Whole milk's return and key dairy industry insights.
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January 20, 2026  

Whole milk

Whole Milk returns to school Cafeterias: A major win for student nutrition

Source: Minnesota Milk

 

President Trump has officially signed the Whole Milk for Healthy Kids Act into law,

marking the end of a 14-year restriction

on fuller-fat milk options in the National School Lunch Program. This bipartisan legislation restores the authority of schools to offer whole and 2% milk—both flavored and unflavored—alongside the fat-free and low-fat options that have been the standard since 2012. The move is a cornerstone of the administration’s efforts to modernize school nutrition, aligning cafeteria offerings with the newly released 2025–2030 Dietary Guidelines for Americans, which reintroduce full-fat dairy as part of a healthy diet.
 
The dairy industry and farm cooperatives across the country have hailed the signing as a historic victory for both children and producers. Organizations like the National Milk Producers Federation (NMPF) and Edge Dairy Farmer Cooperative noted that providing the milk varieties kids already enjoy at home will encourage higher consumption of essential nutrients like calcium, potassium, and Vitamin D. Beyond nutrition, the law is expected to provide a significant economic boost to American dairy farmers by expanding market access for their products. With the USDA issuing immediate implementation guidance, schools can begin the process of bringing "the milk mustache" back to lunchrooms across the nation.

 

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cows

DMC sign-up through February 26 - choose your new production history

Source: Edge Dairy Farmer Cooperative

 

Dairy farmers interested in the DMC program need to work with their processor to ensure they choose a new production history year - Existing dairy operations that started marketing milk on or before Jan. 1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023.

  • New dairy operations that started marketing milk on or before Jan. 1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023.

  • Starting in 2026, DMC’s Tier 1 coverage level increased from 5 million pounds to 6 million pounds.
  • Dairy operations also have the option to lock-in coverage levels for six years (2026 - 2031) with premium fees discounted by 25%.

Minnesota members under 16,000,000 pounds of production should also watch for details about the state DAIRI program, which will have more information this spring.

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DMC Decision Tool predicts payments

Source: Progressive Dairy

 

Price forecasts for 2026 have been released. Based on current milk and feed prices and futures markets, the 2026 milk income margins could be the lowest since 2023. Monthly DMC margins are forecast below $7.75 per hundredweight (cwt) for January-April and below $8.60 per cwt through August. The annual margin is forecast at $8.40 per cwt, well below the $9.50 per cwt Tier 1 indemnity payment trigger level. In addition, margins for five months (January-May) are currently forecast below the $8 per cwt Tier II indemnity payment trigger. Although, markets do change.

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Apply now for the Dairy Business Planning grants 

Source: MN Department of Agriculture

 

The Dairy Business Planning Grant encourages business planning for Minnesota dairy farms and dairy processors.

 

Grants cover 50% of the cost, up to $5,000, to hire a qualified, independent third party to provide technical assistance services for evaluating the operation, transitional changes, expansions, improvements, and other business modifications.

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Tools to make your farm more profitable

Source: SFA

 

Join SFA and MDI for an educational event on January 29th from 11am-2pm in Alexandria.
 
Featuring Sarah Lloyd – Supply Chain Specialist, Grassland 2.0, UW-Madison  
“Building ecological and economic opportunities for dairy heifer grazing” 
 
Dairy heifer grazing has potential to build viable farm enterprises and improve water quality and soil health outcomes. This session includes information about efforts in the Upper Midwest to expand custom dairy heifer grazing. Dr. Lloyd will share information about enterprise economics, animal performance, and ecological outputs from dairy heifer grazing. She will also share guidelines for setting up agreements between “sending” farms and custom operators.

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Women in Dairy: The power of one word

Source: UMN Extension

 

Come enjoy an evening of networking, education and empowerment featuring Peggy Coffeen!
 
The Minnesota Dairy Initiative and the University of Minnesota Extension are excited to announce the upcoming Women in Dairy event! The Women in Dairy: The Power of One Word event is planned for Thursday, February 5 from 6:00-8:30 p.m. at the Crow River Winery (14848 MN Highway 7) in Hutchinson, MN. The event's purpose is to inspire attendees with ties to the dairy industry through networking, education and empowerment. 
 
Registration deadline is January, 21st.

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dairy market - mn

Dairy Stream (3)
Immigration resources

Upcoming Events

  • February 24-25, 2026 | Annual Meeting & Dairy Day at the Capitol
  • May 6, 2026 | Ice Cream Day at the Capitol

Voice of Milk (2)

Thank you to our MN Milk Sponsors

 

Elite Sponsors

American Foods Group

Compeer Financial

 

Platinum Sponsors

AgCountry

Agropur

Bongard's Premium Cheese

Select Sires

 

Gold Sponsors

Alltech

Arnold's of Kimball, Inc.

Minnesota Dairy Initiative

American National

 

Minnesota Milk, PO Box 65, Brooten, Minnesota 56316, US, 320-429-4838

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