In news affecting dairy farmers' bottom lines at the start of June 2025:
- Senate Ag Committee advances Whole Milk for Healthy Kids Act
- Darigold opens largest dairy processing facility in the Northwest
- Farmer sentiment reaches a four-year high in May
- GDT index down again
- June FSA interest rates mostly higher
- IDFA donates more than 4,600 frozen treats to White House Summer Social
Senate Ag Committee advances Whole Milk for Healthy Kids Act
The U.S. Senate Committee on Agriculture, Nutrition and Forestry Chairman John Boozman (R-Arkansas) and Ranking Member Amy Klobuchar (D-Minnesota) applauded committee passage of the Whole Milk for Healthy Kids Act, legislation that would allow schools participating in the National School Lunch Program (NSLP) to resume offering whole and reduced-fat milk while also expanding the option for nutritious nondairy beverages. Currently, school meal rules in effect since 2012 only allow 1% and fat-free milk options.
The bill was amended and approved by voice vote with no objections.
“Passing the Whole Milk for Healthy Kids Act will allow more schoolkids to access essential nutrients in their diets, and that’s something everyone can get behind,” said National Milk Producers Federation (NMPF) President and CEO Gregg Doud.
The Whole Milk for Healthy Kids Act:
- Allows schools participating in the NSLP to offer flavored and unflavored organic or nonorganic whole, reduced-fat, low-fat and fat-free fluid milk and lactose-free fluid milk as well as nondairy beverages that meet the nutritional standards established by the USDA secretary.
- Authorizes parents or legal guardians, in addition to licensed physicians, to provide a written statement for their student to receive a nondairy substitute for fluid milk at school.
- Excludes fluid milk from counting toward the requirement that the saturated fat content of a school meal be less than 10% of the meal’s total calories.
“Milk is an important part of a balanced diet that delivers critical nutrients students need for growth and development. … I’m proud to lead the committee in advancing this bipartisan solution to expand milk options and encourage increased dairy consumption while supporting America’s hardworking dairy producers,” Boozman said.
The Whole Milk for Healthy Kids Act was approved by the U.S. House Education and Workforce Committee with a strong, bipartisan vote of 24-10 in February. The bill now awaits passage by the full Senate and the full House of Representatives.
Darigold opens largest dairy processing facility in the Northwest
Darigold Inc., the Seattle-based processing and marketing arm of the Northwest Dairy Association (NDA) and one of the nation’s largest dairy producers, has officially begun receiving and processing milk at its new facility in Pasco, Washington.
The new plant will process up to 8 million pounds of milk per day from more than 100 regional farms, producing butter and powdered milk products for customers across the U.S. and in some 30 countries worldwide.
The Pasco project represents more than $1 billion in investment in Washington’s dairy sector, including both construction and on-farm expansion. It is expected to employ nearly 200 people directly and to support up to 1,000 jobs in total through transportation, warehousing and farmworkers.
While the facility is now receiving and processing milk, Darigold will continue to finalize work on production equipment over the coming months. The company expects to begin producing powdered milk from the first of two milk dryers and butter by early August. A second dryer is slated to come online by year’s end.
Farmer sentiment reaches a four-year high in May
Farmer sentiment in May climbed to its highest level since May 2021, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Key reasons behind the sentiment improvement were a much more optimistic view of U.S. agricultural export prospects, combined with a less negative view of tariffs’ impact on 2025 farm income than respondents provided in either March or April,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
The survey identified a potential emerging issue in that one out of four crop and livestock producers who typically hire nonfamily members said the U.S. administration’s policy to reduce immigration could increase their difficulty in hiring adequate labor for their farm operation.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released June 3, reflect ag producer outlooks as of May 12-16.
GDT index down again
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is down again, this time by 1.6% in the auction held June 3.
Compared to the previous auction, prices for individual product categories were mostly lower. Buttermilk powder and cheddar cheese were down 6.1% and 4.2%, respectively. Whole milk powder, lactose and skim milk powder were also down by 1.1% to 3.7%. Mozzarella and anhydrous milkfat were both up, by 2.3% and 1.4%, respectively. Butter had no change.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is June 17.
June FSA interest rates mostly higher
The announced interest rates on loans through the USDA’s Farm Service Agency (FSA) are slightly higher after trending down for the last two months. As we begin June 2025, interest rates for operating and ownership loans (compared to May) are as follows:
- Farm operating loans (direct): 5%, down from 5.125%
- Farm ownership loans (direct): 5.75%, up from 5.625%
- Farm ownership loans (direct, joint financing): 3.75%, up from 3.625%
- Farm ownership loans (down payment): 1.75%, up from 1.625%
- Emergency loan (amount of actual loss): 3.75%, unchanged
The FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. For more information, producers can contact their local USDA Service Center.
IDFA donates more than 4,600 frozen treats to White House Summer Social
Several thousand White House employees and administration appointees were treated to delicious ice cream novelties this week at the White House Summer Social – an appreciation event on the White House lawn thrown by the Trump administration for administration officials. Members of the International Dairy Foods Association (IDFA) donated more than 4,600 novelties for the event.
“Ice cream has a unique way of bringing people together,” said Michael Dykes, DVM, president and CEO of IDFA. “We’re honored to share these sweet moments with the dedicated individuals who serve our country, and to highlight the contributions of the U.S. ice cream industry to our nation’s economy and culture. The ice cream donated today is proudly American-made, crafted from milk from U.S. dairy farmers across the country.”
The U.S. ice cream industry is a significant contributor to the U.S. economy, supporting 27,000 jobs, $1.9 billion in direct wages and $11.6 billion in economic impact. The majority of U.S. ice cream and frozen dessert manufacturers have been in business for more than 50 years, and many are still family-owned businesses. With 97% of Americans expressing their love for ice cream, it’s clear the frozen treat holds a special place in the nation’s heart.
