Policy engagement, transparency and leadership will continue to shape how producers navigate

JUNEAU, Wis. — From school milk and labor reform to milk pricing transparency and the day-to-day economics of survival, the American Dairy Coalition’s 2025 annual business meeting reflected where dairy farmers find themselves heading into 2026 — squeezed by sharply declining milk prices and higher input costs, wary of uncertainty, but still pressing forward on policy priorities that could shape what comes next. The meeting was held on December 11th in a webinar format.

ADC Vice President Greg Jans, a Minnesota dairy farmer, welcomed members joining from coast to coast and emphasized the importance of working together through advocacy and engagement.

House Agriculture Committee Chairman GT Thompson set the policy tone, stepping away briefly from a hearing he was chairing to provide an update. He predicted the final House passage of the Whole Milk for Healthy Kids, which occurred on Dec. 15, sending the bill President Trump.

Thompson urged dairy farmers and local advocates to focus on what comes next. Drawing on his experience as a former school board member, he emphasized that local advocacy will be critical to turning federal policy into real-world demand.

He also tied the issue to broader rural economics, observing the disappearance of dairy farms can lead to the disappearance of local businesses that support them, shrinking the tax base for rural schools.

Beyond school milk, Thompson reviewed dairy-related provisions in the reconciliation package (One Big Beautiful Bill Act or H.R. 1), describing them as meaningful steps to stabilize dairy’s safety net.

Updates to Dairy Margin Coverage (DMC) include modernization of feed cost factors tied to corn, alfalfa and soybeans, expansion of eligible milk coverage from 5 million to 6 million pounds, updates to production history, and premium discounts for farmers who enroll for all five program years. He also highlighted efforts to make crop insurance more affordable for farms raising their own feed, expanded funding for trade promotion programs, and tax policy changes he said will exempt roughly 97% of farms from estate taxes — a key issue for generational transition.

Labor availability, a constant pressure for dairy farms, was another focus. Thompson summarized the work of a bipartisan House agricultural labor task force that spent two years gathering testimony across commodities and developing recommendations, now available through the House Agriculture Committee website.

While labor policy does not fall directly under the committee’s jurisdiction, he said a discussion draft of legislation is expected early in 2026 and urged farmers to review it and provide feedback.

Professional staff from the U.S. Senate Agriculture Committee followed with updates representing Chairman John Boozman. Labor remains one of the top concerns raised by farmers. It was noted that staff are cautiously optimistic that legistation could ease some cost pressures, even as it falls short of addressing dairy’s year-round labor needs.

Kate Covington highlighted $9 million secured in H.R. 1 for mandatory dairy product cost and yield surveys. She confirmed the funding is set aside and USDA implementation is underway, though rulemaking will take time. The surveys are intended to bring greater transparency to processor costs that factor into federal milk pricing formulas, including the make allowances deducted before farmers are paid.

Congress recently passed a one-year farm bill extension, said Covington, providing breathing room to pursue a full five-year bill in 2026. She also emphasized continued engagement, noting that Senate Agriculture Committee staff rely on groups like the American Dairy Coalition to flag emerging issues and provide feedback.

“Our doors are always open,” Covington said.

The broader political and economic picture was addressed by American Farm Bureau Managing Director for Government Affairs Ryan Yates. Dr. John Newton, vice president of Public Policy and Economic Analysis, had planned to speak but was unable to participate due to a last-minute conflict.

Yates credited H.R. 1 with delivering major tax and safety-net wins while acknowledging high input costs and weak commodity prices leave much of the farm economy “upside down.” He also pointed to trade negotiations and the upcoming renegotiation of USMCA as key issues for dairy market access.

The meeting closed with a shift from policy mechanics to perspective. Peggy Coffeen, founder of Up Level Dairy and host of the Up Level Dairy Podcast, challenged producers to find and articulate their “why,” noting clarity of purpose helps farms navigate difficult markets, labor challenges and generational transitions, while also revealing new opportunities.

ADC thanked Standard Dairy Consulting, Family Insurance Center, and Prairie Farms Cooperative for sponsoring the event. As Jans closed the meeting, the message was clear: The road ahead for dairy remains challenging, but policy engagement, transparency and leadership will continue to shape how producers navigate what comes next.