U.S. Senators Kirsten Gillibrand (D-NY) and Susan Collins (R-ME) have introduced the Fair Milk Pricing for Farmers Act, a bipartisan effort aimed at increasing transparency in the dairy industry. The legislation would require manufacturers to report dairy processing costs every two years, ensuring that milk prices more accurately reflect production expenses.
The bill is designed to give dairy farmers, processors, and cooperatives critical cost data, helping them negotiate fairer milk prices. “New York dairy farmers deserve to be paid a fair price for their milk, and they need a milk pricing system that they can count on,” Gillibrand said. “Requiring manufacturers to report dairy processing costs on a biennial basis will give dairy producers, processors, and cooperatives the data they need to ensure that their prices accurately reflect the costs of production.”
Collins echoed the need for greater transparency, noting that dairy farmers often lack insight into how processing costs impact the prices they receive. “This bipartisan bill would increase transparency across the dairy industry by requiring processors to report the costs of turning raw milk into products like cheese, butter, and yogurt, giving farmers the information they need to advocate for fairer pricing,” she said.
The Fair Milk Pricing for Farmers Act has garnered bipartisan support in the House, where Representatives Nick Langworthy (R-NY) and Joe Morelle (D-NY) have introduced companion legislation. It has also received endorsements from key agricultural organizations, including the New York Farm Bureau, the National Milk Producers Federation, the Northeast Dairy Farmers Cooperatives, and the International Dairy Foods Association.
Industry leaders argue that increased oversight of dairy processing costs is essential to stabilizing milk prices. “Volatility in the dairy market causes uncertainty for farmers and consumers alike, leading to unfair prices for both,” Morelle said. “By giving farmers additional confidence in the dairy pricing system, the Fair Milk Pricing for Farmers Act will help create more stability in the dairy market.”
New York, one of the country’s top dairy-producing states, has been at the forefront of the push for fair milk pricing. Langworthy emphasized that many dairy farms in his district are struggling with fluctuating market conditions. “This legislation requires the USDA to stay up to date with market allowances and ensure fair milk pricing that truly reflects the costs our dairy processors are facing,” he said.
Advocates of the bill argue that mandatory, audited surveys of dairy processing costs will provide more accurate data than current voluntary reporting systems. “We support the Fair Milk Pricing for Farmers Act because it would establish mandatory audited surveys as they relate to ‘make allowances,’” said David Fisher, president of the New York Farm Bureau. “These audits would be a far better indicator of actual costs than current estimates, which are based on voluntary plant participation.”
The bill is the latest in Gillibrand’s ongoing efforts to improve dairy pricing policies. In 2024, she successfully led a bipartisan push to restore the “higher of” Class I pricing formula through the Federal Milk Marketing Order system, ensuring fairer compensation for dairy farmers. She has also championed additional measures to reform milk pricing and provide farmers with a stronger voice in industry regulations.
Supporters hope to see the bill passed swiftly to bring much-needed stability to the dairy sector. “This is critical to ensuring more accurate milk pricing, supporting continued investment in dairy, fostering innovation to meet consumer preferences, and driving overall demand for milk,” said Michael Dykes, president and CEO of the International Dairy Foods Association.
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