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USDA to Hold
Additional Hearing This Week on Make Allowances
The U.S. Department of Agriculture will hold
another hearing to examine whether manufacturing allowances
for cheese, whey, butter and powder need to be adjusted and
if so, by how much.
The hearing will be held Thursday, Sept. 14,
in Strongsville, OH. The exclusive purpose of this week's
hearing is to take into evidence data on plant manufacturing
costs compiled by Cornell University, although the USDA announced
that other "pertinent data" may also be accepted.
At the same time, the USDA is also currently receiving additional
proposals regarding all aspects of the Class III and Class
IV price formulas. These proposals are due on or before Sept.
30. USDA will hold an information session on these proposals
after they have been received and analyzed.
NMPF's Economic Policy Committee will review
the latest Cornell data and discuss the implications of the
hearing during a call later today.
NMPF's current position remains that the USDA
can and should issue an interim decision that adjusts the
make allowances upwards, while holding Class I and II prices
harmless (i.e., continuing to price them off the current Class
III and IV formulas until a final decision is rendered).
NMPF Again Urges USDA to Use DEIP
Program
After Agriculture Secretary Mike Johanns told an audience
of dairy farmers last week in Washington that he was not aware
of the industry's interest in reactivating the dormant Dairy
Export Incentive Program, NMPF sent another letter Friday
to the USDA urging the agency to utilize the program.
In its letter, NMPF reminded the Secretary
that while competitors in Europe have not refrained from using
export subsidies, the U.S. has essentially ceased operation
of the DEIP.
"Unfortunately, the way in which USDA
has chosen to administer the program in recent years has undermined
its potential effectiveness," NMPF wrote. "Our competitors
continue to use export refunds as needed when world prices
fall below domestic levels in order to achieve the important
business goal of maintaining a continuous presence in key
foreign markets. This is the approach that USDA should be
taking with DEIP," NMPF said.
Full use of the DEIP was discussed with key
USDA staff last March, and also back in the spring of 2005.
Although the current DEIP marketing year began July 1, 2006,
USDA has not yet even made an announcement about the program,
let alone moved to accept bids for export, the letter said,
asserting that "it is particularly important for USDA
to seriously reconsider how and when it administers DEIP in
order to support a more constant U.S. presence in global dairy
markets."
No
Resolution of Immigration Issue in Sight
Congressional leaders appear to have given up any attempt
at bridging differences between the starkly contrasting approaches
that the House and Senate have attempted at immigration reform.
The House of Representatives held a series
of field hearings throughout the country this past summer
to focus on the issue of immigration reform and to examine
certain provisions in the vastly different House and Senate
bills passed on this topic. Now that the August Congressional
recess is over, and Congress has returned to work, champions
of the competing approaches to immigration reform are attempting
to move the issue forward.
However, several House and Senate leaders
are acknowledging the difficulty of passing a final immigration
reform bill before Congress adjourns again at the end of September.
Senate Majority Leader Bill Frist said last
week that "It would be next to impossible to pass a comprehensive
bill that includes dealing with the diversity of 12 million
people here in the next three weeks,'' the Tennessee Republican
told reporters.
Meanwhile, leaders in the House last week
emphasized their desire to pass border security legislation
through Congress before the November 7 congressional elections,
without the guest worker provisions that are the key to the
Senate version.
"Before you have a guest worker program
or any other program, you need to heal the wound or stop the
bleeding," House Speaker Dennis Hastert said last week.
"We need to solve the first problems first."
Many members of Congress that support comprehensive
immigration reform, including a guest worker program and a
way to address those currently here illegally, remain ardently
opposed to tackling border security issues separately from
a broader package. Several groups of dairy producers will
be visiting Washington throughout September, delivering the
message that what is needed is comprehensive immigration reform,
particularly a version that contains the favorable AgJOBS
provisions, and does not unfairly penalize employers as part
of its enforcement mechanisms. Letters and phone calls delivering
this same message will also be key in trying to avert passage
of an enforcement-only immigration reform bill this fall.
NMPF
Submits Comments on EPA CAFO Rule
NMPF recently submitted comments on the latest effort by EPA
proposal affecting large-scale livestock operations. Quite
a few of the proposed changes will affect dairy operations
that fall under the CAFO category. The rule is formally titled
the Revised National Pollutant Discharge Elimination System
(NPDES) Permit Regulation and Effluent Limitation Guidelines
for Concentrated Animal Feeding Operations (2003 CAFO rule).
In general, NMPF is in support of EPA's proposed
changes as they rightfully clarified portions of the Clean
Water Act. A major change will affect who and who will not
need a permit. As a result of the Waterkeeper Decision court
decision, EPA vacated the "duty to apply" requirement
and revised the rule to state that only CAFOs that discharge
or propose to discharge will need to obtain an NPDES permit.
NMPF believes the "duty to apply" requirement was
rightly ruled invalid as the Clean Water Act subjects only
actual discharges to permitting requirements.
EPA also proposed to require that the CAFO's
Nutrient Management Plan (NMP) must be incorporated in the
permit and reviewed by the permit authority as well as be
available for public review. EPA was mandated to include this
change as part of the Waterkeeper Decision. NMPF has concerns
about the public review process, and recommended that EPA
ensure an effective review process so that producers may obtain
their permits in a timely manner.
Another area of concern for NMPF is the issue
of deadlines for obtaining a permit. Currently, the deadline
for obtaining an NPDES permit and developing and implementing
an NMP is July 21, 2007. Because the proposed rule will likely
not be finalized for several months, producers will not have
adequate time to address the new changes by the current deadline.
NMPF strongly encouraged EPA to extend the current deadline
so that producers have ample time to comply with the new regulations.
In the proposed rule, EPA asked for comments
on developing approaches to deal with both water and air quality
issues. NMPF recommended that EPA examine the potential for
a coordinated Clean Water Act and Clean Air Act regulatory
proposal for CAFOs. NMPF believes that such an approach would
substantially reduce the costs of compliance for dairy producers
and improve overall environmental quality.
It is anticipated that the final CAFO rule
will be published sometime next spring. For a copy of NMPF's
comments, visit the NMPF website.
Prairie
Farms Dairy, Inc. Appoints New Chief Executive
The Board of Directors of Prairie Farms Dairy, Inc. has appointed
Edward L. Mullins as Executive Vice President and Chief Executive
Officer. Mr. Mullins' appointment follows Roger D. Capps,
who served as CEO of the dairy cooperative from October 2000
until his death on July 15, 2006.
Mr. Mullins becomes only the fourth Chief
Executive in the sixty eight year history of this Midwest
dairy food processor and distributor. Ed joined Prairie Farms
Dairy in 1980, working in retail dairy sales. Throughout his
twenty six years with the company, Ed has worked alongside
former CEO, the late Leonard J. Southwell, as well as Roger
Capps in various key management capacities. Since September
2003, Ed had served as Senior Vice President, reporting to
Mr. Capps.
In accepting the assignment, Mr. Mullins stated,
"I am honored to have the confidence and support of the
Board of Directors in appointing me as Chief Executive Officer."
Mullins added, "I am fortunate to have worked with two
icons in the dairy industry such as Roger Capps and Leonard
Southwell. My job will be to build upon their great legacy
in a way that would make them proud everyday."
Headquartered in Carlinville, Illinois, Prairie
Farms Dairy, Inc. is a dairy farmer owned cooperative company.
Founded in 1938, Prairie Farms manufactures and distributes
a complete line of fresh dairy and ice cream products from
thirty-two operating plants throughout Mid-America. Prairie
Farms Dairy is the managing partner with joint venture companies,
Hiland Dairy in Springfield, MO; and Roberts Dairy in Omaha,
NE. Combined operations serve 18 states with 2005 net sales
of approximately 2.2 billion dollars.
Jim
Tillison To Join NMPF Staff 
NMPF is hiring Jim Tillison, the Executive Vice President
and CEO of the Alliance of Western Milk Producers, effective
October 1st, NMPF announced Wednesday.
Tillison will serve as Senior Vice President
of Special Projects for NMPF, and will be relocating to the
Washington, DC, area, from California.
"We are pleased that Jim will bring his
extensive experience and knowledge of the dairy industry,
in particular his familiarity with the Upper Midwest and Western
regions, to NMPF's members," said Jerry Kozak, President
and CEO of NMPF. "Jim's background will be valuable as
he works on a diverse array of assignments," Kozak said,
ranging from Cooperatives Working Together, to NMPF's Environmental
Task Force, to economic policy issues such as the next Farm
Bill.
Tillison has worked for the Alliance of Western
Milk Producers, a trade group of California dairy cooperatives,
since its formation in 1991. Prior to that, he worked for
the Wisconsin Cheese Makers Association in Wisconsin, where
he was born and raised.
Associate Member Focus:
Colorado Livestock Association
The Colorado Livestock Association, CLA, was formed in 1998
to represent, inform and advance Colorado's livestock industry.
CLA provides information and educational opportunities for
members to help them improve their bottom line by including
program that improves employee safety, beef quality assurance,
proper animal handling and issues related to hiring foreign
workers.
To learn more about CLA, ontact Bill Hammerich
at 970-378-0500 or visit their website: www.coloradolivestock.org
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