Milk From Family Dairies Act of 2026
Sponsored By: Senator Welch, Peter [D-VT]
Introduced
Summary
The Milk From Family Dairies Act of 2026 would create a federal Dairy Market Stabilization Program to stabilize dairy markets by limiting how much milk each producer may market, setting quarterly floor prices, and redistributing market-access fees to qualifying producers.
Show full summary
- Dairy producers would face quarterly "allowable marketings" that cap how much milk they can sell. Initial allocations let existing producers pick either their three-year average or the immediate pre-enactment quarter; producers who market over their limit pay fees while those within limits share fee-funded dividends paid after the following quarter (dividends distributed within 30 days).
- New and growing producers get a waitlist and priority for added allocations if the national production base expands. Producers can share or transfer marketings under limits and no party may monetize, lease, or sell marketings for financial gain; transfers to existing holders are capped at 50 percent.
- Very large dairies above 1,000 percent of the national average face a two-year transition when they are exempt from fees and ineligible for dividends. The quarterly floor price would be set with input from the National Board and the Economic Research Service, and violations can trigger penalties including fines of at least 105 percent of monetization gains and permanent marketing reductions.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 0 costs, 5 mixed.
Regional dairy grants and training
If enacted, the bill would expand and add regional dairy grants and training programs across all 50 States and listed territories. If enacted, the Secretary must set up a regional milkshed infrastructure program within 180 days and run apprenticeship and transition programs at land-grant colleges. If enacted, Congress is authorized $50 million per year for each of fiscal years 2027 through 2031 for the infrastructure program and $50 million per year for training and transition assistance for 2027–2031. If enacted, some existing LAMP funding figures for FY2027 would be replaced with $200 million and $75 million as noted.
Fees, dividends, floor price, and penalties
If enacted, producers who market more milk than their allowable amount in a quarter would be assessed market access fees per hundredweight, paid through milk handlers to a protected Treasury account. If enacted, producers could elect an alternative fee within 7 days after quarter end; notices must be sent within 25 days and dividends paid to compliant producers within 30 days after the end of the following quarter. If enacted, only producers who are "actively engaged" and qualifying legal entities could receive dividends, which are shared pro rata among eligible producers. If enacted, the Secretary must set fees to discourage overproduction and higher than the income from the overage, ban selling or leasing marketings for profit, and impose penalties including fines of at least 105% of any monetization gain.
How milk allowances and transfers work
If enacted, the Secretary would set a national production base and regional bases at least 30 days before each year to match supply and demand. If enacted, first-year allowable marketings let eligible producers choose either a three-year corresponding-quarter average or the prior year's corresponding quarter. If enacted, transfers and sharing are allowed but limited: no more than 50% of a sender's marketings may go to existing producers, receivers may not get more than 50% of their prior amount, and remaining shares go to new producers on waitlists. If enacted, reductions in a national base would be taken first from producers with the largest allowances, and no producer could lose more than 10% of their allowable marketings in any calendar year. If enacted, small technical adjustments apply for leap years (add 1/90 in a 366-day year and subtract 1/91 the following year).
Two-year rules for very large dairies
If enacted, producers with allowable marketings above 1,000% of the national average would be exempt from market access fees for the first two years of the Program but would not be eligible for dividends during that time. If enacted, the Secretary would set those producers' allowable marketings and could use Commodity Credit Corporation funds to encourage reductions below the threshold. If enacted, authorized incentives could include buying part of allowable marketings, paying premiums per cow sold, and helping with loan restructuring to downsize.
Regional and National Board Rules
If enacted, each region would have a 15-member Regional Board with 12 producers and 3 industry or consumer reps. If enacted, producer members would be chosen in Secretary-run regional elections and would serve five-year terms. If enacted, a National Board would include two producers per region, plus consumer, bottler, and processor reps, with a nonvoting dairy economist advisor. If enacted, the Secretary must publish a proposed program order within 60 days and a final order within 90 days after public comment, and the Comptroller General must review board adequacy. If enacted, producers would be able to appeal allocation decisions and, not later than five years after enactment, a producer referendum would decide whether the Program continues.
Higher import fees and quotas for dairy
If enacted, the Secretary would raise the fee for licenses to import dairy articles that are under tariff-rate quotas, as allowed by trade agreements. If enacted, the Secretary could also subject more dairy products to tariff-rate quotas and may lower quotas where trade rules allow. If enacted, the Secretary must publish at least quarterly the amount of raw milk contained in imported dairy products.
Sponsors & CoSponsors
Sponsor
Welch, Peter [D-VT]
VT • D
Cosponsors
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 6/24/2026
Sen. King, Angus S., Jr. [I-ME]
ME • I
Sponsored 7/22/2026
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 7/29/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov