News for Dairy Co-Ops

Four years of NMPF’s coordinated leadership set a positive tone for 2025, with USDA’s announcement Jan. 16 that all federal orders had accepted its proposal for Federal Milk Marketing Order modernization.

NMPF thanked USDA and the dozens of farmers and cooperative leaders who successfully steered FMMO toward a successful conclusion, with a comprehensive revamp heavily influenced by NMPF priorities and advocacy.

“Dairy farmers and cooperatives have done what they do best – lead their industry for the benefit of all,” said Gregg Doud, president and CEO of NMPF, said in a statement released that day.

“This final plan will provide a firmer footing and fairer milk pricing, which will help the dairy industry thrive for years to come. We appreciate the monumental contributions across government and the dairy industry that made this happen. The industry, and all dairy consumers, owe all of you a debt of gratitude.”

The new FMMO comes after more than 200 NMPF-led meetings to formulate the proposal that contributed heavily to USDA’s final decision, as well as a record-length 49-day federal order hearing and approval from the farmers who are covered under all federal milk marketing orders.

The new federal milk-pricing system, which officially will be published in the Federal Register tomorrow, will mostly take effect June 1 – coincidentally, World Milk Day – and is closely aligned with the principles of NMPF’s member-led recommendations, a process that began nearly four years ago.

Highlights include:

• Returning the base Class I skim milk price formula to the higher-of the advanced Class III or Class IV skim milk prices for the month. In addition, adoption of a Class I extended shelf life (ESL) adjustment for all ESL products equal to the average-of mover plus a 24-month rolling average adjuster with a 12-month lag.
• Updating Class III and IV manufacturing allowances for cheese, butter, nonfat dry milk and dry whey, and the butterfat recovery factor.
• Updating the Class I differential values to reflect the increased cost of servicing the Class I market.
• Updating skim milk composition factors, with implementation delayed six months until Dec. 1.
• Removing 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey.

NMPF has more resources to understand FMMO modernization and the road taken to get there. Farmers and cooperatives will have opportunities to learn more about the new system through webinars and other materials offered in coming weeks.

NMPF will also continue pushing for elements of its proposal that require congressional authorization, including mandatory dairy manufacturing cost reporting to provide accurate, transparent data to inform future milk pricing discussions.

With the new Congress and White House in full swing, NMPF is steadily building congressional support for multiple bipartisan bills that will advance the needs of dairy farmers and the cooperatives, with several of them well-positioned to become law this year.

NMPF celebrated the Jan. 23 reintroduction of the bipartisan, bicameral Whole Milk for Healthy Kids Act, which has additional momentum this year after almost becoming law in 2023. The bill, which would allow schools to serve whole and reduced-fat milk in addition to the currently available low-fat and skim varieties, passed the House of Representatives in December that year on an overwhelming 330-99 vote.

This year’s bill is sponsored by Reps. GT Thompson, R-PA, and Kim Schrier, D-WA, and Sens. Roger Marshall, R-KS, Peter Welch, D-VT, Dave McCormick, R-PA, and John Fetterman, D-PA. NMPF and its members secured 70 bipartisan original cosponsors on the House measure, H.R. 649, and 10 on the Senate measure, S. 222, strongly positioning this critical bill to expand kids’ access to milk varieties that will provide them with essential nutrients.

Beyond whole milk, NMPF is seeking support for one last item on its Federal Milk Marketing Order modernization to-do list: mandatory dairy manufacturing cost surveys every two years.

Last year’s House and Senate farm bill proposals included important language to require USDA to conduct and report the surveys to provide all dairy stakeholders with uniform, transparent data to better inform future milk pricing deliberations.

To build momentum for the provision, Reps. Nick Langworthy, R-NY, Joe Morelle, D-NY, and Derrick Van Orden, R-WI, have introduced this language as the Fair Milk Pricing for Farmers Act (H.R. 295). Companion bipartisan legislation will be introduced shortly in the Senate. NMPF is urging congress to enact this measure as soon as possible so that USDA can begin building out the infrastructure needed to produce these important studies.

Finally, while Republicans will juggle many competing priorities when crafting tax legislation, NMPF and a broad coalition of agricultural and small business organizations is supporting the bicameral Main Street Tax Certainty Act, numbered H.R. 703 in the House and S. 213 in the Senate.

This bill, authored by Representative Lloyd Smucker, R-PA, and Senator Steve Daines, R-MT, would make permanent the Section 199A tax deduction created in the Tax Cuts and Jobs Act of 2017.

Section 199A is a tax deduction to support domestic manufacturing activities. Many NMPF member cooperatives claim this deduction annually and pass the proceeds back to their farmer-owners, who then reinvest in their own operations. The new legislation enjoys support from a broad majority of House and Senate Republicans, putting Section 199A in a positive position heading into tax deliberations.

NMPF will continue to advance these and other dairy priorities at any opportunity.

NMPF filed comments with the Food and Drug Administration Jan. 17 opposing its proposed rule that would require saturated fat, sodium and added sugar to be displayed prominently on the front of packaged foods.

The proposed nutrition label, referred to as the Nutrition Info box, would complement the existing Nutrition Facts label required on most food packages. However, because the front-of-pack label would only list saturated fat, sodium and added sugar, consumers will get an incomplete picture of that food’s nutritional profile. NMPF’s comments assert that FDA should withdraw the proposal because it is unlawful and unable to withstand a First Amendment challenge.

FDA also issued its second guidance document on the labeling of plant-based foods in January. This new document deals with plant-based food alternatives to animal products, including many foods in the dairy category, as well as eggs, seafood, poultry and meat.

The guidance excludes milk, which was covered in a 2023 guidance. The new recommendations suggest manufacturers prominently display more details about the ingredients used in a product, beyond just saying they are “plant-based.” NMPF submitted comments to FDA on Jan. 15 stating that the agency should be enforcing its own standards of identity as written and follow the lawful process of the Administrative Procedures Act.

Meanwhile, President Trump on Jan. 20 issued a memorandum directing all federal agencies to freeze all new or pending federal rules until the new administration has had an opportunity to review them. Similar freezes were issued in prior administrations. The 60-day regulatory freeze will affect the two proposed rules FDA issued in January, as well as FDA’s flawed “Healthy” final rule issued in December. NMPF continues to monitor these and other regulations, preparing for multiple outcomes when the freeze lifts.

NMPF and the U.S. Dairy Export Council (USDEC) shared their U.S. dairy trade priorities with USDA and the Office of the U.S. Trade Representative (USTR) on Jan. 27, following an “America First Trade Policy” executive order issued by President Trump issued on Inauguration Day, Jan 20. Three additional executive actions to impose 10% tariffs on China and 25% tariffs on most products from Mexico and Canada were also issued on Feb. 1, although the U.S. has postponed tariffs on the latter two partners for approximately 30 days.

The Jan. 27 broad trade order directs to USTR and its interagency partners affecting U.S. dairy trade to take a number of actions including:

• Identifying unfair trade practices

• Conducting an expedited review of the U.S.-Mexico-Canada Agreement
• Providing recommendations to revise existing trade agreements to achieve or maintain reciprocal concessions; and
• Pinpointing opportunities for new bilateral or sector-specific market access opportunities.

With an April 1 deadline for the trade reports, the input from NMPF and USDEC comes at an ideal time and emphasizes the importance of resolving dairy trade irritants and targeting key markets for growth. In addition to underlining the importance of exports to the success of American dairy farmers and companies, the joint USDEC and NMPF document details recommendations to improve the industry’s global competitive standing. This includes expanding market access to bridge tariff gaps with EU and New Zealand suppliers and addressing the U.S. trade deficit of more than $2.5 billion with the European Union.

On the tariffs, President Trump announced the measures due to result of unresolved concerns related to illicit drug flows and illegal immigration. Mexico and Canada have both promised retaliatory tariffs should U.S. tariffs move forward. The pause in tariffs on Mexico and Canada means trade with those countries can continue uninterrupted for the coming month.

In a Feb. 2 statement, Krysta Harden, president and CEO of USDEC, encouraged the administration “to draw on the types of tools President Trump wielded so successfully when negotiating USMCA—bringing everyone to the table and working out a solution that minimizes unintended consequences for farmers, rural manufacturers, and consumers.”

NMPF and USDEC also joined more than 400 agricultural organizations in signing onto a Jan. 15 letter to Senate Agriculture Committee Chair John Boozman, R-AR, and Ranking Member Amy Klobuchar, D-MN, to endorse Brooke Rollins for Secretary of Agriculture.

Leading up to her Jan. 23 confirmation hearing, NMPF collaborated with members of the Senate Agriculture Committee to highlight dairy trade challenges. Senators on both sides of the aisle stressed the importance of USDA pursuing a more active trade agenda and vigorously advocating on behalf of U.S. farmers in international negotiations.

Megan and Tim Schrupp, farmer-owners of NexGen Dairy and members of First District Association, were elected by their peers to lead the National Young Cooperators (YC) Program Advisory Council in 2025.

Megan and Tim own and operate NexGen Dairy with Megan’s parents in Eden Valley, Minnesota. The third-generation family farm is home to 1,200 Jersey and Jersey-cross cows producing high-component milk used to make cheddar cheese at First District Association. NexGen Dairy also manages 1,400 acres of crops and has embraced sustainability through on-site solar panels and advanced cow monitoring technologies.

Both Megan and Tim are deeply involved in the dairy industry and their community. Since 2014, they have served on First District Association’s YC board and led initiatives like “Dinner on the Dairy,” connecting farms with their local community. Megan, a dairy veterinarian and graduate of the University of Minnesota, also operates Dairy Performance Service, specializing in dairy medicine and reproduction. Together, the couple are enthusiastic about mentoring youth, leasing dairy cattle to 4-H participants and supporting the future of the dairy industry through leadership and advocacy.

“We are strong advocates for modern family dairy farming and look forward to working with fellow YCs to address challenges, share experiences and strengthen the dairy industry,” the Schrupps said.

Nicole Engelken, an Iowa dairy farmer and Prairie Farms member-owner, was elected vice chair of the program.

The National YC Program has provided training and leadership development opportunities to beginning dairy farmers for 75 years. It aims to provide producers with the education, tools and resources they need to improve their leadership skills, profitability and resilience through year-round virtual and in-person programming.

NMPF manages the program funded by its members with support from stakeholders including Farm Credit, Ever.Ag and Monument Advocacy. Employees and owners of dairy farms that are members of an NMPF member cooperative and under the age of 45, as well as co-op staff, are invited to participate. Click here for more information and sign up here for program updates.

NMPF is now accepting applications for its National Dairy Leadership Scholarship Program for academic year 2025-2026.

NMPF awards scholarships each year to outstanding graduate students who are actively pursuing dairy-related fields of research of immediate interest to NMPF member cooperatives and the U.S. dairy industry at large.

Graduate students pursuing research with direct benefit to milk marketing cooperatives and dairy producers may apply (applicants do not need to be members of NMPF to qualify). Recommended fields of study include but are not limited to Agriculture Communications and Journalism, Animal Health, Animal and/or Human Nutrition, Bovine Genetics, Dairy Products Processing, Dairy Science, Economics, Environmental Science, Food Science, Food Safety, Herd Management, and Marketing and Price Analysis.

Applications must be received no later than Wednesday, April 23. To apply or for more information, visit the NMPF website or email scholarship@nmpf.org.

Following engagement from NMPF and USDEC with the Biden Administration and the then-incoming Trump team, the International Longshoremen’s Association (ILA) and United States Maritime Alliance reached a tentative six-year contract on Jan. 8 for the United States’ East and Gulf Coast ports, avoiding a damaging strike for dairy exporters.

While the agreement is still pending ILA ratification, the deal averted a strike that was authorized to begin on Jan. 15.

The agreement came after NMPF, USDEC, and more than 50 additional leading U.S. agriculture organizations sent letters to President Biden and then President-elect Trump on Dec. 19, calling for the federal government to help ensure a lasting resolution to the labor negotiations that had reached a stalemate.

In the letters, NMPF and the co-signers detailed the extensive damage that resulted from the previous strike, which lasted from Oct. 1-3. Initially, shipments were paused to prevent a backlog and then proceeded at a below average pace once the ILA agreed to extend their existing contract until Jan. 15, 2025. An estimated $13.5 million in U.S. dairy exports were affected, with members reporting cancelled sales and costly reroutes due to the disruptions.

NMPF engaged with USDA leading up to the contract deadline in January, sharing dairy exporter needs and urging the administration to avoid any potential port labor strikes.

NMPF has started the new year with two new staff members playing crucial roles in the organization.

Ashley Childs is joining the NMPF team as its new Manager of Finance and Administration, overseeing billing and payment functions such as Accounts Payable, Accounts Receivable, and contract billing.

Childs brings nearly a decade of experience in the hospitality industry. She spent the past eight years at George Washington’s Mount Vernon as the Assistant Director of Food and Beverage, where she managed $8 million in annual revenue and oversaw 25 staff. She was critical in negotiating, contracting, and billing $2 million in banquets annually, reconciling these funds in the point-of-sale system, and collaborating with the accounting team to resolve discrepancies and align expenses with budgets.

Originally from Pennsylvania, Childs holds a degree in Tourism and Hospitality from Temple University, with a focus on Operations.

Pat Vincent joined NMPF as its Director of Economic Policy and Market Research late in 2024. He provides valuable economic insights and research, with a particular focus on the U.S. dairy markets, offering commentary on farm economics, consumer dairy demand, and macroeconomic conditions affecting the U.S. dairy industry.

Prior to NMPF, Pat Vincent was the Senior Global Economics Analyst from General Mills, where he oversaw global agriculture commodities.

He holds a degree in Economics and an MBA from the University of Denver. With more than a decade of experience in market analysis and economic research, Pat brings a wealth of expertise to NMPF. Accompanying him in Virginia is his cheerful dog, Roy, a young Sheltie.