Manure tanker.
April 23, 2020

National, 5 Cent Checkoff Won’t Be Collected on Dumped Milk

 |  By: Jim Dickrell

The United States Department of Agriculture confirms that the 5₵/cwt assessment for dairy research and promotion efforts will not be collected on milk that is dumped due to the COCID-19 pandemic.

Whether the remaining 10₵/cwt assessment that goes to state and regional programs is collected depends on individual state law.

“When milk is dumped and not marketed commercially, there is no requirement to pay the [Federal] assessment,” says a USDA spokesperson. “If milk is dumped and a producer receives payment from their cooperative or handler, the assessment would not be collected because the milk has not been commercially marketed.

“However, in States that have mandatory assessment laws, a producer may only be exempt from the Federal portion of the assessment (5₵/cwt) and may still be responsible for the payment of the 10₵, or whatever amount is specified by the State law,” says the USDA spokesperson.

California will not collect the 10₵ assessment on dumped milk, says Jen Giambroni, Director of Communications for the California Milk Advisory Board. “According to the California Department of Food & Agriculture, in California – where a state portion of the national assessment is administered – the same guidance will apply for milk that is dumped,” she says.

Other states in the Midwest and Northeast have not yet responded to our queries on whether they will suspend collections of their state checkoff portion on dumped milk. We will update this story as we receive those statements.