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NMPF Achieves
Legislative Accomplishments in 2006 Congress
Now that Congress is done for the year, and
a new leadership team will return to town in January, NMPF
can tally up its achievements in the past 12 months.
The most prominent dairy issue was passage
and enactment of the Milk Regulatory Equity Act, which regulates
large producer-handler milk bottlers. This had been a legislative
priority of NMPF for the last two Congressional sessions.
Under MREA, producers larger than 3 million pounds of milk
monthly will have to pool their Class I sales. The legislation
also regulated milk sales from a Federal Order area into a
state order.
NMPF also pursued immigration reform, as part
of a large coalition, seeking a balanced, comprehensive approach
to the labor shortage problems in agriculture. While a compromise
approach was not finalized by Congress, a provision including
agricultural guest workers was included in the bill that passed
the Senate this past summer. NMPF will continue its efforts
in the House and Senate in the upcoming 110th Congress, where
hopefully the atmosphere for immigration reform will be improved.
Another area of major activity was the effort
by livestock groups to have Congress clarify its intent that
animal manure was not meant to be regulated by the CERCLA
and EPCRA superfund laws. NMPF and other farm groups garnered
widespread support in Congress for bills to clarify those
laws, but that effort will have to start again in January.
NMPF also worked to secure passage of favorable
trade agreements with positive benefits for dairy, such as
the Peru FTA and the Vietnam normal trade relations legislation.
The Vietnam PNTR was included in legislation just prior to
adjournment in mid-December [see below].
2006 also saw the creation of a first-ever
Congressional Dairy Farmer Caucus. This organization was formed
by dairy friendly Senators and Representatives to advance
the issues of dairy farmers. It has members from all areas
of the country.
Vietnam Trade Completed in Lame
Duck Session
Just before leaving town for the end of the year, Congress
approved a trade package that included Permanent Normal Trade
Relations with Vietnam. The bill will now go to the President
for his signature. Vietnam will join the World Trade Organization
at the end of 2006. Passage of Vietnam PNTR means that the
U.S. will be able to take advantage of the improved trading
terms that Vietnam negotiated with WTO members as part of
the concessions it made to join the organization.
Those new trading terms include lower tariffs
on dairy products entering Vietnam, a dairy-importing country.
Tariffs on Vietnamese imports of whey products will be reduced
from initial starting points ranging from 20 to 30 percent,
down to a new level of 10 percent over a period of five years.
Tariffs on cheeses will be reduced from a starting point of
20 percent down to 10 percent immediately. Tariffs on ice
cream will be reduced from 50 percent down to 20 percent over
a period of five years.
NMPF
Leads Effort to Raise Federal Order Milk Prices
NMPF is leading the effort by farmers and cooperatives to
update and simplify the Class I and II price formulas. At
a Federal order hearing last week in Pittsburgh, producers
and staff from NMPF member cooperatives, as well as NMPF staff,
offered testimony, data, and analysis in support of the proposal.
USDA recently announced reductions in the
Class III and IV prices to account for manufacturing costs.
When it became clear this fall that these adjustments would
also reduce Class I and II prices, NMPF made the proposal
heard last week. NMPF's proposal would raise the Class I price
by 77¢ and Class II by 21¢, by updating the producer
and cooperative costs that USDA put into their Class I and
II price formulas in 1999. These increases would increase
blend prices in all Federal order markets.
The NMPF proposal was opposed by many bottlers
and Class II manufacturers, who would have to pay the increased
costs that pooled farmers and their cooperatives face to supply
them with their milk. There was also opposition by some dairy
farmer cooperatives concerned about an uneven regional distribution
of benefits, even though all markets would see some positive
impacts.
Looking at the accelerated schedule on which
USDA has been conducting recent hearings, a decision from
this hearing could come as early as March or April. Please
contact Roger Cryan
if you have any questions.
EPA
Issues Final Rule on Oil Spill Prevention, Control, and Countermeasures
On December 14, 2006 the Environmental Protection
Agency (EPA) announced the final rule for the Oil Spill Prevention,
Control and Countermeasure (SPCC) regulations. The SPCC regulations
require covered facilities that store 10,000 gallons or more
of oil to prevent, prepare for and respond to oil discharges.
This final rule will provide alternative compliance options
for certain regulated facilities.
This final rule provides streamlined options for specifically
qualified facilities and exemptions from the SPCC regulations
for certain vehicle fuel tanks and other bulk oil storage
containers. EPA is also removing requirements for animal fats
and vegetable oils that pertain to onshore and offshore oil
production facilities, oil drilling and workover facilities.
The SPCC regulations have been in place sine
1974, however many facilities and farm operations have been
unaware that these regulations affect them. To remedy this,
EPA is extending the compliance dates for preparing or amending,
and implementing SPCC Plans for farms until the Agency promulgates
a rule specifically addressing how farms should be regulated
under the SPCC rule. For purposes of the SPCC rule, EPA defines
a farm as "a facility on a tract of land devoted to the
production of crops or raising animals, including fish, which
produced and sold, or normally would have produced or sold,
$1,000 or more of agricultural products during a year."
The final rule will soon be published in the
Federal Register. NMPF will work with EPA in the development
of agriculture specific regulations for SPCC. For more information
and a Fact Sheet specific to farm operations, visit the EPA
SPCC website.
2007
Dairy Producer Highlights Now Available
The 2007 edition of the Dairy Producer Highlights
brings together dairy industry charts and tables, illustrating
trends occurring in the industry over numerous decades. The
National Milk Producers Federation has been producing this
publication for over 50 years, and the latest edition is now
available.
The detailed compilation of facts ranges from historic all-milk
price, to the per capita consumption of dairy products. The
NMPF report also contains a geographic assessment of where
each state ranks in the industry on a variety of measures.
The 2007 Dairy Producer Highlights are available
to NMPF members for $5 per copy, or $4 for orders of more
than 10 copies. Non members are charged $10 per copy, and
$5 for orders over 10 copies. Email the NMPF offices at highlights@nmpf.org
or visit the NMPF webpage for an order form.
New
Associate Member - Pfizer Animal Health
NMPF is pleased to welcome our newest associate
member, Pfizer Animal Health. Pfizer has discovered and developed
some of the leading vaccines and prescription medicines that
can make animals live longer and healthier lives.
For farm animals such as cattle and swine, Pfizer Animal Health
offers a broad line of products to improve their health and
quality of life. Pfizer also provides outstanding technical
support and service throughout the United States to help beef,
dairy and pork producers - and their veterinarians - to improve
the safety, quality and productivity of livestock by taking
full advantage of Pfizer Animal Health products.
Pfizer also is a leader in animal health research.
In the years ahead, Pfizer Animal Health is confident of delivering
innovative new vaccines and medicines that will address significant
unmet medical needs of both companion and farm animals.
Pfizer Animal Health's representative will
be Benjamin Church, who can be reached at 212-733-6628, or
by email Benjamin.church@pfizer.com.
To learn more about Pfizer Animal Health, please visit their
website at www.pfizerah.com.
Associate Member Focus:
M.E. Franks
Founded in 1948, M.E. Franks Inc. is a leading global supplier
of dairy ingredients. They work closely with their customers
to meet their supply chain and quality assurance requirements
by sourcing ingredients through their international network
of dairy suppliers. They also support their customers and
suppliers by providing them market analysis and direction.
M.E. Franks Inc. was a pioneer in the Dairy
Export Incentive Program during the 1980 and 90's. In recent
years, their partners have benefited from participation in
U.S. Food Aid programs and the development of functional dairy
blends.
For more information contact Donald Street
at 610-989-9688 or visit their website: www.mefranks.com
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