Lawsuit seeks exemption from outdated milk pricing system
The organic dairy industry in the United States has filed multiple lawsuits against the federal government over long‑standing milk pricing regulations. Farmers say these rules unfairly take money from organic producers and benefit conventional dairy operations.
"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.
The legal action focuses on the Federal Milk Marketing Order program, managed by the US Department of Agriculture. This system was created in the 1930s to stabilize conventional dairy markets. Organic farmers argue it was never designed for organic milk, which follows different production standards and supply chains.
Members of the Coalition for Organic Dairy Exemption have filed three federal court cases challenging the requirement that organic dairy must participate in the program. In addition, a class action claim seeks compensation for payments collected over the past six years.
Organic dairy farmers say millions of dollars paid into the pricing pools are redistributed to non‑organic producers, while organic farmers receive no direct benefit. They explain that organic milk cannot be mixed with conventional milk and requires higher production, feed, and processing costs.
"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 now represents more than 10% of US dairy farms. Consumer demand has increased steadily, with organic milk accounting for a growing share of fluid milk sales. Farmers argue that the current pricing structure removes money that could support expanded organic production.
Producers say they attempted to resolve the issue through administrative channels for many years but were unsuccessful. The lawsuit does not seek to remove the federal milk program. Instead, it calls for fair treatment by recognizing organic dairy as a separate and distinct sector.
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