The U.S. Department of Agriculture (USDA) has announced the termination of environmental, social, and governance (ESG) initiatives within the National Dairy Promotion and Research Program, which is funded by dairy farmers.
1. Program Overview: The Dairy Checkoff Program collects 15 cents per hundredweight of milk from dairy farmers for research and promotion of American dairy products.
2. ESG Initiatives: The USDA’s decision results from concerns that funds were being used for ESG projects, including targets for greenhouse gas emissions and sustainability, which deviated from the program's original purpose.
3. USDA Secretary's Statement: USDA Secretary Brooke Rollins emphasized that farmers' money should not support radical climate agendas but instead focus on market demand for dairy products.
4. Legal Action: The decision follows a lawsuit by the Wisconsin Institute for Law & Liberty (WILL) against the USDA and the National Dairy Promotion Board, which argued against the use of checkoff funds for ESG projects.
5. Broader Impact: This change could affect over 20,000 dairy farms and could extend to other agricultural checkoff programs, ensuring funds are used solely to strengthen markets for producers.
The USDA's action reflects a return to focusing on market support for dairy rather than funding external ESG initiatives, aligning the program with its original goals as set out by contributing farmers.
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