New SNAP bill could put $2.4B/year in dairy farmers’ pockets while fixing America’s nutrition gap. Here’s how to cash in.
EXECUTIVE SUMMARY: The bipartisan Dairy Nutrition Incentive Program Act proposes dollar-for-dollar SNAP matches for milk, cheese, and yogurt purchases, potentially boosting farm revenues by $1.20/cwt while addressing America’s 90% dairy consumption gap. Backed by major industry groups and 40+ lawmakers, the bill modernizes outdated nutrition policies by including whole milk and leveraging successful state models like Michigan’s 27% dairy sales surge. With Farm Bill reauthorization looming, farmers are urged to contact legislators by May 1 to secure this $2.4B/year market expansion that ties farm profits directly to public health outcomes.
KEY TAKEAWAYS:
- Market Game-Changer: 40M SNAP users could drive $6.2B/year in dairy sales via app-based rebates
- Policy Shift: First federal recognition of whole milk’s value since 1980s nutrition guidelines
- Profit Potential: Projects +$1.20/cwt milk price support and 4.7% processor demand growth
- Proven Model: Michigan’s incentive program boosted dairy sales 27% at participating stores
- Act Now: Critical May 1 deadline to influence Farm Bill inclusion
Let’s cut to the chase – the Dairy Nutrition Incentive Program Act isn’t just another Washington talking point. It’s potentially the most significant dairy market expansion opportunity we’ve seen in decades. Introduced by Senators Amy Klobuchar (D-MN) and Roger Marshall (R-KS) last month, this bill would match SNAP dollars spent on milk, cheese, and yogurt, doubling consumer purchasing power for our products.
Why you should care: Those 40 million SNAP recipients represent about 20% of all U.S. food sales. This legislation could pump $2.4 billion annually into dairy cases nationwide. As Wisconsin producer Sarah Thompson told me last week, “After three brutal years of barely breaking even, this could finally mean stable prices for my 500-cow operation while getting good food to families who need it.”
WHAT’S ACTUALLY IN THIS BILL?
From School Milk to Your Milk
The bill builds on the 2018 Farm Bill’s Healthy Fluid Milk Incentive (HFMI) program that’s already helped 340,000 SNAP families buy more dairy. The new provisions would:
- Finally, include whole milk: End decades of the feds pushing only low-fat options
- Add cheese and yogurt: Dollar-for-dollar matches at 250,000+ retail stores
- Modernize the system: Replace paper coupons with app-based rebates
Senator Marshall (a doctor) didn’t mince words: “We have a generation who didn’t drink much milk growing up, and now we’re seeing osteoporosis a decade earlier than previous generations.”
This marks a huge shift from the old federal nutrition programs that treated butterfat like poison. The science has finally caught up to what dairy farmers have known – dairy fat isn’t the enemy.
THE NUMBERS THAT MATTER
| Metric | Current Status | Post-Bill Projection |
| SNAP dairy sales | $3.8 billion/year | $6.2 billion/year |
| Farm milk price support | $18.50/cwt | +$1.20/cwt margin |
| Processor demand | 2.1% annual growth | 4.7% annual growth |
Sources: IDFA, NMPF, USDA ERS
Mike Dykes from IDFA calls this “a reliable investment in improving our nation’s health while reducing hunger.” Translation: more sales for us, better nutrition for consumers.
Gregg Doud at National Milk says, “Nearly 90 percent of Americans don’t get enough dairy. This fixes that problem.”
WHAT YOU SHOULD DO RIGHT NOW
- Call your House Ag Committee rep before May 1 – Get this into the Farm Bill extension
- Talk to your co-op or processor – Make sure they’re ready for increased whole milk demand
- Connect with local grocery stores – They’ll need to understand how the program works
The timing couldn’t be better – the 2018 Farm Bill extension runs out on September 30, 2024. This gives us a perfect vehicle to get this program approved.
Senator Marshall thinks both this bill and the Whole Milk for Healthy Kids Act (from House Ag Chair Glenn “GT” Thompson) will “get across the finish line this session.” The Senate Ag Committee just held hearings on getting whole milk back in schools, so momentum is building.
THIS WORKS – JUST ASK MICHIGAN
Michigan’s Double Up Food Bucks program has proved that this concept works. Dairy sales jumped 27% at participating stores. Detroit grocer Luis Torres told me, “We went from just moving milk to building real customer loyalty.”
In 2021 alone, that program helped 759,000 families spend $20 million on healthy foods – an 85% increase from the year before.
Unlike other government programs that restrict what people can buy, this one encourages better choices. Jennifer Hatcher from the Food Industry Association says it “empowers retailers to help families incorporate more dairy alongside fruits and vegetables.”
WHO’S BACKING THIS?
Pretty much everyone who matters in dairy:
- International Dairy Foods Association
- National Milk Producers Federation
- FMI – The Food Industry Association
- National Grocers Association
- Associated Milk Producers Inc.
- Dairy Institute of California
- Northeast Dairy Foods & Suppliers Associations
- Dairy Products Institute of Texas
- Wisconsin Cheese Makers Association
When was the last time you saw all these groups agree on anything?
BOTTOM LINE
This bill bridges the gap between USDA’s dietary guidelines and what’s happening on our farms. With 90% of Americans not getting enough dairy, this positions us as the solution rather than the problem.
Do these three things:
- Today: Download IDFA’s advocacy toolkit at idfa.org/dairynourishes
- This week: Get your co-op board talking about this at your next meeting
- By May 1: Call your senator’s office using the talking points from IDFA
As Mike Dykes puts it: “This isn’t about handouts—it’s about handshakes between dairy farms and the families we feed.”
This isn’t just about selling more products next quarter for dairy farmers. It’s about rebuilding dairy’s place in American diets for generations. As Michigan producer Torres told me last week: “When good policy meets good nutrition and farm economics, we all win.”
The bill’s moving through Congress now. Make sure your voice is heard so this thing becomes reality.
Learn more:
- House Agriculture Committee Passes 2024 Farm Bill – Key Dairy Programs Included
Explore how the 2024 Farm Bill supports dairy farmers through extended programs like Dairy Margin Coverage and new conservation incentives. - House Budget Cuts: $230 Billion Threat to Agriculture, SNAP, and Dairy Farmers’ Livelihoods
Learn how proposed budget cuts could impact SNAP benefits, milk demand, and the economic stability of dairy farmers nationwide. - Congress Milks Bipartisan Support for Dairy: 4 Game-Changing Bills You Need to Know
Dive into four pivotal dairy bills addressing SNAP incentives, school milk policies, global trade protections, and tax benefits for farmers.
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