Author: Theresa Sweeney

FMMO Modernization Must Put Farmers First

Posted on by Theresa Sweeney

This week the arduous process of modernizing the Federal Milk Marketing Order system reached another milestone, with participating organizations submitting their final statements summing up their arguments for why USDA should adopt their proposals as part of a new federal order.

NMPF continues its leadership, offering the most detailed, comprehensive plan to USDA. This process has never been about  who has the louder voice. From the very start it has been about putting in the work to understand the purpose and function of federal orders and painstakingly assembled the consensus support and careful approach that any plan needs to succeed.

It’s also because we’ve crafted our plan following principles that align thoroughly with the FMMO mission and purpose. In upcoming weeks, as USDA considers competing proposals, we expect that some of our opponents will attempt to muddy the waters, offering “solutions” that are incompatible with how federal milk marketing orders are meant to function – or, even worse, offering ideas that intentionally undermine core principles of the FMMO system. So, some principles for everyone to keep in mind as USDA moves forward.

The FMMO system is designed and intended to put farmers first. This isn’t just NMPF, the nation’s largest dairy-farmer organization, touting its own interests. It’s the literal legal language of a landmark interpretation of the Agricultural Marketing Agreement Act, which authorizes federal milk marketing orders. Under this statute, the “principal purposes” of the system is “to raise the price of agricultural products and to establish an orderly system for marketing them.” Court language further emphasizes that the law’s purpose is to protect milk producers. Specifically, the “‘essential purpose” of FMMOs is “to raise producer prices” and thus “ensure that the benefits and burdens of the milk market are fairly and proportionately shared by all dairy farmers.”

This principle is fundamental to every other consideration. Any revamp of orders must focus on producers, and it needs to benefit all producers fairly. That’s been the bedrock of our proposals, and its mission is well-served by the balance we’ve achieved.

The FMMO system is meant to encourage the orderly marketing of milk. Emphasizing the need for an “orderly system” – a well-functioning market is meant to benefit both milk producers and consumers. Again, the Agricultural Marketing Agreement Act allowing federal orders is established to “provide, in the interests of producers and consumers, an orderly flow of the supply thereof to market … to avoid unreasonable fluctuations in supplies and prices.”

That’s important to remember when considering approaches to the make-allowance, the Class I price surface, component pricing, and the other parts of our proposal. Along with the first priority of helping farmers, NMPF’s plans ensure an orderly market that serves consumers well without being unduly disruptive of any one component or adding disproportionate hardship to other key actors on the milk marketing system.

Arguments that boil down to “whatever gets me the most money” don’t seriously build consensus. And consensus is a necessity.

NMPF’s proposals for modernization were the most carefully balanced proposals presented at the hearing, but they were only about one-quarter of all proposed amendments to the order. Several competing proposals had some merit, especially from the perspectives of the organizations submitting them. What set our proposals apart was a genuine attempt to make separate pieces work together for the collective benefit of all dairy farmers – other proposals fell short in achieving that.

Even more disappointing were processor-led proposals that had no consistency or principle other than boosting processor bottom lines – a direct contradiction of the FMMO mission. These short-sighted ideas would, in many instances, lead to the unnecessary failure of numerous dairy farms and create disorderly markets.

And following on that, one final observation:

Dragging out modernization any further does nothing to help farmers. Anyone who thinks it doesn’t matter, remember: Farmers first.

Having witnessed the unnecessarily drawn-out hearing in Carmel, IN, it’s hard not to wonder if foot-dragging is a strategic choice in some circles. What’s a few months of million-dollar legal fees when a faulty Class I mover alone has cost farmers $1.2 billion since 2019? Who exactly benefits from a few more months of inaccurate component pricing that ensures farmers aren’t fairly compensated for the quality of their milk?

The original targeted timeline for a modernization vote was set for this fall, but now the spring of 2025 is more likely. Assuming that USDA adopts a plan that’s aligned with the key points above, it’s imperative that the entire dairy community, for the sake of the farmers the FMMO system is designed to serve, support timely approval and implementation. Drawn-out hearing-room banter is one thing – the prosperity of dairy farmers who have waited patiently long enough is more important than profiting from further delay.

Since this effort began in earnest in the wake of the COVID-19 outbreak, NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own. We continue to draw on the strength of our members throughout our united effort – that’s the foundation of success. We’ve taken another big step this week. We continue to look forward to its successful conclusion.

 

Gregg Doud

President & CEO, NMPF

 

NMPF FMMO Modernization Comments Put Farmers First

Posted on by Theresa Sweeney

The National Milk Producers Federation, the largest U.S. dairy-farmer organization and the industry’s premier policy voice in Washington, submitted its final, formal legal “brief” on their behalf for Federal Milk Marketing Order (FMMO) modernization to USDA.

The NMPF brief, which was submitted March 29 and hand-delivered to USDA today, emphasized that those farmers are the reason the system exists — and that, by law, their priorities are pre-eminent in USDA consideration of a final plan.

“Our proposed package of proposals to the Federal Milk Marketing Order align thoroughly with its mission and purpose, which were intended to put farmers first,” said Gregg Doud, president and CEO of NMPF. “We’ve spent nearly three years painstakingly assembling the broad consensus among dairy farmers that modernization needs to succeed. Our approach is careful and comprehensive, and it benefits farmers of all regions and types of operations.”

NMPF’s proposals include:

  • Returning to the “higher of” Class I mover;
  • Discontinuing the use of barrel cheese in the protein component price formula;
  • Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting;
  • Updating milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas;
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years;
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas; and
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.

In contrast to proposals driven by narrow self-interest, NMPF’s package of proposals reflect its broad-based membership and consensus-driven approach, which resulted in unanimous approval from its Board of Directors last year. With that unity unbroken, Doud said he looked forward to USDA’s consideration of NMPF’s solid hearing record which was built along with its recently submitted brief, as well as the department’s recommended decision expected at the beginning of July.

“NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own, and we continue to draw on the strength of our members,” he said. “Today we’ve taken another big step toward modernization. We continue to look forward to its successful conclusion.”

Joint Dairy Organization Statement on Highly Pathogenic Avian Influenza in Cows

Posted on by Theresa Sweeney

Statement from the National Milk Producers Federation (NMPF), the International Dairy Foods Association (IDFA), the U.S. Dairy Export Council (USDEC), and Dairy Management Inc. (DMI)

Earlier today, the U.S. Department of Agriculture confirmed highly pathogenic avian influenza (HPAI) in two dairy cattle herds in Texas and two herds in Kansas.

Importantly, USDA confirmed that there is no threat to human health and milk and dairy products remain safe to consume. Pasteurization (high heat treatment) kills harmful microbes and pathogens in milk, including the influenza virus.

Also, routine testing and well-established protocols for U.S. dairy will continue to ensure that only safe milk enters the food supply. In keeping with the federal Grade “A” Pasteurized Milk Ordinance (PMO), milk from sick cows must be collected separately and is not allowed to enter the food supply chain. This means affected dairy cows are segregated, as is normal practice with any animal health concern, and their milk does not enter the food supply.

Consumers in the United States and around the world can remain confident in the safety and quality of U.S. dairy.

Enhanced Biosecurity Protocols Underway on U.S. Dairy Farms

As information related to an illness affecting dairy cows in several states began to circulate over the past two weeks, USDA’s Animal and Plant Health Inspection Service (APHIS) worked with state veterinary authorities as well as federal partners including the FDA to swiftly identify and respond to detections and mitigate the virus’ impact on U.S. dairy production. Dairy farmers also have begun implementing enhanced biosecurity protocols on their farms, limiting the amount of traffic into and out of their properties and restricting visits to employees and essential personnel. Avian influenza is an animal health issue, not a human health concern. Importantly, mammals including cows do not spread avian influenza—it requires birds as the vector of transmission and it’s extremely rare for the virus to affect humans because most people will never have direct and prolonged contact with an infected bird, especially on a dairy farm. As a precaution, dairy farmers are taking important measures to protect their workers.

The National Dairy FARM Program (NDFP) offers several valuable biosecurity resources providing dairy farmers with tools to keep their cattle and dairy businesses safe, including:

Biosecurity practices guidance is available here.

Dairy farmers who observe clinical signs in their herd consistent with this outbreak, such as a significant loss of animal appetite and rumination or an acute drop in milk production, should immediately contact their veterinarian. Veterinarians who observe these clinical signs and have ruled out other diagnoses on a client’s farm should contact the state veterinarian and plan to submit a complete set of samples to be tested at a diagnostic laboratory.

What is Pasteurization?

Pasteurization is a process that kills harmful bacteria and pathogens, including viruses, by heating milk to a specific temperature for a set period of time. The processing of milk products involves pasteurization of the raw milk to a minimum of 161.5˚F for 15 seconds and then immediately cooling it. Ultra pasteurization is a process that heats milk at a higher temperature for specified times to extend a product’s shelf life.

What is Avian Influenza?

Detections of avian influenza in birds, including chickens, are common in the United States in the spring and fall due to wild birds spreading the virus as they migrate to and from their seasonal homes. While it is uncommon for Highly Pathogenic Avian Influenza to affect dairy cows, USDA APHIS has been tracking detections of HPAI in mammals for many years in the United States, leading dairy farmers and veterinarians in the United States to prepare for this eventuality. As a result, dairy farmers have taken immediate measures to enhance biosecurity measures in and around dairy farms to keep the food supply safe.

About the Illness in Cows

Dairy producers with affected cows are reporting a rapid onset illness in herds, specifically among older, lactating cows. Clinical signs include:

  • Decreased herd level milk production
  • Acute sudden drop in production
  • Decrease in feed consumption
  • Abnormal feces and some fever
  • Older cows may be more likely to be severely impacted than younger cows

According to dairy farmers and veterinarians reporting on affected herds, most affected cows recover within two to three weeks.

Information for Affected Producers

Producers who believe dairy cattle within their herd are showing the clinical signs described above should report these signs immediately to state veterinarians. Animals may also be reported to APHIS’ toll-free number at 1-866-536-7593.

Trade and Exports

The U.S. dairy industry will continue to work with the U.S. federal government, trading partners and the World Organization for Animal Health (WOAH) to encourage adherence to WOAH standards and minimize all unnecessary or unfair trade impacts. It is essential that trading partners do not impose bans or restrictions on the international trade of dairy commodities in response to these and future notifications and rely on the science-based food safety steps taken in U.S. dairy processing, namely pasteurization, in preserving market access.

Additional Information

  • To provide context on the overall size of the U.S. dairy herd, there are more 9.3 million dairy cows in the United States.
  • S. dairy export value was $8.11 billion in 2023, the second largest value on record.

NMPF Testifies on Common Names

Posted on by Theresa Sweeney

NMPF Executive Vice President for Policy Development & Strategy Jaime Castaneda testified on the need for greater action from the U.S. government to proactively negotiate common names protections with trading partners, during a Feb. 21 hearing hosted by the U.S. Trade Representative’s (USTR) office.

The hearing highlighted the agency’s annual Special 301 process, which seeks to identify intellectual property trade abuses around the world and set up USTR’s IP priorities for the following year.

NMPF and USDEC submitted joint comments in January that complemented a more comprehensive submission from the Consortium for Common Food Names. All three organizations emphasized the urgency of the issue and highlighted the damage done to American cheesemakers when they are not allowed to use the generic terms that consumers have known and loved for generations.

NMPF Letters Urge New Market Access

Posted on by Theresa Sweeney

NMPF helped coordinate a pair of letters in February urging policymakers to prioritize new market access, as U.S. agriculture continues to lag behind competitors in the global economy.

NMPF, USDEC and other agricultural organizations signed a Feb. 15 letter to Congress that detailed how the lack of new market access is threatening food and agriculture industry profitability. The letter called for Congress to work with and press the current and future Administrations to open more doors for U.S. agriculture exports.

Meanwhile, the newly launched Ag Trade Caucus, created by Farmers for Free Trade with support from NMPF, sent a Feb. 20 letter to U.S. Trade Representative Ambassador Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack, urging the administration to continue to pursue agreements that address the trade barriers that are most harmful to U.S. dairy.

FARM Program Launches New Look, Features for Database

Posted on by Theresa Sweeney

The FARM Program launched a new user interface for its database Feb. 20.

The FARM database is used by FARM Program evaluators and participant managers to conduct evaluations and track farm progress over time within the FARM Program Areas. The new database features allow FARM Program evaluators and managers to navigate dashboards more easily as well as manage certifications, farm data and action plans. A new search feature with enhanced filtering options streamlines users’ ability to find information.

FARM will host Zoom demo sessions for evaluators and managers to walk through the new site navigation and have their questions answered in real-time. FARM database users can access the database with their existing login credentials.

NMPF Represents U.S. Dairy at WTO Ministerial

Posted on by Theresa Sweeney

NMPF Executive Vice President for Policy Development & Strategy Jaime Castaneda and Trade Policy Director Tony Rice advocated for U.S. dairy in Abu Dhabi, capital of the United Arab Emirates, Feb. 26-29, seeking improved market access and pro-dairy policies at the World Trade Organization Ministerial.

As a recognized non-government representative at the Ministerial, NMPF joined the U.S. Coalition for WTO Reform to advise U.S. government negotiators throughout the meeting, meet with the WTO Secretariat and likeminded delegations, and raise the profile of U.S. agricultural trade priorities.

Important issues at stake include:

  • Negotiations to reform the dispute settlement system.
  • The establishment of a work plan on agriculture that includes market access as a priority.
  • Pushing back against attempts to weaken WTO agricultural rules related to public stockholding subsidies and special safeguard mechanisms that would distort trade.

Castaneda also spoke at a U.S. Chamber of Commerce organized event on the importance of WTO dispute settlement reform and highlighted the outcomes that U.S. agriculture is prioritizing at the ministerial. Castaneda and Rice also met with U.S. Dairy Export Council international staff to receive the latest updates on barriers to trade in the Middle East and North Africa regions.

Ag Groups Oppose Proposed Rodenticide Policy Changes

Posted on by Theresa Sweeney

NMPF and other agriculture groups submitted comments to EPA on Feb. 13 strongly opposing any policy in the “Draft Biological Evaluation for the Rodenticides and the Rodenticide Strategy” that involves making rodenticides restricted-use products.

NMPF and the agriculture groups strongly supported enhancing rodenticide stewardship to mitigate risks to non-target species while raising concerns about the effectiveness of EPA’s proposed strategy.

“We are deeply concerned that assumptions made and errors in the Agency’s analysis do not support the Agency’s finding that the rodenticides are likely to adversely affect even a single individual plant or animal,” the groups said in their comments.

The groups cautioned against designating rodenticide products as restricted-use items and warned of potential hazards on farms and ranches. The comments also emphasized the critical importance of maintaining effective and affordable rodent control measures to safeguard animal welfare and food safety while preventing substantial environmental and financial losses in grain and feed.

NMPF, alongside other farm groups including the American Farm Bureau Federation and the National Pork Producers Council, emphasized EPA’s need to collaborate with rodenticide manufacturers and agricultural stakeholders to conduct comprehensive studies on how specific uses of rodenticides and potential pathways of exposure could adversely impact endangered species.

NMPF has actively participated in this issue for several years alongside fellow agriculture groups opposing the proposed rodenticide ban.

NMPF Against Emissions Reporting for Manure under EPCRA

Posted on by Theresa Sweeney

NMPF filed its own comments Feb. 13 and joined with other agriculture groups in coalition comments to EPA’s Advanced Notice of Proposed Rulemaking weighing in on the reporting of air emissions from manure under the Emergency Planning and Community Right-to-Know Act (EPCRA).

Both sets of comments assert that Congress, the emergency response community, animal agriculture groups and the Coast Guard think that reporting air emissions from manure under a statute designed to address serious, life-threatening chemical spills is ill-advised and unnecessary. NMPF also said reporting would invade farmers’ privacy and put them at risk of being targeted by activist groups such as the Animal Liberation Front, which has been labeled a terrorist organization by the FBI.

Air emissions reporting under EPCRA has been an ongoing battle. NMPF and other agriculture groups were able to quash the notion that ammonia and hydrogen sulfide from manure were reportable under EPCRA and the Comprehensive Environmental Response, Compensation, and Liability Act through a legislative fix in 2018 and a regulatory fix in 2019.

In January 2021, the Biden Administration issued an Executive Order instructing EPA to review and rethink its regulations. Later that same year, EPA requested a court, where legal action was ongoing, to send the rule back for review without nullifying it so the rule would remain in effect while undergoing review.

The agency’s plan to revoke the exemption it granted in 2019 was abandoned after pushback from NMPF and other agriculture groups. NMPF is cautiously optimistic that the common-sense exemption will be retained. On Feb. 14, Representatives Nick Langworthy, R-NY, and Jim Costa, D-CA, led a letter signed by 44 of their colleagues urging EPA to retain the current exemption.

CWT Task Force Explores Program’s Future

Posted on by Theresa Sweeney

NMPF’s task force of farmers and cooperative leaders met several times in recent weeks to consider a range of ideas as the program faces renewal this year.  The task force, formed earlier this year to consider how the CWT export assistance program should evolve in the future to better meet the needs of its members, is generating ideas to present a series of potential extensions of CWT’s current operations to the NMPF Board of Directors for consideration and approval.

Ideas discussed so far include support to develop new products in new markets, expand the range of products exported and sold in overseas markets, and improve the shipping and logistics capabilities needed to export U.S. dairy products.  The task force will continue to meet virtually in the spring to flesh out concepts and propose detailed proposals to the NMPF Board.

CWT February Committed Product Volume