8/5 Milk from Family Dairies Act
The cost of dairy production exceeding sales by an average loss of $8.65 per 100 pounds of fluid milk shipped wholesale continues to run family dairies in Vermont out of business and into consolidation. Thereby, according to VTDigger, Vermont farms face the largest losses in their margin compared to 18 other states. Within the last decade, Vermont lost over 50% of its remaining dairy farms, with only about 414 of 838 active farms in 2016 remaining in the first quarter of 2026. In the past four months, four dairy plant closures were announced: Dairy Farmers of America will shut down operations at its St. Albans milk processing plant and the St. Albans Creamery & Supply in August, Franklin Foods shared plans to shut down a plant in Franklin County, and HP Hood already closed the Booth Bros. dairy manufacturing plant in Barre earlier in April.
The fluid milk market is regulated primarily through the federal government’s Milk Marketing Orders, overseen by the U.S. Department of Agriculture, covering 75% of the total milk production nationwide that’s being controlled by large dairy cooperatives. Rural Vermont and NOFA-VT and other farmer-member-led nonprofit organizations from 42 states are part of the National Family Farmer Coalition (NFFC), advocating for fair prices for family farms, meaning that farmers need to get their cost of production plus profit free of corporate domination at a baseline.
We’ve been working with Vermont Senators Welch and Sanders to spearhead the introduction of the Milk for Family Dairies Act (MFDA) on June 24, 2026. This new federal legislation would establish a Dairy Market Stabilization Program to ensure farmers get a fair price for their milk based on their cost of production. It would also establish national import controls for dairy products to generate domestic demand by also advancing a number of USDA programs like the Local Agriculture Market Program and the Dairy Business Innovation Initiatives to revive regional supply chains. This federal legislation (like most of the NFFC Farm Bill Platform, such as the Farmland for Farmers Act and the LOCAL Foods Act) has not been included in the farm bill. However, the farm bill is currently stalled in Congress - so it’s not too late to advocate for the policies relevant to you!
In August, lawmakers in D.C. are taking a recess to travel to their home states to connect with their constituency - an opportune time to seek out direct conversations with Senators Welch and Sanders about the MFDA and the need for fair prices for dairy farmers! Contact your delegation through their websites - we encourage you to invite them to your farm and relevant events aside from signing up for their newsletters or using their contact form to get involved!