Dairy Farmers to Seek Emergency USDA Hearing on Class I Mover Reform

The National Milk Producers Federation’s Board of Directors voted today to request an emergency USDA hearing on a Federal Milk Marketing Order proposal to restore fairness for farmers in the Class I fluid milk price mover. The endorsement of the board, which represents dairy farmers and cooperatives nationwide, follows approval from the organization’s Executive Committee last week.

The NMPF plan would ensure that farmers recover lost revenue and establish more equitable distribution of risk among dairy farmers and processors. The current mover was adopted in the 2018 farm bill and intended to be revenue neutral while facilitating increased price risk management by fluid milk bottlers. But the new Class I mover contributed to disorderly marketing conditions last year during the height of the pandemic and cost dairy farmers over $725 million in lost income. NMPF’s proposal would help recoup the lost revenue and ensure that neither farmers nor processors are disproportionately harmed by future significant price disruptions.

“As the COVID-19 experience has shown, market stresses can shift the mover in ways that affect dairy farmers much more than processors. This was not the intent of the Class I mover formula negotiated within the industry,” said Randy Mooney, the dairy farmer chairman of NMPF’s Board of Directors. “The current mover was explicitly developed to be a revenue-neutral solution to the concerns of fluid milk processors about hedging their price risk, with equity among market participants a stated goal.

“Dairy farmers were pleased with the previous method of determining Class I prices and had no need to change it, but we tried to accommodate the concerns of fluid processors for better risk management. Unfortunately, the severe imbalances we’ve seen in the past year plainly show that a modified approach is necessary. We will urge USDA to adopt our plan to restore equity and create more orderly marketing conditions,” Mooney said.

While the current Class I mover was designed to improve the ability of fluid milk handlers to hedge milk prices using the futures market, it was also expected to be revenue-neutral compared to the formula it replaced. But that has not been the case. The significant gaps between Class III and IV prices that developed during the pandemic exposed dairy farmers to losses that were not experienced by processors, showing the need for a formula that better accounts for disorderly market conditions.

NMPF’s proposal would modify the current Class I mover, which adds $0.74/cwt to the monthly average of Classes III and IV, by adjusting this amount every two years based on conditions over the prior 24 months, with the current mover remaining the floor. NMPF’s request will be to limit the hearing specifically to proposed changes to the mover, after which USDA would have 30 days to issue an action plan that would determine whether USDA would act on an emergency basis​.

NMPF Supports Labeling Integrity Through DAIRY PRIDE Act

The National Milk Producers Federation (NMPF) commended Representatives Peter Welch (D-VT) and Mike Simpson (R-ID) and Senators Tammy Baldwin (D-WI) and James Risch (R-ID) today for reintroducing the DAIRY PRIDE Act, a bill that would bring clear, accurate labeling information for consumers and end harmful mislabeling of dairy foods by peddlers of plant-based products. The legislation requires the U.S. Food and Drug Administration (FDA) to enforce its own existing standards of identity on imitation dairy products after decades of inaction.

The DAIRY PRIDE Act directs FDA to follow its own rules and establish an agency approach for enforcement of existing dairy standards of identity.

“NMPF thanks Representatives Welch and Simpson and Senators Baldwin and Risch for reintroducing the bipartisan DAIRY PRIDE Act in both the House and Senate, yet one more example of their ongoing leadership working to ensure FDA does its job,” said Jim Mulhern, NMPF president and CEO. “FDA is responsible for the integrity and safety of our nation’s food, medicine, and medical devices, and it’s crucial that it enforce its own standards and requirements. Without enforcement, we are left open to the potential for questionable products, deceptive practices, and, in cases such as mislabeled plant-based products that masquerade as having nutritional benefits similar to dairy’s, negative effects to our health.”

Standards of identity legally define what constitutes a specific food or food product, requiring the food product to carry certain qualities. When enforced, these legal standards protect consumers by helping to ensure the integrity of their food. Standards also create a common understanding of what a food product is, helping consumers make informed choices.

FDA’s lack of enforcement of dairy standards of identity has led to consumer misunderstanding of the nutrients – or lack thereof – in imitation dairy products. An IPSOS survey conducted in 2018, for example, found that 73% of consumers surveyed believe that almond-based beverages have as much or more protein per serving than milk. In reality, milk has up to eight times as much protein. A follow-up survey found that roughly 50 percent of consumers mistakenly believe that the main ingredient in a plant-based beverage is the plant itself. Such drinks are actually mostly flavored water.

Medical groups including the American Academy of Pediatrics are voicing concerns over the harm this confusion is having on public health as misinformed consumers unintentionally choose less nutritious products for themselves and their families.

Congress has also shown a growing concern for FDA’s failure to enforce. In early 2020, the House held a hearing on the agency’s lack of enforcement. Then late last year Congress included in the report accompanying the FDA funding bill for FY 2021 a statement of concern and directive to FDA regarding enforcing dairy standards of identity.

“The reintroduction of the DAIRY PRIDE Act helps NMPF and consumers continue to move forward toward solving this critical public health and fairness issue,” Mulhern said.

More on NMPF’s efforts on this issue, including survey data and statements from medical professionals, can be found here.

NMPF Lauds Progress on Bipartisan Growing Climate Solutions Act, Welcomes Conservation Proposals

The National Milk Producers Federation today applauded bipartisan work that’s being done on legislation that would bolster the many conservation and environmental efforts dairy producers are leading as they continue their everyday stewardship of air, land, and water resources.

This week, Senator Mike Braun (R-IN) and Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) reintroduced their bipartisan Growing Climate Solutions Act. This important legislation creates a USDA certification program that would permit the Department to informally endorse technical service providers that can help farmers implement environmental stewardship practices that may generate carbon credits. The legislation, if passed, would be invaluable for dairy farmers seeking to achieve the sector’s goal to achieve carbon neutrality or better by 2050 through dairy’s Net Zero Initiative.

“We commend Chairwoman Stabenow and Senator Braun for continuing their bipartisan leadership on the Growing Climate Solutions Act, which would encourage greater farmer participation in environmental markets,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “This legislation will enhance the proactive, sustainable initiatives dairy farmers are expanding as our sector strives to achieve carbon neutrality.”

The Senate Agriculture, Nutrition, and Forestry Committee held a hearing on the Growing Climate Solutions Act last June. NMPF submitted written testimony in support of the measure on behalf of Mulhern and Environmental Issues Committee Chair Mike McCloskey.

NMPF additionally commended the efforts of House Agriculture Committee Ranking Member Glenn ‘GT’ Thompson (R-PA), who last Friday put forward several measures to adapt farm bill conservation programs to help address climate change by: allowing private sector funding to meet conservation program demand; emphasizing soil health and increasing funding for Conservation Innovation Trials; and incentivizing the adoption of precision agriculture systems.

“We thank Ranking Member Thompson for furthering the conversation on climate and sustainability by putting forward several proposals for discussion,” said Mulhern. “We agree that farm bill conservation programs can be vital to helping producers reduce their environmental footprint, and we look forward to more closely examining this suite of legislation and other proposals that may be introduced in the coming weeks.”

Earth Day Highlights Dairy’s Everyday Leadership

Earth Day is just a few days away. And while it’s nice to have a day set aside to remember how everyone needs to care for, protect and, in some cases, restore our planet, please forgive dairy farmers if you don’t see much of a pause on Thursday.

That’s in part because dairy never stops. Dairy farmers produce a perishable product harvested around the clock, every day of the year. It’s also because dairy’s leadership in sustainable agriculture also happens every day. Promoting soil health, optimizing water use, improving water quality, and more, ensures dairy farmers can keep farming for generations to come.

Dairy farming is an inherently renewable cycle. Cows eat crops and byproducts that humans can’t digest. They produce milk that nourishes people. And their manure provides nutrients to grow crops, which starts the cycle again. Dairy-farm livelihoods depend on healthy, vibrant ecosystems – and well-operated dairies of any size, in any region, enhance the ecosystems that surround them.

This is becoming even more true thanks to continued improvements in farming practices, as methods and technologies evolve and science better understands what works best. Dairy farms nationwide are adopting conservation tillage, diversifying their crop rotations, and cultivating cover crops to improve soil health. They’re adding precision feed management that improves cow health and achieves production efficiencies. And they’re innovating with manure management technologies that produce energy and reduce impacts on air and water quality.

All this, and more, helped reduce the amount of water required to produce a gallon of milk in 2017 by 30 percent compared to a decade earlier. That gallon also required 21 percent less land and a 19 percent smaller carbon footprint over the same period. That’s equivalent to the amount of carbon dioxide removed from the atmosphere by half a million acres of U.S. forest, or eliminating the average water consumption of approximately 29 million U.S. households. Since 2005, North America, where U.S. production dominates, has been the only region in the world that’s increased milk production while also reducing absolute emissions, according to the UN Food and Agriculture Organization.

On-farm sustainability reverberates across the dairy supply chain, forging a path toward ambitious industrywide goals.

  • The Net Zero Initiative, launched last year by the Innovation Center for U.S. Dairy, will help U.S. dairy farms of all sizes and geographies implement new technologies and adopt economically viable practices in feed production, cow care, energy efficiency and manure management, making progress toward greenhouse-gas emission reductions and improving water quality and quantity as well as farmer livelihoods.
  • In tandem, the U.S. Dairy Stewardship Commitment is a social responsibility pledge through which the U.S. dairy community demonstrates progress in areas including animal care, environmental stewardship, food safety and traceability, and contributions to communities. As of last December, 32 dairy companies representing 74 percent of the nation’s milk production voluntarily adopted the commitment, contributing to U.S. dairy’s ability to track, aggregate and report on progress.

Key to that tracking: The National Dairy FARM (Farmers Assuring Responsible Management) Program, which launched FARM Environmental Stewardship in 2017. This program provides dairy farmers, their cooperatives, and processors with a streamlined, single source for conducting voluntary on-farm environmental assessments and communicating progress. Today, 78 percent of the domestic U.S. milk supply comes from dairy cooperatives and processors who participate in the program.

Despite differences in geography, technology, and management style, dairy farmers are unified by a core concept: care for the planet that sustains them and their customers. In tangible, measurable ways, dairy farmers have much to celebrate on Earth Day.

Just don’t expect them to take a lot of time commemorating. There’s too much leading to do.

COVID-19 Vaccination & the Dairy Workforce

Dairy farmers and their cooperatives are an important part of a nationwide effort to promote vaccine confidence. This resource, adapted from the Health Action Alliance’s Small Business Guide to COVID-19 Vaccines and CDC’s Essential Workers COVID-19 Vaccine Toolkit, will help you communicate with employees about the safety and benefits of COVID-19 vaccines and help employees get vaccinated. A healthy dairy workforce is essential to ensuring continuity of operations and a safe, plentiful food supply.


Communicating with Employees

Employees need to know the benefits and safety of COVID-19 vaccines. The information below will help you share clear, accurate information to educate employees about COVID-19 vaccines and raise awareness about the benefits of vaccination.

Key Messages:

  • COVID-19 vaccines are safe and effective. Available COVID-19 vaccines have met the U.S. Food and Drug Administration’s rigorous scientific standards and are safe and effective.
  • Get vaccinated at your earliest opportunity. Although the vaccine supply remains limited, public health officials are working toward making vaccines widely available for everyone in the U.S. at no cost. Visit your state’s COVID-19 landing page to determine eligibility status.
  • It is okay to have questions. Share trusted information with employees so they can make informed decisions about vaccines. If you have questions, talk to a doctor or healthcare provider.

Options for Dairy Farmers:


Helping Employees Get Vaccinated

Once an employee has decided to get vaccinated, employers can help by removing barriers that may prevent them from doing so and by offering modest incentives to encourage vaccination. Below are some possible ways to support employees.

  • Help identify when and where workers can get vaccinated when it is their turn. The CDC has co-developed a VaccineFinder that can help you locate a vaccine site near you.
  • Offer internet access or language support services to help employees and workers schedule appointments.
  • Relieve any concerns about costs for vaccines. The federal government is providing vaccines free of charge to all people living in the U.S.
  • Provide paid time off to employees who get vaccinated. Many employers are offering between 4-6 paid hours for each dose of a vaccine an employee receives.
  • Provide transportation to and from vaccine appointments.
  • Partner with a local public health department or other providers to offer on-site vaccinations to employees.
  • Consider providing small prizes, rewards or other modest financial incentives to employees who get vaccinated.

Other Resources

U.S. Dairy Applauds USDA Work to Implement New Dairy Donation Program

The U.S. Department of Agriculture announced yesterday that it will soon implement the $400 million Dairy Donation Program established by Congress in December 2020. The department provided details on program participation to dairy processors and cooperatives to ensure donations of nutritious dairy products continue to make their way to Americans struggling with hunger while USDA finalizes the program.

The National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) today issued the following statements applauding USDA’s work:

“NMPF worked closely with Congress to enact the Dairy Donation Program (DDP) in the Consolidated Appropriations Act of 2021. This important program will help dairy farmers and the cooperatives they own to continue to do what they do best – feed people. Dairy stakeholders are eager to expand their partnership efforts with food banks and other distributors to provide a variety of nutritious dairy products to food insecure households who have faced uniquely difficult challenges throughout the COVID-19 pandemic, as hunger has risen significantly during the last year. We commend USDA for prioritizing implementation of the DDP and look forward to continue working with the Department, the food bank community and all involved to make the program a success,” said Jim Mulhern, president and CEO, NMPF.

“IDFA applauds USDA for advancing the Dairy Donation Program (DDP), which will facilitate the donation of fresh, nutritious dairy products to nonprofit organizations helping Americans currently struggling with hunger and nutrition issues. The U.S. dairy industry stepped up throughout the pandemic to partner with and aid non-profits, charities, and other organizations working to combat our nation’s hunger issues that were exacerbated by the coronavirus pandemic. This new program will help ensure persons in need continue to receive assistance and the unique combination of essential nutrients that only dairy products can provide. IDFA appreciates the department’s work to ensure dairy donations continue during this crucial time of need in our country. We will continue to work with the department to ensure the program works efficiently for dairy processors and cooperatives and the nonprofit organizations serving our nation’s food insecure families,” said Michael Dykes, D.V.M., president and CEO, IDFA.

NMPF Recognizes Employee Excellence Through New Roles

Five NMPF staff members are taking on enhanced responsibilities within the organization in recognition of their exemplary service to the dairy community.

Jaime Castaneda, Shawna Morris, Jamie Jonker, Claudia Larson, and Theresa Sweeney-Murphy each will be taking on greater responsibilities in their new roles. “These changes within our organization are a tribute to the hard work and leadership shown by our staff, who together have served dairy farmers and their cooperatives during a challenging time,” said Jim Mulhern, president and CEO of NMPF. “Each recognition is well-deserved; together they show just how strongly our staff serves to dairy’s needs. We are proud of the service they have given through the years and look forward to their continued service in the future.”

Jaime Castaneda, currently Senior Vice President for Policy Strategy and International Trade, will become Executive Vice President for Policy Development & Strategy, focusing on developing and implementing domestic and international policy initiatives. In this role, Castaneda will continue working closely with all of NMPF’s departments, with a particular focus on our policy strategy and execution. He also will continue to lead NMPF’s close partnership with the U.S. Dairy Export Council. Castaneda has been an ardent advocate for cooperatives, farmers and the industry as demonstrated by his impressive leadership on many key NMPF initiatives including dairy margin coverage, immigration reform, various trade negotiations, the creation of the Consortium for Common Food Names, and much more.

Shawna Morris will be promoted to Senior Vice President for Trade Policy, leading our trade policy advocacy efforts. In her current role as Vice President of Trade Policy, Morris has worked actively to advance and promote dairy trade policies that strongly benefit the U.S. dairy industry. She has played a critical role in our efforts working with U.S. and foreign governments, as well as with various international organizations. In her new role, she will continue to work closely with the U.S. Dairy Export Council, developing and promoting the international policy interests of U.S. dairy farmers and the wider U.S. dairy industry, domestically and around the world, as trade policy becomes an increasingly key factor in the economic well-being of dairy farmers.

Dr. Jamie Jonker will be promoted to Chief Science Officer, adding this to his title of Vice President, Sustainability & Scientific Affairs. Jonker’s promotion recognizes his key role at NMPF as lead scientific expert on the many issues affecting the dairy industry, from animal health to sustainability, to dairy farm biosecurity, to air and water quality, and much more. Jonker leads NMPF’s engagement domestic and international scientific groups such as the U.S. Animal Health Association (USAHA), the International Dairy Federation (IDF), the World Animal Health Organization (OIE), and Codex Alimentarius (Codex). Jonker serves on the IDF Board of Directors and last year was elected chair of the IDF Science Program Coordinating Committee.

Dr. Claudia Larson has been promoted to Senior Director, Government Relations. Since joining NMPF in 2019, Larson has undertaken advocacy and outreach work on a wide range of issues, leading the organization’s efforts in Congress to advocate for agricultural labor reform, where she played an active role in crafting and advancing the bipartisan Farm Workforce Modernization Act, which recently passed the House for a second time. Larson has also built support for NMPF’s child nutrition priorities and worked successfully with Congress to secure key improvements to the Small Business Administration’s COVID-19 relief programs to better assist dairy farmers and their cooperatives.

Theresa Sweeney-Murphy, currently Communications Manager, will become NMPF’s Communications Director, a role that reflects her rising level of responsibility within the organization as she innovates in member communications and expands the reach and relevance of NMPF’s Young Cooperators. Since joining NMPF in 2019, Sweeney-Murphy has led and implemented new initiatives that have improved our outreach to members and the broader community, spearheading NMPF’s special-topic member toolkits, enhancing its website and maintaining an active NMPF presence on social media. As leader of the YCs, Sweeney-Murphy has implemented regular webinars, among other offerings.

NMPF Statement on the End of the Farmers to Families Food Box Program

From NMPF President and CEO Jim Mulhern:

“While the Farmers to Families Food Box program was very helpful last year in responding quickly to both last year’s food supply chain disruptions and the dramatic rise in the number of Americans experiencing food insecurity, it also had its challenges. That’s why we are not surprised by the decision to move beyond the food box program, and in fact, expected it.

“The important focus now is addressing the twin needs of assisting food insecure families and aiding food supply chains like dairy that are still dealing with the effects of reduced foodservice demand. We support USDA’s efforts to use multiple programs, including TEFAP, Section 32, the new dairy donation program and other efforts to purchase dairy products, produce, meat and other products for distribution through food banks and other charitable organizations in the most efficient and effective ways. This will help farmers do what they do best: Serve people who benefit from the nutrition they provide.”

Environmental Stewardship Natural for Dairy, FARM’s Ayache Says

Earth Day later this month is a natural opportunity to highlight dairy’s commitment to environmental stewardship, Nicole Ayache, NMPF’s senior director for sustainability initiatives and leader of Environmental Stewardship and Workforce Development for the National Dairy FARM (Farmers Assuring Responsible Management) Program, said in an NMPF podcast released today.

“Caring for our natural resources is every day for a dairy farmer,” she says. “There’s a lot of inherent dedication to taking care of the environment, because it’s how you live your life, and where you live your life.”

Ayache discusses the structure of the FARM Program and how it has led achievements for the entire sector as dairy strives to achieve ambitious sustainability and emissions goals. 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.

 

Dairy — Tough to Live Without It

The misguided, fringe argument that dairy isn’t important to human diets would be laughable if it weren’t dangerous. Is it possible to live without dairy? It’s possible to live without many things – sunlight, for example — but that doesn’t make it healthy, wise or preferable.

While a dairy-free life is possible, it isn’t wise – unless, maybe, you’re severely allergic or perhaps work in sales for a nutritional supplement company. A few facts:

  • Scientific studies have linked dairy consumption to numerous health benefits, including reduced inflammation, improved digestive health and healthy immune systems.
  • According to last year’s final scientific advisory report of the Dietary Guidelines Advisory Committee, which sets the Dietary Guidelines for Americans every five years, 88 percent of Americans have insufficient dairy in their diets.
  • Dairy is especially important to pregnant women as a source of iodine — as well as for infants and toddlers, who beginning at six months can benefit from yogurt and cheese, and at 12 months gain nutrition from dairy milk.
  • The Advisory Committee also recommended dairy for consumption within all three healthy eating patterns featured in its report: the Healthy U.S. style eating pattern, the Healthy Vegetarian Style pattern and the Healthy-Mediterranean pattern.
  • More on eating patterns. Healthy eating patterns that include dairy foods are linked to reduced risk of chronic diseases, including cardiovascular disease and type 2 diabetes.
  • And what about dairy’s inclusion in the Healthy Vegetarian pattern? Why is it vegetarian, and not vegan? Because when you get rid of dairy, you need supplements to make up for the lost nutrition. Dairy foods are often recommended as part of plant-based diets because they contain high-quality proteins and under-consumed nutrients like calcium, vitamins D and B12.
  • Those aren’t the only under-consumed nutrients milk provides. Others include potassium, phosphorus, magnesium, and vitamin A.
  • In total, dairy packs in 13 essential nutrients. For a reference list, see the infographic below, suitable for printing and framing.
  • Dairy isn’t only essential – it’s also affordable. According to recent retail data, a gallon of conventional milk cost 56 percent less than a plant-based beverage, while yogurt was 59 percent less expensive than its imitators – which are nutritionally inferior anyway.
  • Speaking of plant-based beverages. Their attempts to trick consumers into believing they’re nutritional equivalents to dairy has tragic consequences, as detailed by the American Academy of Pediatrics, members of whom have observed child malnourishment caused by reliance on plant-based imitators by parents who mistakenly thought, because of a lack of labeling integrity, that they were getting dairy’s unique nutrient package. The Dietary Guidelines for Americans also cautions against plant-based substitution, noting that most plant-based beverages lack nutritional equivalence.
  • Following on that: Simplistic views of plant- versus animal-sourced foods may have unintended consequences for human health. Removing animal-sourced products from diets would force, much of the world’s population to rely on supplements to make up for nutritional shortfalls.
  • And that all leads into a final point: Dairy’s sustainability. By providing nutrition efficiently through environmentally sustainable practices, dairy is a part of the long-term solution to planet health as well as human health. Skeptics can look to, among many other things, the sector’s Net Zero Initiative and its sustainability goals, along with other literature, such as modeling published in the Journal of Dairy Science that assessed the impacts of completely removing dairy cows from the U.S. and removing dairy from all American diets. The results showed a lack of presumed environmental benefits, but a notable threat to human health.

Dairy’s unique nutrient package is hard to replace. It’s one of the most affordable and accessible nutrient sources, including many that are critically needed and under-consumed in human diets. You can live without it – but why on Earth would you want to? Maybe because you’re into supplement pills, or maybe you just like living a less-nutritious lifestyle, or maybe you’re just ill-informed.  We can’t help you with the first two, but as always, we’re happy to educate. Stay safe, and stay nourished.

Infographic of 13 ways milk can help your body