USDA restricts dairy checkoff funds for ESG and climate projects

The U.S. Department of Agriculture (USDA) has restricted the use of dairy checkoff funds, prohibiting their application toward Environmental, Social, and Governance (ESG) projects. This directive includes a ban on funding net-zero initiatives, greenhouse gas reduction, and climate neutrality proposals.

USDA Secretary Brooke Rollins stated that the decision aims to return research and promotion programs to their core mission of expanding markets and strengthening the dairy industry. Rollins argued that mandatory assessments should not be used to fund climate agendas that could increase costs or constrain production for American farmers. The directive also instructs the Agricultural Marketing Service to block ESG mandates across all other commodity checkoff programs.

The move follows a June lawsuit filed by Wisconsin dairy farmers challenging the use of mandatory funds for environmental initiatives. While the American Dairy Coalition and the Wisconsin Institute for Law and Liberty supported the restriction, the decision has met with criticism from industry leaders like the Dairy Farmers of America, who argue that sustainability is essential for global competitiveness. Dairy producers currently pay 15 cents per 100 pounds of milk sold to fund these programs.