NMPF Applauds House Subcommittee for Putting Dairy First; DMC Decision Tool Now Online

ARLINGTON, Va. – As key milestones are being met in offering much-needed financial relief for dairy producers, the National Milk Producers Federation today thanked the House Agriculture Committee’s Subcommittee on Livestock and Foreign Agriculture for choosing dairy as the subject of its first hearing this year.

Lawmakers heard a diverse array of witnesses who provided important perspectives on the state of U.S. dairy, which is in its fifth year of low prices and its second year of trade-related hardships. In their opening statements:

  • Minnesota dairy farmer Sadie Frericks spoke of the importance of the new Dairy Margin Coverage program as a risk management tool as her family weathers economic challenges;
  • California Dairies, Inc. President and CEO Andrei Mikhalevsky provided an overview of dairy’s trade issues, a rising concern as exports are crucial to increasing dairy demand;
  • Pennsylvania dairy farmer Dave Smith, Executive Director of the Pennsylvania Dairymen’s Association, discussed additional challenges, including the importance of milk consumption in schools and the need to combat mislabeled fake milks in the marketplace.
  • New York dairy farmer Michael McMahon gave voice to the dairy industry’s unique workforce challenges, including the lack of a viable guest worker program that covers year-round workers
  • and Dr. Scott Brown, Director of Strategic Partnerships for the University of Missouri’s College of Agriculture, Food and Natural Resources, provided economic insight.

“Dairy’s challenges reverberate through the U.S. economy, and it’s appropriate that lawmakers put dairy first on its 2019 agenda,” said Jim Mulhern, president and CEO of NMPF. “We thank all of the farmers and industry leaders who spoke out. We also commend subcommittee Chairman Rep. Jim Costa (D-CA) and ranking member Rep. David Rouzer (R-NC), as well as Agriculture Committee Chairman Rep. Collin Peterson, (D-MN), who made helpful opening statements at the hearing, for their attention to dairy’s urgent needs.”

The NMPF continues to encourage farmers to prepare for Dairy Margin Coverage signup, scheduled to begin June 17. The USDA’s decision tool, designed to help farmers determine their appropriate coverage level, is now online here. Later this week, letters will be sent to producers informing them of their premium refunds under the previous Margin Protection Program.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Endorses EPA WOTUS Proposal, Praising Clarity and Certainty

ARLINGTON, Va. – The National Milk Producers Federation endorsed the Environmental Protection Agency’s proposed changes to the Waters of the U.S. rule, a proposal meant to provide clarity and certainty about the waterways subject to regulation under the federal Clean Water Act. Released in February 2019, the EPA proposal was a response to the ill-fated 2015 WOTUS rule that has been mired in litigation.

NMPF urged the EPA in 2014 to rethink WOTUS, citing its many ambiguities and uncertainties. A subsequent NMPF analysis showed that the EPA and Army Corps of Engineers’ proposal did not meet the requirements of various Supreme Court rulings that were the catalyst for the 2015 regulation.

NMPF expressed strong support for the basic jurisdictional line EPA made around intermittent and more significant waters as being within the regulatory power of the United States. NMPF believes this line accurately reflects the U.S. Constitution, statutes, and court decisions interpreting the law.

“Clean water is essential to milk production, and the dairy industry is very willing to work with EPA to protect U.S. waters,” said NMPF President and CEO Jim Mulhern. “EPA’s latest draft provides the clarity and certainty we were seeking in 2014 around which waterways fall under the jurisdiction of the Clean Water Act. While it has taken five years, we are grateful EPA has redrafted the WOTUS regulations.”

NMPF submitted 22 pages of comments on the EPA regulation for when farmers must seek Clean Water Act permits for a long list of normal farming activities near wetlands. While the WOTUS proposal did address many long-standing concerns, NMPF offered some additional points of clarity in other areas to further improve the proposal.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Welcomes New Government Relations Staffer

NMPF is pleased to announce that Claudia Larson has joined the staff as Director of Government Relations to work with NMPF Vice President of Government Relations Paul Bleiberg.

Claudia Larson

Larson arrives from the office of Representative Jim Costa (D-CA), Chairman of the House Agriculture Subcommittee on Livestock and Foreign Agriculture and a longtime friend of dairy and agriculture. She served as Costa’s Communications Director and Strategic Policy Associate, working on a wide range of legislative areas.  Prior to her work on the Hill, Claudia was a researcher and educator at Northeastern University – including agriculture-related projects – and other Boston-area institutions.  Claudia holds bachelor’s and master’s degrees in Political Science from Boston College and a Ph.D., also in Political Science, from Northeastern University.

“We’re very pleased to have Claudia join our team,” said NMPF President and CEO Jim Mulhern. “Her skills and background make her a valuable addition to NMPF’s government relations efforts and we’re excited to have her working with us on behalf of America’s dairy farmers and their cooperatives.”

 

FARM Releases Human Resource Materials for Dairy Producers

The National Dairy Farmers Assuring Responsible Management (FARM) Program in April released additional materials as part of its new Workforce Development initiative.

FARM Workforce Development focuses on the people who work year-round to provide excellent cow care and produce wholesome milk: dairy farm families and their employees. The program’s resources offer guidance and best management practices around human resources and health and safety.

The new FARM Human Resources (HR) Reference Manual is designed to help dairy farm owners, managers and other relevant staff develop a consistent and compliant human resources programs on their farms. It guides farm owners and managers in handling a variety of human resources activities. The manual also helps address employee-related challenges that owners and managers might face in their day-to-day farming operations.

A set of HR templates and a sample Employee Handbook accompany the FARM HR Manual. These resources can be downloaded and tailored by owners and managers to fit the needs of their operation. The manual can be found here.

Spanish-language versions of the manual and templates will be available soon.

CWT-Assisted Export Sales Near a Half-Billion Pounds of Milk Equivalent, Adds Products

CWT member cooperatives secured 50 contracts to sell 5.1 million pounds of American-type cheeses, 1.6 million pounds of butter, and 11.1 million pounds of whole-milk powder in March. These contracts bring the 2019 total of the CWT-assisted product sales contracts to 25.4 million pounds of cheese, 2.8 million pounds of butter, and 22.2 million pounds of whole milk powder and will move the equivalent of 459.6 million pounds of milk on a milkfat basis abroad this year.

CWT also announced that effective April 1, it will add pasteurized process cheese, cream cheese and anhydrous milkfat to the other dairy products eligible for export assistance – American-type cheeses, butter and whole milk powder.

“World dairy markets are evolving and the addition of these products to those eligible for CWT assistance will help U.S. dairy farmers serve world consumer demand,” noted Jim Mulhern, President and CEO of NMPF.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available at http://www.cwt.coop/membership

 

Pressure Mounts for EU to End Agriculture Trade Deficit

With policies that include both high tariffs and onerous non-tariff barriers to trade, such as complex and excessive import requirements and bans on the use of common food names, it’s no surprise that the European Union would want to keep agriculture out of negotiations for a free-trade agreement with the U.S. NMPF and its congressional allies are working to ensure that doesn’t happen, pointing to a lopsided trade imbalance in dairy as one reason that EU hypocrisy must end before broader trade progress occurs.

The EU exports approximately $1.5 billion in dairy to the United States each year, compared to $100 million in U.S. shipments to the EU. Wanting to lock in that advantage – the product of protectionist policies — the EU is already insisting that discussing agriculture is off the table before formal negotiations begin on any trade deal. NMPF and industry stakeholders are making it clear that an “agriculture-free” model for a free-trade agreement would be unacceptable and that any agreement with the EU must address the above-mentioned drivers of the U.S. dairy deficit.

Congress has taken notice as well.

Representatives Ron Kind (Wis.), Jackie Walorski (Ind.), Virginia Foxx (NC) and Angie Craig (Minn.) led a letter to the USTR dated March 14 emphasizing that agriculture must be included in upcoming negotiations. The letter attracted signatures from 114 members of Congress who wrote that “agriculture is the source of a great number of trade barriers and irritants in the U.S.-EU trading relationship. Thus, an agreement with the EU that does not address trade in agriculture would be, in our eyes, unacceptable.”

NMPF conducted outreach to House members allied with dairy to help secure support for this important message to U.S. negotiators. The organization will continue working to ensure that any potential trade deal with the EU is focused on narrowing the U.S. dairy trade deficit with the EU, not on worsening it.

NMPF Urges Washington to Prioritize Dairy in China Negotiations

With the outcome of trade negotiations with China still uncertain, NMPF is taking proactive steps to engage with President Trump, his administration and policymakers to ensure that dairy-industry priorities receive top consideration in negotiations with China.

Negotiations with China, once aimed toward a March conclusion, are certain to continue well into spring. Treasury Secretary Steven Mnuchin and U.S. Trade Representative (USTR) Robert Lighthizer traveled to Beijing last month to resume trade talks, while Chinese officials returned to Washington at the beginning of April. NMPF remains hopeful that a constructive outcome is near, with an agreement between Presidents Trump and Xi that could be signed within the next few months.

NMPF, the U.S. Dairy Export Council and allied groups are working to help shape an agreement that further opens China’s market to U.S. dairy products and rolls back trade barriers, including securing the removal of all retaliatory tariffs against dairy.

Toward this end, NMPF recently worked with the US Dairy Export Council to spearhead two letters to President Trump. One letter, signed by 49 food and agriculture groups, explained that a deal that maintains retaliatory tariffs could negate any trade gains. “As part of your negotiations, we are asking that your Administration prioritize the removal of all retaliatory tariffs and make their immediate elimination a mandatory condition of any successful trade agreement,” we wrote. “Quickly restoring access to the Chinese market for agriculture products is a top priority for America’s farmers, agribusinesses and food manufacturer as negative impacts will continue to compound the longer that our trade relationship with China remains in question.”

The other letter, sent by NMPF, USDEC and the International Dairy Foods Association, delivered a dairy-specific message on the importance of securing strong results for the sector in the trade negotiations and providing for more market access to China for dairy products.

China’s retaliatory tariffs, levied in response to U.S. Section 301 tariffs on Chinese goods, have resulted in strongly negative repercussions for dairy in particular. U.S. cheese exports to China, which had been on pace to exceed records during the first half of 2018, dropped by 45 percent after retaliatory tariffs were imposed.

An agreement with China that prioritizes the removal of retaliatory tariffs, increased purchase of U.S. dairy products and removal of trade barriers will allow our industry to reclaim and increase our market share. NMPF’s focus is to encourage actions that will add momentum for immediate action to resolve this trade dispute.

DAIRY PRIDE Act Furthers Pressure on FDA for Fake-Milk Action

The National Milk Producers Federation voiced strong support for the DAIRY PRIDE Act introduced March 14, calling it another means toward a crucial end for consumers: the end of mislabeled non-dairy products as “milks” in the marketplace.

The legislation, introduced by Senators Tammy Baldwin (D-WI) and Jim Risch (R-ID) in the Senate and Representatives Peter Welch (D-VT) and Mike Simpson (R-ID) in the House, further prods the FDA toward increasingly necessary action as plant-based imitators of milk, cheese, butter and other products brazenly flout FDA rules that restrict the use of dairy terms on non-dairy products. While NMPF continues to press the agency to strengthen its own enforcement, substantial support for dairy in Congress only underscores the urgency for the FDA to act, said Jim Mulhern, president and CEO of NMPF.

Following NMPF’s submission of a Citizen Petition to FDA in February outlining a path forward as the agency considers more than 14,000 comments submitted to it on the proper use of dairy terms, the DAIRY PRIDE Act would protect the integrity of food standards by prompting FDA to enforce labeling requirements for dairy. The measure would require FDA to issue guidance for nationwide enforcement of such requirements within 90 days and mandate that FDA report to Congress two years after enactment to hold the agency accountable.

“We hope that the FDA will soon do the right thing by updating and enforcing rules that aid consumers by providing clear, accurate labeling on what is, and what isn’t, milk, and we are ready to help the agency in any way we can,” Mulhern said. “This bipartisan, bicameral legislative effort demonstrates strong support within Congress for fixing this problem, and we commend these lawmakers for laying down this important marker.”

Key leaders in both the House and Senate have chastised the FDA for failing to enforce existing food standards that specify products labeled as “milk” have to come from a dairy animal. The legislation adds momentum to NMPF’s longstanding campaign to encourage the FDA to enforce its own regulations, which has gained steam in the past year through the FDA comment period, prompted by NMPF activism, and the NMPF’s new petition.