DOGE axes $132M in USDA DEIA/climate contracts and preserves core checkoff programs. WWF ties are scrutinized as the GOP-backed whole milk expansion gains bipartisan support. Fiscal focus meets farm priorities.

Summary:

The DOGE review slashed $132M in USDA contracts, with $100M targeting DEIA consulting and $8.2M from climate programs, per FOIA data. While on-farm conservation projects were spared, mid-sized dairies report payment delays, and checkoff ties to WWF ($36M since 2008) face scrutiny. Bipartisan wins like whole milk in schools contrast with industrial advantages: IRA-funded methane digesters remain untouched. Transparency demands grow as the details of 78 terminated contracts trickle out weekly.

Key Takeaways:

• $132M in Cuts Target Bureaucracy: $100M was slashed from DEIA consulting contracts, $8.2M from climate programs, and $20M in conservation funds were temporarily frozen. Zero on-farm projects were terminated (USDA FOIA).
• Checkoff-NGO Ties Exposed: Dairy checkoff programs have partnered with WWF on methane goals despite the latter receiving $36M in USDA funding since 2008. The 2023 Farm Bill already bars NGO checkoff funding.
• Mid-Sized Farms Squeezed: NRCS payment delays for cover crops and conservation practices, while mega-dairies retain IRA-funded methane digesters (USDA FPACBC).
• Bipartisan Bright Spot: Whole milk expansion in schools gains rare GOP/Democratic support. It is funded partly by DEIA cuts (USDA FNS).
• Transparency Demands: Only 10/78 terminated contracts were detailed publicly. Weekly disclosures are to continue at doge.gov/savings.
• Industrial Advantage: FMMO handler assessments (5¢/cwt) and methane digester subsidies remain untouched, favoring large operations (ERS Dairy Outlook).

The Department of Government Efficiency’s (DOGE) unprecedented review of USDA contracts has triggered a seismic shift in dairy policy. The DOGE has terminated $132 million in agreements, exposing tensions between climate initiatives, checkoff partnerships with NGOs, and core agricultural priorities. Only 10 of the 78 terminated contracts—totaling $4.21 million—have been publicly disclosed. Farmers and lawmakers demand transparency as conservation reimbursements stall and mandatory checkoff ties to the World Wildlife Fund (WWF) face scrutiny.

The $132 Million Breakdown: DEIA Dominates Cuts

Table 1: Breakdown of USDA Contract Terminations (Source: USDA)

FOIA disclosures reveal $100 million of terminated funds stemmed from four USDA Food and Nutrition Service (FNS) contracts for “Diversity, Equity, Inclusion, and Accessibility (DEIA) Assessment and Training Services” with Capitol-region consulting firms. Climate programs also took hits:

• An $8.2 million contract for “Climate-Smart Commodities Environmental Compliance” was axed
• $20 million in Inflation Reduction Act (IRA) conservation funds remained frozen until February 20

“They’re cutting paperwork, not plows,” noted a Pennsylvania dairy producer who requested anonymity. “My NRCS payments came through after the pause lifted. This is about stopping DC’s social engineering, not harming farmers.”

Key Clarification: USDA confirmed zero on-farm conservation projects were terminated. All cuts targeted administrative or NGO-linked contracts.

Checkoff Programs Under Microscope: The WWF Web

Table 2: Federal Funding to World Wildlife Fund (2008-2025) (Source: USAspending.gov)

The mandatory 15¢/cwt dairy checkoff—overseen by USDA’s Agricultural Marketing Service (AMS)—faces DOGE scrutiny over its partnerships:

• $36 million: USDA grants to WWF since 2008
• $1 million/year: USDA’s cost to oversee dairy checkoffs via AMS
• 300–500 companies: WWF’s supply-chain leverage target to enforce sustainability standards

Documents show dairy checkoff groups (DMI, NDB) partnered with WWF as early as 2008 to develop methane-reduction frameworks—a move critics call contradictory:

“Checkoffs should promote milk, not police emissions,” argued Wisconsin Farm Bureau president Kevin Krentz. “WWF’s ‘Net Zero’ goals help processors, not producers.”

GOP Progress: The 2023 Farm Bill already barred checkoffs from funding NGOs, but DOGE’s review could accelerate reforms like Rep. GT Thompson’s proposed checkoff audit system.

Conservation Chaos? Data vs. Anecdotes

While USDA assures farmers that “contracts made directly to producers will be honored,” confusion persists:

• EQIP/CSP/ACEP: $20 million released February 20 from farm bill programs
• IRA projects: Remain under review, prioritizing “farmers over far-left climate schemes”
• WWF exemptions: $36 million USDA contract untouched despite broader NGO cuts

Contradictory impacts emerge:

• Industrial advantage: Mega-dairies retain IRA-funded methane digesters (exempt from pauses)
• Mid-sized squeeze: Missouri farmers report delayed NRCS payments for cover crops

The Whole Milk Win: Bipartisan Bright Spot

Amid the turmoil, Secretary Rollins’ February 15 announcement expanding whole milk in school meals earned rare bipartisan praise:

“Finally, USDA promotes real dairy instead of plant-based imitations,” said Holstein Association CEO John Meyer. “This aligns with Rep. Mike Lawler’s Whole Milk for Healthy Kids Act.”

Financial context: The DEIA cuts freed up $100 million to buy 250 million school milk cartons annually at current FNS rates.

Path Forward: Transparency and Trade-Offs

As DOGE’s review expands, stakeholders demand:

1. Full disclosure of all 78 terminated contracts (available weekly at doge.gov/savings)
2. Preservation of FMMO handler assessments (5¢/cwt costs untouched)
3. Audits of AMS’ $1.5 million annual checkoff oversight

Bottom line: 

While small farms face paperwork delays, industrial operations gain ground through preserved IRA exemptions. Texas A&M economist Dr. Mark Welch observed that “Efficiency reviews always have winners. Here, it’s those who need bureaucracy least.”

Learn more:

• Trump Administration Scrambles to Rehire USDA Bird Flu Experts After Accidental Firings
• USDA Dairy Products Report: Deciphering the Shifts in Cheese Production
• Managing During the Storm: Dairy Farmers’ Guide to Winter Crisis Preparedness

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