By Ed Maltby, NODPA Executive Director
Wet spring, dry summer and a snowy, cold fall; nature is not being kind to the Northeast, and organic dairy in particular. In the last issue of NODPA News we highlighted the effect of the drought on pasture and forage production, with some producers losing up to 40% of their production, many culling some cows, selling young stock and using winter supplies of forage to supplement pasture. The availability of hay or baleage of a sufficient quality is now non-existent in the Northeast and Canada, with producers facing high costs for trucking on top of the cost of forage.
Organic dairying has no federal safety net if the price of feed skyrockets. The high price for calves and organic replacements helps cash flow, but the higher prices in spring and summer are now moderating for all organic replacements. Organic brands sell high quality product at high retail prices, on the guarantee of pasture-raised and -fed livestock, and, for Grass-Fed, 100% grass-fed. Milk brands that promote themselves as supporting their farmers—whether those farmers are owners or partners—should immediately provide substantial financial assistance for feed purchases in order to fulfill their promises to consumers.
NOFA New York initiated an appeal to organic dairy buyers in the region to issue immediate, per hundredweight market adjustment payments (MAP) to Certified Organic and Certified Grass-fed dairy farmers facing catastrophic feed shortages caused by the 2025 drought. They offered to meet with the milk buyers and discuss ways in which they could, in the absence of any immediate action by State and Federal governments, assist producers with costs outside of their capacity to pay. This letter was supported by NODPA, Organic Farmers Association (OFA), Northeast Organic Farming Association of Vermont (NOFA-VT), PCO Certified Organic, Western Organic Dairy Producers Alliance (WODPA) and Baystate Organic Certifiers. Copies of the letter were picked up by the media and generated interest among the regional newspapers.
NOFA NY received replies from just two buyers, Lactalis and CROPP. Lactalis explained that they had been monitoring the situation with their farmers since the summer, instituted a pay increase in July, helping farmers source feed and have a fund set aside to help with cost of hauling in feed (usually a technical assistance fund of up to $4,000 per farm/year (to the extent applicable)). They do not have a Grass-Fed certification requirement and reported that their farmers were pleased with this response. CROPP, who has their own Grass Fed brand, expressed support for producers; wanted more data but didn’t want to single out an area for a MAP because it sows discontent in other regions. They are looking into bulk shipments of hay by rail to assess whether it is more cost effective than trucking.
This time of year, milk buyers are informing their producers about their plans for 2026 Pay Price and support services. Below, we have an incomplete explanation of what buyers in the Northeast are planning for 2026. A few (Maple Hill and Upstate) are transparent about what they are paying, and the many different levels of payments for components, volume, quality and animal welfare to name a few. The other buyers prefer not to be transparent and provide nothing publicly, with many warning producers not to share information and penalizing them if they do. This leaves producers unable to have clear information on what is one of the most important aspects of their business and encourages gossip, half-truths and misrepresentation of the pay price structure.
Please note that Pay Price will vary from farm to farm depending on many conditions that vary from each dairy, and from season to season. For example, some buyers pay more for components, or have a different structure for payments, than others, benefiting those Jersey herds on grass. A decision about which buyer to work with is also based on that buyer’s history in the Northeast marketplace and the level of trust and responsibility they have had towards producers in the past.
As a guide to the cost of operating a organic dairy farm in New York, the Department of Animal Science, Cornell University did a survey of organic dairy farms (none of which were Grass Fed certified) in 2023. The survey found the ‘Total Cost to Produce Milk’, which incorporates the opportunity costs associated with operator and family contributions of labor, management, and equity capital to the business in 2023, averaged $46.24 per cwt.
A full list of milk buyers and their contact information is on page ?? of this issue.
Maple Hill has full transparency in a relatively easy to understand guide to Pay Price, below. Their increase of an annualized $4/cwt in 2026 does help keep up with inflation and the increased expense of tariffs that are affecting all of agriculture, but not much more, based on 2023 data for Grass-Fed operations in a survey by Sarah Flack and the University of Vermont.
|
2026 Maple Hill Pricing in $/cwt for Grass Fed OPT certification |
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|
|
Jan |
Feb |
March |
April |
May |
June |
July |
Aug |
Sept |
Oct |
Nov |
Dec |
|
Base |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
45.36 |
|
Avg Quality and Components |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
3.14 |
|
Over |
52.00 |
46.00 |
43.00 |
42.36 |
28.00 |
28.00 |
38.00 |
42.36 |
45.36 |
45.36 |
49.00 |
52.00 |
|
Under |
|
|
|
|
5.00 |
5.00 |
|
|
|
|
|
|
|
Volume >30K lbs. |
0.50 |
0.50 |
0.50 |
0.50 |
|
|
|
0.50 |
0.50 |
0.50 |
0.50 |
0.50 |
|
Volume 50k lbs. |
0.75 |
0.75 |
0.75 |
0.75 |
|
|
|
0.75 |
0.75 |
0.75 |
0.75 |
0.75 |
|
Volume>70k lbs. |
1.00 |
1.00 |
1.00 |
1.00 |
|
|
|
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
|
Hauling share |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
|
* $1/cwt of $45.36 is prepaid for active producers on 1/10/2026 |
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|
Example of all in pay |
49.00 |
49.00 |
49.00 |
49.00 |
48.50 |
48.50 |
48.50 |
49.00 |
49.00 |
49.00 |
49.00 |
49.00 |
|
**All in pay for a farm with Avg Q&C's, >30k volume, before over/under, and hauling, before Pay for Progress |
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Over and under provision is a way of dealing with seasonal production, it penalizes the producer if they go over their agreed volume during times when the supply is high (Spring flush) and rewards the producer when they produce more when supply is low (December).
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They have increased their base pay price by $3/cwt on their 2025 Pay Price and are looking for new or transitioning producers. Producers have found Upstate to be fair and accessible over the many years they have been in organics. Below are some of the details of the UNC 2026 Organic Program:
Reports from producers are that CROPP/Organic Valley no longer has a field rep for New England, but they have three for New York. Requests for verification of Pay Price and conditions from CROPP were not returned. Producers have reported a mailbox price for Grass Fed of approximately $45/cwt that would include components and other premiums. Pay Price without the Grass-Fed certification reflects other buyers with an annualized average of approximately $38/cwt. CROPP is based in Wisconsin and has been a national buyer for organic milk for nearly 3 decades. In the past few years they have not been a leader in Pay Price and slow to increase their Pay Price.
It’s rapidly growing its milk supply and has secured a major Grass-Fed dairy in New York to switch from its previous buyer. Reports from producers are that their Pay Price is over $52/cwt. Their requirements are USDA Certified Organic and Regenerative Organic certified, 100% Grass Fed to the American Grass Fed Association standards, A2/A2 milk and Animal Welfare Certified. Origin has it’s own farm inspections 2 times per year. Their quality premiums are standard and based on the average quality for the month (see below)
|
Standard Plate Count |
<5,000 = $0.25; <10,00 = $0.10 |
|
Somatic Cell Count |
< 100,000 = $1.00; 100,00-150,000 = $.75; 150,001-200,000 = $0.5; 200,001-250,000 = $0.25; 250,001-300,000 = $0.10; |
|
Preliminary Incubation Count |
<10,000 = $0.25 <20,000 = $0.10 |
|
Coliforms (Reference) |
<10 |
They chose not to share their Pay Price but producers share that they are usually approximately the same as Upstate. They do not have a Grass Fed program and will bi-annually evaluate data collected through its Technical Assistance Program and external market conditions associated with farms’ cost of production, particularly the cost of feed. This information will be used to adjust the Base Pay Price to be responsive to both short-term and long-term changes in cost of organic milk production. It’s base pay price is slightly lower than UNC at $34.66/cwt as are their quality premiums, but their volume payments are slightly higher. Their components are fixed but UNC varies theirs with FMMO 1. Trucking for Lactalis is free if the volume is over 1,000 lb. every other day. They are looking for producers in eastern New York and have established another route with producers that have switched buyers in New England.
They do not choose to share details of the Pay Price structure but remain competitive and are looking for producers.
They choose not to share their Pay Price but producers report a range of $40 to $45/cwt and report having a good relationship with the new owners, Horizon Family Brands.
Posted: to Industry News on Sat, Jan 10, 2026
Updated: Sat, Jan 10, 2026
