USDA ends mandatory farmer funding of ESG commitments in Dairy Checkoff
(Washington, D.C., September 17, 2026) – Today, U.S. Secretary of Agriculture Brooke L. Rollins reaffirmed the Administration’s commitment to American farmers, announcing the U.S. Department of Agriculture’s (USDA) decisive action to end dairy checkoff funding for Environmental, Social, and Governance (ESG) overregulation. This action aligns research and promotion activities with the Department’s priorities and the original mission of the checkoffs. USDA remains committed to ensuring that every dollar collected from American producers serves American agriculture for the better.
“American dairy producers, cattle ranchers, and farmers pay checkoff assessments so those dollars can build demand for their products – not bankroll radical climate agendas that raise costs and constrain production,” said U.S. Secretary of Agriculture Brooke L. Rollins. “Today’s action returns the Dairy Checkoff and all research and promotion programs to their core mission: expanding markets and supporting the hardworking men and women who feed this country. We will not allow producer dollars to underwrite mandates that put American agriculture at a disadvantage.”
Lawsuit
On June 9, 2026, three dairy farmers filed suit in U.S. District Court, their suit argued that the National Dairy Promotion and Research Board and the U.S. Secretary of Agriculture in her official capacity violated the First Amendment and Administrative procedure Act by diverting funds to private entities including the Innivation Center for U.S. Dairy to advance environmental, social and governance (ESG) initiatives. The initiatives allegedly pursued extensive ESG initiatives, including greenhouse-gas and net-zero targets and required dairy farmers to adopt greenhouse gas reduction measures and submit intrusive data collection, effectively compelling them to subsidize speech they oppose.
Abby Swan, a dairy farmer involved in the suit, said in a social media video, “I am suing the Dairy Checkoff because they created an organization, offshoot, dairy management incorporated, the main dairy checkoff, the Innovation Center’s sole purpose is researching sustainability measures and partnering with large corporations that have an agenda that are looking for sustainability for dairy farmers. National Milk Producers Federation is the arm that created a sustainability program that caused all farmers to sign up for the program that in turn caused all of us farmers to have to turn over data in order to continue selling our milk,” she said.
She said sued the Dairy Checkoff over the use of Checkoff funds for ESG purposes. In an X video, she said three more things need to happen immediately:
- Dissolve the Innovation Center “because it’s sole purpose is for research and sustainability and net zero initiatives,” said Swan.
- Fire the CEO of DMI “because she obviously believes in climate change initiatives and that dairy farmers should fund it.”
- Fire the Board of Directors for DMI “because they have all have agreed to all of this crazy climate change net zero initiative with our funded dollars that are mandated by a law from the the 1980s.”
“I’m very excited that we are winning in this for now and I hope that those other things happen,” she said. “I’m very excited that we so far have won our lawsuit against the Dairy Checkoff,” she said.
USDA’s action ends checkoff support for those ESG-related projects while allowing necessary administrative functions that do not advance such agendas. This action also directs the Agricultural Marketing Service to ensure no research and promotion funds in other commodity checkoffs advance ESG mandates.
American producers fund these checkoff programs through mandatory assessments. Those funds must serve their statutory purpose of strengthening markets for agriculture – not advance misguided external ESG agendas that can raise costs or potentially constrain production.
–USDA news release with details added by staff
