Three Wisconsin dairy farmers have filed a lawsuit against the Trump administration, challenging what they describe as mandatory fees that fund a federal dairy promotion system they say has drifted into environmental and social policy advocacy.
The lawsuit, filed Wednesday, June 10, targets the USDA-administered Dairy Checkoff Program, a long-running system that collects compulsory fees from dairy producers to fund advertising, research, and industry promotion.
Farmers Claim Mandatory Fees Are Being Redirected Into ESG Initiatives
The farmers say the program is being used beyond its original purpose and now supports what they call ESG-related initiatives.
Under the current structure, dairy farmers pay 15 cents for every 100 pounds of milk sold into the program. Importers add 7.5 cents per hundredweight of dairy products brought into the country.
The funds are used to support national dairy marketing campaigns, such as “Got Milk?”, and other industry promotion efforts.
The plaintiffs claim that part of the collected money is being directed toward organizations and programs that promote environmental, social, and governance (ESG) priorities.
They contend these priorities include climate-focused initiatives that were not agreed to by the farmers who are required to fund the system.
At the center of the complaint is the Innovation Center for U.S. Dairy, a nonprofit supported by checkoff funding.
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The farmers say that the organization promotes sustainability measures, including efforts to reduce greenhouse gas emissions in milk production, and goes beyond neutral marketing and research.
The lawsuit states that, despite federal political criticism of ESG policies, the practices continue in agricultural programs.
It argues that farmers are being compelled to finance messaging and initiatives that show ideological positions rather than strictly market-based promotion.
“American dairy farmers are required to pay ‘checkoff’ fees for each hundredweight of milk they produce,” the lawsuit states. “In turn, these mandatory checkoff fees subsidize private organizations that promote an ESG-focused ideological agenda around the world.”
The filing further argues that these organizations, with support from the U.S. Department of Agriculture, impose expectations on farmers who are simultaneously required to fund them.
The plaintiffs say this creates a system in which producers have little control over how their money is used.
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The case also cites federal executive orders issued under the Trump administration that directed agencies to cut regulatory costs and to cut policies seen as rooted in climate or ideological frames.
Farmers say the way checkoff funds are being used now is contrary to those directives.
The lawsuit comes amid growing scrutiny of agricultural data collection and sustainability reporting requirements.
Some lawmakers and farm groups have raised concerns about the amount of operational data required from producers, including information on livestock feed, waste management, and production practices.
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Agriculture Secretary Brooke Rollins, during recent congressional testimony, pointed to ongoing debates around data collection tied to environmental reporting.
She said farmers are required to provide detailed operational information to sell their milk and described it as part of major climate-related compliance efforts.
The USDA directed media inquiries about the lawsuit to the Department of Justice, which has not yet issued a response.
The Dairy Checkoff Program collects roughly $300 million annually, according to estimates cited in the lawsuit and industry data.
Similar programs exist in other livestock sectors, including the beef and pork industries, which generate hundreds of millions of dollars in promotion and research, with some exceeding $1 billion annually.
The case is expected to move forward in federal court as the farmers seek changes to how checkoff funds are collected and distributed.
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