Does Checkoff Make a Difference? Impact Analysis Says Yes

Does the dairy checkoff really make a difference?

 It’s a question I commonly am asked when I talk with farmers. It’s a fair question, and one my fellow board members and I should always feel comfortable answering. After all, this is your money. You deserve a clear view of where it goes and what it accomplishes for your farm and for our industry.

Financial transparency matters to me because I’m a farmer first. My husband Duane and I look at our year-end numbers the same way you do. We ask where we spent more than expected, where we got value and what we need to adjust for next year. We can’t plan for the future if we don’t evaluate the past. 

That’s why a new checkoff economic impact analysis led by Dr. Oral Capps of Texas A&M University is so important. It’s a step toward closing the loop on the investment we make through our checkoff. It’s not a collection of feel-good stories, but real data that measures what the checkoff delivered and where its impact comes from.

Impact isn’t always easy to see from the milking parlor and that’s exactly why this analysis matters. For many farmers, the checkoff can feel abstract, but this report helps bridge that gap.

 During a recent focus group, DMI shared Dr. Capps’ findings with farmers and the feedback was honest. Some had questions and some were surprised by the numbers. One said they had never seen information laid out this clearly. Another said it affirmed that the investment is worth it. Others said this kind of transparency needs to reach more of us.

I couldn’t agree more, which is why I want to walk through what the analysis shows and why it matters.

Dr. Capps examined four key areas of checkoff strategy: foodservice partnerships, fluid milk innovation, whole-fat dairy science and exports. Farmers made a deliberate choice years ago to move beyond traditional advertising and work with and through partners who could move a lot of dairy and bring real scale to our products. 

His job was to run a replicable, peer-reviewed economic analysis. If the results were weak, he would have reported that. Instead, he found positive impact across the board.

Foodservice Partnerships

When you walk into Domino’s, Taco Bell or McDonald’s and see more cheese or dairy ingredients on their menus, you’re seeing the outcome of years of farmer-led strategy. Dr. Capps examined pounds of milk-fat equivalent used by these partners compared with checkoff investment from 2009 to 2024 and found a net return of about 3.5-to-1. Every dollar invested generated roughly $3.50 in dairy sales.

And even that may underestimate the impact because it doesn’t include spillover effects when other companies copy what major brands do.

Fluid Milk Innovation

We all know fluid milk has faced a long, steady decline. But innovation is changing the trajectory. Lactose-free, ultra-filtered and gut-health focused milks are growing because checkoff invested early to support innovation in these areas. From 2018 to 2024, the average return was 1.7-to-1. Even more encouraging, recent years reached as high as 6.4-to-1. Without this innovation, the decline likely would have continued or accelerated. Instead, we are seeing fresh momentum.

Whole-Fat Dairy Science

This is one of the most meaningful findings to farmers. Through National Dairy Council, we have invested in credible research to help update outdated perceptions of whole-fat dairy. This investment helped put butter back on the table and stabilized whole milk sales. Dr. Capps found a net return of 35-to-1 from 2012 to 2024. That is what happens when credible science and consistent communication meet shifting consumer expectations.

Exports

Farmers had the foresight in 1995 to establish the U.S. Dairy Export Council through our checkoff. Today, exports account for roughly one out of every six tankers of milk produced in the United States. Dr. Capps found that from 2013 to 2024, checkoff investment in skim-solids exports returned roughly 12-to-1. Exports help balance the domestic market and add value to milk, supporting price stability for all of us.

These results show strong returns, but I know the next question is the one that matters most: what does this mean for your farm?

Dr. Capps ran simulations to estimate the all-milk price without the checkoff. The analysis found it would be about one dollar per hundredweight lower. 

You may not see the checkoff’s work every day, but you would certainly feel its absence.

As farmers, we know we can’t make next year’s decisions by guessing. We look at what worked, learn from what didn’t and make sure our eyes stay forward. This economic impact report is our version of that. It helps us understand where our impact is strongest and where we need to keep sharpening our strategy.

Most of all, it reminds us of something easy to overlook. No single farm could create this kind of market impact alone. But together, through steady leadership and long-term farmer direction, we’ve built a checkoff strategy that helps grow sales, strengthens trust and keeps dairy at the center of people’s lives.

So, I’ll close the way I started: does the checkoff make a difference?

Based on Dr. Capps’ analysis, yes.

And we’ll keep working to make sure you can see that impact clearly and trust that your investment is delivering for our farms and our future.