Organic Dairy News: May, 2026

By Ed Maltby, NODPA Executive Director

The grass may be green, but our boomerang weather is making it difficult for those looking for grass that can be grazed. New England, Eastern New York, and parts of Pennsylvania remain in a moderate drought and are now classified by the U.S. Drought Monitor as experiencing long-term effects, typically lasting more than six months and impacting hydrology and ecology. Although higher-than-normal temperatures covered almost the entire region, rainfall was mostly limited to northern areas—from western Pennsylvania and New York up through northern Vermont and New Hampshire into Maine—where many locations received at least 150% of their usual precipitation for the time of year. Ongoing drought conditions across the United States bring concerns for grazing and the availability of high-quality organic hay.

Good news for those that signed up for Dairy Margin Coverage for 2026. On March 30, 2026, the USDA released February’s DMC margin of $7.81 per cwt. This margin triggers a $1.69 payment for operations enrolled in Tier I at the $9.50 per cwt coverage level. As a result, dairy operations that elected Tier 1 margin coverage will be issued a payment at levels $9.50 ($1.04 payment/cwt.), $9.00 ($0.54/cwt.), and $8.50 ($0.04/cwt.).

Milk Buyers

In the last issue, I reported that there were credible rumors that CROPP is purchasing 4-7 tankers of organic milk a day from Texas. Request for comments from CROPP were unanswered by press time but we received an email from Cheree Tauschek, Executive Vice President for Membership a few days later, apologizing for the delay in replying: "CROPP Cooperative does purchase a small percentage of external milk as a short-term strategic lever to fill any of our unmet customer and consumer demand. This strategy also allows us to continue to support our existing membership and procure new members for the Cooperative through conversion of conventional farms and new farm start-ups." She went on to say "I am thrilled that we recently filled the New England Field position as well. Darlene Brann joined us earlier this year and is actively onboarding and is out meeting our members."

On April 16, 2026, CROPP/Organic Valley rolled out formulated ultra-filtered milk that features even more protein than traditional formats, Protein Plus milk with aseptic packaging. They point out that the products offer pasture-raised organic milk with 50% more protein and 50% less sugar than regular milk, with the Protein Plus varieties containing 13 grams of protein and 6 grams of sugar per serving. To make Protein Plus, they use an ultra-filtering process which modifies water, lactose and “a small amount of natural minerals” to concentrate the protein that naturally exists in milk. The company also highlighted the line’s packaging, which utilizes Tetra Pak’s Tetra Brik Aseptic 1420 Edge (48 oz) with the supplier’s LightWing 30 cap, which stays tethered to the carton. The packaging is both recyclable and made mainly of renewable plant-based materials.

Lactalis has become the world's leading dairy company, and there's promising news of their expansion to support organic dairy in the Northeast. Beginning in the last week of April 2026, they will start sourcing milk from the Mohawk Valley in New York. This marks a new region for sourcing milk by Stonyfield/Lactalis, involving direct supply from both English and Plain Communities farms. There are also reports of producers’ transitioning to organic dairy, including one potential large operation in northern Maine.

On February 23, 2026, Horizon Organic announced the launch of No Added Sugar 1% Low-fat Chocolate Milk Boxes to provide consumers with a no added sugar, single serve milk box option. Made from organic milk, organic cocoa, and organic plant-based sweeteners, the new milk boxes are also lactose free, deliver 8g of protein per serving and are shelf stable.

It is reported that all milk buyers are offering incentives and financial support to help transitioning producers and existing organic dairies expand. Organic dairying is not for everyone and it is always a rapid learning curve. For example, one farm in New York is transitioning without prior experience in pasture management and is trying to cultivate 800 acres of organic corn. Back in 2015-16, mistakes were made when organic milk was short and Pay Price high, and there were many transitions to organic that were not realistic based on producers’ experience and location. If transitions are to succeed, producers need a stable Pay Price for at least 5 years, continuing support from their buyers, certifiers and service providers. To ensure success, transitioning farms need assistance in establishing a realistic Organic System Plan and production practices that follow all organic regulations. Extra help is needed in establishing efficient record keeping for organic certification and standard financial records. As the Transition to Organic Partnership Program (TOPP) enters its final year, its services are especially crucial for organic dairy. Good, productive pasture is essential (not just an exercise yard for the Summer), as one expert organic livestock advisor said “Don't include pasture for your cows unless you would cut it for hay.”

Class 1 payments for organic fluid milk

In May, 2025 Aurora Organic Dairy, Horizon Organic Dairy, and Cooperative Regions of Organic Producer Pools (CROPP Cooperative/Organic Valley), collectively called the Coalition for Organic Dairy Exemption (CODE), separately petitioned the US Department of Agriculture (USDA) with a 15A petition seeking to exempt organic milk from the Federal Milk Marketing Order (FMMO) regulations (NODPA article). Over the last year, CODE members have been working with USDA to resolve the situation that has organic dairy companies that sell packaged organic fluid milk pay into a fund for which they receive no benefit. In April 2026, the USDA Judicial Officer dismissed the three handlers’ claims regarding the constitutionality of organic and the Federal Milk Marketing Order (FMMO) but has reached no decision on the administrative claims that remain pending. As the next step, on April 28th 2026, the three companies each filed a 15(B) Petition in the District Court of the states where they had their headquarters, Wisconsin and Colorado, to address the constitutional claims. These addressed the exemption of organic dairy from the FMMO. At the same time, seven organic dairy farmers from across the United States, all members of (CROPP), filed a ‘Takings Claim’ in the US Court of Federal Claims in Washington, DC. This Class action on behalf of CROPP farmer owners is seeking compensation from the Treasury Department for the last five years of payments, approximately $50 million, that CROPP has made into the Pool. “Federal law already recognizes organic as different. USDA's own organic standards treat our milk as a distinct product with distinct requirements," said the CODE members. "We are not asking to tear down the FMMOs. We are asking that FMMOs reflect a distinction that the law already makes – and that consumers already understand." These legal actions are the result of a deliberate, years-long effort to resolve this through the administrative process. Proposals for the change to the FMMO were submitted in 2015 to the USDA but USDA refused to advance them. Organic-specific proposals were submitted in written and verbal testimony at the 2023 national FMMO hearing that USDA refused to consider. The objections raised in a post- FMMO hearing briefing in 2024 were not considered and the organic specific claims went unaddressed in the final rule published by the USDA FMMO. Important to know that the Class action at this time only applies to CROPP farmers but, as with most Class action any success by the CROPP farmers will open the door for all farmers that have paid into the pool to make legal claims. As you can tell from the above timeline, this process will not proceed quickly, and any decisions made will probably be challenged. For your conventional neighbors, taking organic out of the FMMO will have very little effect. In 2025, conventional fluid milk sales were estimated at 39,676 million pounds and organic fluid milk sales at 2,983 million pounds, just 7.52% of conventional sales. Don’t expect any changes quickly or any bonus checks soon, except if you are a lawyer!

Meloxicam

On March 23, 2026, the USDA published a Proposed Rule to add the synthetic drug Meloxicam to the National List. Meloxicam is a nonsteroidal anti-inflammatory drug (NSAID) used primarily to treat pain and inflammation. Organic livestock processors and brands petitioned for use of meloxicam to add more tools to improve pain management in organic livestock operations. This proposal follows a recommendation from the National Organic Standards Board (NOSB) after their review of the petition as well as after public comment. The drug will only be allowed for use under or on the lawful written order of a licensed veterinarian. The withdrawal period must be at least two times that required by the FDA, under the conditions established by FDA for extralabel use, established under the Animal Medicinal Drug Use Clarification Act of 1994 (AMDUCA). Drugs without FDA approval for livestock are widely used under AMDUCA and carefully monitored by experienced veterinarians and skilled producers. USDA is asking for comments on the Proposed Rule (AMS-NOP-22-0029 and/or RIN 0581-AE25) by May 22, 2026 at either: www.regulations.gov or by mail to Jared Clark, Assistant Director, Standards Division, National Organic Program, USDA-AMS-NOP, 1400 Independence Ave. SW, Room 2642-South, Stop 0268, Washington, DC 20250-0268.

NODPA strongly urges as many organic livestock producers as possible to send comments that support the NOSB recommendation and that the USDA should proceed to a Final Rule as soon as possible with immediate implementation. We know that the experienced and dedicated veterinarians used by organic livestock producers are familiar with the requirement of AMDUCA and will work closely with organic farmers to ensure a high level of Animal Welfare and product safety

USDA

A new analysis by Prospect Partners found widespread staffing losses across USDA’s Natural Resources Conservation Service (NRCS). In 2025 alone, more than 1,300 counties lost staff, and 144 counties lost all NRCS personnel. Some staff is now stretched across multiple counties, and fewer resources are available to support new initiatives, with some offices closed down. As USDA reorganization continues, the loss of staff who serve as the primary point of contact for farmers, especially those with long institutional knowledge, will affect the implementation of all programs, including the design of conservation plans, and assistance with complex applications making it even more difficult for new entry farmers.

As this goes to press, we have no news on whether the National Organic Program (NOP) will stay in DC, where their key staff have built their lives, or be moved to some other hub. The president’s budget gave no increase to NOP, despite it being level funded for the last 4 years, so we can hope that Congress will be more realistic about what it costs to manage an international program with annual dollar sales of $76.6 billion in 2025 and an annual growth rate of 6.8%. As more organic product is imported than produced domestically, the current administration needs to invest in organic production and in enforcing organic regulations. To address the decrease in organic production and acreage in the US, it is essential to equip the National Organic Program with adequate resources so that regulations are uniformly and rigorously enforced by all certifiers. If stable markets aren't offered to farmers, organically certified land in the US will not expand.

The U.S House of Representatives passed their version of the Farm, Food and National Security Act on April 30th 2026, setting a $390 billion, five year framework for agricultural policy through 2031. It now moves to the Senate where there is discussion that the Senate Agricultural Committee might start their process by the end of May, 2026, with perhaps a full vote by the Senate in June before the Summer break. Then the House and Senate will have to combine their two Bills to reach agreement and then vote again on a Bill that both House and Senate agree on. When and IF we do get a final Farm Bill, it will be easier to write about it, but the House Farm Bill has many flaws and is basically not good for organics. One worrying trend is that some companies, legislators and trade groups are by-passing the standard process establishe by the organic community to safegaurd the integrity of the Organic Seal. If the changes they want to make fail after consideration by the NOSB, they move straight to changing the Organic Food and Production Act of 1990 (OFPA). The NOSB voted that Risk Management for certification was not ready for regulation, yet the Organic Trade Association has an ammendment to change OFPA and work direectly with USDA on a seperate process. The Biodegradable Products Institute petition to change what is allowed in organic compost failed at the NOSB and the company now is filing legislation to change OFPA. Dairy and produce farmers in the northwest want to shorten the transition time for acerage from conventional to organic, and their Representatives got wording included in the Farm Bill for USDA to examine shortening the time for transition. The NOSB, with its stakeholder representation, was part of the original OFPA to ensure that the organic community could make its recomendation to the Secretary of Agriculture for any changes based on the OFPA and appropriate science. The slippery slope employed in the above situations will undermine the organic certification process and the consumer perception of organic products.

We are still waiting for the appointment of 5 members of the NOSB who should have started in January 2026. The NOSB will hold its meeting on May 12-14 in Omaha, NE, with only 2/3 (10) of their members, who will have to read and absorb written and verbal comments within just one week of their meeting due to the late posting of the agenda and documents by the USDA. This devalues the written and verbal comments that are so necessary in making decisions at the NOSB level. Much appreciation to these 10 volunteers.

Organic Certification Cost Share Program (NOCCSP) may be paid out in July 2026 and maybe for both 2025 and 2026, despite money for the program being appropriated in 2025. You’ll notice the repetition of maybe!

Posted: to Industry News on Fri, May 8, 2026
Updated: Sat, May 9, 2026