USDA Ends Mandatory Farmer Funding of ESG Commitments in Dairy Checkoff

American dairy producers are no longer subject to Environmental, Social, and Governance (ESG) overregulation.

USDA

WASHINGTON, D.C. (RFD News) — USDA is ending dairy checkoff funding for certain environmental, social, and governance (ESG) initiatives, including projects tied to greenhouse gas and net-zero targets.

The Dairy Checkoff is funded through mandatory assessments and supports promotion, research and nutrition education intended to strengthen markets for U.S. dairy. The Innovation Center for U.S. Dairy, which was established through the checkoff, has also pursued sustainability initiatives that include greenhouse gas reduction and net-zero goals.

Under the new direction, checkoff funds will no longer support those ESG-related projects, although USDA says necessary administrative functions can continue. The department is also directing the Agricultural Marketing Service to ensure funds from other commodity research and promotion programs are not used to advance ESG mandates.

Agriculture Secretary Brooke Rollins said the change is intended to refocus checkoff spending on expanding markets and supporting producers.

USDA also pointed to an independent Texas A&M analysis of the broader dairy checkoff program that found an aggregate return of $5.93 for every dollar invested in checkoff activities.

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