Organic Dairy Farmers Challenge US Milk Pricing Regulations
Organic dairy farmers in the United States have initiated a series of legal actions against the federal government, contesting the current milk pricing regulations. The Coalition for Organic Dairy Exemption (CODE) has submitted three federal court filings, challenging the constitutionality of forcing organic producers to participate in the USDA's Federal Milk Marketing Order (FMMO) program.
The plaintiffs claim that the FMMO system unjustly requires organic producers to contribute to a pricing pool that offers no financial return to them. Elvin Ranck, a claimant and organic dairy farmer from Pennsylvania, stated that the system detrimentally affects organic farmers by redistributing income from organic milk sales to conventional producers. His cooperative, CROPP Cooperative, is reportedly contributing millions annually into this pool without seeing benefits.
Currently, organic dairy farms represent over 10% of all US dairy farms, with organic fluid milk sales increasing from 1.9% in 2006 to 7% in 2025. However, industry representatives argue that the existing pricing framework hampers this growth by diverting resources needed for expansion and to satisfy growing consumer demand.
Despite repeated efforts by the organic sector to address these issues, proposals submitted in 2015 and specific recommendations during a national FMMO hearing in 2023 were not advanced. Further administrative challenges in 2024 and 2025 remain unresolved. Organic producers argue that the FMMO system, established in the 1930s, has not adapted to reflect the fundamental differences between organic and conventional dairy production.
Under the current regulations, organic and conventional milk are treated the same regarding pricing and pooling, even though federal regulations prevent their intermingling. This situation reportedly places additional financial burdens on organic operations, which face higher feed costs and stricter production standards.
The legal action seeks an exemption for organic dairy from the FMMO framework, arguing that federal law already recognizes organic products as distinct. The outcome of these legal proceedings could significantly impact US dairy pricing structures and the future growth of the organic sector.
