Milk and dairy
Learn how we support producers and consumers of milk and dairy products
Our Dairy Division regulates the Louisiana dairy industry by ensuring high-quality dairy products at fair prices for both producers and consumers.
Regulations, funding, and credits
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The Milk Bonding Law guarantees payment to the farmer for milk sold to the processing plant or cooperatives. This program is necessary because dairy farmers are the only farmers whose product is sold and consumed before they are paid.
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Created by ACT 461 of the 2007 Louisiana Legislature, this income tax credit is a direct dollar-for-dollar reduction against dairy producers’ income tax for the taxable year that is filed with the state.
The total amount of the tax credit that may be given to Louisiana milk producers is limited to $1.8 million dollars per year.
Louisiana dairymen may be eligible to receive tax credits ranging from $3,600 to $21,600.
The amount of tax credit is based upon the total claims made to the $1.8 million dollar cap allotment, milk production during the year, milk prices, production costs, and the number of quarters in a year that the USDA Uniform Price drops below the announced production price.
Through the combined efforts of the Louisiana Department of Revenue, LSU AgCenter, Department of Health and Hospitals, and the Federal Milk Market Administrator for Federal Milk Order #7, the Louisiana Department of Agriculture and Forestry will then determine the amount of tax credit that will be administered to producers.
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