A new U.S. Department of Agriculture interim rule expands the milk options available in child nutrition programs, including schools. It allows schools to offer whole and 2% milk. This rule encompasses portions of the Whole Milk for Healthy Kids Act of 2025, signed into law in January. It restores milk choices removed under federal nutrition standards adopted in 2012.
Credit quality remains good
After years of historically low delinquency rates, credit quality at farm banks weakened modestly in 2025. The number of farm loans that were not repaid on schedule still remains low by historical standards. According to the American Bankers Association 2025 Farm Bank Performance Report, 98% of farm banks were profitable last year, with 73% reporting higher earnings than the previous year. The farm banks in the Plains region, including the Dakotas, increased their farm loans by 8.3%. For the Cornbelt region, including Minnesota, the number of farm loans rose by nearly 6%. In both regions, most farm banks strengthened their balance sheet slightly from the previous year.
USDA employee union asks Congress to intervene
The American Federation of Government Employees is upset with USDA’s reorganization plan. In a statement, the group said the forced relocation of more than half of the agriculture department’s Washington, D.C., workforce will undermine the work of the agency. The union said most workers will quit their jobs rather than uproot their families. It wants Congress to intervene and stop the relocation plan.
Farm bill timeline
Senate Agriculture Committee Chair John Boozman plans to release the Senate farm bill text in June and mark up the legislation later in the month. The House passed its version of the farm bill in late April with a vote of 224-200. The current extension of the 2018 farm bill expires at the end of September.
Crime Act impacts dairy shippers
The House passed a bill combatting organized retail crime. U.S. Dairy Export Council President/CEO Krysta Harden calls it a critical step; “Unfortunately, our dairy exports have been collateral damage as criminals break into shipping containers in search of high-value retail goods.” The bill now moves to the Senate.
Record exports
U.S. cheese exports broke new records in March. Cheese exports rose nearly 30%, while butter exports were up 77%. Total butterfat exports are up 110% year-over-year. The closure of the Strait of Hormuz and the impact on global shipping will likely influence international trade in the months ahead.
Food prices on the rise
The Consumer Price Index for food rose by half a percentage point in April. The food-at-home index increased 0.7%. The CPI index for dairy products was up 0.8%.
Farm equipment business under pressure
New numbers from the Association of Equipment Manufacturers show weak farm income continues to pressure machinery purchases. Overall tractor sales fell more than 11% in April compared to one year ago, while 4-wheel-drive tractor sales dropped nearly 43%. Combine sales were one of the few bright spots, rising 3.4% from last year.
De-risk your dairy
Beef-on-dairy has grown in popularity to the point where dairy cows make up roughly 15% of the national beef herd. Laurence Williams, a dairy-beef cross specialist with Purina Animal Nutrition, says beef-on-dairy is a great revenue stream for any dairy farmer. “If you want to de-risk your dairy a little bit, invest in good genetics, get them colostrum, do the right thing, and that will help ensure that these cattle do well at harvest and continue to be an important part of the beef supply,” Williams said. “I would just ask dairymen to recognize the importance of their contributions to the beef supply.”
Rollins sued
A lawsuit has been filed against Agriculture Secretary Brooke Rollins over her Easter message to USDA employees. The lawsuit claims the religious overtones in the message are a “clear violation” of the First Amendment. A USDA spokesperson said the agency doesn’t comment on pending litigation, but they will keep the plaintiffs in their prayers during the process.
‘Wisconsin futures’
The Wisconsin Farmers Union Foundation has launched “Wisconsin Futures.” This public education effort is designed to help people understand how policy decisions impact everyday life in rural communities. This digital and billboard campaign will showcase real stories from Wisconsinites. These stories make the connection between state and federal policies and their influence on farm income, household budgets and local services.
IDFA leader to retire
International Dairy Foods Association President and Chief Executive Officer Michael Dykes plans to retire at the end of the year. Dykes has been in this leadership role for 10 years. “Michael has been a transformational leader for IDFA and for the dairy industry,” said Daragh Maccabee, chair of the IDFA Executive Council. “Under his leadership, IDFA has built one of the strongest advocacy teams in Washington, strengthened its financial position, expanded industry engagement across the supply chain and helped deliver extraordinary momentum for dairy both domestically and globally.”
Farm bill veteran moves to BGR Group
A bipartisan lobbying and public relations firm, BGR Group, has added Kellie Adesina to its staff as a vice president specializing in agriculture and food policy. Most recently, Adesina was the government affairs director for Kraft Heinz. Before that, she was in a similar role at Bayer. She was chief counsel for former House Agriculture Committee Chair Collin Peterson during the 2018 farm bill debate.
Alice in Dairyland crowned
Anastasia Poull, Port Washington, is the 79th Alice in Dairyland. Poull is a graduate of South Dakota State University with bachelor’s degrees in animal science, agricultural leadership and agricultural science and a master’s degree in communications and media studies. Poull will succeed the current Alice in Dairyland, Sarah Hagenow, in July.
Trivia challenge
DiGiorno is the top-selling frozen pizza in the United States. That answers our last trivia question. For this week’s trivia, how many hours does the typical cow rest per day? We’ll have the answer in our next edition of the Dairy Star.
Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.
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