Author: Theresa Sweeney

House Legislation Seeks to Restore Dairy Allotment in WIC

Posted on by Theresa Sweeney

With the Sept. 30 federal fiscal year deadline fast approaching, the House Appropriations Committee has begun advancing its fiscal year 2025 spending bills for each of the federal government’s departments and agencies.

The House Agriculture-FDA Appropriations Subcommittee on June 11 approved its 2025 spending bill, including important dairy priorities in next year’s funding for the U.S. Department of Agriculture and the Food and Drug Administration.

The measure’s full spending details will become available when the full committee takes it up later this month, but it includes NMPF-supported language to reverse the reduction in the maximum monthly milk allowance in USDA’s final foods package rule for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which helps mothers and young children have access to key nutrients they otherwise may lack. NMPF is concerned that the final rule will decrease that access via a lower milk maximum.

Outside of the annual spending process, Representatives Elise Stefanik, R-NY, Josh Harder, D-CA, and Derrick Van Orden, R-WI, introduced the bipartisan Protecting Mothers and Infants’ Access to Milk Act on June 26. This bill would reverse the reduction in the WIC maximum monthly milk allowance for the long term, without modifying any other portion of USDA’s final WIC foods package rule. NMPF will work with the bill’s sponsors to advance this bipartisan effort.

Senate Republican Farm Bill Framework Includes Dairy Gains

Posted on by Theresa Sweeney

Dairy policy priorities continue to be reflected in Congressional farm bill plans, with Senate Agriculture Committee Ranking Member Sen. John Boozman, R-AR, releasing Senate Republicans’ farm bill framework on June 11.

Like the framework previously issued by Senate Democrats and the bill passed by the House Agriculture Committee in May, Boozman’s framework includes several important dairy policy priorities. It also marks another key step toward enacting a farm bill.

Boozman’s plan provides “a strong farm bill framework that marks another important step toward enacting a bipartisan farm bill into law this year,” said NMPF President & CEO Gregg Doud in a statement.

The Senate Republican framework includes positive dairy provisions, such as:

  • Extending the Dairy Margin Coverage (DMC) Program through 2029; updating production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in five years of coverage
  • Requiring USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance conversations, a key component of NMPF’s Federal Milk Marketing Order modernization proposal
  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program
  • Boosting funding for critical dairy trade promotion programs and protecting the use of common food names worldwide
  • Supporting the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in schools;
  • Increasing funding for animal health initiatives and programs; and
  • Advancing the bipartisan Innovative FEED Act to expedite and modernize approval of animal feed ingredients that have a proven track record of reducing enteric methane emissions.

The current farm bill officially expires on Sept. 30, but most core programs run until Dec. 31, giving the congressional agriculture committees until the end of the calendar year to complete work on a new farm bill before a new Congress is sworn in.

May DMC Margin Jumps to $10.52/cwt as Higher Prices Outstrip Feed Costs

Posted on by Theresa Sweeney

The Dairy Margin Coverage Program rose sharply in May to levels well above the floor needed to trigger payments to dairy farmers, with milk prices rocketing past increasing feed costs to bolster dairy bottom lines.

Feed prices in May sharply reversed a falling trend of recent months to gain $0.58/cwt of milk from a month before, as measured by the DMC feed cost formula. All three formula components contributed measurably to the boost. Even so, May milk prices gained $1.50/cwt from April, rising to $22.00/cwt boosting the DMC margin by $0.92/cwt from the prior month to $10.52/cwt.

Available forecasts at the end of June indicate that the DMC margin will average about $11.50/cwt during 2024. This would be the second-highest average margin for a calendar year since margin protection became the basic federal safety net program for dairy.

FARM Provides Program Updates in Animal Care and Workforce Development

Posted on by Theresa Sweeney

National Dairy Farmers Assuring Responsible Management (FARM) Program updates to its Animal Care and Workforce Development program areas took effect July 1, showcasing its commitment to continuous improvement within the dairy industry.

The program’s foundational pillar, Animal Care, features updated standards surrounding euthanasia, fitness for transport, calf management, and continuing education. With the consultation of the governance structure, comprised of producers, animal scientists, cooperatives and processor staff and veterinarians, Animal Care Version 5 aims for clarity and consistency across program evaluations. Version 5 standards will be in effect through June 30, 2027.

Workforce Development Version 2 updates the evaluation tool involved, restructuring the evaluation to better group questions of similar themes. Seven new questions also were crafted to further strengthen the tool in areas of communication, clarity in roles, and performance management. Training for Evaluators began in May and will continue throughout the year.

Environmental Stewardship Version 3 will also be launching later this summer. The update will integrate a new greenhouse gas model to offer updated science and the ability to run what-if scenarios to assess practice and technology options. The Ruminant Farm Systems model, led out of Cornell University, will be the new engine for FARM Environmental Stewardship, supporting dairy industry efforts to reach GHG (Greenhouse gas) neutral by 2050 and responding to growing customer requests.

Young Dairy Leaders Champion Key Issues on Capitol Hill

Posted on by Theresa Sweeney

NMPF hosted young dairy farmer leaders from across the United States June 3-4 for the National Young Cooperators (YC) Program’s annual Dairy Policy and Legislative Forum in Washington, D.C.

Forty-nine young dairy farmers and cooperative coordinators from 17 states representing ten member cooperatives participated in discussions about political engagement and dairy policy issues along with training on how to be an effective advocate and spokesperson for dairy. YCs then headed to Capitol Hill to speak with members of Congress and their staff about NMPF priorities including the 2024 Farm Bill, dairy labeling and foreign market access.

“There are so many things that affect us, but they don’t affect us in a way that we see every day,” Matthew Lansing, an Iowa dairy farmer who co-chairs the National YC Program, said in a Dairy Defined Podcast released before the fly-in. “Keeping involved and up to date as much as we can and pushing for things that we need on a farm on a day-to-day basis is really key for us to propel forward into the future and be what we need to be for consumers going forward.”

Speakers for this year’s event included NMPF Executive Committee members Jay Bryant, president and CEO of Maryland & Virginia Milk Producers Cooperative Association, and Doug Chapin, chairman of Michigan Milk Producers Association. Both shared about their backgrounds and leadership experiences while emphasizing the importance of political engagement. YCs also toured the U.S. Capitol with Rep. Marc Molinaro, R-NY and heard remarks from Rep. Kim Schrier, D-WA, at this year’s congressional breakfast.

Since 1950, the National YC Program has provided emerging dairy leaders with a better understanding of issues facing farmers and their cooperatives. The program is open to younger and beginning dairy farmers who own or are employed on a dairy farm that is a member of one of NMPF’s member cooperatives. Click here and check the National YC Program box to stay up to date on program activities.

CWT Task Force Approves Recommendations from Expert Working Groups

Posted on by Theresa Sweeney

The task force of farmers and cooperative leaders evaluating Cooperatives Working Together’s future on June 24 approved a series of improvements for the self-help program when it is renewed after 2024.

Following an extensive review of CWT’s current operations and an evaluation of the potential value of an expanded export assistance program, the task force endorsed several detailed proposals developed and refined by three working groups of cooperative staff experts in the areas of Product Mix; Bid Process Adjustments; and Market Development.

The task force’s decision will now be reviewed July 9 by the NMPF Executive Committee, and later by the full NMPF Board of Directors. The recommendations would then become part of the next CWT program cycle that begins Jan. 1.

The working group recommendations include updates to or added resources within the following program areas:

  • All cheese varieties will be eligible for CWT’s price gap support
  • CWT will create targeted pilot programs to address tariff coverage for value-added skim milk powder sales to Southeast Asia, and a target market premium for cheese sales to Central America & the Caribbean
  • CWT will offer fat-equivalent support for the following products: ESL/aseptic fluid milk; evaporated/condensed milk; and ice cream
  • CWT will increase its operating program bid flexibility to extend eligible delivery periods to 12 months, and remove volume limits on a trial basis
  • CWT staff will provide increased insight on bid acceptance parameters, sharing a brief summary with weekly offers explaining shifts in support levels; and
  • CWT will create an advisory group to provide strategic direction and market development support, with a Phase I emphasis on pre-competitive support that provides opportunities for all cooperatives to participate.

The task force met earlier at NMPF’s June Board meeting to receive a preview of working group activity and to review a recent assessment of CWT’s impact on milk prices.

During its meeting, the Board of Directors approved five objectives to pursue as part of the renewal effort for the CWT program after 2024. They include:

  • CWT should seek to achieve the highest participation of cooperatives in the export assistance program
  • The contribution made to CWT should be at a level that maximizes the benefit back to dairy producer milk prices, not to exceed 4 cents per cwt.
  • CWT’s export assistance program should promote consistent supplies of U.S. dairy products into foreign markets. Assistance offered should create competitively landed values for U.S. dairy products that will impact milk prices paid to U.S. dairy producers
  • CWT should enhance program operations (e.g., processes and program reviews) including establishment of an operating committee to help direct those functions; and
  • CWT should explore market development opportunities within its overall program budget structure.

June CWT-Assisted Export Sales Top 5.4 Million Pounds

CWT member cooperatives secured 56 contracts in June, adding 5.4 million pounds of product to CWT-assisted sales in 2024, an amount equal to 47.8 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa, Oceania and South America and will be shipped from June through December 2024.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

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.

NMPF Board Calls for Milk-Pricing Fairness, Leads on H5N1 Response

Posted on by Theresa Sweeney

NMPF leadership expressed confidence that farmers would soon see a fairer federal system for milk pricing and highlighted dairy farmers’ robust response to H5N1 influenza in dairy cattle at the organization’s Board of Directors meeting June 4-5.

“Even with all the stresses on the farm, there’s still not a better industry,” said Randy Mooney, a dairy farmer from Rogersville, MO, and a member of the Dairy Farmers of America cooperative, in remarks at the meeting. “I’m proud of where we’re at, producing high quality, nutritious food for the consumer. It’s amazing how dairy farmers do it.”

Board members spent two days reviewing recent policy developments, including Federal Milk Marketing Order deliberations, the progress of the 2024 Farm Bill, and up-to-date information on H5N1, which has led to significant federal and farmer investments in biosecurity and testing. NMPF Chief Science Officer Dr. Jamie Jonker led discussion on the issue.

The meeting was held with NMPF’s annual Young Cooperators fly-in (see separate story), in which young dairy farmers meet with lawmakers to advocate for the industry. Dairy farmers urged passage of a Farm Bill, expanded market access for U.S. dairy products and federal action toward integrity in milk labeling, restricting the use of dairy terms to animal products in line with Food and Drug Administration standards.

The Board also examined potential improvements to the NMPF-led Cooperatives Working Together program (see separate story), the 21-year-old farmer self-help initiative that is up for renewal after 2024. A member task force has been weighing a range of options to expand the use of CWT’s export assistance program. The NMPF Board approved a series of five directional goals for CWT as it considers the program’s parameters in 2025 and beyond.

The board also elected three new members: Dave Peterson of Minnesota, representing Associated Milk Producers, Inc.; Alex Peterson of Missouri, representing Dairy Farmers of America; and Mike Schoneveld of Washington, representing Darigold.

FMMO Recommendations Build on NMPF Success

Posted on by Theresa Sweeney

USDA’s proposed plan for Federal Milk Marketing Order (FMMO) modernization release July 1 reflected years of painstaking NMPF efforts in crafting a comprehensive plan and building consensus across dairy, leading to recommendations that will set dairy up for success.

The proposal, which is open for comment through August, comes after USDA examined hearing briefs submitted by participants in 2023’s record-long federal order hearing. NMPF again led with its comprehensive approach to improved milk pricing, offering the department detailed proposals that worked to ensure benefits for farms in all regions, of all sizes.

“NMPF is heartened that much of what we proposed after more than two years of policy development, and another year of testimony and explanation, is reflected in USDA’s recommended FMMO modernization plan,” NMPF President and CEO Gregg Doud said in a statement the day the plan was released.

“Crafting an effective milk-pricing system for farmers is complex and requires a careful balance. USDA’s plan acknowledges that complexity and, while not matching our proposal in every detail, looks largely in keeping with the comprehensive approach painstakingly determined by the work of dairy farmers and their cooperatives over the past three years,” Doud said. “We look forward to examining this proposal topic-by-topic, gathering input regarding the various needs of our members nationwide, and adding their insights as this process moves toward a vote of producers.”

Doud elaborated on USDA’s plan, and its relationship to proposals by NMPF and others, in NMPF’s monthly CEO’s Corner column.

The proposal is now in a 60-day comment period. NMPF’s member-led task force on FMMO is meeting July 11 to discuss the plan and offer member input, while the following day NMPF’s Co-op Communicators Committee is discussing publicity and farmer-communications efforts to educate the industry on the proposal. After USDA reviews public comments, a final plan will be put to a vote of producers, likely in the early months of 2025.

Co-op Leadership Brings FMMO Modernization Success

Posted on by Theresa Sweeney

Well done, co-ops. Your leadership is shaping a better future for dairy.

On Monday, an effort that took more than three years, more than 200 meetings, 49 days of a record-long Federal Order hearing, and countless hours of analysis and discussion were reflected in a recommended USDA plan for Federal Milk Marketing Order modernization that incorporates much of the comprehensive approach to improvements we advocated throughout.

Yes, not every detail is exactly as we would have had it – we always knew that would be the case. And USDA’s plan isn’t set in stone – we take very seriously the comment period we will soon be in and plan a detailed response to this proposal. Our FMMO task force is meeting to discuss the plan next week; even as we speak, our staff and cooperative experts are putting pen to paper to better understand how various parts of the USDA plan will interact to affect dairy farmers and the cooperatives they own, as well as the broader industry.

That’s all to say our work is far from over. But Monday’s decision was arguably the critical milestone in this process. And this industry – led by the member-owners of the nation’s leading dairy cooperatives – has many reasons to be heartened by the improvements USDA has proposed to the nation’s Federal Milk Marketing Order system.

A few notes on what USDA offered, and how it compares to what we’ve advocated.

  • On the “higher of” Class I mover. Noting that dairy farmers have lost roughly $1.3 billion in revenue since the mover was changed in 2019, we fought for a return to the higher-of in the name of fairness and real-time market signals. Processors proposed a different formula, citing its importance to risk management, especially for extended shelf-life milk. Recognizing the need to restore orderly milk marketing, USDA decided to go back to the higher-of, with an accommodation for extended shelf-life milk, thus granting NMPF’s request for the vast majority of U.S. fluid milk. USDA’s solution is, frankly, as innovative as it is fair – a classic case of two sides not getting all that everyone wanted, but everyone getting what they most needed.
  • On make allowances. USDA’s numbers for an adjustment were higher than what NMPF proposed, though not greatly out of line with our analysis. And USDA denied the processors’ request to automatically increase the numbers over the next three years, which NMPF opposed. Agreement was nearly universal that make allowances, which hadn’t been revised since 2000, needed to change. The next step now will be seeking better plant-cost data through mandatory surveys via legislation, a step that’s been included in every significant congressional farm bill plan that’s been proposed.
  • On increasing the Class price skim milk component factors. Again, USDA’s plan takes a direction similar to NMPF’s, though it doesn’t include the automatic update provision we proposed.
  • On the Class I differentials. In many cases, USDA’s county-level calculations matched our own. In many others, the calculations deviated minimally. And in a few others, the differences were significant. Meanwhile, USDA denied a processor proposal to zero out the base differential, which would have significantly reduced every differential in the country and set the Class I differentials to zero at some locations in the West. We will be examining USDA’s methodology to better understand its calculations, reflecting the best data and our members’ input.
  • On removing barrel cheese from the protein price formula. USDA accepted NMPF’s proposal without modification.

As has always been the case, member leadership is what has made this process work for dairy. The conversation is continuing, and the comprehensive, consensus-driven approach that has been our hallmark will also continue.

Once Monday’s proposal is officially published in the Federal Register, we and other stakeholders will have 60 days to submit comments to USDA. A final producer vote is projected for early 2025. Again, thank you to all the cooperative leadership for what has been accomplished so far, and for the good work for dairy that will continue. And with that, happy Independence Day. We’ll be back next week for the second half of an already successful year.

Gregg Doud

President & CEO, NMPF

 

Methane-Reducing Feed Additive Creates Revenue Streams

Posted on by Theresa Sweeney

With FDA’s review complete, Elanco’s Bovaer is getting ready for the U.S. marketplace. But the methane-reducing feed additive’s success will be as much about economic as environmental sustainability, said Katie Cook, Elanco’s Vice President of Livestock Sustainability and Farm Animal Marketing, in a Dairy Defined podcast released today.

“The biggest thing, and the thing that’s most important, is not only are we making sure that we’re providing an environmental sustainability practice to our producers, but most importantly we’re providing them with additional profitability,” Cook said. “It’s a key tool as we think about telling our dairy story and the value that our dairy products bring to consumers. But more importantly, as a producer, it’s also giving you an additional revenue stream as we think about the economic viability of our farms’ longer term.”

You can find and subscribe to the Dairy Defined podcast on Apple Podcasts and Spotify under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

NMPF Statement on Senate Ag GOP Farm Bill Framework

Posted on by Theresa Sweeney

From Gregg Doud, President and CEO, National Milk Producers Federation:

“Dairy farmers and their cooperatives commend Senate Agriculture Committee Ranking Member John Boozman, R-AR, for issuing a strong farm bill framework that marks another important step toward enacting a bipartisan farm bill into law this year. Ranking Member Boozman’s framework includes numerous dairy priorities, such as reauthorizing and updating the vital Dairy Margin Coverage safety net and advancing NMPF-led bipartisan bills to spur approval of innovative feed ingredients, protect the use of common food names, and boost consumption of nutritious milk among our nation’s youth.

“A five-year farm bill provides producers with certainty as they manage their risk and resources and feed consumers at home and abroad. We stand ready to continue working with House and Senate Ag leaders in both parties to complete the job this year.”