USDA ends funding for climate programs in the US dairy sector

The US Department of Agriculture (USDA) is ending the use of Dairy Checkoff funds for climate-related initiatives in the dairy sector. The decision covers projects linked to emissions reductions, net-zero goals, climate neutrality and certain ESG activities.

Programs affected include FARM Environmental Stewardship, the U.S. Dairy Net Zero Initiative, the Greener Cattle Initiative, Scope 3 emissions accounting and other sustainability-related projects. USDA says checkoff funds should primarily support production, farmer profitability and market expansion.

Dairy Management Inc., which administers the dairy checkoff program, said it will review existing projects and contracts and, where necessary, modify or terminate activities to comply with USDA requirements.

One of the largest programs potentially affected is FARM. Participants in the broader FARM Program represent around 99% of US milk production, although some of its environmental components are voluntary.

USDA has also ordered a review of 21 other commodity checkoff programs. The new approach to funding climate and ESG initiatives could therefore extend to other segments of the US agricultural sector.

Tags: USDA, Milk, USA, dairy sector