Farmers Begin DMC Signup with Extra Incentive From NMPF-Supported Feed-Cost Change

Signup for the long-awaited Dairy Margin Coverage program began June 17, including a late change to DMC feed-cost calculations that will bring dairy farmers millions of dollars in additional aid and that NMPF had been quietly advocating with the White House and USDA for months. More than 5,000 dairy farmers signed up for the program in its first 10 days, according to USDA.

The 2018 Farm Bill created the DMC program, which replaces the Margin Protection Program for Dairy. The program protects dairy producers when the difference between the milk prices and feed costs (the margin) falls below a certain dollar level of coverage selected by the producer. The USDA’s decision to include the cost of high-quality alfalfa feed in the payment calculations, announced shortly before signup began, increases calculated feed costs and thus lowers margins, triggering higher payments to producers. The decision will be a boon for dairy farmers facing a fifth year of low prices.

“The DMC provides a stronger safety net for America’s dairy producers, one sorely needed as low prices, trade disturbances and chaotic weather patterns combine to create hardships,” said Jim Mulhern, president and CEO of the NMPF. “We have advocated for months that margin calculations must consider the higher feed costs dairy producers pay to properly nourish their livestock. USDA’s decision to include premium and supreme quality alfalfa feed is appropriate and is another win for dairy farmers that will provide additional, crucial aid.”

Producers may cover up to their first 5 million pounds of milk production history (equivalent to the production of a 215-cow dairy farm) at a margin of up to $9.50 per hundredweight. Payments under the program will be retroactive to January 1. Calculations already made for the first five months of the year show that producers signing up at the $9.50 level would receive payments for each month, with total payments far exceeding the already-set annual premium. All producers will be able to access this affordable coverage regardless of size, and larger producers will have access to significantly more affordable $5.00 catastrophic-type coverage.

As far back as the Farm Bill signing in December 2018, NMPF advocated for USDA to prioritize implementation of the dairy program given the prolonged distress producers have faced.  USDA heeded this call early on and members of Congress gave voice to it as well.  This spring, House Agriculture Committee Chairman Collin Peterson (D-MN) and Rep. Glenn ‘GT’ Thompson (R-PA) as well as Senate Agriculture Committee Ranking Member Debbie Stabenow (D-MI) and Senator Roy Blunt (R-MO) spearheaded bipartisan letters urging USDA to promptly finalize the DMC program in a farmer-friendly manner.

“We very much appreciate USDA Secretary Sonny Perdue sticking with the department’s pledge to make dairy a priority in Farm Bill implementation,” Mulhern said. “And we again want to express our appreciation to Congressional agriculture leaders who worked together on a bi-partisan basis to deliver these program improvements,” he said.

Dairy farmers have begun to receive letters in the mail from USDA’s Farm Service Agency to make them aware of their enrollment and coverage options under the DMC. NMPF looks forward to working closely with USDA to ensure that any remaining producer questions or concerns are addressed as the implementation process unfolds.

Dairy Response to Organic-Industry-Funded Emory University Milk Study

A statement from the National Dairy Council, the International Dairy Foods Association, and the National Milk Producers Federation related to a study published today in Public Health Nutrition journal:

“Milk is one of the safest foods you can buy. Regarding this new study, it is very important to note that information about the methodology used is so scant that serious flaws are likely to exist. Many of the key results raise red flags and leave more questions than answers, including a sample size that is not statistically valid, a four-year lag between data collection and published analysis, and results that are so far out of line with federal government data that they seem implausible. Given these facts, combined with the historical testing data using FDA-approved methodology that clearly demonstrates the occurrence of residues for several of the antibiotics in question is extremely rare, the data underlying this recent study must be considered highly questionable and not a true reflection of the U.S. milk supply.”

FARM Program Announces New Educational Resources

The National Dairy Farmers Assuring Responsible Management (FARM) Program announced two new manuals and other materials as part of its FARM Workforce Development program area.

The FARM Safety Reference Manual provides straightforward, relevant and useful information on workplace safety and health meant to help dairy owners and employees develop and implement a robust and practical safety program. The FARM Safety Reference Manual is a collaboration between the Idaho Dairymen’s Association, the Idaho Milk Processors Association, and National Milk Producers Federation.

The FARM Human Resources (HR) Reference Manual helps dairy farm owners, managers and other relevant staff develop an on-farm HR program. An effective HR program supports a positive and safe work environment that helps attract and retain a professional, high-quality, and engaged workforce. A downloaded, customizable set of HR templates and a sample Employee Handbook accompany the FARM HR Manual.  The manuals can be found here. Spanish-language versions of the manuals and templates will be available soon.

The National Dairy FARM Program launched its newest component last year, gathering expert and stakeholder input from the entire dairy value chain, including farmers, cooperative staff, academics, and other subject matter experts. This input ensures the Workforce Development materials are technically robust and relevant to today’s dairy industry.

FARM Workforce Development demonstrates that the U.S. dairy industry is proactive and passionate about providing safe and thriving work environments.

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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 more than two-thirds of all U.S. milk, making NMPF the voice of dairy producers in Washington. For more, visit www.nmpf.org.

Created by NMPF in partnership with Dairy Management Inc, the National Dairy FARM (Farmers Assuring Responsible Management) works with all U.S. dairy farmers, co-ops and processors, to demonstrate to dairy customers and consumers that the dairy industry is taking the very best care of cows and the environment, producing safe, wholesome milk and adhering to the highest standards of workforce development.

NMPF Thanks USDA for Steps to Address Feed Shortage

The National Milk Producers Federation today commended Agriculture Secretary Sonny Perdue for actions intended to provide relief to farmers impacted by significant flooding and rain this spring.

The Department of Agriculture has announced that farmers who planted cover crops on prevented-plant acres will be able to hay, graze, and chop their fields as early as September 1 this year, as opposed to the usual November 1 date, to provide for enough forage for dairy and livestock operations later this year.  The Department is also allowing for silage to receive the same treatment this year as haying and grazing.

“This year’s problematic weather and disasters have created a unique set of challenges for dairy producers for whom feed availability is a critical issue,” said Jim Mulhern, president and CEO of NMPF. “We thank Secretary Perdue for taking important steps to ease the feed crisis that farmers are facing in multiple regions of the country.”

NMPF has also endorsed the bipartisan Feed Emergency Enhancement During Disasters Act (H.R. 3183) introduced by Reps. Dusty Johnson (R-SD) and Angie Craig (D-MN), which takes similar steps to alleviate the feed challenges facing dairy farmers and others in agriculture.  NMPF looks forward to working with Congress and USDA to address this challenge.

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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 Thanks USDA, Urges Farmers to Sign Up for Dairy-Friendly DMC Program

ARLINGTON, Va. – The National Milk Producers Federation welcomed USDA’s announcement that signup for the long-awaited Dairy Margin Coverage Program will begin June 17, applauding the department’s inclusion of the cost of high-quality alfalfa feed in payment calculations, a boon for dairy farmers facing a fifth year of low prices.

“The DMC provides a stronger safety net for America’s dairy producers, one sorely needed as low prices, trade disturbances and chaotic weather patterns combine to create hardships,” said Jim Mulhern, president and CEO of the NMPF. “We have advocated for months that margin calculations must consider the higher feed costs dairy producers pay to properly nourish their livestock. USDA’s decision to include premium and supreme quality alfalfa feed is appropriate and is another win for dairy farmers that will provide additional, crucial aid.”

The 2018 Farm Bill created the new DMC program, which replaces the Margin Protection Program for Dairy. The program protects dairy producers when the difference between the milk prices and feed costs (the margin) falls below a certain dollar amount coverage selected by the producer.

Producers may cover up to their first 5 million pounds of annual milk production (equivalent to the production of a 200-cow dairy farm) at a margin of up to $9.50 per hundredweight. Payments under the program will be retroactive to Jan. 1. Calculations already made for the first four months of the year show that producers signing up at the $9.50 level would receive payments for each of the year’s first four months, with total payments well over the already-set annual premium. All producers will be able to access this affordable coverage regardless of size, and larger producers will have access to significantly more affordable $5.00 catastrophic-type coverage.

“We very much appreciate USDA Secretary Sonny Perdue sticking with the department’s pledge to make dairy a priority in Farm Bill implementation,” Mulhern said.  “And we again want to express our appreciation to Congressional agriculture leaders who worked together on a bi-partisan basis to deliver these program improvements,” he said.

Mulhern thanked Representatives Collin Peterson (D-MN) and K. Michael Conaway (R-TX), as well as Senators Pat Roberts (R-KS) and Debbie Stabenow (D-MI), the chairmen and ranking members of congress’s agriculture committees, for their work on creating the DMC. In addition, this spring, Chairman Peterson and Ranking Member Stabenow each spearheaded bipartisan letters, co-led by Rep. Glenn ‘GT’ Thompson (R-PA) and Senator Roy Blunt (R-MO), urging USDA to prioritize implementation of the DMC program in a farmer-friendly manner.

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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 Applauds Appropriations Subcommittee Passage of H-2A Amendment Aiding Dairy Farmers

ARLINGTON, Va. – From National Milk Producers Federation President and CEO Jim Mulhern:

“We greatly appreciate the work of Reps. Henry Cuellar (D-TX) and Dan Newhouse (R-WA) on behalf of America’s dairy producers to include year-round employees on farms in the H-2A farm worker visa program.

“The Cuellar-Newhouse amendment to the Homeland Security Appropriations bill would allow farm employers to use the H-2A visa program to hire foreign workers, regardless of whether those employees are engaged in temporary or seasonal work. NMPF and members of its Immigration Task Force have worked on this proposal, which is similar to language offered in the past by Rep. Newhouse and supported by Rep. Cuellar, so that dairy farmers can better use the H-2A visa program to fill year-round needs for year-round workers.

“Dairy farmers have largely have not been able to use H-2A visas because the current program restricts them only to the temporary and seasonal labor needs of agricultural employers. The current H-2A program simply isn’t an option for a commodity that ‘harvests’ its product multiple times a day, every day.

“Creating an additional legal pathway for workers to connect with farm employers deserves bipartisan support, and the history of this legislation shows such support is readily available. It is critical that the government creates a system that provides secure, legal employment. We thank lawmakers for their efforts toward achieving this goal.

“The amendment was added to the House’s version of the Fiscal Year 2020 Homeland Security Appropriations measure. Once the House Appropriations Committee moves to adopt the bill later today, the measure will be considered on the House floor likely this month. The Senate will craft its own version of the bill. NMPF looks forward to working to preserve the amendment in any final House-Senate negotiated measure to be sent to the President.”

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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.