O DAIRY Act of 2025

Bill Number

S. 2442

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-07-24: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Last Updated

2025-08-07T16:48:25Z

AI-Generated Summary

Purpose

The Organic Dairy Assistance, Investment, and Reporting Yields Act of 2025 (O DAIRY Act of 2025) aims to support organic dairy producers and processors by expanding emergency aid, improving data collection on costs and prices, developing tailored safety net programs, and funding infrastructure to strengthen regional organic dairy markets. It addresses challenges like rising input costs and limited market data specific to organic production.

Key Provisions

• Extension of Emergency Assistance (Section 2): Amends the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish (ELAP) program to cover losses for organic dairy farmers from increased costs of organic feed or inputs, if these cause a net income drop of more than 10% in a calendar year. It also requires streamlining the payment process for faster aid delivery.

• Enhanced Data Collection and Reporting (Section 3):
• Mandates collection and publication of cost-of-production data for organic milk, including prices for major organic feedstuffs (e.g., corn, soybeans, hay) both domestic and imported, plus other production costs.
• Establishes the "Organic All Milk Prices Survey" within 90 days of enactment, similar to the existing national survey for conventional milk, to report monthly prices paid to organic dairy farmers and for organic milk cows, covering national and regional data (at least the top 6 organic dairy regions).
• Requires new or updated periodic reports within 180 days, including state-level organic production costs, regional production quantities, "mailbox prices" (prices received by farmers at the farm gate), and feed prices, equivalent to data for conventional milk.

• Organic Dairy Safety Net Programs (Section 4):
• Directs the Secretary of Agriculture to propose new safety net programs within 1 year, based on organic-specific cost data, ensuring all organic dairy operations are eligible and prioritizing small operations (defined by small business standards under federal regulations).
• Requires public comment periods with comments made available online.
• Mandates a report to Congress within 2 years with implementation recommendations and actions taken.

• Investments in Processing Infrastructure (Section 5):
• Establishes a funding program within 180 days to support regional organic dairy infrastructure, including new processing plants for small operations, institutional purchases of local organic dairy, on-farm processing, business planning, start-up capital, and co-packing arrangements.
• Creates "Regional Organic Dairy Market Specialists" in major production areas (employees or university-based), supported for 5 years (renewable), to research marketing issues like quality standards, costs, market consolidation, certification changes, direct sales, and regional branding. They must form research teams and provide reports, including on feasibility of an organic dairy insurance program.
• Authorizes $20 million annually for infrastructure (FY 2025–2029) and $5 million for specialists.

Significant Changes to Existing Law

• Amendments to Agricultural Act of 2014: Expands ELAP eligibility beyond traditional livestock losses (e.g., disease) to include organic-specific economic losses from input cost increases, filling a gap for organic producers not fully covered by current disaster programs.
• New Reporting Requirements: Introduces organic-specific surveys and reports through the National Agricultural Statistics Service, Economic Research Service, and Agricultural Marketing Service, which previously focused more on conventional dairy, ensuring parity in data availability.
• Program Creation: Adds entirely new elements like the infrastructure funding program and regional specialist positions, which do not exist under current law, while mandating proposals for safety nets tailored to organic costs rather than generic dairy programs.

Potential Impacts

• On Government Agencies: Increases workload for the U.S. Department of Agriculture (USDA) in data collection, program administration, and reporting, requiring new surveys and positions. Authorizations signal potential budget needs, but implementation depends on appropriations.
• On Citizens: Benefits organic dairy farmers, especially small operations, by providing financial aid, better market data for pricing decisions, and infrastructure to reduce costs and improve regional sales. Consumers may see more stable or increased supply of regional organic dairy products.
• On International Relations: Minimal direct impact, though improved domestic data and infrastructure could enhance U.S. competitiveness in global organic markets by supporting exports of U.S.-sourced organic dairy; it includes tracking imported feed prices, which may inform trade policies.

Main Stakeholders Affected

• Organic Dairy Producers and Processors: Primary beneficiaries, gaining emergency aid, safety nets, data tools, and funding for regional infrastructure, particularly small operations in top production regions.
• Small Businesses: Prioritized in safety nets and investments, using federal small business size standards (e.g., based on revenue or employee thresholds for dairy farming/processing).
• USDA and Related Agencies: Responsible for implementation, including data gathering via National Agricultural Statistics Service and others.
• Congress and the Public: Receive reports and proposals; taxpayers fund authorized programs.
• Institutions and Universities: Eligible to host regional specialists and research teams.
• Conventional Dairy Sector: Indirectly affected through new data parity, potentially influencing overall dairy market dynamics.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on USDA's existing authority under the Agricultural Act of 2014 but introduces mandatory timelines (e.g., 90–180 days for surveys and programs), which could lead to administrative challenges if resources are limited. Public comment requirements promote transparency under the Administrative Procedure Act. No new regulatory burdens on private entities beyond voluntary program participation.
• Constitutional: Aligns with Congress's spending power (Article I, Section 8) to support agriculture; prioritizes small businesses without discriminating against larger ones, avoiding equal protection issues.
• Political: Supports growth in the organic sector, appealing to advocates for sustainable farming and regional economies. As an introduced bill (S. 2442, 119th Congress), it reflects bipartisan interest (sponsors from both parties) but requires committee approval and appropriations, potentially facing debates over federal spending on niche agriculture amid broader farm bill discussions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Welch, Peter [D-VT]

Cosponsors (4)

Sen. Gillibrand, Kirsten E. [D-NY], Sen. Sanders, Bernard [I-VT], Sen. Booker, Cory A. [D-NJ], Sen. Smith, Tina [D-MN]

Recent Actions

• 2025-07-24: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
• 2025-07-24: Introduced in Senate

Bill Versions

• Organic Dairy Assistance, Investment, and Reporting Yields Act of 2025 — issued 2025-07-24 — PDF (11 pages)