Author: Theresa Sweeney

NMPF Urges Farmers to Consider Federal Risk Management Tools as USDA Announces DMC Signup

Posted on by Theresa Sweeney

Milk Loss Disaster Program in Works

With rising costs eroding dairy margins despite high farm milk prices, the National Milk Producers Federation (NMPF) is urging farmers to sign up for maximum 2023 coverage under USDA’s Dairy Margin Coverage (DMC) program, an important component of federal dairy risk-management programs supported by NMPF.

USDA has announced that DMC signup begins today, with a deadline of Dec. 7. Despite record prices this year, accompanying record costs resulted in DMC payments for August for farmers enrolled at the maximum coverage level.

“The current combination of high prices with costs that can be even higher illustrates the basic value of DMC for producers who can benefit from the program,” said Jim Mulhern, president and CEO of NMPF. “By calculating assistance via a margin rather than a target price, DMC offers a measure of protection against the current cost volatility that’s challenging many milk producers.”

Farmers should also consider signing up for federally backed risk-management programs appropriate to their operations, Mulhern said.

DMC is designed to promote stable revenues and protect against financial catastrophe for small and medium-sized producers. It’s part of a suite of federally backed risk-management tools, including the Dairy Revenue Protection (DRP) program and the Livestock Gross Margin for Dairy Producers (LGM-Dairy) program, which were revamped in the 2018 Farm Bill at NMPF’s urging.

DMC resulted from NMPF’s effort to improve inadequate federal margin-protection insurance. LGM-Dairy and DRP were made workable via NMPF’s efforts to remove spending caps and a ban on enrollment in multiple programs, which previously limited their usefulness.

Mulhern also reminded eligible farmers who did not sign up for supplemental DMC coverage in 2022 based on updated production levels that they have another opportunity to do so this year.

NMPF also reminds producers that USDA is developing a separate milk loss program, as provided for in legislation enacted last year. This program will reimburse dairy producers of all sizes for milk dumped on account of disasters that occurred in 2020 and 2021, including, but not limited to, derechos, excessive heat, winter storms including polar vortexes, droughts, hurricanes, and wildfires. NMPF is working with USDA as it develops the initiative.

Krause Holsteins Spreads Dairy Message Far and Wide

Posted on by Theresa Sweeney

Charles Krause doesn’t have to talk to groups of schoolchildren. Or host dairy farmers from New Zealand. Or speak at a Farm Bill listening session. Or feature his family on a video shown at local gas stations.

But it helps dairy. The Dairy Farmers of America producer, who owns a roughly 300-cow, fifth-generation farm outside Buffalo, MN, that he operates with his son, Andrew, sees telling dairy’s story as part of his responsibility to the industry and his fellow farmers. Connecting with consumers and non-farm stakeholders is critical for dairy’s future, he said.

“I wouldn’t say I’m all that different than anyone else, I’m just willing to take a little bit of extra time out of my day to do those things and tell my story,” he said. “Whether it’s a conversation one-to-one, one-to-few, or one-to-many, everyone can play a role, whether it’s talking to someone at a grocery store, or talking to a group at church or getting on social media and taking a stab at it that way.”

In the latest Farmer Focus, Krause, who last year became NMPF’s first Farmer Communicator of the Year, shares his motivation for bringing dairy’s story to broader audiences, and the importance of continuing to connect with the consumer.

For more Farmer Focus stories, co-sponsored by NMPF and the FARM Program, check out NMPF’s Sharing Our Story page, which also includes its Dairy Defined thought-leadership series and CEO’s Corner, a monthly column from NMPF President and CEO Jim Mulhern.

View the Farmer Focus Profile

NMPF and USDEC Discuss Recent Shipping Challenges with FMC Chairman Maffei

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) met with Federal Maritime Commission (FMC) Chairman Daniel Maffei today to discuss the implementation of the Ocean Shipping Reform Act and ongoing shipping challenges. Several dairy company executives from a working group addressing export supply-chain issues joined NMPF and USDEC.

Exports play a significant role in the success of American dairy farms and manufacturing facilities. Currently, the milk from one in six tankers leaving U.S. farms ends up abroad in the form of exported milk powder, cheese and other dairy products.

USDEC and NMPF members have made it clear that exporters are still encountering high costs, fees, and unreliable scheduling. Collaboration between the agricultural industry and federal agencies such as the FMC is crucial to building a supply chain that works for American suppliers and consumers around the world.

“We have an excellent opportunity to bring American dairy products to many more markets around the world now and in the coming years,” stated Jim Mulhern, president and CEO of NMPF. “To do that, we will need better service from the entire ocean freight system. We’re confident in Chairman Maffei’s leadership of the FMC and value the agency’s critical role in ensuring that international shipping is a two-way street, not merely a superhighway for imported goods.”

“We appreciate Chairman Maffei for his leadership, and for taking the time to discuss recent shipping challenges,” said Krysta Harden, president and CEO of USDEC. “This is a tumultuous time in ocean shipping, but we’re confident that there’s more we can do together to ease the burden that the dairy sector is facing.”

Hall of Famer Stammer Says Cooperatives as Valuable as Ever

Posted on by Theresa Sweeney

To celebrate National Cooperative Month (and the centennial of the Capper-Volstead Act that underpins farm cooperatives to this day), Cooperative Hall of Fame Member Rich Stammer, former CEO of Agri-Mark, says the values of cooperatives remain important as new challenges to dairy farmers emerge.

“As more and more people moved away from the farm, didn’t know anything about farming, co-ops have played a bigger role in informing consumers about dairy and farmers and what they do,” he said. “We have attacks from animal rights groups. Dairy farmers take great care of their animals, but getting that message out to consumers with all the negative things that come down, is an important role of co-ops. We have a program, our FARM program, basically to ensure animals are treated right, to have a measurable way of animal care, and to get that message out to consumers about how well we care for our animals.

“You have more and more challenges on the environmental side of our business. And dairy co-ops have become very involved in sustainability efforts, and again, showing how sustainable dairy farms are and how we take care of our land. We are much more involved in getting messages out to consumers, representing farmers and environmental laws, and there’s so many areas,” he said.

For more about the value cooperatives provide, NMPF has a page here. The full podcast is below. You can also find the podcast on Apple Podcasts, Spotify, Google Podcasts and Amazon Music. A transcript is linked below. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

September CWT-Assisted Dairy Export Sales Totaled 12.2 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 62 contracts in September, adding 11 million pounds of American-type cheeses, 198,000 pounds of butter and 403,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 113 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, Middle East-North Africa, South America and Oceania and will be shipped from September 2022 through March 2023.

CWT-assisted 2022 dairy product sales contracts year-to-date total 81.1 million pounds of American-type cheese, 657,000 pounds of butter, 7.5 million pounds of cream cheese and 30.3 million pounds of whole milk powder. This brings the total milk equivalent for the year to 1.044 billion pounds on a milkfat basis.

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 Presses for a U.S. Chief Ag Negotiator

Posted on by Theresa Sweeney

NMPF joined with USDEC and the Corn Refiners Association to spearhead a Sept. 20 letter from 105 agricultural organizations and companies urging immediate Senate action to install Doug McKalip as the Chief U.S. Agricultural Negotiator.

As the Administration forges ahead with new, albeit limited, trade discussions on the Indo-Pacific Economic Framework and with Taiwan, the United States has been left without a confirmed Agricultural Ambassador at the Office of the U.S. Trade Representative. The letter to Senate Leaders Schumer (D-NY) and McConnell (R-KY) highlights McKalip’s long track record as an advocate for free trade, noting that he “would bring to the position decades of experience representing the interest of U.S. agriculture, having served in numerous leadership positions at USDA and the White House.”

Following a bipartisan 27-0 vote to move McKalip’s nomination forward during a Senate Finance Committee executive session Sept. 7, the process stalled due to a hold placed on McKalip’s nomination that prevented an immediate vote by the full Senate. NMPF continues to advocate to Congress that agriculture cannot afford further delays and must have a full seat at the table during the myriad of ongoing and planned trade conversations.

NMPF Active in Resolving Supply Chain Disruptions

Posted on by Theresa Sweeney

NMPF and USDEC ramped up outreach efforts to Congress and the administration last month on the need to improve freight transportation services to prevent significant economic difficulties and ensure that American farmers can continue to feed the world.

In detailed comments to the Federal Maritime Commission (FMC) submitted on Sept. 14, NMPF and USDEC asked the agency to declare the current cargo congestion and inadequate oceans freight transportation service an emergency situation.

The comments emphasized results from a survey of NMPF and USDEC members which noted ongoing problems in export shipping despite the implementation of key provisions of the Ocean Shipping Reform Act this summer. For instance, 65 percent of survey respondents indicated that unreasonable detention and demurrage fees continue to be a challenge; more than half have had recent experiences with cancelled sailings; and a massive 92 percent responded that they continue to experience cancelled or rolled vessel bookings.

Based on those survey results and additional reports of logistical issues elsewhere, NMPF and USDEC urged the FMC to require ocean carriers and terminal operators to provide to shippers, rail carriers and other parties advanced scheduling, storage and other information that would greatly improve on-time shipping. The Federation encouraged the FMC to update its metrics for determining emergency situations in the future.

Additionally, ahead of a rail labor agreement reported Sept. 15, NMPF met with the administration and signed onto a Sept. 8 letter to Congressional leadership urging federal action if negotiations failed to prevent a lockout or strike. Ensuring that rail access remains available to deliver input supplies to dairy farms and finished products from plant to port has been a critical NMPF priority over the past few months.

NMPF will continue to press Congress and the administration, as well as private sector actors, to help address the lingering challenges in the dairy export supply chain.

Certification Affirms Dairy’s Commitment to Highest Standards of Animal Welfare, Again

Posted on by Theresa Sweeney

The Professional Animal Auditor Certification Organization (PAACO) recertified the FARM Animal Care Program as an approved animal welfare evaluation on Sept. 1. PAACO provides training and certification credentials for animal welfare auditors and audits for all sectors of food animal production.

“Over 99 percent of the U.S. milk supply comes from dairy farms that participate in the FARM Animal Care program,” said Emily Yeiser Stepp, vice president of the FARM Program. “PAACO’s certification affirms that American dairy farmers remain committed to the highest standards of animal welfare and provides assurances of this commitment to the entire dairy supply chain.”

To receive PACCO certification, the FARM Program went through a thorough review process of its Animal Care Version 4 standards, resources and evaluator training materials as compared to standards set by the PAACO Board of Directors. The review ensured that the FARM Program evaluation includes all the key components required for evaluation of livestock animal welfare and is committed to continuous improvement.  “The FARM Program has been awarded recertification of its audit instrument by PAACO and we commend them for their commitment to continuous improvement,” said PAACO Executive Director Collette Kaster.

PAACO was developed in 2004 in response to the growing use of animal welfare audits by the retail and food service sectors. This created the need for training, certification, and continuing education. Since its creation, PAACO’s vision is to be the trusted authority on animal welfare auditing, providing consistency and science-based training of auditors as well as rigorous, science-based audit standards. This is the second year in a row that FARM Animal Care has received PAACO certification.

FARM Program Seeks Comments for Animal Care Version 5 Revisions

Posted on by Theresa Sweeney

The National Dairy Farmers Assuring Responsible Management (FARM) Program launched its open comment survey Sept. 12 for the FARM Animal Care Program’s drafted Version 5 standards updates. All dairy industry stakeholders (farmers, allied industry, customers, etc.) are invited to provide comments, feedback and concerns related to the proposed revised standards until Oct. 28.

Click here to view the proposed standard updates and provide comments.

The FARM Animal Care Program standards are revised every three years to reflect the most current science and best management practices within the dairy industry. Standards, rationale, and accountability measures are reviewed and revised by the FARM Animal Care Task Force and NMPF Animal Health and Well-Being Committee, with input from industry stakeholder groups including farmers, animal scientists, veterinarians and allied industry. The NMPF Board of Directors provides final approval on version standards.

FARM Animal Care Version 5 is currently under development and, once approved, will take effect July 1, 2024, for a three-year cycle.

NMPF Annual Meeting to Focus on Keys to Dairy’s Future

Posted on by Theresa Sweeney

The 2022 NMPF Annual Meeting will be held Oct. 23-26 at the Gaylord Rockies resort outside of Denver, addressing trends that will determine the dairy industry’s future direction. This year’s program focuses on areas where NMPF works with checkoff organizations to advance dairy farmer interests, including environmental sustainability, creating new markets for exports, and expanding markets domestically for dairy foods. The schedule at a glance is here.

For the first time since 2019, the meeting will again feature a dairy bar with the latest and greatest offerings of food industry dairy partners. Attendees will hear about the crucial 2022 elections from political analyst David Wasserman. In addition, the meeting will formally begin with a “Welcome to Colorado” reception for all attendees on Monday, Oct. 24, from 6-7:30 pm. The NMPF Young Cooperator program will feature a full day of programming for the next generation of dairy leaders who attend the meeting.

Questions about registration should be directed to Louise Kamali.

EPA Proposes to Add PFAS Chemicals to Superfund

Posted on by Theresa Sweeney

EPA’s proposal Sept. 6 to add two PFAS chemicals, PFOA and PFOS to Superfund as hazardous chemicals, comes over the repeated objections of NMPF and other agricultural organizations that have repeatedly argued against this approach. With a comment deadline for the rule due in November, NMPF is exploring what issues to raise and who  we may want to collaborate with to keep poorly thought-out regulations from harming dairy operations.

While PFAS is primarily a drinking water problem globally, thousands of U.S. agriculture operations are potentially contaminated with PFAS chemicals from military operations, biosolid land application or industrial activity, which could turn those agriculture operations into Superfund sites under this proposal.

One of the tenets of Superfund law is to make responsible parties pay to clean up the sites, which can be astronomically expensive. Superfund also automatically assumes that past and present owners are potentially responsible parties who will be liable for the cleanup costs. The legal process to navigate out of Superfund liability also can be time-consuming and costly. EPA has asserted that it will use enforcement discretion to keep farmers from being held liable, but NMPF believes that notion is highly flawed, as there are many ways to be brought into Superfund litigation, with EPA as one avenue.

EPA will take comments on the rule until Nov. 7; NMPF anticipates that the deadline will be extended.  NMPF will file comments that urge EPA to use other laws to address PFAS contamination and that EPA approach PFAS issues taking scientific research into consideration.

DMC Returns to Payments in August

Posted on by Theresa Sweeney

Falling milk prices and rising feed costs pushed margins in August under the federal Dairy Margin Coverage Program to levels that are triggering payments for the first time this year.

The August Dairy Margin Coverage margin was $8.08/cwt, down $1.84/cwt from July’s margin and generating a payment of $1.42/cwt for Tier 1 coverage at $9.50/cwt under DMC, the main federal payment program for dairy producers. The August U.S. average all-milk prices of $24.30/cwt was $1.40/cwt lower than the previous month; meanwhile, the DMC feed cost rose $0.44/cwt from the previous month to $16.22/cwt.

August’s milk-price drop was the third consecutive monthly after a streak of record high U.S. average milk prices that ended in May. Feed costs, meanwhile, reached a second straight monthly record in August. The three cost components of the feed formula have all generally contributed to its steady rise during the past ten months, but the price of corn was the main driver this spring, while soybean meal and premium alfalfa hay prices have taken over this lead role during the past two months.

Available forecasts currently indicate that small margin coverage payments may be generated for $9.50/cwt coverage during the remaining months of 2022. 17,776 dairy operations are currently enrolled in the Dairy Margin Coverage program. The decline in margins to payment-trigger levels, unexpected earlier in the year, underscores the affordability and value of DMC. The August payment alone would cover about three-quarters of the single-year annual premium for $9.50 Tier I coverage for an enrolled operation.