The United States Department of Agriculture (USDA) has taken action to cease the use of dairy checkoff assessment funds for Environmental, Social, and Governance (ESG) initiatives, redirecting commodity research and promotion programs strictly toward market expansion.
Under the directive issued by US Secretary of Agriculture Brooke L. Rollins, the USDA’s Agricultural Marketing Service will oversee checkoff allocations to ensure mandatory producer assessments are not deployed for greenhouse gas reduction projects or net-zero targets. The order specifically targets ESG activities previously pursued through the Innovation Center for U.S. Dairy, whilst maintaining administrative functions and core promotional operations.
Authorized under the Dairy Production Stabilization Act, checkoff programs are funded via mandatory assessments levied on American agricultural producers to support nutrition education, market research, and demand creation. The policy adjustment extends across all commodity checkoff boards to prevent assessment revenues from funding external ESG frameworks.
Key operational metrics and economic findings cited by the USDA include:
- Policy enforcement: Immediate termination of checkoff funding for ESG-related initiatives across dairy and broader commodity research and promotion boards.
- Overall Return on Investment (ROI): Independent economic evaluations by Texas A&M University demonstrate an aggregate all-dairy ROI of $5.93 (£4.52) for every dollar expended on market promotion activities.
- Product-specific returns: Promotional ROI metrics are calculated at $4.16 for fluid milk, $2.67 for cheese, $24.85 for butter, and $12.82 for export market development.
- Broader commodity board ROIs: Comparative returns across other USDA checkoff programs include $13.41 for beef, $6.40 for cotton, and $33.54 for softwood lumber per dollar invested.
Brooke L. Rollins, US Secretary of Agriculture, stated: “American dairy producers, cattle ranchers, and farmers pay checkoff assessments so those dollars can build demand for their products—not bankroll radical climate agendas that raise costs and constrain production. Today’s action returns the Dairy Checkoff and all research and promotion programs to their core mission: expanding markets and supporting the hardworking men and women who feed this country. We will not allow producer dollars to underwrite mandates that put American agriculture at a disadvantage.”
