S. 2442: Organic Dairy Assistance, Investment, and Reporting Yields Act of 2025

This legislation, known as the Organic Dairy Assistance, Investment, and Reporting Yields Act of 2025, aims to support organic dairy producers and processors through a series of initiatives. It seeks to provide financial assistance, improve data collection, establish safety net programs, and invest in infrastructure for the organic dairy sector.

Key Provisions

1. Emergency Assistance for Organic Dairy Farmers

The bill modifies existing emergency assistance programs to include support specifically for organic dairy farmers. This includes:

• Extension of ELAP: Organic dairy farmers who face losses beyond what existing disaster programs cover can receive assistance if they have a significant decrease in net income due to increased organic feed or input costs.
• Streamlined Payments: The bill mandates a simplified payment process for the assistance programs, making it easier for farmers to access funds.

2. Improved Data Collection

The Secretary of Agriculture is tasked with enhancing the collection and publication of important cost-of-production data related to organic milk. This includes information about:

• The costs of various organic feed types (e.g., corn, soybeans, hay).
• Prices for domestic and imported organic feedstuffs.
• Overall production costs related to organic milk.

3. Surveys and Reporting

A new survey called the "Organic All Milk Prices Survey" will be established to collect monthly data on payment rates for organic milk. This survey will also gather data on the prices of organic milk cows. Additionally, the Secretary must publish periodic reports on organic milk, comparable to those for conventional milk.

4. Safety Net Programs

The bill requires the Secretary to propose new safety net programs for organic dairy farms within one year. These programs will be tailored based on organic cost data and aim to support all organic dairy operations, especially smaller ones. Public comments will be accepted during this process, and a report on the proposal will be submitted to Congress within two years.

5. Infrastructure Investments

Funding will be set aside to enhance infrastructure related to organic dairy processing. Goals include:

• Developing new processing plants that support small dairy operations.
• Encouraging institutional purchases of local organic dairy products.
• Improving transport and processing efficiencies.
• Establishing on-farm processing and storage facilities.

6. Regional Specialists

Regional Organic Dairy Market Specialists will be appointed to conduct research on marketing organic dairy. Their role will include:

• Investigating quality standards, cost data, and market consolidation.
• Providing recommendations to the Secretary and stakeholders.
• Establishing research teams to assist in these efforts.

7. Funding Authorization

The bill authorizes specific funding levels for these initiatives, aiming for a total of $20 million per year for infrastructure and $5 million annually for the regional specialists program from fiscal years 2025 to 2029.

Relevant Companies

• WHLM - While this company primarily operates outside of the organic sector, it may face indirect impacts due to potential shifts in consumer demand for organic vs conventional dairy products.
• DAR - As a player in the dairy market, it could be impacted by changes in market conditions created by new support for organic dairy producers.