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NMPF Pursues
Energy Cost Indexing During USDA Make Allowance Hearing
The U.S. Department of Agriculture held a
hearing Sept. 14 to examine new data concerning dairy plant
manufacturing costs, as the USDA decides whether and how to
adjust make allowances for cheese, whey, butter, and powder
products under the Federal Milk Marketing Order system.
USDA limited its review at the Cleveland meeting
to new data, prepared by Cornell University, on manufacturing
costs. NMPF used the hearing as an opportunity to reiterate
its support for a proposal to adjust the make allowances each
month either up or down as energy prices rise and fall.
Since USDA has determined that it will not
consider NMPF's proposal to hold Class I and Class II harmless
from make allowance changes to Class III and Class IV as a
result of this hearing (and the earlier hearing held in February
2006), NMPF is preparing a petition for an emergency public
hearing to establish parallel Class I and Class II pricing
formulas.
Young Cooperators Make First Fly-In
A Success
 NMPF
held the first ever Young Cooperator Fly-in last week in Washington
D.C. YC's who attended previous Legislative and Policy forums
were invited to do another round of Capitol Hill visits with
their elected officials. NMPF tried to reach as many state
delegations as possible, to once again highlight the importance
of immigration reform, CERCLA/EPCRA clarification, the Dairy
Farmer Caucus and the upcoming Farm Bill.
NMPF has seen great success each time the
YC's visit their federal elected officials. As a result, the
NMPF Board agreed to fund this additional fly-in to both take
advantage of the YC's advocacy skills and increase Congressional
exposure for these important issues. NMPF looks forward to
the continuation of this experience for future YC's who participate
in the preliminary planning and training sessions held each
June.
Kevin Satterwhite (above) with his Representative
John Spratt. Kevin is a member of Maryland & Virginia
Milk Producers Cooperative Association from Newberry, South
Carolina.
USDA
Extends Emergency Grazing on CRP Acres in 30 States
Agriculture Secretary Mike Johanns has extended the window
for emergency livestock grazing on Conservation Reserve Program
(CRP) acres for farmers and ranchers who are impacted by drought
in 30 states. The traditional deadline for emergency grazing
on CRP acres is September 30.
"Extremely dry weather conditions have
created real hardships for farmers and ranchers in many parts
of the country this year," said Johanns. "This emergency
relief measure will provide feed and forage to producers who
have lost hay stocks and grazing lands because of drought."
The 30 eligible states are Alabama, Arizona,
Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Iowa,
Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina,
North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee,
Texas, Utah, Wisconsin and Wyoming.
State FSA committees and USDA's Natural Resources
Conservation Service (NRCS) state technical committees must
agree on the need for the emergency grazing extensions before
they are finalized. Once approved, producers in the 30 states
may graze on CRP land until the following dates:
October 20, 2006 - Idaho, Iowa, Michigan,
Minnesota, Montana, North Dakota, South Dakota and Wisconsin;
November 10, 2006 - Colorado, Illinois, Kansas, Kentucky,
Nebraska, Missouri, Nevada, Utah and Wyoming; and November
30, 2006 - Alabama, Arizona, Arkansas, Florida, Georgia, Louisiana,
Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina,
Tennessee and Texas. Emergency haying of CRP acreage in these
states ends Sept. 30, 2006.
In mid-July, USDA announced the expansion
of eligible CRP acreage for emergency grazing and haying in
Alabama, Colorado, Kansas, Nebraska, New Mexico, North Dakota,
Oklahoma, South Dakota, Texas and Wyoming. The expanded area
radiates 150 miles out from any county approved for emergency
haying and grazing in any above-mentioned state.
Additionally, USDA announced that CRP rental
payments will be reduced by only 10 percent instead of the
standard 25 percent on CRP lands that are grazed in 2006.
National
Animal Health Monitoring System to Study Dairy Industry in
2007
The USDA's National Animal Health Monitoring System (NAHMS)
is launching its fourth national study of the U.S. dairy industry
next year. The NAHMS Dairy 2007 study will address priority
issues facing the industry.
Randomly selected dairy producers will be
contacted by the USDA's National Agricultural Statistics Service
in January to conduct the first phase of the study. Data will
be collected from producers in 17 different states. The next
two phases of the study will consist of field visits by veterinary
medical officers and/or animal health technicians from February
through April, and again from May through July.
The three previous studies were conducted
in 1991, 1996 and 2002.
Group
Forms to Study Dairy Farm Impact On Health, Environment
Former U.S. government officials, environmentalists and industry
leaders have launched a two-year study into health and environmental
impacts of large-scale animal farms.
The National Commission on Industrial Farm
Animal Production will probe how large farms -- where the
Commission said the bulk of poultry, pork, beef and dairy
that Americans consume is raised -- could increase exposure
to new diseases or serve as sources of pollution.
The Commission will look at how large farms
impact four areas: rural socioeconomics, animal welfare, food
safety, and the environment.
The Commission is chaired by former Kansas
Governor John Carlin, and also includes Dan Glickman, former
secretary of agriculture; Thomas Hayes, president of Cargill
Meat Solutions Corp.; and actress/activist Daryl Hannah.
NMPF has had discussions with the Commission
about the direction of its investigations. The Commission's
next meeting will examine dairy production in California when
it conducts a field hearing there in early November.
The project is funded by a $2.6 million grant
from The Pew Charitable Trusts and managed by the Johns Hopkins
Bloomberg School of Public Health.
Mexico
Reimposes Tariffs on U.S. Dairy Blends
As part of a World Trade Organization (WTO)
case, Mexico was given the authority to impose tariffs on
exports of U.S. dairy preparations to Mexico last year. This
was in response to a U.S. law that the WTO ruled was not compliant
with our WTO obligations.
The law, known as the "Byrd Amendment,"
distributes tariffs collected in anti-dumping cases to U.S.
industry impacted by the unfairly low-priced imports, rather
than sending the extra tariffs to the U.S. Treasury. The WTO
ruled that the Byrd amendment was a violation and therefore
countries whose exports to the U.S. are affected can impose
retaliatory tariffs.
Although the U.S. repealed this law, implementation
of the repeal won't occur until the fall of 2007, so Mexico
and the other countries that brought the WTO case may impose
retaliatory tariffs until the repeal date in Fall 2007.
Mexico imposed a 30% tariff on U.S. exports
of dairy preparations in August 2005, effectively cutting
off trade in this dairy blends product. This tariff remained
in place until August 2006, when the first year of retaliation
expired. To take advantage of its second year of retaliation
ability, in September 2006 Mexico imposed a 110% tariff on
U.S. dairy preparations exported to Mexico. This tariff will
remain in place for a month and a half, concluding on October
31, 2006.
NMPF has been working closely with the U.S.
Dairy Export Council and the U.S. government throughout this
period to urge for a reopening of the market for dairy preparations
in a timely manner. All accounts appear to indicate that the
present tariff will be lifted after October and will not be
renewed thereafter.
Look
for NMPF at World Dairy Expo
For the first time, NMPF will have a booth display at the
World Dairy Expo in Madison, WI. The Expo will be held October
3 - 7.
NMPF will highlight the Dairy GREAT program
and have a drawing for a $100 gift certificate each day. Employees
at the booth will also answer questions about all NMPF and
CWT programs. Look for the NMPF booth in the Arena Level #173.
Annual
Meeting Fast Approaching
The deadline for the NMPF Annual meeting is
fast approaching, and room reservations must be made by this
Friday, September 29. There will be a $75 late fee for any
registrations made after the 29th. The NMPF annual meeting
will once again be held in conjunction with the DMI annual
meeting. This year the meeting will take place at Caesars
Palace in Las Vegas, NV, October 30 - November 2. Visit www.dairyevents.com
to register online or call the NMPF offices for more information.
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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