe Melo at 209-216-7615

Lisandra Vitorino at 209-632-0885

Order Prevents Enforcement Action in

Tulare Subbasin

By Caleb Hampton, Ag Alert

A Kings County judge ruled Friday that the California State Water Resources Control Board violated rulemaking laws and exceeded its authority by making unachievable demands of water managers in the Tulare Lake Subbasin when it placed the subbasin on probation in April.

Tulare Lake became the first subbasin put on probation under California’s Sustainable Groundwater Management Act when the water board voted that the subbasin’s groundwater agency had failed to develop adequate plans to bring its aquifer into balance by 2040.

On Friday, Kings County Superior Court Judge Kathy Ciuffini issued a preliminary injunction in the case, which stems from a lawsuit brought by the Kings County Farm Bureau against the water board.

The ruling extends a pause on probation requirements, which were put on hold in July by a temporary restraining order, until the case goes to trial. It gives reprieve to farmers who pump 500 acre-feet or more per year.

Under probation, they would have been required to install water meters, register their wells for $300 each, report groundwater extractions and pay $20 per acre-foot pumped. Those obligations were on top of fees imposed by water districts and groundwater sustainability agencies.


The next hearing in the case is scheduled for Jan. 10. A trial date has not been set. Read full story from Ag Alert Linked here. (Source: Ag Alert)


California Dairy Campaign opposed the State Water Board's action to place the Tulare Lake Subbasin on probation and supports efforts to improve local control of groundwater policy.


CDFA Climate Smart Agriculture Grant Sign-up

Until October 18, 2024

The signup process for the Alternative Manure Management Program (AMMP), Dairy Plus, and the Dairy Digester Research and Development program is happening now! Each program requires an application, so it’s important to start this process (engineer design, permits, talking with vendors, working with financial institutions) as soon as possible.


Contact California Dairy Campaign Field Representatives

Joe Melo and Lisandra Vitorino for more information and to get started on your application!

Contact the CDC Office at 209-632-0885.

Dairy Plus Signup Happening Now

Ongoing 2024 Grant Solicitation


The 2024 Dairy Plus Program grant solicitation round is anticipated to open this month and to have approximately $57 million available for award.

For more information, contact

California Dairy Campaign Field Representative

Joe Melo at 209-216-7615

For More Information

Contact Executive Director

Lynne McBride


California Dairy Campaign

California Farmers Union

325 Mitchell Avenue

Turlock, CA 95380

Phone: 209-632-0885

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