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Dairy Farmers of America DFA Cooperative Membership

By Dairy Farmers of America

Last reviewed: December 2025

Dairy Farmers of America (DFA) is the largest dairy cooperative in the United States, owned by nearly 11,000 family farms that collectively market their...

Quick Snapshot

Dairy Farmers of America (DFA) is the largest dairy cooperative in the United States, owned by nearly 11,000 family farms that collectively market their milk and share in the value created through processing and brand sales.

  • Who It's For: Dairy farmers seeking a stable milk market, competitive pricing, and farmer ownership in processing and marketing.
  • What It Does Best: Provides guaranteed milk pickup, competitive pay prices, equity building, and access to processing facilities and consumer brands.
  • Why It Matters: Cooperative membership gives farmers market security, ownership stake in value-added processing, and collective bargaining power.
  • Overview

    Dairy Farmers of America (DFA) is the nation's largest dairy cooperative, representing nearly 11,000 family farm members across 48 states. As a farmer-owned cooperative, DFA provides members with a guaranteed market for their milk while creating value through processing, marketing, and brand sales.

    DFA's vertically integrated business model spans from farm pickup through consumer brands including Dean's, DairyPure, TruMoo, Borden Cheese, and many regional favorites. This integration allows farmer-owners to capture value at multiple points in the supply chain rather than simply selling raw milk.

    The cooperative structure means farmers build equity over time and share in the profits from DFA's processing and marketing activities. Members receive their milk check plus patronage dividends based on the cooperative's performance.

    DFA also provides member services including risk management tools, sustainability programs, and connections to technical resources. The cooperative advocates on behalf of dairy farmers on policy issues and industry challenges.

    Ideal Users

    Farm Types: Conventional dairy, Organic dairy, Grazing operations, Large-scale operations

    Herd Size: All sizes from small family farms to large operations

    Key Roles: Dairy farm owners, Farm families, Next-generation farmers

    Geographic Focus: Nationwide coverage across 48 states

    Key Features

    Guaranteed Milk Market

    Reliable pickup and payment for all milk produced by member farms

    Competitive Pricing

    Market-based pricing with components, quality premiums, and volume considerations

    Equity Building

    Members build ownership equity in DFA over time, sharing in cooperative's value

    Patronage Dividends

    Annual dividends based on cooperative performance and member milk volume

    Consumer Brands

    Farmer ownership of well-known dairy brands creates additional value capture

    Advanced Capabilities

    Risk Management Tools

    Access to forward contracting and price risk management programs

    Sustainability Programs

    Support for environmental stewardship and sustainability certifications

    Young Farmer Programs

    Resources and networking for next-generation dairy farmers

    Technical Support

    Connections to dairy nutrition, reproduction, and management resources

    Integrations & Partnerships

    Works With: Milk hauling logistics, Component testing labs, Quality assurance programs

    Data Flow: Milk weights, components, and quality data flow from farm to cooperative; payment and market information flows back to farmers

    Industry Standards: FDA Grade A standards, PMO, FARM Program

    Competitive Advantages

  • Largest U.S. dairy cooperative with nationwide reach
  • Vertically integrated from farm to consumer brands
  • Farmer ownership creates long-term equity building
  • Diverse product portfolio reduces market risk
  • Strong balance sheet and financial stability
  • Getting Started

    Timeline: Membership application and approval process; milk pickup begins upon acceptance

    Infrastructure: Cooperative provides milk pickup; farms need standard bulk tank and cooling equipment

    Migration: Transition from previous milk buyer coordinated with DFA field staff

    Tips for Success:

  • Understand equity program and how ownership builds over time
  • Maximize quality premiums through SCC and component management
  • Engage with member communications and regional meetings
  • Explore risk management options for price volatility protection
  • Training & Support

    Training: Member meetings, regional conferences, sustainability training

    Support Channels: Field representatives, member services, regional offices

    Community: Member meetings, young farmer programs, annual meeting

    Pricing

    Model: Component-Based Milk Pricing with Cooperative Benefits

    How DFA Member Pricing Works

    DFA pays members based on Federal Milk Marketing Order component prices plus premiums and cooperative benefits.

    Component Pricing Basis

    | Component | Pricing Basis |

    |-----------|---------------|

    | Butterfat | $/lb based on butter price |

    | Protein | $/lb based on cheese price |

    | Other Solids | $/lb based on whey price |

    Typical 2024 Mailbox Prices: $18-22/cwt depending on region, quality, and market conditions

    Quality Premiums

    | Premium Type | Description |

    |--------------|-------------|

    | SCC Premium | Lower somatic cell count = higher premium |

    | Bacteria Count | Low bacteria counts earn premium pay |

    | Component Premium | Higher butterfat/protein content increases value |

    Standard Deductions

    | Deduction | Amount | Description |

    |-----------|--------|-------------|

    | Hauling | Varies by distance | Milk pickup and transportation |

    | Checkoff Assessment | $0.15/cwt | National dairy promotion |

    | Marketing Costs | Varies | Cooperative operating expenses |

    | Equity Retention | Portion of earnings | Builds your ownership stake |

    Cooperative Benefits (Beyond Milk Price)

    | Benefit | Value |

    |---------|-------|

    | Patronage Dividends | Annual cash + equity based on profitability |

    | Equity Building | Accumulate ownership, redeemable at retirement |

    | Risk Management | Forward contracting and price protection programs |

    | Insurance Access | Group purchasing programs |

    Contact: dairyfarmersnow.com | Contact your regional representative

    Evaluation Questions

  • Does DFA pick up milk in my area?
  • What is the equity program and how does it work?
  • What quality premiums are available?
  • How does the patronage dividend program work?
  • What member services are available in my region?
  • Recommended Reading

  • [Who We Are](https://www.dfamilk.com/who-we-are) (DFA): Overview of DFA's cooperative structure and mission
  • [Our Farmer-Owners](https://www.dfamilk.com/who-we-are/our-farmer-owners) (DFA): Stories from DFA member farms
  • [Our Commitments](https://www.dfamilk.com/our-commitments) (DFA): DFA's sustainability and community programs
  • Key Features

    • Guaranteed Milk Market: Reliable pickup and payment for all milk produced by member farms
    • Competitive Pricing: Market-based pricing with components, quality premiums, and volume considerations
    • Equity Building: Members build ownership equity in DFA over time, sharing in cooperative's value
    • Patronage Dividends: Annual dividends based on cooperative performance and member milk volume
    • Consumer Brands: Farmer ownership of well-known dairy brands creates additional value capture

    Advanced Features

    • Risk Management Tools: Access to forward contracting and price risk management programs
    • Sustainability Programs: Support for environmental stewardship and sustainability certifications
    • Young Farmer Programs: Resources and networking for next-generation dairy farmers
    • Technical Support: Connections to dairy nutrition, reproduction, and management resources

    Ideal For

    Farm Types: Conventional dairy, Organic dairy, Grazing operations, Large-scale operations

    Competitive Advantages

    What sets DFA Cooperative Membership apart from alternatives:

    • Largest U.S. dairy cooperative with nationwide reach
    • Vertically integrated from farm to consumer brands
    • Farmer ownership creates long-term equity building
    • Diverse product portfolio reduces market risk
    • Strong balance sheet and financial stability

    Pricing Information

    Here is the pricing information for DFA Cooperative Membership:

    DFA pays members based on Federal Milk Marketing Order component prices (butterfat, protein, other solids) plus quality premiums. Members also earn equity and patronage dividends.

    Pricing Model: Component-based milk pricing with cooperative benefits

    Actual milk prices vary by region, market conditions, and individual farm quality. Contact DFA for current pricing in your area.

    Pros & Considerations

    Advantages:
    • Largest dairy cooperative in U.S.
    • National market reach and influence
    • Diverse product manufacturing
    • Member services and programs
    • Market stability through size
    Considerations:
    • Large organization may feel impersonal
    • Pricing tied to commodity markets
    • Membership requirements apply
    • Regional differences in experience

    Implementation & Setup

    How to implement DFA Cooperative Membership on your dairy operation:

    Implementation Timeline: Membership application and approval process; milk pickup begins upon acceptance

    Training & Support

    Training and support options available for DFA Cooperative Membership:

    Support Channels:

      Evaluation Questions

      Key questions to consider when evaluating DFA Cooperative Membership:

      1. Does DFA pick up milk in my area?
      2. What is the equity program and how does it work?
      3. What quality premiums are available?
      4. How does the patronage dividend program work?
      5. What member services are available in my region?

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      About Dairy Farmers of America

      Learn more about Dairy Farmers of America and their complete product lineup on their company profile page.

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