The question of whether dairy farmers will sue over federal regulation mandates is complex and tied to recent changes in dairy policy and pricing rules that have significantly impacted farmers’ incomes. While there is no widespread public record of lawsuits filed by dairy farmers specifically over these mandates as of now, the situation has created considerable tension and financial strain within the industry, which could potentially lead to legal challenges.
Recently, the federal government implemented new Federal Milk Marketing Order (FMMO) amendments that took effect on June 1, 2025. These changes included increasing “make allowances,” which are deductions representing the costs processors incur to turn raw milk into products like cheese and butter. The higher make allowances have effectively lowered the prices dairy farmers receive for their milk by about 4-5%, resulting in an estimated $337 million loss nationwide in just three months. The hardest-hit regions include the Upper Midwest, Northeast, and California, each losing tens of millions of dollars. Farmers argue that the make allowances were set based on self-reported, non-audited data from processors, which may not accurately reflect true costs and unfairly depress milk prices paid to producers.
This pricing shift has caused significant financial pressure on dairy farmers, many of whom already face tight margins and a shrinking industry. The National Milk Producers Federation and other dairy groups have been actively advocating for reforms and transparency, including mandatory biennial cost surveys of dairy processing plants to ensure fairer pricing. These surveys were authorized in the recent “One Big Beautiful Bill Act,” which also reauthorized the Dairy Margin Coverage program through 2031 to provide some financial safety nets for farmers.
Despite these legislative efforts, the immediate impact of the FMMO changes has been negative for many producers. The perception that federal regulations favor processors over farmers has fueled frustration and calls for further review or adjustment of the rules. While this environment creates fertile ground for legal action, actual lawsuits would depend on whether farmers or their organizations believe they have a strong legal basis to challenge the federal mandates, such as claims of unfair rulemaking or procedural errors in how the rules were established.
In addition to pricing issues, dairy farmers face other regulatory challenges, including labor reforms and environmental conservation program requirements. The agricultural labor reforms aim to provide better access to visa programs for dairy workers, which is critical given labor shortages. Conservation funding and income eligibility waivers have been expanded to help farmers adopt sustainable practices without losing financial support. These regulatory areas, while complex, have not sparked the same level of controversy or financial
