NMPF Lauds Dairy Policy Provisions In House AG Reconciliation Package

The National Milk Producers Federation today lauded the inclusion of critical resources in the House Agriculture Committee’s reconciliation proposal that would boost the agricultural economy and provide farmers certainty.

“We commend Chairman GT Thompson and committee members for advancing important investments that will help support and create opportunities for dairy,” said Gregg Doud, president and CEO of NMPF. “We will work with lawmakers to advance these provisions through Congress, knowing that dairy is well-served by what the House Agriculture Committee is approving.”

NMPF is pleased that the bill extends the Dairy Margin Coverage program through 2031, providing dairy producers with much-needed continuity. The package also bases the program’s production history calculation on a farmer’s highest production year out of 2021, 2022, or 2023, an update that better reflects recent on-farm production levels. The bill also funds mandatory USDA dairy processing plant cost surveys every two years, which will better inform future make allowance conversations. Finally, it includes long-term resources for important trade promotion, conservation, research, and animal health programs.

The legislation, which is expected to be approved today by the House Agriculture Committee, will ultimately be folded into a broader budget reconciliation package that will include an extension of current tax policies, among other areas. NMPF supports House Ways and Means Committee language to make the Section 199A tax deduction permanent, which will allow dairy cooperatives to continue to either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

“Whether it’s risk management or tax issues, the stakes are enormous for Congress to get the policy right in this legislation,” Doud said. “House committees have done good work this week to start major elements of this bill on the right track for dairy farmers and the cooperatives they own.”