Author: Theresa Sweeney

DMC Margin Drops Again in June

Posted on by Theresa Sweeney

The June margin under the Dairy Margin Coverage program dropped 65 cents from May’s margin to $6.24/cwt, which will generate a June payment of $3.26/cwt for $9.50/cwt coverage. The DMC feed cost calculation for June was lower by $0.16/cwt of milk from May, mostly on lower soybean meal prices, while the June U.S. average all-milk price took a larger than expected drop of $0.80/cwt from May, a return to April levels. The blended alfalfa hay price increased in June, for the ninth straight month.

The current futures-based price outlook indicates that the DMC margin will not rise much above $7.00/cwt through the summer and remain below $9.50/cwt through the end of 2021. USDA reported that estimated DMC payments for the 2021 program exceed $543 million as of July 26.

NMPF Board Member Testifies Before Congress on USMCA

Posted on by Theresa Sweeney

NMPF Board of Directors member and Idaho dairy producer Allan Huttema testified July 27 before the Senate Finance Committee on U.S.-Mexico-Canada Agreement implementation and the importance of subsequent enforcement for dairy provisions.

Huttema, who also serves as chair of the Darigold and Northwest Dairy Association boards, highlighted the need for close monitoring of USMCA trade partners’ implementation of the trade deal – including Canada’s dairy tariff rate quota allocations and milk protein exports, and Mexico’s integration of common cheese name protections and its troubling increase of unwarranted regulatory barriers. During his testimony, he also stressed the critical importance of building on the progress initiated with USMCA by pursuing additional agreements with key dairy markets such as the United Kingdom and various Asian markets.

“It has been a very long time since Congress passed a new free trade agreement, aside from USMCA for which we are very grateful,” Huttema said in his testimony. “Our industry needs new trade agreements with key export markets to counter our competitors, namely the EU and New Zealand. As our competition continues to ink new trade deals, the United States is increasingly left in the dust.”

NMPF worked closely with Huttema and Northwest Dairy Association/Darigold to help strongly spotlight the dairy industry’s priorities and concerns during the hearing. Seven committee members raised dairy issues throughout the hearing including robust comments of support in the opening remarks of the Committee’s Chairman and Ranking Member. The Senators’ comments spanned the gamut including Canada compliance concerns, Mexican nontariff barrier issues, broader market access goals, and common names threats.

“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”

House Agriculture-FDA Spending Bill Includes NMPF Priorities

Posted on by Theresa Sweeney

NMPF is pleased that the House’s version of the Fiscal Year 2022 Agriculture-FDA Appropriations bill (H.R. 4356) approved July 29 includes a number of policy provisions and funding levels of significance to dairy.

Importantly, the bill continues a critical provision NMPF secured in last year’s measure to continue to allow schools to serve low-fat flavored milk.  The continuation of this language helps to build momentum for NMPF’s work with Congress and USDA toward a long-term approach to keeping this option, likely as part of upcoming child nutrition reauthorization legislation.

H.R. 4356 funds two programs intended to boost dairy consumption and innovation.

  • It provides $3 million for the Healthy Fluid Milk Incentives Projects authorized in the 2018 Farm Bill to create pilot programs to increase milk consumption among households receiving support from the Supplemental Nutrition Assistance Program.
  • It allocates $25 million for the Dairy Business Innovation Initiatives program, which provides direct technical assistance and grants to dairy businesses to further the development, production, marketing, and distribution of dairy products.

The House bill also funds several other key programs for dairy and agriculture, providing $10 million for the USDA Farm and Ranch Stress Assistance Network aimed at connecting those working in agriculture to stress assistance and support programs, and $800 million for USDA’s ReConnect program which works to provide broadband service to eligible rural areas.

Finally, the accompanying committee report includes NMPF-led language intended to speed up approval and market delivery of animal feed additives that can reduce enteric methane emissions by 30 percent or more, a critical component of dairy’s Net Zero Initiative to become carbon neutral or better by 2050. While growing research demonstrates the effectiveness of these additives, current policy classifies them as drugs, slowing their entrance to the U.S. marketplace even though they move solely through the animal’s digestive tract. The House report language directs the Food and Drug Administration to seek solutions that would regulate these additives as foods, rather than drugs, speeding their approval and allowing dairy farmers to fully capture the potential of this innovative new practice.

NMPF looks forward to working with Congress to enact this measure into law before current government funding expires Sept. 30.

Elle Purrier St. Pierre Goes for Gold in Tokyo

Posted on by Theresa Sweeney

This week’s Dairy Defined is, admittedly, a re-run – but when the runner is an Olympic medal hopeful, additional mileage is appropriate.

Elinor “Elle” Purrier St. Pierre easily made it through her preliminary round of the women’s 1500m race earlier today (last night in the U.S.) in the Tokyo Olympics. She’s running in the semi-finals on Wednesday – with the finals on Friday.

Purrier St. Pierre grew up on a 40-cow operation in Vermont — and is currently living on one with her husband. She’s spent much of her training over the past year-and-a-half in Vermont, with the COVID-19 pandemic requiring a new approach to top-level preparation.

“I ironed out how to do it up here. I figured out that I needed to get the job done,” she said. “I bought a lot of my own equipment, and I found new places to run, and once I got settled in, I’m so happy that I have this home to come home to and train here. And I do feel very grounded here.”

Purrier St. Pierre also discussed how dairy has helped her own fitness, and how it’s a crucial part of an elite athlete’s diet. All this week, NMPF will be supporting her on social media and cheering her on in her races, which begin on Wednesday at 6 a.m. EDT and Friday at 8:50 a.m. EDT.

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

U.S. Dairy Welcomes Progress and U.S. Leadership in UN Food Systems Pre-Summit

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today commended U.S. leadership at the UN Food Systems Summit (UN FSS) Pre-Summit ministerial meeting in Rome. The Pre-Summit has generated dialogue on a multitude of ideas, proposals, and perspectives, some of which are not evidence-based or practical. Overall, however, there is strong global support for a process that raises the bar on sustainability ambitions – an area where U.S. dairy producers and processors are well positioned to shine. The organizations welcomed progress toward ensuring that agricultural innovation, science-based policies and sustainably produced animal-sourced foods remain at the center of healthy and sustainable food systems around the world.

NMPF and USDEC joined the U.S. delegation, led by U.S. Deputy Secretary of Agriculture Jewel Bronaugh, in supporting UN FSS outcomes that advance innovation and evidence-based approaches to increase agricultural productivity and reduce environmental impact. In the months leading up to the Pre-Summit, NMPF and USDEC highlighted to U.S. government officials U.S. dairy’s leading role in implementing sustainable food production practices including those that adapt to and build resilience to climate change by committing to reducing greenhouse gas emissions and sequestering carbon.

“U.S. dairy farmers are taking voluntary action to achieve carbon neutrality, optimize water use, and improve water quality, delivering dairy’s future today,” said Jim Mulhern, President and CEO of NMPF. “We are proud to champion nutrient-dense, sustainably produced U.S. dairy as a food security and environmental solution for the UN FSS and beyond.”

“It has never been more important for the world to adopt solutions like those implemented by U.S. dairy farmers and processors that leave a positive environmental footprint, nourishing people and the planet today and for future generations,” said Krysta Harden, President and CEO of USDEC. “We support the summit in its efforts to make global food systems more sustainable and offer the world a source of choice for responsibly produced, high quality, and nutritious dairy products.”

U.S. dairy farmers and processors lead across all three elements of sustainability defined by the UN Food and Agriculture Organization (FAO) – economic, social, and environmental. Two industrywide U.S. Dairy initiatives have been submitted to the UN FSS as game-changing solutions: (1) the Net Zero Initiative, through which U.S. dairy aims to become carbon neutral or better by 2050; and (2) the National Dairy Farmers Assuring Responsible Management (FARM) Program, as part of a One Health approach ensures that science-based stewardship informs on-farm, socially responsible principles for exceptional care of animals and the planet.

NMPF and USDEC will continue to engage actively in the Food Systems Summit, which next meets in September and contribute to efforts to accelerate achievement of global sustainable development goals.

Idaho Dairy Producer Testifies Before Congress on USMCA Enforcement Importance

Posted on by Theresa Sweeney

National Milk Producers Federation (NMPF) Executive Committee member Allan Huttema said USMCA enforcement is essential for the agreement to reach its potential for U.S. dairy farmers in testimony today at a U.S. Senate Finance Committee hearing on the impact of the U.S.-Mexico-Canada Agreement (USMCA) on U.S. dairy. Huttema operates an 800-cow dairy in Parma, Idaho and serves as chair of the Darigold and Northwest Dairy Association boards, both of which are NMPF and U.S. Dairy Export Council (USDEC) members.

“I thank Chairman Wyden and Ranking Member Crapo, my own senator, for extending me the opportunity to discuss the impact the USMCA has had on my farm and the thousands of other dairy farms throughout the country,” said Huttema. “Enforcement of trade agreements like USMCA is important to ensure we retain the ability to supply high-quality cheeses, milk powders and a variety of other dairy products to customers around the world.”

“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”

The $6.5 billion worth of U.S. dairy products exported each year underpins the economic health of dairy producers, processors, and manufacturers across the United States. American dairy exports create more than 85,000 direct jobs and have a nearly $12 billion economic impact. Whether it is Canada’s TRQ administration or Mexico’s array of new regulations intended to limit imports, NMPF and USDEC have urged the U.S. government to ensure the USMCA is fully enforced. Enforcement secures the access extended to U.S. dairy producers in the USMCA and sends a strong message to other U.S. trading partners that attempts to subvert trade obligations will not be tolerated.

“The U.S. Dairy Export Council appreciates the Senate Finance Committee and its members for hearing Allan’s testimony and answers regarding the importance of the USMCA and new trade opportunities to the U.S. dairy industry,” said Krysta Harden, President and CEO of USDEC. “USDEC agrees with Allan regarding the need to pursue greater market access opportunities for high-quality American dairy products that our international consumers demand. USMCA was an important step forward, but it’s not enough. We need new trade agreements to expand on Congress’ hard work in passing USMCA. The EU is filling the vacuum that American trade policy is leaving – an issue that Congress needs to address with additional market opportunities for U.S. exports. We appreciate Allan sharing his insight and concerns with the agreement’s implementation and its impact on dairy farmers, processors and manufacturers throughout the United States.”

Things to Keep in Mind as a Big Talk Begins

Posted on by Theresa Sweeney

Even though dairy farming is an every-day, 24-hour profession, it isn’t often that a specific day or a specific event makes much of a difference in how it’s done.

But this week is a little different. The United Nations is holding its preliminary round of official meetings in a Food Systems Summit that’s examining the very nature of farming itself and could lead to policy changes around the world in the name of producing healthy food more sustainably and responsibly. Unsurprisingly, anti-animal-agriculture activists out in full force, making claims about dairy and its environmental impact in an attempt to monopolize headlines and win hearts and minds, even though their claims don’t hold up to closer scrutiny.

That’s unfortunate, because U.S. dairy plays an essential role in advancing sustainable food systems, and that’s’ what the world needs to know. U.S. dairy farmers use 30 percent less water, 21 percent less land and have a 19 percent smaller carbon footprint, per gallon of milk, in 2017 versus 2007. That leadership in global sustainability is becoming only more crucial as the industry continues working to reduce its environmental impact even more, from its Net Zero Initiative to become carbon-neutral (or better) by 2050 (or earlier) to everyday, on-farm stewardship.

Providing adequate nutrition to the world is too important to let a distorted debate mislead consumers about the value of U.S. dairy products. So, in the spirit of an intelligent global discussion, a few things to keep in mind as the UN begins its Summit.

  • Global diets need foods produced at the highest level of nutritional and environmental standards. U.S. dairy, along with the nation’s entire agriculture sector and food supply chain, has significantly reduced its environmental impact in recent decades while reducing waste and increasing production. And dairy’s taken an extra step, through its FARM Program, to ensure that science-based stewardship informs on-farm principles for exceptional care of animals and the planet. A nutritious diet demands a diversity of food products; a sustainable diet is one where every type of agriculture plays a positive role.
  • Technological advances play an essential role in feeding the world more sustainably. Just like in medicine, food systems perform best when they include science, innovation, and technology. Modern farming and food-production practices advance sustainable food systems while efficiently meeting nutritional needs. From methane digesters to improved feed mixes, dairy is a leader in technological adoption for good.
  • There is no “one-size-fits-all” food system. Historical, cultural and personal considerations; diverse production and manufacturing systems; differing levels of economic and industrial development. They all mean that there is no one diet, one approach to farming, or one set of public policies that universally apply to global food production or consumption. U.S. dairy itself reflects this diversity, with large, small, conventional, organic and other types all co-existing – often in the form of cooperatives that themselves hold great promise as a model for agricultural development worldwide.
  • Rules matter in food systems as trade builds healthy diets. International trade improves food security and food safety worldwide. It increases the accessibility, availability, and affordability of food. But the food system needs rules that promote those goals to work best. U.S. dairy supports and promotes rules-based trade, whether it be fair and accountable trade agreements or common-sense approaches to naming cheese.

We hope the UN finds these thoughts helpful, and we stand ready to support science-based, practical ideas from the UN that work for farmers and consumers while making the food system better. Food systems are too important to fall prey to misinformation, and a global discussion should be robust and sincere. The dairy community is looking forward to being part of the Big Talk – and to continue its contribution to global solutions.

NMPF Statement on Senate Judiciary Hearing on Essential Immigrant Farmworkers

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“NMPF thanks the Senate Judiciary Committee and its chairman, Sen. Dick Durbin (D-IL) for holding today’s hearing highlighting the importance of immigrant farmworkers to our nation’s food supply and rural communities. We are also grateful to Linnea Kooistra, formerly an Illinois dairy farmer for over 40 years, for testifying at the hearing and giving voice to this critical issue for dairy.

“Immigrant employees are vital to the dairy industry, with an estimated 79% of the U.S. milk supply produced on farms that employ immigrant workers. Dairy farmers know firsthand of dedicated and skilled teams that are led by and include immigrants; most producers also can speak to the challenges farms and rural communities face due to uncertainty surrounding the farm workforce.

“That’s why NMPF has been a leader in agricultural workforce reform efforts that address two areas of reform that are essential to solve America’s ag labor crisis. First: We must provide an earned legal protection for our current workers and their families. Second: We must reform the agricultural guestworker visa program so dairy and other year-round industries can use it to supplement the domestic workforce when needed.

“Dairy farmers currently cannot use the H-2A guestworker program because they produce milk year-round. Providing an earned legal protection for current workers is crucial, but it narrowly addresses only one aspect of the crisis. We must also reform the ag labor system so dairy farmers can hire legal guestworkers and do not remain trapped in a still-broken ag labor system moving forward. Both features must be present in any real solution.

“NMPF again thanks the Senate Judiciary Committee for today’s hearing and urges the Senate to seize the present opportunity to craft its own ag workforce reform bill that both provides legal protections to our current workers and restructures H-2A. Do not miss this chance for a real solution that helps farmers and farmworkers and supports them as they continue their crucial work of feeding our nation and the world.”

Prospects for Policies Supporting Net-Zero Goals Looking Up, NMPF’s Bleiberg Says

Posted on by Theresa Sweeney

From incentives for carbon markets to new conservation initiatives, the policies that will support dairy’s Net Zero Initiative continue to take shape, says Paul Bleiberg, NMPF’s Senior Vice President for Government Relations, in a Dairy Defined podcast released today.

The Growing Climate Solutions Act, which passed the U.S. Senate by a 92-8 vote in June, “is very helpful to our overall efforts because environmental markets are a key tool in the toolbox of the Net Zero Initiative,” Bleiberg said. Meanwhile, an investment tax-credit bill for greenhouse-gas-reducing technologies “has started to make some real headway,” he said. And conservation programs built around climate-friendly agricultural practices “may be able to encompass some of the work that we’re doing and help us build on it.”

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

Dairy Farmers Welcome Ambassador Tai to Trade Forum Hosted by Rep. Kind

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today commended Representative Ron Kind (D-WI) and U.S. Trade Representative Ambassador Katherine Tai for hosting a trade forum at a Wisconsin dairy farm. Several dairy farmers had the opportunity to voice their concerns and priorities for dairy exports with Ambassador Tai and highlight the impact of trade policy on American dairy producers.

USDEC and NMPF members participating in the event emphasized the need for greater market access for dairy products and the impediments trade barriers pose to greater international trade. At the event, dairy farmers belonging to NMPF and USDEC members Associated Milk Producers, Inc., Dairy Farmers of America, FarmFirst, and Organic Valley, among others, praised Congressman Kind for his leadership as he continues to encourage the Biden Administration to work toward greater opportunities in international markets. The event was hosted by Hamburg Hills Farm, an Organic Valley member located in Stoddard, Wisconsin.

“On behalf of dairy producers and their cooperatives, NMPF thanks Congressman Kind for his ongoing advocacy in securing trade opportunities for dairy farmers in Wisconsin and nationwide. We’re grateful that Ambassador Tai and hardworking USTR staff are pursuing a dispute settlement case to finally secure Canadian market access granted under USMCA,” said Jim Mulhern, President and CEO of NMPF. “We look forward to working with Ambassador Tai, Representative Kind, and their staff to reduce foreign trade barriers through country-to-country dialogues and new trade agreements.”

“Obtaining and expanding market share abroad is critical to U.S. dairy manufacturers and exporters. The global dairy industry is more competitive than ever, so we greatly appreciate Congressman Kind hosting Ambassador Tai on a dairy to provide tangible examples of why the U.S. dairy value chain depends on international trade,” said Krysta Harden, President and CEO of USDEC. “We’re thrilled the ambassador could visit the farm to see for herself how America’s dairy farmers are producing for the global marketplace. We appreciate both of their personal efforts to ensure Canada meets its tariff-rate quota obligations under the U.S.-Mexico-Canada Agreement (USMCA).”

Dairy Farmers Spotlight Ag Labor Reform Needs in Roundtable with Vilsack, Delgado

Posted on by Theresa Sweeney

Dairy farmers are urging the government to address dairy’s acute labor shortages — and the need for the U.S. Senate to craft a counterpart to the House-passed bipartisan Farm Workforce Modernization Act – in meetings today with Agriculture Secretary Tom Vilsack and Rep. Antonio Delgado (D-NY), culminating in a roundtable discussion at SUNY-Cobleskill in Cobleskill, New York.

Vilsack and Delgado will talk with farmers and farmworkers to address the unworkability of current farm-labor policies. Dairy faces special challenges as a year-round, around-the-clock agricultural sector because the current rules of the H-2A guestworker visa program limits its use to only the temporary and seasonal labor needs of agricultural employers.

“Unfortunately, the Department of Labor hasn’t made available the current H-2A program for a commodity that ‘harvests’ its product multiple times a day, every day,” said Jim Mulhern, president and CEO of the National Milk Producers Federation in a statement before the event. “We commend USDA and Rep. Delgado for supporting ag labor reform legislation and organizing this important discussion.”

NMPF supports the Farm Workforce Modernization Act as a vehicle for additional policy improvements and to prod Senate legislation that can be reconciled into a final bill that can pass both houses of Congress. Delgado was an early cosponsor of the legislation, which passed the House of Representatives by a solid bipartisan margin in 2019 and again in March. To build momentum for a solution, Vilsack hosted a bipartisan roundtable last month with key Senate negotiators and agricultural stakeholders, including NMPF.

“Without Senate action, the hard-won progress lawmakers have made on ag-labor issues won’t bring the solutions farmers need,” he said. “We need this conversation to turn into action in congressional corridors so that farmers and farmworkers can benefit from a workable labor system.”