By Jamie Martin
Organic dairy farmers across the United States have launched legal challenges against the federal government over milk pricing policies they say are outdated and unfair.
The dispute centers on the Federal Milk Marketing Order program, introduced during the Great Depression to stabilize conventional dairy markets. Organic dairy producers argue that the system does not reflect today’s diverse dairy industry or the unique standards required for organic milk.
"The federal government has locked up an updated dairy pricing regulation that actively harms organic dairy farmers. It systematically siphons revenue generated from organic dairy sales and redistributes it to non-organic dairy producers and their partners," said Elvin Ranck, an organic dairy farmer plaintiff from Pennsylvania.
"This is effectively a government taking. CROPP Cooperative, of which I am an owner-member, pays millions of dollars each year into the Federal Milk Marketing Order pools, yet those dollars never return to organic farmers like me, and under the current system, they never will. At some point, we have to stand up for ourselves," said Ranck.
According to the farmers, organic producers have paid more than $60 million into milk pricing pools over several years. These funds are largely redistributed to conventional dairy producers, while organic farmers receive little or no return.
Organic milk production follows strict federal organic standards. It requires separate processing, higher‑cost organic feed, and dedicated supply chains. Farmers say treating organic and conventional milk the same under federal pricing rules ignores these differences.
"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."
Organic dairy farms now make up more than 10% of US dairy operations. Consumer demand for organic milk has grown steadily, driven by interest in transparency and sustainable food production. Farmers argue that the current system weakens their ability to meet this demand.
The lawsuit seeks two outcomes: exemption of organic dairy from the pricing program and compensation for payments collected in recent years. Industry members stress they do not want to end the federal milk system, but instead want regulations updated to reflect modern farming realities.
Photo Credit: gettyimages-vm
Categories: National