After decades of growth, per-capita US dairy consumption reached an all-time high in 2021, though fluid milk consumption has been steadily declining since the 1970s. This presents formidable challenges for climate action: Meat and dairy consumption is responsible for a full 75 percent of the country’s diet-related greenhouse gas emissions, even though animal products account for only 18 percent of calories consumed.
And even setting aside climate concerns, small-scale farmers worry that this emphasis on demand growth might actually end up edging them out of the market. They say that the checkoffs have unfairly benefited a few big producers, supercharging their growth while driving others out of the industry.
“[The checkoff is] set up to be entirely demand-side,” said Wisconsin farmer and former Dairy Board member Rose Lloyd. “You’re not allowed to talk about price, you’re not allowed to talk about supply. It’s a wasted effort.”
Lloyd and her family maintain a herd of 350 cows, and while checkoff assessments represent less than 1 percent of her revenue, she says she feels like she’s paying to reinforce a structure that’s working against her farm and her community. For example, she’s watched a neighboring dairy farm quadruple in size to supply mozzarella to a nearby factory that produces frozen pizzas. The local infrastructure has struggled to contend with the waste produced by all those additional cows.
“We have massive water quality issues,” she told Grist. “It’s a real crisis right now on all the legs of sustainability: ecologically, socially, economically.”
Some farm groups are holding out hope that they can persuade Congress to pass a form of supply-management legislation that limits total milk production, which they are pitching as a win-win for small-scale farmers and the environment. If the government placed a cap on the amount of dairy produced in the United States, the idea goes, such a policy could theoretically ensure that a market exists for all the dairy produced.
A similar model has functioned in Canada for decades. Each year, annual dairy demand is forecasted based on the previous year’s sales figures. The resulting estimate is divided among provincial boards, which in turn distribute production quotas to individual farmers. In exchange for promising not to market more milk than the quotas allow, farmers are guaranteed minimum prices for their products—meaning they’re somewhat insulated from the seasonal price fluctuations and rising costs that plague their US counterparts.
To maintain this delicate balance, Canada prevents an influx of cheap imported milk using high tariffs. In part for this reason, the system is not without controversy. Critics argue that the policy pushes up dairy prices, and the quota licensing system can make it hard for new producers to enter the market.
PICTURE
CAPTION: A farmer moves cows into a barn for their evening milking near Cambridge, Wisconsin, in 2017.
CREDIT: Scott Olson/Getty Images
Still, the system has enough admirers that some are hoping it will be adopted in the US. Earlier this year, representatives from the National Family Farmers Coalition, or NFFC, flew to Washington, DC, to try to persuade legislators to adopt supply-management legislation through their proposed Milk from Family Dairies Act in the next farm bill. The bill would establish price minimums and quota-like “production bases” for farmers. Farmers would have to pay additional fees to export their product, and the policy would raise import fees where possible.
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