US Department of Agriculture (USDA)

The US Department of Agriculture (USDA) is a prominent federal agency established in 1862. It plays a crucial role in overseeing the American farming industry, ensuring food safety, and supporting agricultural economies through a wide range of programs and initiatives. This makes it significantly impactful in the dairy market.

Location and Facilities

The main headquarters of the USDA is located in Washington, D.C. The agency operates numerous research stations, agricultural offices, and service centers throughout the United States. These facilities are essential for conducting agricultural research, providing valuable information to farmers, and implementing USDA programs effectively.

Financial Indicators

The USDA operates with a substantial federal budget to support its diverse programs, including those related to the dairy industry. In the previous fiscal year, the USDA's total budget was approximately $146 billion, with a substantial portion allocated to food safety, agricultural research, and farm support programs.

Important Events and Projections

Recently, the USDA released its projections for 2024, indicating a modest increase in milk production due to improvements in herd sizes and milking efficiency. There is also an anticipated slight rise in dairy exports driven by growing international demand. Additionally, USDA officials have been active in promoting agricultural health and safety by participating in establishing the Binational Committee Against the Cattle Screwworm.

The USDA confirmed the presence of highly pathogenic avian influenza in two dairy cattle herds in Washington state. The Animal and Plant Health Inspection Service identified HPAI H5 clade 2.3.4.4b in these herds. According to USDA data cited by Dairy Processing, per-capita butter consumption in the United States reached 6.8 lb in 2024, the highest level recorded in the country.

Company Plans

Looking ahead to 2024 and beyond, the USDA plans to enhance its support for the dairy industry by implementing advanced data analytics to improve market forecasting. It aims to increase partnerships with agricultural stakeholders to drive innovation and continue advocating for sustainable and environmentally-friendly practices within the sector. These plans align with the broader USDA objectives to strengthen the resilience of the American agricultural industry and support rural development.

The USDA has established an advisory committee whose scientific report forms the basis for dietary recommendations, collaborating with the Department of Health and Human Services. The USDA also administers the 4-H program through the Cooperative Extension System across the United States. Additionally, the USDA announced it would stop dairy checkoff funding for projects connected with environmental, social, and governance initiatives.

The USDA will accept applications for the 2027 Dairy Margin Coverage programme. Agriculture secretary Brooke Rollins announced the schedule during a September 30 visit to the World Dairy Expo, noting that the application period is longer than the one-month window used in 2026. In 2025, the US Department of Agriculture issued more than 63,000 export certificates for shipments to about 130 countries. The certificates provided regulatory clearance for commercial co-operatives and private ingredient handlers exporting agricultural products, including dairy.

The department is responsible for the Dairy Business Innovation Initiatives and the newly introduced contribution requirement. A coalition of dairy organizations has asked the US Department of Agriculture to withdraw a new 25% cost-sharing requirement for the Dairy Business Innovation Initiatives.

A grant from the US Department of Agriculture covered part of the installation. The US Department of Agriculture provided $110,208 through its Rural Energy for America Program, known as REAP. In October 2024, the USDA announced an additional $104 million in REAP grants for more than 300 clean-energy projects in 34 states.

The US Department of Agriculture is called upon to withdraw a new 25% matching-funds requirement for the Dairy Business Innovation initiatives. Senator Tammy Baldwin and 28 dairy organizations asked the USDA to reissue its fiscal 2026 funding notice without the requirement and extend the application deadline by 60 days.