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USDA Ruling Places
Caps On Producer-Handlers in Two Regions
The U.S. Department of Agriculture has agreed
with NMPF's contention that large producer-owned bottling
operations can disrupt milk marketing conditions, and has
issued a recommended decision to limit the exemption from
Federal Order pricing regulations that such producer-handlers
currently enjoy. NMPF had testified at the USDA hearings on
this issue two years ago, out of concern that the growth of
unregulated producer-handlers is placing other dairy producers
at an economic and competitive disadvantage.
The USDA's decision establishes a three million pound per
month cap on the milk output that remains outside the pool
in the Pacific Northwest and Arizona-Las Vegas Federal Order
areas. Any producer-handlers which exceed that monthly cap
will be regulated like other bottlers, and be expected to
pay into the pools in those two orders.
The recommended decision was published in the April 13th Federal
Register. Interested persons have 60 days to file comments
in response to the recommended decision.
National
Hearing in June to Review Class I Pricing Issues
The U.S. Department of Agriculture has announced a hearing on
defining Class I products in all federal orders, beginning at
8:00 am on June 20 at the Sheraton Station Square Hotel in Pittsburgh,
Pennsylvania.
Currently, Class I products include milk-based beverages with
nonfat milk solids of at least 6½ % nonfat milk solids
and less than 9 % butterfat (regular milk has just under 9 %
nonfat milk solids). There are exemptions for shelf-stable infant
feeding and meal replacement formulas, and for whey sold as
a beverage.
The meeting room is booked for the entire week, as the notice
includes 12 separate proposals.
Among others, the hearing will consider proposals to drop the
nonfat solids standard from 6½ % to zero; to eliminate
the whey exemption; to more clearly define or expand the current
exemption for meal replacements; to exempt alcoholic beverages,
pet drinks, yogurt-based drinks, and high protein drinks; and
to set criteria for moving Class II beverages to Class I on
a case-by-case basis.
NMPF will testify in support of its own proposal to change the
6½ % nonfat milk solids standard to a milk-equivalent
2¼ % milk protein standard, including whey protein. This
is aimed at strengthening the current standards by focusing
on the most valuable component of skim milk, in order to deal
with evolving processing technology and a new array of products.
New Food Guide
Pyramid Unveiled by USDA
 A
slightly revised pyramid was unveiled last week by the U.S.
Department of Agriculture in order to help Americans, whose
collective weight continues to concern the nation's doctors
and dietitians, make better food choices.
The USDA decided to keep the well recognized
food guide pyramid, first released12 years ago. The new pyramid
encourages healthy eating and exercise and urges consumers
to use an Internet site to design a personalized plan for
eating healthy. The triangle is divided by six-different colored
bands representing different food groups, and has a set of
steps beside it with a stick figure walking up them to emphasize
exercise.
Food proportions are shown by the different
widths of the bands with grains (orange) the largest, followed
by dairy (blue), vegetables (green), fruits (red), meat and
beans (purple), and fats, sugars and salt (yellow).
The actual portions of each food group a consumer
should eat on a daily basis to maintain their weight depends
on age, gender and amount of daily exercise, the USDA said.
A consumer must go to a USDA Web site -- www.mypyramid.gov
-- and type in information to obtain the recommended servings.
"Every single American can find a pyramid
that is right for them," said Agriculture Secretary Mike
Johanns, who announced the new program.
Estate Tax Repeal
Passes US House; Senate Fate Uncertain
The U.S. House of Representatives voted earlier this month
272 to 162 to eliminate the federal estate tax after 2010,
even as Senate Republicans have already begun seeking a compromise
with Democrats opposed to an outright repeal.
The measure passed after the House rejected a Democratic alternative
that would have exempted the first $3 million of an estate's
assets from the tax (the first $6 million for a family estate),
while capping the top rate at 47%. The Democratic alternative
failed on a nearly party-line 238-194 vote.
Some say the estate tax unfairly burdens small businesses
and family farms, discourages savings, and taxes money already
taxed during a person's working life.
Identical legislation passed the House 264-163
in June 2003, but the measure stalled in the Senate, where
Republicans were unable to muster the 60 votes needed to overcome
a threatened filibuster.
Bush
Administration Backs Off Proposal to Cap Farm Payments
After two months of fierce resistance from farmers and Congress,
the Bush administration has dropped an effort to cap government
payments to farmers.
President Bush's budget proposal, released in February, contained
a proposal to slash billions of dollars from payments to large
farm operations, dropping the maximum farmers are allowed to
collect from $360,000 to $250,000 and closing loopholes allowing
some growers to obtain millions of dollars. He also proposed
to cut all farm payments by 5 percent.
Last Tuesday, Agriculture Secretary Mike Johanns told key senators
that while spending must be reduced to hold down the federal
deficit, he is willing to look elsewhere in agriculture programs
for cuts.
"We recognize Congress may have other proposals to achieve
these savings, and we are willing to work with the Congress
on other cost-saving measures,'' Johanns testified.
AgJobs
Bill Fails to Pass Senate
The Agricultural Job Opportunity, Benefits, and Security Act
of 2005 (AgJobs bill) was almost passed as an amendment to a
Senate Appropriations bill this last week, but failed to get
a 60 vote majority.
"A majority of my colleagues sent a strong message today
that they support AgJobs and are ready to address immigration
reform," said Sen. Larry Craig (R-ID), who is the lead
sponsor of the legislation.
The AgJobs legislation offers temporary residency to illegal
farmworkers who can demonstrate that they have worked in agriculture
for at least 100 days in the 18 months before Dec. 31, 2004,
and meet certain other criteria.
Workers granted temporary residency would have to work an additional
360 days in agriculture over the next three to six years to
be eligible for permanent residency, which then could lead to
citizenship. The farmworkers' spouses and children would also
be eligible for permanent residency.
The proposal's supporters said they were encouraged that Craig
had forced the Senate to hold its first substantial debate on
immigration reform in a decade. Hundreds of agricultural organizations
are supporting this bill, and it had over 60 Senate cosponsors
last Session. A vote on the bill could occur later this summer.
Farm
Leaders Rally For CAFTA With Secretary
 Agricultural
leaders, including NMPF Chairman Charles Beckendorf, recently
attended a rally in support of CAFTA. Hosted by Secretary Mike
Johanns, Beckendorf was one of several prominent ag leaders
who spoke in support of passage of the CAFTA agreement, expected
to be voted on this summer by Congress. Passage of the trade
agreement depends heavily on ag groups.
Dairy
Relief Collects Over $140,000 for Asian Disaster Fund
 The
Dairy Relief Asian Disaster fund collected $140,255 between
January and April to help victims of last December's south
Asian earthquake and tsunami. Donations came from dairy farmers,
farms businesses, dairy cooperatives, 4-H clubs, college organizations,
high schools and middle schools.
"The outpouring of support for this fund
was amazing. We once again thank those individuals and organizations
that have donated to this fund. I am continually amazed at
the amount of support this industry provides in times of need,"
said Carl Baumann, Executive director of Dairy Relief.
The large number of donations came as a result
of tremendous support from cooperatives and their local communities.
Dairy Relief's message was heard on radio shows, paired with
farmer's milk checks and read about in cooperative publications
all over the country.
The donation will be made May 1st to the American
Red Cross International Response Fund. One hundred percent
of every donation made for this disaster goes to tsunami relief
and recovery efforts. The donation will provide tsunami survivors
with nutritious food, basic supplies such as tents and hygiene
items, basic healthcare and other supports.
American Red Cross disaster relief experts
are helping thousands of tsunami victims, assisting with rehabilitating
water and sanitation systems, conducting family linking and
reunification, coordinating relief supply distributions and
providing psychosocial training for local disaster relief
workers, family counselors and school teachers.
Associate Member
Focus: CO-BANK
Co-Bank - is owned by approximately 2400 stockholders - consisting
of U.S. agribusinesses; rural communications, energy and water
systems. With approximately $31 billion in assets, Co-Bank has
been a leader in delivering financial solutions to some of America's
most successful businesses since 1916. CoBank specializes in
agribusiness, communications, energy and water systems; and
agricultural export financing.
CoBank offers a broad range of flexible loan programs, specially
tailored financial services and leasing services to agribusinesses,
rural communications and energy systems and Farm Credit associations.
The company representative is Gary Sloan. The phone number is
763-765-2700. To learn more about Co-Bank visit www.cobank.com.
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