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Organic Dairy Assistance, Investment, and Reporting Yields (O DAIRY)
Act of 2023
Organic dairy farmers face persistent economic pressures due to spiking production costs without a matching milk price increase. According to the USDA's Census of Agriculture, small commercial farms with 10-199 milk cows declined by 37 percent between 2007 and 2017, with more exiting the industry since then. Larger farms with 1,000 cows or more have become the dominant players due to their lower average operating costs. Some small farms have transitioned to organic production, which involves a significant upfront investment and adherence to USDA organic guidelines. These guidelines include a 3-year transition period, abstaining from antibiotic use for herd health, providing pasture access to cows, and using feed grown without the use of fertilizers and pesticides. As organic producers strive to meet these guidelines, they face significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic feed.
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