Lawrence, Stender: It’s Time to Prioritize, Incentivize Dairy Processing in PA

5/15/2025

HARRISBURG – Reps. John Lawrence (R-Chester) and Michael Stender (R-Northumberland/Montour) attempted to amend legislation in the House Tuesday to provide a long overdue and much-needed boost to Pennsylvania’s struggling dairy industry. Both measures were rejected on a 102-101 party-line vote.

The amendments were aimed at fixing the Economic Development for a Growing Economy (EDGE) Tax Credit Program, which was created in 2022 to help attract large dairy processors like the ones that are now choosing to locate in neighboring states. However, the substantial amount of investment required to qualify for the tax credit has left the program unused. 

Lawrence’s amendment to House Bill 500 would make Pennsylvania more competitive by providing tax incentives to locate new or expand existing dairy processing plants to provide increased processing capacity for Pennsylvania milk. The amendment also addressed two key environmental concerns by providing tax incentives for the construction of methane digesters to reduce nutrient runoff into the Chesapeake Bay along with implementation of new technologies to reduce methane and hydrogen sulfide emissions from agricultural operations.

“Pennsylvania is losing out to surrounding states like New York because of our state’s failure to be competitive in tax and regulatory policies, and our family farmers are suffering as a result,” said Lawrence. “My proposal would unleash construction of new dairy processing facilities across the Commonwealth and tackle significant quality-of-life issues surrounding hydrogen sulfide emissions and other environmental priorities.  I am stunned that members of the state House rejected this commonsense approach on a party-line vote.”   

To watch Lawrence’s remarks during debate in the House, click here.

Stender’s amendment would have likewise made key changes to the legislation to better serve the dairy industry. It proposed lowering the capital investment threshold from $50 million to $25 million and reducing the required number of new jobs in the bill from 100 to 50. These changes aimed to make the tax credit more accessible to our in-state processors, not just new large-scale operations.

“The governor said he supports farmers, but when the dairy industry asked for targeted, commonsense reforms, his administration said no,” said Stender. “My amendment would have made the tax credit work for expanding existing dairy processing instead of just massive corporate projects. House Democrats were ready to support it, but the governor’s team shut it down. You can’t claim to stand with agriculture while blocking the very changes Pennsylvania farmers are asking for.”

A technical amendment by Stender, requiring milk entering the processing plant to be measured by weight instead of gallons, received unanimous approval in the House. It was the only Republican amendment to House Bill 500 to be approved by the Democrat majority.

To watch Stender’s remarks on his amendments, click here.