News

USDA orders checkoffs to review and end ESG initiatives

All industry-funded research and promotion boards overseen by USDA have been asked to review and terminate projects that support environmental, social, and governance (ESG) initiatives.

American Dairy Coalition policy advisor Sherry Bunting tells Brownfield a growing number of their members say they’re being forced to comply with sustainability reporting through the National Dairy Farmers Assuring Responsible Management (FARM) Program’s Environmental Stewardship assessment.

“All along, dairy farmers were told this was a voluntary tool for environmental improvement, and all of a sudden it started feeling mandatory,” she explains. “I think this is looking at what did the checkoff pay for, what they should pay for going forward.”

Brownfield’s Erin Anderson interviews Sherry Bunting.

A memorandum from USDA was recently sent to national program leaders as a response to litigation filed by three Wisconsin dairy farmers in a federal court.

In a release, the USDA says the action returns the Dairy Checkoff and all research and promotion programs to their core mission of expanding markets through promotion and research.

In a letter to the National Dairy Board, USDA says it’s advancing the administration’s economic and environmental goals by aligning checkoff programs with its policy positions.

Chief Sustainability Officer Nicole Ayache with the National Milk Producers Federation manages the environmental stewardship portion of the National FARM Program.

“Today we are in close collaboration with DMI as well as USDA to review and understand the information and request that has come from USDA and assess it against our work streams that are underway,” she says.

Brownfield’s Nicole Heslip interviews Nicole Ayache.

Wisconsin Institute for Law & Liberty’s Rebecca Furdek says using checkoff dollars for sustainability agendas violates the First Amendment and the Administrative Procedure Act.

“Through our lawsuit, we argued that this was functioning as private speech because it was exceeding the authority that Congress granted,” she says.

Furdek says all parties have agreed to pause the case as USDA works to make changes.

Brownfield’s Nicole Heslip interviews Rebecca Furdek.

In a statement to Brownfield, Dairy Management Inc. says it’s currently reviewing projects and will modify or terminate as needed to remain aligned with statutory authorities and administration policy. The Beef Checkoff says it is still awaiting guidance from the USDA regarding breadth and scope of this new plan.

The FARM program was created by the National Milk Producers Federation in partnership with Dairy Management, Inc. Ayache tells Brownfield cooperatives and processors that choose to participate see it as an asset for accessing additional markets.