USDA Delays New Price Formulas

As a result of a lawsuit, USDA will delay new formula calculations of the February Class II skim milk and Class I skim milk and butterfat prices. The lawsuit was filed in opposition to new make allowances that USDA issued on November 22 and was approved by producers in December.

The lawsuit was filed on January 12 in a Federal district court in Toledo, Ohio, on behalf of five dairy farmer cooperatives and two dairy producers. The suit claims that USDA did not follow the law or its own rules in updating the manufacturing cost allowances contained in the Federal milk price formulas. A hearing on a temporary restraining order was scheduled for January 18, but the plaintiffs and USDA agreed to delay implementation by one month in order to allow both sides more time to prepare for a rescheduled hearing on February 15.

Although the February advanced Class prices will be based on the old make allowances, USDA's January 19 price announcement says that they intend to apply the new formulas to the February Class III and Class IV prices, unless the court prevents them from doing so.

If you have any questions, please contact Roger Cryan at NMPF.

Congress Introduces Ag Jobs Immigration Legislation

Although it's early in 110th Congress, efforts are already underway to pass immigration reform legislation focusing on agricultural guest workers. Better known as the AgJOBS legislation, the measure would reform the current temporary worker program and regulations of undocumented workers in order to provide agriculture with the work force it needs to operate efficiently.

In the House, the bill is designated as H.R. 371, and was introduced by Representatives Chris Cannon (UT), Adam Putnam (FL), Howard Berman (CA), George Radanovich (CA), Tom Reynolds (NY), Devin Nunes (CA).

The Senate AgJOBS bill is designated as S. 340. The lead co-sponsors of the Senate bill are Dianne Feinstein (CA) and Larry Craig (ID), along with key Judiciary committee leaders Sens. Patrick Leahy (VT) and Arlen Specter (PA).

The AgJOBS provision was included in the immigration reform bill that passed the Senate last year, but it was not part of the House immigration bill that was passed, but not conferenced together with the Senate version.

House Agriculture Committee Members Select Subcommittee Assignments

The Democratic leadership of the House Agriculture Committee has selected the Subcommittee Chairmen and Members who will serve on each Subcommittee during the 110th Congress.

Following the meeting, Agriculture Committee Chairman Collin Peterson (MN) announced that he has appointed Rep. Tim Holden (PA) to serve at the Vice Chairman of the Committee.

The Chair of the Subcommittee on Livestock, Dairy, and Poultry is Rep. Leonard Boswell of Iowa. Other Democratic committee members on the Dairy Subcommittee include: Kirsten Gillibrand (NY), Steve Kagen (WI), Tim Holden (PA), Joe Baca (CA), Dennis Cardoza (CA), Nick Lampson (TX), Joe Donnelly (IN), Jim Costa (CA), and Tim Mahoney (FL).

The ranking Republican on the Dairy Subcommittee is Rep. Robin Hayes of South Carolina. Other Republican members of the subcommittee include: Mike Rogers (AL), Steve King (IA), Virginia Foxx (NC), Mike Conaway (TX), Jean Schmidt (OH), Adrian Smith (NE), and Tim Walberg (MN).

CWT Program Busy in 2006

Cooperatives Working Together (CWT) can mark 2006 as another year of significant accomplishments since its beginning in the summer of 2003.

Following the completion of its third herd retirement program a year ago, CWT began in earnest the export facilitation of over 40 million pounds of dairy products. On a milk equivalent basis, CWT-assisted exports removed over 700 million pounds of milk out of the domestic marketplace, through butter, cheese, whole milk powder, and anhydrous milkfat exports to dozens of different countries.

Last year, the CWT Committee also issued a tremendous vote of confidence in the program, by deciding to ask for an increase in producers' investment level in the program to 10¢, in order to better achieve CWT's goals of improving and stabilizing milk prices.

Meanwhile, an independent analysis of the impact of CWT on dairy farmer income found that the program, in its first three years, generated an additional $2 billion in dairy farmer revenue. Dr. Scott Brown, a University of Missouri agriculture economist, completed an analysis of the effectiveness of CWT's programs in achieving its goals. He concluded that in combination the herd retirements and export assistance programs increased dairy farmer milk prices an average of 40 cents per hundredweight. This, in turn, resulted in $1.96 billion more income going into dairy farmers pockets from 2004 through 2006.

NMPF Dairy Leadership Scholarship Announcement

The National Milk Producers Federation is now accepting applications for the 2007 National Dairy Leadership Scholarships. Each year, NMPF awards four to five scholarships to outstanding graduate level and Ph.D. students who are pursing research in the areas of animal health, dairy product development, agriculture economics, environmental science and dairy food science of direct benefit to milk marketing cooperatives and the dairy producers.

The top scholarship will be awarded the Hintz Memorial Scholarship, in honor of the late Cass-Clay Creamery Board Chairman who was instrumental in setting up the NMPF Scholarship Program.

Applications are due April 20, 2007. For an application or more information, visit the NMPF website or call the NMPF office at (703) 243-6111.

USDA Seeks Nominating Organizations for the Beef Board

The U.S. Department of Agriculture is accepting applications for new certification of organizations to nominate members of the Cattlemen's Beef Promotion and Research Board. This Board is funded by a $1-per-head assessment on cattle sales. Producer organizations, including dairy farmer cooperatives, may be eligible to offer nominations to the Board if they meet the following criteria:

(1) Total paid membership must be comprised of at least a majority of cattle producers or represent at least a majority of cattle producers in a State or unit,
(2) Membership must represent a substantial number of producers who produce a substantial number of cattle in such State or unit,
(3) There must be a history of stability and permanency, and
(4) There must be a primary or overriding purpose of promoting the economic welfare of cattle producers.

Previously certified organizations do not need to reapply. Applications are due February 6. For more information, see the notice in the January 18 Federal Register.

Associate Member Focus: Virginia Tech

Founded in 1872 as a land-grant university named Virginia Agricultural and Mechanical College. Virginia Tech is now a comprehensive, innovative research university with the largest full-time student population in Virginia.

Virginia Tech's Dairy Science department helps students recognize the significant contributions made by graduate students to departmental research, teaching and extension programs. Through the Virginia Tech Dairy Science department, students participate in dairy shows, have student-managed cattle sales, and handle a herd of 215 milking Holsteins & Jerseys.

Virginia Tech's representative is Dr. Mike Akers, Alphin Professor & Department Head, and can be reached at: 540- 231-6331. You can learn more about Virginia Tech's Dairy Science Department by visiting heir website: www.dasc.vt.edu.