Three Wisconsin dairy farmers have filed a lawsuit against the Trump administration, challenging a federal program that requires them to pay mandatory fees and hand over operational data. The suit, lodged Wednesday, targets the Dairy Checkoff Program, a longstanding mechanism that collects 15 cents per 100 pounds of milk sold to fund promotion and research.
The farmers argue that the fees—which also apply to importers at 7.5 cents per hundredweight—are being funneled into environmental, social, and governance (ESG) initiatives they never agreed to support. Specifically, they object to funding the Innovation Center for U.S. Dairy, a nonprofit pushing for reduced greenhouse gas emissions and sustainability measures in milk production.
“Despite this administration’s speech—uniformly critical of ESG’s legitimacy within regulatory frameworks forced upon American citizens and businesses—ESG mandates remain firmly in place in American agriculture,” the lawsuit states. The plaintiffs contend that the program forces them to subsidize organizations that then impose ESG demands back on the same farmers.
The complaint points to several of Trump’s executive orders that direct agencies to eliminate “burdensome and ideologically motivated ‘climate change’ or energy policies” and ensure a level playing field for farmers against foreign competitors. The farmers say the checkoff program violates those directives.
Last week, Representative Derrick Van Orden (R-Wis.) raised similar concerns during a House Oversight hearing, questioning Agriculture Secretary Brooke Rollins about proprietary data from the checkoff being shared with Canada. Rollins acknowledged the issue, saying, “Your dairy farmers, especially your small guys, have to provide this crazy amount of data—what they feed their cattle, where the manure is disposed—all in the name of climate.” She added that farmers who fail to comply cannot sell their milk, calling it “a really big challenge, way under the radar.”
The Dairy Checkoff Program collects over $300 million annually, according to 2021 data from the nonpartisan Farm Action group. By comparison, the pork checkoff brings in about $94 million, and the beef checkoff exceeds $1 billion. The USDA referred inquiries to the Department of Justice, which did not immediately respond.
The lawsuit arrives amid broader tensions over ESG policies in agriculture, with some Republicans arguing that such mandates undercut Trump’s promises to slash regulation. For dairy farmers already squeezed by rising costs and trade uncertainties, the checkoff has become a flashpoint in the debate over how federal programs interact with ideological agendas.
The Hill reached out to Farm Action, the National Cattlemen’s Beef Association, and the Dairy Checkoff program for comment. The case underscores a growing rift between the administration’s anti-ESG rhetoric and the practical realities of federal agricultural programs that remain unchanged.
