Leading US dairy co-op secures $46m in small farms funding

Dairy Farmers of America will use the funds to support conservation practices and improve access to markets

Dairy Farmers of America (DFA), which represents around 9,500 member-owners, has secured federal funds to help smaller farms overcome financial barriers to sustainability schemes.

The funds come from the US Department of Agriculture’s (USDA) Advancing Markets for Producers (AMP) programme; a multi-year initiative that, for DFA, will directly fund environmental improvements for small- and medium-sized farms across its co-operative membership network. There, it is expected to support conservation practices ranging from soil and water management to emissions reductions, while improving access to markets with strict environmental standards. 

With the upfront costs of such measures typically being a barrier to participation for smaller farmers, DFA hopes to use its co-operative structure to provide technical and financial support that individual producers might struggle to access independently. 

In a statement, the DFA said: “Through this multi-year voluntary program, DFA will partner with farmer-owners to accelerate the adoption of conservation practices that align with evolving customer expectations and marketplace demands.

“Championing these innovations strengthens environmental stewardship, unlocks access to premium and emerging markets, generates diversified revenue opportunities, and ensures DFA farmer-owners remain leaders in a dynamic and competitive marketplace.”

Hansel New, DFA’s assistant vice president of sustainability strategy and programs, added: “By supporting on-farm improvements and connecting producers to these new market opportunities, we’re building a stronger, more resilient future for US dairy.

“And it’s particularly encouraging to see the USDA dedicate funding to help small farms implement these practices – a commitment that will make a real difference for producers across the country.”

Kansas-based DFA was named the second largest US co-op by turnover in last year’s Co-op 100 report from the National Cooperative Bank.