No More Mandatory ESG Fees For... Note

No More Mandatory ESG Fees For Dairy Farmers, USDA Rules

The U.S. Department of Agriculture has ended environmental, social, and governance initiatives within the National Dairy Promotion and Research Program. This program, funded by dairy farmers' assessments, previously supported ESG projects like greenhouse gas reduction targets. The USDA stated that this action realigns checkoff funds with the program's core mission of strengthening markets for American dairy. Dairy farmers contribute 15 cents per hundredweight, and importers pay 7.5 cents, to fund this program. The Innovation Center for U.S. Dairy, operating under the program, had heavily invested in ESG-related activities. Secretary Brooke Rollins cited specific initiatives like the U.S. Dairy Net Zero Initiative as examples of these projects. This decision follows a lawsuit filed by the Wisconsin Institute for Law & Liberty, which argued that checkoff funds were being used for costly and unconstitutional mandates. The institute welcomed the USDA's action, calling it a victory for dairy farmers. Furthermore, the USDA has directed the Agricultural Marketing Service to review other commodity checkoff programs. These programs, funded by mandatory assessments from producers, must now also exclusively serve to strengthen agricultural markets. The USDA emphasized that producer dollars should not bankroll agendas that raise costs or constrain production.
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