NMPF Comments Urge USDA to Elevate Dairy in Conservation Programs

NMPF submitted comments Dec. 21 to USDA’s Natural Resources Conservation Service urging it to prioritize critical opportunities for dairy as it implements new climate-smart conservation funding in the Inflation Reduction Act enacted in August.

In its letter, NMPF urged USDA to develop new initiatives focused on manure and feed management, both of which will help dairy farmers advance their sustainability leadership as the sector works to fulfill its voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050.

NMPF supported the Inflation Reduction Act’s $20 billion in landmark new funding for farm bill conservation programs.

“Dairy farmers seize environmental sustainability opportunities whenever possible,” said Jim Mulhern, president and CEO of NMPF. The funding increases “better position dairy farmers to effectively implement the dairy sector’s Net Zero Initiative and fulfill its 2050 environmental stewardship goals.”

USDA conservation programs offer important voluntary, incentive-based assistance to dairy farmers as they carry out multiple stewardship practices, but more can be done to emphasize systems and technologies that can yield meaningful environmental benefits for dairy producers. In its letter, NMPF urged USDA to “give priority to innovative approaches to manure and feed management, both of which are significant areas of opportunity for dairy producers as the industry strives to become GHG-neutral or better by 2050.”

NMPF’s submission recommended a new multi-pronged manure management initiative within the Environmental Quality Incentives Program, which received the largest share of the new funding provided in the Inflation Reduction Act. This initiative, if implemented, would focus on reducing methane emissions associated with manure handling and storage by targeting investments in waste separation and handling as well as methane digesters, which can capture as much as 80 percent of the methane from a waste stream. The initiative would also include a cap and flare component, emphasizing an approach better suited to those dairy operations that do not have the capacity for larger technologies like methane digesters.

NMPF also urged an enhanced focus on feed management to help dairy farmers augment their work to reduce enteric methane emissions, which can comprise as much as one-third of a dairy farm’s greenhouse gas footprint. NMPF’s recommendation included a focused effort to better educate NRCS staff on innovative new feed management strategies to increase the number of technical service providers that can work directly with producers on feed management plans.

NMPF will work closely with USDA as the department moves forward with implementation of this important new funding and will also partner with Congress in the upcoming farm bill to further target conservation programs toward meeting dairy’s environmental stewardship needs.

NMPF Helps Keep Trains (and Boats) Running

NMPF staff and allied organizations played critical roles in keeping transportation networks running in early December, as the prospect of a rail labor strike heightened concerns of an already strained supply chain completely derailing. To ensure that the rail service remained uninterrupted for dairy producers who rely on consistent rail movement both for sourcing feed and moving finished product, NMPF took member concerns to Capitol Hill.

Four rail labor unions voted in November to reject a tentative agreement arbitrated by the Biden Administration, authorizing a strike that could have begun as early as Dec. 9. To avoid a costly rail service shutdown, NMPF, the U.S. Dairy Export Council (USDEC) and allied groups pressed hard for congressional intervention via a series of letters and meetings. Congress passed legislation implementing the tentative agreement, with President Biden signing the law on Dec. 2 and averting a rail shutdown.

The rail efforts, while significant, were only one facet of NMPF’s recent supply chain efforts. NMPF and USDEC on Dec. 13 wrote to Federal Maritime Commission Secretary William Cody with feedback on the agency’s proposed rulemaking on detention and demurrage billing requirements for ocean-bound shipments.

The Ocean Shipping Reform Act of 2022, passed in June and championed by NMPF and USDEC, provided an important foundation in confronting abuses leveled by ocean carriers on dairy shippers. However, smart, balanced implementation is still needed to ensure that dairy exporters are fully protected against unfair fees, which cost significant resources to resolve.

In the letter to Secretary Cody, NMPF and USDEC recommended against allowing marine terminal operators to bill shippers directly, which could force shippers to resolve disputes with an unknown party, rather than with carriers – with whom they have an established relationship. NMPF also pushed for the FMC to require additional information on invoices, including how and by when a shipper would need to contest a charge, and to clarify the timeframes for when carriers could issue detention and demurrage charges.

NMPF Touts Dairy’s Sustainability Story to Head Off Trade Problems

NMPF executive vice president for policy development & strategy Jaime Castaneda highlighted U.S. dairy’s strong sustainability commitments in Brussels Dec. 5-7 while meeting with American and European agriculture stakeholders under the U.S.-EU Collaboration Platform on Agriculture, a position reinforced in U.S. meetings later in the month.

The collaboration, launched by U.S. Secretary of Agriculture Tom Vilsack and European Union Agriculture Commissioner Janusz Wojciechowski in November 2021, created a new forum for representatives from both the United States and the European Union to better collaborate and address common issues affecting agriculture, in key part to head off future trade conflicts.

Castaneda participated in the conference’s first panel. Castaneda also met with the Directorate-General (DG) Office for Health and Food Safety while in Europe to discuss the EU’s changing dairy import certificate requirements and the importance of smoothly implementing any new requirements. Following the conference, Castaneda joined the DG Office of Agriculture’s Unit Head and Deputy Director for the Americas to discuss ongoing trade issues, including the EU’s continued abuse of geographical indications to monopolize common cheese names around the world.

On Dec. 15, Shawna Morris, NMPF’s senior vice president for trade policy, joined Castaneda and Nick Gardner, senior vice president for sustainability and multilateral affairs with the U.S. Dairy Export Council to present to approximately two dozen European embassy officials on the progress U.S. dairy sector has made on sustainability in the past 15 years. Morris underscored the importance of a trade-friendly, incentive-based approach to new policies the EU is exploring in this space. The presentation also highlighted the sector’s goals and strategies and reinforced U.S. dairy’s reputation as a global trailblazer on climate and sustainability in agriculture.

No DMC payments again for November

The November DMC margin was $10.89/cwt, eighteen cents higher than the October margin, as costs fell faster than prices.

The U.S. average all-milk price dropped $0.30/cwt in November from a month earlier to $25.60/cwt, while the DMC November feed cost was $0.48/cwt lower than the prior month, driven mostly, in equal measure, by lower soybean meal and premium alfalfa hay prices.

Available forecasts currently project the DMC margin will fall below $9.50/cwt during the first three quarters of 2023.  Enrollment for both calendar year 2023 DMC and Supplemental DMC closes on Jan. 31.

Flurry of Ag Labor Reform Work Closes Out Congress

NMPF joined with other agricultural organizations and farmworker groups in one final concerted effort in December to enact agricultural labor reform by the end of 2022, an effort that ultimately stalled but may create a framework for future progress.

Since March 2021, Senators Michael Bennet (D-CO) and Mike Crapo (R-ID) had been working to negotiate a bipartisan agreement for a Senate ag labor reform bill that would build upon and improve the House-passed Farm Workforce Modernization Act. The two Senators had made progress toward a bipartisan compromise bill by December – an effort supported in a letter signed by more than 350 ag organizations sent Dec. 6 – but were unable to resolve all issues needed to introduce a bipartisan measure.

From those discussions, Senator Bennet used the points of agreement he had come to with Senator Crapo as the starting point for a Bennet-only ag labor reform bill. That bill, the Affordable and Secure Food Act, gained NMPF’s support by addressing dairy’s two overarching workforce needs – providing protection for current workers and their families, and providing dairy access to the H-2A program – in spite of other weaknesses in the bill, such as its cap on the number of year-round worker visas.

NMPF participated in Sen. Bennet’s press conference announcing the bill’s introduction Dec. 15, and NMPF’s Claudia Larson joined a panel discussion broadcast by Agri-Pulse which focused on ag labor reform and the Affordable and Secure Food Act. In addition to NMPF-targeted outreach to numerous Senate Republican offices, NMPF also continued working with the Agricultural Workforce Coalition – an umbrella organization representing farm groups – to send a clear message to Senate leadership that ag-labor reform is urgent and necessary.

Those efforts fell short. Ultimately, Sen. Bennet’s measure was not included in the government spending bill to which it needed to be attached so it could receive a Congressional vote in 2022. However, the reform efforts and public pressure built in the 117th Congress have left a nationwide impression on the urgent need for ag labor reform. These efforts have laid an important foundation for future work in DC, and NMPF will continue leading the charge to ensure dairy’s needs are represented in any future reforms.

U.S. Holding Canada Accountable for USMCA Violations

After a steady – and loud – drumbeat of NMPF and USDEC insistence that Canada must honor its dairy obligations in the U.S.-Mexico Canada Agreement (USMCA), the U.S. Trade Representative (USTR) announced Dec. 20 that it is filing a new request for dispute settlement consultations with Canada.

The move will expand the scope of a second USMCA dairy dispute to include additional elements necessary to ensure that Canada fully complies with its USMCA market-access obligations. Since the United States launched its initial USMCA dispute panel in May 2021, NMPF and USDEC have fully and vocally supported USTR and USDA in their dogged attempts to secure for American dairy producers the agreement’s full negotiated benefits.

For over a year, Canada has violated USMCA’s tariff-rate quotas (TRQs) provisions by reserving most of its preferential dairy TRQs for Canadian processors. Canada’s revised approach to TRQs, released in March 2022, still violated the agreement – prompting USTR to pursue a second USMCA enforcement action.

While NMPF is grateful for USTR’s meticulous work that has led to this new announcement, Canada has a long history of restricting trade and not honoring existing agreements. NMPF and USDEC will push for retaliatory measures that make Canadian officials reconsider their actions should that continue.

NMPF Lauds Bipartisan Ag Climate Measures in Appropriations Package

NMPF members gained support for their agriculture-leading sustainability efforts in the massive spending bill signed into law Dec. 29, as lawmakers included the Growing Climate Solutions Act and the SUSTAINS Act in its final fiscal year 2023 budget package.

The measures will help dairy farmers seek additional sustainability opportunities as they work to fulfill the dairy sector’s voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050.

“Environmental markets and conservation programs have the potential to meaningfully assist dairy producers as they work to meet their 2050 environmental stewardship goals,” said NMPF president and CEO Jim Mulhern in a statement. “The Growing Climate Solutions Act and the SUSTAINS Act will strengthen these important tools.”

The Growing Climate Solutions Act, authored by Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, and Senator Mike Braun, R-IN, passed the Senate last June on a bipartisan vote of 92-8. The legislation enables USDA to register technical service providers that help farmers implement stewardship practices that can generate credits on environmental markets. Producers then will be better positioned to participate in these important markets. Reps. Abigail Spanberger, D-VA, and Don Bacon, R-NE, introduced companion legislation in the House.

The SUSTAINS Act, led by House Agriculture Committee Chairman-elect Glenn ‘GT’ Thompson, R-PA, passed the House Agriculture Committee in May on a bipartisan voice vote. The measure would allow private sector funds to supplement existing funding for farm bill conservation programs, which are continuously oversubscribed. The bill is an innovative approach to boosting funding for USDA conservation programs, which provide important technical assistance to dairy farmers for a variety of stewardship practices.

In addition to the sponsors of both bills, committee leaders Rep. David Scott, D-GA, and Sen. John Boozman, R-AR, also played important roles in finalizing the bipartisan package.

“We commend the leaders of the Agriculture Committees – Senators Debbie Stabenow and John Boozman and Reps. David Scott and GT Thompson – for working together to fashion this bipartisan agreement on agricultural climate legislation,” Mulhern said. “We look forward to working with them and their colleagues to build on this progress in the new year.”

WOTUS Rule Disappoints Dairy, NMPF Calls for Action

Yet another iteration of federal rulemaking guiding regulation of Waters of the U.S., released Dec. 30, drew criticism from NMPF and numerous agricultural groups for adding unnecessary confusion for farmers.

“NMPF is disappointed that once again dairy farmers, who every day strive to be leaders in environmental stewardship, may need to live under a WOTUS rule that is cumbersome, unclear and overly complicated,” NMPF said in a statement released Jan. 3. Because the EPA’s most recent iteration fails to resolve what is now a 50-year struggle to define what constitutes a water body subject to federal regulation under the Clean Water Act, our members will face continued uncertainty as they attempt to comprehend and comply with unclear regulations.

NMPF, a supporter of the Navigable Waters Protection Rule that had previously guided WOTUS policy, noted that the new rule was not a complete retreat from that regulation. “EPA’s listed exemptions at least try to address some of agriculture’s concerns over lack of clarity,” NMPF said in the statement. “Even so, EPA is reintroducing considerable ambiguity in this version of the rule as it attempts to determine what is a ‘Water of the US’ as seen in the treatment of ditches, ephemeral streams and groundwater, all of which were largely categorically out under the NWPR. NMPF fully anticipates continued litigation as a result of this rule.

NMPF called for congressional action to break the back-and-forth that has created confusion and brought added costs to dairy producers.

“It’s now clear that four successive administrations of both political parties have been unable to resolve this matter in a way that satisfies the broad range of stakeholders and provides long-term regulatory certainty which is badly needed. “Depending on the outcome of the Sackett case this spring, it may be time for Congress to step in in a bipartisan manner to provide clarity regarding which bodies of water are under the jurisdiction of the Clean Water Act.”

2023 Promises Policy Progress

A Washington truism is that the period that occurs after an election cycle is complete, but the next one hasn’t yet overtaken everyone’s attention, is when policy gets done. That makes it important for this industry to push for significant progress in 2023, as the 118th Congress convenes and clear policy challenges lie ahead.

High on NMPF’s priorities is leading the way toward federal adoption of a modernized Federal Milk Marketing Order system for producers that promotes a stable industry and provides fairer, more-up-to-date pricing for the nutritious and necessary products dairy farmers and their cooperatives provide. We made tremendous progress on this issue in 2022, driving a consensus approach that gathered many of this industry’s smartest minds and, through more than 100 committee and task force meetings of NMPF Board members and producers, and marketing experts from our member cooperatives, from all regions of the country, arrived at a proposal unanimously endorsed at our annual meeting in October. That’s a lot.

But there’s much more required to bring these efforts to fruition – much, much more. NMPF’s proposal itself isn’t quite complete – an important part of the plan, recommendations on updates to the nation’s  Class I price surface, are expected this month. From there, we will seek a final endorsement that prepares the way for us to request a USDA federal order hearing. That also will require extensive preparation, as the national consensus we’ve built among NMPF members will then form the basis of a conversation in which the entire industry will participate.

We welcome that conversation, which undoubtedly will include some good and not-so-good ideas from multiple interests. But throughout that conversation – and the hearing, and ultimately a producer vote – it will be critical to transcend narrow self-interest and work in a spirit of good faith to ensure that FMMO modernization is truly in the best interests of all producers. NMPF has kept that goal throughout; by crafting the most thoroughly researched, discussed, vetted and voted-upon of all proposals, we are in a strong position to meet the leadership challenge that falls to us as the nation’s dairy producer organization. We look forward to meeting this challenge, which will benefit all of dairy for years to come.

At the same time the FMMO discussions advance, we will be very active in shaping the farm bill due later this year, along with engaging in other legislative opportunities (and challenges) that come dairy’s way.

The twice-a-decade reauthorization of federal farm and nutrition programs sets the rhythm of ag policy in Washington, but it’s also important to remember that, in the end, the 2023 Farm Bill is simply another vehicle for advancing better policy, and it’s far from the only one available. Unlike the previous two farm bills, in which dairy policy clearly required significant change, this time around the main farm bill dairy safety net and risk-management programs – the Dairy Margin Coverage Program created at NMPF’s insistence, and the Dairy Revenue Protection and Livestock Gross Margin programs, which NMPF’s efforts made workable for broad producer participation – need evolution more than revolution.

Let’s not forget that the Farm Bill has many components, including sections governing trade, conservation and other areas critical to agriculture, so we’ll make sure all our priorities in the bill are addressed while pursuing other legislative goals, which range from financial incentives that support dairy’s Net Zero vision to immigration programs that work for dairy, through any means possible.

FMMO modernization and the farm bill alone would be more than enough to fill one year of Washington policy work. But of course, these two items are only the beginning of a long list of what must get done, from other legislative initiatives to federal nutrition policy proposals to overcoming regulatory challenges to expanding overseas markets The Biden Administration needs to pick up the pace on new trade deals even as it aggressively enforces existing ones. Yet another iteration of EPA’s Waters of the U.S. rule – this one going the wrong direction for agriculture – requires a strong response. And of course, we’re still waiting for FDA to give its guidance on labeling of plant-based dairy imitators, eternally hoping the agency charged with enforcing accurate nutrition labeling does what’s right for consumers.

Each year in Washington represents a new beginning. Opportunities are plentiful, and opportunities go to those who seize them. We embrace the challenge and expect that, working with the community that moves dairy forward, we can achieve great policy progress in the year ahead.


President & CEO, NMPF

NMPF Statement on New WOTUS Rule

From NMPF President and CEO Jim Mulhern:

“NMPF is disappointed that once again dairy farmers, who every day strive to be leaders in environmental stewardship, may need to live under a WOTUS rule that is cumbersome, unclear and overly complicated. Because the EPA’s most recent iteration fails to resolve what is now a 50-year struggle to define what constitutes a water body subject to federal regulation under the Clean Water Act, our members will face continued uncertainty as they attempt to comprehend and comply with unclear regulations.

“NMPF was pleased with the Navigable Waters Protection Rule (NWPR) and disappointed when it was revoked. NMPF is also disappointed that EPA failed to listen to numerous agriculture stakeholders that called on the agency to stay rulemaking on a new WOTUS rule until the Supreme Court ruled on the Sackett case, expected this spring.

“It’s important to note that EPA’s latest iteration is not a complete return to the unworkable rule adopted in 2015. EPA’s listed exemptions at least try to address some of agriculture’s concerns over lack of clarity. Even so, EPA is reintroducing considerable ambiguity in this version of the rule as it attempts to determine what is a “Water of the US” as seen in the treatment of ditches, ephemeral streams and groundwater, all of which were largely categorically out under the NWPR. NMPF fully anticipates continued litigation as a result of this rule.

“It’s now clear that four successive administrations of both political parties have been unable to resolve this matter in a way that satisfies the broad range of stakeholders and provides long-term regulatory certainty which is badly needed. Depending on the outcome of the Sackett case this spring, it may be time for Congress to step in in a bipartisan manner to provide clarity regarding which bodies of water are under the jurisdiction of the Clean Water Act.”

CWT Assists with 5.9 Million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 23 offers of export assistance from CWT that helped them capture sales contracts for 5.8 million pounds (2,600 MT) of American-type cheese and 37,000 pounds (17 MT) of cream cheese. The product is going to customers in Asia, Central America and Oceania, and will be delivered from December through June 2023.

CWT-assisted member cooperative year-to-date export sales total 99.1 million pounds of American-type cheeses, 657,000 pounds of butter (82% milkfat), 30.7 million pounds of whole milk powder and 8.8 million pounds of cream cheese. The products are going to 21 countries in six regions. These sales are the equivalent of 1.223 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and cooperatives by fostering the competitiveness of US dairy products in the global marketplace and helping member cooperatives gain and maintain world market share for U.S dairy products. As a result, the program has helped significantly expand the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

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

NMPF Scholarship Supports Dairy’s Future

Holiday giving season is under way, and NMPF’s National Dairy Leadership Scholarship Program is a worthy beneficiary for anyone who cares about a better industry future, explains Nicole Ayache, who leads the program at NMPF, in the latest Dairy Defined podcast. The scholarship supports graduate students, enrolled in master’s or doctoral programs, who are actively pursuing dairy related fields of research that directly benefit milk marketing cooperatives and the U.S. dairy industry at large. To learn more about it or to donate, just go to NMPF’s home page, nmpf.org, and click on the blue bar.

“As we look at the last 10 years or so of recipients, all of those recipients have stayed within agriculture,” said Ayache, who also serves as NMPF’s vice president for environmental stewardship and sustainability and leads the FARM Program’s Environmental Stewardship initiative. “In research, academia, allied industry, whatever it might be, those individuals have stayed within agriculture, and the majority within dairy itself. So we do believe that the scholarships we are awarding are really fulfilling our goal, which is to support the future of dairy.”

The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.