Dairy Farmers of America DFA Cooperative Membership
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.
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
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:
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
Recommended Reading
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
- Largest dairy cooperative in U.S.
- National market reach and influence
- Diverse product manufacturing
- Member services and programs
- Market stability through size
- 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:
- 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?